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Macroeconomic and Monetary Deve.: 1st Qrt. Review 2008-09

Highlights of Economic Survey 2007-08

Imp. Features - Union Budget - 2007- 08

Highlights - Union Budget - 2007- 08

 

Macroeconomic and Monetary Deve.: 1st Qrt. Review 2008-09


28.07.2008
Dear Friends,

Good wishes. And the sky has not fallen on our heads.
Inspite of plenty of dark clouds , a ray of silver sun-shine is reflected in the
Macroeconomic and Monetary Developments First Quarter Review 2008-09 released by the Reserve Bank of India today evening.
Full text can be viewed at :http://rbi.org.in/scripts/AnnualPubl...date=7/29/2008

Happy Investments
RAJESH H DHRUVA
------------------------------------------------------------------------
The Reserve Bank today released the document “Macroeconomic and Monetary Developments: First Quarter Review 2008-09” to serve as a backdrop to the First Quarter Review of Annual Policy Statement for 2008-09 being announced on July 29, 2008.

The highlights of this Review are:

The Real Economy
According to the revised estimates released by the Central Statistical Organisation (CSO) in May 2008, the real GDP growth was placed at 9.0 per cent during 2007-08 as compared with 9.6 per cent in 2006-07. The deceleration in growth was on account of industry and services, offset partly by recovery in agriculture.

According to the Fourth Advance Estimates, the foodgrains production during 2007-08 was placed at an all-time high of 230.7 million tonnes, exhibiting an increase of 6.2 per cent over the previous year (217.3 million tonnes) predominantly on account of kharif foodgrains production. Barring sugarcane, all foodgrains and non-foodgrains are estimated to reach an all-time record production during 2007-08.

During April-May 2008 the index of industrial production recorded year-on-year expansion of 5.0 per cent as compared with 10.9 per cent during April-May 2007. The manufacturing sector recorded growth of 5.3 per cent during April-May 2008 (11.8 per cent during April-May 2007), while the electricity sector recorded growth of 1.7 per cent (9.0 per cent during April-May 2007).

The infrastructure sector recorded growth of 3.5 per cent during April-May 2008 (6.9 per cent during April-May 2007), reflecting deceleration in all the sectors, except coal and crude petroleum.

Available information on the leading indicators of services sector activity during 2008-09 so far suggest acceleration in growth in respect of some indicators such as railway revenue earning freight traffic, tourist arrivals and export cargo handled by civil aviation as compared with corresponding period of 2007-08. On the other hand, growth decelerated in respect of cargo handled at major ports, various indicators of civil aviation, excluding export cargo and commercial vehicles production.

Fiscal Situation
Available information on Central Government finances during April-May 2008 indicates that revenue deficit and gross fiscal deficit were higher than a year ago, both in absolute terms and as proportion to budget estimates. Gross primary deficit in April-May 2008 was also higher than a year ago. The widening of fiscal deficit of the Central Government during April-May 2008 was mainly on account of a sharp rise in plan expenditure over April-May 2007. On the other hand, non-plan expenditure was contained mainly due to moderation in the growth of interest payments and major subsidies, and decline in defence expenditure.

Gross and net market borrowings (dated securities and 364-day Treasury Bills) of the Central Government during 2008-09 (up to July 18, 2008) amounted to Rs.77,809 crore and Rs.42,819 crore, respectively, accounting for 44.3 per cent and 43.3 per cent, respectively, of the estimated market borrowings for the year. During the corresponding period of the previous year, gross and net borrowings accounted for 40.5 per cent and 33.5 per cent, respectively.

The cash balance of the Central Government remained in surplus during 2008-09 (up to July 18, 2008). The surplus cash balance of the Central Government as on July 18, 2008 was Rs. 19,767 crore.

During the current year so far (up to July 18, 2008), eight State Governments raised Rs.8,712 crore (14.8 per cent of gross allocation for the year) through auctions with a cut-off yield in the range 8.39-9.81 per cent as compared with Rs.7,153 crore by 13 State Governments (cut-off yield ranging from 8.30-8.57 per cent) during the corresponding period of the previous year.

The average daily utilisation of WMA and overdraft by the States during 2008-09 (up to July 18, 2008) was Rs.351 crore as compared with Rs. 736 crore during the corresponding period of 2007-08.

The average investments by the States in Treasury Bills during 2008-09 (up to July 18, 2008) amounted to Rs. 81,750 crore as compared with Rs. 70,608 crore during the corresponding period of 2007-08.

Monetary and Liquidity Conditions
Growth in broad money (M3), year-on-year (y-o-y), was 20.5 per cent (Rs. 7,04,046 crore) on July 4, 2008 as compared with 21.8 per cent (Rs. 6,17,118 crore) a year ago.

Aggregate deposits of banks, y-o-y, expanded by 20.7 per cent (Rs.6,07,668 crore) on July 4, 2008 as compared with 23.1 per cent (Rs. 5,50,653 crore) a year ago.

Non-food credit by scheduled commercial banks (SCBs) expanded by 25.9 per cent (Rs.4,85,709 crore), y-o-y, as on July 4, 2008 as compared with 24.6 per cent (Rs.3,69,109 crore) a year ago.

Growth in reserve money, y-o-y, was 26.5 per cent on July 18, 2008 as compared with 29.0 per cent a year ago. Adjusted for the first round impact of the hike in the cash reserve ratio, reserve money growth was 18.4 per cent as compared with 21.6 per cent a year ago.

Liquidity conditions continued to be influenced by movements in cash balances of the Central Government and capital flows. The Reserve Bank continued with the policy of active management of liquidity through appropriate use of cash reserve ratio (CRR) and open market operations (OMO), including MSS and LAF and other policy instruments at its command flexibly.

Price Situation
Inflation has emerged as a global phenomenon in recent months.

Headline inflation firmed up further in major economies during the first quarter of 2008-09, reflecting the combined impact of higher food and fuel prices as well as strong demand conditions, especially in emerging markets. Notwithstanding inflation remaining above the targets/comfort zones, the monetary policy responses during the quarter were mixed in view of growth implications of the persistence of financial market turmoil following the US sub-prime crisis.

Global commodity prices firmed up further during the first quarter of 2008-09, led by a sharp increase in the prices of crude oil as well as food and agricultural raw materials. Metal prices, which had increased during 2007-08, witnessed some moderation during the first quarter of 2008-09. International crude oil prices, represented by the West Texas Intermediate (WTI), touched a high of US $ 145.3 a barrel level on July 3, 2008. Food prices firmed up further during the first quarter of 2008-09, led by rice, maize and oilseeds/edible oils, reflecting surging demand (both consumption demand and demand for non-food uses such as bio-fuels production) and low stocks of major crops.

Mirroring inflation trends in many advanced as well as emerging economies, various measures of inflation in India have also risen significantly since the beginning of this calendar year. Inflation based on the wholesale price index (WPI), increased from 7.7 per cent at end-March 2008 to 11.9 per cent by July 12, 2008, reflecting the impact of some pass-through of higher international crude oil prices to domestic prices as well as continued increase in the prices of iron and steel, basic heavy inorganic chemicals, machinery and machinery tools, oilseeds/edible oils/oil cakes and raw cotton on account of strong demand, international commodity price pressures and lower domestic 2007-08 rabi production of oilseeds. The seasonal hardening of vegetables prices as well as increase in prices of textiles has also contributed to inflation during 2008-09 so far.

Primary articles prices, y-o-y, increased by 10.1 per cent on July 12, 2008 on top of 11.1 per cent a year ago (it was 9.7 per cent at end-March 2008), reflecting increase in prices of food articles, especially rice, wheat, fruits and milk, and non-food articles such as oilseeds and raw cotton.

Fuel group inflation increased to 16.9 per cent on July 12, 2008 from 6.8 per cent at end-March 2008 (and a decline of 1.4 per cent a year ago), mainly reflecting the effect of some hikes in the prices of petrol, diesel and LPG in June 2008 as well as continued increase (15-51 per cent) in the prices of freely priced petroleum products such as naphtha, furnace oil, aviation turbine fuel, bitumen and lubricants over end-March 2008.

Manufactured products inflation, year-on-year, rose further to 10.7 per cent on July 12, 2008 from 7.3 per cent at end-March 2008 (and 4.8 per cent a year ago), reflecting increase in the prices of edible oils, oil cakes, textiles, chemicals, basic metals, alloys and products, and machinery and machine tools. Prices of sugar and grain mill products, however, eased somewhat from end-March 2008.

Consumer price inflation increased further during the first quarter of 2008-09 mainly due to increase in food prices and services (represented by the ‘miscellaneous’ group) prices. Various measures of consumer price inflation were placed in the range of 6.8-8.8 per cent during May/June 2008 as compared with 6.0-7.9 per cent in March 2008 and 5.7-7.8 per cent in June 2007.

Financial Markets
Global financial markets witnessed generally uncertain conditions during April-July 2008. The financial market turbulence that had erupted in the US sub-prime mortgage market in mid-2007 gradually deepened towards early 2008. There was a cautious return of investor risk tolerance in the credit markets between mid-March 2008 and end-May 2008. Central banks continued to work together and also individually to improve liquidity conditions in financial markets. Financial markets, however, came under stress again in June 2008 and thereafter.

Indian financial markets remained largely orderly during the first quarter of 2008-09.

Interest rates in the money market mostly remained within the informal corridor set by reverse repo and repo rates during the quarter. Interest rates in the collateralised segment of the money market remained below the call rate during the quarter.

In the foreign exchange market, the Indian rupee generally depreciated against major currencies during the first quarter of 2008-09. The rupee had appreciated during 2007-08.

Yields in the Government securities market hardened during the quarter.

Indian equity markets recovered somewhat during April-May 2008 but declined thereafter in tandem with the trends in major international equity markets as well as edging up of domestic inflation.

The External Economy
India’s balance of payments position remained comfortable during 2007-08. The merchandise trade deficit, on a balance of payments basis, widened from US $ 63.2 billion in 2006-07 to US $ 90.1 billion in 2007-08. As proportion to GDP, the trade deficit increased from 6.9 per cent to 7.7 per cent. Net surplus under invisibles (services, transfers and income taken together) expanded to US $ 72.7 billion in 2007-08 from US $ 53.4 billion in 2006-07. The net invisible surplus offset 80.7 per cent of the trade deficit during 2007-08 as compared with 84.5 per cent during 2006-07.

During 2007-08, the widening of the trade deficit, mainly led by imports, resulted in a widening of current account deficit to US $ 17.4 billion (1.5 per cent of GDP) from US $ 9.8 billion (1.1 per cent of GDP) in 2006-07. The current account deficit was financed by capital flows which remained large during 2007-08.

The strong momentum observed in FDI inflows during the year 2007-08 continued during 2008-09, with inflows during April-May 2008 amounting to US $ 7.7 billion. In respect of FIIs, however, there were net outflows of US $ 5.6 billion up to July 11, 2008. NRI deposits recorded net inflows of US $ 292 million during April-May 2008 as against net outflows of US $ 559 million during April-May 2007.

According to the data released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), India’s merchandise exports posted a growth of 21.7 per cent during April-May 2008 (24.2 per cent during April-May 2007). Imports grew at 31.8 per cent as compared with 37.9 per cent a year ago. Non-oil imports recorded an increase of 24.6 per cent (43.8 per cent a year ago); oil imports increased by 48.6 per cent during April-May 2008 as against 25.7 per cent in April-May 2007. Merchandise trade deficit during April-May 2008 increased to US $ 20.7 billion from US $13.9 billion a year ago.

Foreign exchange reserves increased by US $ 110.5 billion during 2007-08 to US $ 309.7 billion. As on July 18, 2008, India’s foreign exchange reserves were US $ 307.1 billion.

Alpana Killawala
Chief General Manager

Press Release : 2008-2009/119

 

Highlights of Economic Survey 2007-08

Dear Friends


Finance Minister Shri P. Chidambaram has presented Economic survey 2007-08 on 28th Feb.'08 Its highlights are :

1.GROWTH

.01 FY 2007-08 GDP is projected to be USD 1.16 trillion  ; economic growth estimate of 8.7% may be revised upwards ; absolute need of progressive reforms to achieve GDP growth rate  to 10% ; Economy decisively moving to a higher growth phase ; Growth in services sector continues to be broad-based and GDP growth rate during 2004-2007 averages at 9%

.02 Rising rupee and slowdown in consumer demand can slow the growth
.03 High interest rates responsible for slack demand of consumer goods
.04 Investment climate in India is promising and  displays optimism while the  macroeconomic fundamentals show confidence ; Consumption growth slow vs income growth as savings up

2. INFLATION

.01 FY 2007-08 average inflation rate likely at 4.4%  despite high commodity prices ; monetary policy has to manage stress from high FX flows  ; Farm price movement crucial on rising per capita income, falling poverty and Supply management also crucial ;

.02 Global prices having more pronounced impact on local prices

.03 Supply side pressure also seen in infrastructure sector

.04 Prices rose FY08 on build-up of inflationary, demand-supply mismatch

.05 Large capital flows has been putting pressure on liquidity condition

.06 Wheat, pulses, edible oil FY07 shortfall increased demand-supply mismatch
3. The survey can be viewed on Finance Minisry’s website at  :
http://indiabudget.nic.in/es2007-08/esmain.htm

 

Best wishes

RAJESH H DHRUVA

Chief Executive
nribanks.com
Tel. No. : 0091 281 2464099 / 2463367
Cell : 0091 98240 49944.

 

Imp. Features - Union Budget - 2007- 08

[A] Positive Factors:

 

1. Farm Sector Credit to be raised to 125,000/- crs.

2. Infrastructure boosting by way of :

    .01 Dedicated Mutual Fund schemes and

    .02 Utilisation of Foreign Exchange Reserves by way of borrowing from Reserve Bank of India and lending to Infrastructure Companies..

3. World class financial cetre to come up at Bombay.

4. Custom duty on diamonds favorably reduced.

5. Urban infrastructure tax free bonds for urban local institutions.

6. 2, 3 & 4 Star hotels in Delhi area granted tax holidays for 3 years.

7. Promoters allowed raising of capital against their Equity by issue of convertible bonds.

8. Institutions allowed delivery based short selling.

9. Individuals allowed to invest abroad though Mutual funds.

 

[B] Negative Factors:

 

1. The poor man is totally ignored in the budget.

2. For industries also budget has negative factors.

3. IT companies to pay minimum alternative tax of 11.22%.

4. Ordinary investors effected by dividend distribution tax raised from 12.5% to 15%.

5. Property owners effected by payment of service tax of 12.5% on rental income from commercial properties.
6. Corporates in Retail and IT also to feel the brunt of service tax on rent of commercial properties.

.04 Employee stock Options  bought to tax is negative too.

.05 Tax exemption should have been raised to 150,000/-.

.06 Farm Sector not doing good is matter of concern inspite of farm credit of Rs.190,000/- crs. over last 2 years.

.07 No proposal for relief to common man.

.08 Cement price control bad for infrastructure development and speaks petty and mean.

 

Highlights - Union Budget - 2007- 08

  • Dredgers completely exempted from import duty

  • Bio-Diesel fully exempt from excise duty
  • Excise exemption to pipes (more than 200mm diameter)
  • Additional CVD of 4% lifted from crude & refined edible
  • Customs on most chems & plastics dn to 7.5% frm 12.5%
  • Water purification devises fully exempted from excise
  • Excise on parts of footwear reduced to 8% from 16%
  • Corporate income tax remains unchanged
  • Weighted deduction for R&D extended by 5 years
  • Ad valorem excise down to 6% from 8% (petrol & diesel)
  • Excise on pan masala (ex-tobacco) cut to 45% frm 66%
  • Duty on mouth fresheners cut to 45% MOUTH
  • Excise duty on plywood cut to 8% from 16%
  • Zero Excise on biscuits below Rs 50/kg
  • Ad-valorem on petrol & diesel cut from 8%to 6%
  • No excise on instant food mixes
  • General effective customs duty rate reduced to 34.13%
  • Excise on plywood cut to 8% from 16%
  • Effective corporate tax rate at 19.2%
  • Tax concession for Gas networks and navigation
  • No excise on instant food mixes
  • Aircraft imports by non-airlines: Duty at 3%
  • Telecom taxes to be bundled into one rate
  • Excise cut on cement (till Rs 190/bag) to 350/mt
  • Bio-Diesel fully exmpt from Excise Duty
  • Excise on cement (above Rs 190/bag) at Rs 600/mt
  • Service tax exemption on tech biz incubators
  • Differential excise duty on cement
  • Cement excise: Rs.350/tn on Rs.190/bag
  • Duties on agri products cut from 7% to 5%
  • Ad valorem duty on Petrol & Diesel cut to 6%
  • Edible Oil exempt from CVD
  • Cut import duty on medical equipment to 7.5%
  • Watch , Umbrellas duty cut
  • Duty on PTA, DMT, MEG cut to 7.5%
  • Irrigation, Food processing tariffs cut to 5%
  • Import duty of 3% on pvt aircrafts
  • LTCG EXEMPTION TO CONTINUE THIS YEAR
  • DIVIDEND DISTRIBUTION TAX HIKED TO 15%
  • FBT CHANGE: ESOPS TO BE TAXED
  • ATF BENEFIT EXTENDED TO ALL SMALL AIRCRAFT
  • 1% ADDL EDU CESS FOR SECONDARY, HIGHER EDU
  • ESOPS TO ATTRACT FBT
  • EDUCATION CESS HIKED TO 3% FROM 2%
  • BANK CASH TRANSACTION TAX LIMIT RAISED TO RS.50K
  • CAPITAL GAINS BOND TO CONTINUE
  • VC INVST IN BIOTECH, IT, NANO TO GET TAX SOPS
  • MAT EXTENDED TO COS UNDER SEC10A & 10B
  • MAT EXTENDED TO IT COMPANIES
  • 5-YR TAX HOLIDAY FOR 2, 3, 4 STAR HOTELS
  • INCOME TAX: EXEMPTION AT RS.1.45 LK FOR WOMEN
  • INCOME TAX: EXEMPTION RAISED TO RS.1.10 LAKH
  • INCOME TAX EXEMPTION HIKED BY RS 10,000
  • Customs duty on man made yarn & poly fibre cut to 7.5%
  • Cut and polished diamonds duty cut to 3%
  • Coking coal exempt from customs duty
  • Peak Customs duty on non-agro prod cut to 10%
  • Tax as % of GDP at 11.4%
  • Estimates rev deficit at 1.5%; fiscal deficit at 3.3% of GDP
  • Total expenditure at Rs.6.8 lakh cr
  • Revenue deficit 2%, fiscal deficit 3.7%
  • Revenue deficit at 2%; fiscal deficit at 3.7%
  • Revenue deficit to be 2%; fiscal deficit to be 3.7%
  • Introduce Natl level goods & services tax fm Apr 1
  • Losses on CST,VAT Rs5495cr;to be compensated
  • CST rate to be cut to 3%; Rs.5497cr for compensation
  • CST to be phased out
  • VAT revs a success; revs up 24% in '07
  • Centre to give states Rs.142,450 cr to rejig debt
  • Centre to give Rs.1.42 lakh cr to states in '08 taxes
  • Centre to give Rs.1.2 lakh cr to states in '07 taxes
  • Centre to give Rs.1.2 lakh cr to states in '07 taxes
  • Centre to give Rs.1.2 lakh cr to states in '07 taxes
  • Centre to give Rs.1.2 lakh cr to states in '07 taxes
  • State debt consolidated, 20 states restructured debt
  • Rs150cr for Min of Youth for Commonwealth Games
  • Rs.1800cr for pvt cos which regularise the disabled
  • To set up an autonomous debt management office
  • To create 1 lk jobs for physically challenged ppl
  • Int free loan of upto Rs2.5cr for upgradation of ITIs
  • Rs.750cr set aside for loans for ITI upgradation
  • To allocate Rs.750cr for setting up ITIs
  • Mumbai revival report to be made public soon: FM
  • Will make Mumbai a world-class financial city
  • E-Governance expenditure hiked to Rs.719cr
  • E-governance allocation doubled to Rs 700-plus cr
  • Use part of FOREX reserves for infrastructure finance
  • Defence allocation up at Rs.96,000cr
  • Defence Budget hiked by Rs.96000cr
  • Short selling by institutions; settlement by delivery
  • Overseas invst to be allowed by individuals via MFs
  • MFs to be allowed to launch infrastructure funds
  • PAN to become sole identification number
  • PAN mandatory for all security transactions
  • Urge banks to look at credit rating of SMEs
  • To set up mortgage guarantee Cos
  • To ask RRBs to launch branch expansion prog
  • Allocation for tourist infrastructure up at Rs.520cr
  • Coir industry modernisation provision at Rs 22.5 cr
  • Banks to check rating for small Co loans
  • Health insurance allocation for weavers hiked to Rs321cr
  • 100-150 handloom clusters to be taken up in FY'08
  • Allocation to handloom sector hiked to Rs.321cr
  • Rs.425cr allocation for textile parks
  • To increase allocation for textile parks by Rs.425cr
  • Road-rail projs in Bihar, Assam will be nat'l projs
  • Allocation to NHDP hiked frm Rs 9945cr to Rs10667cr
  • To spend Rs.3983cr on rural electrification
  • Pvt investment under NHDP more than Rs 25,000 cr
  • Golden quad project almost complete
  • Allocation of Rs.3983cr for rural electrification
  • Hikes allocation to APDRPs to Rs800cr fm Rs 650 cr
  • APDRPs to cover districts with population >50000
  • 7 UMPPs under review; 2 to be approved by July
  • Central PSUs to invest Rs 1.6 lakh cr this year: FM
  • FDI in April-Jan was $12.5 bn
  • Gross domestic capital formation up 23%
  • Rural landless households covered under AABY
  • Govt to pay 50% premium, states to pay other half
  • Separate window for rural roads under RIDF to remain
  • Death & disability insurance for rural landless households
  • Social Security Scheme for unorganized workers
  • Fertiliser subsidy in FY'07 at Rs.22,450cr
  • To launch weather based crop insurance scheme
  • NABARD to issue rural bonds worth Rs 5,000cr
  • NABARD's rural bonds to get tax exemptions
  • Govt to start weather based crop insurance scheme: FM
  • Subsidy to fertilizer sector hiked to Rs 22452cr
  • India has find alternate method for fertiliser subsidy
  • Training & Visit system for farmers to be revived
  • Wrld Bk loan to TN-Rs2182cr to restore water bodies
  • Rs 22,452cr already spent on fertiliser subsidy: FM
  • World Bk to assist Andhra water bodies restoration
  • To provide additional Rs.1800cr to NABARD
  • Rs.11000cr outlay for irrigation projects
  • Rs 100 cr for New Rainfed Area Dev Prog: FM
  • To start special funds for coffee, spices, rubber
  • New funds for replanting coffee, cashew, coconut: FM
  • Farm institutes, pvt cos to advise on better seeds: FM
  • Pvt Cos invited to submit plans for certified seeds
  • Target for farm credit in '08 at Rs2.25 lk cr vs Rs1.9 lk cr
  • Rs.153cr for high-yielding milch animals scheme
  • Govt concerned about farm productivity: FM
  • Rs 2,25,000 cr credit for farming
  • Farm credit in FY'07 at Rs.1.90 lk cr
  • Farm credit growth doubled in 2 years: FM
  • Initial allocation for NREGS at Rs.12,000cr
  • NREGS to be expanded to 330 districts
  • NRHM allocation up from Rs 8207 cr to Rs 9947cr
  • Scholarship for 9-12th std students to stop dropouts
  • Provision for AIDS control prog up to Rs 969 cr
  • Anti-Aids programme allocation up at Rs.969cr
  • All distt to complete distt health action plans by Mar'07
  • Allocation for sanitation up at Rs.950cr from Rs.720cr
  • Sanitation campaign up from Rs 720 cr to Rs 954cr
  • To lower dropout rate via Nat'l Scholarship Scheme
  • Rs 750cr to fund Nat'l Scholarship Scheme: FM
  • Primary edu allocation up from Rs1837cr to Rs 3794cr
  • Allocation to health hiked by 21.9% to Rs 15291cr
  • 2 lakh new teachers will be appointed next year
  • To hire 2 lk new teachers make 5 lk new classrooms
  • To hire 2 lk more teachers; 5 lk more classrooms
  • Allocation for school education up to Rs.23,142cr
  • Allocation to education hiked by 34.2% to Rs32352cr
  • Education allocation up 34.2%;school education 35%
  • Bharat Nirman allocation up 31.6% to Rs.24600cr
  • Education spend up 44.2% to Rs 32,352 cr
  • GBS for Bharat Nirman hiked to Rs.24,603cr, up 31.6%
  • 7.83 lakh rural houses built upto Dec 2006
  • Average inflation seen between 5.2%-5.4% in '07
  • Committee for forward trading in essential comm
  • 24 lakh hectares under new irrigation projects: FM
  • Agriculture avg growth rate in 2002-07 is 2.3%
  • Bharat Nirman remains cornerstone of govt policy
  • Confident we can moderate inflation trend: FM
  • Committee to study forward trade impact on prices
  • PM has written to all CMs to monitor hoarding
  • Global commodity prices put pressure on inflation
  • To present new proposals on agriculture
  • Bank credit grew 29.6% till February
  • Monetary trends have put pressure on prices: FM
  • Govt committed to monetary stability & inclusive growth
  • Per capita income grew 7.5% last year
  • Agri growth at 2.3%, lower than desired 4%
  • Average growth rate in UPA Govt tenure at 8.2%
  • GDP growth average 8.5%
  • Growth rate of GDP has improved to 9.2%: FM
  • GDP growth seen at 9.2% in 2006-07
  • Garnered additional revenues this fiscal: FM
  • Savings rate at 32.4%: FM
  • Have noticed sharp ups & downs in agriculture
  • Agri must top agenda of policy makers: FM
  • Farm sector avg growth 2.3% in 5 years
   courtesy :  BSE India