Economic Survey 2021-22 was presented in parliament on the last day of January, one day before the Union Budget, and here are the highlights:
- Advance estimates suggest that the Indian economy has recovered to pre covid-19 pandemic levels.
- Agriculture and allied sectors were least impacted in pandemic with growth of 3.9% in 2021-22 and 3.6% in the previous year.
- Industry will rise at 11.8% in 2021-22 after contracting by 7% in 2020-21. The services sector has been the hardest in pandemic and estimated to grow by 8.2% in 2021-22 against contraction of 8.4% in previous year.
- India has become third largest startup ecosystem in the world with number of recognized startups increasing from 733 in 2016-17 to 14,000 in 2021-22 with 44 unicorns till 2021.
- Indian economy is estimated to witness GDP growth of 8.0-8.5% in 2022-23.
- Despite disruptions, Indian balance of payments remained surplus in last two years (USD 634 billion in Dec-21) providing buffer against global liquidity tapering.
- Indian exports are expected to grow by 16.5% and imports by 29.4% in FY22.
- Global inflation has jumped in most countries and India too will be keeping a close eye on imported inflation due to energy prices.
- Overall Indian economy is well placed for 2022-23. One of the reasons for the same is flexible support to vulnerable sections based on eighty High Frequency Indicators rather than predetermined rigid response.
- Second reason is supply side reforms like deregulation of numerous sectors, simplification of processes, privatization, removal of legacy issues like retrospective taxes, production-linked incentives etc.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.
This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction.
#mergersandacquisitions #privateequity #ipo #debt #debtsyndication #valuations #rating #creditrating #financeadvisory #finance #economy #indianeconomy #fundraising #capitalmarket #capital #banking #m&a #ma #pe #initialpublicoffer #businessloan #loan #businessvaluation #registeredvaluer #acquisition #merger #deals #financialdeals #ahmedabad #gujarat #india #ratingadvisory #mergersandacquisitionsahmedabad #maahmedabad #privateequityahmedabad #ipoahmedabad #financeadvisoryahmedabad #stockmarket #primarymarket #secondarymarket