The much-awaited Economic Survey 2021-22 and the Union Budget 2022-23 has been announced. Both the announcements have reiterated the phenomenal rebound in economic recovery for India.

The GDP growth rate is projected at 9.2% for 2021-22. Further, the economy is expected to grow at 8-8.5% in FY-2023. All the three pillars of our economic growth – agriculture, manufacturing, and services – have shown remarkable growth and impressive resilience in bouncing back.

The economic activity seems to have recovered to pre-pandemic levels. Our economy appears to be well-poised to take on challenges ahead. Our ‘agile’ policy response differed from the ‘waterfall’ strategy adopted by most other countries in 2020.

This agility in policy response brought in not only pre-emptive measures but also divergent economic measures to support various sectors of the economy.

Massive vaccination drive and high coverage proved to be the strongest macroeconomic indicator! India has metamorphosized from being among the ‘Fragile Five’ nations to having the 4th largest foreign exchange reserves (almost $650 billion)! It is always good to be rich and be in a comfortable position to tackle any unforeseen demons.

In line with the robust macro-economic indicators cited in the Economic survey, the Union Budget is laid out with an ethos and vision to boost economic growth and sustainable development for the next 25 years (wishing these to be the ‘Amrit Kaal’) – making India ready for a fantastic 100!

India is one of the fastest-growing emerging economies of the world. In an all-inclusive growth, the focus is on complementary initiatives on the macro and micro levels.

The government has massively increased the capital expenditure target to Rs 7.5 lakh crore from Rs 5.5 lakh crore in the last Budget for FY23. The major infrastructure projects include expanding highways in the country by 25,000 kms, allocating Rs 60,000 crore to the Nal se Jal scheme, an additional Rs 48,000 crore in the PM housing scheme, and boosting infrastructure development in the North-East.

Further, from green bonds to digital university, the enhanced focus is on fintech and environmental concerns. Other significant initiatives announced include virtual digital assets like cryptocurrency and non-fungible tokens under the tax net.

So, my dear investors, what is the takeaway from the significant events of the last two days? Trust your country. India is on a sustainable growth path.

We are the country with the highest growth rate! The ‘agile’ policies of the government and the appropriate support from the RBI to combat the unprecedented pandemic mammoth have been instrumental in the rebound witnessed by the Indian economy.

However, the present world scenario is not so hunky-dory. The world is still recovering from the pandemic mayhem. Several countries are battling unprecedented inflation levels; crude is on the boil, central banks are in a dilemma for commencing tapering and increasing interest rates. Recent geopolitical turmoil at Ukraine-Russia borders has ripple effects across continents.

India is expected to shine bright for several years ahead. India is the future investment destination of the world. So, continue your investments. Book profits when markets are expensive and re-deploy in the future.

Fin-tech, Edu-tech, ESG (responsible investing) is expected to drive upwards in the coming years. Be open and start exploring new investments. 

Overall, keep your portfolios well diversified across all asset classes based on your risk appetites. Your money is here to grow! Let us embrace the forthcoming Amrit-Kaal with agility in our investment decisions!

Best Regards

 
Dr. Tarunika Jain Agarwal Ph.D.

Alpha Research