Economic Survey 2022 on the state of the Indian economy

: Economic Survey 2022 on the state of the Indian economy

 

• Indian economy estimated to grow by 9.2 per cent in real terms in 2021-22 (as per first advanced estimates) subsequent to a contraction of 7.3 per cent in 2020-21.  
• GDP projected to grow by 8- 8.5 per cent in real terms in 2022-23.  
• The year ahead poised for a pickup in private sector investment with the financial system in good position to provide support for economy's revival.  
• Projection comparable with World Bank and Asian Development Bank's latest forecasts of real GDP growth of 8.7 per cent and 7.5 per cent respectively for 2022-23. 
• As per IMF's latest World Economic Outlook projections, India's real GDP projected to grow at 9 per cent in 2021-22 and 2022-23 and at 7.1 per cent in 2023-2024, which would make India the fastest-growing major economy in the world for all 3years.
• Agriculture and allied sectors expected to grow by 3.9 per cent; industry by 11.8 percent and services sector by 8.2 per cent in 2021-22.
• On demand side, consumption estimated to grow by 7.0 per cent, Gross Fixed Capital Formation (GFCF) by 15 per cent, exports by 16.5 per cent and imports by 29.4 per cent in 2021-22.
• Macroeconomic stability indicators suggest that the Indian Economy is well placed to take on the challenges of 2022-23. 
• Combination of high foreign exchange reserves, sustained foreign direct investment, and rising export earnings will provide adequate buffer against possible global liquidity tapering in 2022-23. 
• Economic impact of "second wave" was much smaller than that during the full lockdown phase in 2020-21, though health impact was more severe.
• Government of India's unique response comprised of safety-nets to cushion the impact on vulnerable sections of society and the business sector, significant increase in capital expenditure to spur growth and supply side reforms for a sustained long-term expansion.
• Government's flexible and multi-layered response is partly based on an "Agile" framework that uses feedback-loops, and the use of eighty high-frequency Indicators (HFIs) in an environment of extreme uncertainty. 

 

: Just tuned in? Here are the key highlights of the economic survey 2021-22

 

• 9.2 percent growth expected in real terms in 2021-22
• GDP projected to grow 8.0-8.5 percent in 2022-23
• Pandemic: government's supply side reforms preparing economy for sustained longterm expansion 
• Capex grows by 13.5 percent (yoy) during april-november, 2021
• Foreign exchange reserves touch  us$ 633.6 billion on 31st december, 2021 
• Macroeconomic stability indicators suggest economy well placed to take on challenges of 2022-23
• Massive growth in revenue receipts
• Social sector: expenditure on social services as proportion of gdp increases to 8.6 percent in 2021-22 (be) as compared to 6.2 percent in 2014-15 
• With revival of economy, employment indicators bounced back to pre-pandemic levels during last quarter of 2020-21
• Merchandise exports and imports rebound strongly and surpass precovid levels 

: Expenditure on social services ramped up in recent years, says Sanjeev Sanyal

 

Spending on social services has been significantly ramped up in recent years, in various categories such as Health, Education and others, in line with the government's policy of providing safety nets to vulnerable sections in the wake of the COVID-19 pandemic, says the Principal Economic Advisor.