Thread by @PIB_India

#LIVE now

Press Conference on #EconomicSurvey 2021-22, by Chief Economic Advisor V . Anantha Nageswaran

Economic Survey 2021-22 has been tabled in Parliament today

🎥

Catch LIVE Updates

Govt. has pursued 4 pronged approach to prepare economy for post-#Pandemic world
Short-term support to economy, especially to vulnerable sections

While keeping a firm eye on fiscal stability in medium term

Structural & supply-side reforms

Process reforms

- CEA
#EconomicSurvey

From a descriptive document published as part of Union #Budget in 1950s, #EconomicSurvey evolved to be a lot more substantial and analytical over the years, presented as a separate document a day before the Budget

- Principal Economic Advisor

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There has been a revival of economic activity to pre-pandemic levels in 2021-22, as reflected in national accounts and high frequency data

Economic cost of 2nd wave of #COVID19 #Pandemic was much milder in comparison to first wave

- Principal Economic Advisor

#EconomicSurvey

Economic cost of second wave of pandemic was much milder in comparison to first wave

- Principal Economic Advisor

#EconomicSurvey

#LIVE Now

#Agriculture sector is now little short of 8% above pre-#Pandemic levels

#Industrial sector contracted, revived, now ~4.1% above pre-pandemic level

#Services sector is yet to reach pre-pandemic level

#EconomicSurvey
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Government consumption has been reasonably strong, but private consumption still lags pre-#Pandemic level (mainly due to hit faced by contact intensive sectors)

Exports have been major growth driver, imports too strong

#GDP is 1.3% above pre-pandemic level

#EconomicSurvey

We live in uncertain times; geopolitical risks bubbling up, oil prices have spiked up, withdrawal of global liquidity by major central banks likely

Hence, can our macroeconomic indicators give us a buffer during these times?

Asks Principal Economic Advisor

#EconomicSurvey

There has been a very sharp increase in both tax and non-tax revenues; this is great because it supports capital expenditure which too is above pre-#Pandemic level

- Principal Economic Advisor

#EconomicSurvey

Deficit numbers show that fiscal deficit for Apr - Nov 2021 is not only below what it was for the same period last year, but also below what it was in pre-#Pandemic phase in nominal terms

- Principal Economic Advisor
#EconomicSurvey

Financial sector has weathered the #Pandemic shocks rather well

Both Gross and Net NPA levels have continued to steadily decline in last two years, banks are getting better capitalized as well

- Principal Economic Advisor
#EconomicSurvey

Bank credit has begun to tick up again, following decline in last two years

We are in record territory as regards resources raised by capital markets, showing a change in animal spirits in the #Economy

- Principal Economic Advisor
#EconomicSurvey

Compared to 2016-17, the #Startup scenario has remarkably changed, with startup hubs all across the country

This shows a startup culture taking root in the country in a clear manner

- Principal Economic Advisor
#EconomicSurvey

@startupindia

Even during difficult times of lockdown, current account moved into surplus in Q1 of 2020-21

Capital flows have been strong, we have a very healthy balance of payments surplus, resulting in accumulation of foreign exchange reserves of $ 634 Billion

- Principal Economic Advisor

#CPI inflation remains in tolerance band at 5.6%

WPI inflation is back up in double digits (partly due to low base last year)

We need to be concerned especially about imported inflation due to #Energy prices

- Principal Economic Advisor
#EconomicSurvey

Why do Onions and 🍅tomatoes go through massive price spikes?

a) Lot of seasonality, in line with harvesting cycle

b) Irregular components, contributed by weather shocks

Solution: financial instruments and supply chains which can smoothen this out, says #EconomicSurvey

#Vaccination status is a macroeconomic stability indicator, considering macroeconomic risk posed by #COVID19 waves

And in vaccination, we have done rather well, observes #EconomicSurvey

What has been unique about 🇮🇳India's policy strategy?

Barbell Strategy - combining safety nets for vulnerable sections and iterative updating of strategy based on high frequency data, leading to agile approach

- Principal Economic Advisor explains
#EconomicSurvey

Spending on social services has been significantly ramped up in recent years, in various categories such as #Health, #Education and others, in line with Government's policy of providing safety nets to vulnerable sections in the wake of #COVID19 pandemic

#EconomicSurvey

Create flexibility in the economy on one hand, through deregulation and reforms, thereby allowing the economy to better respond to uncertainty

On the other hand, improve resilience

- 2 pillars of supply side Barbell Strategy being adopted by nation, explains #EconomicSurvey