Economic outlook distinctly upbeat says Economic Survey 2006-2007

27 Feb '07

3 min read

- Agriculture continued with growth estimated at 6.0 per cent
and 2.7 per cent in the two recent years, and services
maintained its vigorous growth performance

- Growth of GDP at factor cost at constant (1999-2000) prices
in the current year at 9.2 per cent

- Industry has never consistently grown at over seven per cent
per year for more than three years in a row before 2004-05.
Fifth, year-on-year, manufacturing, according to the monthly
Index of Industrial Production (IIP) available until
December 2006, has been growing at double digit rates every
month since March 2006, with the solitary exception of the
festive month of October.

- Net foreign assets (NFA) of the RBI up net foreign assets
(NFA) of the RBI

- India's exports crossed the US$100 billion mark

- The upbeat mood of the capital markets, reflecting the
improved growth prospects of the economy, was partly also a
result of steady progress made on the infrastructure front

- Increasing trend in gross domestic savings as a proportion of GDP observed

- Production of cotton expected at 21.0 million bales is not
only up 13.5 per cent from 2005-06, but also an all-time
record

Issues & Priorities

- Economy appears to have decidedly 'taken off' and moved from
a phase of moderate growth to a new phase of high growth

- Current growth phase is sustainable despite high inflation

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