29/02/2008

29/02/2008

Following are the Highlights of pre-Budget Economic Survey 2007-08 :


FY'08 economic growth at 8.7%, against 9.6% a year ago

Inflation rate to decline from 5.6% in FY'07 to 4.4% in '08

Holding 9% growth a challenge, two digit growth even greater

Inflation and infrastructure biggest growth challenges

Skill dearth causing attrition, wage hike; pushing inflation
Farm growth in FY'08 seen at 2.6%, against 3.8% a year ago

Foodgrain output seen at 219.3 MT against 217.3 MT in FY'07

Acceleration in domestic investment, savings drove growth

Macroeconomic fundamentals continue to inspire confidence

Investment climate full of optimism

Industrial growth slower at 9% in first 9 months of FY'08

Costly rupee, sluggish consumer goods and infra a concern

Rupee rose by 8.9% against USD during current fiscal.

Average credit growth slowed to 26.8% in FY'07, down in '08

Forex reserves up by $91.6 bn to $290.8 bn on Feb 8, 2008

GDP projected at Rs 46,93,602 crore (mkt price) in 2007-08 *

Inflation reined despite higher commodity prices & surge incapital inflows

Growth deceleration spread across most sectors, barringpower, community services and composite category of trade,hotels, transport and communications

Cumulative increase in non-food credit by Jan 4, 2008 was11.8% as against 17.5% a year ago

Capital inflows rise to 7.7% of GDP in first half of FY'08as against 5.1% in FY'07

FDI inflows reach $11.2 bn, outward investments surge to$7.3 bn in April-September

Exports reach $111 bn in first 9 months of FY'08; Importsgrow 25.9%

Surge in capital inflows, including FDI, to continue inmedium term

Complete the process of selling 5-10% equity in previouslyidentified profit making non-navratna PSUs

Phase out control on sugar, fertiliser, drugs

Sell old oil fields to private sector

Allow a share for foreign equity in all retail trade

Raise foreign equity in insurance to 49 per cent

Allow 100 per cent FDI in greenfield private agri banks

State Electricity Regulatory Commissions should notifyrational, credible, cross subsidy to make open-access viable

Increase work week to 60 hours from 48 hours and daily limit to 12 hours.