New Delhi: Finance Minister Nirmala Sitharaman presented the Economic Survey 2021-22 in Parliament on Monday. The survey that is presented a day before the Union Budget, highlights the economic condition of the country over the last year and outlines suggestions for policy changes.
According to the Economic Survey 2022, the Gross Domestic Product (GDP) growth of the country for the next fiscal (FY23) is likely to be around 8-8.5 percent.
The survey hailed the government's efforts during the pandemic and noted that economic activity has recovered to the pre-pandemic level. It also added that the economy is in a good position to overcome challenges in 2022-23.
But what do the leaders of India Inc have to say on the Economic Survey and the projected GDP growth for the fiscal year (FY23)? Here's a look.
Rajani Sinha, Chief Economist & National Director - Research, Knight Frank India, while speaking to ABP News said, "The Economic Survey’s GDP growth projection of 8-8.5% for FY23 is quite conservative and lower than that projected by IMF. The Economic Survey has explained in detail the Government’s approach to handling this once-in-a-century pandemic-induced crisis. The Survey talks in detail about the ‘Agile’ approach that the government has been adopting, which basically implies tracking closely the high frequency economic indicators and tweaking the government’s response on a real-time basis as the crisis situation unfolds. Apart from discussing in detail the sectoral developments and policy implementations, the Survey very aptly talks in detail about the developments on social parameters of Health and Education. As per the need of the hour, there is also a detailed discussion on sustainable economic growth. The Economic survey has very aptly discussed in detail the current issues for the Indian economy, now the critical aspect would be how the Central and State Governments handle many of these issues going forward."
Naveen Kulkarni, Chief Investment Officer, Axis Securities said, "The economic growth projections for FY23 look very robust. A reasonably strong nominal GDP growth means we are looking at a healthy next fiscal year. This will also mean that tax collections will continue to remain robust and economic revival will gain further traction. Based on these projections, we remain very constructive on the future prospects."
Madhavi Arora, Lead Economist, Emkay Global Financial Services: "The Eco survey laid out the background for the budget to be released tomorrow. It reckons that the upcoming budget faces acute policy trade-offs between nurturing a nascent growth recovery and diminishing fiscal space with challenging debt dynamics. Policymakers should ensure the fiscal impulse is maximized to improve potential growth while signaling adherence to medium-term fiscal sustainability. This entails continued financial sector reforms, better resource allocation, and funding by aggressive asset sales via functional infrastructure monetization, divestment/strategic sales. The eco survey sees India’s GDP to grow 8-8.5% in FY23 after 9.25 in FY22, led by widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth, and availability of fiscal space to ramp up capital spending. However, the baseline assumption is stable global financial markets with orderly G-4 policy normalisation and well-behaved oil market (US$70-$75/bbl), and easing global supply chain disruptions."
Arun M. Kumar – Chairman & CEO, KPMG India: "The Economic Survey 2021-22 projects India’s growth for FY23 at 8-8.5% based on extensive vaccine coverage, gains from supply-side reforms, easing of process friction, and expected robust export growth. A reasonable, upbeat outlook that should be caveated by exogenous factors like geopolitical tensions and global oil prices."