Economic Survey 2022: 8 key points you need to know

The macroeconomic stability indicators in the government’s Economic Survey suggest that the country's economy is well-placed to take on the challenges of the financial year 2022-23.

Finance Minister Nirmala Sitharaman on Monday tabled the Economic Survey 2021-22 ahead of the Union Budget 2022.The Economic Survey 2021-22 shed light on different sectors of the economy as well as reforms that are needed in future to accelerate growth.The macroeconomic stability indicators in the government’s Economic Survey suggest that the country's economy is well-placed to take on the challenges of the financial year 2022-23.STRONG REVENUEThe survey pointed out that revenues have witnessed a strong revival in FY22. This means that the government has fiscal room to provide support if necessary. High Foreign Reserves, Foreign Direct Investment (FDI) and rising exports have provided a buffer against liquidity tampering.GDP ESTIMATESThe Economic Survey projected an 8-8.5 per cent gross domestic product (GDP) growth rate for the Indian economy in the 2022-23 fiscal year beginning on April 1.This compares to 9.2 per cent GDP expansion projected by the National Statistical Office (NSO) for ongoing financial year. It also noted that the GDP growth rate contracted by 7.3 per cent in 2020-21.AGIRCULTURE Agriculture and allied sectors remained the silver lining during the Covid-19 pandemic and are expected to grow by 3.9 per cent in 2021-22 after growing 3.6 per cent in the previous year.SERVICES SECTORThe Covid-19 pandemic has hit the services sector the hardest. This sector is projected to grow by 8.2 per cent this financial year following the previous fiscal's 8.4 per cent contraction.INDUSTRIAL SECTORThe growth of the industrial sector has been estimated at 11.2 per cent in FY22.CONSUMPTIONTotal consumption is estimated to have grown by 7.0 per cent in 2021-22 with significant contributions in the form of government spending.AIR INDIA PRIVATISATIONThe Economic Survey has highlighted that privatisation of Air India was a significant step in terms of boosting the privatisation drive and gathering disinvestment proceeds.INCREASE IN CAPITAL SPENDINGAccording to the Economic Survey, there can be a sharp increase in capital spending by the government as a demand and supply-enhancing measure.

ALSO READ | Budget 2022: 6 challenges govt needs to address this year