India says economy to grow 7-7.5 pct in 2016/17 - report

REUTERS - India expects its economy to grow 7-7.5 percent in the fiscal year to March 2017, the Economic Survey said on Friday, ahead of the presentation of the annual budget by Finance Minister Arun Jaitley on Monday.

The economic survey, the basis for Jaitley's budget for the fiscal year starting April 1, projected India to grow 8 percent in the next couple of years.

The survey was prepared by the finance ministry's chief economic adviser Arvind Subramanian.

Following are the highlights of the report:

FISCAL DEFICIT

* Time is right for a review of medium-term fiscal framework

* 2015/16 fiscal deficit seen at 3.9 percent of GDP seems achievable

* 2016/17 expected to be challenging from fiscal point of view

INFLATION

* Low inflation has taken hold, confidence in price stability has improved* CPI inflation seen around 4.5 to 5 percent in 2016/17

* Expect RBI to meet 5 percent inflation target by March 2017

CURRENT ACCOUNT DEFICIT

* 2016/17 current account deficit seen around 1-1.5 percent of GDP

(Compiled by Sankalp Phartiyal and Tommy Wilkes in NEW DELHI)