Economic Survey 2022: From GDP Growth To Poverty Reduction | Key Takeaways From The Survey

Economic Survey: Government finances to witness consolidation in 2021-22, after uptick in deficit and debt indicators in the previous year

Finance Minister Nirmala Sitharaman on Monday tabled the Economic Survey 2021-22 soon after the President’s address to both Houses of Parliament. The survey underlines the state of the economy and outlines suggestions for policy actions. “India’s GDP is projected to grow in real terms by 8.0-8.5% in 2022-23,” said the Survey. Growth will be supported 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,” it added.

The issue of cryptocurrency has not been covered in the Economic Survey 2021-22, Principal Economic Adviser Sanjeev Sanyal said in an interaction with media. “As you know, this is a matter of some debate, both inside the government, in the Ministry of Finance, and even in Parliament. So, this is something that is currently in discussion,” he said.

Here are some of the key takeaways from the Economic Survey:

• According to the Economic Survey, the GDP growth rate is projected in the range of 8-8.5% for the next fiscal 2022-23 (FY23)
• Growth projections based on oil price projection of $70-75 per barrel next fiscal, against current price of $90
• There has been a revival in economic activities to pre-pandemic levels in the year 2021-22.
• The economy is estimated to have grown by 9.2% this year after a contraction of 7.3% in the previous year
• The segment (of services sector) which includes tourism, travel, and hotels is still 8.5% below where it was before the pandemic.
• The services sector was the most affected by the lockdowns
• Agriculture least hit by pandemic, sector to grow by 3.9% in 2021-22 after growing 3.6% the previous year
• Disruptions in the global container market not yet over; will continue to impact the global sea trade.
• Crop diversification towards oilseeds, pulses and horticulture needs to be given priority
• Agriculture sector, not surprisingly, was least affected by lockdowns of various kinds. This sector grew in even 2020-21 & again in 2021-22.
• Government finances to witness consolidation in 2021-22, after uptick in deficit and debt indicators in the previous year
• “Climate finance will remain critical to successful climate action by developing countries, including India,” says the Survey
• Industrial sector did go through a contraction & now it is about 4.1% above pre-pandemic levels
• Industrial sector likely to grow at 11.8%.
• India’s total exports are expected to grow by 16.5% in 2021-22 surpassing pre-pandemic levels.
• Imports are expected to grow by 29.4% in 2021-22
• Consumption has grown 7% in 2021-22 with a significant chunk of it thanks to government spending.
• Middle-class borrowing to own houses well below the 21.1% growth year-on-year; also below the level of the last four years
• Railways: Rs 65,157 crore capital expenditure from April to November 2021; capex outlay in the ongoing financial year is at Rs 2.15 lakh crore, which is five times the 2014 level.
• India has third largest startup ecosystem in the world after US and China.
• India sees 44 unicorns in 2021, a new record.
• In April-November 2021 Rs 89,066 crore was raised via 75 IPO issues versus 29 companies which raised Rs 14,733 crore in the same period in 2020
• Share of individual investors in total NSE turnover increases to 44.7%
• 221 lakh individual Demat accounts added between April-November 2021
• Housing sales expected to see a boost after COVID-19 slump on the back of reduced duties in multiple states
• Five sectors capture around 83% of the aggregate pipeline value: Roads (27%), Railways (25%), Power (15%), Oil & Gas pipelines (8%) and Telecom (6%)