Economic Survey 2013: Ten key takeaways from the monetary and external sector

Here are the ten key takeaways from the Survey:

1) Unhedged foreign currency loans `dangerous gamble’.

2) Need to temper government moves that push up wages.

3) External debt within manageable limits.

4) Rupee very volatile due to high share of FIIs to total capital flows.

5) Vulnerable to 'reversal' and 'sudden stop' of capital, especially in times of stress.

6) Medium term indicates liquidity deficit widening.

7) Seeks RBI stance shift to improve credit.

8) Need to shift financial system towards bonds vs banks.

9) Global economic environment fragile; may disappoint.

10) Banks near limits on infrastructure lending.