Economic Survey : India’s economy to grow at 6.1 – 6.7%.

Economic Survey

Indian economy is likely to grow between 6.1 per cent and 6.7 per cent in 2013-14 as the downturn is more or less over and the economy is looking up.

Following the slowdown induced by the global financial crisis in 2008-09, the Indian economy responded strongly to fiscal and monetary stimulus and achieved a growth rate of 8.6 per cent and 9.3 per cent respectively in 2009-10 and 2010-11, but because of a combination of both external and domestic factors, the economy decelerated growing at 6.2 per cent and an estimated 5 per cent in 2011-12 and 2012-13 respectively.

The Economic Survey 2012-13, presented by the Finance Minister P Chidambaram in the Lok Sabha predicts that the global economy is also likely to recover in 2013 and various government measures will help in improving the Indian economy’s outlook for 2013-14.

While India’s recent slowdown is partly rooted in external causes, domestic causes are also important.

The slowdown in the rate of growth of services in 2011-12 at 8.2 per cent, and particularly in 2012-13 to 6.6 percent from the double-digit growth of the previous six years, contributed significantly to slowdown in the overall growth of the economy, while some slowdown could also be attributed to the lower growth in agriculture and industrial activities.

But despite the slowdown, the services sector has shown more resilience to worsening external conditions than agriculture and industry.

For improved agricultural growth, the survey underlines the need for stable and consistent policies where markets play an appropriate role, private investment in infrastructure is stepped up,food price, food stock management and food distribution improves, and a predictable trade policy is adopted for agriculture.

FDI in retail allowed by the government can pave the way for investment in new technology and marketing of agricultural produce in India.

Fast agricultural growth remains vital for jobs, incomes and food security.

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