New Delhi, Feb 27: The Economic Survey for 2007-08 would be released by the Government on Tuesday. Last year, Government had predicted an 8.1% growth rate for India.
The growth rate projected last year was close to a level witnessed by East Asian countries before the take-off phase. It had however cautioned that growth needed to come from better reforms.
It had also suggested that targets were likely to be met by March 2009. Economic Survey had also stressed on the need to get rid of oil subsidy amidst growing need for energy. Ministry had also cautioned that the economy`s rosy outlook was not devoid of risks of inflation, hardening interest rate and fiscal deficit.
Amid growing inflation in 2006-07, pre-budget projections are widely awaited this time.
Both the Prime Minister and the Finance Minister have already reassured people that government would take every possible measure to bring inflation under control.
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
Govt`s top priority: Growth without high inflation
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 USD 11.7 billion in H-1 of FY07
Exports up 36.3% to USD 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
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 USD 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
Security market
Stock market scaled new peaks with Bombay Stock Exchange and National Stock Exchange indices crossing the 14,000 and 4,000 marks respectively in January 2007.
Primary capital market remained upbeat, aggregate resource mobilisation through Initial Public Offering and private placements much higher in the calendar year 2006 as compared to previous year.
75 IPOs issued during the year 2006, on average 6 IPOs per month.
Rs 24,779 crore (Rs 247.79 billion) raised through 75 IPOs, which accounted for 76 per cent of resources mobilized through equity during the calendar year 2006.
Sensex and Nifty indices rose by 46.7 per cent and 39.8 per cent respectively on a point-to-point basis during 2006.
With stock indices soaring, investors wealth as reflected in market capitalization also increased significantly by over 45 per cent during 2006.
NSE and BSE spot market turnover more than doubled between 2003 and 2006. In respect of derivatives, the turnover of NSE nearly doubled in a single year between 2005 and 2006.
Number of foreign institutional investors rose by 27 per cent to 1044 at the end of 2006.
Assets under management of mutual funds increased by about Rs 124,000 crore to reach Rs 324,000 crore in 2006.
On future outlook of capital market, according to Survey, there may be increase of reliance on public issues as a major source of funds for Indian corporates.
Bureau Report
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