November 29, 2022

Lukmaan IAS

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THE HIGHLIGHTS OF THE ECONOMIC SURVEY 2021-2022

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Economic Survey
THE CONTEXT: The Union Minister for Finance & Corporate Affairs, presented the Economic Survey 2021-22 in Parliament on 31 January 2022. The highlights of the Economic Survey are as follows:

STATE OF THE ECONOMY

Fiscal Developments

External Sectors

Monetary Management and Financial Intermediation

Prices and Inflation

The average headline CPI-Combined inflation moderated to 5.2 per cent in 2021-22 (April-December) from 6.6 per cent in the corresponding period of 2020-21.
Wholesale inflation based on Wholesale Price Index (WPI) rose to 12.5 per cent during 2021-22 (April to December). This has been attributed to:

Divergence between CPI-C and WPI Inflation:

This divergence can be explained by factors such as:

With the gradual waning of base effect in WPI, the divergence in CPI-C and WPI is also expected to narrow down.
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