The Economic Survey for 2013-14 tabled in Parliament by Finance Minister
Arun Jaitley on Wednesday - prepared by senior economic advisor Ila Patnaik -
on the state of Asia's third-largest economy a day before Modi's new government
presents its first budget.
Following are key highlights of the report:
1. Growth: GDP growth seen at 5.4 - 5.9 percent in 2014/15
- Economic growth of 7-8 percent not seen before 2016/17
- Economic growth of 7-8 percent not seen before 2016/17
2. Fiscal Health: Fiscal deficit for
2013-14 contained at 4.5% of the GDP
3. Inflation:
- Government needs to move towards low and stable inflation through fiscal
consolidation
- Wholesale Price Index (WPI) inflation expected to moderate by end-2014
- Consumer Price Index (CPI) inflation showing signs of moderation
4. Current Account Deficit: 2014/15 current
account deficit may be contained to around $45 billion or to 2.1 percent of GDP
5. Balance of Payments: Improvement in
balance of payments position during late 2013-14 was swift thanks to import
restrictions and economic slowdown
- Need to adjust to advanced economies' eventual exit from accommodative monetary policy stance
- Need to adjust to advanced economies' eventual exit from accommodative monetary policy stance
5. Taxation: Government needs to
move towards simple tax regime, fewer tax exemptions and single rate of goods
and services tax (GST)
- GST to play vital role in indirect tax reform
- Direct Taxes Code (DTC) required to replace existing income tax laws; will reduce compliance costs and boost tax collection
- GST to play vital role in indirect tax reform
- Direct Taxes Code (DTC) required to replace existing income tax laws; will reduce compliance costs and boost tax collection
6. Agriculture: India ranks first in the world in productivity of
grapes, banana, cassava, peas, and papaya
- Agriculture sector growth rate 4.7% in the year 2013-14
- Agriculture exports grow by 5.1% in the year 2013-14
- Exports of marine products show a growth rate of 45% in the year 2013-14
- Agriculture sector growth rate 4.7% in the year 2013-14
- Agriculture exports grow by 5.1% in the year 2013-14
- Exports of marine products show a growth rate of 45% in the year 2013-14
7. Industrial
Performance: Industry grew by just 1.0 percent in 2012-13 and slowed further in
2013-14, posting a modest increase of 0.4 percent.
- During 2013-14, FDI inflow (including equity inflows, reinvested earnings and other capital) was USD 36.4 billion.
- Overall gross bank credit flow to industry has increased by 14.9 percent in 2013-14.
- During 2013-14, FDI inflow (including equity inflows, reinvested earnings and other capital) was USD 36.4 billion.
- Overall gross bank credit flow to industry has increased by 14.9 percent in 2013-14.
8. Services: India ranked 12th in terms of services GDP among the world’s
top 15 countries
- India has the second fastest growing services sector with its CAGR at 9.0 percent, just below China
- The growth rate of the combined category of trade, hotels, restaurants, transport, storage, and communications decelerated to 3.0 percent
- Financing, insurance, real estate, and business services grew robustly at 12.9 percent
- Services constitute a 57 percent share in GDP at factor cost in 2013-14
- India has the second fastest growing services sector with its CAGR at 9.0 percent, just below China
- The growth rate of the combined category of trade, hotels, restaurants, transport, storage, and communications decelerated to 3.0 percent
- Financing, insurance, real estate, and business services grew robustly at 12.9 percent
- Services constitute a 57 percent share in GDP at factor cost in 2013-14
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