The economic survey which was tabled in the parliament projects a low growth rate of 6.9% for the current financial year. Though the growth rate is much low at present, the survey expects that the economy will achieve higher growth rates of 7.6 % and 8.6% for the next two years.
An interesting background of the slowdown in the economy is that the low growth rate is happening after the economy registered 8.4% in the previous two years.
Another notable feature of the forecast made in the survey is about inflation. The inflation may moderate to 6.5-7.0% by March 2012.
The survey directly mentions the role of political factors in slowing down reforms. “There were also the pressures of democratic politics, which slowed reforms”
The economic survey was tabled in the Parliament before the presentation of the general budget.