Union Finance Minister Arun Jaitely on 26 February 2016 presented Economic Survey of India 2015-16 in the Parliament.
The Survey reviews the developments in the Indian economy over the previous 12 months, summarises the performance on major development programmes and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term
• The contribution of agriculture and allied sectors to the GVA (at 2011-12 prices) has been declining.
• The growth rates in agriculture have been fluctuating at 1.5 per cent in 2012-13, 4.2 per cent in 2013-14, (-) 0.2 per cent in 2014-15 and a likely growth of 1.1 per cent in 2015-16.
• The uncertainties in growth in agriculture are explained by the fact that 60 per cent of agriculture in India is rainfall dependent and there have been two consecutive years of less than normal rainfall in 2014-15 and 2015-16.
• Food grains production during 2015-16, estimated at 253.16 million tonnes, is expected to be higher by 1.14 million tonnes over the production of 252.02 million tonnes during 2014-15.
The survey suggested following measures to increase productivity in agriculture sector:
• Need to scale up investments to expand water efficient irrigation to achieve ‘more crop per drop’ to improve productivity in agriculture.
• The low and skewed distribution of irrigated area needs to be corrected through appropriate policy measures.
• Effective use of other inputs like fertilizers, quality seeds and pesticides is also required, along with irrigation, to reach optimal agricultural potential of India.
• The success of dairy, an allied sector, has been the result of an integrated cooperative system of milk collection, transportation, processing and distribution.
• In order to minimize the seasonal impact on suppliers, the diversification of the produce through value added products, as happened in the dairy industry, should be adopted by allied sectors in agriculture.
• Reducing post-harvest losses through investments in storage facilities and drying facilities will also help ensure food security for the population.
Industrial, Corporate and Infrastructure Performance
• Overall growth: The industrial sector has continued to perform well in the wake of various reforms measures undertaken by the government in recent years.
• The growth is expected to strengthen further to 7.3 per cent for 2015-16 as per the AE released by the CSO.
• Within the industrial sector, manufacturing is expected to register a growth of 9.5 per cent.
• In the first nine months of 2015-16, the growth rate in terms of the IIP was 3.1 per cent as compared to 2.6 per cent in the corresponding period of 2014-15.
• The eight core infrastructure-supportive industries in IIP, which have a 38 percent, registered a cumulative growth of 1.9 per cent during April-December 2015-16 as compared to 5.7 per cent during April-December 2014-15.
• After the launch of the initiatives in September 2014, there was nearly 40 per cent increase in FDI inflows during October 2014 to June 2015 over the corresponding period of the previous year.
• Foreign Direct Investment: During April-November 2015-16, total FDI inflows were 34.8 billion US dollars as compared to 27.7 billion US dollars during April-November 2014-15, showing a 26 per cent increase.
• The FDI equity inflows also increased from 18.9 billion US dollars during April-November 2014- 15 to 24.8 billion US dollars during April-November 2015-16, showing a 31 per cent growth.
• Electricity: During 2014-15, electricity generation was 1048.4 billion units (BU) as against a target of 1023 BU, registering Y-O-Y growth of 8.4 per cent.
• A total of 3030 MW of grid-connected power generation capacity from renewable energy sources like solar and wind has been added during April – December 2015. With this, the cumulative generation capacity reached 38820 MW from these sources.
• Roads: Under the National Highways Development Project (NHDP), total length of 26, 177 km road has been completed as on 31 December 2015.
• Civil aviation: This sector witnessed an improvement of 20.4 per cent in domestic traffic and 7.8 per cent in international passenger traffic during April - November 2015-16 over the same period of the previous year.
• National level: It has emerged as the most dynamic sector globally and remains the key driver of India’s economic growth.
• In 2015-16, the services sector registered a growth of 9.2 per cent (constant prices), mainly due to the lower growth of 6.9 per cent in public administration, defence and other services vis-à-vis 10.7 per cent growth achieved in 2014-15.
• India’s services sector growth in the pre-crisis period (Before 2009) was 9.3 per cent which declined to 8.6 per centin the post crisis period.
• In States: The share of services in the Gross State Domestic Product (GSDP) varies across states.
• Out of the 23 states and union territories (UT), the services sector accounted for 87.5 per cent of Delhi’s GSDP, followed by Maharashtra at 63.8 per cent, with growth rates of 8.2 per cent and 5.7 per cent respectively.
• On the other extreme, services sector accounted for only 30.2 per cent of the GSDP in Arunachal Pradesh in 2014-15.
• Exports: India’s services exports increased from 16.8 billion US dollars in 2001 to 155.6 billion US dollars in 2014, making the country the eighth largest services exporter in the world.
• The share of India’s services exports in global services exports, at 3.2 per cent in 2014, is nearly double that of its merchandise exports in global merchandise exports at 1.7 per cent.
• Foreign Tourist Arrivals: FTAs registered a growth of 10.2 per cent and there was nearly 9.7 per cent growth in Foreign Exchange Earnings (FEE) in 2014.
• However, It decelerated to 4.5 per cent in terms of FTAs and fell by 2.8 per cent in terms of FEEs in 2015.
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