The Indian economy is expected to grow at 8.75-9.25% in financial year 2012 according to the Economic Survey for the year 2011-12 announced on Friday.
Robust growth and steady fiscal consolidation have been the hallmark of the Indian economy in the year 2010-11 so far. The growth rate has been 8.6% in 2010-11 and is expected to be around 9% in the next fiscal year. The growth has been broad-based with a rebound in the agriculture sector which is expected to grow around 5.4%. Manufacturing and services sector have registered impressive gains. Savings and investment are looking up while exports are rising. However, food inflation, higher commodity prices and volatility in global commodity markets have been a cause of concern underscoring the need of fiscal consolidation and stronger reserves. In an interview with CNBC-TV18, Siddhartha Sanyal, Chief India Economist, Barclays Capital, Sonal Verma, India Economist, Nomura and Amit Mitra, FICCI, speak about the Economic Survey and give their outlook going forward. Below are excerpts of the interview. Also watch the accompanying videos. Q: Did you get anything different so far? Sanyal: Actually the survey is pretty much on expected line. To some extent, everyone expected this one to be on optimistic assumptions. You can see that in the growth numbers, in the tax revenue numbers as well as in case of the overall fiscal deficit number. Q: Fiscal consolidation plan is on track this financial year. The fact that it is on track is not good enough, when you get too much of one off, isnDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
