- Economic growth decelerates to 6.7 per cent in 2008-09 compared to 9 per cent in 2007-08 and 9.7 per cent in 2006-07. Economy likely to grow by up to 8.75 per cent in 2010-11
- Full recovery; return to 9 per cent growth in 2011-12
- Gross fiscal deficit pegged at 6.5 pc of GDP in 2009-10
- Per capita growth at 4.6 per cent.
- Increase planned expenditure
- Investment remains relatively floating, ratio of fixed investment to GDP increased to 32.2 per cent in 2008-09 compared to 31.6 per cent in 2007-08.
- Revisiting the agenda of pending economic reforms imperative to renew the growth momentum.
- Broad recovery gives scope for gradual stimulus roll back
- High double-digit food inflation in 2009-10 major concern
- Signs of food inflation spreading to other sectors
- Agriculture sector facing challenges on various fronts.
- Farm & allied sector production falls 0.2% in 2009-10.
- Need serious policy initiatives for 4% agriculture growth
- Govt initiates steps to boost private investment in agriculture
- Wants credit available at reasonable rates on time for private sector to invest in agriculture
- Moots direct food subsidy via food coupons to households
- Favours making available food in open market
- Favours monthly ration coupons usable anywhere for poor
- Exports in April-December 2009 down 20.3 per cent
- Imports in April-December 2009 down 23.6 per cent
- Trade gap narrowed to USD 76.24 bn in April-December.
- 32.5% savings & 34.9% investment (of GDP in 2008-09) put India in league of world's fastest growing nations.
- Slowdown in infrastructure that began in 2007, arrested
- Sector specific measures for textile, housing, infrastructure through stimulus packages provides support to the real economy.
- Domestic oil production to rise 11 per cent in 2009-10
- Kerosene subsidy only to non-electrified, non-LPG homes
- 6-8 LPG cylinders funded per year
- Gas output up 52.8 per cent to 50.2 billion cubic meters with RIL starting production
- India world's 2nd largest wireless network with 525.1 million mobile users
- Virtually every second Indian has access to phone
- Separate telecom licenses from spectrum allocation
- Auction for 3G spectrum to provide existing and foreign players to bring in new technology and innovations.
- High liquidity could mean inflation spiral
- Capital gains for the 3G spectrum has to be taxed under the IT Act
- FDI in Insurance and Retail sector Need to revitalise disinvestment program
- Government should disinvest 10 % in the unlisted PSUs
- Impetrative to return to FRBM target on fiscal deficit 10-11%
- Advise for managing money better
- 100% foreign equity to be allowed in insurance firms of rural areas
- Phasing out of CIT, SIT, SBT
- Trade Sector of 2009 has a very unpleasant outlook with an negative growth in the world output of -1.3%
- Raising the FDI in insurance to 49%
- 49% FDI in defence production
- Price control on drugs to be lifted
- Pension bill reforms to be passed
- India 10th largest gold holding nation at 557.7 tonnes
- New Income Tax code to be introduced
- Phasing out the Tax Surcharges
- Reduction in indirect taxes
- Reviewing the customs duty exemptions
- Government must decontrol petrol and diesel prices
- Private investment to be permitted in nuclear power
- Thrust on irrigation to be increased
- Marketing, storage and warehousing for agricultural sector to be developed
- Blanket fiscal stimulus not required and stimulus has to be sector specific.
- Attempts by RBI to maintain ample liquidity by RBI may be inflationary
- Auction loss making PSUs
- Sell 5-10% of non-profitable Navratnas
- Eliminate inverted duty structure
- Deceleration in growth spread across all sectors except mining and quarrying; agriculture growth falls from 4.9 per cent in 2007-08 to 1.6 per cent 2008-09.
- Manufacturing grows at 2.4 per cent, slowdown attributed to fall in exports and a decline in domestic demand.
- Global financial meltdown and economic recession in developed economics major contributors in India’s economic slowdown.
- Credit growth declines in the later part of 2008-09 reflecting slowdown of the economy in general and the industrial sector in particular.
- Merchandise export grows at a modest 3.6 per cent in US Dollar terms while overall import growth pegged at 14.4%.
- A large domestic market, resilient banking system and a policy of gradual liberalisation of capital account to help early mitigation of the adverse effect of global financial crisis and recession.
- Sharp dip in the growth of private consumption a major concern at this stage.
- Medium to long-term capital flows likely to be lower as long as the de-leveraging process continues in the US economy.
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