The Indian Economy will take two years to reach and go past the pre-pandemic level, according to the Economic Survey 2020-21. "These projections are in line with IMF estimate of real GDP growth of 11.5 per cent in 2021-22 for India and 6.8 per cent in 2022-23. India is expected to emerge as the fastest growing economy in the next two years as per IMF," the Survey predicts.
Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2020-21 in Parliament on Friday. The Economic Survey 2020-21 predicted that India's real GDP growth for the fiscal year 2021-22 will expand 11 per cent. "After an estimated 7.7 per cent pandemic-driven contraction in 2020-21, India's real GDP is projected to record a growth of 11.0 percent in 2021-22 and nominal GDP by 15.4 per cent," says the Economic Survey 2020-21.
It says that reforms and easing of regulations like push to infrastructural investments, boost to manufacturing sector through the Productivity Linked Incentive Schemes, recovery of pent-up demand for services sector, increase in discretionary consumption subsequent to roll-out of the vaccine and pick up in credit will lead to further boost to the economy.
These projections are in line with IMF estimate of real GDP growth of 11.5 per cent in 2021-22 for India and 6.8 per cent in 2022-23, it says, adding that India is expected to emerge as the fastest growing economy in the next two years as per IMF.
The Survey said that the Covid-19 pandemic engendered a once-in-a-century global crisis in 2020 -- a unique recession where 90 per cent of countries are expected to experience a contraction in GDP per capita. "While the lockdown resulted in a 23.9 per cent contraction in GDP in Q1, the recovery has been a V-shaped one as seen in the 7.5 per cent decline in Q2 and the recovery across all key economic indicators," it says.
Stressing about India's Rs 30 lakh crore stimulus package against Covid-induced crisis, the Survey says: "On the economic policy front, India recognised that unlike previous crises, the Covid pandemic affects both demand and supply, " says the Survey, adding that therefore, a slew of structural reforms were announced. "Together, these would help to expand supply significantly in the medium to long term," it adds.