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38 Economic Survey 2021-22

Disinvestment l New Public Sector Enterprise Policy and Asset Monetisation Strategy
New policy is for strategic disinvestment of public sector enterprises
Public sector commercial enterprises are classified as Strategic and Non-
Strategic sectors, with the policy of privatisation in non-strategic sectors
and bare minimum presence even in strategic sectors.
The identified strategic sectors are: (i) Atomic Energy, Space & Defense;
(ii) Transport & Telecommunication; (iii) Power, Petroleum, Coal &
other minerals; and (iv) Banking, Insurance & Financial Services
Privatization of Air India.
l National Monetisation Pipeline
Aggregate monetisation potential of ` 6 lakh crore through core assets
of the Central Government over a four year period from 2021-22 to
2024-25.
Top 5 sectors including roads, railways, power, oil & gas pipelines and
telecom account for around 83 per cent of the aggregate value.
So far, CPSEs have referred ~3400 acres of land and other non-core
assets for monetization.
Labour Reforms l Central Government notified four labour codes.

Defence l Corporatisation of Ordnance Factory Board (OFB) approved and 7 new
Defence Public Sector Undertakings created.
l FDI enhanced in Defence sector up to 74 per cent through the automatic
route and up to 100 per cent by government route

GROWTH OUTLOOK

1.44 The Indian economy is estimated to grow by 9.2 per cent in real terms in 2021-22 (as per
the First Advance Estimates), after a contraction of 7.3 per cent in 2020-21. Growth in 2022-23
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 year ahead is also well poised for a pick-up in private sector investment with the financial
system in a good position to provide support to the revival of the economy. Thus, India’s GDP
is projected to grow in real terms by 8.0-8.5 per cent in 2022-23. This projection is based on
the assumption that there will be no further debilitating pandemic related economic disruption,
monsoon will be normal, withdrawal of global liquidity by major central banks will be broadly
orderly, oil prices will be in the range of US$70-$75/bbl, and global supply chain disruptions
will steadily ease over the course of the year.

1.45 The above projection is comparable with the World Bank’s and Asian Development Bank’s
latest forecasts of real GDP growth of 8.7 per cent and 7.5 per cent respectively for 2022-23.
As per the IMF’s latest World Economic Outlook (WEO) growth projections released on 25th
January, 2022, India’s real GDP is projected to grow at 9 per cent in both 2021-22 and 2022-23
and at 7.1 per cent in 2023-24. This projects India as the fastest growing major economy in the
world in all these three years (Table 8).