Taking the train to faster growth

For this, reforms are critical and challenges need to be overcome. One such challenge is reviving investments. The survey points to a subdued private investment scenario, vindicating a CRISIL study of 192 firms released earlier this week. The study projects an 11 per cent decline in private capital expenditure in 2015-16, leaving it to the government to do the initial heavy lifting for reviving the investment cycle.

The focus on railways, which is identified as a sector with large multiplier effects, is the distinguishing feature of the survey. "The present government can now do for the neglected railways sector what the previous NDA government did for rural roads," says the Survey. It advocates investment in dedicated freight corridors that can parallel the golden quadrilateral, along with associated industrial corridors. The survey backs its claim that railways have the potential to crowd in private investments and trigger growth with global and domestic research findings. Greater public investment in railways will boost the manufacturing sector substantially via its backward and forward linkages, it argues.

The survey unambiguously supports the criticality of adhering to glide path of fiscal consolidation to trim the fiscal deficit to 3 per cent of GDP by 2016/17. This is important from the point of boosting investor sentiment as well as creating an environment for growth inducing monetary policy.

Union Budgets seldom follow Economic Surveys' advice. But given the rising discontent with the slow pace of reforms and the fact that we are some four years away from the next elections, this is the appropriate time to push some bold measures.

The survey keeps hopes alive, saying: "Political mandate for reform and a benign external environment have created a historic moment of opportunity to propel India onto a double-digit growth trajectory. This trajectory would allow the country to attain the fundamental objectives of "wiping every tear from every eye'".

Amen to that.

FULL COVERAGE: Union Budget 2015