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Budget 2022 Highlights: Growth projections made by Economic Survey more conservative than other agencies, says CEA Nageswaran

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Budget 2022 Highlights: Growth projections made by Economic Survey more conservative than other agencies, says CEA Nageswaran

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Budget 2022 Highlights: Finance Minister Nirmala Sitharaman on Monday tabled the Economic Survey 2022 in Lok Sabha. She's expected to table in the Rajya Sabha around 2.40 pm and later on newly-appointed CEA V Anantha Nageswaran will address a press briefing. Earlier, the Union Budget session of Parliament has kickstarted on Monday with President Ram Nath Kovind's address to the joint sitting of both houses in the Central Hall. Later, Finance Minister Nirmala Sitharaman will present the Economic Survey 2021-22 on Monday and the Union Budget on Tuesday. The Economic Survey will be tabled separately by FM Sitharaman in both Houses and as per the Rajya Sabha schedule it will be presented at around 2.40 pm today. The Budget session beginning today is the sixth to be held since the outbreak of the COVID-19 pandemic in January 2020. The Budget session of 2020 was curtailed by eight sittings and the Budget session of 2021 was shortened by 10 sittings.Here are the live updates from the Budget Session of Parliament today:

Budget 2022 Highlights: Growth projections made by Economic Survey more conservative than other agencies, says CEA Nageswaran
  • Economic Survey 2021-22: Various schemes undertaken for students during COVID-19 pandemic
    The Economic Survey 2021-22 said that various initiatives were undertaken for the students during the COVID-19 pandemic. The survey was presented by Nirmala Sitharaman in both houses of Parliament.
    Budget 2022 Highlights: Growth projections made by Economic Survey more conservative than other agencies, says CEA Nageswaran
  • Economic Survey 2021-22: Various schemes undertaken for students during COVID-19 pandemic
    The Economic Survey 2021-22 said that various initiatives were undertaken for the students during the COVID-19 pandemic. The survey was presented by Nirmala Sitharaman in both houses of Parliament.
    Budget 2022 Highlights: Growth projections made by Economic Survey more conservative than other agencies, says CEA Nageswaran
  • Economic Survey 2022 on GST collections

    "The Economic Survey mentions the highly watched GST collections which contributed significantly to tax buoyancy by crossing Rs 1 trillion consistently from July 2021. The survey highlights that the indirect tax receipts have registered a growth of 38.6 percent in the first eight months of this fiscal year. It is emphasised that continuous improvements are made in an extremely responsive way in GST to remove glitches and necessary changes, with the proactive action of the GST Council.  The survey also highlights GST rate rationalisation and maintaining revenue neutrality.  With this, the survey highlights points about late fee amnesty scheme and retrospective amendment of interest provisions which gave due relief to the tax payers. The survey acknowledges the efforts against GST evaders and the systemic changes introduced in the recent past related to rate rationalization measures and to correct inverted duty structure.  Enlisting the measures taken by the Centre to support States, the survey highlights that the special borrowing window to meet the GST compensation shortfall was extended for the current financial year 2021-22 to raise the endeavour," says Abhishek A Rastogi, partner at Khaitan & Co.

  • 'Outlook should take into account geopolitcal tension, global oil prices'

    The Economic Survey 2021-22 projects India’s growth for FY23 at 8-8.5% based on extensive vaccine coverage, gains from supply-side reforms, easing of process friction, and expected robust export growth; a reasonable, upbeat outlook that should be caveated by exogenous factors like geopolitical tensions and global oil prices, says Arun M Kumar, Chairman & CEO, KPMG India.

  • Eco Survey 2022: Fiscal situation comfortable, says Niti Aayog VC; adds infra spending to spur employment

    Niti Aayog Vice-Chairman Rajuv Kumar today sounded optimistic about India's recovery in the next fiscal. In an exclusive interview with CNBC-TV18, Kumar said the 8-8.85 percent GDP growth forecast in the latest Economic Survey--released earlier today--seemed "just about right" and said he expects investment in the private sector to take off.

  • Economic Survey 2021-22: Air India sale to boost privatisation; need to encourage private participation across sectors

    Air India is the first privatisation in 20 years and will pave the way for the sale of more CPSEs, which are lined up for sale -- BPCL, Shipping Corporation, Pawan Hans, IDBI Bank, Concor, BEM and…
    Budget 2022 Highlights: Growth projections made by Economic Survey more conservative than other agencies, says CEA Nageswaran
  • Economic Survey: India makes progress in sustainable development despite COVID 19

    According to the SDG India Index Report 2020-21 of NITI Aayog, India’s overall score improved from 60 in 2019-20 to 66 in 2020-21. The country performed well on health and well-being, clean water and sanitation as well as affordable and clean energy.

  • Economic Survey 2022: Railways to see very high level of capex in 10 years; aims 100% electrification by Dec 2023

    The Economic Survey presented by Finance Minister Nirmala Sitharaman on Monday estimated a very high level of capital expenditure in the railway sector in the next 10 years. The survey further stated that the Indian Railways has set a target of 100 percent electrification of its network by December 2023.

  • Growth projections made by Economic Survey more conservative than other agencies, says CEA Nageswaran

    CEA V Anantha Nageswaran said, while addressing the media that growth projections made by Economic Survey more conservative than other agencies. He added taht capital expenditure by state governments has grown by 67% in 2021-22.

  • Labour reforms make steady progress; at least 17 states pre-publish draft rules on 4 codes: Survey

    Labour reforms are progressing steadily as at least 17 states have pre-published draft rules for four labour codes on wages, social security, industrial relations and occupation safety, health and working conditions (OSH), according to the Economic Survey for 2021-22. "As on January 11, 2022, 26 states/UTs have also pre-published the draft rules under the Code on Wages, 22 states/UTs under Industrial Relations Code, 20 states/UTs under Code on Social Security, and 17 states/UTs under OSH & WC Code," stated the Survey tabled in Parliament on Monday.

  • Eco Survey 2022: Fiscal situation comfortable, says Niti Aayog VC; adds infra spending to spur employment
    Niti Aayog Vice-Chairman Rajiv Kumar said the country's financial situation is now very comfortable with the government revenue rising 67 percent and that the Centre is committed to ramping up capital…
    Budget 2022 Highlights: Growth projections made by Economic Survey more conservative than other agencies, says CEA Nageswaran
  • Many commentators expressed fear in the last two years that the financial system will be very stressed due to the pandemic-related shock. However, this sector has weathered out rather well: Principal Economic Advisor Sanjeev Sanyal

  • India home to over 61,000 recognised startups, Delhi takes over as startup capital: Economic Survey

    The national capital region replaced India's silicon valley Bengaluru as home to the most number of new startups getting created in the country. The government recognised over 5,000 new startups in Delhi-NCR compared to 4,514 startups in Bengaluru between April 2019 and December 2021.

  • Principal Economic Advisor Sanjeev Sanyal: The economy is estimated to have grown by 9.2% this year after a contraction of 7.3% in the previous year.

  • Economic Survey: After rising sharply in lockdown days, unemployment rate fell as economy opened up

    While the unemployment rate gradually dipped during this period to reach 9.3 per cent in Q4 of 2020-21, the unemployment rate for males as well as females, aged 15 & above, recovered to the pre-pandemic levels. 

  • Principal Economic Advisor Sanjeev Sanyal: There has been a revival in economic activities to pre-pandemic levels in the year 2021-22. Even though the health cost of the second COVID wave was much more severe, the economic cost of it was much milder.

  • Sanjeev Sanyal, PEA: Economic Survey has gone through a change in its format

    From a descriptive document published as part of Union Budget in 1950s, Economic Survey evolved to be a lot more substantial and analytical over the years, presented as a separate document a day before the Budget, says PEA Sanjeev Sanyal

  • Chief Economic Advisor V . Anantha Nageswaran is addressing a press briefing. Here are the key highlights:

    -Survey has been compiled by Sanjeev Sanyal and his team of advisors, says CEA Nageswaran

    -Overall theme of the survey, short term support to the economy while keeping an eye on medium term fiscal stability 

    -Not letting of opportunities for supply side reforms 

    -Considerable attention on or ess reforms as well

  • Economic Survey: Nearly 30% rural families now have tap water connections at home

    The Jal Jeevan Mission, rolled out in 2019 to provide adequate safe drinking water through individual household tap connections to all households in rural India by 2024, has seen good progress. In 2019, out of about 18.93 crore families in rural areas, about 3.23 crore (17 percent) rural families had tap water connections in their homes, according to the Survey. This has risen to 5.51 crore families as on January 2, 2022.

  • Rajya Sabha adjourned for the day

    Rajya Sabha adjourned for the day after Nirmala Sitharaman tables Economic Survey 2021-22.

  • Economic Survey 2022: India needs to spend $1.4 trillion on infra to achieve $5 trillion GDP by FY25

    The Economic Survey 2021-22, presented by Nirmala Sitharaman on Monday, stated that India needed to spend nearly $1.4 trillion over on infrastructure to achieve $5 trillion GDP by FY25. During financial years 2008-17, India pumped in about $1.1 trillion on infrastructure. However, the challenge is to step up infrastructure investment substantially, the Economic Survey 2021-22 said.

  • Disinvestment: The Agony and the Ecstasy
    The first four decades after Independence, the public sector enterprise was expected to be the growth engine of the economy. Poor work ethos and the red tape, soon established that this was not to be.…
    Budget 2022 Highlights: Growth projections made by Economic Survey more conservative than other agencies, says CEA Nageswaran
  • Rahul Bajoria, Chief India Economist at Barclays: “There is a little bit of downside to the GDP estimate. The economic advisors have been talking about the base effect kind of having an impact on the next fiscal year’s numbers. Our estimate is about 7.8 percent for the next fiscal year and that seems to be broadly close to where the market consensus is.” “In terms of the mix of growth, we will probably see the domestic sector playing a bigger role. We should also see some better numbers both from consumption and from investment cycle. So the role of the government at the margin might be receding in the growth recovery cycle as we go into the next fiscal. At the current juncture I would say our bias is to see the GDP numbers at the lower end of the target range that has been set out in the economic survey.”

  • Nomura’s Aurodeep Nandi: “Our projection for FY23 is 7.8 percent in terms of real growth, so it is on the downside. There are couple of reasons why we think so, one is that there is a double whammy that is hitting the consumption sector because of the scarring effects of the pandemic which has disproportionately hit the informal sector and the second aspect is inflation. Inflation has been quite elevated for a couple of years and that starts to hit consumption at some point. I think we are at that point where higher prices are eating into consumption.”

    “On the investment side a lot of private companies have deleveraged over the past couple of years but we have not seen that translate into higher private capex. So we are still in the old model where we are relying on the government to come in and deliver higher capex. So probably tomorrow in the budget we will see something very similar. They key question is when will private capex catch up? It is one thing for the government to set an ambitious target, second thing is to walk to the target and what we have been seeing is that there has been a struggle to kind of reach the levels that were set. Also in the second half of the year we do expect some softness to come in global growth which should impact exports. We are already seeing the Fed giving strong signs of tightening. So the kind of fiscal monetary policy boost that was there in the global economy so far are likely to recede which means that there will be some lesser momentum as far as exports is concerned. So all those put together we remain cautious on FY23 outlook.”  

  • Economic Survey 2022 key highlights from Industry and Infrastructure:

    Index of Industrial Production (IIP) grew at 17.4 percent (YoY) during April-November 2021 as compared to (-)15.3 percent in April-November 2020.

    Capital expenditure for the Indian railways has increased to Rs. 155,181 crores in 2020-21 from an average annual of Rs. 45,980 crores during 2009-14 and it has been budgeted to further increase to Rs. 215,058 crores in 2021-22 – a five times increase in comparison to the 2014 level.

    Extent of road construction per day increased substantially in 2020-21 to 36.5 Kms per day from 28 Kms per day in 2019-20 – a rise of 30.4 percent.

    Net profit to sales ratio of large corporates reached an all-time high of 10.6 percent in in July-September quarter of 2021-22 despite the pandemic (RBI Study).

    Introduction of Production Linked Incentive (PLI) scheme, major boost provided to infrastructure-both physical as well as digital, along with measures to reduce transaction costs and improve ease of doing business, would support the pace of recovery.

  • Ranen Banerjee - Partner and Leader  Economic Advisory Services, PwC India: “The Economic Survey has highlighted the agile approach to fiscal and monetary management that has been undertaken over the past years and recognizes the risks faced by the Indian economy. Following the agile approach, the GDP  is therefore projected to grow at a range of  8-8.5% rather than a specific percentage. This projection is possibly at the optimistic end of the spectrum given several underlying assumptions. The projections are based on assumptions that there will be no further debilitating pandemic related disruption,
    there will be a normal monsoon, global central banks will undertake an orderly withdrawal of global liquidity,  oil prices will moderate to a range of USD 70-75/bbl during FY23 and  global supply chains will ease gradually. It is quite likely that some of these assumptions may not hold and there could be other risks emerging from rising geopolitical tensions (that  have not been stated in the assumptions). Therefore , we  should  realistically expect sub 8% GDP growth in FY23 and  anticipate an  agile approach to fiscal management in the Union Budget in the highly VUCA environment. The Finance Minister will be equipped with fiscal ammunition  to aim for the projected economic growth rate under the given assumptions.”

  • Economic Survey key highlights from Sustainable Development and Climate Change

    India’s overall score on the NITI Aayog SDG India Index and Dashboard improved to 66 in 2020-21 from 60 in 2019-20 and 57 in 2018-19.

    Number of Front Runners (scoring 65-99) increased to 22 States and UTs in 2020-21 from 10 in 2019-20.

    In North East India, 64 districts were Front Runners and 39 districts were Performers in the NITI Aayog North-Eastern Region District SDG Index 2021-22.

    India has the tenth largest forest area in the world.

    In 2020, India ranked third globally in increasing its forest area during 2010 to 2020.

    In 2020, the forests covered 24% of India’s total geographical, accounting for 2% of the world’s total forest area.

    In August 2021, the Plastic Waste Management Amendment Rules, 2021, was notified which is aimed at phasing out single use plastic by 2022.

    Draft regulation on Extended Producer Responsibility for plastic packaging was notified.

    The Compliance status of Grossly Polluting Industries (GPIs) located in the Ganga main stem and its tributaries improved from 39% in 2017 to 81% in 2020.

    The consequent reduction in effluent discharge has been from 349.13 millions of litres per day (MLD) in 2017 to 280.20 MLD in 2020.

    The Prime Minister, as a part of the national statement delivered at the 26th Conference of Parties (COP 26) in Glasgow in November 2021, announced ambitious targets to be achieved by 2030 to enable further reduction in emissions.

    The need to start the one-word movement ‘LIFE’ (Lifestyle for Environment) urging mindful and deliberate utilization instead of mindless and destructive consumption was underlined.

  • Ethanol supply expected at over 302 cr litre in 2020-21, against 38 cr litre in 2013-14: Survey

    Ethanol supply is expected to be more than 302 crore litre in 2020-21 supply year ended November, from only 38 crore litres in 2013-14, according to Economic Survey. The blending of ethanol with petrol is estimated at 8.1 per cent during 2020-21 ethanol supply year (ESY). Talking about the Ethanol Blended with Petrol (EBP) Programme, the survey said that the government has now set 20 per cent ethanol blending target for mixing ethanol with petrol to be achieved by 2025. "It is estimated that the blending target at 10 per cent would be achieved during 2022," it added.

  • Economic Survey 2022: Agri & allied sectors grew at 3.6% during 2020-21

    According to the Fourth Advance Estimates for 2020-21, total foodgrain production in the country is estimated at a record 308.65 million tonnes, which is 11.15 million tonnes higher than that during 2019-20.

  • Rajni Thakur, Chief Economist at RBL Bank:
    “On the capex side we saw some big announcements last year as well, so for us what is more critical is the gap between the actual outlay and outcome. For example drinking water program, the actual spend is around one third of what was laid out in the budget plan. So theoretically it is going to be capex led growth next year is very good as a thought process but what is very important is to see some action on ground and see some capex coming in.”
    “On exports – we do see a theoretical push in terms of it becoming much more entrenched on to global supply chain and that has been coming on the policy side as a signal for 18 months plus now but what is more important is more thought process into trade relationships and more proactive role in global trade.”

Budget 2022 news highlights: 
Finance Minister Nirmala Sitharaman on Monday tabled the Economic Survey 2022 in Lok Sabha. She's expected to table in the Rajya Sabha around 2.40 pm and later on newly-appointed CEA V Anantha Nageswaran will address a press briefing. Advance estimates suggest that the Indian economy is expected to witness real GDP expansion of 9.2 per cent in 2021-22 after contracting in 2020-21. With the vaccination programme having covered the bulk of the population, economic momentum building back and the likely long-term benefits of supply-side reforms in the pipeline, the Indian economy is in a good position to witness GDP growth of 8.0-8.5 per cent in 2022-23.
Earlier, the Union Budget session of Parliament has kickstarted on Monday with President Ram Nath Kovind's address to the joint sitting of both houses in the Central Hall. Later, Finance Minister Nirmala Sitharaman will present the Economic Survey 2021-22 on Monday and the Union Budget on Tuesday. The Economic Survey will be tabled separately by FM Sitharaman in both Houses and as per the Rajya Sabha schedule it will be presented at around 2.40 pm today. The Budget session beginning today is the sixth to be held since the outbreak of the COVID-19 pandemic in January 2020. The Budget session of 2020 was curtailed by eight sittings and the Budget session of 2021 was shortened by 10 sittings.

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