The Prime Minister’s Economic Advisory Council today said the economy will grow by 8.5 per cent,up from a projected 8.2 per cent,and inflation will come down from double digits to 6.5 per cent by the end of 2010-11.
The growth projection has been revised upwards on account of prospects of good monsoon,PMEAC Chairman C Rangarajan said while releasing the economic outlook for the current fiscal.
It forecast a growth of 9 per cent for 2011-12.
In February,the Council had projected a growth rate of 8.2 per cent for the current fiscal.
At the same time,it expected prices to moderate on account of good crop and inflation to cool partly due to base effect and drop significantly by March 2011 from over 10.55 per cent now.
Rangarajan was speaking to reporters after presenting the Economic Outlook for 2010-11 to Prime Minister Manmohan Singh.
Following are the highlights of the Economic Outlook 2010-11 released by the Prime Minister’s Economic Advisory Council (PMEAC) today:
*Economy to grow at 8.5 per cent in 2010-11,up from 8.2 per cent projected in February
*Growth to accelerate to 9 per cent in 2011-12
*Farm sector to expand by 4.5 per cent,up from 0.2 per cent in 2009-10
*Industry and services sector growth rates pegged at 9.7 per cent and 8.9 per cent for 2010-11
*Inflation to moderate to 6.5 per cent by March end from 10.5 per cent currently
*Exports to reach USD 216 billion,up from USD 182 billion in previous fiscal
*Imports pegged at USD 354 billion as against USD 300 billion in 2009-10
*Capital inflows to increase to USD 73 billion from USD 53.6 billion in previous fiscal
*Foreign Direct Investment to touch USD 50 billion,up from USD 31.7 billion in 2009-10