Highlights of Economic Survey
The highlights of Economic Survey for 2009-10 (Apr-Mar) tabled by the government in Parliament:
GROWTH
* 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
INFLATION
* 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
ECONOMY, FISCAL SCENARIO
* 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
BANKING
* 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
FINANCIAL INSTITUTIONS
* 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
MARKETS
* 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 PRICES
* 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
* 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
GROWTH
* 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
INFLATION
* 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
ECONOMY, FISCAL SCENARIO
* 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
BANKING
* 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
FINANCIAL INSTITUTIONS
* 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
MARKETS
* 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 PRICES
* 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
* 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
http://www.bseindia.com/budget/budget.htm 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 http://budgetlive.nic.in/
Live CNBC http://moneycontrol.com/tv/
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