The Indian economy has broadly caught up with pre-pandemic growth trends, averting any permanent losses in demand and output, and is likely to grow in the range of 6.5% to 7% this year with risks evenly balanced, as per the Economic Survey for 2023-24 tabled today in Parliament by Finance Minister Nirmala Sitharaman ahead of the Union budget on Tuesday, which acknowledged challenges like inequality and job creation as key priorities.
Arguing that structural reforms such as the GST and the Insolvency and Bankruptcy Code have matured and are delivering envisaged results, the Survey said the economy can grow at over 7% on a sustained basis in the medium term by building on the past decade’s reforms, but this would need a “tripartite compact” between the Centre, States and the private sector.
In the medium term, the Indian economy can grow at a rate of 7% plus on a sustained basis if we build on the structural reforms undertaken over the last decade. This requires a tripartite compact between the Union Government, State Governments and the private sector.
Identifying job and skill creation a key focus area for policy makers in coming years, the Survey stressed that the “Amrit Kaal” growth strategy must focus on six areas, including bridging the education-employment gap. In the short to medium term, it also called for action on tackling inequality and improving our young population’s quality of health.
While global trends like geo-economic fragmentation, a push for self-reliance and climate change would influence medium-term hopes, the Survey has urged the Government to focus on ‘bottom-up reform’ and improving governance “plumbing” to ensure past reforms deliver sustainable, balanced and inclusive growth.
In the immediate term, while improved balance sheets are expected to help India’s private sector pursue strong investment demand, the Survey cautioned that after good growth in the last three years, private capital formation may turn slightly more cautious because of fears of cheaper imports from countries that have excess capacity, in an indirect reference to China.
“Deftly dealing with the Chinese conundrum” and deepening the corporate bond market are other short-to-medium term deliverables that the government should pursue, the Survey has stressed, adding that the Amrit Kaal agenda must be predicated on growing India’s micro, small and medium enterprises and boosting private investment. Tapping the full potential of agriculture by removing policy impediments. securing green transition financing and building state capacity to sustain and accelerate India’s progress, have been emphasised as other crucial goals.
The Survey acknowledges that the Gross Value Added by the Services sector is yet to reach levels projected by the pre-pandemic trend. “The granular data available until 2022-23 reveals that this is on account of the trade, hotel, road and air transport sectors. These sectors, taken together, contributed about 28.5% to total real GVA in FY23 and were only one per cent above their levels in 2019-20,” it said.
Kanwar Yatra row: Supreme Court stays U.P., Uttarakhand directives to display names of food stall owners and staff en route
The Supreme Court on July 22 prohibited the enforcement of directives issued by the Uttar Pradesh and Uttarakhand governments requiring food stalls en route the Kanwar Yatra to prominently exhibit the names and other identity details of their owners and employees.
A Bench of Justices Hrishikesh Roy and S.V.N. Bhatti said stalls, hawkers, vegetable sellers, dhaba owners, etc., on the Kanwariya route were free to display the kind of food they sold but should not be compelled by the police to display the names or, for that matter, the caste or religious identity of their owners or employees.
The court said it was permissible for authorities to ensure that Kanwariyas were served vegetarian food, conforming to standards of hygiene and according to their dietary preferences. However, the police could not usurp the powers of municipal authorities through orders that restrict freedoms without the support of law.
The court acknowledged that the impact of the directives was spread across multiple States, requiring it to judicially intervene immediately. The Bench issued notice to States through which the yatra traverses, including Uttar Pradesh, Uttarakhand, Delhi and Madhya Pradesh. It said States not impleaded, but through which the yatra would pass, shall be issued suo motu notice. The court listed the case on Friday.
The order came on separate petitions filed by the Association for Protection of Civil Rights, represented by senior advocate C.U. Singh and others, including Trinamool Congress MP Mahua Moitra, academic Apoorvanand Jha, and columnist Aakar Patel.
The petitioners argued that the directives affected the secular character of the nation, infringed the secular values enshrined in the Preamble to the Constitution, and violated fundamental rights of equality, caste non-discrimination, and dignity of life.
The directives had led to the forcible retrenchment of employees working in the shops en route the Kanwar Yatra, amounting to the violation of the fundamental right to earn a livelihood or do business or trade. “It would require very large boards to display the names, caste and other identity details of the owners and all the employees. This is sheer exclusion by identity,” senior advocate A.M. Singhvi submitted.
Those who ignored the directives either had to pay hefty fines or face legal proceedings. The directives were compulsory in nature though couched in language suggesting shop owners could take a voluntary decision.
“There is a Catch-22 situation here... If I don’t put my name, I will be fined. If I put my name, I may be discriminated against owing to my religious identity or caste,” Singhvi said.
Senior advocate Huzeifa Ahmadi, for Jha and Patel, said the directives formalised a “form of untouchability”. “They created an apprehension in the minds of employees. They are made to feel that they are unsafe unless they display their names,” Ahmadi argued.
‘There is a very serious problem with our examination system’: Rahul Gandhi questions govt on NEET paper leak in Lok Sabha
Leader of Opposition in the Lok Sabha, Rahul Gandhi, kicked off the first day of the monsoon session of the Parliament on July 22, questioning what the government has done to address the issue of recent entrance examination paper leaks.
Stating that it’s obvious to the whole country that “there is a very serious problem with our examination system,” Gandhi alleged that the Minister of Education Dharmendra Pradhan does not understand the fundamentals of what is going on
“This is not just the question of the NEET but major examinations,” he said adding that “the Minister has blamed everybody except himself.” While the National Eligibility cum Entrance Test (Undergraduate), or NEET–UG is under the scanner over several irregularities, including alleged paper leak, the UGC-NET was cancelled as the Education Ministry received inputs that the integrity of the exam was compromised. Both matters are being probed by the Central Bureau of Investigation (CBI).
Two other exams — CSIR-UGC NET and NEET-PG — were cancelled as a pre-emptive step. “The issue is that there are millions of students in this country who are extremely concerned about what is going on and who are convinced that the Indian examination system is a fraud,” Gandhi said while addressing the lower house of the Parliament.
“Millions of people believe that if you’re rich, if you have money, you can buy the Indian examination system, and this is the same feeling we as the Opposition have. This is why we are asking some very simple questions to the Hon. Minister.: As this is a systemic issue, what exactly are you doing to fix the issue at a systemic level?” he added.
The Supreme Court is currently hearing a batch of petitions alleging irregularities and malpractices in the conduct of the medical entrance exam NEET-UG 2024, including paper leak.
A visibly peeved Pradhan said it was unfortunate that the member described the examination system as rubbish. Stressing that there should be constructive discussions on the issue, Speaker of the House Om Birla said if questions are raised about all the examinations in the country, then that will have an impact on the Indian education system and the perception about it around the world.
“We should look at developing a better system... it is not right to raise questions about all examinations,” he said. After the Speaker concluded his remarks, Gandhi wanted to speak but was disallowed.
Gandhi and almost the entire Opposition members, including from TMC and DMK, walked out of the House. Congress Deputy Leader in the House Gaurav Gogoi raised slogans demanding the resignation of Pradhan.
Kamala Harris: ‘honoured by Biden’s endorsement, aim to defeat Trump’
U.S. Vice President Kamala Harris, endorsed by Joe Biden to be a new Democratic presidential nominee, has said that she intends to “earn and win” the nomination of the party and “do everything in my power” to unite the nation to defeat her Republican rival Donald Trump in November.
Harris, who received Biden’s support to become the next Democratic presidential nominee after he quit the race for the White House, is poised to become the first Black woman and first Asian American to lead the ticket of a major American political party.
Harris, 59, said she was “honoured” to receive Biden’s endorsement and intends to “earn and win” the nomination of the Democratic Party. “I am honored to have the President’s endorsement and my intention is to earn and win this nomination,” she said in a statement.
The historic endorsement came after Biden, 81, announced Sunday that he is dropping out of the race following weeks of disarray within the Democratic Party. Biden’s disastrous first presidential debate with his Republican rival and former president Trump called into question his ability to win a second term and govern for another four years.
Despite Biden’s backing, it remains unclear whether Harris will become the nominee, or what process the Democratic Party would take to select an alternative. Democratic National Committee chairman Jaime Harrison said in a statement that in the coming days the party will “undertake a transparent and orderly process to move forward as a united Democratic Party with a candidate who can defeat Donald Trump in November.”
Though Biden’s endorsement almost seals her position as the presidential nominee of her party, Harris still needs to get elected by the party’s delegates during the Democratic National Convention in Chicago next month.
Biden has won 3,896 delegates as against 1,976 required to win the party’s presidential nomination. In a move that would give her access to the campaign funds, the Biden-Harris campaign amended filings with the Federal Election Commission to rename its principal committee and declare Harris a candidate for president.
“I am honoured to have the President’s endorsement and my intention is to earn and win this nomination,” said Harris, who has been serving as US’s first female, first Black and first South Asian vice president since 2021.
Harris has already secured the endorsement of former president Bill Clinton, thus making it a bit easier for her to win the delegate battle during the Democratic National Convention beginning on August 19. “On behalf of the American people, I thank Joe Biden for his extraordinary leadership as President of the United States and for his decades of service to our country,” she said.
Opposition questions Lok Sabha discussion on Olympics preparations four days before event, brings up treatment of women wrestlers
A discussion on India’s preparedness for the Paris Olympics held in the Lok Sabha on July 22 set off questions from the Opposition not just on the timing of the debate (the event is to begin this Friday) but also on the controversies such as harassment allegations levelled by women wrestlers against former BJP MP Brij Bhushan Sharan Singh.
During the discussion, Congress member Deepender Hooda brought up the wrestlers’s case. Though he did not name Singh, Hooda said a situation should not arise where players have to fight their own government and the system.
Parliamentary Affairs Minister Kiren Rijiju, who earlier held charge of the Sports Ministry, intervened to say that members should avoid raising “[sports] federation fights” in the House. He said there is bound to be politics in sports federations and such issues should not be raised in Parliament. Rijiju said no other government had done what Prime Minister Narendra Modi did for sports.
When Speaker Om Birla asked the House to take up the discussion on Olympics, RSP’s N.K. Premchandran questioned the timing and asked what suggestions could the House offer when the Indian team has already left for the event beginning July 26.
He accused the government of taking the House for granted, noting that supplementary agenda is issued to bring important legislative items. Initiating the discussion, the BJP’s Sanjay Jaiswal hit back and said the Opposition found the discussion on sports irrelevant. He said the government invested over ₹400 crore for 16 disciplines and made all-out efforts to ensure that athletes competing in the Olympics got the best training and facilities.
Participating in the discussion, Hooda said that at this stage the House cannot offer suggestions to the squad but only offer its best wishes. He used the opportunity to hit out at the Haryana government for withdrawing facilities for medal winning athletes.
Speaker Om Birla interjected and said Hooda should remember that he was speaking in the Lok Sabha and not the Haryana Assembly. Referring to the allegations of sexual harassment, Hooda said Ministers go to airport to get themselves clicked with athletes when they return with medals but ignore their pleas when they sit on dharna.
Congress leader Karti Chidambaram urged the government not to pitch for hosting the Olympics, saying it will be a “drain”. “Please do not host the Olympics. Greece and Brazil conducted the Olympics and faced severe hardships after conducting [it]. It is a great drain,” he said. India has evinced interest to bid for the 2036 Olympics.
He suggested that the government broad-base sports participation and access to sports facilities. “Make sports a compulsory subject in board exams and make sure that participation in sports is compulsory. Until and unless sports is compulsory in this educational system, which is so examination-oriented, it is very difficult to broad-base sports,” he added.
Former Test cricketer and Trinamool Congress MP Kirti Azad raised the issue of poor facilities for sports other than cricket, while his party colleague and fellow cricketer Yusuf Pathan nodded in agreement.
In Brief:
Acknowledging mental health as a principally impactful driver of individual and national development, the Economic Survey 2023-24 tabled by Union Finance Minister Nirmala Sitharaman in Parliament on Monday extensively highlights this health issue, and its significance and implications on policy recommendations for the first time. The Survey mentions that at an aggregate economic level, mental health disorders are associated with significant productivity losses due to absenteeism, decreased productivity, disability, increased healthcare costs, and so on. There is also evidence of poverty exacerbating the risk of mental health due to stressful living conditions, financial instability, and lack of opportunities for upward mobility, which contribute to heightened psychological distress, the Survey adds.
Evening Wrap will return tomorrow.
