INSUBCONTINENT EXCLUSIVE:
The economic survey projects a 'V shaped' economic recovery for the country
independenceAccording to the advance estimates by National Statistics Office (NSO), the country's real GDP to record a 11.0 per cent
growth in financial year 2021-22 and the nominal GDP is likely to grow by 15.4 per cent - the highest since independenceGovernment needs to
see agriculture as modern business enterpriseThe Economic Survey noted that the government to see farm sector as a modern business
enterprise for which urgent reforms are required to enable sustainable and consistent growth
The agricultural sector has shown its resilience amid the adversities of COVID-19 induced lockdowns.Private sector needs to contribute more
to innovation and R-D Business sector contribution to gross R-D expenditure in India is much less as compared to government, when compared
with scenario in top 10 economies, according to economic surveyEconomic survey calls for greater focus on core inflationEconomic Survey 2021
The focus on CPI-combined inflation may not be appropriate as food inflation, which contributes significantly to CPI-C, is driven primarily
by supply-side factors.India's exports may go down: Economic SurveyThe 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.Economic Survey calls for asset quality reviewAn
asset quality review (AQR) exercise must be conducted immediately after the forbearance is withdrawn, said the Economic Survey 2021
Forbearance represents emergency medicine that should be discontinued at the first opportunity when the economy exhibits recovery, not a
staple diet that gets continued for years
Economic Survey creates an Index of Bare NecessitiesThe 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.COVID-19 crisis impact on healthcareEconomic Survey
2021 notes that endemic information asymmetry problems lead to market failures in healthcare
Private hospitals in the country charge much higher for the same treatment, as compared to government hospitals, said Chief Economic Advisor
Higher charges levied by private hospitals do not necessarily ensure higher quality of care, according to economic surveyHealthcare spending
must increase to 2.5-3% of GDPAn increase in public healthcare spending from one per cent to 2.5-3 per cent of gross domestic product can
decrease the out-of-pocket expenditure on health, noted economic survey 2021.India may witness current account surplus after 17 yearsThe
country is expected to witness a current account surplus after a gap of 17 years
External debt decreases by $ 2.0 billion, says Chief Economic Advisor.Economic Survey calls for counter-cyclical fiscal policyEconomic
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.India's sovereign credit ratings do not reflect the economy's fundamentals:
Economic SurveyThe 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: Economic SurveyGrowth 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
Subramanian.Reason behind India's V-shaped economic recoveryThe 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 surveyStringency of COVID-19 lockdown
correlates with negative economic growthEconomic 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.Early intense lockdown saved lives, helped
faster recovery: CEA SubramanianDuring high uncertainty, policy should minimize large losses
Krishnamurthy Subramanian began his press conference on Economic Survey 2020-21
Budget Estimates In 2020-21The 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 surveyEconomic Survey 2021 Projects 11% Growth Next Fiscal
nationwide COVID-19 vaccination drive and a rebound in consumer demand.Economy Set To Contract 7.7% In Current Financial yearThe economy is
projected to contract 7.7 per cent in the current financial year ending March 31, after economic activity was hit by the pandemic, leading
to job losses for millions of workers, particularly employed by small businesses.Finance Minister Nirmala Sitharaman tabled Economic Survey
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.
