Major Highlights of the Economic Survey 2013-14
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Growth rate of 7-8% can occur after 2015/16
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Poor monsoon, external factors pose risk to growth
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Need subsidy reforms for fiscal consolidation
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Raise tax-to-GDP ratio for fiscal consolidation
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CAD to be contained at 2.1% of GDP in 2014-15
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Wholesale inflation expected to moderate by end-2014
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Retail inflation showing signs of moderation
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Reduce spillovers from food to non-food inflation by putting in place
a formal monetary policy framework
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Contain revenue shortfall via better mobilisation, reforms
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Move towards simple taxregime, fewer exemptions, GST rate
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Need DTC as clean modern replacement for existing I-T laws
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Cutting capital expenditure not good for economy
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Changes in tax administration required
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Need sharp fiscal correction, new FRBM Act with 'teeth'
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Government needs to move towards low and stable inflation
through fiscal consolidation
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RBI intervention in forex market behind accumulation of reserves
“generally”
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Rupee has stabilized, reflecting an overall sense of
confidence in forex and capital markets
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Time over-runs in infra project main cause of under achievement
in the sector
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Exports still fragile; Iraq crisis a risk
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Industrial growth expected to revive gradually over
2-year
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Indian legislation governing business need thorough revamp
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Improve business environment by shifting important
decision making from inspectors to higher officers
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Re-examine laws that empower govt to interfere in markets
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Capital controls under FEMA do not support rapidly globalizing
economy.
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Banking sector impacted by global and domestic slowdown
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State APMC laws hurdle to modernization of good econom
have created cartels of buyers who possess market power
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Foodgrains production to go up to 264.4 MT in 2013/14
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Need to review nutrient—based fertilizer subsidy
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Plan to add 88,537 MW power capacity over next 5 yrs
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Allow private companies to mine coal commercially
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Gold & silver imports dropped 40% to $33.4 bn in 2013/14Improvement
in fiscal deficit and CAD to feed higher growth
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India's increase in share in world services exports from
0.6% in 1990 to 3.3% in 2013 faster than goods exports
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Despite
deceleration, services GDP growth at 6.8% was above the 4.7% overall GDP in 2013/14
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3 milestones of 2013/14: passage of PFRDA Act, shift of commodity
futures trading into FinMin & presentation of FSLRC report
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Poverty ratio declined from 37.2% in 2004/05 to 21.9% in
2011/12.