Comments
Aided by strong capex and export push, the Indian economy is projected to grow 8-8.5 per cent in 2022-23, the Economic Survey for 2021-22 said on Monday. The Survey, which was tabled in Lok Sabha by Finance Minister Nirmala Sitharaman, said that the projection is based on key assumptions that include global crude oil prices at $70-75 per barrel, no further debilitating pandemic-related economic disruptions, a normal monsoon, an orderly withdrawal of global liquidity by major central banks, and an easing of global supply-chain disruptions over the coming year. The Finance Minister also tabled a separate volume of statistical tables. For the current fiscal, the Economic Survey has pegged growth at 9.2 per cent.
Related Stories
Full Text | Economic Survey 2021-22
Here is the full text of the Economic Survey 2021-22The Economic Survey said that growth in 2022–23 will be supported by widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth and availability of fiscal space to ramp up capital spending.
The year ahead is also well poised for a pick up in private sector investment with the financial system in a good position to provide support to the revival of the economy, it added. The economic growth projection for 2022–23 is comparable with the World Bank and Asian Development Bank‘s latest forecasts of real GDP growth of 8.7 per cent and 7.5 per cent respectively.
According to the IMF‘s latest growth projections released on January 25, India’s real GDP will grow at 9 per cent in both 2021–22 and 2022–23 and 7.1 per cent in 2023–24. IMF’s estimates make India the fastest growing major economy in the world, the survey added.
Fiscal target
The Economic Survey also highlighted that government will comfortably meet fiscal target this year while maintaining support. Strong rebound in government revenues to help meet fiscal deficit target, it added. The Survey noted that the banking system was well capitalised and the NPA overhang has declined. The Survey highlighted that the resilience of India’s external sector augurs well for growth revival. Also, the economic shock of COVID-19 has been weathered well by banking system. The Survey also said that in the next ten years Railways sector will see a very high level of capital expenditure of over ₹2 lakh crore per annum.
Central theme
The economic survey sets out to explain the alternative “agile” approach that informed India’s economic response to the COVID-19 shock. This framework is based on feedback loops, real-time monitoring of actual outcomes, flexible responses and safety net buffers. Planning matters in this framework but mostly for scenario analysis, identifying vulnerable sections and understanding policy options rather than as a deterministic prediction of the flow of events. The last economic survey did briefly discuss this approach but this time it is a central theme, it added.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.