Prime minister's Economic Advisory Council (PMEAC), has pegged India's rate of economic growth for the next fiscal to be between 7.5 percent to 8 percent. Releasing the Review of the Economy for 2011-12 in New Delhi, PMEAC Chairman C. Rangarajan said the economy grew at 7.1 percent in 2011-12 and India might as well be able to achieve 9 per cent growth in due course if global economic conditions improve. He also said, the High level of Budget Deficit is a matter of concern. Mr. Rangarajan suggested for drawing up a road map for fiscal consolidation, measures to moderate inflation further and to attract investments in key sectors including infra structure, coal, and Railways. He said, the Indian economy, needs to be fine tuned to contain the Current Account Defecit and be proactive to attract Capital inflows. Mr. Rangarajan also cautioned against excessive appreciation of the Rupee saying it is not good for the economy.

The average GDP growth rate for the farm sector in first half of 2011/12 is 3.7 per cent. The PMEAC said, mining and quarrying sector has shown particular weakness this year while electricity sector has performed well. Performance of Manufacturing and Construction have not been up to the mark. The Growth of GDP in the services sector was 9.6 percent in the first half of 2011/12 and growth in the sector is expected to be strong.