Economic Survey FY21 :  GDP to contract by 7.7% in FY21, sharp recovery expected in FY22

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New Delhi : Finance Minister Nirmala Sitharaman on Friday tabled the Economic Survey for the 2020-21 financial year. The survey estimates that the Indian Economy is likely to contract 7.7% in the current financial year mainly due to the impact of the COVID-19 pandemic and the lockdown.

However, the survey has forecasted a ‘V’ shape recovery for the economy in the 2021-22 financial year to grow at 10-12 %. The sharp recovery in the GDP growth is based on low base effect and the inherent strength of the Indian economy.

The Economic Survey said that 2020-21 has been a difficult year from the fiscal perspective. Trends available in the April-November period suggest there will be fiscal slippage in the year. However, the monthly revenue collections have improved significantly in the last few months.  

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