Economic Survey of India 2012-13: Highlights

Union Finance Minister P. P-Chidambaram on 27 February presented the Economic Survey 2012-13 in the Lok Sabha of the Parliament.

India’s Economic Survey for 2012-13 pegs the country’s growth at 6.1-6.7% and inflation at 6.2-6.6% for the next fiscal 2013-14 and made a strong call for cutting subsidies.

Following are the major Highlights 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 foreign 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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