Highlights of Economic Survey 2012

The economic survey highlights the road ahead for the economy. It is a report card on the performance of the economy and works as guidebook for the budget estimates for the next year..The survey paints an optimistic picture. It says that there are signs from some high frequency indicators that the weakness in the economic activity has bottomed out and a gradual upswing is imminent. Here are the highlights of the Economic Survey 2012. INFLATION, GROWTH India FY12 growth pegged at 6.9% FY12 industrial growth pegged at 4-5% FY12 farm growth pegged at 2.5% FY12 services sector growth pegged at 9.4% FY13 growth pegged at 7.6% FY14 growth pegged at 8.6% High interest rates have hurt growth in short-run Inflation pressures are moderating Gradual upswing in economic activity imminent Return to low inflation, high growth possible, necessary Prudent macro-econ policies key to price stability Primary concern has to be to boost economic productivity Savings, capital formation expected to rise Signs economic activity has bottomed out India growth slowdown partly due to domestic factors Farm sector output looks bright in next FY Growth revival seen slow initially on fall in invest rate Outlook for Indian economy looks promising Inflation expected to moderate to 6.5-7.0% March Need to maintain vigil on inflation, take apt steps Inflation expected to further moderate in months ahead High crude oil prices pose key risk to growth Expects gradual upswing in economy Top priority is to rein in inflation Inflation showing clear signs of moderation Renewed focus on supply side steps key to price stability Growth rate seen picking up from second quarter of FY13 Industrial growth seen improving hereon FISCAL HEALTH Slippage likely in Centre's fiscal outcome FY12 Efforts afoot to minimise FY12 fiscal slippage Centre's fiscal slippage on oil spurt, low revenue growth Fuel product prices still heavily subsidised Need direct transfer of subsidy for food, kerosene Need regular adjustments in domestic fuel prices Govt says states' fiscal situation seen on track May have to redraw fiscal consolidation timeline Suggests rapid fiscal consolidation Fiscal consolidation to help control inflation Favours transparent pricing as against price control Rapid fiscal consolidation only way to keep inflation down MONETARY STANCE RBI could cut rates in coming months as inflation eases Need better calibration of monetary policy Need to examine policy rate, growth linkages Scope to sharpen RBI step to tackle realty, share market bubble Real estate growth seen hit if interest rates remain high FOREX Rupee's high volatility hurts investor sentiment Need more aggressive stance to check Rupee volatility Need to build FX reserves when capital inflows strong Size of FX reserves may constrain step to check Rupee fall Need to shift foreign flows towards foreign direct investment Size of FX reserves may hamper moves to check rupee's fall Current account gap of over 3% sign of growing imbalances INDUSTRY Favours foreign direct investment in multi-brand retail Need largescale investments in infrastructure Infrastructure finance remains a key concern COMMODITIES Cap on regular farm products import should be decided annually Need regular import of farm commodities in small quantum Need to discourage unproductive imports like gold Need to regularly import farm commodities as per Need Must step up creation of modern grain storage facilities Need to take perishable farm products out of APMC Act ambit Favours single market fee to promote inter-state farm trade Need special markets for some crops to facilitate supplies GLOBAL India "too much" a part of global economy Slowdown in Eurozone economies to impact India India needs to engage with global economies better India can't just wait for global crises to end Sovereign debt crisis in Eurozone may persist for a while Global growth remains very weak Iran tension may hit oil supplies, lead to price increase MISCELLANEOUS Large, cumbersome anti-graft laws can hurt institutions To make cash transfer to poor easy via Aadhar scheme Land acquisition issues vital Generated 130 million unique identity numbers so far

Highlights of Economic Survey 2012

As the Pranab Mukherjee presents his Union Budget 2012, Industry experts give their reaction.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP