The Prime Minister’s Economic Advisory Council on Monday projected the economic growth in the country at 8.6 per cent for the current fiscal on the back of rebound in farm output and inflation to come down to 7 per cent by March-end due to declining food prices.
The PMEAC, in its ‘Review of the Economy 2010-11’ report released on Monday, also said the country’s GDP is likely to grow by 9 per cent in 2011-12, back to the high rate it had witnessed before onset of the global economic recession.
The PMEAC further said the overall inflation is expected to be at 7 per cent by March-end and that the rate of price rise in the case of manufactured goods has been low.
Following are the highlights of the ‘Review of the Economy 2010-11’ report of the Prime Minister’s Economic Advisory Council (PMEAC).
* Economy to grow at 8.6% in 2010-11; 9% in 2011-12
* Inflation seen at 7% by March-end
* Agriculture sector projected to grow 5.4% in 2010-11
* Industry to expand at 8.1 pc and services 9.6%
* Fiscal deficit to come down to 5.2% in FY11
* Exports estimated to increase to $230 bn this fiscal
* Current account deficit to be 3% of GDP
* Budgeted fiscal and revenue deficit beyond comfort zone
* Capital inflows projected at $64.6 billion this fiscal
* Investment rate expected to be 37%
* Domestic savings rate expected to be 34%