Economic Survey live updates: Expect economy to get back on pre-Covid growth path by FY23, says Chief Economic Advisor

The emphasis is on getting back to pre-Covid growth path. Expect that to happen by FY23. This year growth has been projected at 11 per centwith upside potential : CEA KV Subramanian to CNBC-TV18 .

. The much talked about topic ‘fam laws’ also featured in the Economic Survey 2020-21. The Survey strongly defended new farm laws, saying they herald a new era of market freedom which can go a long way in improving the lives of small and marginal farmers in India.

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. India will turn to Finance Minister Nirmala Sitharaman’s Budget on Monday to see how she prioritises spending to get the pandemic-ravaged nation back to being the world’s fastest-growing major economy. Sitharaman’s plan will likely rely on generous

public spending to spur activity, putting more money in the hands of the average taxpayer to boost consumption and easing rules to attract investments when she presents the budget at 11 am in New Delhi.

. Chief Economic Adviser (CEA) Krishnamurthy Subramanian on Saturday spelt out the points mentioned in the Economic Survey 2021, which was tabled by Finance Minister Nirmala Sitharaman, and used analogies from cricket to Mahabharata to explain the rationale behind government's decisions, including imposing an early lockdown.

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. Sanjeev Sanyal, Principal Eco Advisor told CNBC-TV18 that massive fiscal stimulus was provided but it was calibrated andthrough capex. "We timed the stimulus so that the supply side of the economy could respond," he said.

. Both economic growthand inequality have a similar relationship with socio-economic indicators. India must continue to focus on growth; redistribution can only be enabled when economic pie grows: CEA Subramanian

. India's sovereign credit ratings do not reflect its fundamentals, says Economic Survey.

. For India's supply-side policies, a slew of measures was undertaken to avoid disruptions in the labour market and financial distress which would lead to loss of productive capacity: CEA Subramanian

. "India is reaping the 'lockdown dividend' from the brave, preventive measures adopted at the onset of the pandemic...," it said in the opening chapter titled 'Saving Lives and Livelihoods Amidst a Once-in-a-Century Crisis'.

Unlike Oscar Wilde’s cynic, 'who knows the price of everything and the value of nothing,' India’s policy response to the pandemic stemmed fundamentally from the humane principle advocated eloquently in the Mahabharata that 'Saving a life that is in jeopardy is the origin of dharma.'

"Therefore, the 'price' paid for temporary economic restrictions in the form of temporary GDP decline is dwarfed by the 'value' placed on human life," said the survey.

. India's Economic Survey, presented ahead of the Union Budget for the fiscal year 2021-22, has forecasted a "V-shaped" economic recovery emphasising on the government's policy response to the coronavirus pandemic. Finance Minister Nirmala Sitharaman tabled the Economic Survey in the Parliament and CEA Arvind Subramanian spelt out the points mentioned in the Survey later.

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. Even without a lockdown, the Covid-19 pandemic would have created a significant economic impact,but what the lockdown did ensure is help a coordinated response, enabling saving lives and livelihoods, saidChief Economic Advisor KV Subramanian

. India demonstrated in its policy-making that the accelerator in a car can only be applied once you remove the brakes: CEA Subramanian

. India took short term pain for long term gain. India realised that GDP will recover and it has. "Lost lives cannot be brought back" was India's main motto during the pandemic, CEA Subramanian said.

India introduced a slew of structural reforms. India's demand-side measures more calibrated than other countries.V-shaped recovery shows how India has matured in policy-making, the CEA said.

. India's reforms focused on strengthening primary and secondary sectors, to create jobs: CEA Subramanian

. India's Covid response took into account the nuances of the pandemic: CEA Subramanian

. India's Covid-19 recovery similar to Team India's performance in Australia: CEA Subramanian

. This year's survey dedicated to all Covid warriors.During high uncertainty, policy should minimize large losses. India's policy response to Covid-19 was guided by the realization that GDP growth will come back, but not lost human lives. Early intense lockdown saved lives, helped faster recovery: Chief Economic Advisor (CEA)

. The Chapter 1 of the Economic Survey is about India's policy response to Covid-19, saving lives and livelihoods, amidst a once-in-a-lifetime crisis: CEA Subramanian

. India's pandemic response stemmed from Mahabharata— " Saving a life that is in jeopardy is the origin of dharma": Chief Economic Advisor at the launch of the Economic Survey 2020-21

. In order to facilitate a resilient recovery of the economy from the impact of Covid-19 pandemic and the following lockdown, the government of India and RBI together announced a total stimulus worth Rs29.87 lakh crore, which is 15 per centof national GDP. Out of this, stimulus worth 9 per centof GDP has been provided by the government under Atma Nirbhar Bharat Package, according to the Economic Survey.

. India's implementation of a stringent and early lockdown from late-March to May to curb the spread of coronavirus led to a V-shaped recovery. With the economy at a near standstill for two months, there was a 23.9 per cent contraction in year-on-year GDP for the quarter, the Economic Survey of India for 2020-2021 showed.

. India's fiscal deficit is projected to overshoot the initial estimates, 3.5 per cent of GDP, in the financial year ending in March, the government said in the Economic Survey 2020-21 presented to Parliament on Friday.

. Share of agriculture in GDP to increase to nearly 20% in 2020-21 from 17.8% in 2019-20

.Economic Survey 2021 Volume 1. Within Industry, mining is estimated to contract by 12.4%, Manufacturing by 9.4% and construction by 12.6%, says Econ Survey Within Services Sector, trade, hotels, transport & communication are likely to contract by 21.4%

. Economists, policymakers and other stakeholders will be keenly watching for the first official economic growth projections that the Survey makes after a massive 23.9% year-on-year (YoY) decline in the April-June quarter. This was the first GDP contraction in more than 40 years. For the July-September quarter, India's GDP contracted 7.5%.

. Indian finance minister Nirmala Sitharaman is widely expected to focus on some fiscal expansion in the upcoming budget on Monday to boost slacking economic growth.

The economy is expected to see a strong recovery in the 2021/22 fiscal year on account of the low base due to an expected gross domestic product (GDP) contraction of 7.7% this year, most economists say.

The government is therefore likely to concentrate on raising revenue through disinvestments along with market borrowing to support its spending next year. - Reuters

. Ahead of the Budget Session in the Parliament, Prime Minister Narendra Modi said that the upcoming decadeis very important for the bright future of India. He added that a "golden opportunity" has come before the nation to fulfil the dreams seen by the freedom fighters.

. India is likely to predict economic growth of 11% in the fiscal year beginning April 1 in its annual economic survey later on Friday, a source said, betting on a sharp recovery from the pandemic-induced slump this year.

The Indian economy, which the International Monetary Fund singled out as a global bright spot only a few years ago, is set to contract 7.7% in the current fiscal year to March 31, the deepest contraction in four decades, the economic survey is expected to say.

But the government predicts the rollout of vaccines against Covid-19, which has killed 153,847 Indians, will re-energise Asia's third-largest economy with 11% growth next year, said the source, who is familiar with the matter. That would mark the strongest growth since India liberalised its economy in 1991.

The survey is set to forecast nominal GDP, which includes inflation, will rise 15.4%, the highest since India's independence in 1947, said the source, who asked not to be identified. High nominal GDP points towards higher tax collections. -Reuters.

. Every year, the survey is prepared under the guidance of the Chief Economic Advisor (CEA) to the government and is tabled in both the houses of the Parliament before the Union Budget is presented following a press conference in New Delhi. This year's Economic Survey has been prepared by the economic division of the Department of Economic Affairs, consisting of CEA Krishnamurthy Subramanian and his team.

. India’s Union Budget Monday will be a much tougher balancing act than New Delhi’s regular annual fiscal trapeze. For one thing, the pandemic has upset business-as-usual calculations of how much to spend, on what, and how to finance it. For another, an impatience to make up for lost time has to be weighed against a shrinking of policy space in emerging markets.

. According to multiple reports, this year's survey is expected to have a detailed assessment of how much the Indian economy has suffered due to the Covid-19 lockdown.

. The eighth Union Budget under the Modi government for FY2021-22 is scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1, 2021, in the Parliament.

. The Economic Survey to be presented in Parliament on Friday is likely to chart out the course of India's recovery in the most comprehensive way, after the pandemic sent the economy into a tailspin.

Economic Survey live updates: Expect economy to get back on pre-Covid growth path by FY23, says Chief Economic Advisor

Farm laws ‘herald a new era’ of market freedom, says Economic Survey

High stakes as FM Nirmala Sitharaman vows to unveil a Budget like 'never before'

Cricket to Mahabharata: CEA Krishnamurthy Subramanian explains pandemic response

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