Highlights of Economic Survey 2009-10

* Economy likely to grow around 8.5% (+/-0.25%) in 2010-11 and with full recovery economic growth expected to return to 9% in 2011-12. The broad based recovery gives scope for gradual stimulus roll back.
* The Economic Survey favoured providing further stimulus for the exports sector, arguing that the recovery prospects in global markets are still fragile. Amid the debate on withdrawal of the stimulus, including speculation of a possible across-the-board roll back of cuts in excise duty and service tax, the document suggested further reduction in excise for export oriented industries.
* Gross fiscal deficit pegged at 6.5% of GDP in 2009-10. However, there is need to start fiscal consolidation beginning in April and medium-term fiscal plan should be a commitment and not a statement of intent.
* With interest rates at historic lows in most advanced economies, surge in capital flows from these countries will have to be monitored and checked if in excess. The current situation can be termed as "impossible trinity" dilemma of policy choice between price stability, exchange rate stability and capital mobility.
* Considering the dimensions of the infrastructure deficit in the country, the Economic Survey called for channelising savings for development of core sectors on a large scale.
* With a view to make food subsidy more effective and direct, the government moots direct food subsidy via monthly food coupons to households.
* High double-digit food inflation in 2009-10 major concern, with signs of food inflation spreading to other sectors, as farm & allied sector production falls 0.2% in 2009-10. The situation demands serious policy initiatives for 4% agriculture growth including attracting private investment.