GDP growth for 2006-07 revised to 9.4pc
New Delhi: The Central Statistical Organisation (CSO) has revised upwards the overall GDP growth estimate for 2006-07 to 9.4 per cent, from the 9.2 per cent `advance estimate' released on February 7. The growth rate for industry has been reassessed at 10.9 per cent (from the earlier 10 per cent), with these being 11 per cent (11.2 per cent) for services and 2.7 per cent (2.7 per cent) for agriculture. According to the CSO's revised estimates of national income for 2006-07, released here on Thursday, the country's real gross domestic product (GDP) grew by 9.1 per cent during the last quarter of the fiscal just ended. This is on top of the 10 per cent year-on-year growth registered during January-March 2006.

The ratio of the proportion of gross fixed capital formation (GFCF) to GDP at current prices in the January-March 2007 quarter amounted to 30.2 per cent, which is higher than the 28.6 per cent, 29.9 per cent, 29.3 per cent, 28.7 per cent, 26.8 per cent, 29.2 per cent and 27.5 per cent for the preceding seven quarters.

On the other hand, the ratio of private final consumption expenditure (PFCE) to GDP in the latest recorded quarter, at 54.4 per cent, was lower than the corresponding percentages - 56.5, 55.8, 59.5, 56.3, 57.9, 57.7 and 60 — of the earlier quarters. This reveals that a transition is happening from a growth that was till now predominantly consumer-led to one that is increasingly investment-driven.

The earlier growth phase was basically fuelled by cheaper consumer credit and housing loans, and which, by all accounts, seems to be petering out. This has been compensated by higher spending on plant and equipment by companies.
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Cabinet approves Navi Mumbai airport
New Delhi: The Cabinet has approved the construction of the second international airport at Navi Mumbai in Maharashtra.
The Ministry of Civil Aviation will now set up steering committee to oversee the structure and implementation of the project, including aspects like funding and selection of the strategic partner.
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Inflation inches down to 5 pc though price rise on
New Delhi: The wholesale price index-based annual inflation rate for the week ended May 19 fell to 5.06 per cent, near the 5 per cent target set by the Reserve Bank for 2007-08.

Inflation stood at 5.27 per cent for the week ended May 12.

The decline is primarily on account of the base effect, as prices of major commodity groups including primary articles like food continued to increase.
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