{"id":54338,"date":"2020-02-26T16:49:07","date_gmt":"2020-02-26T11:19:07","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=54338"},"modified":"2020-02-26T16:49:25","modified_gmt":"2020-02-26T11:19:25","slug":"answered-economic-survey-2020-highlights-that-indias-aspiration-to-become-a-5-trillion-economy-depends-critically-on-promoting-pro-business-policy-than-a-pro-cr","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-economic-survey-2020-highlights-that-indias-aspiration-to-become-a-5-trillion-economy-depends-critically-on-promoting-pro-business-policy-than-a-pro-cr\/","title":{"rendered":"[Answered] Economic survey 2020, highlights that India\u2019s aspiration to become a $5 trillion economy depends critically on promoting \u2018pro-business\u2019 policy than a \u2018pro-crony\u2019 policy. Do you agree? Elaborate."},"content":{"rendered":"\n
\n Demand of the\n question<\/strong>\n Introduction. <\/strong>Contextual\n introduction.\n Body. <\/strong>Discuss why Pro-business policy is important to achieve\n the $5 trillion goal.\n Conclusion. <\/strong>Way\n forward.\n <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

India aspires to become a $5 trillion economy by 2025. This\nwill make India the 3rd<\/sup> largest economy in the world. According to\nthe economic survey to fulfil this dream India must promote \u2018pro-business\u2019\npolicy. This will unleash the power of competitive markets and will generate\nwealth. Further India needs to prevent \u2018pro-crony\u2019 policies that favour\nspecific private interests. <\/p>\n\n\n\n

Importance of\nPro-business policy:<\/strong><\/p>\n\n\n\n

  1. Encourage competition: <\/strong>Pro-business\npolicies are those that enable fair competition in the country. It leads to\nequal opportunities for new entrants and thus instil a sense of competition\namong them leading to overall economic growth.<\/li>
  2. Market freedom: <\/strong>Pro-business\npolicies are pro-people policies. When the\ngovernment fosters a climate that encourages economic freedom, then market\nforces work freely to earn profits. It speeds\nup economic growth and job creation.<\/li>
  3. Small scale industries: <\/strong>Pro-business\npolicies means enabling small scale industry to grow and boost. This not only leads to economic growth but also generates employment. This\nwould help in economic growth.<\/li>
  4. Generate\nrevenue: <\/strong>Pro-business policies are favourable for the new entrants to\nmarkets. This in turn leads to market growth, generates wealth and provides tax\nrevenue to the government.<\/li>
  5. Boost exports: <\/strong>If\nIndia has to achieve the $5 trillion target it\nneeds to boost exports. Pro-business policies\nhelp in boosting exports through a better tax\nsystem, removing inverted duties etc. Exports help to enrich the forex\nreserves as well prevent any BOP crisis. Initiatives\nlike Make in India is a right step.<\/li>
  6. Prevent monopolies: <\/strong>Pro-crony\npolicies favour few and led to growth of only powerful and rich corporates.\nPro-business policies work towards destroying monopolistic tendencies and\nenable equal market. $5 trillion goal can\u2019t be achieved by favouring few.<\/li>
  7. Benefit labour: <\/strong>Pro-business\npolicies benefit labour too. Cutting the federal corporate tax rate is a good\nsocial policy, because it will lead to job growth and rise in wages. This will\nenable more efficient labour and would boost the economy.<\/li>
  8. Foreign investment: <\/strong>Cutting\nthe corporate tax will encourage more business activity from abroad, which will\nencourage firms to expand their operations and hire more workers.<\/li><\/ol>\n\n\n\n

    Way forward:<\/strong><\/p>\n\n\n\n

    1. Labour reforms: <\/strong>Labour\nLaws should be reformed as due to the stringent labour laws corporates in India\nare preferring Capital intensive mode of Production in a country where labour\nis abundant.<\/li>
    2. Promoting labour Intensive sectors:<\/strong> Labour intensive sectors like food processing industry,\nleather industry, apparel, electronics, gems and jewellery, financial services,\nand tourism etc. should be encouraged. Appropriate subsidies and tax incentives\nshould be given to incentivise them. Make in India initiative a great step\nforward which will boost the manufacturing.<\/li>
    3. Strengthening MSME: <\/strong>MSME\nsector should be promoted and supported. Easing regulations, subsidies will\nhelp. Also easy availability of credit should\nbe the priority. MUDRA has the potential to\ncreate required jobs in India.<\/li>
    4. Implementing Niti Aayog action agenda: <\/strong> The Action Agenda\nhas provided several good ideas for job creation, including labour law reforms\nat the state level. The report emphasizes the role of exports in job creation\nand recommends establishing coastal employment zones (CEZs), similar to China\u2019s\nspecial economic zones (SEZs). This agenda must be implemented in letter and\nspirit.<\/li>
    5. Entrepreneurship: <\/strong>The\nfocus of economic policy must be on creating an enabling policy for youth to\ntake up entrepreneurship and create more jobs in the market. India does not\nneed five companies worth 5000 crores turnover but needs 5000 companies of 5\ncrore turnover.<\/li><\/ol>\n\n\n\n

      Pro-business policies are important for economic growth.\nInitiatives like Make in India, Skill India and digital India are important.\nIndia has improved its ease of doing business and moved to 63rd<\/sup> spot\nrecently. Government must ensure that its policies should not turn pro-crony\nbenefiting only a few.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Demand of the question Introduction. Contextual introduction. Body. Discuss why Pro-business policy is important to achieve the $5 trillion goal. Conclusion. Way forward. India aspires to become a $5 trillion economy by 2025. This will make India the 3rd largest economy in the world. According to the economic survey to fulfil this dream India must… Continue reading [Answered] Economic survey 2020, highlights that India\u2019s aspiration to become a $5 trillion economy depends critically on promoting \u2018pro-business\u2019 policy than a \u2018pro-crony\u2019 policy. Do you agree? Elaborate.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-54338","page","type-page","status-publish","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/54338","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=54338"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/54338\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=54338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}