Yes Bank comments on Economic Survey

31 Jan 2022 , 06:15 PM

The Economic Survey painted India in an optimistic light with good macro-stability indicators touted as a buffer against the uncertain global environment. The response of the policy makers to COVID-19 has been mostly in the form of supply-side measures rather than a Keynesian demand push. A flexible policy approach has enabled steady the ship and also provide India with a bounce pad to emerge back on a strong footing. A stronger bounce to private investments is envisaged with healthier balance sheets — both for corporates and banks.

The survey highlighted that India is well placed to achieve an 8.0-8.5% real growth in FY23 even as tackling the imperatives of high global energy prices remains a critical challenge. Given this high real growth, it remains to be seen what nominal growth is assumed for drafting the Budget as this will have an implication on the revenue generation assumptions.

The author of this article is Indranil Pan, Chief Economist – YES BANK

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