Following are the highlights of the Economic Outlook 2013-14 released by Prime Minister’s Economic Advisory Council (PMEAC) Chairman C Rangarajan today:
* GDP growth for 2013-14 lowered to 5.3%, from 6.4% in April
* Growth likely to pick up in the second half of 2013-14
* Agriculture growth pegged at 4.8%, industry at 2.7%
* Services growth to decelerate to 6.6%, from 7.1 % in 2012-13
* March-end inflation projected at 5.5%
* Current Account Deficit (CAD) main concern, may come down to $70 billion or 3.8% of GDP
* Trade deficit projected at $185 billion
* Gold imports seen at $38 billion
* Net capital inflows to come down to $61.4 billion from $89.4 billion
* Rupee at current level is well corrected, will strengthen with improvement in CAD
* Containing fiscal deficit at 4.8% of GDP a challenge
* Expenditure compression, subsidy restructuring necessary to avoid fiscal slippages
* Current monetary policy stance should continue till rupee stabilises
* Liberalise FDI norms, resolve tax issues, focus on coal and power sector to promote growth
* Domestic savings rate to increase to 31%, from 30.2% in 2012-13
* Investment rate to decline to 34.7% of GDP from 35%.