Economic Survey 2012-13 Summary

Economic Survey is the compilation prepared Ministry of Finance, Government of India. It is submitted in the parliament just before the Union Budget. A proper understanding of this annual document is essential for many exams – particularly UPSC Prelims and Mains.

What is Economic Survey?

Economic Survey is a survey document which is both backward and forward looking. It mainly analyses the last 12 month growth story of India. The same document also gives analysis on the outlook and challenges of Indian Economy and hence it is highly discussed by policy makers.

2012-13 Economic Survey consists of 13 chapters, including a new addition on Demographic Dividend (Jobs).

Highlights of Economic Survey 2012-13

Economic Survey performs an analysis of last financial year, lays down objectives for next financial year, finds the challenges and concerns, suggests the solutions that can be taken and forecasts the economic situation of next year. Read to know more.

Analysis of 2012-13 Indian Economy :

• GDP growth rate 2012-13 : 5 % (Growth rate has slowed down, last year it was 6.2%)
• Growth rate in services sector : 6.6% (Growth less than 2011-12, when it was 8.2%)
• Inflation : WPI at manageable levels of 6.2-6.6%, but CPI in double digits (Reason: Food Inflation of Cereals)
• Net Exports : Decreasing
• Foreign Exchange : 286 b$-296b $ (More or less same value as last year)
• Rupee Range : 53-54.7
• NPA of Banks : 3.57 of total credits advanced ( 2.36% last year)
• Major Spending Area by Govt : Education, Health ( In Area of Human Development)

Objectives for 2013-14 as per Economic Survey :

• Revive Growth 
• Increase Investment
• Macroeconomic Stabilization (Inflation, Fiscal Deficit, CAD)

Challenges and Concerns as per Economic Survey :

• Low Tax Revenue
• Program Leakages
• Fund not reaching targeted beneficiaries
• More people in low productive jobs like Construction.
• Job Creation for seizing the demographic dividend – Central Theme
• Need to increase savings so that there will be more investment.
• Reduce High Inflation – by decreasing High CAD and High FD.

Solutions or Steps that can be taken :

• Good policies to boost investment
• Reduce cost for loans
• Stop food inflation of cereals
• Widen Tax base
• Prioritize Expenditure
• Strong call to cut subsidies
• Reforms to tackle economic slowdown

Forecast for 2013-14 by Economic Survey :

• GDP growth rate : 6.1-6.7 (estimated)
• Global Economy and Indian Economy to recover in 2013

Economic Survey 2012-13 Chapters