India Infoline comments on Economic Survey 2008-09

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While commenting on the Economic Survey 2008-09, Ashutosh Datar from IIFL said, "The Economic Survey 2008-09 was presented to the Parliament on Thursday by the Finance Minister Pranab Mukherjee. It acknowledged that recovery in the global economy (especially US) and passage of crucial reforms was critical for India to return to its high growth path of 7-8%."

"On reforms front, the survey had all the right prescriptions especially its suggestions regarding disinvestment, rationalization of STT, FBT and various surcharges, implementation of the GST, removal of government monopoly in sectors such as coal, hike in FDI limits. However, in the near term, government will likely be constrained by high fiscal deficit in rationalizing some of the proposals relating to direct taxes so not everything may be implemented in the upcoming budget."

"Also, there never was much debate on the choice of medicines the economy needed. It was the implementation that was wanting, but the strong mandate that the current UPA government has given it the chance to improve its implementation track record. Therein lays the upside case for the India story."