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Economic Survey 2021-22 | Economic Survey 2021-22 Highlights | Download Economic Survey 2021-22 PDF

Economic Survey 2021-22: Relevance for UPSC Exam

  • GS Paper 3: Indian Economy– Issues relating to planning, mobilization of resources, growth, development and employment; Government Budgeting.

 

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Economic Survey 2021-22: Context

  • Recently, the Economic Survey 2021-22 was tabled by Finance Minister in the Parliament Budget Session 2022.
  • Economic Survey 2021-22 expects the GDP to grow by 9.2% this year and 8% to 8.5% in 2022-23.
    • Economic Survey also expressed concerns about the implications of hardening inflation and energy prices.
  • When compared to pre-pandemic levels, recovery is most significant in exports followed by government consumption and gross fixed capital formation.
  • Also check:- UPSC CSE 2022 Official Notification Out! Download Now!

UPSC CSE 2022 Eligibility Criteria

Economic Survey and Chief Economic Advisor | About, Roles and Responsibilities

Economic Survey 2021-22 | Economic Survey 2021-22 Highlights | Download Economic Survey 2021-22 PDF_40.1

Economic Survey 2021-22 Highlights: Key Points

  • Economic Growth: Economic Survey 2021-22 expects the GDP to grow by 9.2% this year and 8% to 8.5% in 2022-23. This economic growth is based on the following assumptions-
    • 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 US$70-$75/bbl, and
    • Global supply chain disruptions will steadily ease over the course of the year
  • Agriculture sector: Economic Survey 2021-22 says that agriculture is least hit by pandemic, sector to grow by 3.9% in 2021-22 after growing 3.6% the previous year.
    • Crop diversification towards oilseeds, pulses and horticulture needs to be given priority.
  • Industrial Sector: Industrial sector did go through a contraction and now it is about 4.1 per cent above pre-pandemic levels.
  • Service Sector: The segment of service sector that includes tourism, travel, and hotels is still 8.5 per cent below where it was before the pandemic. It is a sector that is still impacted.
  • Drivers of Economic growth: Economic Survey 2022 says that the 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.
  • Consumption: Government consumption has recovered well but the private consumption and segments such as travel, trade and hotels were yet to fully recover.
    • The stop-start nature of repeated pandemic waves makes it especially difficult for these sub-sectors to gather momentum.
  • Investment: Economic survey 2022 says that the country’s investment to GDP ratio had hit 29.6% in 2021-22, the highest level in seven years.
    • This capital formation attributed is to the government’s policy thrust on quickening the ‘virtuous cycle of growth via capex and infrastructure spending’.
    • 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.
  • Risks to economic growth: Economic Survey acknowledges following risks to global economy-
    • New COVID-19 variant: Such as Omicron which is sweeping across the world.
    • Shortage of inputs such as semiconductors
    • Inflation: Economic Survey acknowledges the inflation jumping up in most countries, and
    • Cycle of liquidity withdrawal being initiated by major central banks.
  • Start-up Capital: According to the Economic Survey 2021-22, Delhi has replaced Bengaluru as the startup capital of India as the national capital added over 5,000 startups between April 2019 and December 2021.
    • With a total of 11,308 startups, Maharashtra has the highest number of recognised startups in the country.
  • MGNAREGA Job demand: An analysis of the latest data on demand for work under MGNREGS suggests the following trends in the rural labour market-
    • MGNREGS employment peaked during the nation-wide lockdown in 2020
    • The demand for MGNREGS work has stabilised after the second Covid wave;
    • Aggregate MGNREGS employment is still higher than pre-pandemic level.
  • Rise in Tax and Non-tax Revenue: Economic survey 2021-22 reports that there has been a sharp increase in both tax as well as non-tax revenue.
  • Current Account: Economic Survey 2022 pointed out that a strong recovery was seen in imports, rendering India’s net exports negative for the first half of the year, from a surplus in 2020-21.
    • India has thus recorded a modest current account deficit of 0.2% in the first half, but robust capital flows in the form of continued inflow of foreign investment were sufficient to finance it.

 

Download Economic Survey 2021-22 pdf, here 

Also check:- UPSC CSE 2022 Official Notification Out! Download Now!

UPSC CSE 2022 Eligibility Criteria

 

Economic Survey and Chief Economic Advisor | About, Roles and Responsibilities

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