Highlights of The Economic Survey 2006-07

The Finance Minister of India Mr. P Chidambaram presented the Indian Economic Survey 2006-07 to the Parliament today. Major highlights of the survey are:

· GDP to grow 9.2%, touch Rs.. 2,844,000 crore in 2006-07
· Inflation at 6.7% (as on Feb 3) a matter of concern
· Government's top priority: Growth without high inflation
· Risks include volatile oil prices, delays in WTO talks, global macroeconomic imbalances
· Priorities include making growth inclusive, fiscal prudence, high investment improving government intervention in critical areas like education & health, subsidies to be targeted
· Agriculture to grow 2.7%, share in GDP dips to 18.5%
· Industry to grow at 10%, share in GDP up to 26.4%
· Services to grow at 11.2%, share in GDP rises to 55.1%

· 10th plan average GDP growth at 7.6% versus targeted 8%
· Average inflation in 52 weeks ending Feb 3 at 5%
· Food items, wheat, pulses, sugar driving inflation
· In industry, mining, gas and power issues of concern
· Current account deficit at $11.7 billion in H1 of FY07
· Exports up 36.3% to $89.5 bn in April-Dec 2006-07
· Capital flows strong, FDI up 98.4% in Apr-Sept 2006-07

· FIIs sellers in H1, but likely to be positive in H2
· Core sector growth 8.3% versus 5.5% in Apr-Dec 2006-07
· Infrastructure to require $320 bn in 11th plan
· Public sector to fund 60% of infrastructure
· Fiscal deficit budgeted at 2.8% in 2006-07
· Tax-GDP ratio rises to 11.2% FY07 versus 10.3% in FY06
· Personal income tax mop up rose 30.3% in Apr-Dec FY07
· Share of direct taxes in total revenues grows to 47.6%
· Stock markets buoyant, market cap rises to 91% of GDP

· Rs. 161,769 crore raised from IPOs in 2006
· Mutual funds raise Rs. 104,950 crores in 2006, up four-fold
· Corporate tax collections up 55.2% in Apr-Dec FY07
· Tourism earnings cross $6.6 bn in 2006

· Gross domestic savings rate up at 32.4% in 2005-06
· Gross domestic investment rate at 33.8% in 2005-06
· Gross fixed capital formation rises to 28.1% in 2005-06
· Savings of private corporates rise sharply at 8.1%
· High savings rate to continue

· Government final consumption expenditure up 11.5% in FY06
· Saving-investment gap turns negative at 1.3%
· Government to miss 2007 target of elementary education to all
· Employment rate grows to 2.5% in 1999-2005
· Decline in organized sector jobs
· Unemployment rate up to 3.1% in 2004-05
· Poverty down at 22% in 2004-05 versus 26.1% in 1999-2000
· Population to stabilize around 2045

Read more about the Economic Survey in The Economic Times.