Indian Economic Survey 2011-12- Highlights
March 15, 2012
The Finance Ministry presents the Economic Survey in the parliament every year, just before the Union Budget. It is the ministry's view on the annual economic development of the country.
Rate of growth estimated to be 6.9%. Outlook for growth and stability is promising with real GDP growth expected to pick up to 7.6% in 2012-13 and 8.6% in 2013-14.
Agriculture and Services sectors continue to perform well. 2.5 % growth in Agro sector forecast. Services sector grows by 9.4 %, its share in GDP goes up to 59%.
Industrial growth pegged at 4-5 percent, expected to improve as economic recovery resumes.
RBI expected to lower policy interest rates, as inflationary pressures expected to ease in coming months; A low interest rate regime to encourage investment activity and push forward economic growth.
Steps required for deepening of domestic financial markets, especially corporate bond market and attracting longer-term inflows from abroad \
High borrowing costs and increase in other costs affecting profitability and internal accruals.
Slowdown in Indian economy largely due to global factors, as also because of domestic factors like tightening of monetary policy, high inflation and slower investment and industrial activities.
Inflation high, but showing clear signs of slowdown by the year-end; Whole-sale food inflation down to 1.6 per cent in January 2012 from 20.2 per cent in February 2010.
India remains one of the fastest growing economies of the world; Country's sovereign credit rating rose by a substantial 2.98 per cent 2007-12
Fiscal consolidation on track - savings and capital formation expected to rise.
Exports grew by 40.5 percent in the first half of this fiscal and imports grew by 30.4 percent.
Foreign trade performance to remain a key driver of growth.
Forex reserves enhanced - covering nearly the entire external debt stock.
Central spending on social services goes up to 18.5 percent this fiscal from 13.4 percent in 2006-07.
MNREGA coverage increases to 5.49 crore households in 2010-11.
Sustainable development and climate change concerns on high priority.
The survey acknowledges rupee volatility impairs investor confidence and has implications for corporate balance sheets and profitability in case of high exposure to ECBs when currency is depreciating. The survey therefore recommends a more aggressive stance to check rupee volatility. >