Jul

2

Indian Government shares Economic Survey of India 2008-2009

Filed Under Banking, India Business, Indian Government, Infrastructure, Insurance, Regulations, Training & Education | Leave a Comment

The Indian Government today presented the Economic Survey of India 2008-2009 in the Indian parliament. The FY 2009-2010 budget session commenced today with Finance Minister Pranab Mukherjee tabling the Economic Survey of India for the year 2008-09. The railway budget 2009 will be presented tomorrow by the railway minister Mamta Banerjee.

Here are some highlights:

* In the 11th “Five-Year Plan” period from 2007-12, the Govt is expecting to create 58 million jobs in the country. This is great news.

* The next phase of economic stimulus will include both govt expenditure and tax cuts, while keeping the macro economic fundamentals like interest rates, exchange rates and growth rates in mind.

* For the current fiscal 2009-10, the economic survey has projected a fiscal deficit of 5.5% of the GDP. The target for the Govt is to bring down the fiscal deficit to about 3% of the GDP.

* Recommends raising the FDI cap in Insurance sector from 26% to 49%

* Recommends raising the FDI limits in defence sector from 26% to 49%

* Suggests removing the cess, fringe benefit tax, different surcharges on taxes and bring in many different reforms in petrol pricing and the financial sector.

*  India could grow at an average rate of 7% in FY 2009-10, and achieve growth rates of 8-9% in medium term if all reforms being planned are implemented.

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