Retail inflation during the first month of the current fiscal stood at 2.9 per cent, down from 4.6 per cent a year ago
The projection comes a day before the government is due to unveil its budget for the 2019/20 year.
The Survey, however, cautions that the country might face a challenge from an economic slowdown impacting tax collections amid rising state expenditure on the farm sector
Real gross domestic product growth for the fiscal year started April 1 is projected at 7%, the Finance Ministry said in its annual Economic Survey report
In January-March, annual growth slumped to 5.8%, the slowest pace in 20 quarters.
General fiscal deficit in FY19 expected to be 5.8 per cent of GDP, compared with 6.4 per cent the previous year
Sources said Krishnamurthy Subramanian, the Chief Economic Advisor, may try to give not-to-common ideas on these key indices which are facing challenges
Poonam Gupta, is currently the lead economist for India at World Bank
Subramanian's final day in office