New Delhi, Feb 27 (IANS): India's Economic Survey has projected growth at over 8 percent for next fiscal and said inflation was easing, while setting the agenda for "big-bang reforms" to attain double-digit expansion, cut rich-benefiting subsidies and push investments in a clean, green way.

Tabled in parliament Friday by Finance Minister Arun Jaitley and authored by a team led by Chief Economic Advisor Arvind Subramanian, the annual report card on the state of the economy said the growth should now rise further and double-digit expansion was certainly a possibility.

But it also had a caveat. "The growth estimates of over 8 percent for the year is on expectations that the monsoon will be favourable, as it was forecast to be normal, compared to last year," it said, adding that such an expansion was necessary to address poverty.

"Double-digit growth can help in 'wiping every tear from every eyeÂ’ and realising the aspirations of IndiaÂ’s youth," the survey said, indicating this should also be an easier task for the government now with a clear political mandate for reform and a benign external environment.

"Decisive shifts in policies controlled by the Centre combined with a persistent, encompassing, and creative incrementalism in other areas could cumulate to 'Big Bang' reforms", it said, and set the agenda for the finance minister to pursue in his national budget presentation Saturday.

Importantly, it also observed that the current subsidy regime indicates that rich households benefited more from such doles than the poor. Among various examples it dwelt upon for this conclusion, it said that subsidy on electricity can only benefit the relatively rich.

At the same time, the survey said, eliminating or phasing out subsidies was "neither feasible nor desirable" and said the "JAM" trinity -- Jan Dhan Yojana, Aadhar cards and mobile phones -- will allow the government to deliver such doles in a targeted and less-distorted manner.

It said Gross Domestic Product (GDP) growth in 2012-13 was 5.1 percent, which increased to 6.9 percent in 2013-14 and was now expected to further increase to 7.4 percent in 2014-15, as per advance estimates available with the government.

On the intended green actions, the survey said while the shift from a carbon subsidisation regime to one of taxation and from negative pricing on emissions to putting an implicit positive price was welcome, there was still a long way to go on reform of coal and petroleum pricing.

On inflation, the survey said, there has been a fall of over 6 percentage points since 2013, even as the external sector, which includes exports and inflow of foreign funds, was returning to a path of strength and resilience. Industrial growth has also picked up now.

It also had some good news to report on the farm sector. "Foodgrain production for 2014-15 is estimated at 257.07 million tonnes and will exceed that of last year by 8.5 million tonnes."

It also called for three incremental steps to create a national market for farm produce: Removing fruits and vegetables from list of regulated goods, policy support from states to create alternative or special markets in private sector, and liberal policy for foreign investment.

The survey noted with concern the fall in productive investment in India in recent years. It said investment rate over the past years, as measured by gross capital formation (GCF) as a percentage of GDP declined from 38.2 percent in 2011-12 to 32.3 percent in 2013-14.

It also made a case for rationalisation of subsidies and said such doles did not appear to have had a transformative effect on the living standards of the poor. On the fiscal side, it said the government was committed to consolidation with revenue generation a priority.

The survey said a close look at price subsidies, which are estimated at around Rs.378,000 crore, or 4.24 percent of GDP, reveal that they may not be the governmentÂ’s best weapon for fighting poverty.

The survey also dwelt on Prime Minister Narendra Modi's pet project “Make in India” and said this key policy objective can be achieved by deciding what to make, giving priority to services and making some structural transformation in the skill sets of the labour force.

Equally important, it noted, was the removal of distortions that were preventing manufacturing to become an engine of economic growth, such as those in labour markets, capital markets, the land market and lack of sync between need for skilling and comparative advantage of labour force.

Economic Survey Highlights

* Major reform initiatives undertaken in banking, insurance and financial sectors

* National Solar Mission being scaled up five-fold to 100,000 MW

* Clean Energy Cess doubled to Rs.100 per tonne to mop up Rs. 17,000 crore

* Action-oriented policies to bring rapid development to people while purposefully addressing climate change

* Services sector clocks double digit growth of 10.6 percent

* External sector returning to path of strength and resilience

* Reforms recommended of Indian Railways' structure, commercial practices, technology

* Greater public investment in railways to boost growth and manufacturing in India

* Infrastructure growth of eight core industries higher than industrial growth since 2011-12

* Number of macro level and sectoral initiatives undertaken to improve industrial growth

* Government remains committed to fiscal consolidation, enhanced revenue generation a priority

* India needs to create additional fiscal space

* Male literacy at 80.9 percent, female literacy at 64.6 percent

* Need for balance between Make in India and Skilling India; skill development and employment are major challenges

* Food subsidy bill at Rs.1,07,823.75 crore during 2014-15 (upto January), an increase of 20 percent over previous year

* Rationalisation of subsidies and better targeting of beneficiaries will release resources for public investment in agriculture

* Create National Common Market for agricultural commodities

* Revive public investment to improve investment climate

* Inflation showed declining trend during April-December 2014-15, average WPI inflation declined to 3.4 percent against average of six percent during the previous year, WPI food inflation fell to 4.8 percent after high of 9.4 percent in 2013-14, CPI inflation touched all-time low of 5 percent after remaining high at 9-10 percent for last two years

* Government measures to control food inflation and persistent decline in crude prices resulted in declining trend in inflation

* Foodgrain production in 2014-15 estimated at 257.07 million tonnes; will exceed average foodgrain production of last five years by 8.5 million tonnes

* Agriculture and allied sectors contributed 18 percent to GDP

* Fourteenth Finance Commission will enhance fiscal federalism

* Hyper-growth in tech startups

* Rural penetration of IT services to drive Make in India mission

* Electronic visa gives fillip to tourism sector

* Growth rate of over eight percent expected in 2015-16

* Double-digit economic growth trajectory now a possibility

* Political mandate for reform and benign external environment

* Scope for big bang reforms