Economic Survey 2021- Key Highlights

Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2020-21 in the Lok Sabha on January 29, 2021.

Highlights

  • The Economic Survey 2021 presented an estimation of the progress that the Indian economy has made in the last 12 months.
  • The survey highlights that the real growth rate for Financial Year 2021 was taken as -7.7% as per MoSPI while the real growth rate for Financial Year 2022 is assumed was taken as 11.5 % on the basis of estimates provided by the International Monetary Fund (IMF).
  • It further highlights that, the gross domestic product (GDP) was contracted by a record 23.9 per cent in April-June 2020 while it contracted by 7.5 percent in the second quarter.
  • For the full fiscal, the survey projected a contraction of 7.7 per cent while a V-shaped recovery in the next. GDP growth will be expanding by 11 per cent in the 2021-22 fiscal.
  • As per the survey, there was de-growth for the first time.
  • It highlights that the Indian economy is technically in a recession as it has witnessed a contraction in the Gross Domestic Product (GDP) for the last two consecutive quarters.
  • The Survey also provided a detailed analysis of India’s V-shaped economic recovery after it was affected due to corona pandemic. It highlights that mega vaccination drive supports the V-shaped recovery.
  • As per the survey, Agriculture sector has remained the silver lining in the growth trajectory even during the pandemic however, contact-based services such as manufacturing and construction faced sharp decline due to the corona pandemic.
  • It highlights that how Healthcare sector has taken centre stage in the economy where the government took part actively in shaping and structuring the healthcare market in the country.

The Economic Survey of India

It is the flagship annual document released by the Ministry of Finance. The document is presented in the parliament just before the Union Budget by the Department of Economic Affairs, Ministry of Finance. The document is prepared under the guidance of the Chief Economic Adviser of India. During the budget session, this document is presented to both the houses of the parliament. The document is non-binding in nature.

Background

The first ever Economic Survey of India was presented in 1950-51. It was presented as a part of the Union Budget. The survey got separated from the Union Budget after the year 1964.

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