Table of Contents
What is Economic Survey?
- The Economic Survey is nothing but an annual document prepared by advisers to the finance minister and tabled in the Parliament a day before the Union budget.
- Economic Survey is the first document tabled in the Parliament after the beginning of the Budget session.
- It is a review of the developments in the Indian economy over the previous 12 months.
- The survey is essentially a summary of the performance on major development programmes, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term.
- Govt is not bound to follow its recommendations
Volume 1
- It attempts to capture ideas that-
- Encapsulate the current economic trends
- Provides evidence based economic analyses of recent economic developments.
Volume 2
- It reviews recent developments in the major sectors of the
- It is supported by relevant statistical tables and data.
- This would serve as the ready reckoner for the existing status and policies in a sector.
blue sky thinking
- The 2020-21 survey has been conducted in the background of the COVID-19 pandemic and the economic impact of the COVID-19 pandemic in India.
- A foundational theme of a survey as a result of the pandemic has been “Saving Lives and Livelihoods”.
GDP
- FY21 GDP estimated to contract by 7.7%
- Estimated real GDP growth for FY22 at 11%,
- while nominal GDP may climb by 15.4%
Major highlights
- Agriculture has remained the silver lining
- Contact based services, manufacturing, construction hit hardest by pandemic
- Govt consumption and net exports have cushioned the growth from diving further down
- V-shaped economic recovery supported by mega vaccination drive
- India to log 2% current account surplus; first positive balance in 17 years
- In 2 years India could be the fastest growing economy as per IMF
- SURVEY calls for more active, countercyclical fiscal policies.
- Bare Necessities Index
Important points
- India enters among top 50 innovating countries; improves rank from 81 to 48 on Global Innovation Index
- Govt raises Rs 15,220 cr from disinvestment against FY21 target of Rs 2.1 lakh crore.
- Bids for private trains likely to be completed by May 2021; Pvt trains likely to be introduced in 2023-24
- Bangladesh poised to emerge as dominant exporter, holds a lesson for India- CAGR of 6% during 2011-2019, 0.9% for India, and 0.4% for the world.
- Elevated stock market levels raise concerns on gap between financial and real sector
- PLI scheme to make India integral part of global supply chain
- Survey suggests change in weighage of food items to gauge true picture of inflation
Q) Which of the following statements regarding Inflation is correct?
- Headline Inflation measures the price rise in food, fuel and all other commodities.
- Core Inflation does not measure the price rise in fuel and food articles.
- 1 only
- 2 only
- Both 1 & 2
- None of the above
Economic Survey 2021 | Free PDF