New Delhi: Following are the highlights of Economic Survey 2013-14 presented by Finance Minister Arun Jaitley in Parliament on Wednesday.
-GDP growth seen at 5.4-5.9 percent in 2014/15
-Growth rate of 7-8 percent 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 percent 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 stabilised, 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-yr
-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 globalising 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 percent to USD 33.4 bn in 2013/14
-Improvement in fiscal deficit and CAD to feed higher growth
-India's increase in share in world services exports from 0.6 percent in 1990 to 3.3 percent in 2013 faster than goods exports
-Despite deceleration, services GDP growth at 6.8 percent was above the 4.7 percent 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 percent in 2004/05 to 21.9 percent in 2011/12.
