The Economic Survey for 2012-13 projects a rosier picture of India's economy than what the situation on the ground appears to suggest. While it agrees with the CSO estimate that the GDP growth for the current fiscal fiscal is likely to be below 7%, it is more optimistic about the government's commitment to fiscal consolidation. The survey was released a short while after the Reserve Bank of India warned of rising oil prices and fiscal slippages.
Following are the highlights of Economic Survey 2011-12 :
* 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.
* Inflation on WPI was high but showed clear slow down by the year-end; this is likely to spur investment activities leading to positive impact on growth.
* WPI food inflation dropped from 20.2% in February 2010 to 1.6% in January 2012; calibrated steps initiated to rein-in inflation on top priority.
* India remains among the fastest growing economies of the world. Country’s sovereign credit rating rose by a substantial 2.98 percent in 2007-12.
* Fiscal consolidation on track - savings & capital formation expected to rise.
* Exports grew @ 40.5% in the first half of this fiscal and imports grew by 30.4%. 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% this fiscal from 13.4% in 2006-07.
* MNREGA coverage increases to 5.49 crore households in 2010-11.
* Sustainable development and climate change concerns on high priority.
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