Economic Survey says economy well placed to take on FY23 challenges

The Indian economy is well placed to take on the challenges of 2022-23, suggest macro-economic stability indicators, said Eco Survey which was presented in the Parliament on Monday by Finance Minister

The Indian economy is well placed to take on the challenges of 2022-23, suggest macro-economic stability indicators, said Economic Survey 2021-22 which was presented in the Parliament on Monday by Union Finance Minister Nirmala Sitharaman.

According to the survey document: "One of the reasons that the Indian economy is in a good position is its unique response strategy. Rather than pre-commit to a rigid response, Government of India opted to use safety-nets for vulnerable sections on one hand while responding iteratively based on 'Bayesian-updating' of information."

"A key enabler of this flexible, iterative 'Agile' approach is the use of eighty High Frequency Indicators (HFIs) in an environment of extreme uncertainty."

Another distinguishing feature of India's response, the survey document said, has been an emphasis on supply-side reforms rather than a total reliance on demand management. "These supply-side reforms include deregulation of numerous sectors, simplification of processes, removal of legacy issues like 'retrospective tax', privatisation, production-linked incentives and so on."

"Even the sharp increase in capital spending by the government can be seen both as demand and supply enhancing response as it creates infrastructure capacity for future growth."