New Delhi, Feb 28 (UNI) Economic Survey 2007-08, outlines sweeping reform measures across several critical sectors and projects an 8.7 per cent growth this fiscal while keeping inflation under control.
The following are the highlights; * Upward adjustment possible in 8.7 per cent GDP for the fiscal; * 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; * Buoyancy in Government Revenues; * Survey exudes optimism on investment; * 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 broad based with 'transport and communication' being the fastest during the tenth Five Year Plan; * 13.9 per cent growth in financial services in 2006-07; * 150 per cent increase in net foreign direct investment inflows in 2006-07 to 23 billion. The trend continues in the current financial year with gross FDI inflows reaching 11.2 billion dollars 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; * Agricultural growth 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 emphasised; * 100 per cent FDI in Greenfield Private Rural Agriculture Banks; * Phasing out control on Sugar, Fertilizer and Drugs; * Amend Coal Mines Nationalisation Act to allow regulated private entry into coal mine; * Sell 5-10 per cent equity in profit making non-navratnas; * List all unlisted public sector enterprises and sell 10 per cent equity to public; * Sell old Oilfields to private sector; * Allow FDI in retail; * Allow 100 per cent foreign equity in foreign branded, specialised retail chains; * Raise FDI caps in Insurance to 49 per cent; * Amend Factories Act- increase work week to 60 hours and daily limit to 12 hours; * Permit private corporate investment in Nuclear Power subject to regulations; * Railways -Free entry of private and PPP partnership rail freight company; * Public transport systems in metros and cities must be run by organised private companies; * Introduce a separate section on Bankruptcy in the Company Law or introduce a new Bankruptcy Law; UNI BJR/GS PBB GC1749