Enthused by reforms and the strong fundamentals, the Economic Survey predicted that India would bounce back to a high nine per cent growth in 2011-12 on the way to becoming world’s fastest growing economy in four years.
The document, which assesses the state of the economy, warned that high food prices would rise further over next few months and criticized the food management policies that have led to “unacceptably” high prices of items like sugar.
Food inflation is at present hovering close to 18 per cent.
The pre-budget Survey (2009-10), presented by Finance Minister Pranab Mukherjee in Parliament, also recommended a “gradual rollback” of stimulus measures after assessing the impact on each sector.
Projecting the economic growth to touch up to 8.75 per cent in 2010-11 and nine per cent in the next year, the Survey said: “It is entirely possible for India to move into the rarefied domain of double digit growth and even attempt to don the mantle” of the fastest growing economy in the world within the next four years.
It, however, expressed concern over rising prices, saying that a major concern during 2009-10 was the emergence of high double digit food inflation.