Economic Survey 2021: Union Finance Minister Nirmala Sitharaman on Friday, January 29, tabled the Economic Survey that comprises details of the state of the economy ahead of the government's Budget for the fiscal year beginning April 1, 2021. The economic survey projects a 'V shaped' economic recovery for the country. The Economic Survey 2020-21 is authored by a team led by Chief Economic Adviser Krishnamurthy Venkata Subramanian and details the state of different sectors of the economy as well as reforms that should be undertaken to accelerate growth. The government forecast an economic recovery of 11 per cent for fiscal 2021-22 in the annual economic statement, on the back of the roll out of the COVID-19 vaccination drive. (Also Read: Economic Survey 2021 Projects 11% Growth Next Fiscal Year )
Here are the highlights of today's Economic Survey 2021:
The country's exports are expected to contract by 5.8 per cent and imports by 11.3 per cent during the second half of the current financial year, though the implementation of various measures by the government would help support exports going forward, according to Economic Survey 2021.
The government launched a composite index called the bare necessities index to measure the quality of housing, toilet, drinking water as well as clean cooking fuel as part of the economy survey presented. The Bare Necessities Index will measure the progress in delivery of the bare necessities.
The country is expected to witness a current account surplus after a gap of 17 years. The foreign exchange reserves rose to all-time high of $ 586.1 billion as of January 8, 2021. External debt decreases by $ 2.0 billion, says Chief Economic Advisor.
Economic Survey calls for counter-cyclical fiscal policy to be an important point of emphasis, where the government steps in when the private sector does badly and steps back when the private sector does well.
The survey said that sovereign credit ratings methodology must be amended to reflect economies' ability and willingness to pay their debt obligations, and suggested that developing economies must come together to address this bias and subjectivity inherent in sovereign credit ratings methodology.
Growth leads to debt-sustainability, but not vice versa, according to Economic Survey. If the interest rate is less than growth rate, debt as a percentage of GDP declines. The change in growth rate is key to influencing this, hence growth is instrumental to attaining sustainability of debt, informed CEA KV Subramanian.
The V-shaped economic recovery is due to mega vaccination drive and robust recovery in the services sector as well as growth in consumption and investment, according to economic survey
Economic Survey 2021 has observed that the stringency of the COVID-19 lockdown correlates with negative economic growth in the same period but with positive growth in the future time period.
Chief Economic Advisor Krishnamurthy Subramanian began his press conference on Economic Survey 2020-21. 'This year's survey is dedicated to all COVID Warriors who upheld India' said CEA Krishnamurthy Subramanian.
The government's fiscal deficit is projected to overshoot the initial estimates, 3.5 per cent of gross domestic product (GDP) in the financial year ending in March, according to the economic survey
The survey forecasts an economic growth of 11 per cent for the fiscal year beginning on April 1, 2021, on the back of the beginning of a nationwide COVID-19 vaccination drive and a rebound in consumer demand.
Union Finance Minister Nirmala Sitharaman tabled the economic survey 2021 in the Lok Sabha on Friday, January 29. The Economic Survey 2020-21, is authored by a team led by Chief Economic Adviser Krishnamurthy Venkata Subramanian. It details the state of different sectors of the economy as well as reforms that should be undertaken to accelerate growth.