The economy has "decidedly taken off" to a new phase of higher growth, the Economic Survey says. It identifies two challenges and three priorities. The challenge is to sustain high growth without running into high inflation. And to ensure that everybody is invited to the party, not just a few.

The survey says that troublesome inflation need not be the price for high growth. The fight against inflation must be calibrated and the supply of staples like rice, wheat, cooking oils and pulses improved through better technology. But the gap between the remunerative price paid to farmers and the fair price to consumers should not be an increase in food subsidy.

The survey says infrastructure is improving and is attracting global money. Merchandise imports, an indicator of over-heating, are within reasonable limits. The survey says there should be no let-up in fiscal deficit control to increase public investment. This is a response to the Planning commission, which had wanted the centre to press the pause button on fiscal deficit control during the early years of the new five-year plan, to finance infrastructure.

The survey has a message for the leftists as well. It says growth for all need not be low growth. Employment has risen to 2.5 percent during this decade. If unemployment is high, it is not because of high growth, but because growth is not high enough.

The Survey says rapid decline in global macroeconomic stability, unstable oil prices and delay in completion of the Doha round are risks, but these are limited at the moment. So overall, the message is Don''t over worry, be happy.

o Economy "decidedly taken off" to higher growth o Challenge is to tame inflation without hurting growth o And ensure that everybody is invited o Inflation need not be the price for high growth o Infrastructure is improving; attracting global money o Merchandise imports do not suggest over-heating o There should be no let-up in fiscal-deficit control o Fiscal deficit should not be expanded to finance infrastructure o Inclusive growth is not low growth o Unemployment is increasing because growth is not high enough o Global issues are a concern, but do not pose a risk