Two days ahead of the budget, the Economic Survey on Friday formulated an “expansionary monetary policy” for 2021-22. It also advised the government to proceed with structural reforms and significant privatization of state-owned enterprises.
The 2020-21 survey, tabled by Finance Minister Nirmala Sitharaman in the Lok Sabha, stressed that the severe lockout from March 25 to May 31 helped break the chain of the epidemic and prevent casualties. Subsequent policy response helped to stabilize the V-shaped economic recovery.
[also_read title = “Explained” article_title= “How Economic Survey projected a growth of 11% in FY 2021-22” id = “7166527” liveblog = “no” ]
The survey, written by the Economic Division led by Chief Economic Adviser Krishnamurthy V. Subramaniam, called for spending drive despite the recession this year. Growth recovery will facilitate moderate revenue collection in the medium term, thereby enabling a sustainable financial path. ”.
After a 7.7 percent contraction in 2020-21, the survey plans to record real GDP growth of 11 percent in 2021-22. Nominal GDP growth is estimated at 15.4 percent, representing 4.4 percent inflation for the year. The Ministry’s forecast for India is GDP growth of 11.5 per cent in 2021-22 and 6.8 per cent in 2022-23, according to the International Monetary Fund. According to the International Monetary Fund (IMF), India is set to become the fastest growing economy in the next two years.
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