The Prime Minister's Economic Advisory Council has said that the country's economy is set to grow at 8.5 per cent this fiscal and 9 per cent in 2011-12. It, however, maintains that the global recovery after the financial crisis will be slow. Unveiling the economic outlook for the current fiscal, the Chief of the Panel C Rangarajan said that the annual inflation rate would come down to 6.5 per cent by March next year. He said agriculture was poised to grow at 4.5 per cent on the presumption of a normal monsoon. He said industry was projected to grow at 9.7 per cent in 2010-11 and 10.3 per cent in the next fiscal and services at 8.9 per cent in the current and 9.8 per cent in next fiscal. Rangarajan said that rising domestic savings and investment would prove as the chief engines of growth. The Investment rate is expected at 37 per cent and the domestic savings predicted at 34 per cent in the current financial year. He said capital inflows are projected at $73 billion for 2010-11. He called for taking steps for tightening the monetary policy and added that exit from expansionary fiscal policy is also feasible and necessary. This, he said, is mainly due to buoyancy in direct and indirect tax collections, 3G broadband spectrum auction and decontrolling of petrol prices.