Highlights of Prime Minister’s Economic Advisory Council report

  • Country’s growth pegged at 8.2 percent for 2011-12
  • Inflation to ease to 6.5 percent only by the end of this fiscal
  • Important role for fiscal policy to contain demand pressure
  • RBI will follow tight monetary policy till inflation shows definite signs of decline
  • Agriculture to grow at 3 percent as monsoon to remain more-or-less normal
  • Industry to expand by 7.1 percent, slower than the rate of 7.9 percent last year
  • Services to grow at a faster rate of 10 percent
  • Global economic and financial situation unlikely to improve
  • Important to increase investments if economy is to grow at 9 percent
  • Investment rate projected to rise to 36.7 percent in 2011-12
  • Current account deficit projected at $54 billion or 2.7 percent of GDP
  • Merchandise trade deficit at $154 billion or 7.7 percent of GDP
  • Foreign direct investment set to rise to $35 billion in current fiscal
  • Foreign institutional investor inflows to slip to $14 billion, less than half of last year

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