The Indian Economic Survey of the year 2007-2008 was presented in the parliament today. The survey underlines that the congenial environment for investment still continues in India and the future of investments in the country is encouraging.
Find below major highlights on India's Economic survey for 2007-08:
The survey suggested that the eleventh plan can attain average 9% GDP growth
The inflation rate for the fiscal year 2007-2008 is expected to be just above 4% compared to 5.6% last fiscal year.
Some of the Indian states are expected to generate surplus revenue from this financial year onwards.
The GDP growth projected at 8.7% is very much within reach in the current financial year.
Further, the economic survey suggests that the target of 3% fiscal deficit for the financial year 2007-2008 will be met.
The employment sector took a beating and unemployment in India rose by 1% against the last financial year.
To accelerate the economic growth of India the report suggested few policies and proposals which are expected to have long term impacts on the Indian economy.
Lowering of fiscal deficit below 3% should be targeted in the coming years. A zero revenue deficit has been targeted for the next financial year.
The report suggested increased growth of the Indian farm sector is essential and important.
A proposal to allow 5% to 10% of disinvestment in the Indian non-navaratna companies was suggested and a proposal for private company involvement in the coal mining was also tabled.
The report also suggested that licensing procedures be eased in the coming years.
FDI in the Indian retail sector has been suggested to help this sector grow to its full potential.
Moreover, to boost the rural health insurance sector of India 51% FDI has been suggested. 26% FDI in the Indian insurance Industry has also been proposed in the economic survey report.