With 9.2 pc growth in FY22, economy to recover 101.3 pc of pre-pandemic FY20 output: Budget

With India's real GDP estimated to grow 9.2 per cent in 2021-22, the economy stands to recover 101.3 per cent of the pre-pandemic output of 2019-20, the Budget documents said on Tuesday.

It further said India's economic growth is supported by a strong rebound seen in several high-frequency indicators in the third quarter of 2021-22 and rapid progress in vaccination coverage.

"As per the first Advance Estimates of annual national income released by the National Statistical Office (NSO), India's real GDP is estimated to grow by 9.2 per cent in 2021-22, as compared to a contraction of 7.3 per cent in 2020-21.

"With this, the economy stands to recover 101.3 per cent of the pre-pandemic output of 2019-20," the Budget documents said.

On the demand side, it said the recovery has been broad-based.

According to the documents, investment and exports have achieved more than full recovery of the corresponding pre-pandemic 2019-20 levels. Private consumption has also improved to recover 97.1 per cent of the corresponding pre-pandemic levels and stands fully recovered in the second half of FY 2021-22.

It said that concurrently, private consumption expenditure is estimated to grow at 6.9 per cent in 2021-22 as against a contraction of 9.1 per cent in 2020-21. And, fixed investment is estimated to grow by 15 per cent in 2021-22 as against a contraction of 10.8 per cent in 2020-21.

The documents said government consumption expenditure is estimated to grow 7.6 per cent in 2021-22 as against 2.9 per cent in 2020- 21.

Exports and imports of goods and services are estimated to grow 16.5 per cent and 29.4 per cent at constant prices, respectively, in 2021-22.

The documents said the COVID-19 pandemic that broke out in early 2020 continued to inflict health and economic shocks across countries in 2021-22 with its resurgent waves.