- India is expected to emerge as the fastest growing economy in the next two years as per IMF, says the Economic Survey 2020-21.
- “India undertook short-term pain to get long-term gain.” – Chief Economic Advisor (CEA) Krishnamurthy Subramaniam.
According to the Economic Survey 2020-21, the Indian Economy is likely to take 2 years to reach and go past the pre-pandemic level. The survey predicts, “These projections are in line with IMF estimate of real GDP growth of 11.5 per cent in 2021-22 for India and 6.8 per cent in 2022-23. India is expected to emerge as the fastest growing economy in the next two years as per IMF,”
On Friday, Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2020-21 and it was presented by the chief economic advisor (CEA) Krishnamurthy Subramaniam. The survey predicted that India’s real GDP growth for the fiscal year 2021-22 will expand by 11%. The survey said, “After an estimated 7.7 per cent pandemic-driven contraction in 2020-21, India’s real GDP is projected to record a growth of 11.0 per cent in 2021-22 and nominal GDP by 15.4 per cent,”
The survey also noted that reforms and easing of regulations like the push to infrastructural investments, boost to manufacturing sector through the Productivity Linked Incentive Schemes, recovery of pent-up demand for the services sector, increase in discretionary consumption subsequent to the roll-out of the vaccine and pick up in credit will lead to further boost to the economy.
As the projections for the Indian Economy fall in line with the IMF (International Monetary Fund) estimate of real GDP growth of 11.5% in 2021-22 for India, the survey stated that India is most likely to emerge as the fastest growing economy in the next 2 years.
Speaking about India’s policy response against COVID-19 pandemic, CEA Krishnamurthy Subramaniam said during a press conference, “India’s response stemmed from humane principle advocated eloquently in the Mahabharata ‘Saving a life that is in jeopardy is the origin of dharma’,”
“The policy response which India came up with was mature and a farsighted one. India undertook short-term pain to get long-term gain. The ‘V-shaped recovery’ makes India a sui generis case in mature policymaking,” Subramaniam added stating how the government’s measure of nationwide lockdown prevented 3.7 million cases of the coronavirus disease (Covid-19) and 100,000 deaths. “Early, intense lockdown not only saves more human lives but also enables quicker, better economic recovery,” he said dedicating the survey to the frontline workers helping India battle the pandemic.
Adding to the fact, the survey highlighted, “While the lockdown resulted in a 23.9 per cent contraction in GDP in Q1, the recovery has been a V-shaped one as seen in the 7.5 per cent decline in Q2 and the recovery across all key economic indicators,”