Economic Survey of India 2021-22

 Here are some of the key highlights of The Economic Survey of India 2021-22 

• Advance estimates suggest that the Indian economy is expected to witness real GDP expansion of 9.2 per cent in 2021-22 after contracting in 2020-21.
• The Indian economy is in a good position to witness GDP growth of 8.0-8.5 per cent in 2022-23.
• All indicators show that the economic impact of the 'second wave' in Q1 was much smaller than that experienced during the full lockdown phase in 2020-21 even though the health impact was more severe.
• Agriculture and allied sectors have been the least impacted by the pandemic. The sector is expected to grow by 3.9 per cent in 2021-22 after growing 3.6 per cent in the previous year
• Advance estimates suggest that the GVA (gross value added) of industry (including mining and construction) will rise by 11.8 per cent in 2021-22 after contracting by 7 per cent in 2020-21.
• The services sector has been the hardest hit by the pandemic, especially segments that involve human contact.
• This sector is estimated to grow by 8.2 per cent this financial year following last year’s 8.4 per cent contraction.
• Total consumption is estimated to have grown by 7.0 per cent in 2021-22 with significant contributions from government spending.
• Gross Fixed Capital Formation exceeded pre-pandemic levels on the back of ramped up public expenditure on infrastructure.
• Exports of both goods and services have been exceptionally strong so far in 2021-22, but imports also recovered strongly with recovery in domestic demand as well as higher international commodity prices.
• India’s balance of payments remained in surplus throughout the last two years.
• India’s Consumer Price Index inflation stood at 5.6 per cent YoY in December 2021 which is within the targeted tolerance band. Wholesale price inflation, however, has been running in double-digits.

The survey reads, “Overall, macro-economic stability indicators suggest that the Indian economy is well placed to take on the challenges of 2022-23. 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."