InvestorQ : What are some of the highlights of Economic Survey 2022?
Ira Shah made post

What are some of the highlights of Economic Survey 2022?

1 year ago
Finance Minister Nirmala Sitharaman has placed the Economic Survey 2022 on the table ahead of Union Budget on 1-February-2022. She projected the economy to grow by 8-8.5% in the upcoming fiscal year and is well placed to meet further challenges amidst widespread vaccine coverage, supply-side reforms, and easing regulations. The survey hints at the economic recovery at a higher pace which shall be around 9.2% during the current financial year.

Here are some of the highlights of the Economic Survey 2022:
  • Economic is well placed to deal with upcoming challenges as economic activities have recovered to the pre-pandemic levels.
  • FY23 growth will be on the back of higher vaccine coverage, gains from supply-side reforms, and easing of regulations.
  • The survey presented projections based on oil prices of USD 70-75 per barrel next fiscal against the existing current price of USD 90 per barrel.
  • India’s agile policy response varied from the strategy adopted by most other countries to introduce front-loaded packages in 2020.
  • India witnessed robust export growth and there is apt availability of fiscal space to ramp up capital spending to support growth in the next fiscal year.
  • Privatization of Air India helped in boosting the government’s drive towards privatization, this hints at more such private participation in all sectors.
  • The government shall be giving priority to crop diversification towards oilseeds, pulses, and horticulture.
  • It also highlighted that the disruptions in the global container market are not yet over, and will continue to have an impact on global trade.
  • India now holds the 4th largest forex reserve, from being among “Fragile Five” nations giving policy room for maneuvering.
  • Government finance is expected to witness consolidation in 2021-22 after checking up the deficit and debt indicators last year.
  • Investment in the private sector will pick up with the financial system in a good position to provide support to the struggling economy.
  • This survey also underlines a need for a standardized framework for cross-border insolvency.
  • The government bagged higher tax and non-tax revenues this fiscal.
  • The emergence and growth of startups is a strong indicator of recovering economy.
  • However, the tourism sector’s upcoming growth and economic comments remain unpredictable amidst upcoming Omicron strains.
  • Indian hooped to 35th Position in Global Innovation Index from its existing 46th position.
  • FDI in Pharma witnessed a sudden spurt in the year 2020-21.