Economic Survey Highlights


Team Udayavani, Jan 29, 2021, 5:05 PM IST

New Delhi: Following are the highlights of Economic Survey 2020-21, tabled in Parliament by Finance Minister Nirmala Sitharaman on Friday.

State of economy amidst once in a century crisis:

* Economic contraction projected at 7.7 pc in FY21
* 11 pc GDP growth projected in FY22, farm sector remains silver lining
* V-shaped recovery supported by COVID vaccination drive
* Rebound to be led by low base and continued normalization in economic activities as vaccine rollout gathers traction
* Govt consumption, net exports have cushioned growth from further diving down
* Exports to decline by 5.8 pc, imports by 11.3 pc in 2nd half of FY21
* India expected to have a Current Account Surplus of 2 pc of GDP this fiscal, a historic high after 17 years
* India’s sovereign credit ratings do not reflect its fundamentals, India’s willingness to pay is unquestionably demonstrated through its zero sovereign default history
* India’s fiscal policy should reflect Gurudev Rabindranath Tagore’s sentiment of ‘a mind without fear’

Healthcare:
* India”s lockdown strategy prevented 37 lakh COVID-19 cases, 1 lakh deaths
* Survey recommends increase in public healthcare spending from 1 pc to 2.5-3 pc of GDP

* India’s health infrastructure must be agile to respond to pandemics – healthcare policy must not become beholden to ”saliency bias” * Telemedicine needs to be harnessed to the fullest by investing in internet connectivity and health infrastructure

Process reforms:
* India over-regulates the economy resulting in regulations being ineffective even with relatively good compliance with process
* The solution is to simplify regulations and invest in greater supervision which, by definition, implies greater discretion
* India’s business sector needs to significantly ramp up investments in R&D

* Survey suggests asset quality review exercise immediately after the forbearance is withdrawn
* Forbearance represents ”emergency medicine” that should be discontinued at the first opportunity when the economy exhibits recovery, not a ”staple diet” that gets continued for years
* Legal infrastructure for the recovery of loans needs to be strengthened de facto

Fiscal Developments
* India adopted a calibrated approach best suited for a resilient recovery of its economy from COVID-19 pandemic impact, in contrast with a front-loaded large stimulus package adopted by many countries
* India remained a preferred investment destination with FDI pouring in amidst global asset shifts towards equities and prospects of quicker recovery in emerging economies
* Net FPI inflows recorded an all-time monthly high of USD 9.8 billion in November 2020, as investors’ risk appetite returned
* India only country among emerging markets to receive equity FII inflows in 2020
* India the fastest country to roll out 10 lakh vaccines in 6 days and also emerged as a leading supplier of the vaccine to neighbouring countries and Brazil
* India’s mature policy response provides important lessons for democracies to avoid myopic policy-making.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Report on Sambhal mosque survey likely to be submitted to local court; security tight in district

CCI orders probe against Google, affiliates for ‘unfair’ business practices in gaming apps’ listing on Play Store

Mahayuti leaders finalize power sharing pact with Amit Shah; CM’s name awaited

Karnataka govt to spend Rs 2,500 crore to upgrade 500 government schools

My name not mentioned anywhere, says Ex-Andhra CM Jagan on Adani bribe controversy

Three women missing in dense Kerala forest; Search operation underway

Heavy rain forecast: Pondy govt declares holiday for educational institutions on Nov 29, 30

Related Articles More

Sensex, Nifty bounce back after sharp correction in previous trade

CCI orders probe against Google, affiliates for ‘unfair’ business practices in gaming apps’ listing on Play Store

Nine Adani Group firms trade higher; Adani Total soars nearly 19 pc

Equity markets rise in early trade amid buying in HDFC Bank, SBI

Sensex rises by 230 points on gains in Adani stocks, select blue-chips

MUST WATCH

Grafting

Coconut Flower

Prakash Belawadi

Naxal Leader Vikram Gowda

Christmas Cake Fruit Mixing


Latest Additions

Delhi: Private school in Rohini receives bomb threat email day after low-intensity blast

Ed Sheeran announces six-city India tour for 2025

His awkward action, skill set make Bumrah a complete package: Steve Smith

SC to hear on Dec 9 plea of mosque committee related to dispute at Mathura Shahi Idgah complex

Violinist Balabhaskar’s father claims son killed by gold smuggling mafia

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.