Economic Survey: India to grow at 9%
New Delhi: The Indian economy is expected to grow at 8.75 to 9.25 per cent in the financial year 2011-12, according to the Economic Survey 2010-11. The Economic Survey 2010-11 was tabled in the Lok Sabha by Finance Minister Pranab Mukherjee on Friday.
According to the Economic Survey there is an urgent need for persistent anti-inflation monetary stand as inflation may stay elevated due to crisis and unrest in West Asia. Food Price and demand pressure are likely drive inflation up.
According to the survey, rising food inflation has underlined a need for larger investment in agriculture.
Savings and investment rates are likely to rise further and the Government is implementing gradual exit from stimulus.
Production of food grains is estimated at 232.1 million tonnes according to the Economic Survey.
According to the Survey, Gross Fiscal Deficit stands at 4.8 per cent of GDP down from 6.3 per cent last year.
The trade gap also narrowed to $ 82.01 billion in April-December 2010.
The social programme spending stepped up by 5 percentage points of GDP over past five years.
Growth broad based with rebound in agriculture, continued momentum in manufacturing and private services.
The report also warned that there has been no significant capacity expansion in core industries.
“Likewise, slow rate of capacity edition in physical infrastructure sector is constricting industrial sector growth. Capacity edition in core sectors and renewal of bottlenecks would spur industrial sector output in the medium to long term,” it said.
The Economic Survey has also suggested various reforms for overall growth of economy. Better convergence of the Schemes to avoid duplications and leakage and to ensure benefits reach to the targeted groups.
Private sector participation in social sectors, such as health and education in the form of public-social-private partnership could be one of the possible alternatives for supplementing the on-going efforts of the Government.
It also underlines the urgent need to streamline land acquisition and environment clearance for infrastructure projects. Bringing parity between the compensation package admissible under the Land Acquisition Act, 1894 and that applicable to land acquisition under the National Highways Act, 1956 is also an important outcome.
The survey has proposed a National Forest Land Bank, with clear paper work and titles to reduce approval time for forest clearance.
The survey also speaks about second Green Revolution with technological break-through in agricultural sector. And a need for prioritisation of targeted development of rain-fed area and effective marketing links be ensured for better returns to the farmers.
There ia a proposal of further improvements in the Mahatma Gandhi National Rural Employment Guarantee Scheme suggested such as shifting to permanent asset building and infrastructure development activities, reducing transaction costs, better monitoring and extension of the scheme to urban areas.