Economy Survey has predicted a nine per cent growth in the next fiscal and said it is poised to clock 8.6 per cent growth in this financial year. The Survey tabled in Parliament by Finance Minister Pranab Mukherjee today expresses concern over inflation and advocates for more monetary tightening by the Reserve Bank for reducing inflationary pressures.

The inflation stood at 8.23 per cent in January this year. The Survey points out that inflation could be 1.5 per cent more in future as India is on a growth path. The Survey says, despite risks of global events like volatility in commodity prices and political turmoil in the West Asia, the economy is set to grow faster and scale greater heights. It says, industrial output grew by 8.6 per cent and is concerned about the fall in factory output in the coming months.

Manufacturing registered 9.1 percent growth and Exports had an impressive growth of 29.5 percent from April to December. The Survey points out that imports have also increased by 19 percent in the same period due to higher prices of crude oil and food grains.

It advocates that the trade gap has narrowed to over 82 billion US dollars in the first nine months of the current fiscal and gross fiscal deficit is at 4.8 per cent which is 1.5 percent less than last fiscal. The Survey says the spending in social sector programmes has increased by five percent of the GDP over past five years.

The production of food grains is estimated at over 232 million tonnes with record production of wheat. It makes a strong case for a second green revolution with technological breakthrough in agriculture sector. The Survey also brings to the fore that there is scope of further improvements in Mahatma Gandhi National Rural employment guarantee scheme for building permanent assets including infrastructure development.

The Survey points out that forex reserves are estimated to be over 297 billion US dollars. This is mainly due to growth in export sector.

The Survey talks about robust growth and steady fiscal consolidation as the hallmark of the Indian Economy with strong fundamentals.

On the reform agenda the Survey calls for better convergence of schemes to avoid duplications and leakage and to ensure that benefits reach to the targeted groups. It also advocates for urgent need to streamline land acquisition and environment clearance for infrastructure projects and huge capacity addition in this vital sector in a time bound manner.

Strongly pushing for a new goods and services tax, the Survey also suggests increasing private public partnerships in infrastructure sector.

Reacting to the Economic Survey, Finance Minister Pranab Mukherjee said, inflation and widening current account deficit remain major areas of concern. He endorsed the Economic Survey's emphasis on the farm and the infrastructure sectors for achieving higher economic growth. Speaking to reporters outside Parliament, he said though there is a variation in index of industrial production in the recent months, it requires substantial investment for the industry to continue to make its contribution to GDP. 

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