Macroeconomic stability indicators suggest that the Indian economy is well placed to take on the challenges of 2022-23, the Economic Survey 2021-22 released on Monday said.
It said the combination of high foreign exchange reserves, sustained foreign direct investment, and rising export earnings will provide an adequate buffer against possible global liquidity tapering in 2022-23.
The economic impact of the "second wave" was much smaller than that during the full lockdown phase in 2020-21, though the health impact was more severe, it said.
The Survey said the Government's "unique response" comprised of safety-nets to cushion the impact on vulnerable sections of society and the business sector, significant increase in capital expenditure to spur growth and supply-side reforms for a sustained long-term expansion.
"Government's flexible and multi-layered response is partly based on an 'agile' framework that uses feedback-loops, and the use of eighty High-Frequency Indicators (HFIs) in an environment of extreme uncertainty," the Survey said.
( With inputs from ANI )
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