Economic Survey of India 2012 - 13 Highlights

The Economic Survey 2013 says that foreign exchange reserves were steady at $295.6 billion at December 2012 end. Fiscal deficit may be at 5.3%, possible that Chidambadarm may bring it down to 5.2%, committed to controlling fiscal deficit. Food inflation was mainly driven by cereal prices. Diesel price hike will put upward pressure on inflation. The Survey also said that the economic slowdown is a wake up call for stepping up reforms.

Here are the other highlights:
● FY13 GDP growth target of 5% not difficult to achieve
● Medium term fiscal consolidation plan 'credible'
● Fund flows to be influenced by risk perception of investors
● Need to hike Diesel, LPG prices in line with global prices
● Montek says: Not surprised finance ministry has used CSO estimates for basis of survey
● Need to access credit at lower costs
● Tight RBI policy led to sharper than expected slowdown
● RBI rate cut has had massive impact already
● On inflation, survey echos sentiment that in short run, impact of policy easing may not increase inflation
● Curb import, keep public spending in check
● FY14 Current account deficit seen at 4.6%
● Cushion for lowering trade deficit must be limited
● Core inflation down on rbi action, fall in global prices
● Tight RBI policy led to sharper than expected slowdown
● Further steps needed to diversify software exports
● FY13 tax mop up significantly lower than budget estimate
● 0.2% fiscal slippage possible in FY14
● Will need direct, indirect tax increases will get you revenue numbers: financial experts
● Credible austerity has to be the way to growth: experts
● Finance sector to be influenced by short-term, long term of
● Outlook on public finance: controlling subsidy, petroleum subsidy, recent reforms in diesel prices, medium term consolidation plan seems secure
● Need to curb gold and oil imports to curb current account deficit: Economic Survey
● Need to stay on path of indicated fiscal deficit
● Raghuram Rajan: slowdown in economy, euro crisis, uncertainty in fiscal policy in US and weak monsoon
● Raghuram Rajan: difficult times but India has navigated such time before and with good policies we can go ahead
● Unless india undertakes reforms, will growth far below potential
● Monetary policy has limited influence on food prices
● Mixed signals that ind growth has bottomed out
● Main focus shud be on import of curbs of oil and gold
● FII flows need to be tageted
● Need to improve acccess to credit at lower rates
● IIP growth may remain sluggish
● Widening trade, current account gap matters of concern
● Room to increase exports limited in short term
● Need to curb gold imports to curb current account deficit
● Need to stay on path of indicated fiscal deficit
● FY13 services growth seen at 6.6%
● WPI may decline to 6.2-6.7% in FY14, fall in inflation to increase monetary easing
● Room to increase exports limited in short term limited
● Growth downturn more or less over, economy looking up
● Need to curb gold imports to cut CAD
● Diesel price hike to put pressure on inflation
● Widening trade, current ac defiit matter of concern
● FY13 tax mop up significantly lower than last year
● Food inflation mainly driven by cereal prices
● Medium-term fiscal consolidation plan credible
● Industrial growth still vunerable to local, global factors
● Apr-Dec data shows 5.3% fiscal deficit achievable
● Need to stay on path of indicated fiscal consolidation
● Overall global economic environment remains fragile
● Govt committed to fiscal consolidation
● Concerns food security bill may push up subsidy
● Lower ind growth due to sluggish investments
● Economy to grow at 6.1-6.7% in FY13
● WPI at 6.2% to 6.6% in march
● Controlling supsidy remains crutial concern
● Need to up diesel lpg prices in line with global rates
● Tight RBI policy led to sharper than expected slowdown
● Mixed signals that ind growth has bottomed out
● Main focus shud be on import of curbs of oil and gold
● FII flows need to be tageted
● Need to improve acccess to credit at lower rates
● IIP growth may remain sluggish
● Indian economy to grow at 6.1-6.7%
● WPI inflation in March may go down to 6.2-6.6%
● Lower inflation to create more room for rate cuts
● Growth downturn more or less over; economy looking up