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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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