Highlights of Economic Survey 2008

The salient points of the Economic Survey for 2007-08 presented by Finance Minister P. Chidamabaram in the Lok Sabha Thursday:

1. Indian economy projected to grow 8.7 percent in 2007-08
2. To top $1 trillion this fiscal at market exchange rate
3. Inflation projected to decline to 4.1 percent in 2007-08, from 5.6 percent in 2006-07
4. Focus on containing inflation
5. Fiscal deficit to decline to 3.3 percent
6. Revenue deficit to decline to 1.5 percent
7. Gross tax GDP ratio to rise to 11.8 percent
8. Domestic investment and savings drive growth
9. Bank credit grows by 21.5 percent
10. Increased activity at stock markets, key indices giving returns of around 38 percent

11. Money registers annual average growth of 19.5 percent in 2006-07
12. Gross foreign direct investments (FDI) inflows reaching $11.2 billion in first six months of 2007-08
13. 150 percent increase in net FDI inflows in 2006-07 to $23 billion.
14. 70 percent export target achieved during April-Dec 2007
15. Concern: Rupee appreciation
16. Exporters provided relief to offset rising rupee
17. Industrial sector achieves 9.2 percent growth during April-Dec 2007
18. Services sector growth continues, transport and communications leads the way with 15.3 percent growth
19. 13.9 percent growth in financial services in 2006-07
20. Revenue expenditure grows 17 percent, higher than target of 5.4 percent
21. Concern: infrastructure constraints
22. Concern: slowdown in consumer goods sector
23. Non-food crops production exceeds target
24. Food grain production in 2007-08 expected to fall short of the target by 2.2 million tonnes
25. Food stocks comfortable
26. Concern: loss of dynamism in agriculture and allied sectors
27. 42.7 million self-help groups covered under micro finance
28. Fundamentals continue to inspire confidence
29. Investment climate full of optimism
30. 100 percent foreign direct investment (FDI) in home appliances, rural agricultural banks
31. 51 percent FDI in rural health
32. Some FDI in retail trade
33. Concern: Labour force growing faster than employment growth
34. Challenge: Maintaining 9 percent GDP growth

Indo-Asian News Service