economic survey 2007- 08 presented by P. Chidamabaram

India's Economic Survey presented by the Indian finance minister P. Chidamabaram (Pic)has predicted a lower growth of 8.7 per cent for the fiscal 2007-08, while warning that rupee appreciation, lower export growth, rising inflation and US recession were posing major challenges.

The highlights of the Economic Survey 2007-08 presented by Finance Minister P. Chidamabaram in the Lok Sabha on 28th February:

• Indian economy to top $1 trillion this fiscal at market exchange rate
  Economy projected to grow 8.7 per cent in 2007-08
  Increased activity at stock markets, key indices giving returns of around 38 per cent
  Domestic investment and savings drive growth
  Inflation projected to decline to 4.1 per cent
  Fiscal deficit to decline to 3.3 per cent
  Revenue deficit to decline to 1.5 per cent
  Gross tax GDP ratio to rise to 11.8 per cent
  Revenue expenditure grows 17 percent, higher than target of 5.4 per cent
  Concern: infrastructure constraints
  Concern: slowdown in consumer goods sector
  Concern: loss of dynamism in agriculture and allied sectors
  Fundamentals continue to inspire confidence
  Investment climate full of optimism
  Concern: Rupee appreciation
  100 per cent foreign direct investment (FDI) in home appliances, rural agricultural banks
  51 per cent FDI in rural health
  Some FDI in retail trade
  Concern: Labour force growing faster than employment growth
  Challenge: Maintaining 9 per cent GDP growth