Question : On 29 January 2021, Union Finance Minister Nirmala Sitharaman presented the Economic Survey 2020-21 in Parliament. Consider the following statements related to this —
(1) As per the advance estimates, India’s GDP is estimated to grow by (-) 7.7% in FY21
(2) Economy will grow in ‘W’ shape due to Comprehensive Immunization Campaign‚ rapid improvement in service sector and rapid growth in consumption and investment.
(3) In FY 2021-22, India’s real GDP growth rate will be 11 percent and nominal GDP growth rate will be 15.4 percent.
(a) Only (1) and (3)
(b) Only(2) and (3)
(c) Only(3)
(d) All above
Ans.(a)
Related facts
- On 29 January 2021, Union Finance Minister Nirmala Sitharaman presented the Economic Survey 2020-21 in Parliament.
Highlights
- Highlights of the ES(Economic Survey) is given below —
As per the advance estimates, India’s GDP is estimated to grow by (-) 7.7% in FY21. - V-shaped recovery, as seen in 7.5% decline in GDP in Q2 and recovery across all key economic indicators vis-à-vis the 23.9% GDP contraction in Q1.
- Global economic output estimated to fall by 3.5% in 2020 (IMF January 2021 estimates)
- India’s real GDP to record a 11.0% growth in FY2021-22 and nominal GDP to grow by 15.4% – the highest since independence:
- Rebound to be led by low base and continued normalization in economic activities as the rollout of COVID-19 vaccines gathers traction.
- Exports expected to decline by 5.8% and imports by 11.3% in the second half of FY21
- India expected to have a Current Account Surplus of 2% of GDP in FY21, a historic high after 17 years.
- On supply side, Gross Value Added (GVA) growth pegged at -7.2% in FY21 as against 3.9% in FY20:
Agriculture set to cushion the shock of the COVID-19 pandemic on the Indian economy in FY21 with a growth of 3.4%
Industry and services estimated to contract by 9.6% and 8.8% respectively during FY21.
- 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 (CSO-Provisional Estimates of National Income, 29th May, 2020)
- Total food grain production in the country in the agriculture year 2019-20 (as per Fourth Advance Estimates), is 11.44 million tonnes more than than during 2018-19
- FDI equity inflows were US$49.98 billion in FY20 as compared to US$44.37 billion during FY19:
It is US$30.0 billion for FY21 (up to September-2020)
- Despite the disruptions being witnessed globally, FDI inflows into India’s services sector grew robustly by 34% Y-o-Y during April-September 2020 to reach US$ 23.6 billion
- India’s services sector contracted by nearly 16 % during H1: FY2020-21, during the COVID-19 pandemic mandated lockdown, owing to its contact-intensive nature
- The services sector accounts for over 54 % of India’s GVA and nearly four-fifths of total FDI inflow into India
- The sector’s share in GVA exceeds 50% in 15 out of 33 States and UTs, and is particularly more pronounced (greater than 85%) in Delhi and Chandigarh
- Services sector accounts for 48% of total exports, outperforming goods exports in the recent years
- India’s GNI per capita (2017 PPP $) has increased from US$ 6,427 in 2018 to US$ 6,681 in 2019
- Life expectancy at birth improved from 69.4 years in 2018 to 69.7 years in 2019
- Gross Capital Formation (GCF) relative to GVA showing a fluctuating trend from 17.7 % in 2013-14 to 16.4 % in 2018-19, with a dip to 14.7 % in 2015-16
By — Pankaj Pandey.