Highlights of the Economic Survey 2002-03

Following are the highlights of the Economic Survey 2002-03:

• Economic growth scaled down to 4.4 per cent in 2002-03 from 5.6 per cent a year ago.
• Significant decline in agricultural growth by 3.1 per cent from 5.7 per cent mainly due to monsoon failure.
• Improvement in industrial production to 6.1 per cent in current fiscal from 3.3 per cent a year ago.
• Fiscal deficit expected to be at the target level of 5.3 per cent of GDP in 2002-03 as against 5.9 per cent a year ago.
• Exports grow by 20.4 per cent (April-December 2002) over the corresponding previous period.
• Services sector to grow at 7.1 per cent in the current fiscal from 6.8 per cent in 2001-02.
• Gross domestic savings rose modestly to 24 per cent of GDP in 2001-02 from 23.4 per cent in 2000-01.
• Public sector savings continued to slide by 2.5 per cent whereas in private sector it improved strongly by 26.5 per cent in the same period.
• Foodgrain production declined by 13.6 per cent (provisional) during 2002-03 as compared to a healthy growth of 6.3 per cent in the corresponding previous period.
• Inflation rate expected to go up to 4.4 per cent compared to 2.6 per cent (52-week average in 2002).
• Robust export growth results in narrowing of trade deficit in 2002-03 so far to 13.2 per cent at $5,767 million during April-December 2002 from $6,643 million during the corresponding period of 2001.
• Overall trade deficit widens by 26.9 per cent in 2001-02 mainly because of a decline in exports.
• Gross domestic investment declines to 23.7 per cent of GDP during 2001-02 from 24 per cent in 2000-01.
• Gross domestic capital formation further slides to 25.6 per cent of GDP during 2001-02 from 26.2 per cent a year ago.
• Food subsidy rises alarmingly by 20.3 per cent to Rs 21,200 crore in 2002-03, mainly due to continuous hike in MSP for foodgrains and consequent increase in Centre's grain procurement over the years.
• Bank credit to the commercial sector rises by 9.7 per cent till January 10 this fiscal compared to 11.0 per cent in corresponding period previous year.
• Number of SSI units estimated to have risen to 35.72 lakh during 2002-03 from 34.42 lakh a year ago, registering an increase of 3.8 per cent.
• Actual FDI inflows up by about 10 per cent to Rs 21,286 crore even as approved FDI proposals decline to less than half to Rs 11,140 crore last year from Rs 26,875 crore in 2001.

PTI