FM tables Economic Survey for 2012-13; pegged growth rate at 7.6%

Indian Finance Minister Pranab Mukherjee, just a day before presenting the Union Budget for financial year (FY) 2012-13 today tabled the economic survey for the same fiscal, projecting an estimated growth rate at 7.6% as against the current fiscal's growth rate of 6.9% (estimated).

The growth rate for FY 2013-14 is likely to increase further to 8.6%, survey stated.

"The growth rate of real GDP (is expected) to pick up to 7.6% (plus or minus 0.25%) in 2012-13 and faster beyond that," said the Economic Survey tabled by Finance Minister Pranab Mukherjee in Parliament on Thursday.

The survey indicates that the Indian economy is likely to get back on track from coming fiscal year due to chances to reduction in interest rate, rebound real estate sector and greater savings and capital formation.

"Moreover, with the easing of inflationary pressure in the months to come, there could be reduction in policy rates by the RBI, which would encourage investment that could have a positive impact on growth", it added.

Due to rising inflation and global meltdown, Indian domestic economy too suffered in last two years and slipped from 9% growth rate.

The government would take stiffer action in checking the volatility in Rupee which witnessed highly volatile in the current fiscal.

"The rupee has experienced high volatility in the last few years. Such volatility impairs investor confidence," Survey said by adding that more aggressive stance is therefore needed to check rupee volatility.

In last six months of 2011 Rupee had reached a peak of Rs 43.94 against a US dollar on July 27, 2011, and hit a low of Rs 54.23 on December 15, 2011.

Regarding export sector, the Economic Survey states that during the period April 2011 - Jan 2012, India's cumulative exports grew at a rate of 23.5% reaching USD 242.8 billion.

The growth in exports was much higher in the first half as against the second half of 2011. In the first half, the export growth was at 40.6% but dipped sharply in October and November due to Euro zone crisis. But it recovered back again in December 2011 and January 2012.

During April- Dec 2011, the growth in export sectors were: 55% in petroleum and oil products, 38.5% in gems and jewellery, 21.6% in engineering, 13% in cotton fabrics, 12% in electronics, 23.7% in readymade garments and 21.5% in drugs.