Finance Minister Nirmala Sitharaman presented the Economic Survey on January 31 detailing the state of the economy ahead of the government’s budget for the fiscal year beginning April 1, 2022.
CEA Dr. V. Ananth Nageswaran will address a press conference in New Delhi today at 3:45 pm.
Ahead of the Union Budget 2022-23, Indian industry has urged the government to offer incentives to create jobs, including special exemptions. Production Linked Incentives (PLI) Schemes Already announced.
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Sensex, Nifty up 1.5% in mid-session
Equity benchmarks Sensex and Nifty jumped over 1.50 per cent in mid-session deals on Monday after the Economic Survey 2021-22 projected a growth rate of 9.2% for 2021-22. -PTI
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Salient Features of Economic Survey
The Economic Survey for 2021-22 tabled by Finance Minister Nirmala Sitharaman in the Lok Sabha expects India’s GDP to grow at 9.2% this year, in line with recent official estimates, and 8% to 8.5% in 2022-23.
Emphasizing that India’s overall macro-economic stability indicators suggest that the economy is well prepared to meet the challenges of 2022-23, the survey argued that this is ‘one of the reasons’ of the government’s unique response strategy. which ‘committed to a pre-emptive response’ but chose to ‘use a safety-net for the vulnerable sections’ on the basis of the information.
“Growth in 2022-23 will be supported by broader vaccine coverage, benefits from supply-side reforms and easing of regulations, strong export growth, and availability of fiscal space to increase capital spending. The year ahead also looks well prepared. – Private sector investment in a good position with the financial system to provide support for the revival of the economy,” the survey estimated.
The survey’s 8%-8.5% GDP growth forecast for the coming year is based on the assumption that ‘there will be no further debilitating pandemic-related economic disruption, the monsoon will be normal, global liquidity exits by major central banks will be largely settled,’ Oil prices will be in the US$70-$75/bbl range, and global supply chain disruptions will be less frequent during the year.
Inflation has reappeared as a global issue in both advanced and emerging economies. India needs to be wary of imported inflation, especially from high global energy prices,” the survey said, even suggesting that wholesale price inflation in recent months is in double digits. will be ‘similar’.
The survey acknowledges the risks that emerged at the time it was being written, such as the new COVID-19 with the Omicron version around the world, a surge in inflation in most countries, and liquidity being introduced by major central Withdrawal cycle bank.
It highlighted that India’s macro-economic stability indicators on the external front, fiscal front as well as financial sector health and inflation, are well prepared to meet the challenges of 2022-23.
Strong export growth and availability of fiscal space to accelerate capital expenditure to support growth in the next fiscal.
The government finances to see consolidation in 2021-22, following a rise in deficit and debt indicators during the pandemic year FY21.
India has turned into the fourth largest foreign exchange reserve among the ‘Fragile Five’ countries, the survey said, leaving policy room for maneuver.
India’s investment to GDP ratio reaches 29.6% in 2021-22, highest level in seven years, says survey, accelerating this capital formation ‘virtuous cycle of growth through capex and infrastructure spending’ On doing so has been held responsible for the policy of the government. Capital formation in the economy.
Citing record corporate profits in recent quarters and high mobilization of risk capital by firms, “While the recovery of private investment is still at an early stage, there are several signs that indicate that India is poised for strong investments.” “
Criticizing that the ‘Atmanirbhar Bharat approach’ marks a ‘return to old school protectionism’, the survey stated that “…
While the 9.2% growth forecast for 2021-22 suggests that the economy will rise above the pre-pandemic levels of 2019-20, the survey acknowledged that private consumption and segments such as travel, business and hotels are yet to recover. Has happened. “The stop-start nature of repeated pandemic waves makes it particularly difficult for these sub-sectors to gather momentum,” it said.
The survey calls for improving the productivity of small, marginal farmers through small-scale farming technologies. The survey said that priority should be given to crop diversification towards oilseeds, pulses and horticulture.
Parliament
Finance Minister presented the Economic Survey 2022
Finance Minister Nirmala Sitharaman presented the Economic Survey in the Lok Sabha after the President’s address.
The Economic Survey 2021-22 details the state of various sectors of the economy as well as the reforms to accelerate growth.
The Gross Domestic Product (GDP) has declined by 7.3 percent in 2020-21.
The survey focuses on supply-side issues to improve the resilience of the Indian economy.
(with inputs from agencies)
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