core sector communique

Economic Survey 2009-10

 Economy posted a remarkable recovery expected to grow at 7.2 per cent in 2009-10 against 6.7 per cent in 2008-09. Survey hopes the Indian GDP can be expected to grow around 8.5+/- 0.25 per cent, with a full recovery, breaching the 9 per cent mark in 2011-12.

 Manufacturing growth more than doubled to 8.9 per cent in 2009-10 from 3.2 per cent in 2008-09.

 Survey recognizes food inflation as major concern.

 Per capita income increased to 5.3 per cent in 2009-10 from 3.7 per cent in 2008-09.

 Gross Fiscal deficit stands at 6.5 per cent of GDP.

 Liquidity condition remained comfortable during 2009-10.

 Bank credit grows by 13.9 per cent on year-on-year basis. Non-food bank credit recorded an increase of 8.7 per cent on financial year basis till January 15, 2010 as per the latest available data.

 Agricultural credit disbursal exceeds target. At sectoral level, there has been a rebound in the growth rate of investment in the agricultural sector, which grew at 16.5 per cent and 26.0 per cent in 2007-08 and 2008-09 respectively against 1.4 per cent recorded in 2006-07.

 Investment Deposit Ratio increases to 32.52 per cent.

 Balance of Payment situation improves due to surge in capital flows and rise in foreign exchange reserves, which have been accompanied by rupee appreciation.

 Net capital flows to India at US$ 29.6 billion in April-September 2009 remained higher as compared to US$ 12.0 billion in April-September 2008.

 During fiscal 2009-10, foreign exchange reserves increased by US$ 31.5 billion from US$ 252.0 billion in end March 2009 to US$ 283.5 billion in end December 2009.

 Recommendations of the Thirteen Finance Commission needs to be taken on board in shaping the fiscal policy for 2010-11 and in the medium term.

 Momentum in telecommunication sector continues with monthly additions exceeding 17.6 million connections.

 Share of central government expenditure on social services including rural development, in total expenditure, plan and non-plan gone up to 19.46 per cent in 2009-10 which was only 10.46 per cent in 2003-04.