Union Finance Minister P. Chidambaram tables the Economic
Survey for 2007-08 in Parliament on February 28, 2008.
Followings are the highlights:
* Economy moves decisively to higher growth phase
* Economic growth in 2007-08 projected at 8.7 %
* Overall inflation projected to decline from 5.6 per cent in 2006-07
to 4.1 per cent in 2007-08
* Acceleration in domestic investment and savings rates.
* Buoyant growth in Government Revenues
* Investment climate full of optimism
* Concern over slowdown in consumer goods segment of industry and
infrastructure constraints
* Indian economy at market exchange rate to cross 1 trillion dollars
in current fiscal
* Growth in service sector continues to be broadbased with ‘transport
and communication’ being the fastest during the Xth Five Year Plan
* 13.9 per cent growth in financial services in 2006-07
* Annual average growth of money on an accelerating trend since
2003-04 reaching 19.5 per cent in 2006-07
* Considerable uncertainty in quantifying the downside risk arising
from the housing market and sub-prime mortgage market crisis in
US
* 150 per cent increase in net foreign direct investment inflows in
2006-07 to US $ 23 billion. Trend continues in the current financial
year with gross FDI inflows reaching US $ 11.2 billion in first six
months
* Trade to GDP ratio increases from 22.5 per cent of GDP in 2000-01
to 34.8 per cent of GDP in 2006-07
* Heightened urgency to augment and upgrade infrastructure both
physical as well as social and in particular power, roads and ports
* Persistent institutional weaknesses and implementation constrains
at different levels of government need to be addressed
* Private sector requires policy and regulations that are
comprehensive but simple and clear and credible
* Share of Central Government expenditure on social services,
including rural development, in total expenditure (Plan & Non-Plan)
increased from 10.97 per cent in 2001-02 to 16.42 per cent in
2007-08
* Agricultural growth, dependent as it is on monsoon, continues to
fluctuate. Overall foodgrains production in 2007-08 expected to fall
short of the target by 2.2 million tonnes. Need for second green
revolution particularly in rainfed areas emphasized.
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