India's Economic Survey report each year is presented by the Union finance minister before the Budget. In 2022, the Economic Survey was tabled in the Parliament by Finance Minister (FM) Nirmala Sitharaman. She mentioned the present state of the economy of the country, and suggested some policy measures. The most important figure in the Economic Survey is the GDP forecast for the forthcoming fiscal year. In 2022, FM Sitharaman has projected a GDP growth of 8% - 8.5% for FY 2022-23, as advised by the Chief Economic Advisor (CEA) of India. Earlier, in the first advance estimates of economic output, the National Statistical Office (NSO) anticipated a GDP growth rate of 9.2% for FY 2021-22. Importantly, FM Sitharaman will be presenting the Union Budget for the next fiscal on February 1, 2022.
Sector wise growth
The Economic Survey, 2022 stated that the agriculture sector was the least impacted sector by the pandemic. The agri-sector is expected to grow by 3.9% in 2021-22, whereas it developed by 3.6% in the earlier fiscal. For the government, crop diversification towards oilseeds, pulses and horticulture is to be given priority. The Economic Survey said that the services sector is expected to see 8.2% growth in 2021-22. India's consumption, on the other hand, has increased by 7.0% in 2021-22 with significant support by the government. The Union government's fiscal support and the health response caused a fiscal deficit, the government debt can rise in 2020-21. So, the Union government's finances can witness consolidation in 2021-22.
Additionally, climate finance will remain critical to successful climate action for India, if the country wants to achieve the net zero carbon emission target by 2070.
In April-November 2021, IPOs of 75 companies were listed, garnering `89,066 crore, as compared to 29 companies raising ` 14,733 crore during April-November 2020.
The IPO sector has seen significant growth in the recent period. The survey said, “The money raised by IPOs has been greater than what has been raised in any year in the last decade by a large margin.”
The survey has also mentioned data by the Securities and Exchange Board of India (SEBI) which has shown that eight IPOs were subscribed more than 100 times in 2021, and 11 IPOs were subscribed between 50 and 100 times during the same time. The survey added, “The tremendous response by all categories of investors in IPOs of companies was reflective of not only the confidence in markets, but also that in corporate sector performance and prospects of the economy in the long run.”
Vaccination drive to combat economic challenges
The Economic Survey has focussed on the government's measures to combat the challenges India faced due to the pandemic, and the massive vaccination drive has been one of them. The report said that India's economic growth will be supported by widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth, and availability of fiscal space to ramp up capital spending. The report also mentioned, "The projection is based on the assumption that there will be no further debilitating pandemic related economic disruption.”
Appointment of new Chief Economic Advisor (CEA)
Before the budget session, the Chief Economic Advisor (CEA) of India leads a team to author the Gross Domestic Product (GDP) projection for the forthcoming fiscal year. The Union government has recently appointed economist V Anantha Nageswaran as the new CEA, just prior to the Union Budget. He is an academic and former executive with Credit Suisse Group AG and Julius Baer Group. Before Nageswaran, India's CEA was K V Subramanian and he completed his three years term in December 2021.