On investment, the Economic Survey expects that Gross Fixed Capital Formation (GFCF) will see strong growth of 15 percent in 2021-22. It also expects India to achieve full recovery of pre-pandemic level.
“(The) government’s policy thrust on quickening virtuous cycle of growth via Capex and infrastructure spending has increased capital formation in the economy lifting the investment to GDP ratio to about 29.6 percent in 2021-22, the highest in seven years,” as per the Survey.
Finance Minister Nirmala Sitharaman tabled the Economic Survey in the Lok Sabha today. It projects 8-8.5 percent growth in GDP in 2023, noting that India “has fiscal space to ramp up capex”.