Economic performance of 2020-21

 India’s Economic Performance in 2020-21

• India’s real GDP to record a 11.0% growth in FY2021-22 and nominal GDP to grow by 15.4%.
• India expected to have a Current Account Surplus of 2% of GDP in FY21, a historic high after 17 years.
• India remained a preferred investment destination in FY 2020-21 with FDI pouring in amidst global asset shifts towards equities and prospects of quicker recovery in emerging economies:
  • Net FPI inflows recorded an all-time monthly high of US$ 9.8 billion in November 2020, as investors’ risk appetite returned.
  • India was the only country among emerging markets to receive equity FII inflows in 2020.
• V-shaped recovery is underway, as demonstrated by a sustained resurgence in high frequency indicators such as power demand, e-way bills, GST collection, steel consumption, etc.
• India became the fastest country to roll-out 10 lakh vaccines in 6 days and also emerged as a leading supplier of the vaccine to neighbouring countries and Brazil.
• India adopted a four-pillar strategy of containment, fiscal, financial, and long-term structural reforms:
  • Calibrated fiscal and monetary support was provided, cushioning the vulnerable in the lockdown and boosting consumption and investment while unlocking.
  • A favourable monetary policy ensured abundant liquidity and immediate relief to debtors while unclogging monetary policy transmission.
• Innovation
  • India entered the top-50 innovating countries for the first time in 2020 since the inception of the Global Innovation Index in 2007, ranking first in Central and South Asia, and third amongst lower middle-income group economies.