Finance Minister Pranab Mukherjee on Thursday has tabled the Economic Survey for 2009-10 that projects India's growth at over 8.25 percent next fiscal and at double-digit rates by 2015 but conveys its concern over rising prices and calls for urgent steps to lower the government's fiscal deficit.

"It is entirely possible for India to move into the rarefied domain of double-digit growth and even don the mantle of the fastest-growing economy in the world within the next four years," said the survey.

"As of now the outlook for inflation is conditioned by supply-side pressures in the near term," said the survey tabled by Finance Minister Pranab Mukherjee in the Lok Sabha, the lower house of parliament, a day ahead of the federal budget.

In a veiled criticism of the manner in which the government has sought to tackle rising prices, the survey also said that in some essential items inflationary expectations may have fanned the price rise as there were ample stocks.

"Making available adequate and timely quantities of these items and at different locations to overcome supply side mismatches is the real challenge," the survey noted.

The annual report card on the state of the Indian economy also said the current rebound called for a gradual withdrawal of the $37-billion stimuli since December 2008 to help the country weather the ills of global slowdown.

At the same time, it said, the export sector needed a further push.
 

Highlights of Economic Survey 2009-10:
- Total water in reservoirs 90.48 billion cubic metres, which is lower than the 10-year average
- Improve food production, productivity and stock management
- Adequate stock of foodgrain to meet requirements under welfare schemes during current fiscal
- Outlook for India's trade sector in 2010 has brightened
- Bank credit to the commercial sector, shows revival since November 2009
- Proposal to double the target of rural houses to 12 million through the Indira Awaas Yojana in the next five years
- Stimulus package major cause for lower indirect receipts
- Employment increases by 500,000 in July-September quarter compared to first quarter of current fiscal
- Core industries, infrastructure services show recovery signs in the middle of overall industrial growth
- Gross domestic product expected to grow 8.25-8.75 percent in 2009-10
- Economic growth during next fiscal may cross 9 percent
- Government should free grain stocks if food prices rise
- Delay in market release of imported sugar led to high prices
- Calibrate exit strategy from fiscal stimulus
- Centre, states need to begin fiscal consolidation, cap debt levels
- Poverty levels too high for growing nation like India
- Food subsidy should be given to households, instead of routing through public distribution system
- Poor families should be given food coupons to buy at discount from any shop
- Reduce excise duty to boost exports
- Liberalise foreign investment norms in education, healthcare sectors
- Sustaining current levels of domestic petroleum prices not viable
- Expenditure restraint can help contain deficit at budgeted levels
- High inflation due to supply-side bottlenecks
- Growth in telecom to continue with monthly additions exceeding 17.6 million connections
- Share of central government expenditure on social services up by 19.46 percent in current fiscal
- Foreign exchange reserves rise to $31.5 billion in current fiscal to $283.5 billion till end December 2009
- Balance of payment situation improves due to surge in capital flows and rise in foreign exchange reserves, accompanied by rupee appreciation.