A day before presenting the Union Budget 2014-15, Union Finance Minister Arun Jaitley has tabled the Economic Survey in Lok Sabha. According to the survey, the GDP growth is seen at 5.4 to 5.9% for the FY 2015. It said that domestic and global factors have slowed down the growth in India, which may improve in 2015.
The survey further observed that the inflation will ease in 2015. It has now left limited scopes for the RBI to cut bank rates.
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Key Features of the Economic Survey:
* FY 15 GDP growth estimated at 5.4-5.9 %
* Inflation limits scope for RBI to cut rates
* Need subsidy reforms for fiscal consolidation
* Common market needed for agricultural commodities
* Expansion of decentralized procurements for PDS
* Concerns over El Nino emergence in 2014
* Cap controls not supporting globalisation of economy
* FY 15 GDP likely to be on lower side of projection
* Improvement likely in manufacturing, balance of payment in FY 15
* Need to review nutrient-based fertiliser subsidy
* Cash transfer of subsidy required
* Need to improve market price of fuel products
* MGNREGA has created labour shortage and hiked wages
* Long term debt accounts for 78.2% of total external debt
* Service sector CAGR at 9 percent in 2011-12
* FY 15 current account deficit may be limited to 2.1 percent of GDP.
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