Economy slows down to 8.7% in 2007-08
Inflation projected at 4.4 pc in 2007-08
3 manufacturing sector to grow at 9.4 pc in current financial year, lower from 12 pc in 2006-07
Lower agriculture growth at 2.6 pc in 2007-08 from 3.8 pc in 2006-07
Government sets target of 9 pc GDP growth during 11th Five Year Plan (2007-2012)
Maintaining 9% rate challenging
Double-digit growth tougher still
Deceleration this year was expected
Fundamentals "inspire confidence"
Investment climate "full of optimism"
But labour force growing faster than employment growth
Unemployment rate higher by 1pc in five years to 2005
Subsidies to increase by Rs 6,550 cr over Budget Estimate
Budget estimate for subsidies was Rs 51,247 cr
Glosses over off-Budget subsidies
Inflation seen at 4.1 pc this year
Inflation lower than 5.6 pc last year
Inflation mainly led by primary non-food items
Fuel and power group prime contributors to inflation
Investment goods inflation declines to 4.3 pc
Positive for investment
Farm growth seen at 2.6%, against 3.8% a year ago
Foodgrain output seen at 219.3 MT against 217.3 MT in FY'07
Acceleration in domestic investment, savings drove growth
Macroeconomic fundamentals continue to inspire confidence
Industrial growth slower at 9 pc in first 9 months of FY'08
Costly rupee, sluggish consumer goods and infra a concern
Rupee rose by 8.9 pc against USD during current fiscal
Average credit growth slowed to 26.8% in FY'07, down in '08
Forex reserves up by $91.6 bn to $290.8 bn on Feb 8, 2008
GDP projected at Rs 46,93,602 cr (mkt price) in 2007-08
Inflation reined despite higher commodity prices %26 surge in
capital inflows
Cumulative increase in non-food credit by Jan 4, 2008 was 11.8 pc as against 17.5 pc a year ago
Capital inflows rise to 7.7 pc of GDP in first half of FY'08 as against 5.1% in FY'07
FDI inflows reach $11.2 bn, outward investments surge to $7.3 bn in April-September
Exports reach $111 bn in first 9 months of FY'08; imports grow 25.9 pc
Surge in capital inflows, including FDI, to continue in
medium term
Complete the process of selling 5-10% equity in previously identified profit making non-navratna PSUs
Phase out control on sugar, fertiliser, drugs
Sell old oil fields to private sector
Allow a share for foreign equity in all retail trade
Raise foreign equity in insurance to 49 pc
Allow 100 pc FDI in greenfield private agri-banks
State Electricity Regulatory Commissions should notify
rational, credible, cross subsidy to make open-access viable
Increase work week to 60 hours from 48 hours and daily limit
to 12 hours
Introduce new bankruptcy law that facilitates exit of old/
failed management as expeditiously as possible
Public sector Rail Track company to own new tracks and
signals
Situation of excess inflows is likely to remain, though the
pressure on reserve accumulation and exchange rate
appreciation is likely to ease
Urgent need to place the highest priority on building roads
Urban land ceiling laws and limitations of rent control acts
needs to be urgently addressed
Irrigation a major constraint on raising crop productivity
Urgent need for a regime that supports predictable user
charges, a financial system that allocates risk efficiently,
and project selection based on sound commercial and legal
principles to ensure transparency
Import dependence to meet energy needs should be reduced by tapping coal reserves, accelerating exploration of oil and gas and fully exploiting the nuclear and hydro potential for
power generation
http://in.news.yahoo.com/indiabroadcast/20080228/r_t_ibn_nl_general/tnl-60040-3a4f8c1.html
No comments:
Post a Comment