Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://www.kotaksecurities.com/pdf/dmb/MorningInsight16032012.pdf
ECONOMIC SURVEY - MARCH 2012
The Economic Survey has sounded an optimistic stance on the Indian
economy going ahead, for FY13 and FY14. It has forecast a growth of 7.6%
in FY13 and 8.6% for FY14, on the back of a 30%+ investment rate. To
achieve this, it has advocated a strong agriculture and infrastructure push
through. Removal of bottle-necks and administrative reforms in both these
segments, have been recommended.
While it is optimistic on growth, it has taken cognizance of the various
challenges faced by the economy. The most important among these are
inflation and fiscal deficit. Global economic uncertainty is also a risk to the
future growth, the survey says.
On fiscal deficit, the Survey has indicated that, the fiscal deficit will be
higher than budgeted but the extent of slippage could be one-off because of
a host of factors turning unfavourable together. It has also indicated the
possibility of a revised FRMB targets. Structural changes on the expenditure
side are the way forward towards controlling the deficit, the survey says.
On inflation, the Survey, while noting the high inflation has sought solace
in the fall in the rate over the recent past. It has indicated a rate of 6.5% -
7% by March and further moderation ahead. While stressing on further
fiscal initiatives, it has noted the risks emanating from the high crude prices
and the high level of global liquidity.
In agriculture, the Survey has reflected on the reducing productivity in India
and on the inadequacies in supply chain. It has recommended higher spends
on R&D, dissemination of technology and provision of agricultural inputs to
improve yield. It has also indicated the need for better storage facilities and
better distribution system. Higher private participation in supply chains has
been recommended, including FDI in multi-brand retail.
The Survey has raised concerns on the sliding industrial growth, the
contribution of which has come down to 27% of GDP. It has recommended
the implementation of the National Manufacturing Policy to remove the
infrastructure bottlenecks and also to provide more impetus to the sector.
All in all, the Survey, while being optimistic on growth, also acknowledges
the various challenges faced by the economy and has made
recommendations to overcome these, which are along expected lines. The
Survey has stressed on effective implementation of infrastructure projects. It
has also emphasized on convergence of plan schemes with focus on
outcomes.
Active implementation of these recommendations, we opine, can lead to
sustained high growth in the long term for the Indian economy. We
understand that, implementation of all of these may be difficult in the near
term.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://www.kotaksecurities.com/pdf/dmb/MorningInsight16032012.pdf
ECONOMIC SURVEY - MARCH 2012
The Economic Survey has sounded an optimistic stance on the Indian
economy going ahead, for FY13 and FY14. It has forecast a growth of 7.6%
in FY13 and 8.6% for FY14, on the back of a 30%+ investment rate. To
achieve this, it has advocated a strong agriculture and infrastructure push
through. Removal of bottle-necks and administrative reforms in both these
segments, have been recommended.
While it is optimistic on growth, it has taken cognizance of the various
challenges faced by the economy. The most important among these are
inflation and fiscal deficit. Global economic uncertainty is also a risk to the
future growth, the survey says.
On fiscal deficit, the Survey has indicated that, the fiscal deficit will be
higher than budgeted but the extent of slippage could be one-off because of
a host of factors turning unfavourable together. It has also indicated the
possibility of a revised FRMB targets. Structural changes on the expenditure
side are the way forward towards controlling the deficit, the survey says.
On inflation, the Survey, while noting the high inflation has sought solace
in the fall in the rate over the recent past. It has indicated a rate of 6.5% -
7% by March and further moderation ahead. While stressing on further
fiscal initiatives, it has noted the risks emanating from the high crude prices
and the high level of global liquidity.
In agriculture, the Survey has reflected on the reducing productivity in India
and on the inadequacies in supply chain. It has recommended higher spends
on R&D, dissemination of technology and provision of agricultural inputs to
improve yield. It has also indicated the need for better storage facilities and
better distribution system. Higher private participation in supply chains has
been recommended, including FDI in multi-brand retail.
The Survey has raised concerns on the sliding industrial growth, the
contribution of which has come down to 27% of GDP. It has recommended
the implementation of the National Manufacturing Policy to remove the
infrastructure bottlenecks and also to provide more impetus to the sector.
All in all, the Survey, while being optimistic on growth, also acknowledges
the various challenges faced by the economy and has made
recommendations to overcome these, which are along expected lines. The
Survey has stressed on effective implementation of infrastructure projects. It
has also emphasized on convergence of plan schemes with focus on
outcomes.
Active implementation of these recommendations, we opine, can lead to
sustained high growth in the long term for the Indian economy. We
understand that, implementation of all of these may be difficult in the near
term.
No comments:
Post a Comment