By IANS,
New Delhi : Following are the highlights of a review of the Indian economy conducted by the Prime Minister’s Economic Advisory Council headed by C. Rangarajan:
– India’s growth pegged at 7.2 percent for this fiscal
– Economy to grow 8.2 percent and 9 percent over next two years
– Agriculture output to decline 0.2 percent this fiscal
– Industrial production to expand 8.6 percent
– Services sector to grow 8.7 percent
– Food inflation may also push up general price level in 2010-11
– Risk of rise in international commodity prices
– Estimated investment rate for this fiscal pegged at 36.2 percent
– Estimated savings rate pegged at 34.0 percent
– Export recovery slower, projected at $168.7 billion
– Easily possible to cut fiscal deficit by 1-1.5 percent in 2010-11
– Service tax coverage must be expanded
– Timely release of food essential to curb price rise
– Timely imports at early signals of shortfall in production also must
– Wheat output will be almost equal and pulses slightly higher than last year
– Summer rice output lower but winter crop better
– But government wheat and rice stocks to be comfortable
– Agriculture and power two main constraints to growth in medium term
– Formulate clear policy on genetically modified crops
– Important to scale up nuclear power generation