Highlights of Prime Minister’s Economic Advisory Council report

October 30, 2011

Country’s growth pegged at 8.2 percent for 2011-12
Inflation to ease to 6.5 percent only by the end of this fiscal
Important role for fiscal policy to contain demand pressure
RBI will follow tight monetary policy till inflation shows definite signs of decline
Agriculture to grow at 3 percent as monsoon to remain more-or-less normal
Industry to expand by 7.1 percent, slower than the rate of 7.9 percent last year
Services to grow at a faster rate of 10 percent
Global economic and financial situation unlikely to improve
Important to increase investments if economy is to grow at 9 percent
Investment rate projected to rise to 36.7 percent in 2011-12
Current account deficit projected at $54 billion or 2.7 percent of GDP
Merchandise trade deficit at $154 billion or 7.7 percent of GDP
Foreign direct investment set to rise to $35 billion in current fiscal
Foreign institutional investor inflows to slip to $14 billion, less than half of last year