India has become the fourth largest economy in the world due to a strong economic growth but still

has a low per capita income, the Economic Survey revealed on Thursday. "India has emerged as the fourth largest economy globally with a high growth rate and has improved its global ranking in terms of per capita income. Yet, the fact remains that its per capita income continues to be quite low," it said. "India has moved up the ranks, but is still the poorest among the G-20," the survey added. The per capita income of India stood at $1,527 in 2011, it said. "...this is perhaps the most visible challenge. Nevertheless, India has a diverse set of factors, domestic as well as external, that could drive growth well into the future," the survey said. Between 1980 and 2010, India achieved a growth of 6.2 per cent, while the world as a whole registered a growth rate of 3.3 per cent. As a result, India's share in global GDP more than doubled from 2.5 per cent in 1980 to 5.5 per cent in 2010, it said. Consequently, India's rank in per capita GDP showed an improvement from 117 in 1990 to 101 in 2000 and further to 94 in 2009. China, however, improved its rank from 127 to 74 during the same period. G-20 or the Group of 20 nations was formed in 1999 after the East Asian crisis as a forum of finance ministers and central bank governors. Meanwhile, the survey said any slowdown in eurozone, which accounts for 19 per cent of the global GDP, could impact the Indian economy. The International Monetary Fund (IMF) has forecast that the eurozone is likely to go through a mild recession in 2012.

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Union Finance Minister P. Chidambaram on 27 February presented the Economic Survey 2012-13 in the Lok Sabha of the Parliament. India's Economic Survey for 2012-13 pegs the country's growth at 6.1-6.7% and inflation at 6.2-6.6% for the next fiscal 2013-14 and made a strong call for cutting subsidies. Economic Survey is presented every year, just before the Union Budget. It is a flagship annual document of the Ministry of Finance, Government of India. Economic Survey reviews the developments in the Indian economy over the previous 12 months. It summarizes the performance on major development programmes, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term. The economic survey 2012-13 was prepared by a team of economists led by Chief Economic Advisor Raghuram Rajan, and pitches for speeding up economic reforms to activate a sluggish economy. It serves as an indicator of what is likely to be contained in the General Budget proposals. Following are the major Higlhlights of the Economic Survey 2012-13 • GDP growth seen at 6.1-6.7 percent in 2013/14 • Government target for fiscal deficit is 4.8 pct of GDP in 2013/14 • Government target for fiscal deficit is 3 pct of GDP in 2016/17 • Headline WPI inflation may decline to 6.2-6.6 pct by March2013 • Focus on curbing imports, making oil prices more market determined to reign in current account deficit • Foreign Institutional Investors (FIIs) flows need to be targeted towards long -term rupee instruments • Prioritisation of expenditure seen as key ingredient of credible medium-term fiscal consolidation plan

dpuf .• Raising tax to GDP ratio to more than 11 percent seen as critical for sustaining fiscal consolidation • Room for accommodative monetary policy with expected fiscal consolidation • India likely to meet fiscal deficit target of 5.7YLP3owV.1 per cent in 2012-13 • Foreign Exchange reserves remains steady at USD 295.jagranjosh. .com/current-affairs/economic-surveyof-india-201213-highlights-1361958783-1#sthash. despite significant shortfall in revenues • Recommends curbing gold imports to reign in current account deficit • Room to increase exports in the short run limited • Industrial output seen growing around 3 pct in 2012/13 • Govt priority to fight inflation by reducing fiscal impetus to demand as well as by focusing on incentivizing food production. • More jobs in low productivity construction sector • Balance of Payments under pressure with net exports decline • Service sector has shown more resilience despite global slowdown • Pitches for hike in price of diesel and LPG to cut subsidy burden • Railway freight grows by 5.6 Billion at December 2012 end.See more at: http://www.3 pct of GDP in 2012/13.

That marked a sharp pullback from 6.6 percent in 2013-14." the Survey said while endorsing the Central Statistical Organisation's (CSO) estimate of 6. as high interest rates and rising input costs constrained investment and manufacturing.6% in FY 13  GDP pegged at 8.25 percent) in 2012-13 and faster beyond that. The Survey said fiscal consolidation is likely to get back on track from 2012-13. 13:37 17 Tags: Economic Survey. which slowed reforms.Economic Survey 2012: Overview and Highlights Last Updated: Saturday. stating the Gross Domestic Product (GDP) is likely to grow 7. which would encourage investment that could have a positive impact on growth". government data released earlier showed.1 percent in October to December compared with a year earlier.6 percent (plus or minus 0. Budget 2012.6% in FY 14 . Economic survey 2012. "The growth rate of real GDP (is expected) to pick up to 7.9% in FY 12  Outlook for growth and stability promising  Real GDP growth expected at 7.9 percent in 2011-12 from 8. Following are the highlights of Economic Survey 2011-12 :  Rate of growth estimated to be 6. 2012. "There were also the pressures of democratic politics.6 percent in FY'13." said Pranab Mukherjee in Parliament. GDP rose 6.9 percent growth in July to September and was the seventh successive quarterly slowdown.9 percent growth during 2011-12. Economic Survey Highlights Zeebiz Buerau New Delhi: Finance Minister Pranab Mukherjee tabled the Economic Survey 2011-12 in Parliament on Thursday. March 17. with the easing of inflationary pressure in the months to come. It expects the economic growth to further improve to 8. India's economic growth slowed to its weakest annual pace in almost three years in the three months to December.4 percent in the previous two years mainly on account of global slowdown and domestic factors. Economic Survey overview. "Moreover. there could be reduction in policy rates by the RBI. when savings and capital formation will also begin to improve. it added. Union Budget 2012. Indian economy is likely to slowdown to 6.Economic Survey of India.

 Agriculture grows at 2. in FY 12.5 % growth in FY 12  Services grow at 9.2% in February 2010 to 1. share in GDP at 59%  Industrial growth pegged at 4-5 % in FY 13  Industry expected to improve as economic recovery resumes  Inflation on WPI was high.4 %.5% in H1 .6% in January 2012  Calibrated steps initiated to contain inflation  India remains among the fastest growing economies of the world  India’s sovereign credit rating rose by 2.98 percent in 2007 -12  Fiscal consolidation on track  Savings & Capital Formation expected to rise  Exports grew at 40. but shows signs of moderation  Inflation moderation likely to spur investment  WPI food inflation dropped from 20.

2011  Euro-zone crisis responsible for international downturn  Slowdown of Indian economy due to global. cover nearly the entire external debt stock  Central spending on social services up at 18.4% in H1  Foreign trade performance key driver of growth  Forex reserves enhanced.5% in FY 12 Vs 13. efforts needed through G-20 for stability  Progressive deregulation of interest rates on savings accounts recommended . down from 32% in FY 11  Global economy remains fragile. domestic factors  Decline in overall investment rate cause for slow recovery  Gross capital formation in Q3 of FY 12 as a ratio of GDP at 30%.49 crore households in FY 11  Sustainable development and climate change high priority  Tenuous global economic environment turned sharply adverse in September. Imports grew by 30.4% FY 07  MNREGA coverage of 5.

6 bn FY 11  Forex reserves up from USD 279 bn in March ’10 to US USD 305 bn in March’11  India now more closely integrated with the world economy  India’s share of trade to GDP of goods and services in world tripled in 1990 -2010  India’s flows of capital as a share of GDP in word increased dramatically in last two decades Inflation  Inflation to moderate further in FY 13  Renewed focus on supply side measures essential for price stability  Inflation expected to moderate at 6. especially corporate bond market  Efforts on to attract dedicated infrastructure funds  India’s foreign trade performance key driver of growth  Balance of Payments widens to USD 32.8 bn in H1 of FY 12 Vs USD 29. Deregulation of interest rates on savings accounts to help raise financial savings and improve transmission of monetary policy  Need deepening of domestic financial markets.5-7% by March end  Gap between WPI and CPI inflation narrows in FY 12 .

regular imports of agriculture commodities in smaller quantities . gram & edible oils major drivers of food inflation  Monetary policy measures taken to contain inflation  Substantial Monetary policy challenge to rein-in inflation  RBI addressed liquidity concerns  Monetary market remained orderly in FY 12 2011-12  Need to examine linkages between policy rate changes and inflation  Threat from asset price bubbles in real estate and stock markets  Scope to further sharpen monetary policy and use macro prudential to deal with above said threats  Unexpected shocks such as oil prices remain inflationary threats  High level of food stocks to help maintain overall price stability Measures for price stability in food items  Need guidance for farmers on fertilizers. eggs/meat/fish. insecticide. Milk. alternate cropping patterns  Need strategy.

 Need to set up special markets for special crops  Improve Mandi governance  Need to promote interstate trade  Perishable food items should be taken out of ambit of the APMC Act  FDI in multi brand retain will fill infra gap during harvest period  Need to step up creation of modern stores facilities for food grains Agriculture  FDI in multi-brand retail recommended  Higher levels of agricultural output augur well  Concerns over growth rate in agri sector falling short of target  Agriculture grows at 2.42 million tones .2 million tonnes  Production of foodgrains in FY 12 estimated at 250.9 % of GDP in FY 12  Foodgrains stocks at 55. allied activities account for 13.5% Vs target of 4% in five yr plan  Agriculture.

 Speedy improvement in yield through adequate investment in R&D needed  Agri infra priority area  Agri outlook for next fiscal bright Industry  Industrial growth pegged at 4-5% in FY 12  Industrial growth less than recent past and far below potential  Need to boost business sentiments. manufacturing and electricity remain aligned with overall GDP growth rate  Employment in Industry increase from 16.2% in 1999-2000 to 21. particularly in coal and natural gas segments  Electricity sector witnessed improvement .9% in 2009-10 largely due tp construction sector  Contraction in production in the mining sector. moderation in commodities prices in international market and revival of manufacturing performance  Long term average annual growth of industries comprising mining. encourage investment and identify bottlenecks  Industrial sector expected to rebound during next financial year  Industry expected to rebound with inflation easing.

3% in FY 12  Financial & non-financial services. Real Estate constituted 41.1% in FY 11 to 56.3% in FY 11  Manufacturing GCF growth rate declined to 7% in FY 11 Vs 42% in FY 10  Moderation in rate of growth of credit in infrastructure and manufacturing sectors  Need to address land acquisition and infra issue on priority Services Sector  Services sector proves saviour during global crisis  Services grow by 9. dipping to negative zone .1%  Moderation in growth in other segments of IIP  Negative growth observed in capital goods and intermediates segments  Gross Capital Formation in industry as percent to the overall GCF moderated to 48. Telecomm. Basic goods and non-durables goods grew at 6.9 % of total FDI equity inflows during April 2000December 2011  FDI inflows to the Services Sector slowed down FY 10 & FY 11. IT.4% despite slowing GDP growth  Share of services in GDP at increased from 55.

increased by 36. drugs  Imports up 29. cotton fabrics. gold and silver . gems and jewellery. electronics. face threat from Eurozone Trade  India’s exports grew at 23. FDI inflows in FY 12 recovered.4% during April . recovered in Dec-Jan  Key performers in export .petroleum and oil products.Jan 2012  Exports decelerated in Oct-Nov due to global downturn. engineering.5 bn  Key import areas -POL (petroleum. hotels and restaurants robust at 11.5% to reach USD 242.8 bn in April 2011 .3 billion (April-Dec)  Slight moderation in services growth no cause of worry  Moderation due to the steep fall in growth of public administration and defence services reflecting fiscal consolidation  Growth in trade.Jan 2011-12 at USD 391. readymade garments.8 % to USD 9.2%  Retail-sector growth expected to be even more robust in FY 13  Worry areas include real estate ownership of dwellings and business services segment  Software service exports steady. oil and lubricant).

2. red tape  Infrastructural bottlenecks need to be removed  Total investment in SEZs till 31 Dec 2011 at Rs. followed by China  India’s services exports bounce back after contraction in FY 10  India’s services exports grew 38. systemic problems  Further diversification of India’s export basket needed  Facilitate trade by removing procedural delays.7 bn Vs USD 105.49. Trade deficit in April-Jan 2011-12 at USD148.80 crore  Formal approvals granted for setting up of 583 SEZs of which 380 notified .1%  Software exports may show some sluggishness  Trade challenges include global situation.9 bn in FY 11  Growth in export of services moderated in H1 FY 12 to 17.630.4 % to USD 132.9 billion in last fiscal  Diversification of export and import markets a success  UAE India’s largest trading partner.

1 billion (4.3 bn in H1 of FY 12  Trade deficit more than 8 % of GDP and current account deficit more than 3 % sign of growing imbalance in BOP  High share of volatile FFI flows added external shock Infrastructure  Performance of broad sectors and sub sectors in key infrastructure areas presents mixed picture  Achievements in certain infrastructure sector ‘remarkable’  Need to attract large scale investment into infrastructure  Public-Private Partnership successful model  PPPs expected to augment resource availability.5% of GDP) in the H1 of FY 12  External commercial borrowing at USD 10. Forex Reserves at USD 293 bn  External Debt Stock at USD 326 bn  Oil. improve efficiency .6 billion in H1 of FY 12  Portfolio investment shows large decrease in inflow to USD 1. Gold and Silver prices contribute to modest rise in current account deficit  Net capital flows at USD 41.

Fertilizers. railway freight traffic. handling of Export Cargo at airports and number of cell phone connections show negative growth  Steel sector witnesses moderation in growth  Core and infrastructure sector still depends on public sector projects  Delays increase project risk and cost. Investment requirement at USD 1 trillion during Twelfth Plan  50% investment to come from private sector as against the 36% anticipated  Financing infrastructure a big challenge  Improvement in growth in power. cement. Natural Gas. passenger handled  Coal.6%  Challenges on form plateauing of the domestic savings and macro availability of resources . petroleum refinery. and need to be minimized  Credit growth to infrastructure sector turned negative in FY 12  Incremental credit flow to the infra sector in April-December 2011 nearly 61% in same period year before  Reduction in credit flow in power and telecom sectors  Total FDI inflows into majors infrastructure sectors during April-December 2011 registered growth of 23.

97 per USD in March 2011 to 51.4 % against USD  Rupee falls from 44. Need for innovative schemes to attract large-scale investment into infrastructure  Strengthening domestic financial institutions and development of long-term bonds market critical Rupee  Rupee falls by 12. performed under pressure in FY 12  Global market turmoil caused risk aversion and moderation in capital inflows . especially currency and equity.34 per USD in January 2012  Rupee’s high volatility impairs investor confidence  Aggressive stand to check Rupee volatility recommended Financial Markets  Volatility in global financial markets likely to tighten availability and cost of foreign funding  Government measures mitigate liquidity stress  Indian banks robust amidst Eurozone crisis  Financial infrastructure continues to function without any major disruption  Indian financial markets.

pace of reform initiatives to boost capital flows  Domestic growth concerns likely to influence financial markets movements  Concerns over Greece’s sovereign debt problem spreading to India  Banking business may become more complex and riskier in future with greater global integration  Risk and liquidity management.7 mn new farmers . skill enhancement necessary  Need to maintain sustainable levels of external debt  Need innovative steps to bring corporate bond market at the centrestage  Infrastructure financing and financing of unorganized micro/small business sector needed Banking and Micro Finance  Public sector banks show 19 % growth in priority sector lending  Credit Disbursement to agri sector exceeded target by 19 %  Credit Disbursement helped over 12. Countervailing steps helped mitigate strains  Global situation. rising trade imbalance.

000 provided in FY 12 for capital infusion in public sector banks  Growth in bank credit extended by Scheduled Commercial Banks grew at 17.1%  Flow of agricultural credit impressive  Infrastructure Debt Funds to facilitate flow of funds into infrastructure projects  Resource mobilization through primary market shows sharp decline in FY 11 Environment and Climate Change  Lower carbon sustainable growth to be central element of 12th plan  India’s per capita CO2 emissions much lower than those of developed countries even if historical emissions are excluded  Need for more sensitivity from developed countries to carbon emissions  Economic pricing of energy. 98 % public sector bank branches fully computerised  Self Help linkage programme major success  Capital in banks essential for balance sheet expansion  Rs 12. new technologies to be the key  India has taken voluntary actions to pursue sustainable development strategy .

forests  Five main challenges include climate change. low cost computing device launched  Sarva Shiksha Abhiyan norms revised to correspond with the provisions of the RTE Act  National Council for Teacher Education notified as the academic authority for teacher qualifications  Number of out-of-school children down from 134. energy security and managing urbanization  Broad-based economic and social development answer for greater sustainability Education and Employment  Reform process in education continued IN FY 12  Aakash.5 lakh in 2009  Need to scale up the successful centres of innovations. extreme weather events  India has stepped up protection of its natural environment.9 % in 2010 .6 lakh in 2005 to 81. create higher technical institutions  Labour Bureau Survey indicates upward trend in employment since July 2009 maintained  Employment in organized sector increased by 1. Warming planet may cause adverse effects. food security. water security.

49 crore households in 2010-11  Government sets up committee for developing index for fixing MGNREGA wage rates .4% in 2010 March end  MGNREGA: Coverage increases to 5. Share of women in organized-sector employment at 20.

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