Indian Economy and Chief Economic Advisor: Ball swing concept and relation with Indian economy-economic survey observations-Oxfam survey-V Shaped Economic Growth

 It Doesn't Matter Which Alphabet is Going to Resemble the India's Economic Revival, What Matter is the Expeditious Revival

'The Hindu', reported-"Like in Cricket, even in the Economy timing matters. When the ball is swinging around a lot, there's a lot of uncertainty, you need to play carefully and focus on survival and the essential items....you play like(Cheteshwar) Pujara, once the the swing is gone, you bat like pant, which is what the Indian Economy and policy makers are now focused on", the CEA Mr. Subramanian said. In this Article, I am going to criticize the statements of Chief Economic Advisor on his recent correlation of Indian Economy with Cricket....

First of all let me tell you, what might be the reasons, he tried to relate the Cricket or Cheteshwar or Pant with the Indian Economy. He might think that Cricket is the most famous and watched sports in India, to let every one understand his feelings or competence, he tried to relate the future path of Indian Economic Revival. To support my criticism, let me give an another example, while presenting 2020 Economic Survey, he recommended Rationalization of Subsidies to create fiscal headroom, in food subsidy Govt distribute food grains at below market prices to keep the costs low. In 2019, it had budgeted nearly 1.84 lakh crore for food subsidies, which was nearly amount to 50% of total subsidy given by Govt. In my opinion that recommendation was irrelevant, later, Central Govt also did not pay the heed to that recommendation. Now let's come back to present scenario, whatever his Ball swinging concept and relation with revival of Indian Economy, it seems like he is of the opinion that Indian Economy which broadly comprises Agriculture, Service sector, healthcare, Education etc and eight core sector viz, Electricity, Steel, Refinery products, Crude oil, Coal, Cement, Natural Gas, Fertilizers are related to the swinging theory of ball. I think this is not the correct way of relating things which(economy) are playing a important part in the lives of millions of Indians. Although, he indicated that it was time to switch Fiscal gears to a more aggressive approach and also indicated that the Union Budget for 2021-22 could be cautiously Expansionary. According to Economic survey this year, India must keep its focus on Economic growth , as given India's current stage of development, redistribution of wealth is not feasible without growing the overall pie.

 To come out of challenges created by the Pandemic, many economic experts believe that Expansionary Policies may help. Policy makers should focus on generating employment which should not only belongs to MGNREGA, Expeditious Vaccination or create herd immunity and creating health infrastructure, since high out-of-pocket expenses for the health can lead to poverty, Revive Education system with utmost priority, formulating policies to remove economic inequalities as reported by Oxfam(a non-profit organization), according to the survey the Country's richest man MUKESH AMBANI earned 90 crore an hour during pandemic when around 24% of the people in the Country were earning less than 3,000 a month during Lock down. There are dying need to revive core sector which have contracted by 10% in the April to December period, with Fertilizers the only sector to record positive growth over the year, of a modest 3%. 

V-shaped Growth:

Economic Growth Pattern

Earlier, the Govt has said V-shape growth is vaccine led-growth, Let's understand it by analyzing the growth pattern in graph. India's real GDP is expected to contract by 7.7% in Fiscal Year 2021 compared to the 4.2% growth in Fiscal Year(FY) 2020, due to the COVID-19 related lock down. The Economy is estimated to grow by 11% in FY22, which seems like taking a V-shaped recovery.