Thursday, March 26, 2015

Economic Survey & Preparing for Indian Economy

Always read Economic Survey along with Budgets for better clarification because survey is the mirror of the economy before the presentation of Budget, especially chapters on :
o   Infrastructure n social developments
o   Social indicators
o   Agriculture
o   rural Development
o   schemes are more important
Prathyigota Darpan is really good guide
Newspaper reading is always best n very comprehensive on Economic aspects

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I too had a habit of reading the survey!! Found it very useful!!!

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Personally eco survey was very useful for me...it is quite interesting too once u get to know what to look for. It's like a compendium of all the economics news we read throughout the year.
Anybody reading it? Read it? Have any opinion as to the usefulness of it?
ü  I've always found it very interesting sir...gives a very clear broader perspective of the ways of the govt policies in place...
ü  Yes sir. Reading it. My optional is economics.
ü  Many topics of Macroeconomics get covered while reading it
ü  I have read some portions of it sir, some Red topics were part of it...
ü  Read it last year sir ... Found it useful as few concepts r asked directly from it ...
ü  Can able to know where to focus in a govt policy... Which area govt have to give more stress.
ü  Sir, even I agree that Economic Survey is very important and also very interesting.
The first two chapters and the last two, provided they are still in the same format, are quite important. They give u the perspective the govt holds with regards to the economy...
if u read all those articles that come in newspapers before and shortly after the budget...they ll give u lots of suggestions and have lots of criticisms, appreciations. But remember these r views that r not bereft of interests. these r ways in which interest groups lobby for better allotment or create opinion to steer policy in their favour...nothing wrong or right about it...just that they r not neutral
It is a wealth of critical analysis
eco survey is the closest u can get to actual thought that guided actual policy...the first two chapters actually tell u the status of the economy in the view of policy makers...and the last two the way ahead....how the current govt in power thinks of steering the economy. So read digest these chapters.
As to the sector specific chapters...get the over al picture...with allotments giving u the priority attached to each sector...and the guidelines giving u the issues that r being addressed... e.g. more allotment for infra....in that lets take power. What is given priority...new power plants? Or handling leakages, better grid management? Or alternative sources of power?
These are very important questions...try to get the broader picture...don’t get bogged by raw figures given in the survey. These figures at best can only help u to substantiate the broader view that u r trying to understand and explain...so priority to the concept...then figures. Very minimally...to substantiate...
Ø  Sir now it is based on IMF format -2 volumes
Ø  Sir this year format has changed. I did not read last year's. But this year there are two volumes. First volume gives a broader perspective on things.
Oh two volumes? Great... but I think u get the general idea that I am trying to share here??
As far as economics is concerned...there r few broad topics:
1. The general trend of economic thought since independence...PD has been a good source for this...
2. The eco survey and budget. Read together gives u where we r and where r we headed...
3. With regards to this budget seen by many as paradigm shifting- look for those structural shifts. Newspapers will give u insight into this
4. To understand all this fundamental macro-economic theory...fiscal policy, monetary policy, banking system, etc.
Can u tell me few such fundamental shifts in this budget as u see it?
ü  Increased tax devolution to states.
Good. That’s a shift from centralised planning policy making fund allotment and monitoring that happened till now. ..With more central guidelines in schemes in UPA times. This changes the way allotments for sectors r made and lot many things on the ground. There is a valid criticism on social sector allotment too.
These are the things u need to study for economics....history of eco policy, eco survey with budget, India year book for all schemes and allotment ratios.
A very important pertinent list of specific topics ...I think u should all note that down and create content for each of those...by that you’ll have eco in your control for pre and mains:
o   New proposal on agricultural n industrial policy
o   ethos of fiscal control on monetary policy
o   agrarian reforms
o   social schemes for underdeveloped areas
o   schemes for social security

o   Industrial policy especially minerals,
o   oil n Natural gas exploration,
o   forest policy

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