Projecting an 8.7 per cent growth in the current fiscal, the Economic Survey on Thursday said the government should ensure a non-inflationary growth along with speeding up of reforms for sustaining 9 per cent expansion in GDP.

"Maintaining growth rate at 9 per cent will be a challenge and raising it to two digits will be an even greater one," Economic Survey for 2007-08 presented in Parliament said.

The survey, tabled by Finance Minister P Chidambaram in Lok Sabha, said that while the gross domestic product is expected to grow by 8.7 per cent in 2007-08, "this represents a deceleration from the unexpectedly high growth of 9.4 per cent and 9.6 per cent, respectively, in the previous years."

The manufacturing sector to grow at 9.4 per cent in current financial year, lower from 12 per cent in 2006-07, the survey said.

The government projects lower agriculture growth at 2.6 per cent in 2007-08 from 3.8 per cent in 2006-07, and inflation has been projected at 4.4 per cent in 2007-08, says the Economic Survey.

The government has set a target of 9 per cent GDP growth during 11th Five-Year Plan (2007-2012).

Economic Survey 2007-08: Complete Coverage