As a prescription to achieving its long-term potential growth rate of around 8-10 per cent, the Economic Survey pitches for the adoption of a three-pronged strategy — promoting competition across sectors and investing in health and education and agriculture.
“First, India has moved away from being reflexively anti-markets and uncritically pro-state to being pro-entrepreneurship and skeptical about the state. But being pro-industry must evolve into being genuinely pro-competition. Similarly, skepticism about the state must translate into making it leaner,” the survey noted.
It has stressed on the need for creating a more captive environment by addressing the exit problem affecting the Indian economy, whereby loss-making ventures can exit from their businesses.
The survey makes a strong pitch for major investments in health and education of people to exploit the country’s demographic dividend to an optimal extent. It also says that India cannot afford to neglect its agriculture sector if it aspires to ramp up its growth trajectory.
Alongside better MSP, irrigation and national market facilities to boost crop yields, the survey has pitched for the use of hybrid and genetically modified (GM) seeds for bringing in major transformation in the sector. It said safety concerns related to hybrid and GM seeds need to be debated and tested so that their introduction is facilitated in the next six months. It also said the regulatory process needs to be evolved to address safety concerns of GM crops.