2021-01-29 10:35:36 GMT2021-01-29 18:35:36(Beijing Time) Xinhua English
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NEW DELHI, Jan. 29 (Xinhua) The Indian government said in its Economic Survey on Friday that the country s economy is estimated to contract 7.7 percent in the 2020-21 fiscal year.
The survey, an important business-centric presentation, was tabled two days ahead of the federal budget presented by Finance Minister Nirmala Sitharaman to the country s parliament. The survey was tabled after President Ram Nath Kovind made a joint address to both the houses of parliament, an official said.
For the FY 2020-21 which ended on March 31, 2021, the economy is expected to contract by 7.7 percent, the survey said. This is in line with the estimates of the Reserve Bank of India (7.5-percent contraction), and the National Statistical Office (7.7-percent contraction).
Terming investment in infrastructure quintessential to boost growth, the Economic Survey on Friday said post unlocking of the economy, infra sectors are poised for growth and construction of roads is expected to return to the high pace attained before Covid-19. The infrastructure sector will be the key to overall economic growth and macroeconomic stability, the Survey said emphasising that the year after the crisis (2021-22) will require sustained and calibrated measures to facilitate the process of economic recovery and enable the economy to get back on its long-term growth trajectory. Basic infrastructure facilities in the country provide the foundation of growth. In the absence of adequate infrastructure, the economy operates at a suboptimal level and remains distant from its potential and frontier growth trajectory.
Growth leads to debt sustainability, says Economic Survey
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Last Updated: Jan 30, 2021, 07:08 AM IST
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Synopsis With the Indian context of potential high growth, the interest rate on debt paid by the Indian government has been less than India s growth rate by norm, not by exception, it said.
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New Delhi: Building a case that growth leads to debt sustainability in an emerging economy like India because of higher gross domestic product and lower interest rates, the Economic Survey 2020-21
said such clarity in direction of causation is not seen for advanced countries with lower growth rates.
Citing simulations, it said that in a worst-case scenario, where real growth is only 4% in the next 10 years, public debt is sustainable as it established that growth leads to debt sustainability, not necessarily vice-versa.
Lauding the farm sector for demonstrating resilience during the pandemic, the Economic Survey on Friday suggested the government to see farm sector as a modern business enterprise for which urgent reforms are required to enable sustainable and consistent growth. India s agricultural sector has shown its resilience amid the adversities of COVID-19 induced lockdowns, the Survey noted. The agriculture and allied activities were the sole bright spot amid the slide in GDP performance of other sectors, clocking a growth rate of 3.4 per cent at constant prices during 2020-21, it added. According to the Survey, the farm sector has got renewed thrust due to various measures on credit, market reforms and food processing under the Aatmanirbhar Bharat announcements.
New farm laws herald new era of market freedom: Economic Survey
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Last Updated: Jan 30, 2021, 07:23 AM IST
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These legislations were designed primarily for the benefit of small and marginal farmers , which constitute around 85 per cent of the total number of farmers and are the biggest sufferer of the regressive APMC-regulated market regime, the survey said.
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New Delhi: The Economic Survey strongly batted for agriculture reforms, which have sparked raging protests from farmers, saying that besides giving market freedom, they will help raise incomes of small and marginal farmers.
The survey said the sector needs urgent reforms to enable sustainable and consistent growth and that the three central farm laws enacted last year are just the catalysts needed in that direction. It said these laws are designed and intended to ensure better price realisation by removing intermediaries for farmers, especially small and marginal farmers, who