Ummid Assistant

Samsung sets up fund for poor kids' education

US varsity offers doctorate for education professionals

Welcome Guest! You are here: Home » Business & Economy

'India will grow at 7.6 percent, to play active global role'

Thursday March 15, 2012 06:32:01 PM, IANS

New Delhi: India's economic growth will rebound to 7.6 percent in 2012-13 on the back of softening inflation and better industrial production, enabling it to play an active role on the world stage and influencing international trade, capital flows and governance of global financial institutions, the Economic Survey 2011-12 said Thursday.

The survey, tabled by Finance Minister Pranab Mukherjee in parliament, projected 8.6 percent expansion in the country's gross domestic product (GDP) in 2013-14.

"The economic growth is expected to remain at 7.6 percent, plus or minus 0.25 percent, in 2012-13 and it will improve further to 8.6 percent in 2013-14," said Chief Economic Advisor Kaushik Basu.

The economy is estimated to expand 6.9 percent in the current financial year ending March 31.

The survey, presented a day before the annual budget, said inflation will remain in the range of 6.5-7 percent by the end of March. It projected a further moderation in inflationary pressure in 2012-13.

"A favourable base effect in prices and continued global slowdown are expected to moderate inflation to around 6.5 to 7 percent by March and further moderate in the months ahead, barring unexpected shocks, such as oil prices in international markets.

It may further moderate during 2012-13 due to tightening of monetary policy and other measures put in place by the government," the survey added.

Inflation in the current fiscal has largely been driven by high food prices. It had slipped to a low of 6.6 percent in January, but rebounded to almost 7 percent in February.

The survey, however, said fiscal consolidation was the only way to keep inflation down.

"But despite the low growth figure of 6.9 percent, India remains one of the fastest growing economies of the world as all major countries including the fast growing emerging economies are seeing a significant slowdown."

According to the survey, industrial production is likely to improve in the next financial year.

The survey also touched on politically contentious issues like allowing foreign direct investment in multi-brand retail and reducing subsidies especially on diesel.

"Allowing FDI in multi-brand retail is one of the major issues in this sector. This could begin in a phased manner in the metros, with the cap at a lower level coupled with incentivising the existing 'mom and pop' stores (kirana shops) to modernise and compete effectively with the retail shops, foreign or domestic," it said.

The decision to allow foreign direct investment (FDI) in multi-brand retail was rolled back after a huge furore in the parliament with opposition and even key constituents of the United Progressive Alliance government vehemently opposing it.

Talking to reporters outside parliament shortly after tabling the annual document, the finance minister said the survey would help create healthy discussions, but the government would not be able to implement it in totality.

"The government may adopt few suggestions but one should not expect that the Budget will reflect the survey in its entirety," Mukherjee said.

The survey suggested that diesel price should be revised upward and taxes on diesel-run vehicles should be increased to control its misuse.

"Diesel price adjustments have lagged international prices in recent years, and budgetary subsidies have ballooned. At the same time such low prices and subsidies are providing incentives for misuse," the document said.

Recognising that self-interest drives a market economy, the survey said India will stagnate and remain in the grips of chaotic poverty in the absence of morality and persistence of graft.

"We now know that a market economy cannot function if people are totally self-serving," said the survey.

"While self-interest is a major driver of economic growth, it is important to recognize that honesty, integrity, and trustworthiness constitute the cement that binds society."

As the country enters the 12th Five Year Plan April 1, the survey said, the challenges before it are to lay down a sound foundation with a major push for building infrastructure, building human capital, and eradicating poverty and malnutrition.



 

 


 

 

Home | Top of the Page

Comments

Note: By posting your comments here you agree to the terms and conditions of www.ummid.com

Comments powered by DISQUS

i

i

 

 

 

Top Stories

Amid bedlam, Govt. gets some relief, courtesy allies

Amid uproar in parliament, the Congress-led government got some respite Thursday afternoon after the warring Trinamool Congress declared there was no threat to the ruling coalition.  »

Congress reaches out to allies, but Mamata snubs again

Trinamool talks tough, threatens to oppose policies in parliament

 

  Most Read

Akhilesh becomes UP chief minister

Nine days after his Samajwadi Party won a thumping majority in Uttar Pradesh, Akhilesh Yadav was sworn in Thursday as the 33rd chief  »

Akhilesh Yadav: From football, movies to crown of UP politics

Angry Mamata tells PM to replace Trivedi by Mukul Roy

West Bengal Chief Minister Mamata Banerjee told Prime Minister Manmohan Singh Wednesday night to make her Trinamool colleague Mukul  »

Dinesh Trivedi: Banerjee's second choice as railway minister challenges his leader

 

  News Pick

After Imran, Akhilesh too drops out of India Today conclave

Uttar Pradesh's new Chief Minister Akhilesh Yadav Thursday dropped out of the India Today conclave 2012 because of  »

Rushdie Factor: Imran Khan stays away from India Today conclave

India non-committal on Sri Lanka 'war crimes'

With Tamil Nadu parties asking the government to back a US-sponsored resolution on "war crimes" in Sri Lanka, India Wednesday said it will study popular sentiments and stressed the need for  »

Indian American wins top $100,000 prize in US science talent search

Indian American teenager Nithin Reddy Tumma has won a whopping $100,000 prize in the prestigious Intel Science Talent competition for his   »

 

Picture of the Day

Union Minister for Railways Dinesh Trivedi interacting with the media persons after presentation of Railway Budget 2012-13, in New Delhi on March 14, 2012. Ministers of State for Railways Bharatsinh Solanki and K.H. Muniyappa and the Board Members are also seen.

 

 
 
 
 
 
 
 

RSS  |  Contact us

 

| Quick links

News

 

Subscribe to

Ummid Assistant

 

National

Science & Technology

RSS

Scholarships

About us

International

Health

Twitter

Government Schemes

Feedback

Regional

History

Facebook

Education

Register

Politics

Opinion

Newsletter

Contact us

Business

Career

Education

     

 

 

Ummid.com: Disclaimer | Terms of Use | Advertise with us | Link Exchange

Ummid.com is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

© 2010 Awaz Multimedia & Publications. All rights reserved.