Following are the highlights of the Economic Outlook 2013-14 released by Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan on Friday:
GDP growth for 2013-14 lowered to 5.3%, from 6.4% in April
Growth likely to pick up in the second half of 2013-14
Agriculture growth pegged at 4.8%, industry at 2.7%
Services growth to decelerate to 6.6%, from 7.% in 2012-13
March-end inflation projected at 5.5%
Current Account Deficit (CAD) main concern, may come down to USD 70 billion or 3.8% of GDP
Trade deficit projected at $185 billion
Gold imports seen at $38 billion
Net capital inflows to come down to USD 61.4 billion from USD 89.4 billion
Rupee at current level is well corrected, will strengthen with improvement in CAD
Containing fiscal deficit at 4.8% of GDP a challenge
Expenditure compression, subsidy restructuring necessary to avoid fiscal slippages
Current monetary policy stance should continue till rupee stabilises
Liberalise FDI norms, resolve tax issues, focus on coal, power sector to promote growth
Domestic savings rate to increase to 31%, from 30.2% in 2012-13
Investment rate to decline to 34.7% of GDP from 35%
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