Economic Survey 2022: 8-8.5% GDP growth projected for FY23, 9.2 percent for ongoing FY22 

Economic Survey 2022: Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2021-22 and the Statistical Appendix in the Lok Sabha on January 31, 2022. The Economic Survey 2022 projects India's GDP to grow at 8-8.5% in the Fiscal Year 2022-23. The GDP growth for the ongoing financial year 2021-22 has been estimated to be 9.2 percent.

The Economic Survey 2022 was presented by Principal Economic Adviser Sanjeev Sanyal and new Chief Economic Advisor (CEA) Dr V Anantha Nageswaran during a press briefing. The new Chief Economic Advisor informed that this year's Economic Survey has been compiled by Principal Economic Adviser Sanjeev Sanyal and his team of advisors.

Dr V Anantha Nageswara informed that the government has persuaded a four-pronged approach, which includes short term support to economy, especially to vulnerable sections during these uncertain times while keeping a firm eye on physical stability and at the same time never letting go of the opportunity that a crisis provides to initiates structural and supply-side reform.

The approach--Short term support to economy, especially to vulnerable sections during these uncertain times while keeping a firm eye on physical stability & at the same time never let go of the opportunity that a crisis provides to initiates structural & supply-side reform: CEA

— ANI (@ANI) January 31, 2022

Read more: Dr V Anantha Nageswaran takes over as new Chief Economic Advisor

Economic Survey 2022 PDF

The Economic Survey 2022 PDF will be available for download on the indiabudget.gov.in website shortly. 

Economic Survey 2022 Highlights 

Economic Survey 2021-22 details the state of different sectors of the Indian economy and the reforms that need to be undertaken to accelerate growth in all the sectors. 

According to Economic Survey 2022, the economy is estimated to have grown by 9.2 percent in FY 2021-22 after a contraction of 7.3 percent in the previous year.

Principal Economic Advisor Sanjeev Sanyal, while presenting the Economic Survey 2022, informed that there has been a revival in economic activities to pre-pandemic levels in the year 2021-22. He said that even though the health cost of the second COVID wave was much more severe, the economic cost of it was much milder.

The economy is estimated to have grown by 9.2% this year after a contraction of 7.3% in the previous year: Principal Economic Advisor Sanjeev Sanyal https://t.co/KgccU72G7F

— ANI (@ANI) January 31, 2022

As per Economic Survey 2021-22, all macro indicators point towards the fact that the Indian economy is well placed to face challenges backed by the revival in industrial growth. 

Economic Outlook

India's GDP is projected to grow by 8-8.5 percent in Financial Year 2022-23. The projection is based on the assumption that there will be no further debilitating pandemic related economic disruptions, normal monsoon and orderly withdrawal of global liquidity by major central banks, easing of global supply chain disruptions and stability in oil prices. 

The GDP growth in FY 2022-23 will be supported by widespread vaccine coverage and supply side reforms along withe asing of regulations and growth in exports. The private sector investment is also expected to pick up this year with the financial system in a good position to support economic revival. 

Sector-wise Impact 

Agriculture Sector

According to Principal Economic Advisor Sanjeev Sanyal, Agriculture sector was least affected by lockdowns of various kinds. The Agriculture sector grew by 3.6 percent in fiscal year 2020-21 and again by 3.9 percent in fiscal year 2021-22.

Industrial Sector

The Industrial sector though did go through a contraction but now it is about 4.1% percent above pre-pandemic levels. The industrial sector including mining and construction industry is estimated to have grown by 11.8 per cent in fiscal year 2021-22. The growth in the sector had contracted by 7 per cent in 2020- 21.

Services Sector

The growth in the services sector,  which has been the worst-hit sector by the COVID-19 pandemic, is just a little short of where it was during pre-pandemic times, as per the Principal Economic Advisor. He estimated that the segment of the services sector, which includes tourism, travel and hotels is still 8.5 percent below where it was before the pandemic began. It is a sector that is still impacted. The sector had contracted by 8.4 percent last year. 

The services sector was the most affected by the lockdowns. It is just a little short of where it was pre-pandemic: Principal Economic Advisor Sanjeev Sanyal pic.twitter.com/PYjEEpE15M

— ANI (@ANI) January 31, 2022

Total Consumption

Overall, the total consumption is estimated to have grown by 7.0 per cent in fiscal year 2021-22 with with a boost from government spending, just shy of where we were before the pandemic, as per Principal Economic Advisor Sanjeev Sanyal. He, however, noted that there is still a lag in private spending. 

Exports

The exports have been a major driver of growth as they are now very significantly above the pre-COVID levels but imports have also been very strong. Overall, India's GDP is 1.3 percent above where it was pre-pandemic, said Principal Economic Advisor Sanjeev Sanyal.

Inflation

The inflation during fiscal year 2021-22 reflected the disruptions caused by the lockdown and disruptions in the supply chain, explained Sanyal. He added saying that since restrictions were lifted this year, the Consumer Price Index (CPI) has come back into the tolerance band and has remained at 5.6 percent. 

Background

The Economic Survey is generally prepared by a team headed by the Chief Economic Advisor (CEA). The centre recently appointed V Anantha Nageswaran as the new Chief Economic Advisor. He succeeds K V Subramanian who demitted the office in December 2021 after completing his 3-year term.