Economic Survey 2022: Indian financial system grew at 9.2% in FY 21-22, GDP 1.3% above pre-pandemic ranges

Ahead of the annual Budget presentation on February 01, The Ministry of Finance and Corporate Affairs tabled the Economic Survey for the present monetary yr 2021-2022 on Monday. Principal Economic Advisor Sanjeev Sanyal whereas suggesting a revival in financial actions to pre-pandemic ranges said that the financial system grew by 9.2% this yr after struggling a contraction of seven.3% final yr.

The key takeaway from the survey signifies splendid financial restoration after the pandemic to pre-pandemic ranges of progress in virtually each sector. The Agriculture and allied companies, which have been least affected throughout the pandemic (contemplating the extent of the rise in optimistic circumstances principally in city areas) have overturned the restoration above 100 per cent than FY 2019-20.

The industrial sector which incorporates building, mining, manufacturing and provide of important companies like electrical energy, fuel, and so on has finished a outstanding progress registering stats at par with pre-Covid-19 years. PEA Sanjeev Sanyal who headed the committee on the survey has mentioned that this yr the Economic Survey has been introduced in two volumes – whereas the primary appears to be like at total macroeconomic and sectoral developments, the second quantity comprises a devoted revamped statistical appendix.

Indian Economy is estimated to have crossed the pre-pandemic stage in 2021-22 with 9.2% progress (AE). Contact intensive companies nonetheless impacted. #EconomicSurvey2022 #EconomicSurvey (2/16) @FinMinIndia @PIB_India @nsitharamanoffc pic.twitter.com/XuGNEXWnWZ

— Sanjeev Sanyal (@sanjeevsanyal) January 31, 2022

The statistics included within the second quantity of the survey point out a dynamic nature of improvement occurring throughout sectors with the rise in infrastructure tasks, a rise in foreign exchange reserves, an total improve within the variety of enterprise institutions and Start-Ups, enchancment in fiscal place and vaccination statistics. The survey forecasts a GDP progress of 8.0-8.5% within the monetary yr 2022-23. Earlier, the International Monetary Fund had projected India’s progress at 9% making the nation the fastest-growing financial system.

Source: https://www.indiabudget.gov.in/economicsurvey/

The components indicating micro-economic stability look wholesome amidst the rising inflation and instability in lots of international locations. The nation’s foreign exchange reserves have strategically elevated through the years and have recorded the best on the US $635bn within the second quarter of the monetary yr.

There has been a pointy improve in start-up institutions throughout India in 2021-22. There are at the very least 555 districts within the nation with at the very least one registered startup. This yr, India grew to become the third-largest startup ecosystem on this planet after US & China.

Despite elevated expenditure in well being & infrastructure sectors, robust progress in Tax and Non-tax income have improved the fiscal place of the nation. The improve in Capital Expenditure was a calculated coverage choice taken final yr in order to extend spending with a view to placing cash within the financial system.

The Principal Economic Advisor, whereas placing the Vaccination statistics upfront has mentioned that over the course of a yr, ranging from January 15 final yr, India has delivered a complete of 157 crore doses that lined 91 crore individuals with at the very least 1 dose and 66 crore individuals absolutely vaccinated.

Vaccination Status as of January 16, 2022. Source: @sanjeevsanyal on Twitter

Through the Jal Jeevan Mission of PM Narendra Modi, which goals at giving direct faucet water connections to households, The Economic Survey has recorded a stellar improve in ten years from 2011 to 2021. From 2019, spectacular progress in offering faucet connections to households has been recorded.

Source: https://www.indiabudget.gov.in/economicsurvey/

The graphic exhibits the growth of nationwide highways from an total 71,772 km in 2011 to 1,40,152 km in 2021. The improve in freeway density signifies that the nation has constructed twice the highways since 2021, as in comparison with highways constructed since Independence. Ramping up infrastructure to boost connectivity has been one of many many profitable coverage implementations of the 2 successive Modi Governments since 2014.

Source: https://www.indiabudget.gov.in/economicsurvey/

The Economic Survey exhibits the variety of operationalized airports elevated from 62 in 2016 to 130 in 2021. The Central Government began UDAN as a regional airport improvement programme with a view to enhancing regional connectivity by upgrading underserviced air routes. 

Source: https://www.indiabudget.gov.in/economicsurvey/

The above statistics not solely point out that the financial system is on its technique to restoration from the pandemic decline but it surely additionally showcases the profitable implementation of long-term authorities insurance policies in guaranteeing total welfare and infrastructure.