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Synopsis of Economic Survey 2013-14

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Ok, let’s come to the Economic Survey 2013-14 which is extremely useful for upcoming exams like RBI Grade B, IBPS PO etc. You can get the complete Economic Survey here :

Economic Survey 2013-14

It consists of 14 chapters. Let’s have a look on the whole matter briefly:

1. Prepared by: The draft of the Economic Survey is prepared by Dept of Economic Affairs having the inputs from CSO(Central Statistical Organization) which is subsequently under Ministry of Statistics and project Implementation). Ministry of Statistics and project Implementation also prepared union Budget as well.

2. The key highlights are:

  • India’s economy expected to grow between 6.1 percent to 6.7 percent in 2013-14. GDP Growth rate was just 5.0 percent in 2012-13.
  • Slowdown in the rate of growth of services to 6.6 percent in 2012-13 contributed to a slow in overall growth. Growth in Manufacturing and Agriculture also declined.
  • FDI in retail may pave the way for investment in new technology and marketing of agricultural produce in India.
  • Non-performing assets (NPA) of the banking sector increased from 2.36 percent of the total credit advanced in March 2011 to 3.57 percent of total credit advanced in September 2012.
  • The survey calls for a widening of the tax base, and prioritization of expenditure as key ingredients of a credible medium term fiscal consolidation plan. Some measures taken in Union Budget 2013-14 include levy of Service Tax on all air-conditioned eating places, 10% surcharge on income of individuals earning more than 1 crore rupees in a financial year.
  • Expenditure on social services also increased considerably in the 12th Plan, with the education sector accounting for the largest share followed by health.
  •  India is on track to meet its fiscal deficit target of 5.3% of GDP this fiscal year, and to narrow it down to 4.8% of GDP next year.
  • The Economic Survey 2012-13 recommended curbing imports, mainly of gold, in a bid to reduce India’s current account deficit, which stood at 4.2% of GDP last year and is projected to be at similar levels this year.
  • The study said a priority should be to reduce waste in social spending through projects like direct-cash transfers to the poor. India’s spending on social welfare increased from 5.9% of GDP in the year that ended March 31, 2008 to an estimated 7.1% of GDP in the current year.

3. Some key points to remember:

  • GDP Growth Rate of India : 2013-4.7% and in 2012-4.5% [was >9% in 2005,’06,’07] and [<5% in ’86,’87 and 2012,’13]
  • Contribution in GDP shares:

                                    Service Sector                            : 60%

                                   Industry                                      : 26%

                                   Agriculture and allied sector :14%

  • But shares in Employment:

                                   Agriculture> Services> Industry

  • IMF World GDP:

                                  2013 – 3%

                                  2014 – 3.6%

Upcoming Article: Synopsis of Union Budget 2013-14