Finance Minister Pranab Mukherjee Thursday 25
Februar, 2010 tabled a cautious but optimistic Economic Survey 2009-10
in Parliament, which predicted 7.2 percent growth for the current fiscal
and a full recovery in 2011-12, while remaining concerned over
inflation and fiscal deficit.
The Survey said Indian economy is well on a recovery track and is expected to expand by 8.25-8.75 percent in 2010-11 and even exceed 9 percent the year after.
Survey Highlights
Growth
● Economy seen growing 8.25-8.75 % in 2010-11
● Economy expected to return to 9% growth in medium term
● India FY11 growth seen 100 bps more than FY10
● Medeum term prospects of economic growth “really strong”
● India could be fastest growing economy in next four years
● Expect GDP growth to breach 9% mark in 2011-12
● Risk of second dip recession in advanced nations
● India seems to be returning to pre-crisis growth rate
● India medium, long-term growth prospects excellent
● No reason why India can’t achieve double-digit growth
● Clear Sign of recovery in industrial output
● Largely contained risk to growth from poor monsoon
The Survey said Indian economy is well on a recovery track and is expected to expand by 8.25-8.75 percent in 2010-11 and even exceed 9 percent the year after.
Survey Highlights
Growth
● Economy seen growing 8.25-8.75 % in 2010-11
● Economy expected to return to 9% growth in medium term
● India FY11 growth seen 100 bps more than FY10
● Medeum term prospects of economic growth “really strong”
● India could be fastest growing economy in next four years
● Expect GDP growth to breach 9% mark in 2011-12
● Risk of second dip recession in advanced nations
● India seems to be returning to pre-crisis growth rate
● India medium, long-term growth prospects excellent
● No reason why India can’t achieve double-digit growth
● Clear Sign of recovery in industrial output
● Largely contained risk to growth from poor monsoon
Food Prices
● Food subsidy must be given directly to households
● Food coupons must replace existing PDS system
● Must identify poor for effective food coupon system
● Possible to switch to food coupons system by 2012
● India has ample stocks of wheat, rice
● Wheat prices may moderate on hope of better harvest
● Vegetable prices started to ease on rabi crop arrival
● Food suibsidy must be given directly to households
● Food coupons must replace existing PDS systems
