Highlights of economic review by PM’s Economic Advisory Council headed by C. Rangarajan

New Delhi, Feb 19 (Calcutta Tube) 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

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