Economic Survey 2022

According to it, during FYs 2008-17, India invested about $1.1 trillion on infrastructure. "However, the challenge is to step up infrastructure investment substantially. "Keeping this objective in view, National Infrastructure Pipeline (NIP) was launched with projected infrastructure investment of around Rs 111 lakh crore ($1.5 trillion) during FY 2020-2025 to provide world-class infrastructure across the country, and improve the quality of life for all citizens," the Survey, tabled in Parliament on Monday, said.

The revenue receipts of the Central government during April- November 2021 have gone up by 67.2 per cent (YoY), as against an estimated growth of 9.6 per cent in the 2021-22 Budget Estimates. As per the Survey, the primary deficit during the period April to November 2021 turned up at nearly half of the level it had reached during April to November 2019.

To achieve this target with creation of other infrastructure in the sector, the government has increased the CAPEX (Capital expenditures) by five fold in the last seven years. Union Finance Minister Nirmala Sitharaman on Monday tabled Economic Survey 2021-22 in the Lok Sabha. The survey claims that IR is targeting 100 per cent electrification of its network by December 2023, upgradation of Delhi-Mumbai and Delhi-Kolkata corridors to 160 kmph and also elimination of level crossings on the Golden Quadrilateral and Golden Diagonal routes.

The Survey has noted that a distinguishing feature of India's economic response has been an emphasis on supply-side reforms rather than a total reliance on demand management. These supply-side reforms include deregulation of numerous sectors, simplification of processes, removal of legacy issues like 'retrospective tax', privatisation, production-linked incentives.

The Survey said that the government consumption was estimated to grow by a strong 7.6 per cent, thereby surpassing the pre-pandemic levels. Besides, private consumption is also estimated to have improved significantly to recover 97 per cent of corresponding pre-pandemic output level.

The strong revival in revenues also provides government with fiscal space to provide additional support as well, if necessary. The fiscal support given to the economy as well as the health response caused the fiscal deficit and government debt to rise in 2020-21. However, there has been a strong rebound in government revenues in 2021-22 so far. The revenue receipts of central government during April-November 2021 have gone up by 67.2% as against an estimated growth of 9.6% in the 2021-22 Budget Estimates.

According to the Survey 2021-22, the building back of the economic momentum along with enhanced vaccination drive as well as the likely long-term benefits of supply-side reforms in the pipeline, the Indian economy is in a good position to witness GDP "growth of 8.0-8.5 per cent in 2022-23". Nonetheless, it pointed out that the global environment still remains uncertain.

According to the survey document: "One of the reasons that the Indian economy is in a good position is its unique response strategy. Rather than pre-commit to a rigid response, Government of India opted to use safety-nets for vulnerable sections on one hand while responding iteratively based on 'Bayesian-updating' of information."

India's exports of both goods and services have been exceptionally strong so far in 2021-22. Merchandise exports have been above $30 billion for eight consecutive months in FY22, despite a rise in trade costs arising from global supply constraints such as fewer operational shipping vessels, exogenous events such as blockage of Suez Canal and Covid-19 outbreak.

The Survey was first published in 1950-51 and was initially part of the Budget documents. It was less than 50 pages in the 1950s and contained a brief outline of economic developments of the previous year. The Survey of 1957-58 had just 38 pages. It was primarily descriptive and contained little in the way of analysis and policy prescriptions.