Highlights of Economic Survey 2008-09

New Delhi, Feb28 : Following are some of the key highlights of the Economic Survey 2008-09 tabled by Finance Minister P Chidambaram in Parliament on feb 28.

- Economy moves decisively to higher growth phase

- Economic growth in 2007-08 projected at 8.7 per cent

- Overall inflation projected to decline from 5.6 per cent in 2006-07 to 4.1 pc 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 broad based with 'transport and communication' being
the fastest during the Xth Five Year Plan

- 13.9 pc growth in financial services in 2006-07

- Annual average growth of money on an accelerating trend since 2003-04 reaching 19.5 pc in 2006-07

Considerable uncertainty in quantifying the downside risk arising from the housing market and sub-prime mortgage market crisis in the US 150 per cent increase in net foreign direct investment inflows in 2006-07 to US dollar 23 billion. Trend continues in the current financial year with gross Foreign Direct Investment (FDI) inflows reaching US dollar 11.2 billion in first six months

Trade to Gross Domestic Product (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 and 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.

ANI