GDP Growth: Quarterly GDP at factor cost at constant (1999-2000) prices for Q3 of 2007-08 is estimated at Rs. 8,24,075 crore, as against Rs. 7,60,386 crore in Q3 of 2006-07, showing a growth rate of 8.4 per cent over the corresponding quarter of previous year. The Economic Survey 2006-07 reiterated the growth figures of 9.2 per cent for the fiscal year ending March 31st 2007.

The Indian Economy continued to robust growth during the second quarter (July-September) of 2007-08, albeit with some moderation. According to the Central Statistical Organization (CSO) real GDP growth moderated to 8.9% during the second quarter of 2007-08 from 10.2% in the corresponding period of 2006-07. Real GDP growth during the first half of 2007-08 was estimated at 9.1% as compared with 9.9% in the corresponding period of 2006-07.

Industrial Performance - Growth in the Index of Industrial Production (IIP) moderated to 9.2% during April-November 2007 from 10.9% during April-November 2006. The manufacturing sector recorded a lower growth of 9.8% during April-November 2007 as compared with 11.8% during April-November 2006.

Foreign Exchange Reserves: India presently has healthy forex reserves of USD 284.90 billion (as on January 18, 2008). The World Bank has also observed that rapid growth of IT services and high remittances coupled with moderate capital inflows and low short term external debt gives the country a further cushion to speculative attacks.

Inflation: Overall inflation, as measured by the aggregate deflator for GDP MP, is projected to decline from 5.6 percent in 2006-07 to 4.1 per cent in 2007-08. Inflation as measured by the Wholesale Price Index (WPI) rose from 4.4 per cent in 2005-06 to 5.4 per cent in 2006-07 and is expected to return to around the 2005-06 rate for the full year 2007-08, based on the 10 months completed.