The early lockdown saved lives and helped in ensuring faster economic recovery, Chief Economic Advisor Krishnamurthy Subramanian said in an address to the media. “India's policy response to Covid-19 was guided by the realization that GDP growth will come back, but not lost human lives,” Mr Subramanian said in his address to the media after presentation of the Economic Survey.
Krishnamurthy Subramanian highlighted that India was able to effectively manage both, the spread of Covid-19 and fatalities and went on to dedicate the economic survey to Covid warriors. "When the history judges India for its response to this once-in-a-century health crisis, it will be hailed for its mature and bold response," the Chief Economic Advisor said and went on to dedicate the Economic Survey to all COVID warriors.
The Economic Survey, in fact, observed that the stringency of the COVID-19 lockdown correlates with negative economic growth in the same period but with positive growth over the long-term time horizon. India's economy could contract 7.7 per cent in the financial year that ends on March 31, pulled down mainly by the coronavirus pandemic and the weeks-long nationwide lockdown to contain the disease. But, as the survey itself projected, the real GDP growth could be 11 per cent in the next financial year.
The Economic Survey has, in fact, forecast a “V-shaped” recovery for the Indian economy and real GDP growth of 11 per cent in 2021-22. The expected economic recovery will ride on a mega vaccination drive and robust recovery in the services sector, as well as growth in consumption and investment, the economic survey pointed out.
The Finance Minister Nirmala Sitharaman had tabled the economic survey in the Lok Sabha earlier in the day.