Economic Survey: 2010-11: Indian economy steady on a 9 per cent growth path

The Indian economy is currently growing at a robust 8.6 per cent and, with a rebound in agriculture, manufacturing and the service sector, the economy is expected to grow at over 9 per cent in the 2011-12 financial year.

Growth in the current year has been broad-based with a rebound in the agriculture sector, which is expected to grow at around 5.4 per cent. Manufacturing and service sector have registered impressive gains recording growth rates of over 9 per cent and near 10 per cent, respectively.

Savings and investment are looking up with the government's finances on the consolidation track while exports are rising, the Economic Survey 2010-11 presented by finance minister Pranab Mukherjee in the Lok Sabha showed.

However, rising inflation, particularly food price inflation, higher commodity prices and volatility in global commodity markets have been causes of concern, the survey pointed out.

Although inflation rate has come down markedly from the start of the fiscal year, there is a need to continuously monitor emerging trends in inflation on a sequential monthly basis, the survey pointed out.

In order to arrest the rising trend in food prices, the survey has suggested a reform of the government's delivery mechanism, including the public distribution system (PDD), by strengthening the institutions and addressing corruption.