New Delhi, February 26: The Economic Survey 2010-11, tabled by Finance Minister Pranab Mukherjee in Parliament Friday, indicated that India will continue on the high growth trajectory, but inflation would remain a major area of concern. The Survey pegged India to top 9% growth of GDP in FY12.
Emphasizing on the need for persistent ant-inflationary measures, the Survey found that food prices will drive inflation, which will also be affected by crude rates escalation owing to the uncertainty in the Middle East.
Observing that Indian agriculture is at a “crossroads”, the Economic Survey called for a second Green Revolution with newer technological breakthroughs and higher investment in the sector.
The Survey felt a need to fasten the pace of reform, as well as to deepen capital markets. The government has indicated that it was taking a series of measure for regulatory overhauls to better safeguard the financial sector.
There will be a gradual roll-back of the economic stimulus but outlook for medium term growth looks promising.
-Agencies