Budget 2022 Updates: India Needs to Spend $1.4 Trillion to Achieve $5 Trillion Economy, Says Economic Survey

Acknowledging that there is dearth of real-time data on unemployment, Sanjiv Sanyal said, “We know there was a significant decline in employment during the lockdown and a significant revival till March, 2021."

India’s GDP is projected to grow in real term by 8-8.5 per cent in 2022-23. We will still be the world’s fastest economy, says Sanjiv Sanyal.

India now has one of the highest forex reserves in the world, and equivalent to 13.2 months of imports, says Sanjiv Sanyal

There has been a sharp increase in both tax and non tax revenue, says Principal Economic Advisor Sanjeev Sanyal.

“Economic Survey 2021-2022 has been compiled by Principal Economic Adviser Sanjeev Sanyal and his team of advisors. Government has persuaded a four-pronged approach," said CEA V. Anantha Nageswaran.

Benchmark indices ended higher on Monday with Nifty closing above 17,300 as FY23 GDP forecast at 8-8.5 per cent and ahead Union Budget to be presented on February 1 by Finance Minister Nirmala Sitharaman. Read more

Principal Economic Advisor Sanjiv Sanyal is addressing the media after unveiling the Economic Survey.

Principal Economic Advisor Sanjeev Sanyal and Chief Economic Advisor (CEA) Dr V. Anantha Nageswaran present Economic Survey 2022 before the Media

Economic Survey says that to achieve it’s $5 trillion economy goal by 2024-25, India needs to spend around Rs 1.4 trillion over these years on infrastructure.

“Keeping this objective in view, National Infrastructure Pipeline (NIP) was launched with projected infrastructure investment of around Rs. 111 lakh crore (US$ 1.5 trillions) during FY 2020-2025 to provide world-class infrastructure across the country, and improve the quality of life for all citizens," it said.

India’s ranking in Global Innovation Index has climbed 35 ranks, from 81st in 2015-16 to 46th in 2021, said the Economic Survey. However, the number of patents was low as compared to this mainly because of the country’s low expenditure on Research and Development (R&D) activities, which was 0.7 per cent of its GDP in 2020.

“Quick Fact the #economic survey is back to readable limit of 442 pages and to a single volume almost half the length of previous surveys," says K Yatish Rajawat, columnist at News18.

Rajya Sabha adjourned for the day after Nirmala Sitharaman tables Economic Survey 2021-22.

Significant improvement is seen in the health infrastructure and services reaching the public. Under the Jal Jeevan Mission (JJM), 83 districts in the country have already become ‘Har Ghar Jal’ districts: Economic Survey

As Nirmala Sitharaman tabled the Economic Survey 2021-22, the document was made available on the public domain. One can access the document at https://www.indiabudget.gov.in/economicsurvey/

Economic Survey states that total consumption is estimated to have grown by 7.0 per cent in 2021-22 with government consumption remaining the biggest contributor as in the previous year. Government consumption is estimated to grow by a strong 7.6 per cent surpassing pre-pandemic levels. Read our Full coverage here

The revenue from excise duties has registered a YoY growth of 23.2 per cent during April to November 2021, despite the Centre cut fuel taxes in November: Economic Survey

" The inflation in ‘fuel and power’ group of WPI was above 20 per cent reflecting higher international petroleum prices. Although the high WPI inflation is partly due to base effects that will even out, India does need to be wary of imported inflation, especially from elevated global energy prices," says Economic Survey.

The Survey highlighted an exceptional year for the primary market amid an IPO boom, that has raised Rs 89,066 crore. In the last fiscal year, as many as 75 IPOs were issued between April and November 2021. This was much higher than in any year in the last decade.

“In April-November 2021, IPOs of 75 companies have listed, garnering `89,066 crore, as compared to29 companies raising Rs `14,733 crore during April November 2020,indicating stupendous rise of 504.5 per cent in fund mobilization. The money raised by IPOs has been greater than what has been raised in any year in last decade by a large margin," said the Economic Survey.

Investment is set to see a strong growth in 2021-2022, as measured by Gross Fixed Capital Formation (GFCF), said the Economic Survey.

“Government’s policy thrust on quickening virtuous cycle of growth via capex and infrastructure spending has increased capital formation in the economy lifting the investment to GDP ratio to about 29.6 per cent in 2021-22, the highest in seven years," said the Survey.

The Economic Survey said that in 2021, global inflation picked up as economies opened. “COVID-19 related stimulus spending, mainly in the form of discretionary handouts to households in major economies, along with pent up demand fueling consumer spending, pushed inflation up in both advanced and emerging economies," it said.

Crude oil prices also shot up amid increased demand from recovering economies and supply cuts by the Organization of the Petroleum Exporting Countries and its allies

The Economic Survey said that in 2021, global inflation picked up as economies opened. “COVID-19 related stimulus spending, mainly in the form of discretionary handouts to households in major economies, along with pent up demand fueling consumer spending, pushed inflation up in both advanced and emerging economies," it said.

Crude oil prices also shot up amid increased demand from recovering economies and supply cuts by the Organization of the Petroleum Exporting Countries and its allies

The privatisation of Air India was ‘particularly important’ to reaffirm the government’s commitment to its divestment targets, said the Economic Survey.

Economic Survey: Gradual unlocking of the economy, record vaccinations, improvement in consumer demand, continued policy support towards industries by the government in the form of AtmaNirbhar Bharat Abhiyan and further reinforcements in 2021-22 have led to an upturn in the performance of the industrial sector

Economic Survey:  Increasing importance of allied sectors including animal husbandry, dairying and fisheries in growth and income of the farmers indicates that focus needs to shift more towards harnessing the potential of allied activities. There is also a need to improve productivity of small and marginal farmers through development and implementation of small holding farm technologies.

Economic Survey: The last two years have been particularly challenging for policy-making around the world with repeated waves from a mutating virus, travel restrictions, supply-chain disruptions and, more recently, global inflation. Faced with all this uncertainty, the Government of India opted for a “Barbell Strategy" that combined a bouquet of safety-nets to cushion the impact on vulnerable sections of society/business, with a flexible policy response based on a Bayesian updating of information.

Climate finance will remain critical to successful climate action for India to achieve its net zero carbon emission target by 2070, says Economic Survey.

“The gross monthly GST collections have crossed the ` 1 lakh crore mark consistently since July 2021, after quickly recovering from a dip in June 2021 following the second wave of COVID-19. The impact of the second wave of COVID-19 on GST collections was much more muted as compared to the first wave," says Economic Survey.

Economic Survey: With the bouncing back of the economy in the current financial year, the revenue receipts of the central government during April to November 2021 have gone up by 67.2 per cent (YoY), as against an expected growth of 9.6 per cent in the 2021-22 Budget Estimates (over 2020-21 Provisional Actuals).

Economic Survey: Production Linked Incentive Scheme approved for 13 sectors including (i) Automobiles and auto components, (ii) Pharmaceuticals drugs, (iii) Specialty steel, (iv) Telecom & Networking Products, (v) Electronic/ Technology Products, (vi) White Goods (ACs and LEDs), (vii) Food products, (viii) Textile products: MMF segment and technical textiles, (ix) High efficiency solar PV modules, (x) Advanced Chemistry Cell battery, (xi) Manufacturing of medical devices, (xii) Mobile manufacturing & specified electronic components and (xiii) Critical key starting materials/ Drug intermediaries & Active Pharmaceutical Ingredients

Economic Survey: Government finances to witness consolidation in 2021-22, after uptick in deficit and debt indicators during pandemic year FY21