Following are the
highlights of Economic Survey for the fiscal year 2010-11,
presented in Parliament on February 25, 2011 by the Finance
Minister Mr. Pranab Mukherjee :
● Economy to grow at 8•6% in 2010-11 and 9% in the next
fiscal 2011-12.
● Gross Fiscal Deficit stands at 4•8 per cent of GDP in
2010-11 down from 6•3 per cent last year.
● Agriculture to grow at 5•4% in 2010-11, showing 14•2%
share in real GDP in 2010-11
● Inflation expected to be 1•5% 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 US $ 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 upto 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 2nd 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 US $ 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.
