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India’s Real GDP to Grow to 11 percent in FY 2021-22: Economic Survey

Nirmala Sitharaman

On the first day of the budget session of the parliament, Finance Minister Nirmala Sitharaman on Friday introduced the Economic Survey detailing the state of different sectors of the economy as well as reforms that should be undertaken to accelerate growth ahead of the BJP led government’s budget for the fiscal year which is set to begin from April 1, 2021.


The Economic Survey 2020-21 has been authored by a team led by Chief Economic Adviser Krishnamurthy Venkata Subramanian.

The survey reports that the economy, which was battered by the lockdown due to COVID-19, is expected to see a strong recovery in the 2021-22 fiscal year.

The gross domestic product (GDP) contracted by a record 23.9 per cent in April-June and by 7.5 per cent in the second quarter.

For the full fiscal, the survey projected a contraction of 7.7 per cent and V-shaped recovery in the next.

India’s real GDP to record a growth of 11 per cent in 2021-22 and nominal GDP by 15.4 per cent-the highest since independence

Exports are expected to decline by 5.8 per cent and imports by 11.3 per cent in the second half of the year. India is expected to have a Current Account Surplus of 2 per cent of GDP in FY21, a historic high after 17 years.

On the supply side, Gross Value Added (GVA) growth is pegged at -7.2 per cent in 2020-21 as against 3.9 per cent in FY: 2019-20.

 

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