New Delhi, July 2 (IANS) Salient features of a wish list in the Economic Survey for 2008-09 released by Finance Minister Pranab Mukherjee in parliament Thursday:

- Cut fuel, food and fertiliser subsidy leakages

- Raise foreign investment cap in insurance to 49 percent

- Allow 100 percent foreign investment in health, weather insurance

- Raise foreign investment cap in defence production to 49 percent and in high tech defence to 100 percent

- Raise Rs.25,000 crore from divestment every year

- Sell 5-10 percent in profitable non-Navratnas

- List unlisted state-owned firms, divest at least 10 percent equity

- Auction loss-making state-owned firms

- Rationalise dividend distribution tax to avoid double taxation

- Review customs duty exemptions

- Remove fringe benefit tax

- Remove commodity and security transaction taxes

- Limit subsidy on cooking gas to six-eight cylinders per household

- Kerosene subsidy only for non-electrified, non-cylinder homes

- Introduce new income tax code

- Provide fertiliser subsidy directly to farmers

- Target zero fiscal deficit

- Eliminate inverted duty structure

- Convert specific textile taxes to ad valorem

- Lift price control on all drugs except essentials

- Roll back excess liquidity once growth picks up

- Decontrol sugar and insurance industries

- Auction spectrum and make it freely tradable

Taking stock of the country's economic condition, the survey said India could grow by around 7.75 percent in 2009-10 if the US economy "bottoms out" by September.

Among other observations it made on the economy are:

- Economic growth decelerates to 6.7 percent in 2008-09

- Per capita growth at 4.6 percent

- Agricultural growth falls to 1.6 percent from 4.9 percent in 2007-08

- Manufacturing sector grows at 2.4 percent

- Ratio of fixed investment to GDP increases to 32.2 percent

- Fiscal deficit stands at 6.2 percent

- Merchandise export grows at 3.6 percent in dollar terms

- Overall import growth at 14.4 percent

- Social, agriculture and infrastructure sectors need boost

- Rural demand still strong.

Over 275,000 schools opened under flagship scheme: Economic Survey 

New Delhi, July 2 (IANS) India opened 276,903 new schools and appointed 966,000 teachers as part of its flagship Sarva Shiksha Abhiyan (SSA) programme, the Economic Survey for 2008-09 revealed Thursday.

The survey, which was tabled in parliament, stated that "achievements of SSA till December 2008 are opening of 276,903 new schools, construction of 225,383 school buildings, construction of 918,981 additional classrooms, 182,019 drinking water facilities, construction of 251,023 toilets, supply of free textbooks to 8.4 crore (84 million) children, appointment of 9.66 lakh (966,000) teachers and in-service training for 23.82 lakh (2.38 million) teachers."

"There has been a significant reduction in the number of out-of-school children on account of SSA interventions," the survey mentioned without giving further details.

Talking about the right to education up to 14 years as a fundamental right, the economic survey said the 86th amendment in 2002 led to the insertion of a new article 21-A that made free and compulsory education to all children between six and 14 years of age a fundamental right.

"A suitable follow up legislation is necessary to give effect to the 86th constitutional amendment," it added.

The survey said there is a substantial growth in secondary and higher education sphere.

The number of secondary and higher secondary schools has increased from 7,146 in 1950-51 to 168,900 in 2006-07. Similarly the total enrolment has increased from 1.5 million in 1950 to 39.44 million in 2006-07.

The survey highlighted that a new centrally sponsored scheme to set up girls hostel in about 3,500 backward blocks has been launched. Priority is being given to girls belonging to Scheduled Castes and Scheduled Tribes.

Stressing on the expansion of higher education, the survey said six new Indian Institutes of Technology (IITs), one each in Bihar, Andhra Pradesh, Rajasthan, Orissa, Gujarat and Punjab have been set up during 2008-09. Classes have resumed from last academic session.

One Indian Institute of Management - the Rajiv Gandhi Indian Institute of Management (RGIIM) at Shillong - started functioning from the academic session 2008-09.

Two new Indian Institutes of Science Education & Research have been set up at Bhopal and Thiruvananthapuram.

The government has also started new scholarship schemes for both higher secondary and under graduate level, the survey said.

The Economic Survey also shows that the proposal for the third phase of expansion of the Integrated Child Health Development Scheme (ICDS) for 792 additional projects, 213,000 additional Anganwadi Centres (AWCs) and 77,102 mini-AWCs and a proposal for 20,000 AWCs on demand has also been approved in October 2008.

This would take the total number of AWCs to 1.4 million across the country with special focus on coverage of backward population.

Economic Survey calls for multi-format retailing 

New Delhi, July 2 (IANS) The Economic Survey for 2008-09 Finance Minister Pranab Mukherjee tabled in parliament Thursday has advocated sweeping policy changes like foreign investment in multi-brand retailing and higher foreign stake in insurance companies.

The survey report card suggested the cap on foreign equity in insurance sector be raised to 49 percent from 26 percent currently.

According to it, the limit of foreign equity can even be raised to 100 in case of health and weather insurance. (Weather insurance products are aimed at enhancing the risk-taking capacity of farmers, banks, micro-finance lenders and agro-based industries).

"This may help dispel fears of foreign equity in insurance," the survey said.

In the area of external reforms, the survey favoured foreign investment in multi-format retailing starting with food despite opposition to the idea.

"Foreign direct investment in multi-format retailing should start with food," it said, suggesting that for five years these companies must also have wholesale outlets for small and unorganised retailers.

Other major initiative suggested by the annual survey was allowing foreign equity in the defence sector up to 49 percent.

The survey added that this limit can be stretched to 100 percent in the case of high technology and strategic defence goods, services and systems that can help eliminate import dependence.

The survey has also called for decontrolling sugar, fertilizer and drug prices.

However, in the case of life-saving drugs that have less than five producers, the prices should remain under government control, it said.

The survey also suggested the passage of several bills including the Pension Fund Regulatory and Development Authority Bill, Insurance Bill and Forward Contract Bill.

However, for real estate and housing regulation, the survey said it should be kept outside the purview of the central government and stay under the state governments' purview.

It said there should be a single regulatory agency for the transport sector including highways, railways, ports and airports, and it should have members from the sub-sectors.

Regarding railways, the survey called for the entry of private companies into passenger train operations and railway services to tourist destinations.

The survey also called for a new bankruptcy law.

Exports outlook for 2009 not encouraging: Economic Survey 

New Delhi, July 2 (IANS) Indian exports could continue to remain subdued this year amid a dismal outlook for the trade sector and world trade volume output set to decline by 11 percent, the Economic Survey for 2008-09 released by the government Thursday said.

Citing recent International Monetary Fund (IMF) projections of a negative growth of 1.3 percent in world output and falling import demand from major trading partners, the survey said: "India's export of goods and services is expected to be impacted."

India's merchandise exports registered a decline for the second straight month in May with the value of shipments 29.2 percent lower at $11.01 billion compared to the $15.55 billion earned the same month last year.

Merchandise exports had dipped 33.2 percent to $10.74 billion in April, as per data on foreign trade released Wednesday by the commerce and industry ministry.

A revival in exports was expected in 2010 as the IMF projected the world trade volume to grow by 0.6 percent and the world output by 1.9 percent, the survey added.

It said a substantial fall in petroleum and commodities prices could have a positive impact on the import and industrial sector.

The survey also suggested that the government avoid protectionist measures and instead bring reforms to the sector.

"Besides short-term relief measures and stimulus packages, some fundamental policy changes are needed," the survey said.

Among suggestions to boost the trade sector, the survey proposed:

- Continuation of the reduction in customs and excise duty

- Streamlining of existing export promotion schemes

- Giving special attention to export infrastructure

- Rationalisation of port service charges

- Weeding out unnecessary customs duty exemptions

- Checking proliferation of special economic zones

Economic Survey calls for new investment environment 

New Delhi, July 2 (IANS) After the high growth cycle that followed the economic reforms of 1990s, India should now bring in sweeping changes in its investment climate for the next stage of growth, the Economic Survey for 2008-09 released here Thursday said.

"The reforms of the 1990s created a competitive environment in which Indian entrepreneurship could flourish. However, there is a perception among financial and other investors that the government has been slow on policy reforms," the survey, tabled by Finance Minister Pranab Mukherjee in parliament, stated.

"An economy where the industrial growth has been steadily declining for nearly eight quarters over 2007-08 and 2008-09 and with the revival still uncertain, policy interventions are necessary," it said.

The survey advocated for raising the foreign investment cap in the insurance sector to 100 percent in a special category of companies that provide "all types" of insurance services to rural residents, including agriculture related activities.

It further called for raising the foreign direct investment (FDI) cap to 49 percent across the board in the insurance sector.

Currently, only 26 percent FDI is allowed in insurance companies.

The survey also favoured upping the FDI limit in the defence sector from 26 to 49 percent and to 100 percent in "high technology, strategic defence goods, services and systems that can help eliminate import dependencies".

Among other reforms, the survey called for new bankruptcy law to ensure speedy and effective bankruptcy, open access to local loop for providing broadband connectivity in rural areas, a single regulatory body for all means of transport including highways, railways, airports and ports, and limiting price control in pharma to only essential drugs.

Shortage of 28,000 health centres in India: Economic Survey 

New Delhi, July 2 (IANS) There has been an improvement in the health sector but India faces a shortage of over 28,000 health centres, the Economic Survey 2008-09 said Thursday.

"There is a shortage of 20,855 sub centres, 4,833 primary health centres (PHCs) and 2,525 community health centres (CHCs) as per the 2001 population norm," the survey said.

"Further, 34 percent of the existing health infrastructure is in rented buildings. Poor upkeep and maintenance, and high absenteeism of manpower in rural areas are the main problems in the health delivery system in the public sector," it added.

Currently there are 171,687 health centres in India and the number of dispensaries and hospitals is 33,855. While there are 1.5 million nurses in the country, the doctors in the modern system of medicine are 84,852.

The survey said the National Rural Health Mission (NRHM) seeks to strengthen the public health delivery system at all levels. It said as part of the NRHM, 649,000 health workers in rural areas have been selected, of which 563,000 have been given orientation training.

It said strengthening of the PHCs for round the clock services is a priority of the NRHM. "Of the 22,370 PHCs in the country, only 1,263 of them were working 24x7 on March 31, 2005 (before the NRHM). The number of 24x7 PHCs today, as reported by the states, is 7,212, signifying a big leap forward in getting patients to the government system."

Underlining the achievement of the government, the survey said over 159 million women have been brought under the Janani Suraksha Yojana for institutional deliveries in the last three years.

Indian Public Health (IPH) Standards have been finalised and a first grant of Rs.2 million was made available to all the district hospitals of the country to improve their basic services. So far 243 Mobile Medical Units are operational in the states, the survey informed.

The survey also highlights the achievement in AIDS control. It said the health ministry is providing anti-retro viral treatment to more than 217,000 HIV patients.

IANS