Economic Survey: WPI inflation may decline to 6.2-6.6% in March

Moneycontrol Bureau

The government tables the Economic Survey for 2012-13. Survey says WPI inflation may decline to 6.2-6.6 percent in March.

FY13 Economic Survey says lower inflation to create more room for rate cuts.

It says growth downturn more or less over, economy looking up. However, the key fiscal risk remains oil subsidy, which needs to be addressed. It adds that the widening trade, current account gap are matters of concern.

The FY13 Economic Survey pegs the Indian economy growth at 6.1-6.7 percent In FY14.

The survey points out that the priority for the Government will be to fight high inflation by reducing the fiscal impetus to demand as well as by focusing on incentivizing food production through measures other than price supports. But unlike the previous year, when food inflation was mainly driven by higher protein food prices, this year the pressure has been coming mainly from cereals.

On the Balance of Payments and External Position, the survey highlights that with net exports declining, India's balance of payments has come under pressure. Moreover, in the current fiscal, foreign exchange reserves have fluctuated between USD 286 billion and USD 295.6 billion, while the rupee remained volatile in the range of Rs 53.02 to Rs 54.78 per US dollar during October 2012 to January 2013.