Economic Survey projects 11 per cent growth In next FY

Finance Minister Nirmala Sitharaman on Friday tabled the Economic Survey in Lok Sabha,  that details the state of the economy ahead of the government's Budget for fiscal year beginning April 1, 2021.Economic Survey 2020-21 has projected  GDP growth for the next financial year at 11 per cent. It has suggested that the growth recovery will be driven by government consumption. It says that the GDP for the current financial year is estimated to contract by 7.7 per cent. It further says that the nominal GDP for the next fiscal is expected to grow at 15.4 per cent.

The E- Survey gave a detailed analysis of India's V-shaped economic recovery after the shadow effect of the corona pandemic.It says that the mega vaccination drive supports the V-shaped recovery and also highlights that the Agriculture sector has remained the silver lining in the growth trajectory even during these tough times. It says that the contact based services including manufacturing and construction faced sharp plunge due to the corona pandemic and acknowledges that the Healthcare sector has taken centre stage in the economy. It added that the key role of the government is to actively shape and structure the healthcare market in the country.

The survey underscores that the recent softening of the CPI Inflation Index reflects easing of the supply side constraints in the country.It says that the contact based services including manufacturing and construction faced sharp plunge due to the corona pandemic and calls for for more active, counter cyclical fiscal policies with importance being accorded to fiscal responsibility. The survey was presented amid Congress, DMK and Left members' protest in the House against the  three farm laws.
Later addressing a press conference, CEA Subramanian said that India economy has witnessed a ‘V-shaped’ economic recovery and praised India’s policy response to Covid-19 for the recovery, besides the measures introduced to save lives and livelihoods. He also termed the Covid-19 crisis as a ‘once-in-a-century’ crisis. The chief economic advisor also mentioned that the initial period of the pandemic — when a strict nationwide lockdown was announced — in India saw high uncertainty and added that the “research-driven” policy measures introduced by the government helped limit the economic impact.“India's policy response toCovid-19 was guided by the realisation that GDP growth will come back, but not lost human lives. Early intense lockdown saved lives, helped faster recovery.”