Page 10 - Economic Survey

GST led to high tax buoyancy, augurs well for resource mobilisation: Survey

Goods and Services Tax collection is showing a higher buoyancy than the pre-GST system, auguring well for future resource mobilisation in the economy, the Economic Survey 2022-23 presented in Parliament said on Tuesday. Giving a 5-year analysis of tax collection pre and post-GST, the survey said the taxes which were subsumed in the Goods and Services Tax had a buoyancy of one. However, the buoyancy improved to 1.1 after the GST implementation on July 1, 2017. "Improved tax collection efficiency was one of the main arguments in favour of GST. The evidence so far suggests that GST is indeed showing a higher buoyancy than the pre-GST system. This augurs well for future resource mobilisation in the economy," said the Economic Survey. Tax buoyancy refers to an increase in tax collections in proportion to a rise in national income. A higher buoyancy reflects the increased efficiency of the tax system.

Rollout of 5G services can unleash new economic opportunities: Eco Survey

The rollout of 5G services can unleash new economic opportunities and help India leapfrog the traditional barriers to development, while boosting innovation by startups and businesses, the Economic Survey said. The massive wave of digitisation, rising penetration of smartphones, and technology adoption have opened the doors for both traditional and new-age sectors, observed the Economic Survey 2022-23, which was tabled in Parliament on Tuesday. "The rollout of 5G services can unleash new economic opportunities and help the country leapfrog the traditional barriers to development, spur innovations by startups and business enterprises, and advance the 'Digital India' vision," it said. The journey is "far from complete and a lot remains to be accomplished to realise our true potential". The survey made a mention of the interstate disparity in teledensity, where rural areas trailed urban locations in the telecom penetration, but added in the same breath that the catch-up by the rural .

Adequate, affordable finance a constraint in climate action: Eco Survey

The availability of adequate and affordable finance remains a constraint in India's climate actions, the Economic Survey for 2022-23 tabled in Parliament on Tuesday said. The country's climate actions have so far been largely financed from domestic sources only, including government budgetary support, a mix of market mechanisms, fiscal instruments and policy interventions, it added. While several estimates of the required investments are indicated in the long-term low greenhouse gas emission development strategies (LT-LEDS) report prepared by India, it is important to note that all allude to a need for tens of trillions of US dollars, it said. While India is less responsible for the high stock of emissions, it has consistently engaged in demonstrating global leadership towards adopting various measures and ensuring a low-emission growth pathway, with a commitment to the net-zero emissions goal by 2070, it added. "India's climate ambitions require resources to be dedicated to the ca

Enhanced domestic coal production to replace imports: Economic Survey

India's coal sector is likely to grow at 6-7 per cent per year to reach production level of 1.5 billion tonne by 2030 and this rise in output is expected to replace imports and increase exports, the Economic Survey said on Tuesday. There has also been constant efforts to improve system capacity utilisation from about 80 per cent to above 90 per cent. Various measures have been initiated towards achieving self-reliance in coal production. These include FDI under the automatic route, auctioning of coal blocks for commercial production, expansion of existing mines and opening of new mines, greater use of mass production technology in mining, mechanisation of loading and development of evacuation infrastructure, among others, the survey said. Coal production in FY23 is likely to increase to 911 million tonne, about 17 per cent higher compared to the previous year. In April-December FY23, coal production rose 14 per cent year-on-year and was 21 per cent higher than the pre-pandemic ...

Entirely dismantle licensing, inspection and compliance regime: Eco Survey

The Economic Survey 2022-23 on Tuesday recommended "entirely" dismantling the licensing, inspection and compliance regime, and a host of other reforms to accelerate economic growth to sustained higher levels. The Survey tabled in Parliament by Finance Minister Nirmala Sitharaman said the reforms undertaken before 2014 primarily catered to product and capital market space. "They were necessary and continued post-2014 as well," it said. The government, however, imparted a new dimension to these reforms in the last eight years. "With an underlying emphasis on enhancing the ease of living and doing business and improving economic efficiency, the reforms are well placed to lift the economy's potential growth," it said while listing out reforms undertaken by the Modi government since 2014. The Survey has been authored by a team lead by Chief Economic Adviser V Anantha Nageswaran. It said that while the new age reforms undertaken over the last eight years form the foundation of a resili

Promoting int'l trade in rupee to help reduce currency volatility: Survey

Promoting international trade in the domestic currency will help in protecting the rupee from volatility and reduce cost of doing business in the global markets, Economic Survey said on Tuesday. The survey suggested that it could assist Indian exporters in getting advance payments in rupee from overseas clients and in the longer term promote the domestic currency as an international currency once the rupee settlement mechanism gains traction. In July 2022, the Reserve Bank of India issued a circular permitting an additional arrangement for invoicing, payment, and settlement of exports/imports in Indian rupees (INR) to promote the growth of global trade with emphasis on exports from India and to support the increasing interest in the global trading community in rupee as an international currency. The framework involves invoicing of exports and imports in rupee, market-determined exchange rates between the currencies of the trading partner countries, and settlement through special rup

Global economic factors, recessionary fears led to FPI sell-off: Eco Survey

Global economic factors such as inflationary pressures, monetary tightening by central banks, and recessionary fears in advanced economies exerted pressure on FPIs to sell in Indian markets, Economic Survey 2022-23 said on Tuesday. In addition, investors were sitting on gains from Indian stocks that could be realised to offset losses elsewhere, the survey noted. These factors led to foreign portfolio investors (FPIs) pulling out a net amount of Rs 16,153 crore from the Indian capital markets during April-December FY23 as compared to an outflow of Rs 5,578 crore in the year-ago period, with both equity and debt segments witnessing net outflows. Segment-wise, FPIs made a net withdrawal of Rs 11,421 crore from equity markets and Rs 12,400 crore from debt markets. On the other hand, they invested a net amount of Rs 8,662 crore through debt Voluntary Retention Route (VRR) during the period under review. However, on account of strong macroeconomic fundamentals of the Indian economy and

Finance costs, global demand near-term hurdles for auto sector: Eco Survey

Among structural issues, increase in long-term third-party vehicle insurance premiums has spiked total upfront insurance cost by 10-11%, especially for two-wheelers

PLI scheme to make Indian firms competitive, attract investment: Survey

Benefits of the production linked incentive (PLI) scheme for as many as 14 sectors will help make domestic manufacturers globally competitive, attract investment in cutting-edge technology and make India an integral part of the global value chain, the Economic Survey said on Tuesday. The scheme will benefit the MSME ecosystem in the country, it said. It informed that as of December 31, 2022, 717 applications have been approved under 14 schemes and over 100 MSMEs are among the PLI beneficiaries in sectors such as bulk drugs, medical devices, telecom, white goods and food processing. As per reports of different ministries which are implementing their schemes, about Rs 47,500 crore of actual investment has been made; production/ sales of Rs 3.85 lakh crore of eligible products and employment generation of around 3 lakh has been reported. The government had announced an outlay of Rs 1.97 lakh crore for the Production-Linked Incentive (PLI) schemes for different key sectors, to create .

Eco Survey LIVE: GDP will rise to 8% if global economy recoups, says CEA

Catch all the latest updates on Economic Survey for 2022-23 and Budget 2023-24 here

Demat accounts rise 39% to 106 million in Nov 2022: Economic Survey

The number of demat accounts rose to 10.6 crore in November 2022, a sharp surge of 39 per cent on yearly basis, Economic Survey 2022-23 said on Tuesday. However, the incremental additions of demat accounts have been on a declining trend during FY23 relative to FY22, probably because of the increased volatility in the secondary market and subdued primary market performance, amid prevailing global headwinds during the current financial year, it added. During FY23 (till November 2022), 1.71 crore demat accounts were added as compared to 2.2 crore demat accounts during the year-ago period. As per the survey, the number of demat accounts was at 10.6 crore in FY23 (till November 2022) from 7.66 crore at the end of November 2021, registering a growth of 39 per cent. Market experts attributed the growth in demat to attractive returns from the equity markets, ease of account opening process and increased financial savings. The Indian stock market saw a resilient performance, with the bluec

India set to become one of fastest growing insurance mkts: Economic Survey

Survey says with Ukraine war weighing on Europe, insurance industry growth in emerging markets is likely to outpace that in the developed markets this year, with emerging Asia in the lead

Covid-19 vaccination: India may have won a major battle, says Eco Survey

97% of the country's eligible beneficiaries have been given at least one dose, while 90% have got two doses

Eco Survey paints a bright medium-term outlook after an unpredictable year

It says once the global shocks of the pandemic and 2022's unpleasant spike in commodity prices fade away, the Indian economy is likely to record a faster growth during the rest of this decade

Manufacturing landscape shows uneven growth across categories: Eco Survey

As companies adapt their manufacturing and supply chain strategies to build resilience, India has a unique opportunity to become a global manufacturing hub this decade

Labour markets, employment recover beyond pre-Covid level: Economic Survey

Labour markets and employment recovered beyond pre-Covid level with sustained effort in last few years, including world's largest vaccination drive in India, said the Economic Survey 2022-23. The document tabled in the Parliament on Tuesday said, "Labour markets have recovered beyond pre-Covid levels, in both urban and rural areas, as observed in supply-side and demand-side employment data." Quarterly urban employment data shows progress beyond pre-pandemic levels as the unemployment rate declined from 8.3 per cent in July-September 2019 to 7.2 per cent in July-September 2022. Reflecting rising formalisation of employment, net addition to EPFO payroll is steadily moving upward after swiftly rebounding from Covid-19, with the majority share coming from the youth. The net addition in EPF (employees' provident fund) subscriptions during FY22 was 58.7 per cent higher than in FY21 and 55.7 per cent higher than that in the pre-pandemic year 2019. Net average monthly subscribers added un

Sensex rises 445 pts from day's low to end flat; Adani FPO fully subscribed

CLOSING BELL: Broader markets, too, remained upbeat throughout the day as Nifty MidCap 100 and Nifty SmallCap 100 outperformed benchmark indices to close up to 2 per cent

Rising domestic demand, capital investment to aid growth in FY24: Survey

A slower growth in economic output coupled with increased uncertainty will dampen trade growth

Highway construction up from 6,061 km in FY16 to 10,457 km in FY22: Survey

In FY23 (until October 2022), a total of 4,060 km of NHs and roads were constructed, which was around 91 per cent of the achievement in the corresponding period of the previous financial year

Housing prices beginning to firm up after two-year Covid hiatus: Eco Survey

Housing prices have started to firm up after a two-year COVID lull and unsold inventories have declined on rise in demand, the Economic Survey said on Tuesday, as it anticipated a decline in prices on the back of a cut in import duties on many construction materials. India's residential market has witnessed recovery this fiscal on pent-up demand with increase in housing sales despite impediments like rising interest rates on home loans and appreciation in property prices, said the Survey which was tabled in Parliament. The release of "pent-up demand" was reflected in the housing market, as demand for housing loans picked up, the Survey noted. "Consequently, housing inventories have declined, prices are firming up, and construction of new dwellings is picking up pace and this has stimulated innumerable backward and forward linkages that the construction sector is known to carry," the document said. Housing prices have risen due to an increase in the construction cost amid ...