New Delhi: Union Finance Minister Nirmala Sitharaman during a press conference at National Media Centre, in New Delhi, Tuesday, Jan. 18, 2022. (PTI Photo)Economic Survey 2022 Highlights: Finance Minister Nirmala Sitharaman on Monday tabled the Economic Survey 2021-22 in Lok Sabha. India will retain its tag of the world’s fastest-growing major economy as the pre-Budget Economic Survey forecast an 8-8.5 per cent GDP growth in the fiscal year starting in April, saying it has the fiscal space to do more to support the economy. According to a PTI report, India is poised to wrest the title world-beating economy tag this fiscal with a projected growth of 9.2 per cent, and the widespread vaccine coverage, supply-side reforms and easing of regulations are going to support it in the next.
The Economic Survey noted that economic activity has recovered to pre-pandemic level. It further added that the economy is well placed to take on challenges in 2022-23. Robust export growth and availability of fiscal space to ramp up capital spending to support growth next fiscal.
Addressing the media, Principal Economic Advisor Sanjeev Sanyal said that exports have been a major driver of growth and they are now very significantly above the pre-Covid levels but imports have also been very strong. Overall, the GDP is 1.3 per cent above where it was pre-pandemic.
Delhi has replaced Bengaluru as the startup capital of India as the national capital added over 5,000 startups between April 2019 and December 2021, according to the Economic Survey 2021-22. The survey, which was tabled in Parliament Monday, said 4,514 startups were added in Bengaluru during the period. With a total of 11,308 startups, Maharashtra has the highest number of recognised startups in the country. (PTI)
The government will take a balanced view on the issue of regulation of cryptocurrencies as they have implications on the country's financial stability, Principal Economic Adviser Sanjeev Sanyal said on Monday. Currently, there are no particular regulations or any ban on use of cryptocurrency in the country.
The issue of cryptocurrency has not been covered in the Economic Survey 2021-22, Sanyal said in an interaction with media on the Survey tabled in Parliament by Finance Minister Nirmala Sitharaman earlier in the day. "As you know, this is a matter of some debate, both inside the government, in the Ministry of Finance, and even in Parliament. So, this is something that is currently in discussion," he said. (PTI)
Congress leader Rahul Gandhi on Monday alleged the Narendra Modi government sees high tax collection as its big achievement but does not see the pain of the people who are troubled by the tax burden.
The Economic Survey flagged the risks posed by the Covid-19 pandemic for the economic recovery from surge in global inflation, shortage of inputs such as semiconductors, with supply-side disruptions being exacerbated by recovery in demand.
It stated that supply-chain breakdowns caused an interruption of the economy’s supply-side which also squeezed demand, but it is not correct to see the pandemic related economic slowdown as just a demand problem. Read More
The demand for work under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) had peaked during the nationwide lockdown but is still higher than pre-pandemic levels, according to the Economic Survey 2021-22 tabled by Finance Minister Nirmala Sitharaman in the Lok Sabha on Monday.
The survey said, “An analysis of the latest data on demand for work under MGNREGS suggests the following trends in the rural labour market: (i) MGNREGS employment peaked during the nation-wide lockdown in 2020 (ii) the demand for MGNREGS work has stabilised after the second Covid wave; (iii) aggregate MGNREGS employment is still higher than pre-pandemic level…” Read More
Despite a projected 9.2 per cent growth in GDP in FY22 to above pre-pandemic levels, the Indian economy continues to face a slew of structural challenges that existed prior to the pandemic and new challenges brought on by Covid-19.
Inflation is the most important headwind.
The Survey notes that supply chain disruptions and slow economic growth have contributed to an increase in inflation. The withdrawal of stimulus in developed economies in the upcoming fiscal is likely to affect capital flows into the country. Click here to read
Inflation during 2021 reflected the disruptions caused by the lockdown and supply chain disruptions. Since things opened up this year, CPI came back into the tolerance band and remains so at 5.6 per cent, said Principal Economic Advisor Sanjeev Sanyal.
The Agriculture sector was least affected by the various lockdowns. This sector grew even in 2020-21 and again in 2021-22. Industrial sector did go through a contraction and now it is about 4.1 per cent above pre-pandemic levels, said Principal Economic Advisor Sanjeev Sanyal
The segment of service sector that includes tourism, travel, and hotels is still 8.5 per cent below where it was before the pandemic. It is a sector that is still impacted, said Principal Economic Advisor Sanjeev Sanyal.
Sanyal said that there has been a sharp increase in both tax as well as non tax revenue. He said that we remain in uncertain times and oil prices surged in just last few days.
He noted that we have to see whether macro economic indicators can provide a buffer through this recovery process.
The economy this year is estimated to grow 9.2 per cent, Principal Economic Advisor Sanyal said adding that we have now grown past the pre-pandemic levels. He said that the overall GDP is 1.3 per cent above the pre-pandemic levels.
Revival of economic activity in FY22 to pre-pandemic levels, said Principal Economic Advisor Sanjeev Sanyal
CEA V Anantha Nageswaran said that the Economic Survey 2022 reflects the four-pronged approach taken by the government to tackle the Covid-19 pandemic.
CEA Nageswaran hands the stage to Principal Economic Advisor Sanjeev Sanyal to go through the Economic Survey
Chief Economic Advisor Nageswaran says Economic Survey 2021-22 compiled by Sanjeev Sanyal and his team of advisors
Chief Economic Advisor (CEA) V Anantha Nageswaran addresses the media following the Economic Survey 2021-22 got tabled in the Parliament.
Setting the tone for the Union Budget 2022-23, to be presented on Tuesday, the Economic Survey 2021-22 tabled in the Parliament on Monday stressed on the need for the government to provide a buffer against stresses such as the uncertainty in the global environment, the cycle of liquidity withdrawal by major central banks, etc.
Here are five significant pointers from the Survey that set the stage for the upcoming Budget.
"The economic survey presents an optimistic and confident picture of the emerging economic scenario. The assertion that "there is fiscal space for capex" reflects confidence in containing the fiscal deficit thanks to the revenue buoyancy of FY22. GDP growth of 9.2% for FY22 is on expected lines. The Survey is confident of achieving a GDP growth rate of 8 to 8.5% for FY23 driven by supply side reforms, capex and exports. In brief, an optimistic document reflecting confidence in the emerging scenario. If the growth projections for FY23 and expected revenue buoyancy are achieved, the government will be in a position to address the challenges being faced by the economy."
The Economic Survey 2021-22 has projected the economy to grow at 8.0-8.5 per cent in 2022-23, thereby moderating the growth forecast from 9.2 per cent expansion for 2021-22 outlined by the National Statistical Office (NSO) in its first advance estimates of Gross Domestic Product (GDP).
Last year’s Survey had projected real GDP to record a 11 per cent growth in 2021-22, post a 7.3 per cent contraction in 2020-21. While this year’s growth comes on a low base year economic output, the expansion next year has to be seen from the recovery levels in economic output. Click here to read
Govt finances to witness consolidation in 2021-22, after uptick in deficit and debt indicators during pandemic year FY21: Survey.
(PTI)
India transformed from being among 'Fragile Five' nations to 4th largest forex reserve, giving policy room for manoeuvring: Survey.
(PTI)
Climate finance will remain critical to successful climate action for India to achieve its net zero carbon emission target by 2070: Survey.
(PTI)
Survey calls for improving productivity of small, marginal farmers through small holding farm technologies.
(PTI)
Crop diversification towards oilseeds, pulses and horticulture needs to be given priority: Economic Survey.
(PTI)
Robust export growth and availability of fiscal space to ramp up capital spending to support growth next fiscal: Economic Survey.
(PTI)
Private sector investment to pick with financial system in good position to provide support to revival of economy: Economic Survey.
(PTI)
India forecast economic growth of 8% to 8.5% for the coming fiscal year that starts in April, down from estimated 9.2% growth in the current fiscal year, its annual economic survey showed on Monday.
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, which was tabled by finance minister Nirmala Sitharaman in parliament ahead of the annual budget on Tuesday.
(Reuters)
Lok Sabha adjourned till 11 am on February 1, 2022.
Finance Minister Nirmala Sitharaman tables Economic Survey 2022 in Lok Sabha.
Tomorrow, February 1, Finance Minister Nirmala Sitharaman will present the Union Budget for 2022-23.
At one level, the Union Budget is nothing but the annual financial statement of the central government — how much did it earn (and from what sources) in the financial year that is ending, how much did it spend (and on what), and what it plans to do in the next financial year with the revenues it expects to raise. Click here to read
Lauding India’s fight against the novel coronavirus, President Ram Nath Kovind, while addressing the Budget Session of the Parliament, said: “India’s capability to fight Covid-19 was evident in its vaccination program. In less than a year, we made a record of administering over 150 crore doses of vaccine. Today, we’re one of the leading nations in the world when it comes to the number of doses given.” Click here for Live Updates
Earlier this month, National Statistical Office (NSO) released its first advance estimates where it pegged India’s gross domestic product (GDP) growth at 9.2 per cent in the current financial year or 2021-22. In 2020-21, a national lockdown forced by the Covid-19 onslaught had left the economy battered with GDP contracting 7.3 per cent. Click here to read
President Ram Nath Kovind commences the Budget session as he begins his address to the joint session of Parliament
CEA V Anantha Nageswaran will address a press conference at 3:45 pm after Finance Minister Nirmala Sitharaman presents Economic Survey 2021-22 in Parliament, finance ministry has informed in a tweet.
With the Economic Survey to be presented on Monday, and the Union Budget for 2022-23 on Tuesday, the Government announced the appointment of Dr V Anantha Nageswaran as its Chief Economic Advisor (CEA), adding in a statement that he has assumed charge.
Economist Nageswaran has been an author, teacher and consultant and has taught at several business schools and institutes of management in India and in Singapore, the Union Finance Ministry said in a statement. He has written articles for The Indian Express, including one in which he listed the benefits of structural reforms set in motion on November 8, 2016, through demonetisation. Click here to read