Scribd Logo
Upload

Welcome to Scribd!

  • 20 views

    Economic Survey 2021: Submitted By: - Aditya Kumar PGP/1305/06

    Uploaded by

    Aditya Kumar
    The Economic Survey of India 2021 makes several key points: 1) The Indian economy is experiencing a V-shaped recovery after being hit hard by the pandemic, with growth projected to be 11% in 2021-22 following a steep decline, led by a resurgence in sectors like power, manufacturing and exports. 2) Agriculture has remained relatively resilient while contact-based services were hardest hit but are recovering steadily, and the external sector provided a critical cushion for growth. 3) While debt sustainability depends on growth outstripping interest rates, India's high growth potential means debt is unlikely to cause problems even in worst scenarios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Economic Survey 2021: Submitted By: - Aditya Kumar PGP/1305/06

    Uploaded by

    Aditya Kumar
    20 views3 pages
    The Economic Survey of India 2021 makes several key points: 1) The Indian economy is experiencing a V-shaped recovery after being hit hard by the pandemic, with growth projected to be 11% in 2021-22 following a steep decline, led by a resurgence in sectors like power, manufacturing and exports. 2) Agriculture has remained relatively resilient while contact-based services were hardest hit but are recovering steadily, and the external sector provided a critical cushion for growth. 3) While debt sustainability depends on growth outstripping interest rates, India's high growth potential means debt is unlikely to cause problems even in worst scenarios.

    Original Title

    1

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The Economic Survey of India 2021 makes several key points: 1) The Indian economy is experiencing a V-shaped recovery after being hit hard by the pandemic, with growth projected to be 11% in 2021-22 following a steep decline, led by a resurgence in sectors like power, manufacturing and exports. 2) Agriculture has remained relatively resilient while contact-based services were hardest hit but are recovering steadily, and the external sector provided a critical cushion for growth. 3) While debt sustainability depends on growth outstripping interest rates, India's high growth potential means debt is unlikely to cause problems even in worst scenarios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    20 views3 pages

    Economic Survey 2021: Submitted By: - Aditya Kumar PGP/1305/06

    Uploaded by

    Aditya Kumar
    The Economic Survey of India 2021 makes several key points: 1) The Indian economy is experiencing a V-shaped recovery after being hit hard by the pandemic, with growth projected to be 11% in 2021-22 following a steep decline, led by a resurgence in sectors like power, manufacturing and exports. 2) Agriculture has remained relatively resilient while contact-based services were hardest hit but are recovering steadily, and the external sector provided a critical cushion for growth. 3) While debt sustainability depends on growth outstripping interest rates, India's high growth potential means debt is unlikely to cause problems even in worst scenarios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    ECONOMIC SURVEY 2021

    Submitted By: -
    Aditya Kumar
    PGP/1305/06
    Introduction:
    The Economic Survey of India is an annual document released by the Ministry of Finance,
    Government of India. The Economic Survey document is prepared by the Economics Division
    of the Department of Economic Affairs (DEA) under the guidance of the Chief Economic
    Advisor. It is usually presented a day before the Union Budget is presented in the Parliament.
    Key points in Economic survey:
    Economic measures: Starting July 2020, a resilient V-shaped recovery is underway. A V-
    shaped recovery is characterized by a quick and sustained recovery in measures of economic
    performance after a sharp economic decline. V-shaped recovery is due to resurgence in high
    frequency indicators such as power demand, rail freight, E-Way bills, Goods and Services Tax
    (GST) collection, steel consumption, etc. This path would entail a growth in real Gross Domestic
    Product (GDP) by 2.4% over the absolute level of 2019-20 - implying that the economy would
    take two years to reach and go past the pre-pandemic level.
    GDP’s Estimation: India’s real GDP to record a growth of 11% in 2021-22 and nominal GDP
    by 15.4% - the highest since independence. Sector-wise, agriculture has remained the silver
    lining while contact-based services, manufacturing, construction were hit hardest, and have been
    recovering steadily. The external sector provided an effective cushion to growth with India
    recording a Current Account Surplus of 3.1% of GDP in the first half of FY 2020-21.
    Debt Sustainability and Growth: Growth leads to debt sustainability in the Indian context but
    not necessarily vice-versa. Debt sustainability depends on the ‘Interest Rate Growth Rate
    Differential’ (IRGD), i.e., the difference between the interest rate and the growth rate. Negative
    IRGD in India – not due to lower interest rates but much higher growth rates – prompts a debate
    on fiscal policy, especially during growth slowdowns and economic crises. Given India’s growth
    potential, debt sustainability is unlikely to be a problem even in the worst scenarios.
    Services Sector: The services sector accounts for over 54% of India’s Gross Value Added
    (GVA) and nearly four-fifths of total Foreign Direct Investments (FDI) inflow into India.
    Services sector accounts for 48% of total exports, outperforming goods exports in recent years.
    Key indicators such as Services Purchasing Managers’ Index, rail freight traffic, and port traffic,
    are all displaying a V-shaped recovery after a sharp decline during the lockdown.
    Agriculture: The Agriculture and Allied activities clocked a growth of 3.4%. In May, 2020, the
    share of Agriculture and Allied Sectors in Gross Value Added (GVA) of the country at current
    prices is 17.8% for the year 2019-20. In 2019-20, the major agricultural and allied export
    destinations were the USA, Saudi Arabia, Iran, Nepal and Bangladesh. The top agriculture and
    related products exported from India were marine products, basmati rice, buffalo meat, spices,
    non-basmati rice, cotton raw, oil meals, sugar, castor oil and tea.
    During the last 5 years ending 2018-19, FPI sector has been growing at an Average Annual
    Growth Rate (AAGR) of around 9.99% as compared to around 3.12% in Agriculture and 8.25%
    in Manufacturing at 2011-12 prices.
    India and Innovation: India entered the top-50 innovating countries for the first time in 2020
    since the inception of the Global Innovation Index in 2007, ranking first in Central and South
    Asia, and third amongst lower middle-income group economies. India’s Gross Domestic
    Expenditure on Research and Development (GERD) is lowest amongst top ten economies.
    Healthcare: PM-JAY contributed to improvement in many health outcomes in States that
    implemented the ambitious programme the Centre had launched more than two years ago to
    provide healthcare access to most vulnerable sections. An increase in government spending on
    the healthcare sector – from the current 1% to 2.5-3% of GDP – as envisaged in the National
    Health Policy 2017 could reduce out-of-pocket expenditures.
    Education: India has attained a literacy level of almost 96% at the elementary school level. As
    per National Sample Survey (NSS), the literacy rate of persons of age 7 years and above at the
    All India level stood at 77.7% but the differences in literacy rate attainment among social-
    religious groups, as well as gender still persists. Female literacy remained below the national
    average among social groups of SC, ST, OBC, including religious groups of Hinduism and
    Islam.
     PM eVIDYA is a comprehensive initiative to unify all efforts related to digital/online/on-
    air education to enable multi-mode and equitable access to education for students and
    teachers.
     PRAGYATA guidelines on digital education have been developed with a focus on
    online/blended/digital education for students who are presently at home due to closure of
    schools.
     The MANODARPAN initiative for psychological support has been included in
    Atmanirbhar Bharat Abhiyan.

    You might also like