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.
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