Economic Survey: GDP Growth seen at 5.4-5.9%

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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.

Arun-JaitleyThe 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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