The economic survey has pegged India's GDP growth for 2011-12 at 9%. The govt. has given an indication that it will give a big empetus to growth despite the threat of high inflation looming over the economy. The new economic power index puts Indian economy at No.5 in the list of global economic powers behind US, China, Japan & Germany. However, the survey points to India living with higher energy prices, but indicating fiscal and monetary tightening to tame inflation. The biggest contributor to GDP will be the services sector which now contributes over 57% of GDP.
The survey indicates at giving basic banking licenses for MFIs and NBFCs and full license to Corporate aspirants after due diligence. This will help in scheiving the targets of financila inclusion. The survey calls for improving financial literacy among new savers so that the high savings of 34% of GDP could be channelised properly. The survey also points to the Govt. intervention in creating awareness in the pension product.The survey also emphasises the need for developing a vibrant corporate bond market for infrastructure financing. The survey pegs the total infrastructure investments of $450 during the 11th five year plan, with private sector contributing 34%.
The survey cautions against the declining per capita availability of food grains and the falling crop yield. There is a scope for public-private participation in social sectors such as health and education. The survey feels that targeted development of rain-fed areas and effective marketing links could serve as a long term remedy to check food price volatility. The survey argues about the need for a secong green revolution to ensure food security for all. The food subsidy bill of the govt. is expected to rise despite higher deficit, once the food security law is enacted.
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