New Delhi: The Economic Survey, which was tabled by Finance Minister Nirmala Sitharaman in Parliament on Friday, has forecast a “V-shaped” recovery for the Indian economy and real GDP growth of 11 per cent in 2021-22, citing the mass vaccination drive that started in the country from January 16.
The Economic Survey, prepared by a team led by Chief Economic Adviser Krishnamurthy Venkata Subramanian, gives an overview of the various economic sectors and suggests economic reforms that need to be undertaken by the government to accelerate growth.
It also projected the country’s GDP to contract 7.7 per cent in the current fiscal year ending March 31, as economic activity was hit hard by the COVID-19 pandemic. It led to millions of job losses and small businesses were worst affected.
“Together, prospects for robust growth in consumption and investment have been rekindled, with estimated real GDP growth for FY2021-22 pegged at 11 per cent,” the survey said.
It pointed out that faced with unprecedented uncertainty at the onset of the pandemic, India focused on saving lives and livelihoods by its willingness to take short-term pain for long-term gain.
“India’s mature policy response to this ‘once-in-a-century’ crisis thus provides important lessons for democracies to avoid myopic policymaking and demonstrates the significant benefits of focusing on long-term gains.”
“Favourable monetary policy ensured abundant liquidity and immediate relief to debtors via temporary moratoria, while unclogging monetary policy transmission,” it added.