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Following are the highlights of Economic Survey 2013—14 presented by Finance Minister Arun Jaitley in Parliament today:
* GDP growth seen at 5.4-5.9% in 2014/15
* Growth rate of 7-8% 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% 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-yearr
* 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% to $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% in 1990 to 3.3% in 2013 faster than goods exports
* Despite deceleration, services GDP growth at 6.8% was above the 4.7% 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% in 2004/05 to 21.9% in 2011/12.
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