The annual Economic Survey for 2021-2022 that was tabled in the parliament, on Monday, has predicted economic growth of 8-8.5 per cent in the coming fiscal year which is down from 9.2 per cent growth estimated in the current year.
The Finance Minister of India, Nirmala Sitharaman, tabled the Economic Survey 2021-2022 ahead of the Union Budget 2022 in parliament yesterday. She will present the Union Budget for the next financial year that will begin from April 1, 2022. As per the survey, the nation will see economic growth of 8 to 8.5 per cent in the coming fiscal year down from the predicted growth of 9.2 per cent estimated in the current year. The survey noted that almost every indicator showed that the impact of the second wave of Coronavirus on the economy in the first quarter was much smaller than what was experienced in the full lockdown phase of 2020-2021, even though the impact on health was much more severe.
Dr V Anantha Nageswaran, the newly appointed Chief Economic Advisor during the presentation of the survey said that the government while preparing the budget for 2021-2022, had kept in mind medium-term stability, supply-side reforms, and process reforms.
This year’s economic survey does not say a lot about the economic prospects but it is confident that the economy will do well. Some economists have expressed their concerns over consumption and have argued that the incomes of poor people have been affected badly by the global pandemic. The Economic Survey has no such doubts and mentioned that private consumption is poised to see a stronger recovery with steady coverage in the vaccination and faster normalisation of all economic activities.
The survey was upbeat about the investment demand as well and it stated that while the private investment is at a budding stage, there are many indicators that signal that the nation is poised for stronger investments. The investment projects under implementation in the manufacturing sector have been increasing over the years.
The companies hitting record profits in the recent quarters and the mobilization of risk capital will contribute to the acceleration of private investment. A cleaned-up and sturdy banking sector of the nation is ready to support private investment adequately. This estimated rise in private consumption levels will accelerate capacity utilization and will propel private investment activity.
The Survey pointed out improvement in the nation’s overall score on the NITI Aayog Sustainable Development Goals (SDG) India Index and Dashboard even in the COVID hit 2020-2021. The Economic Survey mentioned that the growth in 2022-2023 will be aided by the widespread coverage of vaccination, gains from supply-side reforms and the easing of regulations, robust growth of Indian exports, and availability of fiscal space to increase capital spending.