Economic Survey 2020-21: A Brief Analysis Amaresh Patel LAW CRITIQUE Sat, Jan 30, 2021, at ,04:47 PM Authored by: Krishnamurthy Subramanian (Chief Economic Adviser)What is its main objective?The Survey expects strong recovery from the knocks of the pandemic as vaccination accelerates and economic activity increases.- 7.7% Contraction- 11% read GDP growth for FY 2021-22Following are the objective of the Economic Survey 2020-21· Expects a big boost for public spending· The government should not worry about debt or be fiscally conservative at a time of global slowdown.· Advocates a so-called counter-cyclical fiscal policy (jargon for reducing spending and increasing taxes in good times and increasing spending and reducing taxes in bad times) Aim in Financial Sector· Calls for asset quality review of the banking sector· Re-structuring of under-capitalized banksHealth· Calls for sharp increase in healthcare spending and a regulator for the sector· Suggests to take cue from the banking and finance industry that mitigates the information gap through credit rating agencies and credit bureausAviation· Expects air passenger travel and aircraft movements to reach pre-COVID level in early 2021Gig Economy· Highlighted a rising demand for gig economy jobs, especially after the COVID-19 induced lockdown· Gig staffers will now be entitled to unorganized worker benefits under the Code on Social Security 2020PM-JAY· High frequency but low cost care like dialysis accounts for the maximum number of medical claims under PM-JAY· Considering PM-JAY is popular for dialysis, the National Dialysis Mission to be merged with itTourism· Vaccination to help revive the tourism sector after a sharp fall in 2020· The sector supports 13% of total employment in IndiaFDI in services· The services sector was the largest recipient of FDI in India and witnessed a strong growth during April-September 2020· During April-September 2020 US 23.61$ gross FDI equity inflows into the service sector· 34% YoY· 4/5 of the total gross FDI equity inflows into IndiaInnovation· India has broken into the top 50 in world innovation rankings in 2020, but its patents are woefully low· Private sector needs to take some burden from the Government to push genuine innovationIT Industry· Policy reform such as relaxation of Other Service Provider (OSP) license, which eased work from home norms for the IT sector, will expand the access to talents in smaller cities and towns in India. This will in turn spur innovation and increase job creation.Banking· The Survey called for adequate capitalization of public sector banks.· If capital is not provided, enders may resort to risk-shifting, in turn, impacting the real economic recovery.Startups· Over 40 funded startups are working in India in the space segment· With technology playing a big role and the recent reforms allowing private participation announced by the government the number is likely to increase in the coming years.COVID and Economy· CEA K.V. Subramanian will launch Economic Survey App which will be dedicated to COVID warriors.· India’s policy response also derived from extensive research on epidemiology, especially that looked at Spanish Flu of 1918. One of the key insights was that pandemic spreads faster in higher and denser population and intensity of lockdown matters most at the beginning of the pandemic · As per the survey estimates, India avoided about 37 lakh cases and about 1 lakh deaths through the policies it adopted.