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Economic Survey Report (2007 2008): Focus on FDI
May, 26th 2008

 The Economic Survey 2007 - 2008 has been presented at the Lok Sabha session, by the Union Minister of Finance, Mr. P. Chidambaram. Economic surveys are conducted by the Finance Ministry at the end of each fiscal year. The Survey highlighted several aspects such as economic growth, fiscal policies, and proposals for development of the economy. This year the survey had a major focus on Foreign Direct Investments.

The Economic Survey proposed that FDI should be allowed in the retail sector and the foreign companies should be given a part of the equity. FDI up to 100% should be allowed in home appliances, luxury brand chains, semi-durable goods, luxury goods, and consumer durables. The Economic Survey has suggested that 5 - 10 % of divestiture can be carried out for the Non - Navaratna companies.

FDI up to 26% has been proposed for the insurance sector. Foreign Direct Investments of 51% has been proposed for the insurance companies providing rural insurance and up to 100% in the private rural agricultural banking sector. These should also be permitted to spread to small towns in due course.

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