Insta
India's GDP To Grow By 11.5 Per Cent In FY22 After 7.7 Per Cent Contraction In FY21, Projects Economic Survey
IANS
Jan 29, 2021, 02:52 PM | Updated 02:52 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
India's GDP is estimated to contract by 7.7 per cent during the current fiscal, said the Economic Survey 2020-21 on Friday (29 January).
The document which was tabled by Finance Minister Nirmala Sitharaman in the Lok Sabha in its debt simulations for worst-case debt analysis assumed the contraction at (-) 7.7 per cent.
According to the survey, the real growth rate for FY22 was assumed at 11.5 per cent based on IMF estimates.
The document prepared by the Finance Ministry's Chief Economic Adviser Krishnamurthy V Subramanian said general government debt for FY20 is taken as 73.8 per cent of the GDP.
"The primary deficit for FY21 is assumed to be 6.8 per cent of GDP... Primary deficit for FY22 is assumed to be 2.5 per cent of GDP.
"The declining trajectory of primary deficit is assumed to reach 1.5 per cent of GDP by FY24, and it is assumed to stay at 1.5 per cent thereafter," it added.
Besides, the survey cited that nominal interest rate is assumed to be 6 per cent.
"As on January 26, 2021, we estimate the weighted average cost of borrowing using the weights of general government borrowing across maturities to be 6 per cent.
"Inflation is taken as 5 per cent, i.e. mid-point of the range of 4 per cent - 6 per cent."
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.