Economic Survey 2022: Key Highlights and summary; India’s economy to grow at highest rate among big economies

Indian Finance Minister Nirmala Sitharaman today tabled the Economic Survey 2022 in the Parliament, an annual flagship document that reviews the state of the economy. Every year, the Economic Survey is tabled a day before the presentation of the annual budget by the country’s finance minister. The survey has projected India’s GDP growth in a range of 6-6.8 per cent for the upcoming fiscal year 2023-24. This comes hours after the International Monetary Fund (IMF) projected India’s GDP growth at 6.1 per cent in the fiscal year 2023. Here are the key highlights of the Economic Survey, including projections around GST collection, inflation, pharmaceutical and health sector.

“The Indian economy has nearly ‘recouped’ what was lost, ‘renewed’ what had paused, and ‘reenergised’ what had slowed during the pandemic and since the conflict in Europe,” as per Economic Survey 2022.

GDP growth

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In the fiscal year 2023, the Indian economy is expected to grow at 6.5 per cent against 7 per cent in 2022 and 8.7 per cent in 2021. India's economy continues to grow at the highest rate in the world, outpacing that of emerging and developing Asia and economic expectations for China. India has been ranked as the fifth-largest economy in terms of exchange rate and the third-largest economy in terms of purchasing power parity.

Watch:India and China's recovery to help global economy

Steel production

India is now the world’s second-largest producer of crude steel, thus making India truly a global force in the sector. The sector has grown massively over the past years, with cumulative production (finished steel) reaching 88 MT and consumption at 86 MT.

Forex reserves

Regarding the forex reserves, the survey has highlighted that India has enough forex reserves to pay for its CAD and make market interventions, particularly when regulating the rupee. India’s current forex reserves balance is USD 573.727 billion.

Health sector

Budgeted spending on the health sector by the federal and state governments might reach 2.1 per cent of GDP in FY23 (Budget Estimate) against 2.2 per cent in FY22 (Revised Estimate), up from 1.6 per cent in FY21.

Also Read |Economic Survey 2023: Here’s everything you need to know

India’s exports and production

According to the Economic Survey, India's exports continue to be strategically significant at a time when the global supply chains are mired in uncertainties. As a result, the increase in exports has slowed down in the second half of the current fiscal year. The production processes have also changed gears from "moderate acceleration" to "cruise mode" as a result of the sharp increase in growth rates in FY 2021–2022 and the first half of the current fiscal year (FY 2022).

Inflation

In November 2022, retail inflation was once again within the Reserve Bank of India's (RBI) target range. India restrained price increases, while the advanced world experienced substantial inflation in 2022 for the first time in three to four decades. The course of inflation in the nation has been influenced by the RBI's efforts to anchor inflationary expectations through responsive monetary policy and forward guidance.

Pharmaceutical sector

In September 2022, total foreign direct investment (FDI) in the pharmaceutical industry surpassed the $20 billion milestone. Additionally, FDI inflows surged fourfold over five years, reaching $699 million in September 2022. The waning Covid-19 pandemic and an unfavourable base effect have both caused growth in pharmaceutical output to decrease.

GST

GST revenues have increased as a result of the quick economic recovery from Covid-19 induced shock, the fight against phoney bills and GST evaders along with several systemic reforms, and rate rationalisation.

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