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Wednesday, 27 February 2013

Highlights of Economic Survey



Following are the major Higlhlights of the Economic Survey 2012-13

GDP growth seen at 6.1-6.7 percent in 2013/14

Government target for fiscal deficit is 4.8 pct of GDP in 2013/14

Government target for fiscal deficit is 3 pct of GDP in 2016/17

Headline WPI inflation may decline to 6.2-6.6 pct by March2013

• Focus on curbing imports, making oil prices more market determined to reign in current account deficit

• Foreign Institutional Investors (FIIs) flows need to be targeted towards long-term rupee instruments

• Prioritisation of expenditure seen as key ingredient of credible medium-term fiscal consolidation plan

• Raising tax to GDP ratio to more than 11 percent seen as critical for sustaining fiscal consolidation

•  Room for accommodative monetary policy with expected fiscal consolidation

• India likely to meet fiscal deficit target of 5.3 pct of GDP in 2012/13, despite significant shortfall in revenues

• Recommends curbing gold imports to reign in current account deficit

• Room to increase exports in the short run limited

Industrial output seen growing around 3 pct in 2012/13

• Govt priority to fight inflation by reducing fiscal impetus to demand as well as by focusing on incentivizing food 
production.

• More jobs in low productivity construction sector

• Balance of Payments under pressure with net exports decline

• Service sector has shown more resilience despite global slowdown

• Pitches for hike in price of diesel and LPG to cut subsidy burden

• Railway freight grows by 5.1 per cent in 2012-13

Foreign Exchange reserves remains steady at USD 295.6 Billion at December 2012 end.


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