India to have GDP growth rate at 11.5% in FY22, says eco survey

Mumbai, Jan 29 India may see GDP growth rate at 11.5 per cent in FY22, as per the Economic Survey report which was tabled on the floor of Parliament in New Delhi today on the eve of the annual Union Budget, which will take place on February 01.

In fact, IMF has also projected the GDP growth rate of the country to be at 11.5 per cent in the next financial year.

In the current fiscal, the country's India's GDP to contract 7.7 per cent, says the Economic Survey.

The report says that the country's growth recovery will be driven by government consumption.

The report also says that India's combined fiscal deficit will exceed its target in the next fiscal. The primary deficit for FY21 is assumed to be 6.8 per cent of GDP... Primary deficit for FY22 is assumed to be 2.5 per cent of GDP.

"The declining trajectory of primary deficit is assumed to reach 1.5 per cent of GDP by FY24, and it is assumed to stay at 1.5 per cent thereafter," it added.

India's GDP is estimated to contract by 7.7 per cent during the current fiscal, said the Economic Survey 2020-21 on Friday.

The document prepared by the Finance Ministry's Chief Economic Adviser Krishnamurthy V Subramanian said general government debt for FY20 is taken as 73.8 per cent of the GDP.

Besides, the survey cited that nominal interest rate is assumed to be 6 per cent.

"As on January 26, we estimate the weighted average cost of borrowing using the weights of general government borrowing across maturities to be 6 per cent," the report said.

Inflation is taken as 5 per cent, i.e. mid-point of the range of 4 per cent - 6 per cent, it added.