Macro highlights before RBI reviews Mid-Term Policy

The Reserve Bank of India today released the document `Macroeconomic and Monetary Developments: Mid-Term Review 2007-08` to serve as a backdrop to the Mid-Term Review of the Annual Policy Statement for 2007-08, going to be announced on Oct. 30, 2007.

The highlights of macroeconomic and monetary developments during 2007-08 so far are:

The Real Economy

The Indian economy continued to maintain strong growth momentum during the first quarter of 2007-08, underpinned by sustained performances of the manufacturing and services sectors. According to the estimates released by the Central Statistical Organisation (CSO) in August 2007, real GDP growth was 9.3 % during the first quarter of 2007-08 as compared with 9.6 % during the same period in 2006-07.

The cumulative rainfall during the South-West monsoon season 2007 (June to September) was 5 % above normal as compared with one % below normal during the corresponding period of the previous year. The area coverage of kharif crops has increased during 2007-08 (as on October 12, 2007) with reported sown area of 104.7 % of the normal, which was about 3.1 % higher than the previous year.


During April-August 2007, the index of industrial production rose by 9.8 % as compared with a growth of 11.0 % recorded during the corresponding period of the previous year. The manufacturing sector registered a growth of 10.3 % during April-August 2007 on top of 12.2 % during April-August 2006.


During April-August 2007, the infrastructure sector recorded a growth of 6.6 % as compared with 8.3 % a year ago, with five of the six core infrastructure industries registering a deceleration. The electricity sector was the only sector which recorded a higher growth than a year ago.


For more: Macro highlights before RBI reviews `Mid-Term`policy

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