**Executive Summary**
This Office Memorandum, issued by the Department of Economic Affairs on February 14th, 2023, circulates the unclassified portion of the Monthly Summary on important policy decisions for December 2022. The summary covers macroeconomic overview, important developments, and FDI proposals. The memorandum is for circulation to various government officials and departments.
**Key Points / Main Content**
* **Macroeconomic Overview:**
* India's Real GDP and Nominal GDP are projected to grow by 7% and 15.4%, respectively, in 2022-23.
* Private consumption is expected to grow by 7.7% in 2022-23.
* Gross fixed capital formation (GFCF) is estimated to grow at 11.5% in 2022-23.
* Exports are estimated to grow at 12.5% in 2022-23.
* Agriculture, forestry and fishing witnessed growth of 3.5% in 2022-23.
* Industry sector grew by 4.1% in 2022-23.
* Services sector witnessed strong rebound with growth of 9.1%
* GST collections during December 2022 were 15% higher on year-on-year basis
* **Important Developments:**
* Notifications issued in December 2022:
* First Batch of Supplementary Demands for Grants 2022-23 and Demands for Excess Grants 2019-20.
* Commemorative Coin of denomination of ₹ 150 on the occasion of 150th birth anniversary of Shri Aurobindo.
* Loan/grant agreements signed with multilateral and bilateral development agencies.
* Loan aggregating Euro 300 million with European Investment Bank for Bhopal and Pune Metro Rail Projects.
* Loan and grant aggregating to Euro 529.89 million and Euro 44 million respectively from KfW for eight projects.
* IBRD loan of USD 150 million and CTF loan of 28 million for Innovation in Solar Power and Hybrid Technologies Project
* Loans were signed with Asian Development Bank.
* Capacity building programs conducted in infrastructure sector.
* Meetings/workshops held at the official level:
* Finance Track of the G20 began in December 2022 in Bengaluru.
* Plenary Meeting of Financial Stability Board.
* Screening Committee.
* India-EU Bilateral Investment Treaty discussions.
* Board meeting of National Investment and Infrastructure Fund.
* NDB Board of Directors meetings.
* Session of IFAD Executive Board of Directors
* Meetings of Board of Directors of AIIB
* **Minimum Government, Maximum Governance:**
* The use of ICT in submission of information is being encouraged.
* **Foreign Direct Investment (FDI):**
* Number of FDI proposals cleared: 02
* Number of FDI proposals awaiting approval: 06
* **Non-Compliance of ACC directions/orders:**
* NIL
**Impact Analysis**
**All Members of the Union Council of Ministers, Government of India; Vice Chairman, Niti Aayog; Cabinet Secretary, Cabinet Secretariat; Secretary to the President of India; Secretary to the Vice-President of India; Principal Secretary to the Prime Minister; Chairman, Union Public Service Commission; All Members of Niti Aayog; Secretaries to all the Ministries/Departments, Government of India; PS to MOS (F), PPS to Finance Secretary, PPS to Secretary (EA), PPS to Secretary (Revenue), PPS to Secretary (Expenditure), PPS to Secretary (DIPAM); Shri V. Anantha Nageswaran, Chief Economic Adviser, DEA; Additional Secretary, Cabinet Secretariat; Shri Manoj Sahay, AS&FA(Finance); Ms. Aparna Bhatia, Advisor(Admn./Coord./ C&C ); Ms. Manisha Sinha, AS(G20 logistics(Coord-II)/OMI/Crypto assets and CBDC); All Heads of Divisions in Department of Economic Affairs; JS(IPP/JS(ISD)/JS(Inv)/JS(Budget)JS(FM)/All Advisers/CAA; Shri Rajesh Malhotra, DG (M&C), M/o Finance**
**Impact:** These stakeholders are informed of the important policy decisions and achievements of the Department of Economic Affairs for December 2022.
**Action Required:** Review the document to stay informed about the economic decisions and their potential implications. Consider any necessary adjustments to their respective departments or functions based on the circulated information.
Key Entities Referenced
Department of Economic Affairs: The primary department to which the policy decisions relate.
G20: The Finance Track of G20 began in December 2022 in Bengaluru and discussions related to it were held.
First Batch of Supplementary Demands for Grants 2022-23: One of the notifications issued in December 2022.
Niti Aayog: A recipient of the memorandum as well as the office of the Vice Chairman.
New Delhi: The location of the office memorandum and the location of many recipients of the memorandum.
A-45O I L I 3 I 2O22-Admn.III
Government of India
Ministry of Finance
(Department of Economic Affairs)
***
New Delhi, 14th February, 2023
CE MEMORANDUM
The undersigned is directed to circulate herewith the unclassified
portion of Monthly Summary on important policy decisions in respect of
Department of Economic Affairs for the Month of December,2022.
(Arup Shyam ury)
Deputy Secretary to the Government of India
Tel No. 2309- 5091
To
All Members of the Union Council of Ministers, Government of India,
1
New Delhi.
2 Vice Chairman, Niti Aayog, Yojna Bhawan, New Delhi.
3 Cabinet Secretary, Cabinet Secretariat, Rashtrapati Bhavan,
New Delhi.
4 Secretary to the President of India, Rashtrapati Bhavan, New Delhi.
5 Secretary to the Vice-President of India, 6, Maulana Azad Road, New
Delhi.
6 Principal Secretary to the Prime Minister, PMO, South Block, New
Delhi
7 Chairman, Union Public Service Commission, Dholpur House, New
Delhi.
8 All Members of Niti Aayog, Yojna Bhawan, New Delhi.
9 Secretaries to all the Ministries/Departments, Government of India,
New Delhi.
10. PS to MOS (F), PPS to Finance Secretary, PPS to Secretary (EA), PPS
to Secretary (Revenue), PPS to Secretary (Expenditure), PPS to
Secretary (DIPAM).
11. Shri V. Anantha Nageswaran, Chief Economic Adviser, DEA.
t2. Additional Secretary, Cabinet Secretariat, Rashtrapati Bhavan, New
Delhi.
13 Shri Manoj Sahay, AS&FA(Finance).
l4 Ms. Aparna Bhatia, Advisor(Admn./Coord./ C&C
)
15 Ms. Manisha Sinha, AS(G20 logistics(Coord-Il)/OMIi Crypto assets
and CBDC)16. All Heads of Divisions in Department of Economic Affairs.
JS (l PP/ JS (I sD) / JS (lnv) / J s (Budget)JS (FM) / Att Advisers / c tuav\
17. shri Rajesh Malhotra, DG (M&c), M/o Finance, North Block, New
Delhi.
18.
Guard File - 2022.No. A-4SOtl I 3 I 2O22-Admn. III
Government of India
Ministry of F'inance
(Department of Economic Affairsf
***
Subject: Monthly Summary on important policy decisions pertaining to
Department of Economic Affairs (DEA ! for the month of December,
20.22
1 Important policy decisions taken and major achievements during
the month:
Macroeconomic Ovenriew:
As per the First Advance Estimates of National Income released by
National Statistical office, India's Real GDp and Nominal GDp are
projected to grow by 7 per cent and 15.4 per cent, respectively tn 2022-
23. This is in line with the projections of various agencies which range
from 6-7 percent.
on the demand side, private consumption is expected to continue
momentum with growth of 7.7 per cent in 2022-23 as compared to 7.9
per cent in 2021-22. Gross fixed capital formation (GFCF) is estimated to
grow at 11.5 per cent in 2022-23, supported by Government's efforts to
invigorate capex cycle and crowd in private investment. Government's
capital expenditure crossed Rs. 5 lakh crore during April-December 2022,
which is 28 per cent higher as compared to April-December 2O2L. Share
of GFCF in GDP is estimated to increase from 32.5 per cent in 2O2l-22 to
33.9 per cent in 2022-23. Exports are estimated to grow at 72.5 per cent
in 2022-23, despite supply disruptions and uncertain geopolitical
environment. Export share in real GDP is also likely to increase to 22.7
per cent compared to 21.5 per cent in 2O2l-22.
On the supply side, agriculture, forestry and fishing witnessed growth of
3.5 per cent in 2022-23 compared to 3.O per cent in 2O2l-22. Industry
sector grew by 4.1 per cent, compared to 10.3 per cent in 2O2I-22,
possibly on account of input cost push pressures, supply chain
disruptions and China lockdown impacting availability of essential inputs
and slowing global economy. Another reason for the modest growth could
be unfavourable base effect.Services sector witnessed strong rebound with growth of 9'1 per cent
compared. to 8.4 per cent rn 2O2l-22. This has been driven by recovery of
contact-intensive service sectors--trade, hotels, transport,
communication and services related to broadcasting-- which grew by 13.7
per cent on account of release of pent-up demand. As a result of the
policy initiatives taken by the Government and India's strong growth
fundamentals, the impact of geopolitical tensions on Indian economy
seems to be less compared to other economies'
Growth momentum has been sustained in Q3 of 2022-23, as indicated by
high-frequency indicators during October-December 2022. PMI
Manufacturing at 57.8 in December 2022 reflects a robust improvement
in the health of manufacturing. This was the best since October 2O2O,
d.riven by an upturn in output and an improvement in international
demand for domestic goods. PMI Manufacturing average for the third
fiscal quarter (56.3) was the highest recorded in the last one year'
Expansion in PMI Services at 58.5 in December 2022 can be attributed to
robust intake of new work and favourable market conditions. Higher
output in the manufacturing and services sector raised the composite
PMI to 59.4 in December 2022 from 56.7 in the previous month,
signalling strong exPansion.
GST collections during December 2022 were 15 per cent higher on year-
on-year basis, crossing the Rs. 1.4 lakh crore for successive nine months.
This reflects the impact of measures taken by the Government to ensure
better compliance and reduce evasion. Other indicators such as
passenger traffic, e-way bill, electronic toll collection, etc., also point
towards resumption of domestic economic activity, indicating resilience
despite ongoing geo-political tensions.
2. Important Developments:
(i) Following notifications were issued in Decembet 2022:
(a) First Batch of Supplementary Demands for Grants 2022-23 and
Demands for Excess Grants 2Ot9-2O.
(b) Commemorative Coin of denomination of { 150 on the occasion of
150th birth anniversar5r of Shri Aurobindo
(ii) Following loan/grant agreements were signed with multilateral and
bilateral development agencies:(a) Loan aggregating Euro 300 milion with European Investment Bank)
for following two projects:
.
Bhopal Metro Rail project
.
Pune Metro Rail project
(b) Loan and grant aggregating to Euro s2g.gg million and Euro 44
million respectively for following eight projects from Kfw.
o
Green Energr Corridor-Uttar Pradesh
o
Integrated Urban Infrastructure Development in Rishikesh
o iGuarantee mechanism for scaling Rooftop solar in MSME
Sector CGTMSE
o
Green Energr Corridor-- Rajasthan
o
Ganga Rejuvenation Phase II
.
Climate Change Adaptation in the Himalaya--Manipur
o
Enerry Efficiency Programme - Mhaisal Lift Irrigation
. viii. Indo-German Solar partnership-24s MW projects-Grant
(c) IBRD loan of USD 150 million and crF loan of 2g million for
Innovation in solar Power and Hybrid rechnorogies project
(d) The following loans were signed with Asian Development Bank:
.
usD 300 million for Assam south Asia sub-regional Economic
Corridor Connectivity Improvement project
.
USD 350 million for Chennai Metro Rail project
.
USD 350 million for connecting Economic clusters for Inclusive
Growth in Maharashtra
.
USD 22o million for Tripura Distribution strengthening and
Generation Efficiency Improvement project
o
USD 110 million for Rajasthan State Highway project. USD 250 million for Strengthening Multimodal and Integrated
Logistics Ecosystem- Govt. of India
.
USD 125 Million for Flagship Investment Program-Tamil Nadu
(iii) Following capacity building programmes in infrastructure sector were
conducted:
(a) Public Private Partnership and Infrastructure Development at IIM
Kozhikode
(b) Public Private Partnership training Programme at IIM Indore and
AJNIFM, Faridabad.
(c) Project Finance for Infrastructure Projects at IIBF Mumbai
(d) Government Contracts & Litigation Management at NLSIU
Bengaluru.
(e) Project Management at IIM Calcutta
(iv) Following important meetings/workshops were held/attended at the
official level:
(a) The Finance Track of the G2O began in December 2022 in
Bengaluru. Three meetings were held in December, including:
.
First meeting of the G20 Finance and Central Bank Deputies
under India's Presidency, co-chaired by Secretary (EA) and
Deputy Governor RBI
. First G20 Framework Working Group meeting co-chaired by
Chief Economic Advisor and UK FWG
(b) Plenary Meeting of Financial Stability Board to discuss
vulnerabilities of Emerging Market and Developing Economies and
their cross-border spill overs
(c) Screening Committee that considered proposals seeking multilateral
and bilateral financing
(d) India-EU Bilateral Investment Treaty discussions
(e) Board meeting of National Investment and Infrastructure Fund
(0
NDB Board of Directors meetings(g) Session of IFAD Executive Board of Directors
(h) Meetings of Board of Directors of AIIB
3. Minimum Government, Maximum Governance
The use of ICT in submission of information is being encouraged.
4. Non-Compliance of ACC directions/orders: NIL
5. Details of FDI proposals cleared during the month and status of
FDI proposals awaiting approval in the Department:
Number of proposals cleared o2
Awaiting Approval in the Department 06