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India's economy is expected to grow at 8-8.5 per cent in the next fiscal, said the Economic Survey 2021-22 which was presented in Parliament on Monday by Union Finance Minister Nirmala Sitharaman.

According to the Survey 2021-22, the building back of the economic momentum along with enhanced vaccination drive as well as the likely long-term benefits of supply-side reforms in the pipeline, the Indian economy is in a good position to witness GDP "growth of 8.0-8.5 per cent in 2022-23".

Nonetheless, it pointed out that the global environment still remains uncertain.

"At the time of writing, a new wave in the form of the Omicron variant was sweeping across the world, inflation had jumped up in most countries, and the cycle of liquidity withdrawal was being initiated by major central banks.

"Despite all the disruptions caused by the global pandemic, India's balance of payments remained in surplus throughout the last two years," it said.

This trend, it said, has allowed the Reserve Bank of India to keep accumulating foreign exchange reserves.

"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."