New Delhi: India's Chief Economic Advisor KV Subramanian on Friday addressed a press conference to present the much-awaited Economic Survey which was tabled in both Lok Sabha and Rajya Sabha by Finance Minister Nirmala Sitharaman earlier in the day. The survey, which gives a detailed report of state of economy, revealed some major aspects of country's economic performance in 2020-21 fiscal, especially during the Coronavirus-induced lockdown. ALSO READ | Budget Session 2021: In His Joint Address, President Kovind Condemns Jan 26 Violence, Says National Flag Was Insulted
As per the findings of the Economic Survey, post the gradual 'Unlock' since June, 2020, the country has experienced a 'V'-shaped recovery. The survey, tabled in Parliament, by Sitharaman said there is likely to be a fiscal slippage during the year based on the available trends for April to November 2020.
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">India is witnessing a V-shaped economic recovery<br><br>History will judge India's <a >#COVID19</a> policy response as mature<br><br>Reason for optimism on health & economic fronts<br><br>Be cautious till vaccination<br><br>- CEA <a >@SubramanianKri</a> summarizes <a >#EconomicSurvey</a> 2020-'21<a >#SavingLivesAndLivelihoods</a> <a >pic.twitter.com/99jZriUvFN</a></p>— PIB India (@PIB_India) <a >January 29, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
Here are 10 Highlights Of Modi Govt's Economic Survey 2021:
1. According to the document, the gross domestic product (GDP) is expected to contract by 7.7 per cent for the current fiscal and 'V-shaped recovery' in the next fiscal. The survey also indicated GDP growth is seen expanding in the 2021-22 fiscal (April 2021 to March 2022). This is in line with the Reserve Bank of India's forecasts and the Central Statistics Office of 7.5 per cent contraction and 7.7 per cent contraction, respectively.
2. The Economic Survey 2020-21 tabled in Parliament on January 29 said that India's real gross domestic product is projected to rise by 11 per cent in 2021-22, making it one of the nations to bounce back strongly from the COVID-19 pandemic. (IMF projected 11.5 per cent growth).
3. The survey also pointed out that India's timely and stringent lockdown to curb the spread of Covid-19 pandemic led to the 'V'-shaped economic recovery. Economic Survey also noted that India implemented an early and stringent lockdown from late March to May to curb the pace of spread of Covid-19. With the economy brought to a standstill for two complete months, the inevitable effect was a 23.9 per cent contraction in GDP as compared to previous year's quarter.
4. While addressing reporters after the Budget session of the Parliament, CEA Subramanian said that the 'V'-shaped economic recovery while avoiding a second wave of infections make India a 'sui generis' case in this unique, synchronized global recession. "Despite the hard hitting economic shock created by the global pandemic, India is witnessing a V-shaped recovery with a stable macroeconomic situation aided by a stable currency, comfortable current account, burgeoning forex reserves, and encouraging signs in the manufacturing sector output," he added.
5. Healthcare sector finally took the centre stage with survey findings stating the need to increase allocation for public health from 2.5 per cent to 3 per cent of the GDP. This direction will require a 2.4 per cent rise in real GDP over the 2019-2020 absolute level, estimating that it will take around two years for the economy to bounce back and go beyond the pre-pandemic level.
6. Agriculture has remained the silver lining in government's Economic Survey 2021 as it stronly defends the three contentious agri laws saying they herald a new era of market freedom which can go a long way in improving lives of small and marginal farmers in India. The pre-Budget document also highlighted the recommendations made on agri-market reforms since 2001, including by National Commission on Farmers chaired by M S Swaminathan and Taskforce on Employment Opportunities headed by Montek Singh Ahluwalia, among others.
7. "The suggestions on marketing of agricultural produce include the need to provide a choice to the farmers to sell their products directly to a processing factory or the private sector, development of agriculture marketing infrastructure, amendment of the State APMC Acts and the Essential Commodities Act to ensure barrier-free storage and movement of agricultural commodities," the Survey said.
8. In terms of tax reforms, the Economic Survey boasted the administration for kickstarting the process of transparency, accountability and incentivised tax compliance.
9. The survey also highlighted that India adopted a calibrated approach for a resilient recovery of its economy from COVID-19 pandemic impact, in contrast with a front-loaded large stimulus package adopted by many countries. India remained a preferred investment destination with FDI pouring in amidst global asset shifts towards equities and prospects of quicker recovery in emerging economies, the survey said adding that the Net FPI inflows recorded an all-time monthly high of USD 9.8 billion in November 2020
10. Coming down hard on sovereign credit ratings, the Economic Survey stated that India's sovereign credit ratings do not reflect the economy's fundamental and stated that the global rating agencies need to become more transparent and less subjective in their ratings. As ratings do not capture India's fundamentals, the survey said that past sovereign credit rating changes for India have not had a major adverse impact on select indicators such as Sensex return, foreign exchange rate and government securities yield.