Economic Survey: Highlights

· Economy slows down to 8.7% in 2007-08

· Inflation projected at 4.4 pc in 2007-08

· 3 manufacturing sector to grow at 9.4 pc in current financial year, lower from 12 pc in 2006-07

· Lower agriculture growth at 2.6 pc in 2007-08 from 3.8 pc in 2006-07

· Government sets target of 9 pc GDP growth during 11th Five Year Plan (2007-2012)

· Maintaining 9% rate challenging

· Double-digit growth tougher still

· Deceleration this year was expected

· Fundamentals "inspire confidence"

· Investment climate "full of optimism"

· But labour force growing faster than employment growth

· Unemployment rate higher by 1pc in five years to 2005

· Subsidies to increase by Rs 6,550 cr over Budget Estimate

· Budget estimate for subsidies was Rs 51,247 cr

· Glosses over off-Budget subsidies

· Inflation seen at 4.1 pc this year

· Inflation lower than 5.6 pc last year

· Inflation mainly led by primary non-food items

· Fuel and power group prime contributors to inflation