Economic Survey of India 2010-11: Analysis

The Economic Survey of India 2010-11 was tabled by the Union Finance Minister of India Pranab Mukherjee on 25 February 2011.  The Survey predicted the 9% growth for Indian economy in the next fiscal and estimated 8.6 percent growth in this financial year.The Economic Survey expressed concern over inflation and advocated for more money tightening by the Reserve Bank of India to reduce inflationary pressures.

 As per the survey, the inflation stood at 8.23 per cent in January 2011. The Survey stated that inflation could be 1.5 per cent more in future as India is on a growth path. As per the Survey, despite risks of global events like volatility in commodity prices and political turmoil in the West Asia, the Indian economy is set to grow faster and scale greater heights. It further adds that industrial output grew by 8.6 per cent and is concerned about the fall in factory output in the coming months.

 According to the economic Survey, Manufacturing registered 9.1 percent growth and Exports had an impressive growth of 29.5 percent from April to December. The Survey pointed out that imports also increased by 19 percent in the same period due to higher prices of crude oil and food grains.

The economic Survey of India stated that the trade gap has narrowed to over 82 billion US dollars in the first nine months of the current fiscal and gross fiscal deficit is at 4.8 per cent which is 1.5 percent less than last fiscal. The Survey stated that the spending in social sector programmes increased by five percent of the GDP over past five years.

As per the economic Survey of India 2010-11, the production of food grains is estimated at over 232 million tonnes with record production of wheat. It makes a strong case for a second green revolution with technological breakthrough in agriculture sector. The Survey also ephasised on the scope for further improvements in Mahatma Gandhi National Rural employment guarantee scheme to build permanent assets including infrastructure development.

The Survey pointed out that Forex reserves of India are estimated to be over 297 billion US dollars. This is mainly due to growth in export sector.

On the reform agenda the Economic Survey urged for better convergence of schemes to avoid duplications and leakage and to ensure that benefits reach to the targeted groups. It also supported for urgent need to focus on land acquisition and environment clearance for infrastructure projects and huge capacity addition in this vital sector in a time bound manner.

Besides advocating for a new goods and services tax, the Economic Survey also suggested increasing private public partnerships in infrastructure sector.

According to the Economic Survey of India, inflation and widening current account deficit remain major areas of concern. The Economic Survey put emphasis on the farm and the infrastructure sectors for achieving higher economic growth.