The Economic Survey 2020-21 has introduced the Bare Necessities Index(BNI). Facts: Bare Necessities Index(BNI): This index is a means of assessing equity in economic development among states and regions in India. It uses the basic needs approach. Indicators: This index uses 26 indicators on five dimensions of basic necessities— water, sanitation, housing, micro-environment, and other facilities. Data …
Key Challenges highlighted by Economic Survey 2022: Increased Inflation: The Survey notes that supply chain disruptions and slow economic growth have contributed to an increase in inflation. The withdrawal of stimulus in developed economies in the upcoming fiscal (2022-23) is likely to affect capital flows into the country. The surge in energy, food, non-food commodities, and input …
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Services: Gross Value Added: GVA of services crossed pre-pandemic level in July-September quarter of 2021-22; however, GVA of contact intensive sectors like trade, transport, etc. still remain below pre-pandemic level. Overall service Sector GVA is expected to grow by 8.2% in 2021-22. Foreign Direct Investment: During the first half of 2021-22, the service sector received over USD …
Social Infrastructure and Employment: Employment: With revival of the economy, employment indicators bounced back to pre-pandemic levels during the last quarter of 2020-21. As per the quarterly Periodic Labour Force Survey (PFLS) data up to March 2021, employment in urban sector affected by pandemic has recovered almost to the pre-pandemic level. According to Employees Provident Fund Organisation (EPFO) data, formalisation of …
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Industry and Infrastructure: The Index of Industrial Production (IIP) grew at 17.4% during April-November 2021 as compared to (-)15.3% 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 …
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Agriculture and Food Management: The Agriculture sector experienced buoyant growth in the past two years, accounting for a sizable 18.8% (2021-22) in Gross Value Added (GVA) of the country registering a growth of 3.6% in 2020-21 and 3.9% in 2021-22. Minimum Support Price (MSP) policy is being used to promote crop diversification. Net receipts from crop production have increased …
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Sustainable Development and Climate Change: India’s overall score on the NITI Aayog Sustainable Development Goals (SDG) India Index and Dashboard improved to 66 in 2020-21 from 60 in 2019-20 and 57 in 2018-19. 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, …
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Prices and Inflation: The average headline Consumer Price Index (CPI) -Combined inflation moderated to 5.2% in 2021-22 (April-December) from 6.6% in the corresponding period of 2020-21. The decline in retail inflation (CPI) was led by easing food inflation. Food inflation averaged at a low of 2.9% in 2021-22 (April to December) as against 9.1% in the corresponding period last …
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Monetary Management and Financial Intermediation: The liquidity in the system remained in surplus. Repo rate was maintained at 4% in 2021-22. Reserve Bank of India undertook various measures such as G-Sec Acquisition Programme and Special Long-Term Repo Operations to provide further liquidity. The economic shock of the pandemic has been weathered well by the commercial banking system: Bank credit growth accelerated gradually in 2021-22 from 5.3% …
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External Sectors: India’s merchandise exports and imports rebounded strongly and surpassed pre-Covid levels during the current financial year. There was significant pickup in net services with both receipts and payments crossing the pre-pandemic levels, despite weak tourism revenues. Net capital flows were higher at USD 65.6 billion in the first half of 2021-22, on account of continued inflow of foreign investment, revival …
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