Some Important Govt. Programme And Policies and Committees

(1) Prerna:- The ‘janasankhya sthirata kosh (national population

stabilization fund) has to promote & under take activities aimed at achieving population stabilization at a level consistent with the needs of sustainable economic growth. Social development and environment protection by 2045

• Prerna is a responsible for parenthood strategy. It is monetary incentive strategy aimed at pushing up the age of marriage of girls and delay the birth of the first child.

(2) National Rural Health Mission:-Lunched in April 2005 the mission seeks to provide universal access to equitable, affordable and quality health care which is accountable and at the same time responsible to the needs of the people.

• It also aims to achieve the goals set out under the national policy and the millennium development goals during the mission period.

(3) Rashtriya Swasthya Bima Yojna:-Launched by ministry of labour & employment, govt of India to provide health insurance coverage for BPL families.

• Beneficiaries are entitled to hospitalization coverage up to Rs 30,000 for most of the disease that require hospitalization.

(4) National Food Security Mission:-Sponsored scheme launched in august 2007.

• Objective is to increased production and productivity of wheat, rice and pulses.

(5) 15 Point Programme:-In Oct 2009 govt decided to include 3 more schemes in the Prime minister’s new 15 point programme for the welfare of minorities.

Those are: -

• National rural drinking water programme.

• Urban infrastructure developed scheme for small and medium town.

• Urban infrastructure and governance scheme.

(6) Bharat Nirman Yojna:- It is a time bound business plan for action in rural in infrastructure .Under Bharat nirman , action was proposed in the areas of:-

I. Irrigation.

II. Rural housing.

III. Rural water supply.

IV. Rural electrification.

V. Rural telecommunication connectivity.

(7) National Mission On Education:-It is a mission in which education is provide through information and communication technology. “SAKSHAT” one stop education portal was launched on Oct 30 2006 by the president of India.

• Head of National knowledge commission:-Sam Pitroda.

(8)Right To Education Act 2009:- Article 21-(A), as inserted by the constitution (86th Amendment Act) 2002, provides for free and compulsory education of all children in the age group of 6 to 14 years as a fundamental rights. Consequently the parliament has enacted this in April 2009.

Salient features:-

(a) Free and compulsory education 6 to 14 age group.

(b) Will apply to all India except J&K.

(c) Provide for 25% reservation for economically disadvantaged communities in admission in private school.

(d) A child who completes elementary education (up to class 8) shall be awarded a certificate.

(9) Female Literacy:-It is a scheme to provide education & related facilities to ST Students launched by ministry of trial affairs in dec 11, 2009.

(10) Anil Kalkaska Committee on reforms in IITS:-it will suggest reforms to make these elite institutions a global brand.

(11) Yashpal Committee Report:- It was set up in 2008 for higher education and research.

• It has suggested the scrapping of all higher education regulatory /monitoring bodies and creation of a super regulation.

• It also recommended that the deemed university status be abandoned and that all deserving universities be either converted into full fledged universities or scrapped.

(12) National Rural Livelihood Mission:-Ministry of rural development and panchyati raj proposed to restructure the existing swarnjayanti gram swarojgar yojna into rural livelihood mission to have a focused approach to rural poverty eradication in a time bound manner.

• Objective is to reduce poverty among rural BPL by promoting diversified and gainful self employment and wage employment opportunities which would lead to an appreciable increase in sustainable basis.

(13) NREGA Renamed After Mahatma Gandhi:- On Oct 2, 2009.

(14) Chandra Sheker Panel:- on the recomandation of a committee headed by cabinet secretary K.M Chander shaker. Centre had increased the pension for retired service man.

(15) Rajiv Awas Yojna:-Ministry of housing and urban poverty alleviation had launched the housing project called the Rajiv awas yojna for slum dwellers and the urban poor.

• Aimed at making India slum free in the next five years.

(16) Government Gave 50% Women’s Quota: - For women in urban local bodies from 33 % to 50 % by the 108th const. amendment act.

(17) B.K Chaturvedi panel to resolve the inter ministrial issues to speed up the ambitious national highways development project taken up by the road transport and highway ministry.

(18) Librahan Commission:- It was set up in dec 16 ,1992 by the Narashima Rao govt. to probe the demolition of Babri Mosque. The commission was initially asked to give a report in three months, however it could do so only after over 16 years that saw 39 sitting and 48 extensions, finally on June 30 2009 it gave the report.

(19) S.D. Tendulkar Committee:-It is to estimate poverty in the country. It’s said that about 38% of the country’s population are living below poverty line. This figure is 10% higher than the present poverty estimate of 28.5 % by the planning commission.

(20) Moily Panel:- For administrative reform commission it is the 2^nd administrative reform commission.

(21) Unique Identification Authority:- Chairman of UID is Nandan Nilekani. He revealed that the first set of 16 digit unique identification number for citizen of the country will roll out by the end of 2010.

• The UIAI is a part of the planning mission of India.

• AADHAR:-UIDAI now new name AADHAR and also a logo.

• AADHAR or foundation through through which the citizen can claim his/her rights and establishment when assumed of equal opportunities as symbolized by the logo which has the halo of the sun in the imprint of a thumbs.

(22) M.S swami Nathan Panel:- It’s recommendation is on coasted management zone.

(23) G.T Nanavati-Akshay Mehta judical commission:- Probing the Godhra train carnage and post Godhra riots.

(24) Justice B.N Srikrishna is the head of the committee on Telangana issue. The committee is requested to submit its report by dec 31, 2010.

(25) Census 2011:-15th national census of India. President being first person to share her details. First census was conducted in 1872.

(26) D.P Wadhawa Committee On PDS:-Established by the Supreme Court to give recommendation on the reform of public distribution system.

(27) Rajiv Gandhi Grammeen LPG Vitarak Yojna:- Union petroleum and natural gas ministry inaugurated this scheme for providing liquefied petroleum gas to the rural house hold at Lachhman ghar in sikar district of Rajasthan .

• Under the scheme it is proposed to increase the number of connection to 16 crores with coverage of 75% of population by 2015.

(28) Punchhi Commission:-Commission on centre state relation. It was constituted in April 2007. It was ask to make recommendation to help address the emerging challenges faced by the nation regarding centre state relation.

Before this in mid 1980’s the SARKARI commission had undertaken a comprehensive review of the center state relation.

(29) National Integration Council:-The Govt. has reconstituted it which will be chaired by prime minister. Set up in the early 60’s by Nehru.

(30) E.R Rammohan Committee on Dantewada Massacre of CRPF personal.

(31) ICDS:-Integrated child development service launched on 2nd Oct 1975.

• It is the world largest programme for early child hood.

• The objective is to improve the nutritional and health status of children in the age group of 0-6 years.

(33) Green India Mission:- Ministry of environment and forests and the defense research and development organization have launched the mission.

• The aim is to bring a million heacter of high altitude, cold desert

ecosystem under cultivation by 2020.

(34) Pradhan Mantra Adarsh Gram Yojna:- It was launched in Rajasthan Sriganga nagar district.

• Aim at integrated development of 1,000 villages where a majority of the population belongs to the schedule caste.

• It is a replica of U.P’s Ambedkar village scheme.

(35) Jawaharlal Nehru National Solar Mission:- Objective -Generation of 20000 mw of solar energy in three phases by 2022.

• Under this govt. aims to add at least 1000 mw solar power by the end of 2013.

• Power Finance Corporation and the rural electrification corporation had agreed to provide financial assistance.

(36) Certified command of state centre force in chattisgrah, orissa,Jharkhand, Bengal was mooted to counter naxal problem. Under this a IG rank officer or a retired major general on board should be headed the certified command. In this:-

• Additional helicopters should be provided.

• 400 new police stations should be opened.

• 34 new battalions should be constituted.

(37) S. Irani committee:- Rajasthan Govt appointed this committee regarding the Issue of providing reservation to Gujjars.

(38) Pradhan committee:-

• Investigate Nov 26 2008 terror attack.

(39) Muzzafar Jan Commission:-

This committee had probed the gang rape of 17 years old Asiya and pregnant neelofar in shopiaon (J&K).

(40) Kasturi Rangan Committee:- Council of scientific and industrial research (CSIR) has set up this committee. To see the capability of the national aerospace laboratory (NAL) to build civil aircraft.

(41) Goverdhan Mehta Committee:-To review the procedure of the intergovernmental panel on clime change.

Union Budget 2011-12

The Union Budget 2011-12 aims to sustain economic growth, strengthen infrastructure, moderate the price rise, particularly of agricultural produce and reduce social imbalances through inclusive development. Presenting the budget 2011-12 in the Lok Sabha February 28, the Finance Minister Shri Pranab Mukherjee said that the budget is a transition towards a more transparent and result oriented economic management system in India. He said while developments on India’s external sector have been encouraging, continued high food prices have remained our principal concern. He said that the trend revealed shortcomings in distribution and marketing system. The Finance Minister said that huge differences between wholesale and retail prices are at the expense of remunerative prices for the farmers and competitive prices for consumers.

For sustaining growth tax reform will continue with the Direct Taxes Code (DTC) to be operationalised from April, 2012 while a Constitution Amendment Bill is proposed to be introduced during the current session of Parliament as a step towards roll out of the Goods and Services Tax (GST). He said the introduction of DTC and GST will result in moderation of rates, simplification of laws and better compliance. The Finance Minister re-iterated the Government’s resolve to move towards direct transfer of cash subsidy to people living below poverty line in a phased manner. He said that the Nutrient Based Subsidy (NBS) has improved the availability of fertilizers and the Government is actively considering extension of NBS regime to cover urea.

Finance Minister announced a number of measures to strengthen the agricultural sector particularly in the areas of pulses, vegetables and oil palm . He announced Rs. 300 crore expenditure to promote 60,000 pulses villages in rain fed areas for increasing crop productivity and strengthening market linkages. He also proposed to spend Rs. 300 crore to promote oil palm plantation in 60,000 hectares and Rs. 300 crore for the initiative on vegetable cluster. Rs. 400 crore is proposed to be spent to improve rice based cropping system in the Eastern Region. Capital investment in fertilizer production is proposed to be included as an infrastructure sub-sector since investment in the sector is capital intensive.

The allocation for social sector has been increased by 17% to Rs. 1,60,887 crore which amounts to 36.4% of the total plan allocation. Bharat Nirman, which includes Pradhan Mantri Gram Sadak Yojana (PMGSY), accelerated irrigation benefit programme, Rajiv Gandhi Grameen Vidyutikaran Yojana, Indira Awas Yojana, National Rural Drinking Water Programme and Rural Telephony have together been allocated Rs. 58,000 crore. Remuneration for Anganwadi workers have been increased to Rs. 3000 per month from Rs. 1500 per month while the Anganwadi helpers will get Rs. 1500 per month. This will be effective from 1^st April 2011 benefiting about 22 lakh Anganwadi workers and helpers.

The allocation on education has been increased by 24% to Rs. 52,057 crore. Sarva Shiksha Abhiyan gets Rs. 21,000 crore which is 40% higher than the previous year’s allocation of Rs. 15,000 crore. The Finance Minister also proposed to introduce a scholarship scheme for needy students belonging to the Scheduled Castes and Scheduled Tribes studying in classes IX and X. It would benefit about 40 lakh students. Plan allocation for Health has also been increased by 20 per cent to Rs. 26,760 crores. The Rashtriya Swasthaya Bima Yojana will be extended to the unorganized sector workers in hazardous mining and associated industries.

Underlining the need to strengthen Public Sector Banks (PSBs) the Finance Minister proposed to provide Rs. 6000 crore to maintain tier 1 capital to risk weighted asset ratio. He also proposed to infuse Rs. 500 crore into Regional Rural Banks (RRB) . A Women’s Self Help Groups Development Fund with a corpus of Rs. 500 crore is proposed to be created. He also proposed to create a micro finance equity fund of Rs. 100 crore with Small Industrial Development Bank of India (SIDBI) for providing equity to smaller micro finance institutions. Rs. 3000 crore will be provided to NABARD to help handloom weaver cooperative societies to become financially viable.

Interest subvention of 1 per cent on housing loans will now be available for loans upto Rs. 15 lakh where the cost of house does not exceed Rs. 25 lakh. The present limit for the loan amount is Rs. 10 lakh while the cost of the house should not exceed Rs. 20 lakh.

The total plan expenditure has been increased by 18.3 per cent to Rs. 4,41,547 crore and the non-plan expenditure increases by 10.9 per cent to Rs. 8,16,182 crore. The gross tax receipts are estimated to grow by 24.9 per cent to Rs. 9,32,440. Rs. 2,01,733 crore will be transferred to the Sates and UTs as plan and non plan transfers. This also marks a rise of 23 per cent over budget estimates of last year. The fiscal deficit is estimated at Rs. 4,12,817 crore which works out to 4.6 per cent of the GDP.

Turning to the direct taxes, the Finance Minister proposed to increase the exemption limit for general category individual tax payers by Rs. 20,000 to Rs. 1,80,000 per year. This will provide a uniform tax relief of Rs. 2000 to every tax payer of this category. The benefit for senior citizens will now be available at 60 years of age and the exemption limit will go up from Rs. 2,40,000 to Rs. 2,50,000. Those who are 80 years and above have been brought under a new category called very senior citizens and the exemption limit in this category will be Rs. 5 lakhs.

The minimum alternate tax rate has been hiked from 18 per cent to 18.5 per cent of book profits. Developers of Special Economic Zones as well as units operating MAT in SEZs have been brought under MAT. Tax benefit for investment in long term infrastructural bonds will continue for one more year. Income from foreign subsidiaries of Indian Company will now attract a lower tax of 15 per cent tax on dividends.

Turning to indirect tax, the finance Minister said that there are 370 items that enjoy the exemption from Central Excise Duty but are chargeable to VAT. He proposed to withdraw the exemption on 130 of these items. The remaining 240 items would be brought into the tax net when GST is introduced. A nominal 1 per cent central excise duty is being imposed on 130 items. The basic customs duty has been reduced from 30 to 5 per cent on raw silk, from 5 to 2.5 per cent on certain textile intermediates and from 7.5 per cent to 5 per cent on certain inputs for manufacture of technical fibre and yarn. Stainless steel scrap has been fully exempted from customs. Export duty on iron ore has been increased to 20 per cent ad valorem both for lumps and fines. The basic customs duty on pet coke and gypsum has been reduced 2.5 per cent to give relief to cement industry.

On the service tax front a few new services have been brought under tax net. Hotel accommodation in excess of Rs. 1000 per day and service provided by air conditioned restaurants with licence to serve liquor have been brought under the tax net. Service tax on air travel has been raised by Rs. 50 in case of domestic air travel and Rs. 250 on international journey by economy class. Services provided by Life Insurance Company in the area of investment and some more legal services have also been brought under tax net.

Finance Minister said the proposals on direct taxes are estimated to result in a revenue loss of Rs. 11,500 crore while those on the service tax will yield Rs. 4000 crore more. The Finance Minister has kept the disinvestment target at Rs. 40,000 crore for the coming year. He, however, reiterated that the Government is committed to retain at least 51 percent ownership and management control of the CPSUs. He said that as an emerging economy India stands at the threshold at the decade which presents immense possibilities. He said we have the voice on the global stage and we must not let the recent trends and tensions hold us back from converting these possibilities into realities.

Union Budget 2011-12 Highlights:

· Critical institutional reforms set pace for double-digit growth

· Scaled up flow of resources infuses dynamism in rural economy

· GDP estimated to have grown at 8.6% in 2010-11

· Exports grown by 9.6%, imports by 17.6% in April-January 2010-11 over corresponding period last year

· Indian economy expected to grow at 9% in 2011-12.

· Five-fold strategy to deal with black money. Group of Ministers to suggest ways for tackling corruption

· Public Debt Management Agency of India Bill to come up next financial year

· Direct Tax Code (DTC) to be effective from April 01, 2012

· Phased move towards direct transfer cash subsidy to BPL people for better delivery of kerosene, LPG and fertilizer mooted

· Rs.40,000 crore to be raised through disinvestment in 2011-12

· FDI policy to be liberalized further

· SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirement

· FII limit for investment in corporate bonds in infrastructure sector raised

· Additional banking license to private sector players proposed

· Rs.6000 crore to be provided in 2011-12 for maintaining minimum Tier I Capital to Risk Weighted Asset Ratio (CRAR) of 8% in public sector banks

· Rs.500 crore to be provided to regional rural banks to maintain 9% CRAR

· India Microfinance Equity Fund of Rs.100 crore to be created by SIDBI

· Rs. 500 crore Women SHG Development Fund to be created

· Micro Small and Medium Enterprises MSME gets boost as Rs. 5000 crore provided to SIDBI and Rs.3000 crore to NABARD

· Existing housing loan limit enhanced to Rs.25 lakh for dwelling units

· Provision under Rural housing Fund enhanced to Rs.3000 crore

· Allocation under Rashtirya Krishi Vikas yojna (RKVY) increased to Rs.7860 crore

· Allocation of Rs.300 crore to promote 60000 pulses villages in rainfed areas

· Rs. 300 crore vegetable initiative to achieve competitive prices

· Rs.300 crore to promote higher production of nutri-cereals

· Rs.300 crore to promote animal based protein

· Rs.300 crore Accelerated Fodder Development Programme to benefit farmers in 25000 villages

· Credit flow to farmers raised from Rs.3,75,000 crore to Rs.4,75,000 crore

· Rs.10,000 crore for NABARD’s Short Term Rural Credit Fund for 2011-12

· 15 more mega food parks during 2011-12

· National food security bill to be introduced this year

· Capital investment in storage capacity to be eligible for viability gap funding

· 23.3% increase in allocation for infrastructure

· Tax-free bonds of Rs.30,000 crore proposed by government undertakings

· Environmental concerns relating to infrastructure projects to be considered by Group of Ministers

· National Mission for Hybrid and Electric Vehicles to be launched

· 7 Mega clusters for leather products to be set up

· Allocation for social sector increased by 17% amounting to 36.4% of total plan allocation

· Bharat Nirman allocation increased by Rs.10,000 crore

· Rural broadband connectivity to all 2.5 lakh panchayats in three years.

· Bill to amend Indian Stamp Act to introduce. Rs.300 crore scheme for modernization stamp and registration administration

· Significant increase in remuneration of Angawadi workers and helpers

· Allocation for education increased by24%. Rs.21,000 crore allocated for Sarv Shikshya Abhiyan registering an increase of 40%

· 1500 institute of higher learning to be connected by March 2012 with Knowledge Knowledge Network.

· National Innovation Council set up. Additional Rs.500 crore for National Skill Development Fund

· Plan allocation for health stepped up by20%

· Indira Gandhi National Old Age Pension Scheme liberalized further

· Rs.200 crore for Green India Mission

· Rs.200 crore for cleaning of rivers

· Rs.8000 crore provided for development needs of J&K

· 10 lakhs Aadhaar(UID) numbers to be generated everyday from 1^st October

· Fiscal deficit kept at 4.6% of GDP for 2011-12

· Income Tax exemption limit for general category in individual tax payers enhanced from Rs.1,60,000 to Rs.1,80,000

· Qualifying age for senior citizens lowered to 60; senior citizen above 80 year to get Rs.5,00,000 IT exemption

· Surcharge on corporate lowered to 5%

83 OSCAR AWARD WINNERS

The King's Speech" won the top Academy Award, for best picture, giving the British royals drama a total of four Oscars.

The acclaimed film about the efforts of the future King George VI to overcome a crippling stammer went into the event with a leading 12 nominations. It won such key awards as best actor for its star, Colin Firth.

The best picture award was accepted by its producers, Iain Canning, Emile Sherman and Gareth Unwin.

The nine other contenders were "Black Swan," "The Fighter," "Inception," "The Kids Are All Right," "127 Hours," "The Social Network," "Toy Story 3," "True Grit" and "Winter's Bone."

British actor Colin Firth won the Academy Award for his lead role as stammering wartime monarch King George VI in "The King's Speech."

WINNERS LIST:

BEST PICTURE: The King's Speech (Iain Canning, Emile Sherman and Gareth Unwin, Producers)

DIRECTING: The King's Speech (Tom Hooper)

ACTOR IN A LEADING ROLE: Colin Firth in The King's Speech

ACTRESS IN A LEADING ROLE: Natalie Portman in Black Swan

ACTOR IN A SUPPORTING ROLE: Christian Bale in The Fighter

ACTRESS IN A SUPPORTING ROLE: Melissa Leo in The Fighter

FOREIGN-LANGUAGE FILM: In a Better World (Denmark) (defeating Montrealer Denis Villeneuve’s Incendies)

ANIMATED FEATURE FILM: Toy Story 3 (Lee Unkrich)

WRITING (ADAPTED SCREENPLAY): The Social Network (Screenplay by Aaron Sorkin)

WRITING (ORIGINAL SCREENPLAY): The King's Speech (Screenplay by David Seidler)

SHORT FILM (ANIMATED): The Lost Thing (Shaun Tan and Andrew Ruhemann)

DOCUMENTARY (SHORT SUBJECT): Strangers No More (Karen Goodman and Kirk Simon)

SHORT FILM (LIVE ACTION): God of Love (Luke Matheny)

ART DIRECTION: Alice in Wonderland

MAKEUP: The Wolfman (Rick Baker and Dave Elsey)

COSTUME DESIGN: Alice in Wonderland (Colleen Atwood)

CINEMATOGRAPHY: Inception (Wally Pfister)

VISUAL EFFECTS: Inception (Paul Franklin, Chris Corbould, Andrew Lockley and Peter Bebb)

FILM EDITING: The Social Network (Angus Wall and Kirk Baxter)

DOCUMENTARY (FEATURE): Inside Job (Charles Ferguson and Audrey Marrs)

MUSIC (ORIGINAL SCORE): The Social Network (Trent Reznor and Atticus Ross)

MUSIC (ORIGINAL SONG): We Belong Together from Toy Story 3 (Music and Lyric by Randy Newman)

SOUND MIXING: Inception (Lora Hirschberg, Gary A. Rizzo and Ed Novick)

SOUND EDITING: Inception (Richard King)

National Games draws to a close

After a fortnight-long intense sporting action, the curtain was rung down on the 34th National Games at the Birsa Munda Athletics Stadium at Mega Sports Complex at Ranchi on February 26th, with a sprightly and colourful closing ceremony.

The five-hour programme, watched by a capacity crowd at Hotwar, brought to an end to one of the biggest and well-attended Games in which competitions were held in 33 disciplines in three cities of Jharkhand.

It was indeed a moment of great delight and immeasurable pride for the people of Jharkhand and the State Government that the Games, postponed six times, finally concluded in a manner appreciated by all.

The Games, riddled with mismanagement and hiccups at the start mainly owing to lack of experience of the local administration and officials, settled down to smooth conduct through the later part of the fortnight.

Services takes honours

At the end of it all, Services emerged as the best sporting unit with a whopping haul of 70 gold, 50 silver and 42 bronze medals for a total of 162, a tally that surpassed its previous best of 59-46-37 achieved at the last Games in 2007.

The ceremony began with a glider making sorties over the Stadium at 4.45 p.m. This was followed by the performance of the Army band. After the dignitaries arrived, nine sky divers from Indian Air Force led by Wing Commander Vasant Raj dropped down from the sky and landed inside the stadium to the lusty cheers from the crowd. The athletes, led by medal table topper Services followed by Manipur, trooped in to the accompaniment of the military band.

This ushered in the formal part of the ceremony with speeches by the guests. Richa Mishra of Delhi and Virdhawal Khade of Maharashtra, the two who were adjudged as the best female and male athletes of the Games, were awarded IOA Trophies.

Services was given the Raja Bhalendra Trophy which was received by Air Marshal J.N. Verma on behalf of the Services Sports Control Board. Manipur was adjudged as the best State and was given a trophy as well.

Over to Kerala

After the Indian Olympic Association president, Suresh Kalmadi declared the Games closed, the OCA flag was ceremoniously lowered and handed over to the president of the Kerala Olympic Association president, M.M. Abdul Rahman, and Kerala Sports Council president, T.P. Dasan. Kerala will be the host of the 35th edition in seven cities spread across the State in December next year.

In a most poignant moment, the sacred flame was put out marking the end of the Games and the festivities associated with them. To lift up the sagging spirit, the cultural programme took the centrestage with a tribal musical ensemble and an audio-visual presentation.

The folk artists from Manipur along with Punjab's Bhangra performers took over to captivate the audience. A special show ‘Bidaai' (farewell), a song and dance tribute to commemorate the victory after hurdles and challenges was performed to thank Mother Nature.

Over 170 dancers and performers from Kerala showcased the State's rich cultural heritage by performing Kalaripayattu, Kathakali, Mohiniattam and finally captivated the audience with the Shingarimelam and Kerala horns.

Famous singer Shaan and actress Katrina Kaif came on the stage to regale the audience and the ceremony concluded with laser show and fireworks.

INDIA ECONOMIC SURVEY 2010-11

Indian economy is poised to grow by 9 per cent in 2011-12 despite risks of global events like volatility in commodity prices, exacerbated by political turmoil in the Middle East, according to Economic Survey.

The Survey for 2010-11, tabled in Parliament by Finance Minister Pranab Mukherjee, has pegged the economic growth at 8.6 per cent for the current fiscal, helped by broad based rebound in agriculture and “continued momentum” in manufacturing and private services.

Inflation, an area of concern which acts as a road block for the growth, is expected to be 1.5 per cent higher than projected earlier, it said. Food inflation, in particular, has come as major challenge for the economy.

Prime Minister Manmohan Singh had on Thursday said that general inflation would come down to 7 per cent by March end from more than 8 per cent now.

Days ahead of the general budget, the Survey indicated the need for fiscal consolidation. “Food inflation, higher commodity prices and volatility in global commodity markets have been a cause of concern underscoring the need of fiscal consolidation and stronger reserves,” it said.

Recognising the fact that prices continue to be high, the Survey has underlined the need to “monitor emerging trends in inflation” on a monthly basis while suggesting that the government should improve delivery mechanism by strengthening the situation and addressing “corruption.”

The 456-page report said inflation is expected to be higher than “what would be if the country was not on the growth curve.”

About the growth projections, the document said that with good monsoons, the agriculture sector is expected to grow by 5.4 per cent during the current financial year up from a lowly 0.4 per cent in the fiscal 2009-10.

“Rise in food inflation and the critical role of agriculture underlines the need for larger investments in the agriculture sector enroute to the second green revolution,” it said.

In its endeavour to achieve higher economic growth, the government should pursue a reform agenda which include over a dozen steps including streamlining land acquisition and faster environmental clearance for infrastructure projects.

The Survey called for an early introduction of the Goods and Service Tax (GST).

It underlined the need for private sector participation in social sectors such as health and education in the form of ’public-social-private’ partnership for supplementing the government efforts.

In the backdrop of difficulties in land acquisition, the Survey, which is considered as report card of the government along a paper prescribing policies to be pursued, suggested formation of a National Forest Land Bank.

This land bank will have clear titles to reduce approval time for forest go ahead.

It said that focus of the government’s flagship programme ’Mahatma Gandhi National Rural Employment Guarantee Scheme’ should be shifted to permanent asset building and infrastructure development.

The Economic Survey pegged the country’s agriculture sector growth at 5.4 per cent this fiscal, as against 0.4 per cent in the previous year.

The Survey also called for a “Second Green Revolution with technological breakthrough in the agriculture sector” to boost farm output and ensure the food security of the country.

“Agriculture likely to grow at 5.4 per cent in 2010-11,” said the Survey, which was tabled in Parliament on Friday.

The growth of agriculture and allied sectors is expected to be higher this year on the back of a revival in foodgrains production in the 2010-11 crop year (July-June) following a good monsoon.

Foodgrains production is estimated to rise to 232.07 million tonnes in 2010-11 crop year from 218.11 million tonnes last year. The country is all set to harvest a record wheat, pulses and cotton crop this year.

In the 2009-10 crop year, farm sector growth was only 0.4 per cent due to severe drought in 2009, which hit almost half the country, reducing foodgrain production by 16 million tonnes.

Following are the highlights of Economic Survey for the fiscal year 2010-11, presented in Parliament on 2011 February 25:

* Economy to grow at 8.6 per cent in 2010-11 and 9 per cent in the next fiscal.

* Gross Fiscal Deficit stands at 4.8 per cent of GDP, down from 6.3 per cent last year.

* Inflation expected to be 1.5 per cent higher than what it would be if the economy were not on growth path.

* Economy sees broad-based growth; rebound in farm and continued momentum in manufacturing, private services.

* Fundamentals strong with growing savings and investments, rapid rise in exports.

* Industrial output grows by 8.6 per cent; manufacturing sector registers 9.1 per cent.

* Exports in April-December 2010 up 29.5 per cent; imports up 19 per cent.

* Trade gap narrowed to $ 82.01 billion in April-December 2010.

* Food inflation, higher commodity prices and volatility in global commodity markets cause of concern.

* Inflation continues to be high; need to monitor emerging trends in inflation on a sequential monthly basis.

* To check food inflation, the government should improve delivery mechanisms by strengthening institutions and addressing corruption.

* Savings rate has gone up to 33.7 per cent, while the investment rate is up at 36.5 per cent of GDP.

* Rising food inflation underlines need for larger investment in farming, enroute to Second Green Revolution.

* Net bank credit grows by 59 per cent.

* Social programme spending stepped up by 5 percentage points of GDP over past 5 years.

* Production of foodgrains estimated at 232.1 mn tonnes.

* Forex Reserves estimated at $ 297.3 billion.

* Accelerated investments needed in infrastructure to address delays, cost overruns, regulatory impediments.

* Telecom sector did exceedingly well; role of services sector as the potential growth engine laudable.

* Policies needed to promote new areas such as accounting, legal, tourism, education, financial and other services.

* Economic growth to be faster than ever before in next two decades.

* Need for efficient taxation of goods and services by a new GST regime.

* Improve convergence of social and financial inclusion schemes to check unemployment, poverty and leakages.

* Reform university and higher education; correct demand supply mismatch in job market.

* Meet resource gap in higher education through public private partnership, with regulatory oversight.