Economic Survey 2022 Live Updates: Growth Projection In Survey Conservative, Says CEA

Despite spike in inflation worldwide, India’s CPI is still within mandated tolerance band, Principal Economic Adviser Sanjeev Sanyal said.

"While taper creates issues on financial flows, it does presumably temper inflationary pressure," he said.

The MGNREGA demand is off-peak, but is still above pre-pandemic, according to the principal economic adviser.

"State-level MGNREGA data shows some counterintuitive trends, some migrant-sourced states that are doing better, and some migrant-recipient states not doing as well," he said.

There is a dearth of real-time unemployment data. "Have used proxies like Employees' Provident Fund Organisation data, MGNREGA numbers to study recent employment trends," he said.

According to the principal economic adviser, India's exports would have been even stronger had there not been a container shortage.

"Current account deficit is not expanding quickly and services exports are doing well," he said.

Tapering of global liquidity has been factored in, India well-placed with its reserves. The country has buffer to handle any capital flow arising due to tapering, he added.

The global demand for oil might moderate as we go into FY23, the chief economic adviser said.

"Oil demand may moderate thanks to global monetary policy and liquidity tightening, slowdown expected in developed world," he said.

Chief Economic Adviser Anantha Nageswaran expects private capex cycle to build on the back of what central and state governments have done.

"Crowding-in of private sector in capex cycle will lead to job creation," he said.

"We hope to see virtuous economic cycle that will help address loss of jobs and incomes suffered during the pandemic," he added.