The key highlights are as follows:
- GDP growth for 2011-12 scaled down to 7.1% from earlier estimate of 8.2% in August 2011
- GDP growth projection is better compared to 7.0% from RBI and 6.9% from CSO
- Gross fixed Capital formation (GFCF) for 2011/12 to slip 400 bps to 29.3%
- Manufacturing and construction may show improvement in the last quarter.
- Strong growth in the services sector will continue
- CAD for the 2011/12 is projected to be 3.6%.
- Headline inflation is projected to be around 6.5% at the end of March 2012
-Government must strive to contain and improve the efficacy of subsidies.
Prospects for 2012/13
- GDP growth at 7.5 to 8%. Mining and manufacturing to show substantial improvement
- Inflationary pressure will continue to ease and will remain around 5-6% for the year.
- Vigil to be kept on food prices
- Greater need to invest in infrastructure for both capacity creation and operational performance
- CAD projected at around 3.0% of GDP.
- Need to keep the CAD between 2.0-2.5% over the medium term.
-Government must effectively lay out a road map to achieve fiscal consolidation.
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