India’s GDP growth is expected to speed to 8-8.5% in FY23, according to the Economic Survey 2021-22.

Growth will be supported by “widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth, and availability of fiscal space to ramp up capital spending," the Survey said.

Tabled by the Finance Minister Nirmala Sitharaman on Monday in the Lok Sabha on the first day of the Budget session of Parliament, the Survey said there is fiscal space to do more to support the economy and it is well placed to meet the future challenges.

The Indian economy is expected to witness real GDP expansion of 9.2% in 2021-22 after contracting in 2020-21, the Survey pointed out, while warning about risks from global inflation and pandemic-related disruptions.

The survey assumed oil prices will range between USD 70 and 75 per barrel next year even though they are above USD 90 now. It also assumed a normal monsoon rainfall and an orderly withdrawal of global liquidity by major central banks. "The projection is based on the assumption that there will be no further debilitating pandemic related economic disruption, monsoon will be normal and withdrawal of global liquidity by major central banks will be orderly," the survey said.

Growth will be supported by widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth, and availability of fiscal space to ramp up capital spending.

All macro indicators indicated the economy was well placed to face challenges, helped by pick-ups in farm and industrial output growth. The growth will be supported by "widespread vaccine coverage, gains from supply-side reforms and easing of regulations, robust export growth, and availability of fiscal space to ramp up capital spending," the survey said.

 Sanjeev Sanyal, principal economic adviser at the finance ministry and the lead author of the survey, said, "India does need to be wary of imported inflation, especially from elevated global energy prices.

 India is 85% dependent on imports to meet its oil needs.

 "The global environment still remains uncertain," the survey said citing the planned withdrawal of monetary support by major central banks, including the US Federal Reserve.

 Higher rates elsewhere could lead to capital outflows for India, the Survey said.