Health score for NBFCs and HFCs
Invisible hand of market, trust can create wealth
Placing wealth creation as its central theme, the Economic Survey of 201920 lauded the role played by the country’s top entrepreneurs in creating wealth that benefit the masses. The survey says a combination of the invisible hand of the market, supported by trust, creates wealth.
Picking up relevant points from Arthashastra and Thirukkural and reminiscing the centuries-old economic dominance of the country, K. Subramanian, Chief Economic Advisor to the Government of India, batted for more economic freedom.
“We looked at the top
100 entrepreneurs measured using the Forbes list, looked at the wealth they created in the last 10 years, applied necessary filters to ensure the wealth was created in the right way and co-related it with various other aspects of the society and found that the wealth benefitted the employees and their suppliers,” he said. He finds that citizens benefit from the direct taxes and indirect taxes paid by these entrepreneurs.
The survey found that India's aspiration to become a $5 trillion economy depends critically on strengthening the invisible hand of markets together with the hand of trust that can support markets. The invisible hand needs to be strengthened by promoting pro-business policies to provide equal opportunities for new entrepreneurs, removing anachronic government intervention, supporting job creation by ‘Assembling in India for the world’ and improving Ease of doing business. Scaling the banking sector proportionately to the size of the Indian economy will also help in creation of wealth.
The survey advocated freeing up of the economy and compared the growth of the economy pre- and post-liberalization. Several sectors, including banking and mutual funds, have benefitted after they were opened up for private players.