Friday, February 28, 2003, Chandigarh, India
Updated at 3:00 am (IST)

GDP growth pegged lower at 4.4 pc
Tax reforms key to economic growth: Survey
New Delhi, February 27
The prolonged dry spell and the expansive drought conditions last year appears to have had a serious impact on the country’s economic prospects, with the government downgrading the GDP growth projections during 2002-03 to 4.4 per cent, but pinning its hopes on services and industry to perk up the economy.

In graphic: State of the Indian Economy
Economic Survey — highlights
Editorial: Message in Economic Survey
Business page: States’ fiscal deficit rises to 4.6 %
SSI, automobile log growth in exports
Nation page: Aviation sector slowdown to continue

Budget: tax sops on the cards
New Delhi, February 27
Raising the income tax exemption limit to Rs 70,000-80,000 and retaining standard deduction along with tax sops for small savings and housing loans, the General Budget to be presented tomorrow is expected to carry out a “clean up” operation of tax administration, besides measures to spur growth.

Jaswant to present Budget at 11 a.m.
Business page: A look back at Budgets — II
Disinvestment target to be missed: Survey

‘Freeze MSP of wheat, rice’
New Delhi, February 27
The Economic Survey today suggested a freeze in minimum support price (MSP) of wheat and rice and re-orientation of the foodgrain policy, even as it warned that the foodgrain output would fall by 300 lakh tonnes due to drought and asked the government to raise irrigation potential and overhaul the regulatory mechanism in agriculture.

In graphic: Per Capita Income

LPG subsidy to be phased out
New Delhi, February 27
Retail prices of domestic cooking gas (LPG) and kerosene will fluctuate in step with global crude oil prices after adjusting the flat rate of subsidy on the two mass cooking fuels, the pre-Budget Economic Survey said today. “Subsidies on kerosene for Public Distribution System (PDS) and domestic LPG are on a specified flat rate basis, from April 1, 2002, onwards and are borne by the Consolidated Fund of India.

Continue removing capital controls: Survey
New Delhi, February 27
Reposing full confidence that India’s external sector would be able to weather uncertain global situation, the Economic Survey today called for continuation of measured approach towards removing capital controls. “Surging foreign exchange reserves have provided an opportunity towards further relaxation of existing capital controls.

In graphic: Infrastructure performance