The government in Economic Survey 2021 projects the Indian economy to grow by a robust 11% in the financial year 2022. It also estimated India’s GDP to contract by 7.7% in FY21, the sharpest fall in four decades. This will comprise of a sharp 15.7% decline in the first half and a modest 0.1% fall in the second half.
India's fiscal deficit is projected to overshoot the initial estimates, 3.5% of GDP, in the financial year ending in March. In order to sustain the recovery in aggregate demand, the government may have to continue with an expansionary fiscal stance, the survey said.