New Delhi: The Economic Survey of 2013-14 has pegged GDP growth for the year 2014-15 in range of 5.4-5.9%.
The survey claimed, “There are downside risks to the economy arising from a poor monsoon, the external environment and the poor investment climate. GDP growth slowed to below 5 per cent for two consecutive years, i.e. 2012-13 and 2013-14. The combination of domestic structural constraints, inflationary pressures, particularly food inflation and uncertainty in the global economy, has affected growth and posed challenges for macroeconomic stability.”
Agriculture and allied sector grew at 4.7%, while industry grew at 0.4% in 2013-14.
It also said, “The key reasons for poor performance have been contraction in mining activities and deceleration in manufacturing output. Manufacturing and mining sector GDP declined by 0.7% and 1.4% respectively in 2013-14. The underlying cause of the poor performance of these two sectors has been considerable deceleration in investment, particularly by the private corporate sector during 2011-12 and 2012-13.”
Report said, “India’s exports at $312.6 billion grew by a positive 4.1% compared to the previous year’s negative growth of 1.8%. Import growth decelerated from 0.3% in 2012-13 to a negative 8.3% in 2013-14, owing to fall in non-oil imports by 12.8% primarily due to restrictions on gold imports.”
It said, “An important factor in the increase in the Centre’s fiscal deficit after 2008-09 has been the sharp increase in subsidies from 1.42% of GDP in 2007-08 to 2.56% of GDP in 2012-13. For 2013-14 the subsidy bill is 2.26% of GDP.”
Bureau Report
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