Key points of Economic Survey 2010-11

Following are the highlights of Economic Survey for the fiscal year 2010-11, presented in Parliament on Friday:

• Economy to grow at 8.6 per cent in 2010-11 and 9 per cent in the next fiscal.
• Gross Fiscal Deficit stands at 4.8 per cent of GDP in, down from 6.3 per cent last year.
• Inflation expected to be 1.5 per cent higher than what it would be if the economy were not on growth path.
• Economy sees broad-based growth; rebound in farm and continued momentum in manufacturing, private services.
• Fundamentals strong with growing savings and investments, rapid rise in exports.
• Industrial output grows by 8.6 per cent; manufacturing sector registers 9.1 per cent.
• Exports in April-December 2010 up 29.5 per cent; imports up 19 per cent.
• Trade gap narrowed to USD 82.01 billion in Apr-Dec 2010.
• Food inflation, higher commodity prices and volatility in global commodity markets cause of concern.
• Inflation continues to be high; need to monitor emerging trends in inflation on a sequential monthly basis.
• To check food inflation, the government should improve delivery mechanisms by strengthening institutions and addressing corruption.
• Savings rate has gone up to 33.7 per cent, while the investment rate is up at 36.5 per cent of GDP.
• Rising food inflation underlines need for larger investment in farming, enroute to 2nd Green Revolution.
• Net bank credit grows by 59 per cent.
• Social programme spending stepped up by 5 percentage points of GDP over past 5 years.
• Production of foodgrains estimated at 232.1 mn tonnes.
• Forex Reserves estimated at USD 297.3 billion.
• Accelerated investments needed in infrastructure to address delays,cost overruns, regulatory impediments.
• Telecom sector did exceedingly well; role of services sector as the potential growth engine laudable.
• Policies needed to promote new areas such as accounting, legal, tourism, education, financial and other services.
• Economic growth to be faster than ever before in next two decades.
• Need for efficient taxation of goods and services by a new GST regime.
• Improve convergence of social and financial inclusion schemes to check unemployment, poverty and leakages.
• Reform university and higher education; correct demand supply mismatch in job market.
• Meet resource gap in higher education through public private partnership, with regulatory oversight.