Tuesday, April 12, 2011

Highlights of Economic Survey 2010-11


Highlights of Economic Survey 2010-11

Following are the highlights of Economic Survey for the fiscal year 2010-11, presented in Parliament on February 25, 2011 by the Finance Minister Mr. Pranab Mukherjee :

● Economy to grow at 8•6% in 2010-11 and 9% in the next fiscal 2011-12.
● Gross Fiscal Deficit stands at 4•8 per cent of GDP in 2010-11 down from 6•3 per cent last year.
● Agriculture to grow at 5•4% in 2010-11, showing 14•2% share in real GDP in 2010-11
● Inflation expected to be 1•5% higher than what it would be if the economy were not on growth path.
● Economy sees broad-based growth; rebound in farm and continued momentum in manufacturing, private services.
● Fundamentals strong with growing savings and investments, rapid rise in exports.
● Industrial output grows by 8•6 per cent; manufacturing sector registers 9•1 per cent.
● Exports in April-December 2010 up 29•5 per cent; imports up 19 per cent.
● Trade gap narrowed to US $ 82•01 billion in April-December 2010.
● Food inflation, higher commodity prices and volatility in global commodity markets cause of concern.
● Inflation continues to be high; need to monitor emerging trends in inflation on a sequential monthly basis.
● To check food inflation, the government should improve delivery mechanisms by strengthening institutions and addressing corruption.
● Savings rate has gone upto 33•7 per cent, while the investment rate is up at 36•5 per cent of GDP.
● Rising food inflation underlines need for larger investment in farming, enroute to 2nd Green Revolution.
● Net bank credit grows by 59 per cent.
● Social programme spending stepped up by 5 percentage points of GDP over past 5 years.
● Production of foodgrains estimated at 232•1 mn tonnes.
● Forex Reserves estimated at US $ 297•3 billion.
● Accelerated investments needed in infrastructure to address delays, cost overruns, regulatory impediments.
● Telecom sector did exceedingly well; role of services sector as the potential growth engine laudable.
● Policies needed to promote new areas such as accounting, legal, tourism, education, financial and other services.


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