The Prime Minister's Economic Advisory Council (PMEAC) expects the economy to grow by over 7.2 percent during the current fiscal and exceed 8 per cent in 2010-11, thanks to increased economic activity.

"We are making an initial estimate that the economy would grow by 8.2 percent in 2010-11 and by 9 percent in 2011-12," PMEAC chairman C Rangarajan said, releasing the economic outlook.

As regards the current fiscal, he said the growth rate could be more than the 7.2 percent projected by the Central Statistical Organisation (CSO). Today's projection is also higher than the 6.5 percent the PMEAC had forecast in October.

He further suggested that the government should initiate fiscal consolidation measures in the forthcoming budget as the current level of fiscal and revenue deficits are unsustainable.

Click at this link for highlights of the report: http://pib.nic.in/archieve/others/2010/feb/r20100201901.pdf