Highlights of Economic Survey 2021-22
Following are the highlights of the Finance Ministry’s Economic Survey 2021-22.
* Pegs economic growth for 2022-23 at 8-8.5 pc; for 2021-22 GDP expansion at 9.2 pc
* Economic activity has recovered to pre-pandemic level, economy well placed to take on challenges in 2022-23
* Growth in FY23 to be supported by vaccine coverage, gains from supply-side reforms and easing of regulations
* Growth projections based on oil price projection of USD 70-75 per barrel next fiscal, against current price of USD 90
* India’s economic response to devastation caused by pandemic has been supply-side reforms, rather than demand management
* India’s agile policy response differed from the waterfall strategy of introducing front-loaded stimulus packages, adopted by most other countries in 2020.
* Robust export growth and availability of fiscal space to ramp up capital spending to support growth next fiscal
* Private sector investment to pick with financial system in good position to provide support to revival of economy
* Air India privatisation key in boosting government’s privatisation drive; calls for private participation in all sector
* Government finances to witness consolidation in 2021-22, after uptick in deficit and debt indicators in the previous year
* India transformed from being among ‘Fragile Five’ nations to 4th largest forex reserve, giving policy room for manoeuvring
* High WPI inflation is partly due to base effects that will even out, need to be wary of imported inflation, especially from elevated global energy prices
* Disruptions in the global container market not yet over; will continue to impact the global sea trade
* Crop diversification towards oilseeds, pulses and horticulture needs to be given priority
* Climate finance will remain critical to successful climate action for India to achieve its net-zero carbon emission target by 2070.
