Economic survey 2021-22 was tabled in Parliament on Monday by Finance Minister Nirmala Sitharaman. The survey is tabled a day before the Union Budget for the next fiscal year is presented by the government. It provides detailed information about the current economic status of the country. It further recommends policies, blueprints and strategies on resource allocations to bring about social and economic reforms. It is prepared under the aegis of the Chief Economic Advisor and is approved by the Union Finance Minister. Here are the key highlights:
1. It projects India’s GDP growth rate for the current fiscal year (FY 21-22) at 9.2%. It also projects growth rate for fiscal year 22-23 to be 8-8.5%. These estimates are on the basis of crude price at USD 70-75 per barrel in FY 2022-23.
2. It says that the economic activity in the country has reached the pre-pandemic levels and the economy is well placed to perform exceptionally in the next fiscal despite potential disruptions from the pandemic.
3. The positive growth projection is reinforced by a successful vaccination campaign as well as ease in supply chain issues across the world. Budget induced regulations will bolster GDP growth as well. India’s economic response to pandemic-induced GDP contraction has been reforms on the supply-side.
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4. The agricultural sector is poised to grow by 3.9 % in FY 2021-22. The survey has recommended diversification of crops to include pulses and oilseeds to reduce dependency of import of crucial food items.
5. The services sector is projected to grow at 8.2% in FY 2021-22.
6. The critical industrial sector is expected to grow by 11.8% in FY 2021-22.
7. An encouraging growth in exports in the current fiscal and presence of healthy fiscal space paves way for capital expenditure for boosting the economy.
8. Privatisation of Air India and the imminent LIC IPO will further provide significant capital to invest in economic development of the country.
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9. The survey warns of potential threats to Indian economic growth from high fuel prices and disturbances in the international container market which continues to impede the supply chains of crucial goods and services.
10. The capital expenditure of Indian Railways is ₹65,157 crore from April-November 2021.
11. India has the third largest startup ecosystem in the world after the U.S. and China. India saw a record 44 unicorns last year.
12. India has now the fifth largest forex reserves in the world, showing the country’s robust economic growth and an economic inertia for further reforms.
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