2. -Economy expected to grow at 8.6 per cent in 2010-11 and 9 percent next fiscal -Agriculture expected to grow at 5.4 per cent in 2010-11 and 3 per cent next fiscal -Industry expected to grow at 8.1 per cent in 2010-11 and 9.2 per cent next fiscal -Services expected to grow at 9.6 per cent in 2010-11 and 10.3 per cent in 2011-12 -Slow recovery in global economic and financial situation
3. -Rising domestic savings and investment chief engines of growth -Investment rate expected to be 37.0 per cent in 2010-11 and 37.5 per cent next fiscal -Domestic savings to be over 34 per cent in 2010-11 and 34.7 per cent next fiscal -Current account deficit pegged at 3.0 percent of GDP in 2010-11 and 2.8 next fiscal -Trade deficit pegged at $132.0 billion in 2010-11 and $151.5 billion next fiscal
4. -Invisibles trade surplus projected at $81.3 billion in 2010-11 and $95.7 billion next fiscal -Capital flows can be readily absorbed by needs of high growing economy -Capital inflows projected at $64.6 billion for 2010-11 and $76.0 billion next fiscal -Accretion to reserves pegged at $12.1 billion in 2010-11 and $20.2 billion next fiscal -Inflation rate projected at 7 per cent by March 2011
5. -The declining trend in food prices will result in lower food inflation -Manufactured goods inflation has remained low -Care has to be taken to ensure manufactured goods inflation remains below 5 percent -Monetary policy exit stimulus and look at fiscal tightening -Current year fiscal adjustment may not be a problem
6. -Fiscal deficit outcome for 2010-11 could be marginally better than budget estimates -Consolidated fiscal deficit is likely to be 7.5-8 per cent of GDP for 2010-11 -Considerable urgency in the implementation of goods and services tax -Budgeted level of fiscal deficit and revenue deficit beyond comfort zone
7. -To sustain 9 per cent growth, steps required are: a) Contain inflation by policies and supply side management b) Step up pace of infrastructure creation c) Continue efforts to contain current account deficit d) Pay greater attention to agriculture