The Economic survey 2019-20, tabled by Union Minister for Finance And Corporate Affairs, Nirmala Sitharaman in the Parliament today, makes an attempt to craft a framework of policies that can foster wealth creation in India, which in turn, would set the economy firmly on an upward growth trajectory. The Survey revolves around the theme of enabling markets, promoting 'pro-business' policies and strengthening 'trust' in the economy. It maintains a balanced optimistic stance and makes an attempt to put to rest any skepticism about the benefits accruing from a market economy, both in economic thinking and policy-making.
The Survey taps into ancient texts like Kautilys's Arthashastra, Thiruvalluvar's Thirukural and treatise on modern economics like Adam Smith's An Inquiry into the Nature and Causes of the Wealth of Nations to emphasize upon the importance of 'Ethical Wealth Creation' as the root of economic activity and key to India becoming a $ 5 trillion economy by 2025.
Through these ancient texts, the Survey documents that ideas of wealth creation are rooted in India's old and rich tradition. India has been a dominant economic power globally for more than three-fourths of the known economic history. Such dominance manifests by design, not be happenstance, the Survey notes.
Elaborating on India's historical dominance on the global economy, the Survey lays stress on the importance of bringing an openness in the market that leads to wealth creation, in turn, boosting the economic activity through increased investment. According to the Survey, this 'Invisible Hand of the Market' supported by the hand of 'Trust' has led to such dominance in the past.
The Survey provides contemporary evidence of these two factors coming into play when in the post economic liberalization era, because of the induced creative destruction, Indian economy returned to high growth trajectory. The Survey's conceptualization of wealth creation, thus presents a combination of ancient Indian tradition with contemporary evidence and suggests use of FinTech for increasing efficiency of our Public Sector Banks.
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