Economic Survey 2021
Dr. Niranjan Hiranandani, President, NAREDCO The relevance of infrastructure investments by the Government as an integral part of the economy’s bounce-back, as also the aspect of fiscal multipliers being much higher in a recession/slowdown than during peaks were among the important points made in the Economic Survey 2021. The survey is an assessment of the year gone by and some estimates about the future, in the era of the Covid-19 vaccine, the survey comes up with some positives, if we were to look at doing a bit of crystal ball gazing. This year's economic survey has to be seen in context of 2020 and the unprecedented impact on global economy due to coronavirus pandemic. “The Indian Budget faces the challenge of bringing the economy back on track. According to the Economic Survey, the economy, battered by the coronavirus lockdown, is expected to see a strong recovery in the 2021-22 fiscal year. The gross domestic product (GDP) contraction for the full fiscal is projected at -7.7 per cent, with a V-shaped recovery in the next. Hopefully, the economy will not just recover, but also go on to achieve the target of becoming a $5 trillion economy. I concur with the perspective, what the Economic Survey terms as ‘counter-cyclical fiscal policy’. This is a situation where the government steps in when the private sector does badly and steps back when the private sector does well, this move will augur well for India’s GDP growth levels. The Indian economy seems to have come out in a better condition as compared to other countries post the pandemic, thanks to the proper handling. The Economic Survey 2021 estimates FY22 (April 2021 to March 2022) GDP growth at 11 per cent; the growth recovery is expected to be driven by consumption – we look forward to the Budget powering this into a reality.
Tags : Interviews Dr. Niranjan Hiranandani NAREDCO Infrastructure economy investments Economic Survey 2021