Economic Survey 2020 says India has been a dominant economic power ‘by design’
The survey also drew the connection between the invisible hand of the market, the hand of the trust and how it can contribute to India's target of becoming a $5 trillion economy.
January 31, 2020 / 02:58 PM IST
The Economic Survey 2020 stated that India had been the dominant economic power for over three-fourths of known economic history. Such economic strength is created "by design" rather than by chance, the report said.
Source: Economic Survey 2019-20
The survey also drew the connection between the invisible hand of the market, the hand of the trust and how it can contribute to India's target of becoming a $5-trillion economy.
"In a market economy too, there is need for state to ensure a moral hand to support the invisible hand," the survey emphasised.
The survey traced the country's history, right from the ancient texts such as Arthashastra and Thirukural to contemporary times and the problem of bad loans.
Pro-business practices can help promote the invisible hand of the market, the report added.
The survey introduced the concept of “trust as a public good that gets enhanced with greater use”.
The Survey suggests that policies must empower transparency and effective enforcement using data and technology to enhance this public good.
The global financial crisis in 2009 and its consequences created a trust deficit in the economy. Economics literature after the financial crisis has emphasised the need to rebuild the trust in the economy.
"Following the Global Financial Crisis, an emerging branch of the economics literature now recognises the need for the hand of trust to complement the invisible hand," the report said.