PMEAC economic review highlights

Following are the highlights of the Economic Review presented by the Prime Minister’s Economic Advisory Council today.

Economy projected to grow at 6.4% in 2013-14.

Decline in growth appears to have bottomed out.

Global growth would continue to remain at modest levels.

GDP estimates by CSO for 2011-12 and 2012-13 could be revised upwards.

Investment and savings rates have come down

Investment rate estimated at 35.8% of GDP in 2012-13.

Domestic savings rate pegged at 30.8% of GDP last fiscal.

CAD estimated to decline to 4.7% of GDP ($100 b) in FY14 from 5.1% in FY13 ($94 b).

Merchandise trade deficit estimated at $ 213 b (9.9% of GDP) in FY14 against $200 b (10.9% of the GDP) in FY13.

NRI remittances estimated at $113 b (5.3% of GDP) in FY14 versus $105.8 b (5.7% of GDP) in FY13.

For 2013-14 , FDI inflows estimated at $36 billion.

WPI inflation expected at 6% this fiscal.

PMEAC says slowing inflation will create space for RBI to cut interest rate.

Central subsidies expected to go down to Rs 2,31,084 crore in FY14 from Rs 2,57,654 crore in 2012-13.

FY14 revenue targets realisable.

PMEAC says more needs to be done to facilitate new investment.