Highlights of Indian Economic Survey 2007-08 (with my comments)

The highlights of the Economic Survey of India 2007-2008 tabled by the Finance Minister in the Parliament is given below with my cryptic comments in brackets;

Economy slows down to 8.7% in 2007-08 (Still a good growth. Could have been better but for lack of political will. The tricky issue is to evaluate how inclusive the growth has been. It is a known fact that the poor have not benefited at all. The trickle down philosophy of the PM and FM has not worked)

Inflation projected at 4.4 per cent in 2007-08 (Ground reality is different. The inflation of essential commodities are much much more that 4.4%. Government is fooling itself and the people if they are to trot out this figure)

Holding 9% growth a challenge, two digit growth even greater (No initiatives taken to even attempt this. The next government will bear the brunt of the omissions of this Government. We may see a period of slower growth in the region on 7% especially in view of higher energy prices)

Inflation and infrastructure biggest growth challenges (When was it not? So what is new? And what have the government done to tackle this?)

Skill dearth causing attrition, wage hike; pushing inflation (What else can one expect than skill dearth, considering the shambles in which our education system, especially the higher education finds itself?. Inflation because of this? This has to qualify as the best joke of the year)

Farm growth in FY'08 seen at 2.6%, against 3.8% a year ago (This is indeed a major cause for worry. The comfort of food security is a thing of the past. We are falling into a trap of food import which benefits only the multinationals)

Foodgrain output seen at 219.3 MT against 217.3 MT in FY'07 ( Something the government should have tackled on a warfooting, has been neglected by the pro business PM and FM. Aam aadmi be damned)

Acceleration in domestic investment, savings drove growth (This is a welcome sign, though I still believe it is the FDI that is driving the growth. And what about domestic consumption? The highlight is silent on this. Strange)

Macroeconomic fundamentals continue to inspire confidence ( Umm........confidence to whom?)

Investment climate full of optimism ( Same comment as above )

Industrial growth slower at 9% in first 9 months of FY'08 ( Why? And this contradicts the previous two statements. Farm sector down, Industrial growth slower and the Government want us to believe the Economy is all hunky-dory. Come on!!)

Costly rupee, sluggish consumer goods and infra a concern ( Exports in trouble because of costly rupee. But here at least the correction was over due and exporters have benefited at the expense of others for a long long time. It is pay back time. See earlier comments for the other two points)

Rupee rose by 8.9% against USD during current fiscal ( See the above comment )

Average credit growth slowed to 26.8% in FY'07, down in '08 ( Again a cause for worry. Means the economy is slowing down and the effect will be felt in 2008. Have to lay the blame squarely on the high interest rates )

Forex reserves up by $91.6 bn to $290.8 bn on Feb 8, 2008 ( High forex reserves are no longer the comforting cushion it was. It is a drag as the reserves earn low returns. We are subsidising other countries indirectly)

GDP projected at Rs 46,93,602 crore (mkt price) in 2007-08 ( That is a natural growth )

Inflation reined despite higher commodity prices & surge in capital inflows ( I beg to differ )

Growth deceleration spread across most sectors, barring power, community services and composite category of trade, hotels, transport and communications ( As I said before, definite signs that Economy is slowing down)

Capital inflows rise to 7.7% of GDP in first half of FY'08 as against 5.1% in FY'07. FDI inflows reach $11.2 bn, outward investments surge to $7.3 bn in April-September ( Some positive signs at last but too little too late)

Exports reach $111 bn in first 9 months of FY'08; Imports grow 25.9% ( Higher import growth due to high energy prices )

Surge in capital inflows, including FDI, to continue in medium term ( Are they being channelled in the right direction?)

Complete the process of selling 5-10% equity in previously identified profit making non-navratna PSUs ( Why has this not been done so far? And pray where have the government invested the previously accumulated wealth from disinvestment? Has it gone to meet the burgeoning expenses? Definitely yes and that is poor economics)

Phase out control on sugar, fertiliser, drugs ( Wishful thinking. No government has the will to tackle these. Drugs? Already the drug prices of life saving drugs are a cause of concern. With public health in shambles, the poor will suffer for want of medical care )

Sell old oil fields to private sector ( Long overdue considering the inefficiencies of the public sector )

Allow a share for foreign equity in all retail trade ( Don't think this government will be able to push this through and frankly this is not a priority area )

Raise foreign equity in insurance to 49 per cent ( 49% doesn't make any difference. Will ultimately benefit foreign insurance swindlers. The insurance company story is for another time)

Allow 100 per cent FDI in greenfield private agri banks ( And mortgage our ailing farm sector to foreigners? Why can't government channel rural credit through an elaborate micro finance network?. That is the need of the hour)

Increase work week to 60 hours from 48 hours and daily limit to 12 hours. (Fat chance this will happen. All the government has to do is limit the holidays to 12 per year. We as a nation work too less)

The economic survey has just highlighted the haplessness of this sick government which has been on a comatose situation for the past 3 years.

Let me borrow some phrases from the past and address it to our honourable PM and FM,

"Is there a Man amongst you that has the least care for the Good of the Country? You have sat here too long for the good you do. In the name of God, go!''