Agri sector facing challenges on various fronts

Development of rural roads needs strengthening

Increased thrust on investment and mgmt in irrigation

Need development on marketing infra, storage and warehousing

Increase institutional finance for rural areas

Smart cards in rural areas for better targeting of subsidies

ECO SURVEY: Export sector

To early to predict if export growth turnaround has taken place

Subdued global eco outlook calls for further effort on export front

Fundamental policy changes needed on export front

Govt should continue with reduction in customs and excise duties to make industry competitive

Govt should check the proliferation of SEZs

ECO SURVEY: On industry

Reasonable consensus that Indian industry to face price deflation

Positive signs that Indian industry is moving towards recovery

Sustained FDI inflow, decline in crude prices, input prices, interest rates should help improve PAT margins

ECO SURVEY: FRBM

Center’s fiscal deficit will have to be restored to target of 3 per cent of GDP at the earliest

Govt should examine the possibility of a new target of 0 per cent fiscal deficit on a cyclically adjusted basis

Monetary transmission has been more efficient in money and bond markets

Monetary transmission somewhat sluggish in credit markets

Credit markets suffering from structural rigidity

Structural rigidity making downwards movement of lending rates difficult

Lending rate cuts not keeping pace with current outlook on inflation

ECO SURVEY: On financial markets

Govt should pass Banking Regulation (Amendment) Bill 2005

Lift remaining ban on futures contract to restore price discovery

Bring all financial market regulations under SEBI

Align voting rights in banks with equity holdings

Allow public to hold greater equity in PSU Banks

Link Small saving rates to govt debt instruments, bans deposit rates to similar maturities

Economy showing early signs of turn around

Performance of capital markets showing revival of investor interest domestic, FIIs

ECO SURVEY: On monetary policy

Effort to maintain ample liquidity by RBI might be sowing the seed for next inflationary cycle

Once eco growth picks up, important to roll back excess liquidity

Focus in coming months to have a calibrated approach to use monetary policy for early return to high growth

Constraints in global agri production might worsen supply side concerns in India

Need to address these concerns

Continued food inflation could undermine inclusive growth

ECO SUREVY: On disinvestment

Revitalise disinvestment programme

Govt should plan to generate atleast Rs.25000cr per yer via disinvestment

Gvt should complete the process of selling 5-10 per cent equity in previously identified profit making non navrattnas

List all unlisted PSU and sell a minimum of 10 per cent equity to public

ECO SURVEY: On taxes, 3G

Introduce Income tax Code, for a neutral corporate tax regime

Review and phase out surcharges, cess’ and transaction taxes

CTT, STT, FBT should phased out

Review custom duty exemptions and move to uniform duty structure to eliminate duites

Implementation of GST from April’10

Capital gains on 3G spectrum to be taxed under IT Act

ECO SURVEY: On energy

Decontrol petrol and diesel prices

ECO SURVEY: Others

Imperative to return to FRBM target on fiscal deficit by 2010-11