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Economic Survey 2007-2008

Finance Minister, Shri P. Chidambaram has summed up in one phrase the outlook for 2008-09 as "optimism, but with caution as the watchword." There are a number of things going in favour of India. We need to capitalize on these opportunities while at the same time responding to the evolving situation in the global economy in a manner that our growth story is not affected ... Click here

Economic survey favours more liberalisation ... Click here

Highlights of Economic Survey 2007-08 presented in Parliament on 28th February 2008

Economy moves decisively to higher growth phase

Economic growth in 2007-08 projected at 8.7 %

Overall inflation projected to decline from 5.6 per cent in 2006-07 to 4.1 per cent in 2007-08

Acceleration in domestic investment and savings rates.

Buoyant growth in Government Revenues

Investment climate full of optimism

Concern over slowdown in consumer goods segment of industry and infrastructure constraints

Indian economy at market exchange rate to cross 1 trillion dollars in current fiscal

Growth in service sector continues to be broadbased with ‘transport and communication’ being the fastest during the Xth Five Year Plan

13.9 per cent growth in financial services in 2006-07

Annual average growth of money on an accelerating trend since 2003-04 reaching 19.5 per cent in 2006-07

Considerable uncertainty in quantifying the downside risk arising from the housing market and sub-prime mortgage market crisis in US

150 per cent increase in net foreign direct investment inflows in 2006-07 to US $ 23 billion. Trend continues in the current financial year with gross FDI inflows reaching US $ 11.2 billion in first six months

Trade to GDP ratio increases from 22.5 per cent of GDP in 2000-01 to 34.8 per cent of GDP in 2006-07

Heightened urgency to augment and upgrade infrastructure both physical as well as social and in particular power, roads and ports

Persistent institutional weaknesses and implementation constrains at different levels of government need to be addressed

Private sector requires policy and regulations that are comprehensive but simple and clear and credible

Share of Central Government expenditure on social services, including rural development, in total expenditure (Plan & Non-Plan) increased from 10.97 per cent in 2001-02 to 16.42 per cent in 2007-08

Agricultural growth, dependent as it is on monsoon, continues to fluctuate. Overall foodgrains production in 2007-08 expected to fall short of the target by 2.2 million tonnes. Need for second green revolution particularly in rainfed areas emphasized.

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