Growth Of Indian Economy To Slow Down - Feb 10, 2009

The government projected the growth of Indian economy to slow down to 7.1 per cent in the current fiscal as compared to 9 per cent in 2007-08.

The Central Statistical Organization (CSO) on 9 February 2009 said that the India''s projected GDP growth for the year ending March 2009 observed at 7.1%, which is the slowest in six years and below the previous year''s 9%. The CSO said manufacturing output growth was estimated at an annual 4.1%, half of the expansion in 2007/08 while farm output is seen at annual 2.6%, much lower than 14.9% growth in last year.

Along with this, the construction growth seen at 6.5% as compared to 10.1% of last year and mining growth at 4.7% as against 3.3% a year ago. However, the Financial along with the insurance, real estate and business services are set to grow by 8.6 per cent against 11.7 per cent. On the other hand, the category of trade as well as the hotels, transport and communication is projected to grow by 10.3 percent against 12.4 per cent and community, social and personal services by 9.3 per cent against 6.8 per cent.

European Currency As Rupee Ends Below 48 -Level For Month - Decd 17, 2008

The Indian rupee extended its gains for second successive day on December 16 to close below 48 level at 47.92 against the greenback for the first time in a month on demand for the local currency on hopes of fresh capital inflows. Traders in foreign exchange said expectations US Federal Reserve cutting the interest rates in the meeting late on Tuesday raised expectations of dollar flowing into the country''s share markets.

In a volatile trade at the Interbank Foreign Exchange (Forex) market, the local unit opened slightly better at 48.00/02. After moving erratically for most part of the day, the rupee touched a high of 47.79 per dollar in the concluding session, helped by a sudden rise in benchmark Sensex. Finally it settled the day at 47.92.

The Indian benchmark Sensex rose nearly 145 points boosting the rupee sentiment.
Weak dollar against basket of currencies also aided the rupee rise. It slipped against both the yen and the euro, striking a two-month low against the single European currency as traders continued to exit long dollar positions due to uncertainty over the fate of US automakers.