The Economic Survey presented in Parliament 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, ASSOCHAM has said.
”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, ” ASSOCHAM Secretary General Mr. Deepak Sood said. He said, India’s mega vaccination drive against coronavirus should gather further pace and help return the critical services sector to normalcy.
The ASSOCHAM Secretary General said, the Survey is ”absolute” wise on laying emphasis on almost trebling the public expenditure on healthcare services from 1 per cent to 2.5-3 per cent of the GDP. ”The Economic Survey is certainly a pointer towards significant rise in Budget allocations for the sector,” he said.
The chamber said as has been pointed out in the key document placed before Parliament, India stands out as leading the structural reforms even in the midst of ”once- in- a -century” pandemic. Under the Atmanirbhar banner, the twin strategy of providing relief and rekindling demand along with bold and courageous reforms in labour, defence, agriculture among others seem to have paid off well.
The Survey’s prognosis on India’s external debt, robust foreign exchange reserves and growth exceeding interest rates point towards sustainability in the trend line and ability to absorb any unforeseen external events.
As the agriculture sector stands out as the beacon of growth even in the midst of contraction in the current fiscal, Mr. Sood complimented Prime Minister Mr Narendra Modi for remaining committed towards development in the rural economy. “This is so well enumerated in the Address to Parliament by President Shri Ram Nath Kovind on the opening day of the Budget session of Parliament. The Agriculture Infrastructure Fund of Rs 1 lakh crore, construction of 6.42 lakh km of road network under the Pradhan Mantri Gram Sadak Yojana stand testimony to government’s focus on rural landscape.