Tabled in parliament Friday by Finance Minister Arun Jaitley and authored by a team led by Chief Economic Advisor Arvind Subramanian, the annual report card on the state of the economy said the growth should now rise further and double digit expansion was a possibility.
On inflation, the survey said, there has been a fall of over 6 percentage points since 2013, even as the external sector, which includes exports and inflow of foreign funds, was returning to a path of strength and resilience. Industrial growth has also picked up now.
It also had some good news to report on the farm sector. “Foodgrain production for year 2014-15 is estimated at 257.07 million tonnes and will exceed that of last years by 8.5 million tonnes.”
It also made a case for rationalisation of subsidies and said such doles did not appear to have had a transformative effect on the living standards of the poor. On the fiscal side, it said the government was committed to consolidation with revenue generation a priority.
Key Highlights of Economic Survey 2015:
* Government remains committed to fiscal consolidation, enhanced revenue generation a priority
* India needs to create additional fiscal space
* Male literacy at 80.9 percent, female literacy at 64.6 percent
* Need for balance between Make in India and Skilling India; skill development and employment are major challenges
* Food subsidy bill at Rs.1,07,823.75 crore during 2014-15 (upto January), an increase of 20 percent over previous year
* Rationalisation of subsidies and better targeting of beneficiaries will release resources for public investment in agriculture
* Create National Common Market for agricultural commodities
* Revive public investment to improve investment climate
* Inflation showed declining trend during April-December 2014-15, average WPI inflation declined to 3.4 percent against average of six percent during the previous year, WPI food inflation fell to 4.8 percent after high of 9.4 percent in 2013-14, CPI inflation touched all-time low of 5 percent after remaining high at 9-10 percent for last two years
* Government measures to control food inflation and persistent decline in crude prices resulted in declining trend in inflation
* Foodgrain production in 2014-15 estimated at 257.07 million tonnes; will exceed average foodgrain production of last five years by 8.5 million tonnes
* Agriculture and allied sectors contributed 18 percent to GDP
* Fourteenth Finance Commission will enhance fiscal federalism
* Hyper-growth in tech startups
* Rural penetration of IT services to drive Make in India mission
* Electronic visa gives fillip to tourism sector
* Growth rate of over eight percent expected in 2015-16
* Double-digit economic growth trajectory now a possibility
* Political mandate for reform and benign external environment
* Scope for big bang reforms. (IANS)