indian economic survey 2009 - 10

8/8/2019 Indian Economic Survey 2009 - 10

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Presentation on

Economic Survey 2009-10

AKSHATA KNAYAK

PAK 9076

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Economic SurveyThe Finance Ministry presents

the Economic Survey in theparliament every year, justbefore the Union Budget. It is

the ministry's view on theannual economic developmentof the country.

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http://en.wikipedia.org/wiki/Union_budget_of_Indiahttp://en.wikipedia.org/wiki/Union_budget_of_India


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Union Finance Minister Mr. PranabMukherjee has tabled the EconomicSurvey during Budget 2009 session on25 February 2010 in parliament.

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The Survey witnesses anearly revival in the

economic growth of India.The Survey has also put Rs

25000 cr as disinvestmenttarget.

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Highlights Of EconomicHighlights Of Economic

SurveySurvey

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Economic growth decelerates to 6.7% inEconomic growth decelerates to 6.7% in

2008-09 compared to 9 per cent in 2007-2008-09 compared to 9 per cent in 2007-

08 and 9.7% in 2006-07. Economy likely to08 and 9.7% in 2006-07. Economy likely to

grow by up to 8.75% in 2010-11grow by up to 8.75% in 2010-11

Economic growth2006 - 07 9.7

2007 - 08 9

2008 - 09 6.7

2009 - 10 8.757


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Full recovery; return to 9% growth inFull recovery; return to 9% growth in2011-122011-12

Gross fiscal deficit pegged at 6.5% oGross fiscal deficit pegged at 6.5% o

GDP in 2009-10GDP in 2009-10 Increase planned expenditureIncrease planned expenditure

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Investment remains relatively floating,Investment remains relatively floating,

ratio of fixed investment to GDPratio of fixed investment to GDP

increased to 32.2% in 2008-09 comparedincreased to 32.2% in 2008-09 compared

to 31.6% in 2007-08.to 31.6% in 2007-08.

Revisiting the agenda of pendingRevisiting the agenda of pending

economic reforms imperative to reneweconomic reforms imperative to renew

the growth momentum.the growth momentum. 9


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High double-digit food inflation in 2009-10 majorHigh double-digit food inflation in 2009-10 major

concernconcern

Signs of food inflation spreading to other sectorsSigns of food inflation spreading to other sectors

Agriculture sector facing challenges on various fronts.Agriculture sector facing challenges on various fronts. Farm & allied sector production falls 0.2% in 2009-10.Farm & allied sector production falls 0.2% in 2009-10.

Need serious policy initiatives for 4% agriculture growthNeed serious policy initiatives for 4% agriculture growth

Govt initiates steps to boost private investment inGovt initiates steps to boost private investment in

agricultureagriculture Wants credit available at reasonable rates on time forWants credit available at reasonable rates on time for

private sector to invest in agricultureprivate sector to invest in agriculture

Favours monthly ration coupons usable anywhere forFavours monthly ration coupons usable anywhere for

foodfood

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Summary ofSummary of

EconomicEconomicSurvey 2009-10Survey 2009-10

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The Economic Survey says that the economy hasThe Economic Survey says that the economy has

bounced back from the global economic slowdownbounced back from the global economic slowdown

and is on its way to the growth path of 9 per cent.and is on its way to the growth path of 9 per cent.

The Survey says that the economy has respondedThe Survey says that the economy has responded

well to the policy measures undertaken in the wakewell to the policy measures undertaken in the wakeof global financial crisis.of global financial crisis.

The Survey says that the recovery is well foundedThe Survey says that the recovery is well founded

with pick up in merchandise exports, capital flowswith pick up in merchandise exports, capital flowsand non food gross bank creditand non food gross bank credit


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The CSO estimates forecast 7.2 %The CSO estimates forecast 7.2 %

growth in GDPgrowth in GDP

The recovery is particularly impressiveThe recovery is particularly impressive

despite a decline of 0.2% in agriculturedespite a decline of 0.2% in agriculture

The Survey says, the broad basedThe Survey says, the broad based

nature of the recovery gives hope thatnature of the recovery gives hope that

the economy will go back to the growththe economy will go back to the growth

path of 9 per cent.path of 9 per cent.

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Contd.,


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The Survey expresses concern over theThe Survey expresses concern over the

emergence of high double-digit food inflationemergence of high double-digit food inflationespecially in the second half.especially in the second half.

This has created some concerns for higher thanThis has created some concerns for higher than

anticipated generalized inflation over the nextanticipated generalized inflation over the nextfew monthsfew months

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The Survey says that the country received 23The Survey says that the country received 23

per cent less rainfall during the south-westper cent less rainfall during the south-westmonsoon 2009 but some of the shortfall wasmonsoon 2009 but some of the shortfall was

made up during the post monsoon seasonmade up during the post monsoon season

when the country received 8 per cent excesswhen the country received 8 per cent excess

rainfall.rainfall.

Kharif 2009-10 season showed a decline ofKharif 2009-10 season showed a decline of

nearly 6.5 per cent in acreage with the entirenearly 6.5 per cent in acreage with the entire

decline confined to rice crop.decline confined to rice crop.

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The growth of broad money (M3) has moderated fromThe growth of broad money (M3) has moderated from

around 21 per cent in the beginning of fiscal year to 16.5around 21 per cent in the beginning of fiscal year to 16.5

per cent by mid January 2010 and it has remained belowper cent by mid January 2010 and it has remained belowthe indicated growth projection.the indicated growth projection.

The Survey says that since the outbreak of the globalThe Survey says that since the outbreak of the global

financial crisis in 2008, the RBI has followed anfinancial crisis in 2008, the RBI has followed an

accommodative monetary policy supporting earlyaccommodative monetary policy supporting early

recovery of the growth momentumrecovery of the growth momentum

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This has also facilitated theThis has also facilitated the

unprecedented borrowing requirement ofunprecedented borrowing requirement of

the Government to fund its fiscal deficit.the Government to fund its fiscal deficit.

The Survey says that the recommendationsThe Survey says that the recommendations

of the Thirteen Finance Commission have toof the Thirteen Finance Commission have to

be taken on board in shaping the fiscalbe taken on board in shaping the fiscal

policy for 2010-11 and in the medium term.policy for 2010-11 and in the medium term.

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The Survey notes with satisfaction that severalThe Survey notes with satisfaction that several

factors that have emerged from the performancefactors that have emerged from the performanceof the economy in the last 12 months augur wellof the economy in the last 12 months augur well

for the Indian economy.for the Indian economy.

Survey is hopeful that the economy will go backSurvey is hopeful that the economy will go backto 9 per cent growth rate in the medium term.to 9 per cent growth rate in the medium term.

With full recovery the economy can breach theWith full recovery the economy can breach the

9% mark in 2011-12.9% mark in 2011-12.

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REFERENCEsREFERENCEs

budget.nic.inbudget.nic.in

zeenews.comzeenews.com

india-server.comindia-server.com bete.thehindu.com/business/econombete.thehindu.com/business/econom

yy

www.pwc.com/in/enwww.pwc.com/in/en

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