A flagship annual document of the Ministry of Finance, Government of India, the Economic Survey reviews the developments in the Indian economy over the previous twelve months, summarizes the performance on major development programmes, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term. This document is presented to both houses of Parliament during the Budget Session, tabled a day ahead of the Union Budget.

With detailed statistical data covering all aspects of the economyamacro as well as sectoralathe Survey provides an overview of key issues such as state of the Indian economy; challenges, policy responses, and medium-term outlook; fiscal policy and monetary management; financial intermediation and the role of markets; external sector, balance of payments, and trade; agriculture, industrial development and services sector; energy, infrastructure, and communications; human development, climate change, and public programmes; and India and the global economy. The annual Survey is widely read and used by policymakers, the corporate sector, private analysts and investors, academics, civil society, media, the international stakeholders of Indiaas economy, civil servants at the national and state levels, as well as scholars from around the world.

About the Author:
Ministry of Finance, Goverment of India

Ministry of Finance, Government of India.


Table of Contents:
Volume 1 1. Economic Outlook, Prospects, and Policy Challenges Introduction Macroeconomic Review and Outlook Inflation and Money External Sector Agriculture The Growth-Fiscal Policy Challenge ‘Wiping Every Tear from Every Eye’: The JAM Number Trinity Solution Growth Private and Public Investment The Banking Challenge Manufacturing, Services and the Challenges of ‘Making in India’ The Trade Challenge Climate Change Empowering Women: Unleashing Nari Shakti Cooperative Federalism and the Recommendations of the Fourteenth Finance Commission (FFC) 2. Fiscal Framework Introduction and Summary Background and History Lessons Medium-Term Strategy Short-Term Issues Conclusions 3. ‘Wiping Every Tear from Every Eye’: The JAM Number Trinity Solution Introduction Subsidising Whom? The Case of Kerosene The Case of Food The Possibilities Offered by Cash Transfers The JAM Number Trinity Solution 4. The Investment Climate: Stalled Projects, Debt Overhang and the Equity Puzzle Introduction Rate of Stalling and Stock of Stalled Projects An Analysis of Stalled Projects Balance Sheet Syndrome with Indian Characteristics What is Impact of Balance Sheet Syndrome on Firm Equity? Policy Lessons 5. Credit, Structure and Double Financial Repression: A Diagnosis of the Banking Sector Introduction Financial Repression on the Liability Side Financial Repression on the Assets Side A Comparative Analysis of Banking and Credit Are Public Sector Banks Uniform in Performance? Policy Implications 6. Putting Public Investment on Track: The Rail Route to Higher Growth Introduction Effects of Increasing Public Investment on Overall Output and Private Investment The Case for Public Investment in Railways Policy Recommendations ? Key Takeaways 7. What to Make in India? Manufacturing or Services? Introduction Desirable Features of Sectors That Can Serve as Engines of Structural Transformation The Manufacturing Scorecard The Service Scorecard Summary Scorecards and Conclusions 8. A National Market for Agricultural Commodities ? Some Issues and Way Forward Introduction APMCs Levy Multiple Fees, of Substantial Magnitude, that are Non-transparent, and hence a Source of Political Power Essential Commodity Act, 1955 vs APMC Act Model APMC Act Karnataka Model Inadequacies of Model APMC Act Alternative Ways of Creating National Market for Agricultural Commodities Using Constitutional Provisions to Set Up Common Market 9. From Carbon Subsidy to Carbon Tax: India’s Green Actions Introduction Excise Duty on Petrol and Diesel as an Implicit Carbon Tax How Does India Compare with Other Countries? CO2 Emission Reductions from Petrol and Diesel Taxes and Coal Cess Translating Coal Cess into Carbon Tax Conclusions and Key Messages 10. The Fourteenth Finance Commission (FFC)—Implications for Fiscal Federalism in India? Introduction Major Recommendations of FFC Implications of FFC Recommendations for Fiscal Federalism: A Way Ahead Balancing Fiscal Autonomy and Fiscal Space Caveats and Conclusion Volume 2 1. State of the Economy—An Overview Recent Growth Record Aggregate Demand Factor Shares in GVA Per Capita Income Public Finance Prices and Monetary Management External Sector Outlook for 2015–16 Sectoral Developments 2. Public Finance Fiscal Policy for 2014–15 Non-debt Receipts Tax Revenue Collection Rates Tax Expenditure Non-tax Revenue Non-debt Capital Receipts Trends in Expenditure Plan Expenditure Non-plan Expenditure Subsidies Interest Payment Provisional Outcome in 2014–15 vis-à-vis BE 2014–15 Government Debt Performance of Departmental Enterprises of the Central Government Fiscal Performance of the States Consolidated General Government Outlook 3. Monetary Management and Financial Intermediation Monetary Developments during 2014–15 Trends in Monetary Aggregates Liquidity Management Liquidity Conditions Developments in Government Securities Markets Bank Credit Performance of Scheduled Commercial Banks Financial Inclusion Non-banking Financial Companies Developments in Capital Markets Insurance Sector Pension Sector 4. External Sector Global Economic Environment India’s Merchandise Trade Trade Policy WTO Negotiations and India Balance of Payments Developments Foreign Exchange Reserves Exchange Rate External Debt 5. Prices, Agriculture and Food Management Trends in WPI and CPI Inflation Factors Causing Moderation in Inflation Household Inflation Expectations Agriculture and Food Management Overview of Agricultural Sector Area, Production, and Yield Drivers of Growth Major Schemes of the Government Sustainability and Adaptability Allied Sectors: Animal Husbandry, Dairying, and Fisheries Food Management Agri-marketing Reforms Commodity Futures Market Trade Policy Agriculture Trade Outlook and Challenges Ahead 6. Industrial, Corporate, and Infrastructure Performance IIP-Based Industrial Performance Industrial-Sector Performance Based on Revised GDP Estimates Performance of Eight Core Industries Comparative Position of India and World Manufacturing Corporate-Sector Performance Gross Capital Formation in the Industrial Sector Credit Flow to the Industrial Sector MSME Sector CPSEs FDI Infrastructure Performance—Specific Sectors Power Petroleum and Natural Gas New and Renewable Energy Coal Minerals Railways Roads Civil Aviation Ports Telecommunications Urban Infrastructure 7. Services Sector International Comparison India’s Services Sector Services GDP and Gross Capital Formation State-wise Comparison of Services FDI in India’s Services Sector India’s Services Trade India’s Services Employment Major Services: Overall Performance Major Services: Sector-wise Performance and Some Recent Policies Tourism Shipping Port Services IT and ITeS Research and Development Services Consultancy Services Real Estate and Housing Internal Trade Media and Entertainment Services 8. Climate Change and Sustainable Development Recent Scientific Findings from IPCC Fifth Assessment Report Global GHG Emissions from Major Sectors and Countries India’s Progress in Addressing Climate Change International State of Negotiations: 20th Session of the Conference of Parties to UNFCCC International Climate Finance Flows International Carbon Markets Sustainable Development 9. Social Infrastructure, Employment, and Human Development Educational Challenges Employment Matters Towards a Healthy India Poverty Human Development: International Comparison Fostering Inclusive Growth Demographic Dividend and Related Policy Interventions Trends in India’s Social-Sector Expenditure Conclusion