Highlights of Economic Survey, 2005-06

Highlights of Economic Survey 2005-06

• Economic Survey 2005-06 tabled in Parliament.
• Odds favour growth momentum continuing
• Interest rates may harden
• Savings rate up at 29.1 per cent of GDP
• Investment rate up at 31 per cent of GDP
• Industrial growth at 7.8 per cent (April-Dec)
• This year's 8% growth the fifth in recorded history
• Three-year trend points to new phase of cyclical upswing
• Agriculture growth at 2.3 per cent
• Foodgrains output up by 5 million tonnes to 209
• Inflation rate projected at 5% in current fiscal
• In medium-term, inflation likely to fall
• Fiscal and revenue deficit targets to be met
• Tele-density increases to 11.32 per cent
• Current account deficit surfaces after a gap of 3 years
• Trade deficit increases
• Bold policy reforms in oil sector required
• Policy required for speedy development of infrastructure
• Indian industry needs to be unburdened from high taxes
• Forex reserve down by $2 bn to $139.2 bn (till Jan'06)
• 5.56 crore Kisan Credit Crads issued till November 2005
• Exports grow by 18.9% (April-January) period
• Imports growth at 26.67% in April-January period
• FDI inflow at 3.2 billion dollar (April-September)
• Rs 1,72,000 cr investment required for national highway
• Rs 40,000 crore required for Airports
• Rs 50,000 cr investment needed for ports
• A substantial share of investment for infrastructure development to come from private sector
• Potential to absorb $150 bn FDI in next 5 years
• Power sector remains main impediment to growth
• GDP loss due to power shortage pegged at Rs 3,00,000 cr
• Caution over formation of sixth pay commission
• Eco Survey calls for single energy regulator