New Delhi: According to the Economic Survey 2021-22 tabled in the parliament on Monday, India’s Gross Domestic Product (GDP) is expected to expand by 9.2% in the current financial year. Finance Minister Nirmala Sitharaman tabled the annual report in Lok Sabha on the first day of the Budget Session of Parliament.
‘Advance estimates suggest that the Indian economy is expected to witness real GDP expansion of 9.2% in 2021-22 after contracting in 2020-21. This implies that overall economic activity has recovered past the pre-pandemic levels’, the Economic Survey noted. 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 even though the health impact was more severe, it said. Agriculture and allied sectors have been the least impacted by the pandemic and the sector is expected to grow by 3.9% in 2021-22 after growing 3.6% in the previous year.
Advance estimates suggest that the GVA of Industry (including mining and construction) will rise by 11.8% in 2021-22 after contracting by 7% in 2020- 21. The Services sector has been the hardest hit by the pandemic, especially segments that involve human contact. This sector is estimated to grow by 8.2% this financial year following last year’s 8.4% contraction.
Total Consumption is estimated to have grown by 7.0% in 2021-22 with significant contributions from government spending. Similarly, Gross Fixed Capital Formation exceeded pre-pandemic levels on the back of ramped up public expenditure on infrastructure. Exports of both goods and services have been exceptionally strong so far in 2021-22, but imports also recovered strongly with recovery in domestic demand as well as higher international commodity prices.