The pre-Budget document on health of the economy stated that telecom, power, coal, ports, civil aviation and roads have shown signs of recovery in 2009-10.
Enthused by reforms and the strong fundamentals, the Economic Survey on Thursday predicted that India would bounce back to a high nine per cent growth in 2011-12 on the way to becoming world's fastest growing economy in four years.
Divestment in India has been a painfully slow process. Will the government finally press the gas?
Whilst substantive public allocations have been made in the infrastructure sector, this strategy is plateauing due to the fiscal deficit constraint, capacity limitation of statal implementing agencies, the declining ability of PSUs, and the precarious situation of the Railways' operating ratio. It is, thus, high time to get the policy compass to point at rejuvenating private sector investments in infrastructure, says Vinayak Chatterjee.
The Economic Survey 2009-10, which was tabled in the state legislature on Tuesday, says that there are only 148 tigers in the state as compared to 268 in 2007.
In what may not sound music to the ears of those advocating 'Maharashtra for Marathis', the state saw over 32 lakh migrants from other parts of the country -- almost 3.3 per cent of the state's total population -- during 1991-2001.
Pranab Mukherjee touched upon the problems and the initiatives needed to spur Indian Economy, but there is hardly anything on table for the industry to cheer about.
If the Budget is status quo, the market will not fall much and the rewards for going long would be high.
If the Budget is status quo, the market will not fall much and the rewards for going long would be high.
Even as global investors were pulling out their money from India, Non-Resident Indians (NRIs) deposited $1 billion in bank deposits (net of withdrawals) during the three month period of October-December 2008. There was a net outflow of $0.9 billion in the same period a year ago, according to the Economic Survey.
The investment by FIIs in equity instruments amounted to $5.4 billion during April-May 2009, while a turnaround has been noticed in the performance of mutual fund industry that had remained subdued during 2008, the survey stated. The mutual fund investments (net) in equity markets turned positive in March 2009 and were Rs 2,320 crore (Rs 23.2 billion) during April-May 2009, the survey said, adding they invested Rs 36,791 crore (Rs 367.91 billion) in debt instruments.
Marketmen feel the reformist wishlist prescription for the government for next five years though presents a good road-map for future growth but is hard to implement. The Economic Survey mooted the idea of doing away with cess, surcharges on taxes and initiating reforms in petrol pricing and financial sector, besides recommending a disinvestment target of Rs 25,000 crore (Rs 250 billion) annually.
The Economic Survey has suggested that Contract Law should also be amended, which would help in utilising such labour mainly in non-core activities. In addition, the survey has observed that labour laws should be applicable to companies that pay wages to contract labour.
About 4.5 crore (45 million) households across the country benefited from the pioneering National Rural Employment Guarantee Scheme in the financial year 2008-09, an increase of 32 per cent over the previous year, says the Economic survey.
The prescription coincides with government declaring disinvestment as one of its top most priorities for mobilisation of resources, particularly, as it is free from the pressures of the Left parties that had obstructed the process in the last five years. Asking the government to sell a minimum of 10 per cent equity in all profit-making unlisted PSUs, it said: "Complete the process of selling 5-10 per cent equity in previously identified profit making non-Navratnas."
It is high time that petrol and diesel prices were decontrolled taking advantage of low inflation and global crude prices, the Economic Survey said, while criticising the government for its "imperfect" handling of oil price hike.
The Economic Survey, to be tabled in Parliament on Thursday, is likely to provide an assessment of the impact of the global financial meltdown on the Indian economy and outline the strategy to spur growth and contain the mounting fiscal deficit.
The government today extended the tenure of Chief Economic Adviser Arvind Virmani by three months on a temporary basis, said a finance ministry spokesperson. His current two-year term came to an end on Tuesday.
Last year, the Survey suggested a long list of reforms, but most of these found no place in the Budget.
Emerging from the shadow of the global slowdown, Indian economy has shown clear signs of revival with a likely 1.51 lakh (151,000) jobs being added in a year till September 2009, the Economic Survey said on Thursday.
Boosted by a strong recovery in 2009, Meanwhile, other leading indices in the region which witnessed a cumulative gain in the six-year period include China's SSE Composite Index (116.9 per cent) Kospi index of South Korea (104.4 per cent), Hong Kong's Hang Seng index (74.2 per cent), Malaysia's Kuala Lumpur Composite Index (58.7 per cent) and TSEC weighted index of Taiwan (32.3 per cent).
The growth of the Indian pharmaceutical industry has been fuelled by exports, which increased 25 per cent in 2008-09. "Exports of pharmaceuticals have consistently outstripped imports," the Survey said.
After a lull in 2008, Indian equities once again became the favourite bet for foreign funds, who pumped in nearly Rs 88,000 crore (Rs 880 billion) in domestic shares in 2009, the Economic Survey said on Thursday.
The proposed units comprise seven coking coal washeries and 13 non-coking coal washeries.
RIL's predominantly gas rich KG-D6 block, off the east coast, has also helped boost availability of the environment friendly fuel in the country.
Nirmala Sitharaman's maiden Budget has not disappointed but vision and details, particularly for the revival of agriculture, are missing.
'It is almost certainly wrong in assuming that the Modi government will use its strong mandate to undertake some serious reform measures.' 'For it is fairly clear that the government's priorities lie elsewhere, in the powerful home minister's domain,' notes T N Ninan.
'I am sure Dr Patra will get the fullest cooperation from the finance minister who needs workhorses, not prima donnas constantly looking to improve their CVs,' says T C A Srinivasa-Raghavan.
While P Muralidhar Rao, BJP general secretary, says, 'Digital electioneering is here to stay until the elections in 2021,' the BJP's rallies in Bihar will not be confined to cyberspace. Its strategists have devised other ways of getting around the hygiene protocol that Covid-19 has entailed.
Presenting the Union Budget in Parliament recently, finance minister Pranab Mukherjee proposed estimated divestment proceeds of Rs 1,120 crore (Rs 11.2 billion) for 2009-10, which includes divestment in Rail India Technical and Economic Services, Cochin Shipyard Ltd, Telecommunications Consultants India Ltd, Manganese Core India Ltd, Rashtriya Ispat Nigam Ltd and Satluj Jal Vidyut Nigam Ltd.
While the focus on infrastructure means more business for PSU banks, the lack of risk-assessment capability is a major issue.
More than 600,000 Indians, many employed in the gems and jewellery sector, lost jobs in just four months from October 2008 as the impact of the global economic crisis hit the country's shores.
It pointed out that the capital market scenario in 2008 should be seen in the backdrop of heightened uncertainties triggered by the international financial crisis, slowdown in the global economic growth, fluctuations in international food, commodity and fuel prices and volatility in overseas financial markets.
Suggesting delinking of spectrum from telecom licences, the Economic Survey for the year 2008-09 has suggested auctioning radio frequencies for the forthcoming 3G mobile services.
The Lok Sabha will apply guillotine on discussions on demands for grants by the third week so as to complete the entire budgetary process in Parliament by July 27.
His interaction was webcast live on Twitter.
One popular strategy is to hire contract workers.
Speaker Meira Kumar said in her valedictory address that the Lok Sabha lost over 23 hours and 34 minutes due to interruptions and forced adjournments, but it sat late for 30 hours and 52 minutes to transact important financial and other business.
The country's growth may moderate to 6.25 per cent -- the lower end of the forecast by the Economic Survey for 2008-09 -- in the current fiscal if the global economic downturn prolongs, the Lok Sabha was informed on Friday.
The total debt increased from Rs 97,674 crore (Rs 976.74 billion) during 03-04 to Rs 142,383 crore (Rs 1,423.83 billion) during 2007-08. The debt was Rs 161,277 crore (Rs 1,612.77 billion) in 2008-09, the report, which was tabled in the state legislature on Tuesday, stated.
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