Union Finance Minister Nirmala Sitharaman presented the Economic Survey 2021 in the parliament today. today, the budget session began with the presidential address to the joint session of the parliament. Leaders of 18 opposition parties boycotted the address to show solidarity with the protesting farmers on the border. The Budget session will be held in two phases with 33 sittings: 29 January to 15 February and 8 March to 8 April.
Chief Economic Advisor KV Subramanian launched the Economic Survey 2021 in Press Information Bureau headquarter, Delhi.
The two-volume document is an architect by CEA KV Subramanian is in an e-book version this year. Chapter one of the Economic Survey is about the COVID-19 responses. He called that the Indian government was the only country to adopt the structural reforms to save the life as GDP once can be gained again but not life. He also informed that there would have been a significant economic impact even without lockdown. Lockdown ensured the coordinated response to save lives. The survey predicted the GDP would be contracted by 7.7% this fiscal year. the last annual contraction was seen in the fiscal year 1979-80 by 5.2%. But as the V-shape growth seen in later quarters of this fiscal year, the survey predicted the GDP growth at 11% for the next fiscal year and 6.5% in FY23, and 7% growth in FY24. The next year's predictions are in line with the predictions of IMF.
The economy may take two years to achieve or cross the pre-pandemic growth. Survey also commented on the controversial laws and called these farm laws the herald of the growth in agriculture. These laws will improve the agriculture sectors which are deprived by the APMCS\mandis. The agriculture sector has a 3.4% growth in the Q1 and Q2 of this fiscal year which cushioned the shock created by the pandemic. Survey also mentions the market: "Buoyant Sensex and Nifty resulted in India’s market-capitalization to GDP ratio crossing 100% for the first time since October 2010. This, however, raises concerns on the disconnect between the financial markets and real sector."
The Economic Survey is presented 2 days before the Union Budget which is to be presented on Monday, 1 February.