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Economic Survey outlines 7 per cent growth

     New Delhi: Finance Minister P Chidambaram today presented the Economic Survey for the year 2004-05 projecting a 7 per cent GDP growth in the next fiscal year 2005-06. The survey identified agriculture, infrastructure and employment as the areas for big-ticket public investment and outlined reforms in tax, expenditure and labour laws as a priority in the budget. According to the survey, consistent efforts are needed to attain a sustainable growth of 7-8 per cent per year over a decade to achieve the targets of Common Minimum Programme. It also felt the need of freeing more sectors including retail and encouraging FDI to boost investment. The survey stressed that low interest and inflation rates should be maintained and the whole country should be integrated towards a common market. The fiscal and revenue deficits are not going down and the need of the hour is to cut down wasteful subsidies as well as increase the revenue side by reforming the tax and expenditure system. More services should be brought in the tax net and custom duties should be reorganised to ASEAN levels to sustain and grow in the competitive regional market.

     "Both the Centre and states need to improve their tax administrations to have an impersonal and hassle-free regime, with low compliance cost for honest tax payers and a high risk for the evaders," said the survey. It suggested a stepwise rationalisation of central sales tax to remove tax on inter-state sales. It also outlined the need of restructuring the FDI caps in sectors like coal, mining, insurance, real estate and retail trade. The survey said that growth projection of nearly 7 had surpassed all projections made at the beginning of the year and the current balance of payments was showing an excess of investment over savings. The survey called for a great level of mutual coordination between the states and the centre to achieve effective fiscal consolidation. A multi-pronged strategy needs to be adopted regarding investment ranging from simplifying procedures, relaxing entry-exit barriers to creating infrastructure. Telecom, roads, ports, civil aviation, power, energy are the most vital areas and should be given top priority. The survey asserted that the implementation of VAT across the nation would pave the way for creating an integrated market.

Hillary Clinton meets Manmohan (Go To Top)

     New Delhi: US Senator Hillary Clinton, on a private visit to India, met Prime Minister Dr Manmohan Singh today in the Capital. Hillary is in the country to participate in a two-day world leaders' conclave organised by a media group in New Delhi. Hillary is due to meet Congress president and UPA chairperson Sonia Gandhi, besides senior Opposition leaders. She is also expected to meet top Indian corporate honchos, including Mukesh Ambani and Anand Mahindra.

1000 people airlifted by Army from snow-hit Udhampur (Go To Top)

     Banihal (Srinagar): The Indian Air Force, while continuing with its rescue operations in the snow and avalanche hit Kashmir, rescued 1000 more people from Udhampur district. So far around 225 people have been killed in the state due to avalanches. The rescued people, stranded for the last 10 days, were airlifted from Banihal and Ramban sectors to Udhampur base camp. They were later taken to Srinagar. At least 70 others were also rescued from Nawapachi-Sondar sector of Doda district. Air Commander A.K. Lohia said the rescue operations would continue till the last person was rescued. "There are 1000 stranded people who are being shifted to Srinagar and we will continue with our rescue work until the last passenger is rescued," said Lohia. The IAF has already rescued and airlifted about 20,000 locals and troops, following a spate of avalanches triggered by incessant snowfall. "It was difficult to live in extreme conditions for over 14-15 days. Then the Air force came to our rescue and we reached here," said Shaista Khan, a rescued woman. Villagers have also joined soldiers in hunting for the victims at several places. At some places snow accumulated is around 70 feet deep.

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