New Delhi: The Economic Survey 2006-07 was presented on Tuesday in Parliament. The report said that the country must not lose its nerve over the economy's rapid growth, saying the momentum is sustainable even though containing inflation would be a challenge.
Analysts expect more steps to cool price pressures, with inflation running at a two-year high and the economy expanding at its fastest pace in 18 years.
The economy is estimated to grow 9.2 per cent in the fiscal year to March 31, raising concerns it is overheating as infrastructure fails to keep pace with rising domestic demand.
The finance ministry said in its annual economic survey for 2006-07, preceding a Budget presentation on Wednesday, that economic fundamentals were robust and the outlook for Asia's fourth-largest economy was upbeat.
Following are the highlights of the Economic Survey 2006-07 presented by Finance Minister P Chidamabaram in Parliament on Tuesday.
- GDP to grow 9.2%, touch Rs 28,44,000 crore in 2006-07
- Inflation at 6.7% on February 3 a matter of concern
- Superfast surcharge levied on second class tickets reduced by 20 per cent.
- Govt's top priority: Growth without high inflation
- 500 kms of new rail lane envisaged.
- Smart rail travel cards to be introduced.
- Risks: volatile oil prices, delays in WTO talks
- Risks: Global macroeconomic imbalances
- Priorities: Making growth inclusive
- Priorities: Fiscal prudence, high investment
- Priorities: Improving govt intervention in critical
- Areas such as education and health
- Priorities: Subsidies to be targeted
- Agriculture to grow 2.7%, share in GDP dips to 18.5%
- Industry to grow at 10%, share in GDP up to 26.4%
- Services to grow at 11.2%, share in GDP rises to 55.1%
- 10th plan average GDP growth at 7.6% vs targeted 8%
- Average inflation in 52 weeks ending Feb 3 at 5%
- Food items, wheat, pulses, sugar driving inflation
- In industry, mining, gas and power issues of concern
- Current account deficit at $11.7 billion in H-1 of FY07
- Exports up 36.3% to $89.5 bn in April-Dec 2006-07
- Capital flows strong, FDI up 98.4% in Apr-Sept 2006-07
- FIIs sellers in H-1, but likely to be positive in H-2
- Core sector growth 8.3% vs 5.5% in Apr-Dec 2006-07
- Infrastructure to require $320 bn in 11th plan
- Public sector to fund 60 per cent of infrastructure
- Fiscal deficit budgeted at 3.8 (rpt) 3.8 pc in 2006-07
- Tax-GDP ratio rises to 11.2% FY07 vs 10.3% in FY06
- Personal income tax mop up rose 30.3% in Apr-Dec FY07
- Share of direct taxes in total revenues grows to 47.6%
- Stock markets buoyant, market cap rises to 91% of GDP
- Rs 161,769 crore raised from IPOs in 2006
- Mutual funds raise Rs 104,950 cr in 2006, up four-fold
- Corporate tax collections up 55.2% in Apr-Dec FY07
- Tourism earnings cross $6.6 bn in 2006
- Gross domestic savings rate up at 32.4% in 2005-06
- Gross domestic investment rate at 33.8% in 2005-06
- Gross fixed capital formation rises to 28.1% in 2005-06
- Savings of private corporates rise sharply at 8.1%
- High savings rate to continue
- Govt final consumption expenditure up 11.5% in FY06
- Saving-investment gap turns negative at 1.3%
- Govt to miss 2007 target of elementary education to all
- Employment rate grows to 2.5% in 1999-2005
- Decline in organised sector jobs
- Unemployment rate up to 3.1% in 2004-05
- Poverty down at 22% in 2004-05 vs 26.1% in 1999-2000
- Population to stabilise around 2045
With Agency inputs
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