Highlights of Economic Survey

Feb 28, Hardnews: Finance Minister P. Chidambaram presented the Economic Survey for 2007-2008 today. The budget for the new fiscal year 2008-2009 would be tabled by him on Friday. The salient points of the Economic Survey for 2007-08 are as follows:
Indian economy projected to grow 8.7 percent in 2007-08

To top $1 trillion this fiscal at market exchange rate

Inflation projected to decline to 4.1 percent in 2007-08, from 5.6 percent in 2006-07

Focus on containing inflation

Fiscal deficit to decline to 3.3 percent

Revenue deficit to decline to 1.5 percent

Gross tax GDP ratio to rise to 11.8 percent

Domestic investment and savings drive growth

Bank credit grows by 21.5 percent

Increased activity at stock markets, key indices giving returns of around 38 percent

Money registers annual average growth of 19.5 percent in 2006-07

Gross foreign direct investments (FDI) inflows reaching $11.2 billion in first six months of 2007-08

150 percent increase in net FDI inflows in 2006-07 to $23 billion.

70 percent export target achieved during April-Dec 2007

Concern: Rupee appreciation

Exporters provided relief to offset rising rupee

Industrial sector achieves 9.2 percent growth during April-Dec 2007

Services sector growth continues, transport and communications leads the way with 15.3 percent growth

13.9 percent growth in financial services in 2006-07

Revenue expenditure grows 17 percent, higher than target of 5.4 percent

Concern: infrastructure constraints

Concern: slowdown in consumer goods sector

Non-food crops production exceeds target

Food grain production in 2007-08 expected to fall short of the target by 2.2 million tonnes

Food stocks comfortable

Concern: loss of dynamism in agriculture and allied sectors

42.7 million self-help groups covered under micro finance

Fundamentals continue to inspire confidence

Investment climate full of optimism

100 percent foreign direct investment (FDI) in home appliances, rural agricultural banks

51 percent FDI in rural health

Some FDI in retail trade

Concern: Labour force growing faster than employment growth

Challenge: Maintaining 9 percent GDP growth