#EconomicSurvey:Finance Minister @arunjaitley tables Economic Survey in the Parliament

Finance Minister Arun Jaitley tables Economic Survey in the Parliament.

Highlights:-

• GDP growth for 2014-15 pegged at 5.4 to 5.9 per cent.
• Growth slowdown was broad based, affecting in particular the industry sector.
• Aggregate demand registered growth of 5% in 2013-14 vis-à-vis 4.7% in 2012-13 primarily due to improvement in net exports.
• Improved twin deficit may lead to higher but gradual growth, RBI stance intended to set on a dis-inflationary path.
• Plan to add 88,537 MW power capacity over next 5 years | To allow private cos' to mine coal commercially.
• Revival of industrial sector, with its economy-wide linkages, central to revival of aggregate economic activity.
• Require $1 trillion investment in infrastructure over 5 years.
• Major risk to inflation from weak #monsoon, high oil prices.
• Need to move to market determined prices for fuel products.
• Central GST could be first step towards full GST.
• Economic survey recommends raising tax-to-GDP ratio for fiscal consolidation.
• Government should move towards low and stable inflation regime through fiscal consolidation.
• Tax regime should be simple, predictable & stable consisting of a single-rate GST, fewer exemptions in direct taxes.
• Improvement in manufacturing, Balance of Payments (BoP) expected in 2014-15.
• Revival of industrial sector, with its economy-wide linkages, central to revival of aggregate economic activity.
• Agriculture, allied sector registered 4.7% growth in FY14.
• Need to expand decentralised procurement for public distribution system.
• Sharp fiscal correction, new FRBM Act, more transparency & better accounting practices and budgetary management.
• GST introduction to help states’ resource raising potential.
• Reforming the food market is a huge challenge.
• Long-term debt accounts for 78.2% of total external debt at December end.
• FY15 CAD may be limited to  around $45 bn, 2.1% of GDP.
• Subsidy reforms essential for fiscal consolidation.
• Improvement in manufacturing, Balance of Payments (BoP) expected in 2014-15.
• Need to promote structural changes in manufacturing in the medium term. 
• Headline inflation likely to moderate by end 2014. 
• India’s export growth to South Asia was robust with high growth to major SAARC countries. 
• Allowing FDI in defence has  large-scale investment scope.