March 16, 2012

Economic Survey: Growth for 2013 pegged at 7.6%

The fate of the railway budget might be in darkness, but the government's Economic Survey paints an optimistic picture of reviving growth and falling inflation in the country for the years 2012-13 and 2013-14.

The economic survey prepared by Finance Ministry's Chieg Economic Advisor shows that the current year’s growth will be 6.9 percent due to weakening industrial growth. But the survey sees that the growth will be 7.6 percent in 2013 and 8.6 percent in 2013-14.

The survey seems to prove people's assumption false. While the year 2012-13 is supposed to see increased taxes, subsidies cut and heavy expenditure, the finance ministry came up with the survey report ahead of the Union Budget, which will be presented on Friday.

The Economic Survey has also recommended fixed subsidy per litre of diesel sold. The inflation is showing a clear sign of moderation.

The survey states that as the fiscal consolidation gets back to track, savings and capital would rise, suggesting the moderate inflation in the coming months. The RBI could reduce the policy rates, the investors could be encouraged and there could be a positive impact on growth.

It is found that the agricultural and service sectors have a significant growth in the previous year, while the industrial sector witnessed unsatisfactory growth in the country. The GDP during April-December was 3.6 per cent as compared to 8.3 per cent in the corresponding period of the previous year.

The Economic Survey 2011-12, presented by the Finance Minister Pranab Mukherjee in the Lok Sabha today predicts that the services sector continues to perform well as its share in GDP was recorded from 58% in 2010-11 to 59% in 2011-12 with a growth rate of 9.4 per cent.

Similarly, the agriculture sector is estimated to achieve a growth rate of 2.5 per cent in 2011-12 with the rise in food grains production, which may cross 250.42 million tonnes.

The Survey points out that the inflation, which is measured by the wholesale price index (WPI), was high during most of the current fiscal year 2011-12. However, the slowdown was recorded by the year end in price rise. Particularly, the food inflation dropped significantly in the country.

No comments:

Post a Comment