Economic Survey 2021: GDP growth seen rebounding at 11% in 2021-22

Finance Minister Nirmala Sitharaman has tabled the Economic Survey of India 2021in the parliament, ahead of the Union Budget on Monday.

Sitharaman tabled the Survey after President Ram Nath Kovind's customary address at the start of the Budget Session 2021.

The annual document acts as a platform to pitch larger economic ideas and concepts which the government may or may not act upon.

The Economic Survey 2020-21, authored by a team led by Chief Economic Adviser Krishnamurthy Venkata Subramanian, details the state of different sectors of the economy as well as reforms that should be undertaken to accelerate growth.

The economy, which was battered by the coronavirus lockdown, is expected to see a strong recovery in the 2021-22 fiscal year.

The gross domestic product (GDP) contracted by a record 23.9 per cent in April-June and by 7.5 per cent in the second quarter.

For the full fiscal, the survey projected a contraction of 7.7 per cent and V-shaped recovery in the next.

GDP growth is seen expanding by 11 per cent in 2021-22 fiscal (April 2021 to March 2022).

The session had an acrimonious start with as many as 19 political parties, including the Congress Party, skipping the President's address, in solidarity with the farmers agitating against the three contentious farm laws.

Here are the key highlights so far:

• India sees FY22 GDP growth at 11%
• Combined fiscal deficit to exceed target in FY21
• Growth recovery to be driven by government consumption
• Agriculture has remained the silver lining.
• Contact based services, manufacturing, construction hit hardest by the pandemic.
• Government consumption and net exports have cushioned the growth from diving further down.
• A V-shaped economic recovery supported by mega vaccination drive.
• Current account surplus of 2% of GDP likely in FY21.
• In two years India could be the fastest growing economy as per IMF.
• CAD estimated at 2% in FY21; that is the first in the 17 years.

(With inputs from agencies)