Highlights of Economic Survey 2008-09 (Second Lead)
By IANSThursday, July 2, 2009
NEW DELHI - Salient features of a wish list in the Economic Survey for 2008-09 released by Finance Minister Pranab Mukherjee in parliament Thursday:
- Cut fuel, food and fertiliser subsidy leakages
- Raise foreign investment cap in insurance to 49 percent
- Allow 100 percent foreign investment in health, weather insurance
- Raise foreign investment cap in defence production to 49 percent and in high tech defence to 100 percent
- Raise Rs.25,000 crore from divestment every year
- Sell 5-10 percent in profitable non-Navratnas
- List unlisted state-owned firms, divest at least 10 percent equity
- Auction loss-making state-owned firms
- Rationalise dividend distribution tax to avoid double taxation
- Review customs duty exemptions
- Remove fringe benefit tax
- Remove commodity and security transaction taxes
- Limit subsidy on cooking gas to six-eight cylinders per household
- Kerosene subsidy only for non-electrified, non-cylinder homes
- Introduce new income tax code
- Provide fertiliser subsidy directly to farmers
- Target zero fiscal deficit
- Eliminate inverted duty structure
- Convert specific textile taxes to ad valorem
- Lift price control on all drugs except essentials
- Roll back excess liquidity once growth picks up
- Decontrol sugar and insurance industries
- Auction spectrum and make it freely tradable
Taking stock of the country’s economic condition, the survey said India could grow by around 7.75 percent in 2009-10 if the US economy “bottoms out” by September.
Among other observations it made on the economy are:
- Economic growth decelerates to 6.7 percent in 2008-09
- Per capita growth at 4.6 percent
- Agricultural growth falls to 1.6 percent from 4.9 percent in 2007-08
- Manufacturing sector grows at 2.4 percent
- Ratio of fixed investment to GDP increases to 32.2 percent
- Fiscal deficit stands at 6.2 percent
- Merchandise export grows at 3.6 percent in dollar terms
- Overall import growth at 14.4 percent
- Social, agriculture and infrastructure sectors need boost
- Rural demand still strong.
