Economic Survey 2022 Confirms Decline of 1.8% in GDP Growth Forecast From Last Year

by GoNews Desk 2 years ago Views 2433

Budget 2022 Parliament Session Economic Survey
Finance Minister Nirmala Sitharaman has tabled the Economic Survey report in the Lok Sabha. The Survey projected a GDP growth rate in the range of 8-8.5% for the next fiscal 2022-23 (FY23). The economy is projected to grow at 9.2 per cent in the current fiscal. ( FY 2021-22) as reported by GoNews earlier the projections are 1.8% less than what the earlier Chief Economic Adviser had suggested in January 2022.  [Read Here]

The Finance Ministry is adding a caveat to its projections again this year: "The projection is based on the assumption that there will be no further debilitating pandemic related economic disruption.”

Here are some of the highlights:

  • Agriculture least hit by pandemic, sector to grow by 3.9% in 2021-22 after growing 3.6% in the previous year.
  • India's consumption has grown 7.0 per cent in 2021-22 with significant contribution coming from government spending. In the second quarter government’s contribution rose 17%.

  • Fiscal support as well as the health response caused the fiscal deficit and government debt to rise in 2020-21.India has third largest startup ecosystem in the world after US and China. India's capital markets, have done exceptionally well and have allowed record mobilization of risk capital for Indian companies.
  • In April-November 2021, IPOs of 75 companies have listed, garnering Rs 89,066 crore, as compared to 29 companies raising Rs 14,733 crore during April-November 2020, indicating a rise of 504.5% in fund mobilization.
  • Worryingly, India's Services sector which is more than 50% of the GDP has achieved a growth of 8.2% in 2021-22 which indicates that the services are still not at the pre-pandemic level as the sector shrunk 8.4% last year. 
This year the Economic Survey underlines several major factors which can impact the economic situation: Global inflation, Pandemic uncertainity, the Monsoon and price of oil. By suggesting these riders, its clear the Finance Ministry is hedging against its own projections of 8-8.5% growth foir the coming year. 

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