There is understandable emphasis on social sectors and there is, equally expectedly, no suggestions about better delivery systems. But the Survey contains more than this usual, unexceptionable politics. The rate of unemployment, according to last available data, has increased to 3 per cent (rural sector stagnation is responsible) and there has been a decline in organised sector employment, too. Are these because of labour market rigidities? Unlike earlier Surveys, this one is distinctly less forthcoming about labour market flexibility or even issues like targeting subsidies. Land acquisition is mentioned as a problem for highway programmes and for SEZs. But no position is taken on how resettlement, rehabilitation and compensation problems can be resolved. Traditionally, Surveys have pushed for reforms, unconstrained by political shackles since the Survey wasn’t considered a political document. This year’s Survey is different and is deeply reflective of UPA’s political position on reforms.
The UPA revels in the growth story and is unwilling to buck it — 650 million telephone subscribers by 2012, market capitalisation at 91.5 per cent of GDP, tax/GDP ratio of 11.2 per cent, all this sounds good — in the sense of actually reversing reforms. But it won’t push for liberalisation. The highway beckons, but the car is of an old model. The Survey seems to have no problems with this.