The Union Finance Minister, Mr. Pranab Mukherjee Presented the economic survey of 2009-10 on 25th February 2010 in the Parliament which predicted that India is on the path of becoming the fastest growing economy of the world within the next four years. The highlights of the economic survey are listed below
Main Highlights of Economic Survey
- During the months of April-December trade gap narrowed down to US$ 76.24%.
- With 557.7 tonnes of Gold India now ranks at the 10th largest gold holding nation.
- Moots direct food subsidy via food coupons to households
- Making available food in open market is also favored.
- 11% rise in domestic production of oil is also likely in 2009-10.
- Production of Farm & allied sector down by 0.2% in 2009-10.
- With RIL starting production gas output have went up to 52.8% to 50.2 billion cubic meters.
- The gross fiscal deficit at 6.5% of GDP is recorded in the year 2009-10.
- A rise in the Per capita income to 5.3 per cent in 2009-10 from 3.7 per cent in 2008-09 is also recorded.
- Foreign exchange reserves rose to US$ 31.5 billion from US$ 252.0 billion in end March 2009 to US$ 283.5 billion in end December 2009 during fiscal 2009-10.
- While shaping the fiscal policy for 2010-11 recommendations of the Thirteen Finance Commission needs to be addressed.
- A new Fiscal Responsibility and Budgetary Management (FRBM) act is being proposed by the commission.
Economic Survey on Growth
The economic survey has been very positive on growth which says that India's GDP is likely to have a growth rate of around 8.5% to 8.75% in 2010-11. A growth of 9% in 2011-12 is also expected and with such a recovery, scope for a gradual pullback of stimulus is created. India is now on the path of becoming the fastest growing nation in the world with 32.5% savings and 34.9% investment of GDP in the year 2008-09.
Economic Survey on Inflation
The food inflation of 2009-10 is a major concern as such inflation is having an effect on the other sector as well. The survey also indicated that food prices are likely to have further rise over the months to come.
Economic Survey on Agriculture
Challenges of every kind are being faced by the agricultural sector for which serious policy methods are to be initiated to achieve the growth of 4% in agriculture. Government has adopted methods like availability of wants credit at reasonable rates for more private investments in the field of agriculture.
Economic Survey on Telecommunication Sector
India now stands at 2nd largest position in terms of wireless network with 525.1 million mobile users and every second Indian having an access to phone. To bring in new technology and innovations for the existing and foreign players an auction for 3G spectrum is to be held.
Economic Survey on Export and Import Sector
Export and import rate in India during the months of April-December, 2009 is lowered by 20.3% and 23.6% respectively.