Highlights of the Economic Survey 2007-08

NEW DELHI: Following are the highlights of pre-Budget Economic Survey 2007-08 presented in Parliament on Thursday
* FY’08 economic growth at 8.7%, against 9.6% a year ago
* Inflation rate to decline from 5.6% in FY’07 to 4.4% in ’08
* Holding 9% growth a challenge, two digit growth even greater
* Inflation and infrastructure biggest growth challenges
* Skill dearth causing attrition, wage hike; pushing inflation
* Farm growth in FY’08 seen at 2.6%, against 3.8% a year ago
* Foodgrain output seen at 219.3 MT against 217.3 MT in FY’07
* Acceleration in domestic investment, savings drove growth
* Macroeconomic fundamentals continue to inspire confidence
* Investment climate full of optimism
* Industrial growth slower at 9% in first 9 months of FY’08
* Costly rupee, sluggish consumer goods and infra a concern
* Rupee rose by 8.9% against USD during current fiscal.
* Average credit growth slowed to 26.8% in FY’07, down in ’08
* Forex reserves up by $91.6 bn to $290.8 bn on Feb 8, 2008
* GDP projected at Rs 46,93,602 crore (mkt price) in 2007-08
* Inflation reined despite higher commodity prices & surge in capital inflows
* Growth deceleration spread across most sectors, barring power, community services and composite category of trade, hotels, transport and communications
* Cumulative increase in non-food credit by Jan 4, 2008 was 11.8% as against 17.5% a year ago
* Capital inflows rise to 7.7% of GDP in first half of FY’08 as against 5.1% in FY’07
* FDI inflows reach $11.2 bn, outward investments surge to $7.3 bn in April-September
* Exports reach $111 bn in first 9 months of FY’08; Imports grow 25.9%
* Surge in capital inflows, including FDI, to continue in medium term
* Complete the process of selling 5-10% equity in previously identified profit making non-navratna PSUs
* Phase out control on sugar, fertiliser, drugs
* Sell old oil fields to private sector
* Allow a share for foreign equity in all retail trade
* Raise foreign equity in insurance to 49 per cent
* Allow 100 per cent FDI in greenfield private agri banks
* State Electricity Regulatory Commissions should notify rational, credible, cross subsidy to make open-access viable
* Increase work week to 60 hours from 48 hours and daily limit to 12 hours.
* Introduce new bankruptcy law that facilitates exit of old/failed management as expeditiously as possible
* Public sector Rail Track company to own new tracks and signals

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