FM tables Economic Survey 2021-22, pegs India's growth at 8-8.5% in FY23

31 Jan 2022 , 01:10 PM

Finance Minister Nirmala Sitharaman has tabled the country’s Economic Survey 2021-22 today. The latest Survey pegs India’s economic growth at 8-8.5%  in the year 2022-23.

The projection in the Survey is lower from the analysts and experts anticipations of 9-9.5% growth estimates in the next fiscal year.

The latest economic survey has taken into consideration India’s growth, fiscal stance, state of banking, pandemic impact among other key factors.

However, as per the annual survey, advance estimates suggest that the Indian economy is expected to witness a real GDP expansion of 9.2% in the period 2021-22 after the contraction in the previous year.

Meanwhile, the Economic Survey 2021-22, projects 3.9% growth in the agriculture sector, an 11.8% growth rate in the industrial sector for FY22. The forecast for the services sector is a growth of 8.2% in the current fiscal.

The Economic Survey 2021-22 outlined that the growth will be aided 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.

Notably, the growth 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, as per the latest survey document. Further, the projection is based on global crude oil prices staying between $70-75 per barrel.

In the survey, it was announced that the government has fiscal space to ramp up CAPEX going forward. Further, higher forex reserves, FDI, rising exports provide a buffer against liquidity tapering.

The Survey stated that the strong revival in revenues in FY22 means that the government has fiscal space to provide additional support if necessary.

According to the Survey, macroeconomic indicators indicate that the economy is well poised to take on FY23 challenges. However, it said that the recovery from the semiconductor supply chain disruptions will be a slow and costly affair.

As per the Survey, a wider current account deficit in H2 is expected to be within the manageable limit. Also, robust eco growth, buoyant revenue to support adhere to medium-term fiscal goals.

The Survey also took note of the banking system being well-capitalised and the decline in NPA overhang.

After the presentation of the Economic Survey by the FM, the newly appointed CEA Dr V. Anantha Nageswaran will address a press conference at around 3.45  pm.