State of the economy
The economy has moved decisively to a higher
growth phase. Till a few years ago, there was
still a debate among informed observers about
whether the economy had moved above the 5 to
6 per cent average growth seen since the 1980s.
There is now no doubt that the economy has
moved to a higher growth plane, with growth in
GDP at market prices exceeding 8 per cent in
every year since 2003-04. The projected economic
growth of 8.7 per cent for 2007-08 is fully in line
with this trend. There was an acceleration in
domestic investment and saving rates to drive
growth and provide the resources for meeting the
9 per cent (average) growth target of the Eleventh
Five-Year Plan. Macroeconomic fundamentals
continue to inspire confidence and the investment
climate is full of optimism. Buoyant growth of
government revenues made it possible to maintain
fiscal consolidation as mandated under the Fiscal
Responsibility and Budget Management Act
(FRBMA). The decisive change in growth trend
also means that the economy was, perhaps, not
fully prepared for the different set of challenges
that accompany fast growth. Inflation flared up in
the last half of 2006-07 and was successfully
contained during the current year, despite a global
hardening of commodity prices and an upsurge in
capital inflows. An appreciation of the rupee, a
slowdown in the consumer goods segment of
industry and infrastructure (both physical and
social) constraints, remained of concern. Raising
growth to double digit will therefore require
additional reforms.
formulation and monitoring of economic policies at the macro level inter alia relating to the functioning of Capital Market including Stock Exchanges.
raising of external resources through Official Development Assistance (multilateral and bilateral) and commercial borrowings abroad, foreign investment, husbanding of foreign exchange resources including balance of payment.
production of bank notes and coins of various denominations, postal stationery, postal stamps, etc.
cadre management, career planning and training of the Indian Economic Service (IES).
On the internal front, the cardinal role of DEA relates mainly to formulation of ways and means to raise internal resources through taxation ,market borrowings, regulation of money supply and mobilization of small savings.
ORGANISATIONAL UNITS
Presently, the work of DEA is organised in the following distinct but complementary Divisions/Units ( For Detailed information,click at button) : -
AID, ACCOUNTS & AUDIT DIVISION: This Division is responsible for disbursement of loans and grants from multilateral/ bilateral donor agencies, debt servicing of loans to multilateral/ bilateral donors, accounting of external assistance, export promotion audit and supply of management information to credit Divisions.
ADMINISTRATION DIVISION: All administrative and establishment matters, including protocol, and implementation of Official Language Policy fall within the domain of this Division.
BILATERAL COOPERATION DIVISION : This Division comprises of Colombo Plan, EEC Section, Japan Section and PMU Section. This Division deals with Official Development Assistance from USA and Canada and policy matters relating to exchange control in India.
BUDGET DIVISION: Apart from preparation of Union Budget and other allied issues like market borrowings, accounting and auditing procedures and financial relationship with the State Governments. This Division also deals with mobilization of small savings through the National Savings Organisation (NSO).
CAPITAL MARKET DIVISION: It is primarily responsible for policy issues related to the orderly growth and development of the securities markets (i.e. share, debt and derivatives) and the functioning of Unit Trust of India (UTI) and Securities and Exchange Board of India (SEBI).
ECONOMIC DIVISION : It tenders economic advice to the Government on important policy issues relating to macro management of the economy. All matters connected with Cadre Administration of Indian Economic Service (IES) are handled in IES division.
FINANCE DIVISION: This Division is responsible for tendering of financial advice on all matters involving expenditure of the Department of Economic Affairs and also for preparation of appropriation accounts relating to the grants and appropriations controlled by DEA. The work connected with the Internal Works Study Unit (IWSU) is also handled in this Division.
FOREIGN TRADE DIVISION : This Division renders advice to the Ministry of Commerce, especially from foreign exchange angle, on policies pertaining to Indian foreign trade including matters connected with WTO and various multilateral trade blocks like SAARC, SAFTA, ASEAN etc. Matters connected with CIS countries, Colombo Plan, Indian Aid, African Development Bank and Petroleum (POL) Desk are also handled in this Division.
FUND BANK DIVISION: Matters relating to International Monetary Fund (IMF), International Bank for Reconstruction and Development (IBRD), International Development Asso-ciation (IDA), International Finance Corporation (IFC), Global Environment Facility (GEF) and Multilateral Investment Guarantee Agency (MIGA) are the concern of this Division.
INFRASTRUCTURE DIVISION: Sectoral responsibilities of infrastructure, including Railways, Telecommunications, Roads, Ports, Shipping, Civil Aaviation, Power, Coal, Non-Conventional Energy Resources and Inland Water Transport (IWT) are handled here.
































