Economic survey summarises state of Indian economy

New Delhi, Jan 29 (PTI):
The economic survey tabled in parliament on Friday summarised performance of India economy during the fiscal year.
Economic contraction is projected at 7.7 pc in FY21. 11 pc GDP growth projected in FY22, farm sector remains silver lining. Govt consumption, net exports have cushioned growth from further diving down. Exports to decline by 5.8 pc, imports by 11.3 pc in 2nd half of FY21. India expected to have a Current Account Surplus of 2 pc of GDP this fiscal, a historic high after 17 years. India’s sovereign credit ratings do not reflect its fundamentals, India’s willingness to pay is unquestionably demonstrated through its zero sovereign default history.
India’s health infrastructure must be agile to respond to pandemics – healthcare policy must not become beholden to ‘saliency bias’.
India over-regulates the economy resulting in regulations being ineffective even with relatively good compliance with process. The solution is to simplify regulations and invest in greater supervision which, by definition, implies greater discretion.
Survey suggests asset quality review exercise immediately after the forbearance is withdrawn. Forbearance represents ‘emergency medicine’ that should be discontinued at the first opportunity when the economy exhibits recovery, not a ‘staple diet’ that gets continued for years.
India remained a preferred investment destination with FDI pouring in amidst global asset shifts towards equities and prospects of quicker recovery in emerging economies Net FPI inflows recorded an all-time monthly high of USD 9.8 billion in November 2020, as investors’ risk appetite returned. India only country among emerging markets to receive equity FII inflows in 2020.