Economic Survey UPSC Highlights Pdf 2022 | Questions | Analysis

• Strategy to face the pandemic:
  • Response stemmed from the humane principle that:
    • Human lives lost cannot be brought back.
    • Gross Domestic Product (GDP) growth will recover from the temporary shock caused by the Covid-19 pandemic.
  • India’s policy response also derived from extensive research on epidemiology, especially that looked at Spanish Flu of 1918.
    • One of the key insights was that pandemic spreads faster in higher and denser population and intensity of lockdown matters most at the beginning of the pandemic.

Four Pillar Strategy:

• India adopted a unique four-pillar strategy of containment, fiscal, financial, and long-term structural reforms.
• Calibrated fiscal and monetary support was provided given the evolving economic situation
• A favorable monetary policy ensured abundant liquidity and immediate relief to debtors via temporary Moratoria, while facilitating monetary policy transmission.
• Cushioning the vulnerable in the lock down and boosting consumption and investment while unlocking, mindful of fiscal repercussions and entailing debt sustainability.

Economic Recovery:

• V-shaped Economic Recovery after Lockdown Was Noticed In Indian Economy .
• V-shaped recovery is a type of economic recession and recovery that resembles a “V” shape in charting.
• A V-shaped recovery is Characterised by a quick and sustained recovery in measures of economic performance after a sharp economic decline. We Can Say That Indian Economy Recover Very Fast After Pandemic Covid 19.

What Are Were The Main Reasons Of Indian Economy Recovery ?

• Mega Vaccination Drive
• Measures Economy Boost Initiative By Indian Government
• Aatam Nirbhar Bharat Mission Also An Important Role In Recover Of Indian Eocnomy.
• Power Demands. E Way Bills , GST Collections Etc Also Play An Important  Role

GDP’s Estimation:

• India’s real GDP to record a growth of 11% in 2021-22 and nominal GDP by 15.4% – the highest since independence.
• These projections are in line with International Monetary Fund estimates.
• India’s GDP is estimated to contract by 7.7% in the Financial Year (FY) 2020-21, composed of a sharp 15.7% decline in the first half and a modest 0.1% fall in the second half.
• The external sector provided an effective cushion to growth with India recording a Current Account Surplus of 3.1% of GDP in the first half of FY 2020-21.
• Overall Coming Years Are Very Good For Indian Economy . Indian Economy Will Grow At A Faster Rate .

Foreign Investment During 2020-21 In India According To Economic Survey 

• Net Foreign Direct Investment (FDI) inflows of USD 27.5 billion during April-October, 2020 – 14.8% higher as compared to the first seven months of FY 2019-20.
• Net Foreign Portfolio Investment (FPI) Inflows recorded an all-time monthly high of 9.8 Billion Dollars in November 2020.

Services Sector In Economic Survey 2021 

• The services sector accounts for over 54% of India’s Gross Value Added (GVA) and nearly four-fifths of total Foreign Direct Investments (FDI) inflow into India.
• Services sector accounts for 48% of total exports, outperforming goods exports in recent years.
• Key indicators such as Services Purchasing Managers’ Index, rail freight traffic, and port traffic, are all displaying a V-shaped recovery after a sharp decline during the lockdown.
• India’s space sector has grown exponentially in the past six decades . There Are Lots Of Reforms In Indian Space Sector .
• Startups In India – Startups In India Show A Huge Growth During Last Fiscal year . The Indian start-up ecosystem has been progressing well amidst the Covid-19 pandemic, being home to 38 unicorns – adding a record number of 12 start-ups to the unicorn list last year.

Agriculture In Economic Survey 2021 

• Growth:
  • The Agriculture and Allied activities clocked a growth of 3.4%.
  • As per the Provisional Estimates of National Income released by Central Statistical Organization in May, 2020, the share of Agriculture and Allied Sectors in Gross Value Added (GVA) of the country at current prices is 17.8% for the year 2019-20.
• Export:
  • In 2019-20, the major agricultural and allied export destinations were the USA, Saudi Arabia, Iran, Nepal and Bangladesh.
  • The top agriculture and related products exported from India were marine products, basmati rice, buffalo meat, spices, non-basmati rice, cotton raw, oil meals, sugar, castor oil and tea.
• Livestock:
  • The contribution of Livestock in total agriculture and allied sector GVA (at Constant Prices) has increased from 24.32% (2014-15) to 28.63% (2018-19).
• Food Processing Industries (FPI):
  • During the last 5 years ending 2018-19, FPI sector has been growing at an Average Annual Growth Rate (AAGR) of around 9.99% as compared to around 3.12% in Agriculture and 8.25% in Manufacturing at 2011-12 prices.
• Farm Laws:
  • It strongly defended new farm laws, saying they herald a new era of market freedom which can go a long way in improving lives of small and marginal farmers in India.
  • These legislations were designed “primarily” for the benefit of “small and marginal farmers”, which constitute around 85% of the total number of farmers and are the biggest sufferer of the “regressive” Agricultural Produce Market Committee (APMC) -regulated market regime.