Economic Survey 2022: From being among Fragile Five countries, India transforms to 4th largest forex reserve holder ahead of China, Japan and Switzerland

India was the fourth largest forex reserve holder as of December 2021 accoring to the Economic Survey 2022 released on Monday. The continuous inflow of the forex reserve has trasnsformed india from the earlier Fragile Five countries to the the fourth largest forex reserve holder, the survey noted.  

India was the fourth largest forex reserves holder in the world after China, Japan, and Switzerland as on November 2021.

See Zee Business Live TV Streaming Below:

The forex reserve stood at USD 633.6 billion at end of December 2021 as against USD 577 billion at the end of March 2021, the Economic Survey document said.

“India’s transformation from being among the Fragile Five countries in the wake of the earlier episode to the 4th largest forex reserve holder during the current episode,” it said.

“Indian economy stands guard with an added advantage of plenty of policy room for manoeuvring as the process of normalisation of monetary policy by systematically important central banks takes hold,” the survey said.

The robust capital flows were sufficient to finance the modest current account deficit (CAD), resulting in an overall balance of payments (BoP) surplus of USD 63.1 billion in H1 of 2021-22. That led to an augmented foreign exchange reserves crossing the milestone of USD 600 billion and touched USD 633.6 billion as of December 31, 2021.

The Survey has also etimated India’s Gross Domestic Product (GDP) growth between8-8.5 per cent for FY23. This is down from the earlier estimates of 9.2 per cent. As for financial year 2021-22, it is estimted at 9.2 per cent.

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 USD 70-USD75/bbl, and global supply chain disruptions will steadily ease over the course of the year.

The Economic Survey 2022 was tabled by Finance Minister Nirmala Sitharaman on Monday. It was prepared by the Chief Economic Adviser (CEA) Dr V. Anantha Nageswaran.

The Budget Session of the Parliament began today with President Ramnath Kovind addressing the joint session of the Pariament. 

Economic Survey is preseented one day ahead of the Union Budget. Finance Minister Nirmala Sitharaman will be presenting her third full budget on Tuesday.