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Economic Survey 2013-14: Highlights

Finance Minister Arun Jaitley tabled the Economic Survey for FY 2013-14 in Lok Sabha on Wednesday, ahead of the Union Budget.

GDP growth seen at 5.4-5.9 pc in 2014/15

Growth rate of 7-8 pc 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 pc 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 pc 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 pc in 1990 to 3.3 pc in 2013 faster than goods exports

Despite deceleration, services GDP growth at 6.8 pc was above the 4.7 pc 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 pc in 2004/05 to 21.9 pc in 2011/12.

Setting up public finances by tax & expenditure reform

Creating legal & regulatory framework for well-functioning market economy

CAD at USD 32.4 billion (1.7% of GDP) 2013-14 as against USD 88.2 billion (4.7% of GDP) in 2012-13

Foreign exchange reserves up from USD 292 bn at end March 2013 to USD 304.2 bn at end March 2014

Exports up 4.1% in 2013-14, compared to previous year’s negative growth of 1.8%

: Economic Survey 2013-14

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