EconomicSurveyVolumeII.pdf - Economic Survey 2018-19 Volume 2 Government of India Ministry of Finance Department of Economic Affairs Economic Division

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Unformatted text preview: Economic Survey 2018-19 Volume 2 Government of India Ministry of Finance Department of Economic Affairs Economic Division North Block New Delhi-110001 E-mail: [email protected] July, 2019 CONTENTS Chapter Page No. No. Name of the Chapter 1 1 4 11 17 21 State of the Economy in 2018-19: A Macro View Overview: Global Economic Scenario Overview: Indian Economy Drivers of Growth Supply Side of the Economy Outlook of the Economy 35 51 53 54 Fiscal Developments Central Government Finances State Finances General Government Finances Outlook 2 3 64 68 70 70 71 72 73 76 77 4 Monetary Management and Financial Intermediation Monetary Developments during 2018-19 Liquidity Conditions and its Management Developments in the G-Sec Market Banking Sector Credit Growth Non-Banking Financial Sector Developments in Capital Market Insurance Sector Insolvency and Bankruptcy Code 2016: Resolving Corporate Stress in a Changed Paradigm 88 89 92 95 99 101 102 103 Prices and Inflation Introduction Current Trends in Inflation Drivers of Inflation Rural - Urban Inflation State-Wise Inflation Trends in Global Commodity Prices Efforts to Contain Inflation Conclusion 104 105 108 112 118 Sustainable Development and Climate Change Introduction Achieving the SDGs Ganga-The Lifeline of India Resource Efficiency Air Pollution 5 119 124 125 126 Climate Change Developments in the Sustainable Finance Arena International Solar Alliance (ISA) Way Forward 129 131 145 152 154 155 156 157 157 External Sector Global Economic Environment India's Balance of Payments Developments Nominal and Real Exchange Rate and Terms of Trade Composition of Trade Trade Policy Trade Facilitation Trade Related Logistics Anti-Dumping and Safeguard Measures Outlook 172 173 174 175 177 183 185 186 189 Agriculture and Food Management Introduction Overview of Agriculture and Allied Sectors Gross Capital Formation in Agriculture and Allied Sectors Pattern of Agricultural Landholdings in India Bringing Resource Efficiency in Smallholder Agriculture Role of Extension Services Agricultural Credit Allied Sectors: Animal Husbandry, Dairying and Fisheries Food Security and Food Management in India 197 198 201 202 202 203 203 206 209 210 212 215 217 218 220 222 Industry and Infrastructure Indian Industry: An Overview Index of Industrial Production (IIP) Central Public Sector Enterprises (CPSES) Corporate Sector Performance Gross Capital Formation in Industrial Sector Credit Flow to the Industrial Sector Key Initiatives Taken To Boost Industrial Sector In India Sector Wise Issues and Performance Infrastructure Road Sector Railways Civil Aviation Shipping Telecom Sector Petroleum & Natural Gas Power Sector 6 7 8 223 224 226 226 Housing Smart Cities Mission Infrastructure Financing: Public Private Partnerships (PPPs) Way Forward 228 228 231 235 235 237 238 240 242 248 Services Sector Services Sector Performance in India: An Overview India's Gross Value Added in The Services Sector Trade in Services Sector FDI Into Services Sector Services Sector Gross Value Added Versus Employment Major Services: Sector-Wise Performance and Some Recent Policies Tourism ITBPM Services Media and Entertainment Services Space Services 251 252 255 257 260 263 265 266 273 277 Social Infrastructure, Employment and Human Development Introduction Human Development Index Gender Issues Trends in Social Sector Expenditure Education for All Skill Development Employment Scenario Health for All Rural Development The Way Forward 9 10 Acknowledgements The Economic Survey is a result of teamwork and collaboration. Contributions to the Survey from the Economic Division include: Sanjeev Sanyal, Sushmita Dasgupta, Arun Kumar Jha, Arun Kumar, Rajiv Mishra, Rajasree Ray, A Srija, Surbhi Jain, A. Prathibha, S. Arputhaswamy, Nikhila Menon, Ashwini Lal, Abhishek Acharya, Rajani Ranjan, Sindhumannickal Thankappan, Prerna Joshi, Dharmendra Kumar, Aakanksha Arora, M. Rahul, Rabi Ranjan, Tulsipriya Rajkumari, Shamim Ara, J.D. Vaishampayan, Arya B.K., Abhishek Anand, Sonal Ramesh, Sanjana Kadyan, Amit Sheoran, Shreya Bajaj, Subhash Chand, Riyaz Ahmad Khan, Md. Aftab Alam, Pradyut Kumar Pyne, Narendra Jena, Sribatsa Kumar Parida, Mritunjay Kumar, Rajesh Sharma and Amit Kumar Kesarwani, Arpitha Bykere, Naveen Bali, Mahima, Ankur Gupta, Lipi Budhraja, Sonum Gayatri Malhotra and Lavisha Arora. The Survey has benefitted from the valuable comments and insights of the Hon'ble Finance Minister Smt Nirmala Sitharaman and the Hon'ble Minister of State for Finance Shri Anurag Singh Thakur. The Survey benefitted from the comments and inputs from officials spread across various Ministries/ Departments and organisations, specifically Shri Pranab Kumar Mukhopadhyay, DG, DGCI&S, Kolkata; Shri Ajay Srivastava, Economic Adviser, Department of Commerce; Ms. Shruti Shukla, Joint Director, DGCI&S, Kolkata; Dr. M. D. Patra, Executive Director, Reserve Bank of India (RBI); Shri Rajan Goyal, Adviser, Reserve Bank of India (RBI); Prof. K. S. James and Prof. Chander Shekhar, International Institute for Population Sciences; Prof. Suresh Sharma and Vandana Sharma, Institute of Economic Growth; Mr. Surya Prakash B. S., Fellow and Programme Director; Shri Rajiv Jain, Director, RBI; Shri Dhirendra Gajbhiye, Assistant Adviser, Reserve Bank of India (RBI); Siddharth Mandrekar Rao, Research Associate, Daksh; Ms. Soumasree Tewari, Research Officer, RBI; Shri Sukhbir Singh, CAAA, Department of Economic Affairs, Ministry of Finance; Shri Abhay Bakre, Director General, Bureau of Energy Efficiency; Dr. Ashok Kumar , Director, Bureau of Energy Efficiency; Dr. Surya P Sethi and Shri Sameer Kumar- Joint Secretary, Ministry of Drinking Water and Sanitation. Apart from the above, various ministries, departments and organisations of the Government of India made contributions in their respective sectors. Several ministries directly interacted with the CEA via presentations to provide their inputs. The Economic Survey is gratified for their valuable time, engagement and contributions. Able administrative support was given by K. Rajaraman, Rajkumar Tiwari, Jasbir Singh, Suresh Kumar, Anupam Shukla, Sadhna Sharma, Arun Gulati, Sushil Sharma, Manish Panwar, Muna Sah, Suresh Kumar, Jodh Singh, Ombir Singh, R R Meena, Subash Chand, Raj Kumar, Ram Niwas, Kesar Singh, Bal Kishan, Satish Kumar, Gajender Singh and other staff and members of the Economic Division and the Office of CEA. The cover page for the Survey was designed by India Brand Equity Foundation. Viba Press Pvt. Ltd. undertook the printing of the English and Hindi version of the Survey. Finally, the Economic Survey owes deep gratitude to the families of all those involved in its preparation for being ever so patient, understanding and encouraging and for extending their unflinching emotional and physical support throughout the preparation. The families, indeed, are the silent pillars of strength for the dedicated contributors to the Economic Survey. Krishnamurthy V. Subramanian (Chief Economic Adviser) Ministry of Finance Government of India (vii) ABBREVIATIONS AAI Airports Authority of India AFD Agence Française de Dévelopment CECPA Comprehensive Economic Cooperation and Partnership Agreement AH Area Operated by Operational Land Holdings CEPA Comprehensive Economic Partnership Agreement AI Artificial Intelligence CEPI Custodian of Enemy Property CER Corporate Environmental Responsibility AIR All India Radio AITIGA ASEAN India Trade in Goods Agreement AM Alternative Mechanism AMC Asset Management Company AMFFRI Agricultural Marketing and Farmer Friendly Reforms Index CFPI Consumer Food Price Index CGA Controller General of Accounts CGST Central Goods and Services Tax CHCs Custom Hiring Centres CIB Centre for Insolvency and Bankruptcy Currency in Circulation AMRUT Atal Mission for Rejuvenation and Urban Transformation CIC CII Confederation of Indian Industries ANC Ante-Natal Care CIL Coal India Limited APL Above Poverty Line CIP Central Issue Price APMC Agricultural Produce Market Committee CIRP Corporate Insolvency Resolution Process APWRIMS Andhra Pradesh Water Resources Information & Management Systems CLAF City Level Advisory Forums CMIE Centre for Monitoring Indian Economy AQI Air Quality Index CoC Committee of Creditors AR Augmented Reality CPCB Central Pollution Control Board ASEAN Association of South-East Asian Nations CPI Consumer Price Index ASER Annual Status of Education Report CPI (AL) Consumer Price Index (Agricultural Labourers) ASI Annual Survey of Industries CPI (IW) Consumer Price Index (Industrial Workers) ASK Available Seat Kilometers CPI (RL) Consumer Price Index (Rural Labourers) AYUSH Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy CPI-C Consumer Price Index (Combined) CPSE Central Public Sector Enterprise B2B Business to business CRAR Capital to Risk-weighted Asset Ratio B2C Business to Consumer CRF Central Road Fund BARC Broadcasting Audience Research Council CRIF Central Road and Infrastructure Fund BBBP Beti Bachao Beti Padhao CSL Cochin Shipyard Limited BCD Basic Customs Duty CSO Central Statistics Office BE Budget Estimates CSR Corporate Social Responsibility BHEL Bharat Heavy Industries Limited CSS Centrally Sponsored Scheme BOD Biological Oxygen Demand CVD Countervailing Duty BoP Balance of Payments CwP Currency with Public BOT Build-Operate-Transfer D.Ed Diploma in Elementary Education BPL Below Poverty Line DARE BRE Bureau of Resource Efficiency Department of Agricultural Research and Education BSE Bombay Stock Exchange DB Doing Business BTIA Bilateral Trade and Investment Agreement BU Billion Units BUR Biennial Update Report C&D Construction & Demolition DBT Direct Benefit Transfer DCIL Dredging Corporation of India Limited DD Doordarshan DDP Department of Defence Production DDUGJY Deen Dayal Upadhyay Gram Jyoti Yojana DE Departmental Enterprises CAD Current Account Deficit CAG Comptroller Auditor General of India CAGR Compound Annual Growth Rate CBDR-RC Common but Differentiated Responsibilities and Respective Capabilities CBM Coal Bed Methane CCAP Climate Change Action Programme CCEA Cabinet Committee on Economic Affairs DGTR Directorate General of Trade Remedies CE Circular Economy DIDF CECA Comprehensive Economic Cooperation Agreement Dairy Processing and Infrastructure Development Fund (ix) DEA Department of Economic Affairs DGAD Directorate General of Anti-dumping and Allied Duties DGCA Directorate General of Civil Aviation DGCI&S Directorate General of Commercial Intelligence and Statistics DIPAM Department of Investment and Public Asset Management GCF Gross Capital Formation GDP Gross Domestic Product DISC Defence India Start-up Challenges GER Gross Enrolment Ratio DMEO Development Monitoring & Evaluation Office GFCE Government Final Consumption Expenditure DoE Department of Expenditure GFCF Gross Fixed Capital Formation DPIIT Department for Promotion of Industry and Internal Trade GFSI Global Food Security Index Gg Gigagram GHG Greenhouse Gas GIP Graduate Insolvency Programme GNI Gross National Income DPSU Defence Public Sector Undertaking DTH Direct to Home DWT Dead Weight Tonnage EaEU Eurasian Economic Union EAG Empowered Action Group EAP Externally Aided Projects EBR Extra Budgetary Resources ECBs External Commercial Borrowings ECOWAS Economic Community of West African States EFTA European Free Trade Association ELVs End-of-Life Vehicles(s) EM Emerging Market EMDEs Emerging Market and Developing Economies EME Emerging Market Economies GNPA Gross Non-Performing Assets GPI Gender Parity Index GPIs Grossly Polluting Industries GRR Global Restructuring Review GRSE Garden Reach Shipbuilders & Engineers Ltd GRT Gross Registered Tonnage GSAT Geosynchronous Satellites G-Sec Government Security GSLV Geosynchronous Satellite Launch Vehicle GSMA Global System for Mobile Communication Association e-NAM Electronic National Agriculture Market GST Goods and Services Tax EPC Engineering, Procurement and Construction GSTR Goods and Services Tax Return EPF Employees' Provident Fund GSVA Gross State Value Added EPR Extended Producer Responsibility GTR Gross Tax Revenue ESAG Educational Statistics at a Glance GTT Gross Terms of Trade ESDM Electronics System Design and Manufacturing GVA Gross Value Added ESI Employees' State Insurance Scheme Ha Hectare ETCA Economic and Technology Cooperation Agreement HAM Hybrid Annuity Mode ETF Exchange Traded Funds HDI Human Development Index EU European Union HP-HT High Pressure-High Temperature EY Ernst & Young HPI Housing Price Index FALLCR Facility to Avail Liquidity for Liquidity Coverage Ratio HSCC Hospital Services Consultancy Corporation IBBI Insolvency and Bankruptcy Board of India IBC Insolvency and Bankruptcy Code FAO Food and Agriculture Organization FC Financial Creditor FCI Food Corporation of India FDI Foreign Direct Investment FFPI FAO Food Price Index FICCI FIDF ICAR Indian Council of Agricultural Research ICE Internal Combustion Engine ICRA Investment Information and Credit Rating Agency of India Federation of India Chambers of Commerce and Industry ICRIER Indian Council for Research on International Economic Relations Fisheries and Aquaculture Infrastructure Development Fund ICT Information and Communications Technology IDERA Irrevocable De-registration & Export Request Authorization FII Foreign Institutional Investors FM Frequency Modulation iDEX Innovation for Defence Excellence FMCG Fast Moving Consumer Goods IEBR Internal and Extra Budgetary Resources FMD Foot and Mouth Disease IFPRI International Food Policy Research Institute FPI Foreign Portfolio Investment IFS International Financial Statistics FPO Further Public Offer IGST Integrated Goods and Services Tax FPSs Fair Price Shops IICA Indian Institute of Corporate Affairs FRBMA Fiscal Responsibility and Budget Management Act IIP International Investment Position FTA Free Trade Agreement IL Industrial License FTP Foreign Trade Policy ILC Insolvency Law Committee FY Financial Year IMCECA GCA Gross Cropped Area India and Malaysia Implement Comprehensive Economic Cooperation Agreement (x) IMF International Monetary Fund MMT IMG Inter-Ministerial Group MMTPA Million Metric Tonnes Per Annum InvITs Infrastructure Investment Trusts MNP Mobile Number Portability IOCL Indian Oil Corporation Limited MoEF&CC IoT Internet-of-Things Ministry of Environment, Forest and Climate Change IP Insured Persons MoHUA Ministry of Housing and Urban Affairs IPCC Intergovernmental Panel on Climate Change MoP Margin of Preference IPO Initial Public Offer MORTH Ministry of Road Transport and Highways IPPU Industrial Processes and Product Use MOSPI IR Indian Railways Ministry of Statistics Implementation IRCON Indian Railway Construction Company Limited MOVCDNER Mission Organic Value Chain Development for North Eastern Region IRCTC Indian Railways Catering and Tourism Corporation MoWCD Ministry of Women and Child Development IRF Insolvency Research Foundation MPC Monetary Policy Committee IRFC Indian Railway Finance Corporation MPI Municipal Performance Index ISA International Solar Alliance MRA Mutual Recognition Agreement ISLFTA India-Sri Lanka Free Trade Agreement MRFs Material Recovery Facilities ISRO Indian Space Research organisation MRO Maintenance, Repair & Overhaul IT Information Technology MSEI Metropolitan Stock Exchange of India Limited ITA International Tourist Arrivals MSF Marginal Standing Facility IT-BPM Information Technology - Business Process Management MSME Micro Small Medium Enterprises MSO Multi System Operators ITC Input Tax Credit ITT Income Terms of Trade IU Information Utilities IWMP Integrated Watershed Management Programme IWP Irrigation Water Productivity JFSG Joint Feasibility Study Group MTPA Million Tonnes per Annum KIOCL Kudremukh Iron Ore Company Limited MW Mega Watt Minimum Work Programme Million Metric Tonnes and MSP Minimum Support Price MSTC Metal Scrap Trade Corporation MT Metric Tonne MT Million Tonnes MTFP Medium Term Fiscal Policy Programme KVKs Krishi Vigyan Kendras MWP LAF Liquidity Adjustment Facility NAAQS National Ambient Air QualityStandards LCO Local Cable Operators NABARD LCR Liquidity Coverage Ratio National Bank for Agriculture and Rural Development North America Free Trade Agreement LFPR Labour Force Participation Rate NAFTA LIDAR Light Detection and Ranging NALCO National Aluminium Company Limited LPI Logistics Performance Index NAM National Ayush Mission LSG Local Self Government NAMP National Air Quality Monitoring Programme LULUCF Land use, Land-Use Change and Forestry NAPCC National Action Plan on Climate Change M0 Reserve Money NAS National Achievement Survey M2M Machine-to-Machine NASSCOM M3 Broad Money National Association of Software and Services Companies MCA Ministry of Corporate Affairs NBCC National Buildings Construction Corporation Ministry of Electronics and Information Technology NBFC Non-Banking Financial Companies NCAP National Clean Air Program Minimum Export Price NCLAT National Company Law Appellate Tribunal Mahatma Gandhi National Rural Employment Guarantee Act NCLT National Company Law Tribunal NCR National Capital Region MHA Ministry of Home Affairs NCTF National Committee on Trade Facilitation MI Micro Irrigation NDE Non-Departmental Enterprises MI Mission Indradhanush NDTL Net Demand and Time Liabilities MI Mixed Income NEEPCO North Eastern Electric Power Corporation Limited MIDHANI Mishra Dhatu Nigam NEER Nominal Effective Exchange Rate MLD Million Litres per Day NeSL National e-Governance Services Limited MMR Maternal Mortality Ratio NFC Non Food Credit MMSCM Million Metric Standard Cubic Meters NFSA National Food Security Act MeitY MEP MGNREGA (xi) NGNF Non-Governmental Non-Functional PAN NHAI National Highway Authority of India PAWP Paris Agreement Work Programme NHB National Housing Bank PDS ?Public Distribution System NHIDCL National Highways and Infrastructure Development Corporation Limited PFC Power Finance Corporation Limited PFCE Private Final Consumption Expenditure NHM National Health Mission PFRDA NHP National Hydrology Project Pension Fund Regulatory and Development Authority NHPC National Hydroelectric Power Corporation PGI Performance Grading Index NIFAP National lnland Fisheries and Aquaculture Policy PIP Pool Issue Price NIIP Net International Investment Position PKVY Paramparagat Krishi Vikas Yojana NIUA National Institute of Urban Affairs PLFS Periodic Labour Force Survey NIUA National Institute of Urban Affairs PM10 Suspended Particulate Matter NLC Neyveli Lignite Corporation Limited PM2.5 Fine Particulate Matter NLH Number of Operational Land Holdings PMAY Pradhan Mantri Awas Yojana NMCG National Mission for Clean Ganga PMAY- G Pradhan Mantri Awas Yojana (Gramin) NMDC National Mineral Development Corporation PMGSY Pradhan Mantri Gram Sadak Yojana NMSA National Mission for Sustainable Agriculture PMI Purchasing Managers' Index NNI Net National Income PMJDY Pradhan Mantri Jan-Dhan Yojana NO2 Oxides of Nitrogen PM-KISAN Pradhan Mantri Kisan Samman Nidhi NOCs National Oil Companies PMKVY Pradhan Mantri Kaushal Vikas Yojana NPA Non-Performing Assets PMSMA Pradhan Mantri Surakshit Matritva Abhiyan NPCC National Projects Construction Corporation Limited PMUY Pradhan Mantri Ujjwala Yojana POL Petroleum, Oil and Lubricants National Programme for the Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke PPP Public-Private Partnership PPP Purchasing Power Parity NPE National Policy on Electronics PPR Peste des Petis Ruminants NPS National Pension Scheme PRASHAD Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive PRO Producer Responsibility Organizations PSB Public Sector Bank NPCDCS NPT Net Production Tax NRHM National Rural Health Mission NRI Non-resident Indian NSE National Stock Exchange NSSF National Social Security Fund NSSO National Sample Survey Office NTT Net Terms of Trade NUHM National Urban Health Mission NUIH National Urban Innovation Hub O&M Operation & Maintenance OCEMS...
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