Finance Minister Nirmala Sitharaman on Monday presented the Economic Survey that details the state of the economy ahead of the government’s Budget for the fiscal year beginning April 1, 2022. It projects an 8-8.5 per cent growth rate for the Indian economy in 2022-23 fiscal year (April 2022 to March 2023). This compares to 9.2 per cent GDP expansion projected by the National Statistical Office (NSO).
The government said that GDP growth in 2021-22 would be at 9.2 per cent, adding that economic activity has recovered to pre-pandemic level.
“Indian economy in good position to witness GDP growth of 8-8.5 pc in 2022-23,” the Economic Survey said. “Economy well placed to take on challenges in 2022-23,” it added.
“Growth in FY22-23 to be supported by widespread vaccine coverage, gains from supply-side reforms and easing of regulations,” the Survey said.
The Survey said that India’s economic response to the devastation caused by pandemic has been supply-side reforms rather than demand management.
Robust export growth and availability of fiscal space to ramp up capital spending to support growth next fiscal, it said. The Survey also said that the private sector investment will pick with the financial system in good position to provide support to the revival of the economy.
The Survey added that government finances will witness consolidation in 2021-22, after uptick in deficit and debt indicators during the pandemic year.
“India transformed from being among ‘Fragile Five’ nations to 4th largest forex reserve, giving policy room for manoeuvringm,” it said.
The Economic Survey 2021-22, details the state of different sectors of the economy as well as reforms that should be undertaken to accelerate growth. The gross domestic product (GDP) contracted by 7.3 per cent in 2020-21.