India becomes fastest growing economy; inflation major risk: Economic Survey
The economic survey was tabled by Union finance minister Nirmala Sitharaman after President Ram Nath Kovind addressed a joint sitting of both Houses of Parliament.
Indian Union finance minister Nirmala Sitharaman on Monday tabled the economic survey for the 2022-2023 financial year that forecast a nationwide growth of 8-8.5 per cent. The prediction, which is down from 9.2% projected in the current fiscal, comes at a time when India is fighting a third wave of the coronavirus disease (Covid-19) and inflation.
"This economic survey sets out to explain the alternative 'agile' approach that informed India's economic response to the Covid-19 shock," Sanjeev Sanyal, principal economic adviser of the finance ministry and lead author of the survey, said.
The economic survey further stated the economy was likely to see a "real GDP expansion of 9.2 per cent in 2021-2022" after contracting in the preceding financial year.
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Here are 10 key points of forecast in the economic survey:
1. According to the survey, India is well-placed to take on challenges in the forthcoming financial year.
2. India may become the world's fastest growing economy, dethroning China.
3. An economic boost of 8-8.5 per cent has been forecast for the 2022-2023 fiscal. This will be driven by large-scale vaccine coverage, robust export growth and easing of regulations, among other factors.
4. The survey said climate finance will continue to be vital for India to attain its net zero carbon emission goal by 2070.
5. Private sector investment has been predicted to pick up as the financial system is in "good position to provide support" to the economic recovery.
6. The survey said crop diversification towards "oilseeds, pulses and horticulture" needs to be given priority.
7. The Indian government's finances will see consolidation in 2021-22, after an "uptick in deficit and debt indicators during pandemic year FY21," the survey said.
8. India has transformed from being among 'fragile five' countries to the fourth largest forex reserve, thereby providing "policy room for manoeuvring."
9. The survey said increasing capital expenditure by the government on infrastructure and an uptick in the housing cycle have been behind the recovery of the construction sector. "Statistics provided by RBI and leading real estate companies show significant revival in the Indian residential real market in 2021 in terms of growth of sales, prices and new launches," it added.
10. The economic survey called for the betterment of the productivity of small and marginal farmers through "small holding farm technologies".
