Budget 2022: Economic Survey pegs India's GDP growth at 8-8.5% for FY23
Premium- The Economic Survey 2021-22 was tabled by Finance Minister Nirmala Sitharaman in Lok Sabha today, while the Budget will be presented tomorrow at 11 am.
The Economic Survey has projected a growth rate of 8-8.5% for the next financial year ending March 2023, according to the official document.
The Economic Survey 2021-22 was tabled by Finance Minister Nirmala Sitharaman in Lok Sabha today, while the Budget will be presented tomorrow at 11 am.
All macro indicators indicated the economy was well placed to face challenges, helped by pick ups in farm and industrial output growth, said the report.
Growth 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 survey said.
The survey expectations for the next fiscal year are conservative compared to the 9% expansion seen by IMF.
“The projection is based on the assumption that there will be no further debilitating pandemic related economic disruption, monsoon will be normal, withdrawal of global liquidity by major central banks will be orderly," according to the survey. It also depends on oil price being in the range of $70-$75 a barrel and global supply chain disruptions easing.
For the current financial year, the survey projects a growth rate of 9.2%, led by 11.2% growth in industrial sector and 8.2% growth in services sector. The agriculture sector growth is seen at 3.9% in FY22.
The Economic Survey 2022-23, details the state of different sectors of the economy as well as reforms that should be undertaken to accelerate growth.
Indian economy has gained momentum during the July-September period, inching gradually back to normalcy as coronavirus related disruptions eased significantly in the aftermath of a devastating second wave.
Gross domestic product (GDP) for the second quarter of the financial year grew by 8.4% from a year ago, one of the fastest rates among major economies..
According to the first advance estimates, India's GDP may grow 9.2% in the current financial year ending March 2022.
The pre-budget Economic Survey, which is tabled in Parliament ahead of the Union Budget to present the state of the economy and suggest policy prescriptions, quite often misses on the GDP forecast, sometimes by a significant margin.
The last survey, presented in January 2021 amid the Covid pandemic, had projected the economic growth for 2021-22 at 11%.
However, India's statistics ministry has estimated the economic growth at only 9.2% for the current fiscal. The economy had contracted by 7.3% during 2020-21 as against the projection of 6-6.5% in the Economic Survey presented in Parliament months before the outbreak of the Covid pandemic in 2020.
Economic activities were severely impacted as India imposed a strict lockdown in the latter part of March 2020 to check the spread of the virus. The government and the Reserve Bank of India rolled out several measures to support the economy.
(With inputs from agencies)
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