Economic Survey of India 2022: Here are the key takeaways

 The Economic Survey has projected an 8-8.5 percent growth rate for the Indian economy in the 2022-23 fiscal year (April 2022 to March 2023). This compares to the 9.2 percent GDP expansion projected by the National Statistical Office (NSO).

Finance Minister Nirmala Sitharaman presented the Economic Survey on January 31 that details the state of the economy ahead of the government's Budget for the fiscal year beginning April 1, 2022.

The Economic Survey 2021-22 details the state of different sectors of the economy as well as reforms that should be undertaken to accelerate growth.

Here are the key takeaways from Economic Survey 2022:

- As per the Survey, India's economic response to devastation caused by pandemic has been supply-side reforms rather than demand management.

- Growth in FY23 to be supported by widespread vaccine coverage, gains from supply-side reforms and easing of regulations.

-The Survey says that the Indian government's capital expenditure grew by 13.5 percent on-year in April to November, with a focus on infrastructure-intensive sectors like roads and highways, railways, and housing and urban affairs. The total capital expenditure rose to Rs 2.74 lakh crore in April-November 2021-22 as compared to Rs 2.41 lakh crore a year ago.

- The Indian banking system appears to have weathered the pandemic shock well even if there is some lagged impact in the pipeline, said the 2022 Economic Survey.

- Robust export growth and availability of fiscal space to ramp up capital spending to support growth next fiscal.

- Government finances to witness consolidation in 2021-22, after uptick in deficit and debt indicators during pandemic year FY21.

- As per the Survey, India's economic response to devastation caused by pandemic has been supply-side reforms rather than demand management.

- Gross Fixed Capital Formation (GFCF) is expected to see strong growth of 15 percent in 2021-22 and achieve full recovery of pre-pandemic level.

- A number of conventional and unconventional measures were taken to maintain the orderly market conditions to ensure that the increased financial needs of the governments are met smoothly, while keeping in mind the major objectives of cost minimization, risk mitigation and market development. Supported by these measures, the weighted average cost of the Government on dated securities during 2020-21 was at a 17-year low of 5.79 percent, despite a 141.2 percent jump in net market borrowings.

- Economic Survey 2021-22 warned India to be wary of imported inflation. The Survey said as the wholesale price-based inflation (WPI) during the current financial year, in contrast to the trends observed in the Consumer Price Index (CPI) inflation, has shown an increasing trend, and remained high.

- The Survey calls for improving productivity of small and marginal farmers through small holding farm technologies.

- The Survey states that climate finance will remain critical to successful climate action for India to achieve its Net Zero Carbon Emission target by 2070.

- Crop diversification towards oilseeds, pulses and horticulture needs to be given priority, the Survey mentions.

- Encouraging farmers to shift from cultivation of rice and wheat to pulses and oilseeds would help ensure that the country is self-reliant in pulses and oilseeds and also assist in reducing import dependence.

- Vaccination is not merely a health response but is critical for opening up the economy, particularly contact-intensive services. Therefore, it should be treated for now as a macro-economic indicator.

- The Economic Survey also warned that the new restrictions introduced across the globe due to the spread of the Omicron variant of coronavirus pose a threat to tourism as well as domestic passenger traffic in the near term.

Principal Economic Advisor Sanjeev Sanyal, while addressing the press, said agriculture sector, "not surprisingly, was least affected by lockdowns of various kinds". This sector grew in even 2020-21 and again in 2021-22. Industrial sector, on other hand, did go through a contraction and now it is about 4.1 percent above pre-pandemic levels, he added.

- India's overall GVA grew by 8.6 percent on year in 2021-22, after contracting 6.2% in 2020-21, PEA Sanjeev Sanyal said.- Sanyal added that India now has $636 billion worth of forex reserves, one of the highest in the world, and equivalent to 13.2 months of imports.

- The principal economic advisor further said said India's spending on social services has risen to around Rs 20 lakh crore in 2021-22, whereas, the spending on education and health has risen to Rs 6.97 lakh crore and Rs 4.72 lakh crore in the same period, respectively.