Economic Survey 2012-13 Highlights

Following are the highlights of the Economic Survey 2012-13 which were tabled in parliament by the Finance Minister P Chidambaram.

• The economy is likely to grow 6.1 to 6.7 per cent


• Inflation has remained muted


• WPI inflation may decline up to 6.2 to 6.6 per cent


• Diesel price hike will put upward pressure on inflation


• The economy is looking up, downturn will be more or less over


• The economic slowdown is a wake-up call for stepping up reforms


• Tax mop-up this fiscal year will significantly lower the Budget target


• Trade, current account deficit is a matter of concern


• Measures to ease inflow of remittances could help meet financing current account deficit


• CPI inflation has shown a rising trend in the past few months


• The Fiscal deficit in the FY13 is to be contained at 5.3 per cent


• Finance Minister says that the room to increase exports in the short term is limited


• There is a need to examine the linkages and tradeoffs between policy rate changes and growth in the Indian context


• More attention needs to be given to asset price bubbles in the real estate and stock markets


• A longer term outlook on fiscal deficit is already outlined


• Fiscal consolidation roadmap says that the deficit will be at 3 per cent by FY17


• Addressing the key fiscal risks of petroleum subsidies is critical for the fiscal consolidation


• The Medium-term fiscal consolidation plan is credible


• The recent reforms in diesel prices and expenditure reprioritization is an indicator in that direction


• A reasonably well-developed corporate bond market is required


• There is a need for a long-term finance for infrastructure projects


• FDI in retail will pave way for investment in new technology and marketing of agriculture produce


• The survey calls for widening tax base and prioritizing expenditure to bridge the fiscal deficit


• It also calls for restricting gold imports to contain current account deficit


• Aadhaar based direct cash transfer scheme could help plug leakages in subsidies


• The survey pitches for hike in prices of diesel and LPG to cut subsidy burden


• Prospects for world trade as well as of India are still uncertain.

Last Updated on 02/27/2013

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