Economic Survey 2012-13 tabled in Parliament

The Union Finance Minister P. Chidambaram presented the Economic Survey 2012-13 in Lok Sabha on Wednesday. According to the survey, the Indian economy would grow at 6.1 – 6.7% in the next fiscal year 2013-14, and the inflation could remain at 6.2-6.6%. In January 2013 the headline inflation was at 6.67 per cent.

The survey says "the slowdown is a wake-up call for increasing the pace of actions and reforms." There could be more economic reforms from the government to boost the economy during the slowdown. The survey has also suggested lower the fiscal deficit and curb on imports to strengthen the economy.

The fiscal deficit would remain at 5.3 per cent as the government projected for the fiscal year 2012-13 and would aim to reduce it to 4.8 pct of GDP in 2013-14. There is target to bring down the fiscal deficit to 3 per cent by 2016-17.

The industrial output would be 3 per cent for the fiscal year 2012-13.

There is need to have lots of fiscal consolidation since the economy has been reeling under the global downturn.

Considering the fiscal deficit, the survey suggested for room for accommodative monetary policy with expected fiscal consolidation.

It also suggested to cut down the subsidies to ease the burden on the economy, which could also help to check the widening fiscal deficit.

The finance minister will table the Union Budget for 2013-14 in the Parliament on Thursday in Parliament.