Highlights of Economic Survey 2009-10

• Economy posted a remarkable recovery expected to grow at 7.2% in 2009-10 against 6.7% in 2008-09. Survey hopes the Indian GDP can be expected to grow around 8.5+/
• 0.25%, with a full recovery, breaching the 9% mark in 2011-12.
• Manufacturing growth more than doubled to 8.9% in 2009-10 from 3.2% in 2008-09.
• Survey recognizes food inflation as major concern.
• Per capita income increased to 5.3% in 2009-10 from 3.7% in 2008-09.
• Gross Fiscal deficit stands at 6.5% of GDP.
• Liquidity condition remained comfortable during 2009-10.
• Bank credit grows by 13.9% on year-on-year basis. Non-food bank credit recorded an increase of 8.7% on financial year basis till January 15, 2010 as per the latest available data.
• Agricultural credit disbursal exceeds target. At sectoral level, there has been a rebound in the growth rate of investment in the agricultural sector, which grew at 16.5% and 26.0% in 2007-08 and 2008-09 respectively against 1.4% recorded in 2006-07.
• Investment Deposit Ratio increases to 32.52%.
• Balance of Payment situation improves due to surge in capital flows and rise in foreign exchange reserves, which have been accompanied by rupee appreciation.
• Net capital flows to India at US$ 29.6 billion in April-September 2009 remained higher as compared to US$ 12.0 billion in April-September 2008.
• During fiscal 2009-10, foreign exchange reserves increased by US$ 31.5 billion from US$ 252.0 billion in end March 2009 to US$ 283.5 billion in end December 2009.
• Recommendations of the Thirteen Finance Commission needs to be taken on board in shaping the fiscal policy for 2010-11 and in the medium term.
• Momentum in telecommunication sector continues with monthly additions exceeding 17.6 million connections.
• Share of central government expenditure on social services including rural development, in total expenditure, plan and non-plan gone up to 19.46% in 2009-10 which was only 10.46% in 2003-04.

Source : Equity Bulls

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