Economic Survey 2014-15 tabled in Parliament: Key Highlights

The government has tabled Economic Survey 2014-15 in Lok Sabha. Here are the key points: 

• Fiscal deficit target of 4.1 per cent achievable
• Sees GDP growth of 8 per cent next year
• Avg WPI inflation falls to 3.4 per cent in 2014-15
• Sees CAD falling to 1 per cent next year
• Sees FY16 CPI in 5-5.5 per cent range
• Public investment in Railways to revive GDP growth
• Economy overcoming inflation, high deficit 
• Public investment in an efficient rail network can have positive effect on both manufacturing and aggregate output and the effects are permanent
• Upside risk to inflation from monsoon, crude oil prices 
• Sees some stress on asset quality of banks 
• Foreign portfolio flows have stabilised the rupee 
• FY 15 GDP growth estimated at 7.4 per cent  
• Govt sees scope for big-bang reforms
  
• Subdued global demand remains a threat
• Muted export growth is a concern 
• Steps taken by RBI played key role in liquidity management 
• Govt hints at scrapping gold import curbs 
• Seeks further reforms in fuel pricing policy
• PPP model should be revitalised
• Growth to gather pace in FY 17 
• GST, direct benefit transfer to be gamechangers 
• FY15 growth driven by domestic demand 
• India must aim for fiscal deficit target of 3 per cent in the medium term
• Double-digit economic growth a possibility 
• Rising non-gold imports a concern 
• Change APMC for private agriculture market
• Medium term fiscal gap target of 3 per cent
• Manufacturing and services equally important for growth
• Need balance between 'Make in India' and 'Skilling India'
• Committed to fiscal consolidation; to enhance revenue generation
• External Sector returning to strength, resilience
• More reforms on anvil; GST, expanding direct benefit transfers to be game-changers
• Gold imports averaged $1.6 bn in January
  
• Fiscal consolidation quality is the key 
• Expect  revenue from spectrum, coal block sale 
• Stalling of projects seem to have plateaued 
• Need focus on education, skill development 
• Must direct gains from subsidy cut to public investment
• April-January imports rise 2.2 per cent 
• Food subsidy bill at Rs.1,07,823.75 crore during 2014-15 (upto January), an increase of 20 percent over previous year
• Rationalisation of subsidies and better targeting of beneficiaries will release resources for public investment in agriculture
• Create National Common Market for agricultural commodities
• Inflation showed declining trend during April-December 2014-15, average WPI inflation declined to 3.4 percent against average of six percent during the previous year
• Government measures to control food inflation and persistent decline in crude prices resulted in declining trend in inflation
• Foodgrain production in 2014-15 estimated at 257.07 million tonnes
• Agriculture and allied sectors contributed 18 percent to GDP
• Fourteenth Finance Commission will enhance fiscal federalism
• Hyper-growth in tech startups
• Rural penetration of IT services to drive Make in India mission
• Electronic visa gives fillip to tourism sector
• Growth rate of over eight percent expected in 2015-16
• Political mandate for reform and benign external environment
• India needs to create additional fiscal space
• Male literacy at 80.9 percent, female literacy at 64.6 percent
• Need for balance between Make in India and Skilling India; skill development and employment are major challenges
• Overall environment positive in the economy
• Reforms recommended of Indian Railways' structure, commercial practices, technology