As per Economic Survey 2020-2021, India’s real GDP is estimated to grow by ______ in financial year 2021-22.
11%
Understanding Economic Survey 2020-21 and India's GDP Growth
The Economic Survey is an annual report presented by the Department of Economic Affairs, Ministry of Finance, Government of India, just before the Union Budget. It reviews the country's economic development over the past financial year, provides data and statistics, and offers projections for the coming year. The Economic Survey 2020-2021 was particularly significant as it provided insights into the state of the Indian economy during and immediately after the first wave of the COVID-19 pandemic.
Economic Survey 2020-2021 Projections for FY 2021-22
One of the key aspects of the Economic Survey is its forecast for future economic growth. The survey presented for the financial year 2020-2021 included crucial estimates for the financial year 2021-22 (April 2021 to March 2022). The survey projected the growth of India's Gross Domestic Product (GDP).
GDP measures the total value of goods and services produced in a country during a specific period. Economic surveys often provide estimates for both nominal GDP and real GDP.
- Nominal GDP: This measures GDP at current market prices, including inflation.
- Real GDP: This measures GDP adjusted for inflation, reflecting the actual volume of goods and services produced. Real GDP is often considered a better indicator of economic growth because it removes the effect of price changes.
India's Real GDP Growth Estimate for FY 2021-22
According to the Economic Survey 2020-2021, the estimated growth rate for India's real GDP in the financial year 2021-22 was a specific percentage, factoring in the expected recovery from the pandemic-induced slowdown.
The survey projected that India's real GDP would grow by $\text{11%}$ in FY 2021-22. This was a significant rebound expected after a contraction in the preceding financial year (2020-21) due to the impact of the COVID-19 pandemic and the subsequent lockdowns.
The forecast of $\text{11%}$ real GDP growth was based on various factors, including:
- Expected 'V-shaped' recovery in economic activity.
- Rollout of vaccination programs.
- Government measures and policy support to boost the economy.
- Anticipated revival in consumption and investment.
The Economic Survey 2020-21 also projected nominal GDP growth for FY 2021-22 to be $\text{15.4%}$. However, the question specifically asks about real GDP growth.
Summary of Economic Survey 2020-21 GDP Estimates
| Parameter | Estimate for FY 2021-22 (as per Eco Survey 2020-21) |
|---|---|
| Real GDP Growth | $\text{11%}$ |
| Nominal GDP Growth | $\text{15.4%}$ |
Therefore, as per the Economic Survey 2020-2021, India's real GDP was estimated to grow by $\text{11%}$ in financial year 2021-22.
Revision Table: Key Economic Terms & Concepts
| Term | Definition/Description | Relevance to Economic Survey |
|---|---|---|
| Economic Survey | Annual report by the Ministry of Finance reviewing the economy and providing outlook. | Source of official economic data, analysis, and projections like GDP growth. |
| GDP (Gross Domestic Product) | Total value of goods/services produced in a country in a period. | Primary measure of economic size and growth rate. |
| Real GDP | GDP adjusted for inflation, reflecting volume changes. | Used to measure actual economic growth, removing price effects. |
| Nominal GDP | GDP measured at current market prices, including inflation. | Reflects market value but can be skewed by price changes. |
| Financial Year (FY) | The accounting period for government and businesses, typically April 1 to March 31 in India. | Economic data and projections are usually presented for specific financial years. |
Additional Information: Economic Survey Significance and GDP Factors
The Economic Survey serves as an important document for understanding the government's perspective on the state of the economy and its policy priorities. It often highlights major challenges and suggests potential policy directions, though its recommendations are not binding.
Factors influencing GDP growth estimates include:
- Global economic conditions.
- Domestic demand (consumption and investment).
- Government spending and fiscal policies.
- Monetary policy by the central bank.
- Structural reforms.
- External factors like trade and capital flows.
- Unexpected events (like the COVID-19 pandemic).
The $\text{11%}$ projection for FY 2021-22 from the 2020-21 survey was one of the highest growth estimates among major economies at that time, reflecting optimism about India's recovery potential.
Important Questions from Economic and Financial Affairs
As per the Union Budget 2021-22, the government plans to continue on the path of fiscal consolidation, achieving a fiscal deficit level below 4.5% of GDP by ______.
- The National Rail Plan announced in the Union Budget of 2021-22 aims to create a future ready railway system by which of the following years?
As per the Economic Survey 2021, in which of the following states did the proportion of households that had health insurance decrease by 12% from 2015-16 to 2019-20?
As per the Economic Survey of India 2020-21, India is expected to have a Current Account Surplus of ______ GDP in FY21.
As per Economic Survey 2020-2021, during the first half of the financial year 2020-21, the services sector contracted by almost ________.
