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Highlights from Arun Jaitley's Economic Survey

Wednesday, 9 July 2014 - 1:45pm IST | Place: New Delhi | Agency: PTI

  • jaitley Finance Minister Arun Jaitley

Following are the highlights of Economic Survey 2013-14 presented by Finance Minister Arun Jaitley in Parliament on Wednesday:

*GDP growth seen at 5.4-5.9% in 2014/15

*Growth rate of 7-8% can occur after 2015/16

*Poor monsoon, external factors pose risk to growth

*Need subsidy reforms for fiscal consolidation

*Raise tax-to-GDP ratio for fiscal consolidation

*CAD to be contained at 2.1% of GDP in 2014-15

*Wholesale inflation expected to moderate by end 2014

*Retail inflation showing signs of moderation

*Reduce spillovers from food to non-food inflation by putting in place a formal monetary policy framework

*Contain revenue shortfall via better mobilisation, reforms

*Move towards simple tax regime, fewer exemptions, GST rate

*Need DTC as clean modern replacement for existing I-T laws

*Cutting capital expenditure not good for economy

*Changes in tax administration required

*Need sharp fiscal correction, new FRBM Act with 'teeth'

*Government needs to move towards low and stable inflation through fiscal consolidation

*RBI intervention in forex market behind accumulation of reserves "generally"

*Rupee has stabilised, reflecting an overall sense of confidence in forex and capital markets

*Time over-runs in infra project main cause of under achievement in the sector

*Exports still fragile and Iraq crisis a risk

*Industrial growth expected to revive gradually over 2 years

*Indian legislation governing business need thorough revamp

*Improve business environment by shifting important decision making from inspectors to higher officers

*Re-examine laws that empower govt to interfere in markets

*Capital controls under FEMA do not support rapidly globalising economy.

*Banking sector impacted by global and domestic slowdown

*State APMC laws hurdle to modernisation of good economy and have created cartels of buyers who possess market power

*Foodgrains production to go up to 264.4 MT in 2013/14

*Need to review nutrient-based fertiliser subsidy

*Plan to add 88,537 MW power capacity over next 5 years

*Allow private companies to mine coal commercially

*Gold & silver imports dropped 40% to $33.4 billion in 2013/14

*Improvement in fiscal deficit and CAD to feed higher growth

*India's increase in share in world services exports from 0.6% in 1990 to 3.3% in 2013 faster than goods exports

*Despite deceleration, services GDP growth at 6.8% was above the 4.7% overall GDP in 2013/14

*3 milestones of 2013/14: passage of PFRDA Act, shift of commodity futures trading into FinMin & presentation of FSLRC report

*Poverty ratio declined from 37.2% in 2004/05 to 21.9% in 2011/12. 

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