Finance Minister P Chidamabaram presented the Economic Survey 2007-08 in the Lok Sabha on Thursday.

Pushing for reforms, the Economic Survey said inflationary impact of foreign funds flow, a slowdown in the US, an appreciating rupee and sluggish infrastructure sector were the major challenges before the economy that has slowed down to 8.7 per cent in 2007-08.

Highlights
	GDP at 8.7 per cent in 2007-08
	Inflation at 4.1 this fiscal, to be kept below 4.5 in coming fiscal
	Fiscal deficit to be kept below three per cent in 2008-09
	Rupee appreciation a concern
	100% FDI in home appliances, rural agricultural banks
	51% FDI in rural health
	Concern: Labour force growing faster than employment growth
	Challenge: Maintaining 9% GDP growth
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"The new challenge is to maintain growth at these levels, not to speak of raising it further to double digit levels," stated the survey.

Speaking to reporters after tabling the survey, however, the Finance Minister exuded confidence of achieving a nine per cent economic growth and containing inflation in 2008-09 and said this would help ensure overall welfare of the common man.

"With the better targeting of government reserves and increase in quality, we can ensure the overall welfare of the common man in terms of both private consumption and supply of public goods," he said.

"Given the solid foundation of domestic investment and savings, we are confident of meeting the 11th Plan target of nine per cent average growth," he added.

The survey, considered to be a report card of the government, outlined several concerns like impact of US sub-prime crisis, loss of dynamism in agriculture, appreciating rupee eroding India's export competitiveness, deceleration in industrial growth and managing capital inflows.

The survey suggested a slew of reform measures that alone could help raise the growth to an ambitious double-digit level. "Raising growth to double digit... will require additional reforms."

These include opening retail to FDI, hiking FDI in insurance to 49 per cent, allowing 100 per cent FDI in new private rural agricultural banks, selling up to 10 per cent equity of Navratna (cash-rich) PSUs.

"There is an urgent need for a regime that supports predictable user charges, a financial system that allocates risk efficiently...," it said.

The document stated that the recent hike in fuel prices would add 19 basis points to the inflation rate projected at 4.4 per cent for the year 2007-08.

"Of late, the change in the structure of the economy and its more globalised nature has made management of inflation a complex task," it said, adding that the rising capital inflows will require monetary policy to play a more decisive role.