Finance Minister Pranab Mukherjee said the economy is expected to grow at 9 per cent in 2012. The growth rate for the current fiscal year was projected at 8.5 per cent.
However, according to government data, India's economy grew a slower-than-expected 8.2 per cent in the October to December quarter from a year earlier.
Presenting the annual Budget 2011-12, the minister also said that the inflation rate would come down during the next fiscal year from the current rate of 8.4 per cent. Admitting that food price inflation, which is currently at 17 per cent, is a major concern for the government.
"This year brought us many challenges as we moved ahead with steady steps on the chosen path of fiscal consolidation and high economic growth," he said.
"We are reaching an end to a remarkable year with high growth and many challenges. Our growth in 2010-11 has been swift and broad-based. Economy is back to pre-crisis growth trajectory," Mukherjee added.
"I do not foresee resources being a major constraint, at least in the medium term," Mukherjee said, referring to the money needed to address the larger agenda of growth, social programmes and infrastructure development.