Growing world economies, rising food demand and expansion of corn for producing bio-fuels has caused food inflation.
Indian Finance Minister P. Chidambaram blamed countries like the US for diverting food grains such as corn for producing bio-fuels, which led for to soaring food grain prices globally.
India banned exports of Edible Oils and even raised rice export prices to control rising prices.
Indian finance minister, Mr. P. Chidambaram presented the budget in the parliament for the fiscal 2008-09.
Highlights of the budgets are:
- Personal income tax exemption hiked to Rs 1.5 lakh
- Senior citizens threshold tax limit increased from Rs 1,95,000 to Rs 2,25,000
- Tax exemption for women increased to Rs 1.8 lakh
Indian Finance Minister P. Chidambaram tabled the Economic survey 2007-08 in the Lok Sabha . Here are the highlights of the survey.
Economic survey 2007-08 highlights
- India needs second green revolution.
- GDP projected to grow 8.7 % in 2007-08, against 9.6% a year ago.
- Fiscal deficit to be kept below 3 percent in 2008-09.