The Economic Survey 2023-24 observes that the policy reforms undertaken by the government over the past decade have laid the foundation for sustained moderate to high growth in the coming years and stressed the need for government’s focus on bottom-up reforms and the strengthening of governance.
“To sustain growth for nearly a generation up to 2047 or more and to ensure that it makes people’s lives better and fulfills their aspirations, bottom-up reforms are necessary,” it noted.
The survey, tabled in Parliament by Finance Minister Nirmala Sitharaman on Monday, underscores the need for effective implementation of the big-ticket reforms introduced over the last decade.
The survey said these reforms have focused on restoring the health of the economy, elevating potential growth by relieving supply-side constraints, and strengthening governance capabilities.
“In the last decade (2014-2024), the Government of India has pursued big-ticketreforms focused on restoring the health of the economy, elevating the potential growthby relieving supply-side constraints and strengthening its capabilities, capable of fulfillingthe growth aspirations of the people in the present and the Amrit Kaal,” said the survey.
The survey stressed that the next stage is to ensure these reforms are fully implemented to deliver sustainable and inclusive growth.
“Big-ticket reforms have been initiated and done. The government’s focus must turn to bottom-up reform and the strengthening of the plumbing of governance,” it noted.
“This involves engaging with state governments, the private sector, and civil society to ensure that the reforms translate into tangible benefits for the economy,” the survey added.
This approach is seen as essential for addressing the challenges of job creation, productivity improvement, and economic growth.
Meanwhile, the survey underscored the pressing need for comprehensive reforms in India’s agricultural sector, citing structural issues that could impede the country’s overall economic growth trajectory.
The survey identifies several key challenges facing the agriculture sector, including the need to sustain growth while managing food price inflation, improving price discovery mechanisms, and addressing land fragmentation.
“Despite its centrality in India’s growth trajectory, the agriculture sector continues to face structural issues that have implications for India’s economic growth,” the survey said.
According to the document, policymakers must strike a delicate balance between incentivizing farmers to increase production and keeping food prices within acceptable limits. This dual objective requires careful policy interventions, the survey noted.
Other critical issues highlighted in the report, prepared by Chief Economic Advisor V Anantha Nageswaran, include the need to reduce disguised unemployment, increase crop diversification, and enhance overall efficiency in the sector.
To address these challenges, the survey recommends a multi-pronged approach.
Key suggestions include upgradation of agricultural technology, the application of modern skills in farm practices, enhancing agricultural marketing avenues, price stabilisation, the adoption of innovation in farming, lowering wastages in the use of fertiliser, water, and other inputs, and improving the agriculture-industry linkages.
The survey emphasises the importance of technological interventions and skill development in transforming the agricultural landscape. It also stresses the need for sustainable practices to ensure long-term viability of the sector.
It also noted that it is both urgent and important for India to re-imagine the contours of its primary sector for the next generation.
“India may have to abandon the old development playbook of moving on from agriculture to industry and services as economic development matures,” the survey added.
With inputs from agencies
Link to article –
Strengthen plumbing of governance for last decade’s reforms to show results: Economic Survey 2023-24
