Economic Survey: India may again become the world's fastest growing economy

India has the fiscal legroom to boost spending to achieve record growth, likely wresting the title of the world's fasted growing economy from China, according to the Budget-eve Economic Survey presented in the Parliament by finance minister Nirmala Sitharaman on Monday.

The economy will expand 8%-8.5% in the year starting April after likely growing 9.2% in the current fiscal year, going by the annual economic document.

The document, which was unveiled a day ahead of the presentation of the Union Budget, said the government had the fiscal legroom to boost investment and spending. Growth will be propelled 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."

For the second year running, Asia's third-largest economy has been hit by the Covid-19 pandemic, as disruptions and uncertainty caused by repeated waves have impacted private consumption, consumer behaviour, and supply chains. The pandemic has also accelerated shifts towards online technologies.