On Monday, Nirmala Sitharaman tabled Economic Survey 2021-2022 in Parliament. The date was 31 January 2022. According to the survey, India’s Finance Minister expects the Indian economy to grow by 8-8.5% in the upcoming financial year. Let’s look at 5 key points to take away from Economic Survey 2021-22.
Key Highlights of Economic Survey 2022
This Economic Survey 2021-22 has exposed characteristics of different sectors of the economy. These insights are helpful to predict future growth for the sector. Moreover, some of the macro-economic stability indicators show that India is in a position to take on the challenges of FY 2022-2023. Here are 5 crucial points to keep in mind from Economic Survey 2021-22.
Revival in Revenue
In this financial year 2022, India’s revenues have taken a robust revival. A solid revenue base means the government has the capacity to provide for contingencies. Moreover, fiscal support from the government’s side is possible thanks to the High Foreign Reserves, high exports, and Foreign Direct Investment. Therefore, there is no danger against liquidity tampering.
Estimation for GDP
Economic Survey 2022-23 estimates an 8-8.5% GDP (gross domestic product) growth rate for the Indian economy. This projection is for the fiscal year beginning on 1 April 2022. Compare this with NSO’s (National Statistical Office) prediction of 9.2% GDP expansion for the ongoing financial year. Moreover, it is noteworthy that the GDP growth rate diminished in 2020-2021 by 7.3%.
Agriculture continues to be the safety net of the Indian economy, as, despite the prevalent pandemic, it did not cease to provide the necessary growth. As a result, this government expected agriculture and allied sectors to grow by 3.9% in 2021-22. The sector grew to 3.6% in 2020-2021.
Services and Industrial Sector
Moreover, the COVID-19 pandemic has badly hit the services sector and negatively impacted the same. Economic Survey expects this sector to grow by 8.2% this FY following a contraction in the previous fiscal by 8.4%. For FY 2022, the industrial sector is projected to grow at 11.2%.
This Economic Survey says that the total consumption will grow by 7% in 2021-22 because of government spending in a significant way.
Apart from these details, the government also disclosed a myriad of other facts and figures. However, time will only tell if these economic predictions will hold true or not.
Frequently Asked Questions
Will Air India be privatised?
Ans. According to this Economic Survey, the privatisation of Air India will lead to gaining disinvestment proceeds.
Which city is the start-up capital of India?
Ans. Economic Survey 2021-22 reveals that Delhi is the start-up capital of India. The city beat Bengaluru.
Who is the Principal Economic Advisor?
Ans. Sanjeev Sanyal is India’s Principal Economic Advisor.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.