Union Finance Minister P Chidambaram tables the Economic Survey for 2007-08 in Parliament on Thursday.
Following are the highlights:
- Economy slows down to 8.7% in 2007-08
- Inflation projected at 4.4 per cent in 2007-08.
- 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 in capital inflows
- Growth deceleration spread across most sectors, barring power, community services and composite category of trade, hotels, transport and communications
- Cumulative increase in non-food credit by Jan 4, 2008 was 11.8% as against 17.5% a year ago
- Capital inflows rise to 7.7% of GDP in first half of FY'08 as 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; Imports grow 25.9%
- Surge in capital inflows, including FDI, to continue in medium term
- Complete the process of selling 5-10% equity in previously identified 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 notify rational, credible, cross subsidy to make open-access viable
- Increase work week to 60 hours from 48 hours and daily limit to 12 hours.
