The Chairman Economic Advisory Council to the Prime Minister, Dr C. Rangarajan released the 'Economic Outlook 2011-12'. The council expects the economy to grow at 8.2% in 2011-12. This decision under the purview that agriculture grew at 6.6% in 2010-11 and is projected to grow at 3.0% in 2011-12, Industry grew at 7.9% in 2010-11 and is projected to grow at 7.1% in 2011-12 and Services grew at 9.4% in 2009-10 and is projected to grow at 10.0% in 2011-12.
As per the prevailing global economic and financial situation and it is also expected that it is unlikely that it will improve any further. The projected growth rate of 8.2% is although lower than the previous year but is considered acceptable depending upon the current world situation.
Moreover it is also been addressed that in order to keep the economy growing at 9% it is important to increase fixed investment rate. The investment rate projected at 36.4% in 2010-11 and 36.7% in 2011-12 while the domestic savings rate as ratio of GDP projected at 33.8% in 2010-11 & 34.0% in 2011-12.
The current account deficit is $44.3 billion in 2010-11 and the projected is $54.0 billion in 2011-12 similarly capital flows are at $61.9 billion in 2010-11 and projected at $72.0 billion in 2011-12.
As per the data released the inflation rate projected at 6.5 % in March 2012. Some key areas of concern are also been identified such as convergence of growth rates of states, Current Account Deficit, Power Sector and Food Security.