A brief on Rangrajan

Committee Report 2011-12

PRESENTED by

NITHIN.K
S4 MBA
JBS
Prime Minister’s Economic Advisory Council
chaired by C. Rangarjan released “Review of
Economy 2010-11” in New Delhi on Monday.

The committee estimated a growth rate of close to

9% in 2011-12.

Rangarajan kept emphasis on consolidation and

implementation of the Goods and Services Tax
withdrawal of the stimulus

Inflation at uncomfortable level- C.Rangarajan.

“Growth rate close to 9%”

Higher farm sector growth make up for the lag in other

sectors

The rebound next fiscal would come about with a slight

refashioning of the GDP components.

Growth rate of each sector.

12
10.3
10 9.6
9.2
8.1
8

6 5.4 2010
2011
4
3

0
farm industries service
Growth rate in last few years

Growth rate
12

10
9.5 9.6 9.3
8 8
6.8 Growth rate
6

0
2005-06 2006-07 2007-08 2008-09 2009-10
Withdrawal of stimulus package

Suggested rolling back of stimulus package and raising

excise duty in the budget proposals.

Fiscal consolidation

FICCI’s comment

Slow down of industrial growth during the next six

months

The food inflation threatened to spill over into the

manufacturing sector.

High demand for wages and salaries

Rising raw material prices were also compressing profits.

Fiscal deficit this fiscal is likely to be lower at 5.2 per
cent of the GDP as against 5.5 per cent estimated
earlier.

However, the council feels that adhering to targets in

later years may be a problem.

As per the Finance Commission's recommendations, the

government will have to bring down the fiscal deficit to
three per cent of the GDP by 2014-15.

Inflation remains at ‘uncomfortably high' levels

Financial inclusion
THANK YOU