ECONOMIC SURVEY 2012-13

•  Presented by: Finance Minister P. Chidambaram
• The survey takes stock of the economic performance of the country over the preceding 12 months and serves as a guidebook for the budget estimates for the following financial year.

 HIGHLIGHTS:

• India's GDP growth seen around 5 per cent in 2012/13
• Economy likely to grow 6.1-6.7 per cent in 2013/14
•  Fiscal deficit in FY13 to be contained at 5.3 per cent
•  Fiscal consolidation roadmap says deficit at 3 per cent by FY17
•  Addressing key fiscal risks of petroleum subsidies is critical for fiscal consolidation
• Widening tax base and prioritizing expenditure seen as key ingredients of credible medium-term fiscal consolidation plan
• Raising tax to GDP ratio to more than 11 pct seen as critical for sustaining fiscal consolidation
• WPI inflation may decline to 6.2-6.6 per cent
•  Diesel price hike to put upward pressure on inflation
•  Economy looking up, downturn more or less over. Economic slowdown a wake-up call for stepping up reforms
• Trade, current account deficit matter of concern
• Focus on curbing imports, making oil prices more market determined to rein in current account deficit
•  Recommends curbing gold imports to reign in current account deficit
• Industrial output seen growing around 3 pct in 2012/13
•  Need long-term finance for infrastructure projects
• Foreign Institutional Investors (FIIs) flows need to be targeted towards long-term rupee instruments
• India on verge of creating quality jobs to seize 'demographic dividend'
• The Economic Survey is integral to the budget process, bringing out the economic trends in the country on the eve of the budget presentation. This facilitates a better appreciation of resource mobilization and allocation in the budget. The economic survey released by the government paints a "cautiously optimistic" picture of the economy.