The Prime Minister’s Economic Advisory Council, PMEAC on Friday said that the economy is poised to grow by 8.5 percent this fiscal and it will clock 9.3 percent growth in 2011-12.Addressing a press conference in New Delhi, the chairman of the advisory council DR. C Rangarajan said that the inflation will be 6.5 percent by the end of this fiscal. This he said is mainly due to prospectus of a good monsoon. He advocated releasing the available food stocks to dampen effects on prices.Dr Rangarajan further said containing inflation and improving farm productivity are some of the major challenges for the economy to grow at 9 percent.The PMEAC chief said that agricultural growth is projected to be around 4.5 per cent. He said that closing the large scale physical infrastructure deficit particularly in power sector also needs to be addressed to sustain growth momentum.The PMEAC chief said that said that the exit from the expansionary fiscal policy is not only feasible but necessary. This he added is mainly possible due to high buoyancy in direct and indirect taxes besides the decisions like decontrolling the petroleum prices and telecom auctions.He pleaded for implementation of goods and services tax on priority and maintained that budget level fiscal and revenue deficit in the comfort zone.Dr. Rangrajan called for rationalization of fertilizer subsidy policy. He said that credit take off has picked up and flow of funds from capital market to commercial sector is quite strong. The panel chief said that investment rate is expected to be 37 percent in this fiscal and savings rate 34 percent.