Economic Survey 2022 LIVE: GDP to grow at 8-8.5% in FY23, fiscal deficit target feasible

Finance minister Nirmala Sitharaman on Monday tabled the Economic Survey in the Parliament. The Indian economy is estimated to grow by 9.2% in real terms in 2021-22, after a contraction of 7.3% in 2020-21, according to the survey.

President Ram Nath Kovind kick-started the Budget Session with an address to the joint sitting of the two Houses of Parliament. President Kovind highlighted various achievements of the Modi government.

India has again emerged as one of the fastest growing economies in the world.

GST collection has consistently remained above ₹1 lakh crore during the last several months.

Inflow of $48 billion in the first seven months of the current financial year is a testimony to the belief the global investor community has in India’s growth story.

India’s foreign exchange reserves today exceed 630 billion dollars, says Kovind

Our exports are also growing rapidly, breaking several past records. During April to December 2021, our goods-exports stood at $300 billion or more than ₹22 lakh crore, which is one and a half times more than the corresponding period of 2020, he says.

1:00 pm: Finance Minister Nirmala Sitharaman has presented the Economic Survey for financial year 2021-22 before Lok Sabha.

1:05 pm: Economic Survey forecasts FY23 real GDP growth at 8-8.5%.

1:18 pm: The GDP projection in the Economic Survey is comparable with the World Bank’s and Asian Development Bank’s latest forecasts of real GDP growth of 8.7% and 7.5%, respectively for 2022-23. As per the IMF’s latest World Economic Outlook (WEO) growth projections released on January 25, India’s real GDP is projected to grow at 9% in both 2021-22 and 2022-23 and at 7.1% in 2023-24. This projects India as the fastest growing major economy in the world in all these three years.

1:22 pm: The Indian economy is estimated to grow by 9.2% in real terms in 2021-22 (as per the First Advance Estimates), after a contraction of 7.3% in 2020-21. Centre expects the level of real economic output to surpass the pre-Covid-19 level of 2019-20.

1:36 pm: The data on government accounts for April to November 2021, released by the Controller General of Accounts (CGA), show that the fiscal deficit of the central government at end November 2021 stood at 46.2% of the budgetary estimates, compared to 135.1% during the same period in 2020-21 and 114.8% during the same period in 2019-20.

1:38 pm: The Economic Survey claims that almost all indicators show that the economic impact of the “second wave” in Q1 was much smaller than that experienced during the full lockdown phase in 2020-21 even though the health impact was more severe.

1:41 pm: As per the Economic Survey, total consumption, including both private and government consumption, staged stellar growth in real terms as per the advanced estimates for 2021-22, mostly on the basis on low base effect. However their share in GDP slipped marginally during this period.

1:45 pm: Investment to GDP ratio, as measured by Gross Fixed Capital Formation (GFCF), reached its highest level of 29.6% in 2021-22 after falling a year ago. Even though private consumption is still recovering, the government is confident of reclaiming strong investment levels.

1:55 pm: India’s total exports are expected to grow by 16.5% in 2021-22 surpassing pre-pandemic levels. Imports also recovered strongly with revival of domestic demand and continuous rise in price of imported crude and metals. Imports are expected to grow by 29.4% in 2021-22 surpassing corresponding pre-pandemic levels.

2:05 pm: It was inflation in 'fuel and light' and miscellaneous segments that pushed retail inflation during during April-December 2021-22. Inflation is currently above RBI's tolerance band of 6%, which might force the central bank to hike interest rates. Meanwhile, wholesale inflation, after remaining benign for previous financial years, has seen a sharp uptick during April-December 2021-22. While the low base effect did play a role in this surge, rising input costs and global commodity prices were also key drivers.

2:30 pm: Despite rising fiscal deficit and government debt due to fiscal support and health expenses in 2020-21, strong rebound in government revenues in 2021-22 has put the government in a position to meet its fiscal deficit target.

3:55 pm: Newly-appointed CEA V. Anantha Nageswaran opened the press conference on the Economic Survey 2021-22.