Economic survey 2013 : Growth at 6.7%

                  New Delhi, Feb 27 (Truth Dive): The Economic Survey 2013-14 prepared by the Chief economic adviser has said the economy to grow at 6.1-6.7% in the coming fiscal 2013-2014. Despite all the gloomy news the survey says that the downturn is nearing the end.

The economic survey 2013 says the plan for a medium term monetary consolidation makes sense and says that the need to step on the reforms after the economic slowdown. Banking on the global recovery, the survey feels that several measures should look up in fiscal 2013- 2014.

The survey points out that globally the economy took a hit but India in 2009-2010 recorded 8.6% growth and the next fiscal it was 9.3% which fell to 5% in the next two fiscal. Survey says that agriculture and industrial production took a hit in 2011- 2012 and 2012-2013 which resulted in economic slowdown.

It was the services sector which showed resistance to worsening external conditions. For agriculture sector it says that private investment in this sector, managing the food stocks and the distribution and trade policy for agriculture. It was cautious about the Food security bill which would push the subsidy bill. It felt that FDI in retail would pave way for improvement in technology and marketing methods of agricultural produce.

The survey has asked for the subsidy bill to come down and allow fuel and LPG be pegged at global prices. It asked for a stricter curb on gold imports which was widening the overseas trade deficit. Oil imports cannot be curbed but removing the subsidy could cut the current account deficit. Yet another measure is disinvestment in PSU. It asked the State owned banks which control 75% of the banking to reduce the size of NPA or otherwise known as bad loans.

Survey cautions Finance Ministry about increasing foreign investment in stocks and on external borrowings. The survey though does not predict anything spectacular about the stocks shot up but probably they expected the worst.

Touhid hussain

PGDM 2nd SEM