Economic Survey 2014-15 highlights
Following are the highlights of Economic Survey 2014-15 presented by Finance Minister Arun Jaitley in Parliament
* GDP growth seen at 8.1–8.5 per cent in 2015-16
* Double digit growth trajectory; 8–10 per cent GDP in coming years
* Inflation shows declining trend during April-December
* Current Account Deficit (CAD) to decline to about 1 per cent in 2015-16
* To adhere to fiscal deficit target of 4.1 per cent of GDP; to aim for 3 per cent
* Committed to fiscal consolidation; to enhance revenue generation
* More reforms on anvil; Goods and Services Tax, expanding direct benefit transfers to be game-changers
* Foodgrains production for 2014-15 estimated at 257.07 million tonnes; will exceed last 5-year average by 8.5 million tonnes
* NITI Aayog, 14th Finance Commission to enhance fiscal federalism
* External Sector returning to strength, resilience
* Need balance between ‘Make in India’ and ‘Skilling India’
* Services sector negotiations at WTO crucial for India in removing many market access barriers
* Revitalise PPP model to revive investment
* Manufacturing and services equally important for growth
* Consumer inflation in 2015-16 to be between 5-5.5%
* Lower inflation opens up space for more monetary easing
* There is scope for big bang reforms
*Labour, capital, land, market reform and skills to be engines of growth
*JAM Trinity — Jan Dhan Yojana, Aadhaar, Mobile — to help transfer of funds to poor without leakage
*Shield domestic industry to promote ‘Make In India’
*Borrowings to fund investment, not for meeting expenses
*Food subsidy bill in April-Jan up 20% to Rs 1.08 lakh cr
*Reform Railway’s structure, commercial practices, overhaul of technology
*Public investment key growth engine in short-run for Railways, but not a substitute for private investment
*More disinvestments on the anvil in current fiscal
*Under-recoveries on petroleum products to come down to Rs 74,664 crore in 2014-15, from Rs 1.39 lakh crore in FY14
*4Ds — Deregulation, Differentiation, Diversification, Disinter (better bankruptcy laws) — to push financial sector growth
*Implementation of GST to boost GDP, exports
*Suggests medium to long term fiscal policy to target deficit, expenditure
*Global commodity prices to remain weak in 2015
*Ecommerce sector to witness 50% growth in 5 years
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