Highlights of the PMEAC review

The Prime Minister's economic advisory panel today projected 7.5 - 8% growth rate for the next fiscal and said the country can achieve a higher economic expansion if the global environment turns favourable.

Following are the highlights of the Review of Economy, 2011-12, released by the Chairman of Economic Advisory Council to the Prime Minister, C Rangarajan, today:

• Economy to grow by 7.5 - 8% in 2012-13
• Growth rate estimated at 7.1% in 2011-12
• Inflation to ease to 5-6% in next fiscal
• Keep vigil on food prices, farm output, exchange rate
• Adjustments of petrol prices needed to cut subsidy
• Fiscal deficit a matter of concern, road map required
• Current account deficit to be 3% of GDP
• Global economic condition to remain under pressure
• Farm sector growth likely to be 3% in 2011-12
• Mining to report negative growth in current fiscal