The Ministry of Finance through press release dated 29 January 2021 has issued the Economic Survey 2020-21. The following is the highlights of the economic data revealed by the Economic survey:
- COVID-19 pandemic ensued global economic downturn, the most severe one since the Global Financial Crisis
- As per the advance estimates by NSO, India’s GDP is estimated to grow by (-) 7.7% in FY21
- India’s real GDP to record a 11.0% growth in FY2021-22 and nominal GDP to grow by 15.4%
- Exports expected to decline by 5.8% and imports by 11.3% in the second half of FY21
- On supply side, Gross Value Added (GVA) growth pegged at -7.2% in FY21 as against 3.9% in FY20
- Agriculture set to cushion the shock of the COVID-19 pandemic on the Indian economy in FY21 with a growth of 3.4%
- Industry and services estimated to contract by 9.6% and 8.8% respectively during FY21.
The Following Suggestions are provided by the economic survey:
- A fresh asset quality review of Indian banks as soon as the Covid-19 relief measures are lifted.
- A greater focus on core inflation is warranted to drive policy-making.
- Setting up a sectoral regulator, and a rating agency like body, to assess the quality of healthcare providers in the country.
- Higher research and development spending by the private sector to boost India’s innovations.
- India’s administrative process is suffering from overregulation, due to government’s approach to account for every possible outcome, which needs alteration.
