"The growth slowdown in the last two years was broad based, affecting in particular the industry sector. Inflation too declined during this period, but continued to be above the comfort zone, owing primarily to the elevated level of food inflation", said the Survey for 2013-14 tabled by Finance Minister Arun Jaitley in Parliament on Wednesday.
    
The Survey, released a day ahead of the budget for 2014-15, expects that moderation in inflation will ease the monetary policy stance and revive the confidence of investors.
    
"With the global economy expected to recover moderately, particularly on account of performance in some advanced economies, the economy can look forward to better growth prospects in 2014-15 and beyond," it said.

As regards the downside risks, the Survey lists factors like poor monsoon, external environment and poor investment climate. They can have a bearing on the growth recovery, it added.

After recovering in 2009-10 and 2010-11, GDP growth slowed down to decade's low of 4.5 percent in 2012-13. It picked up marginally to 4.7 percent in 2013-14.
    
The Survey further said the measures taken by the government to improve investment climate and governance could push up growth to 7-8 percent in the coming years.

Economic survey highlights
- India's balance-of-payments position improved dramatically in 2013-14 with the current account deficit (CAD) at USD 32.4 billion (1.7 percent of GDP) as against USD 88.2 billion (4.7 percent of GDP) in 2012-13

- The annual average exchange rate of the rupee went up from 47.92 per dollar in 2011-12 to Rs.54.41 per dollar in 2012-13 and further to Rs.60.50 per dollar in 2013-14

- India's foreign exchange reserves increased from USD 292 billion at end March 2013 to USD 304.2 billion at end March, 2014

- Long-term external debt accounts for 78.2 percent of total external debt at end-December 2013 against 76.1 percent at end-March 2013. Long-term debt at end-December 2013 increased by USD 25.1 billion (8.1 percent) over the level at end-March 2013 while short-term debt declined by USD 4 billion (4.1 percent), reflecting a fall in imports

- Wholesale Price Index inflation fell to three-year low of 5.98 percent during 2013-14

- Consumer Price Inflation also showed signs of moderation

- Both Wholesale and Consumer Price Inflation expected to go downward

- Fiscal consolidations remains imperative for the economy

- Fiscal consolidation recommended through higher tax-GDP ratio then merely reducing the expenditure-GDP ratio

- Proactive policy action helped government remain in fiscal consolidation mode in 2013-14

- Fiscal deficit for 2013-14 contained at 4.5 percent of GDP

- Total outstanding liabilities of the central and state governments decline as a proportion of GDP

- India's balance-of-payments position improved dramatically in 2013-14 with the current account deficit (CAD) at USD 32.4 billion (1.7 percent of GDP) as against USD 88.2 billion (4.7 percent of GDP) in 2012-13

- The annual average exchange rate of the rupee went up from 47.92 per dollar in 2011-12 to Rs.54.41 per dollar in 2012-13 and further to Rs.60.50 per dollar in 2013-14

- India's foreign exchange reserves increased from USD 292 billion at end March 2013 to USD 304.2 billion at end March, 2014

(JPN/Agencies)

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