India is likely to grow at 9% in 2011-12, up from 8.6% in 2010-11, as per the pre-budget economic survey presented by finance minister Pranab Mukherjee in Lok Sabha.

Inflation remains the key concern, or the 'dark cloud' on the Indian economy, the survey says.

“Inflation is clearly a dominant concern. High food prices are driven by demand factors and may stay elevated on West Asia crisis,” the survey underlines. Food inflation, in particular, has continued to be a major worry, even as prices of vegetables, especially onions, have moderated of late.

The survey has pegged fiscal deficit at 4.8% and revenue deficit at 3.8%.

The slowdown in industrial growth is not worrying, the survey says, but it notes that deceleration in industrial output is a cause for concern.

ECONOMIC SURVEY HIGHLIGHTS:

* Economic growth to be faster than ever before in next two decades.

* Need for efficient taxation of goods and services by a new GST regime.

* Improve convergence of social and financial inclusion schemes to check unemployment, poverty and leakages.

* Reform university and higher education; correct demand supply mismatch in job market.

* Meet resource gap in higher education through public private partnership, with regulatory oversight.

* Economy to grow at 8.6 percent in 2010-11 and 9 percent in the next fiscal.

* Gross fiscal deficit stands at 4.8 per cent of GDP in, down from 6.3 per cent last year.

* Inflation expected to be 1.5 percent higher than what it would be if the economy were not on growth path.

* Economy sees broad-based growth; rebound in farm and continued momentum in manufacturing, private services.

* Fundamentals strong with growing savings and investments, rapid rise in exports.

* Industrial output grows by 8.6 percent; manufacturing sector registers 9.1 percent.

* Exports in April-December 2010 up 29.5 percent; imports up 19 percent.

* Trade gap narrowed to USD 82.01 billion in Apr-Dec 2010.

* Food inflation, higher commodity prices and volatility in global commodity markets cause of concern.

* Inflation continues to be high; need to monitor emerging trends in inflation on a sequential monthly basis.

* To check food inflation, the government should improve delivery mechanisms by strengthening institutions and addressing corruption.

* Savings rate has gone up to 33.7 percent, while the investment rate is up at 36.5 percent of GDP.

* Rising food inflation underlines need for larger investment in farming, enroute to 2nd Green Revolution.

* Net bank credit grows by 59 percent.

* Social programme spending stepped up by 5 percentage points of GDP over past 5 years.

* Production of foodgrains estimated at 232.1 mn tonnes.

* Forex reserves estimated at USD 297.3 billion.

* Accelerated investments needed in infrastructure to address delays,cost overruns, regulatory impediments.

* Telecom sector did exceedingly well; role of services sector as the potential growth engine laudable.

* Policies needed to promote new areas such as accounting,legal, tourism, education, financial and other services.