Highlights of Economic Survey 2013-14
A day ahead of the Union Budget 2014-15, Indian Finance Minister Arun Jaitley has presented the Economic Survey for the year 2013-14 in Lok Sabha today (9th July 2014). According to this survey, India's economy is expected to grow between 5.4 percent and 5.9 Per Cent in the current fiscal year. A flagship annual document of the Ministry of Finance, the Economic Survey reviews the developments in the Indian economy over the previous 12 months, summarizes the performance on major development programs, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term. Below are the highlights of Economic Survey 2013-14.
Major Highlights of the Economic Survey 2013-14
A day ahead of the Union Budget 2014-15, Indian Finance Minister Arun Jaitley has presented the Economic Survey for the year 2013-14 in Lok Sabha today (9th July 2014). According to this survey, India's economy is expected to grow between 5.4 percent and 5.9 Per Cent in the current fiscal year. A flagship annual document of the Ministry of Finance, the Economic Survey reviews the developments in the Indian economy over the previous 12 months, summarizes the performance on major development programs, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term. Below are the highlights of Economic Survey 2013-14.Major Highlights of the Economic Survey 2013-14
- GDP growth seen at 5.4-5.9% in 2014/15
- Growth rate of 7-8% can occur after 2015/16
- Poor monsoon, external factors pose risk to growth
- Need subsidy reforms for fiscal consolidation
- Raise tax-to-GDP ratio for fiscal consolidation
- CAD to be contained at 2.1% of GDP in 2014-15
- Wholesale inflation expected to moderate by end-2014
- Retail inflation showing signs of moderation
- Reduce spillovers from food to non-food inflation by putting in place a formal monetary policy framework
- Contain revenue shortfall via better mobilisation, reforms
- Move towards simple tax regime, fewer exemptions, GST rate
- Need DTC as clean modern replacement for existing I-T laws
- Cutting capital expenditure not good for economy
- Changes in tax administration required
- Need sharp fiscal correction, new FRBM Act with ‘teeth’
- Government needs to move towards low and stable inflation through fiscal consolidation
- RBI intervention in forex market behind accumulation of reserves “generally”
- Rupee has stabilized, reflecting an overall sense of confidence in forex and capital markets
- Time over-runs in infra project main cause of under achievement in the sector
- Exports still fragile; Iraq crisis a risk
- Industrial growth expected to revive gradually over 2-yearr
- Indian legislation governing business need thorough revamp
- Improve business environment by shifting important decision making from inspectors to higher officers
- Re-examine laws that empower govt to interfere in markets
- Capital controls under FEMA do not support rapidly globalizing economy.
- Banking sector impacted by global and domestic slowdown
- State APMC laws hurdle to modernisation of good economy; have created cartels of buyers who possess market power
- Foodgrains production to go up to 264.4 MT in 2013/14
- Need to review nutrient—based fertiliser subsidy
- Plan to add 88,537 MW power capacity over next 5 yrs
- Allow private companies to mine coal commercially
- Gold & silver imports dropped 40% to $33.4 bn in 2013/14Improvement in fiscal deficit and CAD to feed higher growth
- India’s increase in share in world services exports from 0.6% in 1990 to 3.3% in 2013 faster than goods exports
- Despite deceleration, services GDP growth at 6.8% was above the 4.7% overall GDP in 2013/14
- 3 milestones of 2013/14: passage of PFRDA Act, shift of commodity futures trading into FinMin & presentation of FSLRC report
- Poverty ratio declined from 37.2% in 2004/05 to 21.9% in 2011/12.
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