Economic Survey 2022-23: Key Highlights

In News

• Recently, the Union Minister for Finance tabled the Economic Survey 2022-23 highlighting the outlook for India’s growth, inflation and unemployment in the coming years.

About

• The Economic Survey of India suggests that the economy has recovered from the Covid disruption and is poised for sustained robust growth in the rest of the decade.
• The Survey attributes the recovery to wide-ranging structural and governance reforms that have strengthened the economy’s fundamentals and increased its efficiency.
• The Indian economy is expected to grow at its potential similar to the growth experience after 2003, but the growth outlook is unlikely to be much above 6%.
• The growth rate in India has become increasingly capital-intensive, leading to a lower labor force participation rate and widespread joblessness, which acts as a drag on economic growth.
• India’s population is growing with a large youth bulge, high levels of poverty, and malnourished children, which requires faster growth to satisfy the growing population
• The survey cautions that a growth rate of 6% may not create enough jobs to meet the demand from the growing population.

What is the Economic Survey?The Economic Survey has its roots in the British colonial era, with the first survey being presented in 1950-51. The Economic Survey of India is an annual document presented to the Parliament by the Ministry of Finance. It reviews the performance of the Indian economy in the previous financial year and presents the outlook for the next year.It is prepared by the Economic Division of the Department of Economic Affairs (DEA) of the Ministry of Finance and is not governed by any specific act or legislation.The comments or policy solutions contained in the Survey are not binding on the government.

Major Findings of the Survey

• State of the Economy 2022-23:
  • The Indian economy is staging a broad based recovery across sectors after recovering from pandemic-induced contraction, Russian-Ukraine conflict and inflation.
  • India’s GDP growth is expected to remain robust and in the range of 6-6.8 % in Financial Year 2023-24,  but detailed some downside risks, such as low demand for exports, sustained monetary tightening, etc.
• Inflation:
  • The RBI projects headline inflation at 6.8% in FY23, outside its comfort zone of 2% to 6%, but the Survey is optimistic about the inflation levels and trajectory.
  • Steps taken by government to control inflation included:
    • Phase wise reduction in export duty of petrol and diesel
    • Import duty on major inputs were brought to zero
    • Prohibition on the export of wheat products under HS Code 1101 and 
    • Imposition of export duty on rice.
• External Sector:
  • Merchandise exports were US$ 332.8 billion for April-December 2022.
  • India diversified its markets and increased its exports to Brazil, South Africa and Saudi Arabia.
  • To increase its market size and ensure better penetration, in 2022, Comprehensive Economic Partnership Agreement (CEPA) with UAE.
  • The Economic Cooperation and Trade Agreement (ECTA) with Australia came into force.
  • India is the largest recipient of remittances in the world receiving US$ 100 bn in 2022. 
  • Remittances are the second largest major source of external financing after service export.
• Agriculture & Food Management:
  • Private investment in agriculture has increased to 9.3% in 2020-21.
  • Free foodgrains to about 81.4 crore beneficiaries is being provided under the National Food Security Act for one year from January 1, 2023.
• Services:
  • The services sector is expected to grow at 9.1% in FY23, as against 8.4% (YoY) in FY22.
  • India was among the top ten services exporting countries in 2021, with its share in world commercial services exports increasing from 3 per cent in 2015 to 4 per cent in 2021.
• Digital Infrastructure:
  • Unified Payment Interface (UPI)-based transactions grew in value (121 per cent) and volume (115 per cent) terms, between 2019-22, paving the way for its international adoption.
  • More than 98 per cent of the total telephone subscribers are connected wirelessly.
  • The overall tele-density in India stood at 84.8 per cent in March 2022.
• Physical Infrastructure:
  • National Logistics Policy envisions developing an integrated, cost-efficient, resilient logistics ecosystem in the country for accelerated and inclusive growth.
  • Inland Vessels Act 2021 replaced the 100-year-old Act to ensure hassle free movement of Vessels promoting Inland Water Transport.
• Climate Change and Environment:
  • India declared the Net Zero Pledge to achieve net zero emissions goal by 2070.
  • India achieved its target of 40 per cent installed electric capacity from non-fossil fuels ahead of 2030.
  • A mass movement LIFE (Lifestyle for Environment) was launched.
  • Sovereign Green Bond Framework (SGrBs) was issued in November 2022.
  • National Green Hydrogen Mission launched to enable India to be energy independent by 2047.
• Unemployment:
  • Employment levels have risen in the current financial year, with job creation appearing to move into a higher orbit. The urban unemployment rate for people aged 15 years and above declined from 9.8% to 7.2%.
• Implications for India’s economy:
  • The Survey suggests that India’s economy has recovered from the Covid disruption and is poised for sustained robust growth which will be higher than for almost all major economies.
• Reference to 2003:
  • The Survey argues that the situation in 2023 is similar to 2003, when the Indian economy was poised for growth.
• Likelihood:
  • India’s potential growth rate is unlikely to rise much above 6% in the next few years.

Importance of Economic Survey

• Provides an overview of the current state of the economy: The Survey gives an overview of the performance of the Indian economy in the current financial year, including GDP growth rate, inflation, the balance of payments, and other key macroeconomic indicators.
• Identifies key economic challenges: The Survey identifies key challenges facing the Indian economy and provides insights into how they can be addressed which is crucial for policymakers, who use this information to formulate their economic policies.
• Offers policy recommendations: The Survey provides policy recommendations to the government on how to address economic challenges and promote economic growth and development. This is important for businesses and investors, who can use these recommendations to plan their investments and strategies.
• Guides future economic policies: It provides a roadmap for future economic policies, including a projection of GDP growth, inflation, and other key macroeconomic indicators. 
• Supports data-driven decision making: The Survey provides a comprehensive and in-depth analysis of the Indian economy, including data and evidence-based insights.

Limitations of Economic survey

• Data Availability: The lack of reliable data sources and the delay in the release of official data can pose challenges for the preparation of the survey.
• Forecasting: Predicting the future state of the economy can be challenging, especially in an environment of economic volatility and uncertainty.
• Representation of Diverse Sectors: The Indian economy is diverse and multi-faceted, and the survey must be comprehensive enough to represent the varying sectors and their interlinkages.
• Balancing Policy Recommendations with Objectivity: The Economic Survey is expected to be both policy-oriented and objective in its analysis which is challenging as it requires a delicate balance between providing policy recommendations and retaining its independence.
• Addressing Political Pressures: The Economic Survey is a political document, and it must be prepared in such a way that it aligns with the government’s political objectives while also remaining credible and objective.
• Managing Expectations: The Survey is widely read and analyzed, and managing public expectations about its contents can be challenging. 

Theory of Alienation

In News

• The idea of ‘alienation’ by Karl Marx is one of the most widely discussed concepts in social, political and economic theory.

Meaning of Alienation 

• About:
  • Alienation refers to a person’s “withdrawal or separation from an object or position of former attachment” or, in the case of property, “a conveyance of property to another.” 
• Marx’s idea:
  • In Marxist understanding, alienation refers to a feeling of separation from one’s own labour and the loss of power over it.

Marx’s forms of alienation

• Karl Marx discussed four forms of alienation:
  • Alienation from the product of labour:
    • In modern times, where manufacturing is highly specialised and segmented, workers are often not even aware of what they are producing, since the production process is highly segmented.
    • As the product is immediately possessed and controlled by someone else, it assumes a power of its own. 
  • Alienation from the process of labour:
    • Workers in factories reportedly work long hours, in poor conditions and for low wages. They perform repetitive tasks.
    • The more the workers produce, the more productive power there is for someone else to own and control. 
  • Alienation from humanity:
    • The worker becomes an ever-cheaper commodity the more goods he creates. He does not develop freely his mental and physical energies but is physically exhausted and mentally debased. 
    • The worker, therefore, feels himself at home only during his leisure time, whereas at work he feels homeless. His work is not voluntary but imposed, forced labour.
  • Alienation from society:
    • Workers also slowly start becoming competitive as they do not want to lose their jobs. The job is so arduous that they live away from their families as they are not able to find other, better-paying jobs.
• In this manner, the process of alienation of workers from the product, the process, from themselves and their abilities, and from others is complete.

Analysis of the theory:

• Interpretations:
  • Other writers have interpreted alienation in a more social-psychological sense to mean powerlessness, meaninglessness, normlessness, self-estrangement and social isolation. 
  • Applicability in the political sense:
    • Alienation is also used sometimes in a political sense with alienation of the electorate being the reason for disaffection with political parties or policies.
• Possible causes:
  • There may be various causes for these forms of alienation such as bureaucracy and organisational structures, lack of ownership, social disorganisation or poor management, or technology. 
  • Most of these approaches refer to alienation as a loss of control, the lack of meaning, and the difficulty of self-expression in work.
  • Some authors consider assembly-line workers to have the greatest sense of alienation
• Exceptions:
  • workers such as physicians, teachers, or other professionals feeling least alienated. 
  • According to a few, alienation is likely to be lowest in organisational setting where members have control, meaning, and opportunities for self-fulfilment in their roles.
• Solution:
  • So, the solution to this form of alienation is to make work more meaningful.

Criticisms

• Impracticability of communism: 
  • Thinkers have said that Marx’s explanation was not worked out in terms of its implications and how it might be eliminated. 
  • The solution of communism given by Marx has not occurred, and does not seem a likely prospect in the near future.
• Changing times & availability of labour protections:
  • While Marx’s approach to the study of alienation helps us understand the labour market as well as its living and working conditions, all of these have changed considerably since his time.
    • Today, there are labour laws in place everywhere.
• Diversity at play:
  • As there is greater division of labour, the effects of labour are faced differently by different segments and is dependent on the countries they live in.
• Focus on class and not Social relations:
  • A common criticism of Marxism is that it focuses solely on class, ignoring other forms of segregation.
    • Marx saw the roots of alienation only in the exchange of labour and private property. 
    • But similar feelings of alienation may be related to ethnicity or race (say, if Black people are not hired), region (people from Western Canada often say that they have been excluded from mainstream politics), caste (upper castes are reportedly preferred in some roles in private companies) and gender (women have often reported that they have not received promotions and wages the way men do) that are not directly tied to production. 
  • Social relations, and not just working conditions, too can lead to alienation.

Way ahead

• The topic of alienation, it is often said, has fallen out of fashion in social and political philosophy. But yet others continue to understand, debate and critique it from a contemporary viewpoint.

Snakebites in India

Context

• Recently, a report by the Kerala Forest department stated that Snakebites results in the highest number of human deaths nearly double that of wild elephants.

About

• As per ICMR study India has seen an estimated 1.2 million (12 lakh) snakebite deaths from 2000 to 2019, an average of 58,000.
• India accounts for almost 50% of global snakebite deaths .
• The snakebite envenoming (poisoning from snake bites) was classified by the World Health Organisation (WHO) as a high-priority neglected tropical disease.

Snakebite Envenoming 

• Snakebite envenoming is a potentially life-threatening disease caused by toxins in the bite of a venomous snake. 
• Envenoming can also be caused by having venom sprayed into the eyes by certain species of snakes that have the ability to spit venom as a defence measure.
• Snake venom contains a number of enzymes or proteinaceous substances, present in varying amounts according to the species of snake, which attack the blood, the nervous system, or other tissues. 

Impacts of Snake biting

• Some venoms produce direct toxic effects, but not all of them are lethal to human beings. Some are systemically lethal (e.g., the venom of the rattlesnake), whereas some are destructive primarily to tissue in the vicinity of the bite but may cause the development of gangrene.
• In India the neglect and lack of attention on snakebites as a public health issue due to the socio-economic backgrounds of victims.
• It is considered a poor person’s disease or a rural problem. People who get bitten by snakes are usually from marginalised communities, rural backgrounds, women, and children.
• Big four medically significant snakes: It is a  theory that claims that four species of snakes in South Asia, Russell’s viper, saw-scaled viper, spectacled cobra, and the common krait bite people the most in this region.
• In India, around 90% of snakebites are caused by the ‘big four’.

Cure of SnakeBiting

• Snake antivenoms are effective treatments to prevent or reverse most of the harmful effects of snakebite envenoming. They are included in the WHO Essential  Medicines List.
• Antivenoms: Antivenoms are purified antibodies against venoms or venom components. Antivenoms are produced from antibodies made by animals to injected venoms. Antivenom is the only definitive treatment for effective bites by venomous snakes.
• Antivenoms making process: To make life-saving antivenoms, scientists enlist the help of horses that live on specialized ranches.
  • The scientists inject the animals with a tiny, harmless dose of venom, which causes their immune systems to produce antibodies proteins that attack and disable the venom toxins.
  • Then the scientists can collect the antibodies and use them to treat people who have been bitten or stung.

Challenges 

• Lack of awareness, inadequate knowledge of prevention of snakebite and lack of first aid amongst the community lead to inefficient medical care. 

• Peripheral healthcare workers, delay in receiving lifesaving treatment, and non-availability of trained medical officers for management of snakebite contribute to a higher number of deaths.
• Superstitions about snake bites: The community had wrong perceptions on the identification of venomous snakes and snakebites. Belief in a snake god, ability of tamarind seeds or magnets to reduce the venom effect.
• There was no Information, Education, and Communication (IEC) material available on the identification of venomous and non-venomous snakes, prevention, first aid, and treatment of snakebites in any of the government healthcare facilities.

Steps taken 

• Inclusion of snakebite management in the curriculum of training institutions of state public health departments in India, mandatory short-term training of medical graduates during their internship and also as a part of the induction training on joining state health services in India.
• Snakebite prevention is to be included under a national programme by the Union government.
• A multi-sectoral approach of community awareness, capacity building of healthcare facilities for reducing the mortality and morbidity due to snakebite envenoming in India.
• Every village-level health centre has Anti Snake Venom  (ASV), which is the first stage of treatment, something that wasn’t easily available in rural India before.
• Even WHO launched its roadmap with an aim to halve death and disability from snakebite by 2030.

IMF’s latest World Economic Outlook update

In News

• The International Monetary Fund (IMF) released the January update of its World Economic Outlook.

About World Economic Outlook

• It presents analyses of global economic developments during the near and medium term. 
• Chapters give an overview as well as a more detailed analysis of the world economy; consider issues affecting industrial countries, developing countries, and economies in transition to market; and address topics of pressing current interest. 
• The IMF releases the WEO twice every year, in April and October, apart from updating it twice — in January and July.

Key takeaways from the latest World Economic Outlook update

• Global growth
  • It projects that global growth will fall to 2.9 percent in 2023 but rise to 3.1 percent in 2024. 
  • The 2023 forecast is 0.2 percentage points higher than predicted in the October 2022 World Economic Outlook but below the historical average of 3.8 percent. Rising interest rates and the war in Ukraine continue to weigh on economic activity. 
• Inflation 
  • Global inflation is expected to fall from 8.8 percent in 2022 to 6.6 percent in 2023 and 4.3 percent in 2024, still above pre-pandemic (2017–19) levels of about 3.5 percent.
  • The price rise is slowing for two main reasons.
    • monetary tightening all across the world — higher interest rates drag down overall demand for goods and services and that, in turn, slows down inflation.
    • in the wake of faltering demand, prices of different commodities — both fuel and non-fuel — have come down from their recent highs.
• Asia: According to the report, growth in emerging and developing Asia is expected to rise in 2023 and 2024 to 5.3% and 5.2%, respectively, after the deeper-than-expected slowdown in 2022 to 4.3 percent attributable to China’s economy.
• Indian Scenario:  It is expecting some slowdown in the Indian economy next fiscal year and projected the growth to 6.1% from 6.8% during the current fiscal ending March 31.

Concerns 

• Severe health outcomes in China could hold back the recovery, Russia’s war in Ukraine could escalate, and tighter global financing costs could worsen debt distress. 
• Financial markets could also suddenly reprice in response to adverse inflation news, while further geopolitical fragmentation could hamper economic progress.

Recommendations 

• In most economies, amid the cost-of-living crisis, the priority remains achieving sustained disinflation. With tighter monetary conditions and lower growth potentially affecting financial and debt stability, it is necessary to deploy macroprudential tools and strengthen debt restructuring frameworks.
• Accelerating COVID-19 vaccinations in China would safeguard the recovery, with positive cross-border spillovers. 
• Fiscal support should be better targeted at those most affected by elevated food and energy prices, and broad-based fiscal relief measures should be withdrawn.
• Stronger multilateral cooperation is essential to preserve the gains from the rules-based multilateral system and to mitigate climate change by limiting emissions and raising green investment.

The International Monetary Fund (IMF) It works to achieve sustainable growth and prosperity for all of its 190 member countries. It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being. The IMF is governed by and accountable to its member countries.The IMF issues an international reserve asset known as Special Drawing Rights(SDRs)that can supplement the official reserves of member countries.Publications:World Economic OutlookGlobal Financial Stability ReportFiscal MonitorRegional Economic OutlookAnnual Report of the Executive Board

President’s Address

In News

President Droupadi Murmu addressed the joint sitting of Parliament for the first time after assuming the position in July 2022.

Major Highlights of Speech 

• She lauded Prime Minister Narendra Modi’s government, saying that it “respects honesty” and is “stable, fearless and decisive, and works to fulfill big dreams”.
•  By 2047, we have to build a nation, which not only embraces its glorious past but also encompasses every golden aspect of modernity.

About President’s address

• History: In the United Kingdom, the tradition of the monarch addressing the Parliament began in the 16th century.
  • In the United States, President Gorge Washington addressed Congress for the first time in 1790.
• Evolution in India: In India, the practice of the President addressing Parliament was established after the promulgation of the Government of India Act in 1919.
  • Between 1947 and 1950, there was no address to the Constituent Assembly (Legislative).
  • After the Constitution came into force, President Rajendra Prasad addressed members of Lok Sabha and Rajya Sabha for the first time on January 31, 1950. 
• Constitutional Provisions: The Constitution gives the President and the Governor the power to address a sitting of the legislature.
  • Article 87 of the constitution provides two instances when the President specially addresses both Houses of Parliament.
    • The President of India addresses both the Rajya Sabha and the Lok Sabha at the beginning of the first Session after each general election when the reconstituted lower house meets for the first time. 
    • The President also addresses both the houses at beginning of the first session of each year.
• Procedure and tradition: There is no set format for the President’s or Governor’s speech. The Constitution states that the President shall “inform Parliament of the cause of the summons”.
  • The President’s speech essentially highlights the government’s policy priorities and plans for the upcoming year. The address provides a broad framework of the government’s agenda and direction.
  • After the President’s address, the two Houses move a motion to thank the President for her speech. 
• Deviation from the text of the speech: The President or Governor cannot refuse to perform the constitutional duty of delivering an address to the legislature.
  • But there can be situations when they deviate from the text of the speech prepared by the government. So far, there have been no instances of a President doing so. 
  • But there have been occasions when a Governor skipped or changed a portion of the address to the Assembly.
    • Most recently, Tamil Nadu’s Governor R N Ravi made changes to the prepared speech he read out in the Assembly. 
• Importance 

• The President’s address is seen as one of the most solemn occasions in the Parliamentary calendar. 
• It is the only time in the year when the whole Parliament comes together. .
• The President’s address serves as a platform for the government to make policy and legislative announcements.

Privilege motion

In News

A breach of privilege motion moved against senior BJP MLA and Deputy Leader of the Opposition Rajendra Rathore led to an uproar in the Rajasthan Assembly.

About Privilege motion

• All Members of Parliament (MPs) enjoy rights and immunities, individually and collectively, so that they can discharge their duties and functions effectively.
•  Any instance when these rights and immunities are disregarded by any member of Lok Sabha or Rajya Sabha is an offence, called ‘breach of privilege’, which is punishable under the Laws of Parliament.
• Any member from either house can move a notice in the form of a motion against the member who he/she thinks is guilty of the breach of privilege. 
• Both Houses of Parliament reserve the right to punish any act of contempt (not necessarily breach of privilege) that is against its authority and dignity, as per the laws.

the rules governing privilege

• Rule No 222 in Chapter 20 of the Lok Sabha Rule Book and correspondingly Rule 187 in Chapter 16 of the Rajya Sabha rulebook governs privilege. 
• It says that a member may, with the consent of the Speaker or the Chairperson, raise a question involving a breach of privilege either of a member or of the House or of a committee thereof.
•  The rules however mandate that any notice should be relating to an incident of recent occurrence and should need the intervention of the House. 

the role of the Speaker/Rajya Sabha Chair

• The Speaker/RS chairperson is the first level of scrutiny of a privilege motion.
• The Speaker/Chair can decide on the privilege motion himself or herself or refer it to the privileges committee of Parliament.
  •  If the Speaker/Chair gives consent under Rule 222, the member concerned is given an opportunity to make a short statement.