Economic Survey: Likely to welcome reforms, push for growth

A day before the Budget, Finance Minister P Chidambaram will table the Economic Survey 2013-14 in Parliament on Wednesday. The main focus of the survey is likely to be on accelerating economic growth. The Central Statistical Organisation estimates project a 5 per cent growth this year, which is the lowest in a decade. Prepared by a team of economists, led by Chief Economic Advisor Raghuram Rajan, the Survey is likely to suggest a series of steps to arrest the declining GDP growth.

There are high expectations from Raghuram Rajan as experts say he understands the international markets well. The tone of the Economic Survey is likely to be of marked caution and it may reflect some optimism on next year's outlook.

The Survey is likely to make a strong case for economic reforms to speed up growth. It may welcome the government's recent reform initiatives with regard to partially deregulating diesel price, opening up of FDI in retail and liberalising foreign investment norms for various sectors, including insurance.

Taking into account persistent contraction of industrial production and exports, ways to enhance industrial production and exports are also likely to dominate the Survey.

On the taxation front, the Survey could pitch for early implementation of the Goods and Services Tax and the Direct Taxes Code. Surge in gold imports and widening Current Account Deficit are likely to figure prominently in the Survey.

As the official assessment of the country's economy, the Survey is customarily tabled in Parliament by Finance Minister ahead of the General Budget. The document is viewed as being important because it prescribes steps for the government to deal with various economic problems, leaving the onus of taking hard decisions on the government.

(With additional information from PTI)