Eco Survey reaffirms worst behind; but govt support needed: Industry

The Economic Survey reaffirms that the worst is behind us and the economy would bounce back with a V-shaped recovery, India Inc said

The Economic Survey reaffirms that the worst is behind us and the economy would bounce back with a V-shaped recovery after being hit hard by the COVID-19 pandemic, India Inc said on Friday.

Sharing their views on the Survey 2020-21 tabled in Parliament, the industry also made a case for continuation of support from the government this year for a broad base recovery and revitalise the ameliorating economic growth.

CII Director General Chandrajit Banerjee said the survey makes a candid and convincing assessment of the Indian economy based on objective analysis, enriching content and credible policy direction to take the economy forward.

"While striking an optimistic note, the Survey reaffirms that the worst is behind us and the economy would bounce back, to experience a resilient V shaped recovery after being hard hit by the COVID-19 pandemic. The availability of the vaccine and robust service sector recovery would further buttress the growth momentum," Banerjee said.

Ficci President Uday Shankar said several key points made in the survey are in tune with the current requirements of the economy and it hopes to see a reflection of these in the upcoming Union Budget.

"To bring the improving growth trajectory on a firm footing and extend it to many more sectors, continuous support from the government is needed through the year 2021," Shankar said, and emphasised that this is not the time to be hemmed in by potential impact of an expansionary fiscal policy on sovereign ratings but walk the extra mile to meet the national requirements.

Assocham Secretary General Deepak Sood said the survey has hit the nail right on its head by stating that the Indian economy's "homecoming" to normalcy is leading to hopes of a robust recovery in services and consumption, emphasizing forcefully that the reforms must continue to realise the full growth potential.

''The Survey, authored by Dr Krishnamurthy Subramanian, presents an optimistic outlook for the next financial year projecting 11 per cent real GDP growth. That sounds rather conservative and if we continue to do well on containing and finally eliminating the COVID-19 virus, the growth for 2021-22 can even surprise for better," Sood said.

PHD Chamber of Commerce and Industry President Sanjay Aggarwal said: "The Survey indicates that India's mature policy response to this once-in-a-century crisis provides important lessons for democracies to avoid myopic policy-making and demonstrates the significant benefits of focusing on long-term gains".

Experts too shared their views on various aspects of the Economic Survey.

Arun M Kumar, Chairman and CEO, KPMG in India said the Survey aims to chart a way out of the pandemic crisis, towards a future of robust growth, as also suggested by the IMF's World Economic Outlook of January 2021.

Rumki Majumdar, Economist, Deloitte India noted that the emphasis of the Survey has rightly been on healthcare and one that they too have repeatedly highlighted.

Ashwin Sapra, Partner, Cyril Amarchand Mangaldas said, "COVID-19 has exposed the fault lines in our healthcare system. The Economic Survey sheds light on this glaring issue. Steps need to be taken to bridge the gaps so that we are not caught off guard ever again."

India's economy is likely to rebound with a 11 per cent growth in the next financial year as it makes a 'V-shaped' recovery after witnessing a pandemic-led carnage, the pre-Budget Economic Survey said on Friday.

The Gross Domestic Product (GDP) is projected to contract by a record 7.7 per cent in the current fiscal ending March 31, 2021. India witnessed its last annual contraction of 5.2 per cent in fiscal year 1979-80.

The Economic Survey 2020-21 said the agriculture sector is the only silver lining while services, manufacturing and construction were most hit by the lockdown that was imposed to curb the outbreak of the COVID-19 pandemic.