The Economic Survey 2020-21 tabled by the union finance minister Nirmala Sitharaman on Friday ahead of the union budget stated that India’s real GDP is expected to grow at 11% in the next fiscal year 2021-22.
The Economic survey predicted a “V-shaped” economic recovery for the country stating that the Covid-19 vaccination program will be one of the triggers for the growth. However, it cautioned that it will take at least the next two years for India to be able to reach back its pre-pandemic GDP levels.
Prepared by the economic adviser KV Subramanian and his team the survey said that the government is going to miss its fiscal deficit target of 3.5% of GDP this year as it has to focus more on reviving growth and economy.
It pointed out that economic activities in the country were severely hit due to coronavirus pandemic since March 2020. Millions of people have lost jobs and agriculture remained the silver lining. It said, “Agriculture has remained the silver lining, while contact-based services, manufacturing and construction sectors were the worst hit by the Covid-19 pandemic.”
The Economic Survey 2021 is of particular significance as it was recorded during Covid pandemic.
Economic Surveys are generally presented a day before the budget, but the tradition was broken as the budget follows a weekend this year.