Thursday, February 25, 2010

Highlights of Economic Survey
The highlights of Economic Survey for 2009-10 (Apr-Mar) tabled by the government in Parliament:

* Indian economy seen growing 8.25-8.75% in 2010-11

* Economy expected to return to 9% growth in medium-term

* India FY11 growth seen 100 bps more than FY10

* Medium-term prospects of economic growth "really strong"

* India could be fastest growing economy in next 4 yrs

* Expect GDP growth to breach 9% mark in 2011-12

* Risk of second-dip recession in advanced nations

* India seems to be returning to pre-crisis growth rates

* India medium-, long-term growth prospects excellent

* No reason why India can't achieve double-digit growth

* See signs that food, fuel inflation spreading to other items

* Concern of higher than expected inflation in coming months

* Rapidly rising food inflation cause for concern

* Poor rain prevented seasonal food price fall post Oct

* Hype about kharif failure exacerbated WPI expectation

* Transmission of monetary policy remains sluggish

* Higher government borrowing raised banks' SLR investments

* Saving, investment rate good for medium-term growth

* Savings rate expected to rise further

* Govt should promote transparency in commodity futures

* Impact of current subsidy system questionable

* Growth in bank credit remained low in FY10

* Public sector banks better than private banks in credit growth

* Growth in food credit low so far in FY10

* Need more transparency in micro-finance functioning

* Computerisation of banking sector in completion stage

* Rise in risk appetite increased capital flows in 2009


* Need to extend NPS to central, state autonomous bodies

* Pension reforms made significant progress in India

* Challenge to expand distribution network of NPS

* Pension reforms to facilitate long-term savings

* Interdependence of corporate, MFs raising concern

* Govt intervention in markets should be minimal

* Govt shouldn't impose outright commodity futures ban

* Equity market showed signs of recovery after Apr

* Regulatory steps taken to make market sound, stable

* Seen revival in secondary market following stimulus

* Volumes in currency futures on BSE not significant

* Trading volumes in interest rate futures low

* Retail investor participation limited in corporate debt market

* Retail investor participation limited in mutual funds

* Food subsidy must be given directly to households

* Food coupons must replace existing PDS system

* Must identify poor for effective food coupon system

* Possible to switch to food coupons system by 2012

* Agriculture sector continues to be cause of concern

* Need policy initiatives to raise farm growth to 4%

* FCI should be allowed to keep flexible buffer norms

* Need to improve govt strategy for food releases

* Govt shouldn't have any dealing with fertiliser companies

* Fertiliser companies should be allowed pricing freedom

* Provide fertiliser subsidy directly to farmers

* Introduce coupon system to subsidise fertilisers Live Budget highlights on BSE India website, one can visit this link tomorrow for live updates also and these are more links for Live Budget on PC

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