India’s economic survey likely to predict economic growth of 11% in FY2021-22

India in its annual economic survey is likely to predict economic growth of 11% in the fiscal year 2021-22, assuring a sharp recovery from the pandemic-crisis of this year, Reuters reported.

The Indian economy is set to contract 7.7% in the current fiscal year to March 31, the deepest contraction in four decades.

The government expects that the economy will re-energise with 11% growth next year, after the rollout of vaccines against the novel Coronavirus which has killed 153,847 Indians. This would be the strongest growth since liberalisation in 1991.

The survey is set to forecast nominal GDP, which includes inflation, will rise 15.4%, the highest since India’s independence in 1947, said the source, who asked not to be identified. High nominal GDP points towards higher tax collections.

The survey’s projections form the basis for key figures in the budget, due to be delivered on Monday by Finance Minister Nirmala Sitharaman.

However, she may have to make some tough choices to keep in check the government’s increasing debt while presenting a spending plan able to lift the economy.

As per news agency Reuters, the government expected a “V-shaped” economic rebound on the back of its vaccination push and a recovery in demand.

India has started inoculating millions of people with two vaccines — Serum Institute of India’s COVISHIELD, licensed from Oxford University and AstraZeneca, and COVAXIN, developed domestically by Bharat Biotech and the Indian Council of Medical Research.

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