New Delhi, July 2 (Inditop.com) Salient features of a wish list in the Economic Survey for 2008-09 released by Finance Minister Pranab Mukherjee in parliament Thursday:
– Cut fuel, food and fertiliser subsidy leakages
– Raise foreign investment cap in insurance to 49 percent
– Allow 100 percent foreign investment in health, weather insurance
– Raise foreign investment cap in defence production to 49 percent and in high tech defence to 100 percent
– Raise Rs.25,000 crore from divestment every year
– Sell 5-10 percent in profitable non-Navratnas
– List unlisted state-owned firms, divest at least 10 percent equity
– Auction loss-making state-owned firms
– Rationalise dividend distribution tax to avoid double taxation
– Review customs duty exemptions
– Remove fringe benefit tax
– Remove commodity and security transaction taxes
– Limit subsidy on cooking gas to six-eight cylinders per household
– Kerosene subsidy only for non-electrified, non-cylinder homes
– Introduce new income tax code
– Provide fertiliser subsidy directly to farmers
– Target zero fiscal deficit
– Eliminate inverted duty structure
– Convert specific textile taxes to ad valorem
– Lift price control on all drugs except essentials
– Roll back excess liquidity once growth picks up
– Decontrol sugar and insurance industries
– Auction spectrum and make it freely tradable
Taking stock of the country’s economic condition, the survey said India could grow by around 7.75 percent in 2009-10 if the US economy “bottoms out” by September.
Among other observations it made on the economy are:
– Economic growth decelerates to 6.7 percent in 2008-09
– Per capita growth at 4.6 percent
– Agricultural growth falls to 1.6 percent from 4.9 percent in 2007-08
– Manufacturing sector grows at 2.4 percent
– Ratio of fixed investment to GDP increases to 32.2 percent
– Fiscal deficit stands at 6.2 percent
– Merchandise export grows at 3.6 percent in dollar terms
– Overall import growth at 14.4 percent
– Social, agriculture and infrastructure sectors need boost
– Rural demand still strong.
