Economic Survey 2021-22- Highlights

The Economic Survey 2021-22 was tabled in Parliament on January 31, 2022 by Finance minister Nirmala Sitharaman.

Who prepared the Economic Survey?

  • Economic Survey 2021-22 was prepared by a team led by principal economic adviser Sanjeev Sanyal.
  • The survey is a single volume with separate set of statistical tables, as opposed to two volume formats seen in previous years.

How economic survey has evolved?

In 1950s, the survey started as a less than 50-page document. Now, it is running into hundreds of pages, to provide a detailed analysis of the economy and recommend policy measures to deal with challenges.

Growth Forecast

  • Economic survey forecasts economy to grow 8-8.5 per cent in the fiscal year 2022-23.
  • In current year, economy is likely to grow at 9.2 per cent.
  • Agriculture & allied sectors are likely to grow by 3.9 per cent.
  • India’s economic growth in fiscal year 2022-23 will still be the fastest among major economies.

How will India take on challenges?

As per survey, macro-economic stability indicators highlight that, Indian economy is well placed to take on challenges in 2022-23. Indian economy is in good position because of its unique response strategy, which has been listed below:

  1. Supply-Side reforms: India’s economic response to challenges caused by covid-19 pandemic has been supply-side reforms, instead of demand management.
  2. Front-loaded stimulus packages: Agile policy response of India differed from waterfall strategy of introducing front-loaded stimulus packages, which were adopted by most of the countries in 2020.
  3. Robust export growth and availability of fiscal space for ramping up capital spending, in a bid to support growth in fiscal year 2022-23.

Fiscal performance

Gross tax revenue during April-November 2021 has increased by 50 per cent year-on-year. On the other hand, GST mop up remained above Rs 1 lakh crore since July 2021.  Revenue receipts of central government during April-November 2021 have increased by 67.2 per cent. The corporate tax collections witnessed a growth of 90 per cent, during April-November 2021.

Financial sector

Total net profit of public sector banks (PSBs) has increased from Rs 14,688 crore during first six months of 2020-21 to Rs 31,144 crore in first half of 2021-22. Gross non-performing assets (NPAs) ratio of SCBs decreased from 7.5 per cent in 2020-21 to 6.9 per cent at end-September 2021.

Inflation

The report highlights risks from global inflation and covid-19 pandemic-related disruptions.  The consumer inflation was 5.6% in December 2021, the wholesale price inflation was reported in double digits for eight months. Imported inflation was exceptionally high through coal, oil, and gold. Survey suggests that, India is in danger of breaking Reserve Bank of India’s target of 2-6% inflation.

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