Finance Minister Nirmala Sitharaman tabled the Economic Survey 2022, in which India's GDP growth is seen at 9.2% for FY22, and at 8-8.5% for FY23. The survey highlights that the services sector was hit the hardest by the pandemic, especially those segments that involve human contact.
The services sector is seen growing 8.2% this financial year, from 8.4% last year. India's total consumption is likely to have grown 7% in 2021-22, with significant contributions from government spending.
The Economic Survey quoted, “With the vaccination programme having covered the bulk of the population, economic momentum building back and the likely long-term benefits of supply-side reforms in the pipeline, the Indian economy is in a good position to witness GDP growth of 8.0-8.5 per cent in 2022-23.”
The agricultural sector growth is likely to rise to 3.9%, from 3.6% a year ago, as it was the least impacted by COVID-19. However, the survey warned that India needs to be cautious about imported inflation, especially from elevated global energy prices.
It further added, “Growth in 2022-23 will be supported by widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth, and availability of fiscal space to ramp up capital spending.”
Revenue receipts rose more than 67% on year in April-November 2021, indicating that the government has fiscal space to provide additional support if necessary.
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