Economy likely to grow at 6.1-6.7%: Economic Survey 2013

New Delhi: India’s economy is likely to grow at 6.1-6.7 per cent in the fiscal 2013-14, according to the Economic Survey tabled in Parliament on Wednesday by union finance minister P Chidambaram.

The economic survey for the next fiscal year was presented a day before the General budget. The projected growth triggered Nifty to cross 5,800 mark in afternoon trade. The survey is likely to bring a positive result during economic slowdown and inflation.

It can be noted that India’s economy is repairing slowly following a series of reforms announced by the government. The minister expected that revival will be modest in growth in the next fiscal.

Here are the Highlights of the Economic Survey 2013:

1. Economy likely to grow 6.1-6.7%
2. Headline inflation may decline to 6.2-6.6% by March this fiscal
3. Lower inflation will create more room for rate cuts
4. Urgent need to bring up diesel and LPG prices, which are being subsidised
5. Tax collection is significantly lower than expected
6. Diesel price hike to put upward pressure on inflation
7. Increasing oil prices a major concern (if oil prices rise, growth would be hit and inflation could once again move upwards)
8. Fiscal deficit for financial year 2013-14 will be 4.8 per cent
9. Fiscal deficit in FY13 to be contained at 5.3 per cent
10. Urgent need to cut gold imports to curb current account deficit
11.Import moderation may be limited due to fall in gold imports
12. Economy is repairing after global shocks
13. Economic slowdown is a wake up call for stepping up reforms
14. Slower growth has hurt tax mop up this fiscal, which is significantly lower than Budget target
15. Lower rates will give investment boost
16. CPI inflation has shown rising trend in past few months
17. Room to increase exports in the short term is limited
18. Need to examine the linkages and tradeoffs between policy rate changes and growth in the Indian context
19. Greater attention should be given to asset price bubbles in real estate and stock markets
20. Fiscal consolidation roadmap says deficit at 3 per cent by FY17
21. Medium-term fiscal consolidation plan credible
22. Reasonably well-developed corporate bond market required

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