New Delhi: India’s economy is projected to grow at the rate of 8 to 8.5% in the next financial year as the growth in 2022-23 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, said the Economic Survey for 2021-22 laid by the finance minister Nirmala Sitharaman in the Parliament today.
The Economic Survey which has been authored by the Principal Economic Advisor Sanjeev Sanyal said the growth rate for the current financial year (April-March 2022 period) was expected to grow at 9.2% after witnessing a contraction of 7.3% in the last fiscal.
"The year ahead is also well poised for a pick-up in private sector investment with the financial system in a good position to provide support to the revival of the economy," Sanyal said in the survey.
The Annual Economic Report Card of the Central Government says this projection was based on the assumption that there will be no further debilitating pandemic related economic disruption and monsoon will be normal.
In order to arrive at the GDP growth projection of 8-8.5% next year, the survey also included other factors such as withdrawal of global liquidity by major central banks which will be orderly in nature and it assumes that crude oil prices will be in the range of US$70-$75/ per barrel. The survey says global supply chain disruptions will steadily ease over the course of the year.
The Survey said the GDP growth projection was in line with the World Bank’s and Asian Development Bank’s latest forecasts of real GDP growth of 8.7 per cent and 7.5 per cent respectively for 2022-23.
"As per the IMF’s latest World Economic Outlook (WEO) growth projections released on 25th January 2022, India’s real GDP is projected to grow at 9 per cent in both 2021-22 and 2022-23 and at 7.1 per cent in 2023-24. This projects India as the fastest-growing major economy in the world in all these three years," it said.
If India's economy clocks a growth rate of over 8% as projected by the government report card then it would be the fastest growing economy in the world as China is projected to grow at 4.8% in 2022 and 5.2% in 2023.
According to the International Monetary Fund’s (IMF) World Economic Outlook, the world economy is set to grow at 4.4% in 2022 and at 3.8% in 2023.
