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India's GDP To Grow At 8-8.5% For FY23: Economic Survey

The Economic Survey 2021-22 stated that the year ahead is 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.

Photo Credit : PTI

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India to witness gross domestic product (GDP) growth of 8.0 to 8.5 per cent in 2022-23, 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, according to Economic Survey tabled by Finance Minister Nirmala Sitaraman on Monday. 

The Economic Survey 2021-22 stated that the year ahead is 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. 

"The growth projection for 2022-23 is based on the assumption that there will be no further debilitating pandemic related economic disruption, monsoon will be normal, withdrawal of global liquidity by major central banks will be broadly orderly, oil prices will be in the range of  USD 70-75/bbl and global supply chain disruptions will steadily ease over the course of the year," the survey stated. 

The survey also mentioned that the projection is comparable 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 January 25, 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.

Referring to First Advance Estimates, the survey stated that the Indian economy is estimated to grow by 9.2 per cent in real terms in 2021-22, after a contraction of 7.3 per cent in 2020-21.

"Almost all indicators show that the economic impact of the “second wave” in Q1 was much smaller than that experienced during the full lockdown phase in 2020-21," it revealed. 

The survey added that total consumption is estimated to have grown by 7.0 per cent in 2021-22 with government consumption remaining the biggest contributor as in the previous year. Government consumption is estimated to grow by a strong 7.6 per cent surpassing pre-pandemic levels.

"Private consumption is also estimated to have improved significantly to recover 97 per cent of corresponding pre-pandemic output level and it is poised to see stronger recovery with rapid coverage in vaccination and faster normalisation of economic activity," as per the survey. 


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Budget 2022 india gdp FY23 economic survey