New Delhi: Enthused by reforms and the strong fundamentals, the Economic Survey on Thursday predicted that India would bounce back to a high nine per cent growth in 2011-12 on the way to becoming world's fastest growing economy in four years.

The document, which assesses the state of the economy, warned that high food prices would rise further over next few months and criticised the food management policies that have led to "unacceptably" high prices of items like sugar.

Food inflation is at present hovering close to 18 per cent.

The pre-budget Survey (2009-10), presented by Finance Minister Pranab Mukherjee in Parliament, also recommended a "gradual rollback" of stimulus measures after assessing the impact on each sector.


Projecting the economic growth to touch up to 8.75 per cent in 2010-11 and nine per cent in the next year, the Survey said: "It is entirely possible for India to move into the rarefied domain of double digit growth and even attempt to don the mantle" of the fastest growing economy in the world within the next four years.

It, however, expressed concern over rising prices, saying that a major concern during 2009-10 was the emergence of high double digit food inflation.

Highlights of Economic Survey 2009-10:



Economy likely to grow by up to 8.75 per cent in 2010-11

Full recovery; return to 9 per cent growth in 2011-12

Broad recovery gives scope for gradual stimulus roll back

High double-digit food inflation in 2009-10 major concern

Signs of food inflation spreading to other sectors

Farm & allied sector production falls 0.2 per cent in 2009-10

Need serious policy initiatives for 4 per cent agriculture growth

Moots direct food subsidy via food coupons to households

Favours making available food in open market

Favours monthly ration coupons usable anywhere for poor

Gross fiscal deficit pegged at 6.5 pc of GDP in 2009-10

India 10th largest gold holding nation at 557.7 tonnes

Exports in April-December 2009 down 20.3 per cent

Imports in April-December 2009 down 23.6 per cent

Trade gap narrowed to USD 76.24 bn in April-December.

32.5 per cent savings & 34.9 per cent investment (of GDP in 2008-09) put

India in league of world's fastest growing nations.

Government initiates steps to boost private investment in agriculture

Wants credit available at reasonable rates on time for private sector to invest in agriculture

Slowdown in infrastructure that began in 2007, arrested

Domestic oil production to rise 11 per cent in 2009-10

Gas output up 52.8 per cent to 50.2 billion cubic meters with RIL starting production

India world's 2nd largest wireless network with 525.1 million mobile users

Virtually every second Indian has access to phone

Auction for 3G spectrum to provide existing and foreign players to bring in new technology and innovations

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