**Executive Summary**
This document is an office memorandum from the Government of India, Ministry of Finance, Department of Economic Affairs, dated December 31st, 2021. It circulates the unclassified portion of the Monthly Summary on important policy decisions of the Department of Economic Affairs for November 2021. The memorandum is addressed to various government officials and departments.
**Key Points / Main Content**
* **Macro-Economic Overview:**
* India's economic recovery gained momentum in Q2 of 2021-22, surpassing pre-pandemic output levels.
* Growth of real GDP in Q2 of 2021-22 is estimated at 8.4% over Q2 of 2020-21, and H1 growth is 13.7% over H1 of 2020-21.
* The H1 output of 2019-20 (pre-pandemic year) is more than 95.6% recovered.
* Recovery is most significant in exports (113%) and agriculture & allied sectors (108%) compared to pre-pandemic levels in H1.
* Mining contracted by 14.0% in Q2 over Q1 of 2021-22 due to heavy rains. Sector-wise growth rates are provided in the annexure.
* **Other Important Developments:**
* A Gazette Notification No.G.S.R.No. 783(E) dated 08.11.2021 has been issued for the issue of Circulatory Coins of Rs.1, 2, 5, 10 and 20.
* Gazette Notification No.G.S.R.No. 806(E) dated 18.11.2021 has been issued for the issue of a Commemorative Coin of Rs. 100 for the centenary celebrations of Harcourt Butler Technical University, Kanpur.
* Loan agreements were signed and negotiations were held with multilateral and bilateral development agencies in November 2021.
* Loan Agreements Signed:
* ADB: USD 300 million for strengthening primary health care.
* World Bank: USD 250 million for Supporting Andhra's Learning Transformation (SALT) Project.
* ADB: Additional USD 250 million for Industrial Corridor Development Programme.
* ADB: USD 61 million for Agartala City Urban Development Project.
* Loans Negotiated:
* USD 500 million for Accelerating State Education Program.
* USD 350 million for Sustainable Urban Development and Service Delivery Program.
* USD 112 million for Assam Skill University Project.
* An orientation program on AIIB's revised Environmental and Social Framework was jointly organized by AIIB and DEA on 2nd November, 2021, with ~150 officials from State Governments and Central Departments.
* **Meetings Attended:**
* Hon'ble Finance Minister attended meetings on the development of GIFT City, capital expenditure acceleration, and investment climate enhancement.
* Secretary (EA) chaired a meeting on MIGA engagement with India on November 18th, 2021.
* Additional Secretaries, DEA attended NDB Board of Directors meeting, and meetings related to MIGA engagement, World Bank projects, Indo-German Annual Negotiation, AIIB Board of Directors meeting, and DEA Screening Committee.
* **Other Discussions and Negotiations:**
* International Platform for Sustainable Finance (IPSF) Annual Event
* Four meetings of Financial Stability Board (FSB)
* The 26th Early Warning Group (EWG) meeting
* A round of discussion between India and UAE on Comprehensive Economic Partnership Agreement (CEPA)
* 8th round of discussion between India and Russia on Bilateral Investment Treaty (BIT)
* Final round of negotiations on Investment Incentive Agreement (IIA) between India and USA
* First round of negotiations on Bilateral Investment (BIT) between India and Australia
* Second round of negotiations on BIT between India and Cambodia
* The 7th Tripartite Portfolio Review Meeting (TPRM) for New Development Bank NDB)
* The 6th Tripartite Portfolio Review Meeting (TPRM) for AIIB
* **Minimum Government, Maximum Governance:** The use of ICT in the submission of information is encouraged.
* **Non-Compliance:** There was no non-compliance of ACC directions/orders.
* **FDI Proposals:** 13 FDI proposals are awaiting approval.
**Impact Analysis**
**All Members of the Union Council of Ministers, Vice Chairman NITI Aayog, Cabinet Secretary, Secretaries to the President and Vice-President of India, Principal Secretary to the Prime Minister, Chairman UPSC, All Members of NITI Aayog, Secretaries to all Ministries/Departments, PS to MOS (F) and PPS to Secretaries, Chief Economic Adviser, Additional Secretary, AS&FA(Finance), Additional Secretaries, Principal Economic Adviser, Heads of Divisions in Department of Economic Affairs, Sr.Adviser, Addl.DG (M&C).**
**Impact**
These stakeholders are informed about the economic policy decisions and developments within the Department of Economic Affairs for November 2021.
**Action Required**
These stakeholders need to be aware of the information provided in the summary to inform their respective roles and responsibilities in policy-making and implementation.
**State Governments and Central Departments**
**Impact**
150 Technical officials benefitted from an orientation program on AIIB's revised Environmental and Social Framework, jointly organized by AIIB and DEA.
**Action Required**
To utilize the insights and knowledge gained from the orientation program to implement sustainable practices in their respective domains.
Key Entities Referenced
Department of Economic Affairs (DEA): The primary subject of this monthly summary, responsible for the policy decisions outlined.
Ministry of Finance: The parent ministry of the DEA, under whose authority the policy decisions are made.
Asian Development Bank (ADB): An international financial institution providing loans for development projects in India, mentioned in the context of loan agreements.
World Bank (International Bank for Reconstruction & Development): An international financial institution providing loans for development projects in India, mentioned in the context of loan agreements.
Niti Aayog: A policy think tank of the Government of India, involved in economic policy discussions.
No. A-45O1 1 I 4 I 2O2l-Aatmo'lll
Government of India
Ministry of Finance
(Departmert of Economic Affatrsl
***
New Delhi, 31"t December,2O2l
OFFICE MEMORANDUM
The undersigned is directed to circulate he rewith the unclassified
portion of Monthly Sum-ary on important policy decisions in respect of
bepartment of Economic Affairs for the Month of November, 2021'
,{ 4[,r,
(Arup Shyam Chbwdhury)
Deputy Secretary to the Government of India
Tel No. 23095091
To
Members of the Union Council of Ministers, Government of India,
1 A11
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
(DTPAM).
11. Chief Economic Adviser, DEA.
12. Additional Secretar5r (Shri A. Giridhar) Cabinet Secretariat, Rashtrapati
Bhavan, New Delhi.
13. Ms.Meera Swarup, AS&FA(Finance).
1.4. Shri A.M. Bajaj, Additional Secretary (FM), DEA
15. Shri Rajat Kumar Mishra, Additional Secretary (Budget), DEA.
t6. Shri Sanjeev Sanyal, Principal Economic Adviser, DEA
t7. A11 Heads of Divisions in Department of Economic Affairs.
Sr.Adviser (C&C/FSLR/FS&CS)/JS (IPP)//JS0SD)/JS(Budget)/
JS (C&C)/Js(lnv)/ Advisor(BC) /Adviser (Admn)/ Advisor (Investment)
/ Advisor (Economic Division) / Advisor (IER) / Advisor (IPF) / CAAA.
18. Shri Rajesh Malhotra, Addl.DG (M&C), M/o Finance, North Block, New
Deihi.
19 Guard File - 2027.!
No.A-450 1 | I 4 I 2O2l -Admn.lll
Government of India
Ministry of Finance
(Department of Economic Affairs)
***
Subject: Monthly Summary on important policy decisions pertainlng
to Department of Economlc Affairs (DEAI for the month of
November,2O2l.
Macro-Economic Overview
1
lndia's economic recovery gained further momentum in second quarter (Q2)
(July-September) of 2021-22 to surpass its corresponding pre-pandemic output level.
Recovery was supported by decline in infections cases, easing of restrictions and rapid
vaccination coverage. GroMh of real GDP in Q2 of 2021-22 is estimated at 8.4 % over
Q2of 2020-21. GrowthinHl (O1+O2)of 2021-22accordinglyworksouttol3.T%over
H1 ot 2020-21. With this, more than 95.6 % of the H1 output of 2019-20, the pre-
pandemic year, stands recovered. On the demand side, recovery of pre-pandemic
levels, in H1 of 2021-22 is most significant in exports al 113 o/o. Recovery in private
consumption is close to 92.3 % in H1.On the supply side, recovery of pre-pandemic
levels in H1 of 2021-22 is most significant in agriculture & allied sectors at 108 % and
recovery in manufacturing is about 99.9 %.Mining sequentially contracted by 14.0 o/o in
Q2 over Q1 of 2021-22 owing to disruption caused by heavy rains. The sector wise
grovuth rates are given in the annexure.
2.
Other lmportant Developments:
A Gazette Notification No.G.S.R.No. 783(E) dated 08.11.2021 has been issued
for issue of Circulatory Coins of Rs.1,2,5,10 and 20.
Gazette Notification No.G.S.R.No. 806(E) dated 18.11.2021 has been issued
.
for issue of Commemorative Coin of denomination of Rs. 100 to commemorate
the occasion of Harcourt Butler Technical University, Kanpur centenary
celebrations.
t. Following loan agreements were signed and negotiations were held in certain
cases with multilateral and bilateral development agencies during the month of
November, 202'l
:Loans Signed:
a) Loan agreement with Asian Development Bank (ADB) for financing USD 300
million for 'Strengthening Comprehensive Primary Health Care in Urban Areas
Program' under the Pradhan Mantri Ayushman Bharat Health lnfrastructure
Mission Project.
b) Loan agreement with World Bank (lnternational Bank for Reconstruction &
Development) for financing USD 250 million for Supporting Andhra's Learning
Transformation (SALT) Project;
c) Loan agreement with the Asian Development Bank (ADB) for additional
financing USD 250 million for lndustrial Corridor Development Programme -
Subprogram-l;
d) Loan agreement with the Asian Development Bank (ADB) for financing USD 61
million for Agartala City Urban Development Project;
Loans Negotiated:
a) Negotiations were held for financing of USD 500 million for Accelerating State
Education Program;
b) Negotiations were held for financing of USD 350 million for Sustainable Urban
Development and Service Delivery Program;
c) Negotiations were held for financing of USD 112 million for Assam Skill
University Project.
An orientation program on Asian lnfrastructure lnvestment Bank's (AllB) revised
Environmental and Social Framework was jointly organised by AllB and DEA on
2nd Novembe , 2021 , wherein about 50 technical officials from State
r 1
Governments and Central Departments participated.
3.
Following important meetings were held during the month of November,
2021:
Hon'ble Finance Minister Smt.Nirmala Sitharaman attended the following
meetings during the month:Authority (IFSCA) and other stakeholders on the matters of development and
growth of GIFT City as an lnternational Financial Service Centre.
b)
Chaired review meetings with M/o Power, M/o Coal & D/o Atomic Energy on 1"t
November, 2021 and with M/o Road Transport and Highways, M/o Petroleum
and Natural Gas & M/o Steel on 2nd November, 2021 to give a fillip to capital
expenditure (CAPEX) and to accelerate capital spending & timely infrastructure
development.
c)
lnteracted with Chief Ministers, Finance Ministers of States/ Lt. Governors of UTs
via virtual conference on '15th November, 2021 to step up investment,
infrastructure, and growth and to enhance the investment climate in the country
in the wake of strong recovery post pandemic.
Secretary (EA) chaired a meeting on MIGA engagement with lndia on 18th
November, 2021 wilh officials from DEA, MIGA and World Bank.
Additional Secretaries, DEA attended the following meetings during the month:
t
a) On 2nd November, 2021 attended NDB Board of Directors meeting to discuss on
es for Risk Mitigationand Strategi ,matters related to bank's financial matter.
b) On 11th November, 202'1 attended AllB Board of Diretorsmeeting whereinthe
-million for Chennai City Partnership '150 board approved financing USD
Supporting sustainable and integrated delivery of urban services in the Chennai
Metropolitan Area.
c) On 12th November, 2021 chaied a virtual meeting with participants from DEA
and Multilateral lnvestment Guarantee Agency (MIGA) on MIGA engagement in
Financing Projects in lndia
d) On 15-17 November, 2021 chaired the Tripartite Portfolio Review virtual Meeting
with the World Bank and PlAs for review of ongoing projects financed by the
World Bank.
e) On 24th November, 2021 attended the lndo-German Annual Negotiation Meeting
wherein the German side committed Euro 1.29 billion funds for various financial
and technical cooperation projects
f1
On 25th November, 2021 attended the AllB Board of Diretors meeting to consider
banks operation and investment projects.
g) On 30th November, 2021 chated lhe 122"d meeting of the DEA Screening
Committee for consideration of proposals seeking financing from Multilateral
Development Banks/Bilateral Agencies.lnternational Platform for Sustainable Finance (IPSF) Annual Event was held on
4th November 2021 on the side-lines of COP26 in Glasgow. The representative of
the Government participated in the said meeting.
Four meetings of Financial Stability Board (FSB) were held in November, 2021 to
discuss financial stability outlook, Debt overhang and scarring effects of COVID-
19, exit from COVID-1 9 measures, digital transformation and implications for
financial stability, and FSB's deliverables to G20 in 2022. The representative of
the Government partlcipated in the said meeting.
The 26th Early Warning Group (EWG) meeting was held on November 30,2021
to discuss issues like (a) risk assets took severe beating on 26th November due
to world-wide alert regarding new COVID variant (Omicron) and resurgence of
the pandemic in Europe, (b) continued robust demand outstripping supply are
likely to keep crude oil prices high, (c)equity valuations continue to be high, (d)
FPI Flows experiencing volatility,(e)simmering roll-over risks arising from asse!
liability mismatch in NBFCs and HFCs. The representative of the Government
participated in the said meeting.
v A round of discussion between lndia and UAE on Comprehensive Economic
.
Partnership Agreement ( CEPA) investment Chapter was held on gth November,
2021
v 8th round of discussion between lndia and Russia on Bilateral lnvestment Treaty
t
(BlT) was held on 12th November, 2021.
Final round of negotiations on lnvestment lncentive Agreement (llA) between
IX
lndia and USA was held on 18-19 November,2021 in New Delhi.
First round of negotiations on Bilateral lnvestment (BlT) between lndia and
X
Australia was held on 23'd November, 2021
.
Second round of negotiations on BIT between lndia and Cambodia was held on
24th November, 2021.
x The 7th Tripartite Portfolio Review Meeting (TPRM) for New Development Bank
NDB) assisted projects in lndia was held on 17th November,2021 to review '16
on-going projects and 15 pipeline projects. The representative of the
Government participated in the said meeting.The 6ft Tripartite Portfolio Review Meeting (TPRM) for AIIB assisted
x111.
projects in India was held on 16e November, 2O2l to review 19 on-going
projects and 20 pipeline projects. The representative of the Government
participated in the said meeting.
4. Minimum Government, Maximum Governance
In particular, use of ICT in submission of Information is being
encouraged.
5.
Non-Compliance of ACC directions/orders
Nil
6.
FDI proposals cleared duriag the month and status of FDI proposals
awaiting approval in the Department:
Awaiting Approval in the Department: 13(Annexure)
Table 1: Real Growth in demand side of GDP and its components (per
centf
Growth Growth Recovery
Components over Q2 over Ql over H1
of 2O2O-21 of 2O2l-22 of 2Ol9-2O
Total Consumption 8.6 4.8 92.7
Government Consumption 8.7 (-l t4.2 94.7
Private Consumption 8.6 9.2 92.3
Gross Fixed Capital Formation 1 1.0 1 1.8 91.8
Change in Stock 2.7 7.8 lo2.t
Valuables 183.3 603.6 155.1
Exports 19.6 8.4 113.0
Imports 40.6 16.8 104.8
8.4 10.4 95.6
GDP
Source: National Statistical Offrce, MoSPI
Table 2: Real Growth of GVA and its components on the Supply Side (per centf
Growth Growth Recovery
Hl
Sectors over Q2 over Q1 over
of 2O2O-2L of 2O2l-22 of 2Ol9-2O
Agriculture & Allied Sectors 4.5 (-) 16.2 108.O
Industry 6.9 5.9 98.6
Mining & quarrying 15.4 (-)14.0 102.5
Manufacturing 5.5 7.9 99.9
utility
Electriciry, gas, water supply & other 8.9 5.2 107.2
I
Construction 7.5 8.7 92.1
Services LO.2 16.2 92.6
Trade, Hotels, Transport, Communication and
8.2 24.9 80.1
Services related to Broadcasting2o/2o-21 2o.21-22
Items
(April-June) (April-June) (Pf
Current Account Balance (in US$ 19.1 6.5
Current Account Balance / GDP (Per 0.9
Source: Reserve Bank of India.
Table 8: Foreign Exchange Resenres (in US$ billionf
End-March,2O21 577.O
19.11.20.21 640.4
Source: Reserve Bank of India
Table 9: Exchange Rate ofthe Indian Rupee (Rupee per unit offorelgn
currencyl
Pouad
US Dollar Euro Japanese yen
Sterling
18.11.2021 74.1552 roo.0482 83.9190 64.9rOO
Source: Reserve Bank of India
Table lO: External Debt (US$ Bitlion)
Percentage
as at end of as at end of
variation
June 2O2O PR June 2021 P
al2lrl-
(1) t2t
ry1OO
Total External debt
555.2 57 i.3 2.9
outstan
Source: Quarterly Report on External Debt as at end June 2021, RBL.
Table 11: Industrial Production Highlights
Monthly Growth (YoY) in per cent
Jtaly 2O2O August September
Index of Industrial Production (lIP)
(-) 10.s c) 7.1 1
Jrtly 2O2l August September
i 1.5 11 9 3.1Table 12: Eight Core Industries
Monthly Growth (YoY) in per cent
August 2O2O September October 2O2O
2020
(-)6.e 0.6 (-) 0.s
Eight Core Industries (ICI)
August 2021 Septernber October 2O21
2o.21
I
11 5 4.5 7.5