The government has tabled Economic Survey 2014-15 in the Lok Sabha. The survey says the economy is overcoming inflation, high deficit.
On expenditure front, Budget must have a roadmap for direct cash transfer in kerosene, foodgrain and fertilisers, and ensure there is a proper plan for subsidy reduction.
The current economic survey makes a clear case about why the price subsidy is not the government's best weapon of choice in the fight against poverty.
The pick-up in employment generation, however, did not keep pace with the increase in labour force, wherein 14.9 million persons were added to the labour force.
Though male literacy is still higher at 80.9 per cent than female literacy at 64.6 per cent, their increase has been 10.9 per cent compared to 5.6 per cent for males.
Market analysts said that Indian markets rallied because of huge inflows by overseas investors, after government announced several reform measures.
Manufacturing sector was stifled by a general deterioration in the macroeconomic environment, while electricity projects are victim of lack of coal.
Reduction in CAD to about one one per cent in the coming fiscal year has made India an attractive investment destination well above most other countries, the survey said.
The country's National Solar Mission is being scaled up five-fold to 1,00,000 MW by 2022.
The report ranked India 48th in terms of innovation with score of 4, compared to China's ranking at 40 (score 4.2) and Brazil 44 (score 4.1). Russia ranked 66th with a score of 3.8.
Gems and jewellery exports contribute about 15 per cent to the country's total outbound shipments.
Regarding the external payments, the survey said the situation had never before been so comfortable as now.
The government should meet its medium-term target of lowering the fiscal deficit to 3 per cent of gross domestic product, the Survey added.
India's consumer inflation will drop to between 5 and 5.5 per cent in 2015/16, opening up space for more monetary easing, the Economic Surveyhas said.
The survey reviews the developments in the Indian economy over the past year.





