The Economic Survey presented a day before the Budget has projected GDP at 7.6% for FY13 and said growth would pick up from the second quarter of FY 13.
The survey pointed out that there was an urgent need for fiscal consolidation as it would also help in controlling inflation.
The Economic Survey also revealed that the trade deficit of more than 8% of GDP was a sign of growing imbalance.
The Survey also pointed out that high crude prices were a risk to growth and pegged the agricultural growth rate at 2.5%.
The Economic Survey also said there was a need to build foreign exchange reserves when capital flows were strong.
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