India's Economic Survey Sees Recovery, But With Reforms

New Delhi: Pushing for reforms and tangible action on removing bottlenecks to investment and job creation, India's Economic Survey for 2012-13 pegs the country's growth at 6.1-6.7 percent next fiscal, with inflation easing soon to 6.2-6.6 percent.

The survey released hours ahead of the annual budget said India is likely to meet the fiscal deficit target of 5.3 percent of the gross domestic product (GDP) in the financial year ending March 31.

The forecast came against the backdrop of a deceleration in growth to around 5 percent and 6.2 percent in the previous two fiscals from 9.3 percent and 8.6 percent in the two fiscals before that, induced largely by the global slowdown and financial crisis.

"The slowdown is a wake-up call for increasing the pace of actions and reforms," said the survey, adding that India has navigated difficult times as these before, and with good policies and strong reforms programme, it will again come through stronger.

Authored by Chief Economic Advisor Raghuram Rajan, the report card on the state of the economy, with recommendations for the way forward, was tabled in parliament by Finance Minister P. Chidambaram Wednesday, a day ahead of the national budget for 2013-14.

Addressing a media conference after release of the survey, Rajan said Indian economy was at a "turning point" and the macro-economic situation would improve in the next financial year, helped by moderate inflation and better external factors.

"India is in a difficult but not impossible situation...we are at or beyond the turning point of the economy," he said.

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