Following are the highlights of Economic Survey for the fiscal year 2010-11, presented in Parliament on Friday:
* Economy to grow at 8.6 per cent in 2010-11 and 9 per cent in the next fiscal.
* Gross Fiscal Deficit stands at 4.8 per cent of GDP, down from 6.3 per cent last year.
* Inflation expected to be 1.5 per cent higher than what it would be if the economy were not on growth path.
* Economy sees broad-based growth; rebound in farm and continued momentum in manufacturing, private services.
* Fundamentals strong with growing savings and investments, rapid rise in exports.
* Industrial output grows by 8.6 per cent; manufacturing sector registers 9.1 per cent.
* Exports in April-December 2010 up 29.5 per cent; imports up 19 per cent.
* Trade gap narrowed to $ 82.01 billion in April-December 2010.
* Food inflation, higher commodity prices and volatility in global commodity markets cause of concern.
* Inflation continues to be high; need to monitor emerging trends in inflation on a sequential monthly basis.
* To check food inflation, the government should improve delivery mechanisms by strengthening institutions and addressing corruption.
* Savings rate has gone up to 33.7 per cent, while the investment rate is up at 36.5 per cent of GDP.
* Rising food inflation underlines need for larger investment in farming, enroute to Second Green Revolution.
* Net bank credit grows by 59 per cent.
* Social programme spending stepped up by 5 percentage points of GDP over past 5 years.
* Production of foodgrains estimated at 232.1 mn tonnes.
* Forex Reserves estimated at $ 297.3 billion.
* Accelerated investments needed in infrastructure to address delays, cost overruns, regulatory impediments.
* Telecom sector did exceedingly well; role of services sector as the potential growth engine laudable.
* Policies needed to promote new areas such as accounting, legal, tourism, education, financial and other services.
* Economic growth to be faster than ever before in next two decades.
* Need for efficient taxation of goods and services by a new GST regime.
* Improve convergence of social and financial inclusion schemes to check unemployment, poverty and leakages.
* Reform university and higher education; correct demand supply mismatch in job market.
* Meet resource gap in higher education through public private partnership, with regulatory oversight.
Keywords: Economic Survey