Highlights of Economic Survey 2008-09

September 9th, 2009 Fed survey: most of US in economic healing modeWASHINGTON — A new government survey finds the vast majority of the country reporting economic activity is stabilizing or improving, as the worst recession since the 1930s appears to be over. The Federal Reserve's snapshot of economic conditions backs predictions by Fed Chairman Ben Bernanke and most other analysts that the economy has started to grow again in the current quarter.

July 2nd, 2009 NEW DELHI - The flow of credit to the farm sector increased to Rs.264,455 crore ($55 billion) last fiscal from Rs.254,657 crore in 2007-08, India's Economic Survey for 2008-09 released Thursday said. But agriculture growth fell sharply to 1.6 percent from 4.9 percent the year before.

July 2nd, 2009 NEW DELHI - Owing to a shortage of long-term finance, it is difficult to achieve the investment target set for the infrastructure sector for the 11th Five-Year Plan period, India's Economic Survey for 2008-09 released here Thursday said. The government has estimated an investment requirement of $500 billion in the infrastructure sector for the plan period that ends in 2012 for achieving inclusive growth.

July 2nd, 2009 NEW DELHI - After the high growth cycle that followed the economic reforms of 1990s, India should now bring in sweeping changes in its investment climate for the next stage of growth, the Economic Survey for 2008-09 released here Thursday said. "The reforms of the 1990s created a competitive environment in which Indian entrepreneurship could flourish.

July 2nd, 2009 NEW DELHI - There should be a single regulatory body for the transport sector including highways, railways, ports and airports to ensure better cohesion, the Economic Survey for 2008-09 tabled Thursday has suggested. According to the survey, there should be at least one member from each of these sub-sectors and the authority could have specialized groups of professionals in each sector.

July 2nd, 2009 NEW DELHI - India's Economic Survey for 2008-09, tabled in parliament Thursday, called for revising specific custom duties on the textiles sector to ensure that they match ad valorem tax rates. "Specific duties are intrinsically more opaque than ad valorem tariffs, tending to conceal high ad valorem equivalents.

July 2nd, 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.

July 2nd, 2009 CHENNAI - Life insurance penetration in India dipped in 2007, first time since the sector was opened up for private players a decade ago, said the country's Economic Survey for 2008-09 released here Thursday. "The life insurance penetration in India increased from 1.77 percent in 2000 to 4.1 percent in 2006, before declining to 4 percent in 2007," the survey tabled in parliament by Finance Minister Pranab Mukherjee said.

July 2nd, 2009 NEW DELHI - Though comprehensive job loss data is not available for the current financial year, the Economic Survey Thursday said the financial crisis hit the Indian job market in the last quarter of 2008 but improvement in the employment situation was in sight. Quoting a labour ministry survey, it said during October-December 2008, there was decrease in employment of about half a million workers".

July 2nd, 2009 NEW DELHI - Indicating that an industrial recovery is underway, India's Economic Survey for 2008-09 said Thursday that the industry has weathered the most severe part of the shock. The survey, tabled by Finance Minister Pranab Mukherjee in parliament on Thursday, the first day of the budget session, said the rise in offtake of bank credit and upturn in the power generation capacity were positive pointers towards an economic recovery.

July 2nd, 2009 NEW DELHI - India opened 276,903 new schools and appointed 966,000 teachers as part of its flagship Sarva Shiksha Abhiyan (SSA) programme, the Economic Survey for 2008-09 revealed Thursday. The survey, which was tabled in parliament, stated that achievements of SSA till December 2008 are opening of 276,903 new schools, construction of 225,383 school buildings, construction of 918,981 additional classrooms, 182,019 drinking water facilities, construction of 251,023 toilets, supply of free textbooks to 8.4 crore (84 million) children, appointment of 9.66 lakh (966,000) teachers and in-service training for 23.82 lakh (2.38 million) teachers.

July 2nd, 2009 NEW DELHI - India's Economic Survey for 2008-09 released here Thursday has called for allowing private players - both domestic and foreign - to invest in the country's nuclear power sector. The survey, tabled in parliament by Finance Minister Pranab Mukherjee, however, said the foreign direct investment (FDI) cap should be fixed at 49 percent.

June 12th, 2009 ISLAMABAD - Pakistan's economy grew by a mere two percent in fiscal 2008-09 ending June 30 against 4.1 percent in the previous year, says the pre-budget economic survey. The agriculture sector, however, performed well, partly offsetting the slippages in other sectors, Dawn reported Friday.

April 5th, 2009 NEW DELHI - The National Democratic Alliance (NDA) is likely to get 187 seats in the Lok Sabha - nine more than the United Progressive Alliance (UPA), a pre-poll survey by the India TV shows. 'The NDA has a minor edge over UPA, and the Bharatiya Janata Party (BJP) may win 144 seats - nine more than the Congress.

January 12th, 2009 NEW DELHI - Amid a worldwide economic downturn, Indians have emerged as the most optimistic lot as people who think that their country will climb out of recession in the next 12 months, a survey said. 'Despite the global economic recession, about 51 percent Indians, the highest in the world, seem to be quite confident of the economy picking up in the near future,' said Sonia Pall, Executive Director in Consumer Research at The Nielsen Company, which conducted the survey.