Economic Survey 2021 Overview – Burning Issues – Free PDF Download

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?

1. Headline Inflation measures the price rise in food, fuel and all other commodities.
2. Core Inflation does not measure the price rise in fuel and food articles.

1. 1 only
2. 2 only
3. Both 1 & 2
4. None of the above

Economic Survey 2021 | Free PDF

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