Economic Survey predicts GDP in range of 5.4 to 5.9 % in 2014-15

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i. Indian economy is likely to grow in the range of 5.4 to 5.9 per cent in 2014-15 overcoming the sub-5 per cent GDP growth of past two years, even as poor monsoon and disturbed external environment remain a cause for concern, says the Economic Survey.

ii. The Survey, released a day ahead of the budget for 2014-15, expects that moderation in inflation will ease the monetary policy stance and revive the confidence of investors. "...with the global economy expected to recover moderately, particularly on account of performance in some advanced economies, the economy can look forward to better growth prospects in 2014-15 and beyond," it said.

iii. After recovering in 2009-10 and 2010-11, GDP growth slowed down to decade's low of 4.5 per cent in 2012-13. 

     ECONOMIC SURVEY HIGHLIGHTS 2013-14: 

·         GDP growth seen at 5.4-5.9 pc in 2014/15 

·         Growth rate of 7-8 pc can occur after 2015/16 

·         CAD to be contained at 2.1 pc of GDP in 2014-15 

·         Wholesale inflation expected to moderate by end-2014 

·         Need DTC as clean modern replacement for existing I-T laws 

·         RBI intervention in forex market behind accumulation of reserves "generally"

·         Rupee has stabilised, reflecting an overall sense of confidence in forex and capital markets

·         Capital controls under FEMA do not support rapidly globalising economy.