The Prime Minister’s Economic Advisory Council (PMEAC) under the Chairmanship of C Rangarajan on 23 April 2013 presented the Economic review 2012-13.
Find here the highlights of the Economic Policy Review presented by the Prime Minister’s Economic Advisory Council:
• India’s economy is expected to grow 6.4 percent in the new financial year that began on 1 April 2013.
• PMEAC pegged the WPI inflation at around 6 percent and food inflation, at 8 percent.
• FY13 bank credit growth at 14.1% vs 17% in the year-ago period. Bank credit growth lower due to weak credit demand & tight liquidity.
• Net FDI at 18 billion dollars in FY13. FII inflows at 24 billion dollar in FY13 We expect net FDI inflow at 24 billion dollars and FII at 18 billion dollars for FY14
• The fiscal deficit of the Centre for 2012-13 is estimated to be 5.2% of GDP. It was 520924 crores Rupees in 2012-13 as per revised estimates, and is expected to be 542499 crores Rupees in 2013-14 as per budget estimates.
• Current Account Deficit is estimated to be 94 billion dollars (5.1% of GDP) in 2012-13 and is projected to be 100 billion dollars (4.7% of GDP) in 2013-14.
• Merchandise trade deficit is estimated to be 200 billion dollars (10.9% of the GDP) in 2012-13 and is projected to be 213 billion dollars (9.9% of GDP) in 2013-14.
• Net invisibles earnings are estimated to be 105.8 billion dollars (5.7 % of GDP) in 2012-13 and are projected to be 113 billion dollars (5.3 % of GDP) in 2013-14.
• It is estimated that for 2012-13 the net inflow of FDI was 18 billion dollars (26 billion inbound and 8 billion dollars outbound). For 2013-14 EAC has projected higher inbound flows of the order of 36 billion dollars. Outbound FDI is also expected to increase, resulting in net FDI inflow of 24 billion dollars.
• FII inflows were weak in the first quarter of 2012-13, but picked up in the second and third quarters. For the year as a whole, portfolio inflows are estimated to be close to $24 billion. Portfolio capital flows are projected to be 18 billion dollars in 2013-14.
• The total inflows under the head of loans are estimated to be about 30 billion dollars in 2012-13. This comprises mostly of external commercial borrowings (ECBs) and short-term loans. The projected figure for 2013-14 is $36 billion.
• The total banking capital inflows for 2012-13 are estimated to be $24 billion and are projected to be at 22 billion dollars for 2013-14.