New Delhi, Jan 31 (IANS): India's total consumption is estimated to have grown by 7 per cent in FY22 with government consumption being the biggest contributor, the Economic Survey tabled in Parliament on Monday said.

The Survey said that the government consumption was estimated to grow by a strong 7.6 per cent, thereby surpassing the pre-pandemic levels.

Besides, private consumption is also estimated to have improved significantly to recover 97 per cent of corresponding pre-pandemic output level.

The consumption was supported by a sharp rebound in high-frequency indicators like IIP Consumer Durables.

However, the recent dip in vehicle registrations reflects persistent supply-side constraints owing to the shortage of semiconductor chips rather than lack of consumption demand.

Further, the RBI's consumer confidence survey results on both the present situation and future expectations suggest sustained uptick in consumer sentiments.

"Also indicative of uptick in consumer sentiments is the steep rise in digital transactions, notably in UPI payments owing to the pandemic induced shift to contactless payments," the Survey said.

Going ahead, private consumption is poised to see stronger recovery with rapid coverage in vaccination and faster normalisation of economic activity, it added.