Urging stability and pragmatism
Hindustan TimesThe 2023-24 Economic Survey comes in a very different political backdrop for the current government. After all, the BJP couldn’t win a majority in the Lok Sabha on its own — despite the Indian economy continuing to be a rare sweet spot of high growth, moderate inflation and macroeconomic stability among major economies. It correctly flags the fact that the world will be very different going forward with both technological and geopolitical risks adding to headwinds for India’s goal of achieving a just and sustainable economic transformation. India must encourage FDI from China rather than relying on the trade route to boost export-oriented domestic manufacturing, the survey argues in the backdrop of multiple Chinese companies facing punitive actions from the government’s many enforcement agencies over the past few years. It flags India’s elevated market capitalisation to GDP ratio, growing retail participation in riskier forms of equity market activity such as derivative trading, and financial sector players indulging in mis-selling and speculative gains.