Thursday, February 28, 2008

Economic Survey of India : Highlights

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


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

1 comment:

SEO Services Consultants said...

Nice information, many thanks to the author. It is incomprehensible to me now, but in general, the usefulness and significance is overwhelming. Thanks again and good luck! Web Design Company