Highlights of Economic Survey 2008-09 (Second Lead)

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.

Last updated on Jul 2^nd, 2009 at 15:15 pm IST--IANS