Chief Economic Advisor (CEA) K V Subramanian.India’s economy is likely to rebound with a 11 per cent growth in the next financial year as it makes a ‘V-shaped’ recovery after witnessing a pandemic-led carnage, the Pre-Budget Economic Survey said on Friday. The survey was tabled by Union Finance Minister Nirmala Sitharaman in Parliament.
Chief Economic Adviser K V Subramanian, the architect of the document, also addressed a press conference on the state of the economy. “India’s pandemic response, focused on saving lives and livelihoods, restricted the Covid-19 spread by 37 lakh cases and saved more than 1 lakh lives,” he said.
This morning, while addressing members of both Houses of Parliament, President Ram Nath Kovind highlighted how the country had come together over the last year to overcome several adversities, including the Covid-19 pandemic, floods, earthquakes, major cyclones, locust attacks and bird flu.
Speaking about the violence on Republic Day, President Kovind called it “very unfortunate” and said, “The Constitution that gives us the right to freedom of expression, is the same Constitution that teaches us that law and rule should be followed equally seriously.”
President Kovind’s customary address ahead of the Budget Session was boycotted by Opposition leaders of 18 parties, who skipped the event in solidarity with farmers protesting at Delhi’s borders against the three farm laws.
Meanwhile, Prime Minister Narendra Modi, in a statement to the media ahead of the Budget session, called for debate and discussion in Parliament. “The coming decade is vital for India’s progress. We have to remember the vision and dreams of the greats who fought for our nation’s freedom. Let there be detailed debate and discussions on the floor of Parliament,” he said.
The Budget session will be held in two parts, from January 29 to February 15 and from March 8 to April 8. There will be a total of 33 sittings. The Opposition is likely to target the government over a number of issues in Parliament including the pandemic economy, stand off with China at the Line of Actual Control and the purported WhatsApp chats between Republic TV Editor-in-Chief Arnab Goswami and former CEO of BARC Partho Dasgupta.
Government should avoid the temptation to levy new cess. Tax relief, in fact, could spur spending, give boost to economy, Hitesh D Gajaria writes. Read the full column here.
Following are the highlights of Economic Survey 2020-21, tabled in Parliament by Finance Minister Nirmala Sitharaman on Friday.
– “Real growth rate for FY21 is taken as -7.7 per cent (MoSPI) and the real growth rate for FY22 is assumed as 11.5 per cent based on IMF estimates,” Economic Survey 2020-21 document said.
– The survey projected a V-shaped recovery: While the lockdown resulted in a 23.9 per cent contraction in GDP in Q1, the recovery has been a V-shaped one as seen in the 7.5 per cent decline in Q2 and the recovery across all key economic indicators.
– Despite the hardhitting economic shock created by the global pandemic, India is witnessing a V-shaped recovery with a stable macroeconomic situation aided by a stable currency, comfortable current account, burgeoning forex reserves, and encouraging signs in the manufacturing sector output.
– KV Subramanian said that India was the only country to announce structural reforms. “India focused on saving lives and livelihoods; took short term pain for long term gain. Recognized that GDP growth will recover, lost human lives cannot be brought back,”
-He said that Economic Survey calls for counter-cyclical fiscal policy to be an important point of emphasis, where the government steps in when the private sector does badly and steps back when the private sector does well.
The government's annual Economic Survey on Friday strongly defended new farm laws, saying they herald a new era of market freedom which can go a long way in improving lives of small and marginal farmers in India.
These legislations were designed "primarily" for the benefit of "small and marginal farmers", which constitute around 85 per cent of the total number of farmers and are the biggest sufferer of the "regressive" APMC-regulated market regime, the survey said.
The pre-budget document defended the farm laws in the backdrop of long-running farmers' agitation at various borders of the national capital seeking repeal of these legislations expressing concern that they are pro-corporate and could weaken government-regulated mandis, also called Agriculture Produce Marketing Committees (APMCs). (PTI)
India's economy is likely to rebound with a 11 per cent growth in the next financial year as it makes a 'V-shaped' recovery after witnessing a pandemic-led carnage, the Pre-Budget Economic Survey said on Friday. The Gross Domestic Product (GDP) is projected to contract by a record 7.7 per cent in the current fiscal ending March 31, 2021.
India witnessed its last annual contraction of 5.2 per cent in the fiscal year 1979-80.
The Economic Survey 2020-21 said the agriculture sector is the only silver lining while services, manufacturing and construction were most hit by the lockdown that was imposed to curb the outbreak of the COVID-19 pandemic. (PTI)
"Even without lockdown, COVID-19 pandemic would have created a significant economic impact. But what the lockdown did ensure is help a coordinated response, enabling 'saving lives and livelihoods'," Chief Economic Advisor KV Subramanian said.
"Our team has done an analysis of what could have been vs what happened. Both on COVID-19 cases and deaths, India has done really well," informs CEA KV Subramanian.
"Chapter 1 of the Economic Survey is about India's policy response to #COVID19, Saving Lives And Livelihoods, amidst a once-in-a-lifetime crisis," Chief Economic Advisor KV Subramanian says.
Chief Economic Advisor KV Subramanian has launched the Economic Survey 2020-21 which has been tabled in Parliament today.
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After an estimated 7.7 per cent contraction in 2020-21, the Finance Ministry’s Economic Survey projects that India’s real GDP would record a growth of 11 per cent in 2021-22. The nominal GDP growth has been estimated at 15.4 per cent, implying an assumption of 4.4 per cent inflation during the year. On what basis has the 11 per cent growth projection been made? Click here to read.
Press Conference by Chief Economic Advisor on the Economic Survey 2021.
According to the Economic Survey 2020-21, "Real growth rate for FY21 is taken as -7.7 per cent (MoSPI) and real growth rate for FY22 is assumed as 11.5 per cent based on IMF estimates."
Union Finance Minister Nirmala Sitharaman has tabled in Economic Survey 2021 in Lok Sabha, and the House has been adjourned till Monday, the beginning of the Budget session. Chief Economic Adviser K V Subramanian will soon address a press conference on the Survey.
Rajya Sabha MP and Trinamool Congress leader Derek O'Brien was among the Opposition leaders who didn't attend President Ram Nath Kovind's address in Parliament this morning.
Union Minister Ravi Shankar Prasad is addressing the media. He attacks the Opposition for skipping the President's address. "What kind of precedence are they creating? It's unfortunate, this arrogance is not good. They think only they have the right to rule... The President is entitled to our respect. It’s a matter of great regret today that the Opposition boycotted his speech."
He also says an AAP member tried to push his way into the House and create disruptions during the address. "We were also in the Opppsition, but never did this," says Prasad.
There is no set format for the President’s speech. The Constitution states that the President shall “inform Parliament of the cause of the summons”. During the making of the Constitution, Prof K T Shah wanted the President’s address to be more specific. He suggested that the language be changed to specify that the President shall inform Parliament “on the general state of the Union including financial proposals, and other particular issues of policy he deems suitable for such address”. Read more on the history & precedent of President’s address in Parliament
Members of Parliament will reconvene at 3 pm after which the Economic Survey will be tabled. After this, Chief Economic Advisor K V Subramanian will address a press conference around 3.30 pm.
Vice-President Venkaiah-Naidu is now reading out some parts of the President's speech in English. Here are some of the key points President Kovind made:
Referring to the abrogation of Article 370, which granted special status to Jammu and Kashmir, and the construction of Ram Temple, President Kovind says the country has done many tasks which were once considered difficult.
"India supplied essential medicines to more than 150 countries along with meeting the domestic needs of the country. India is committed to ensuring vaccine availability globally... The Vande Bharat Mission, which is the largest such campaign in the world, is being appreciated. India has brought back nearly 50 lakh Indians from all parts of the world, as well as more than one lakh foreign nationals to their own countries," says President Kovind.