Economic Survey Highlights 2005-06

• Economy projected to grow at 8.1% in 2005-06.

• Modest inflation in spite of spiraling global crude prices.

• Rapid growth in exports and imports.

• Faster development of physical infrastructure.

• Progress in fiscal consolidation.

• Industry and services propel overall growth of the economy.

• Economy projected to grow at 8.1% in 2005-06.

• Modest inflation in spite of spiraling global crude prices.

• Rapid growth in exports and imports.

• Faster development of physical infrastructure.

• Progress in fiscal consolidation.

• Industry and services propel overall growth of the economy.

• Industrial resurgence driven by manufacturing and construction sectors.

• Broad-based Services sector growth.

• Total foodgrains production projected to increase by 2.3% from 204.6 MT in 2004-05 to 209.3 MT in 2005-06.

• Continued reduction in the incidence of poverty.

• Pick up in investment and acceleration in growth strengthened in 2005-06.

• Virtuous cycle of growth and savings likely to continue for some years to come.

• Policy framework to harness the dormant talent pool of Indian work-force and entrepreneurs to position the economy on a sustained high-growth trajectory suggested.

• Speedy provision of quality infrastructure through appropriate policy stimulus highlighted.

• A reversal of the slowdown in the mining sector, particularly coal stressed.

• Reform of the tax system favoured.

• Survey calls for improving the quality of expenditure, better productivity in expenditure and greater growth dividend through deepening the reform process that could harness higher savings and investment.