CSO pegs growth at 8.1 pc
New Delhi: The Central Statistical Organisation (CSO) surpassing the estimates of the Reserve Bank of India has pegged the country's gross domestic product (GDP) growth level in 2005-06 at 8.1 per cent compared to 7.5 per cent in 2004-05.

The RBI had, in its third quarter review of the monetary policy, placed its GDP growth estimates at 7.5-8 per cent, up from 7-7.5 per cent earlier.

According to CSO, the sectors that will push up the growth rate are manufacturing, which the CSO expects to grow at 9.4 per cent (8.1 per cent), agriculture at 2.3 per cent (0.7 per cent), and trade, hotels, transport and communication at 11.1 per cent (10.6 per cent).

While financing, insurance, real estate, and business services are estimated to grow at 9.5 per cent (9.2 per cent), the growth in electricity, gas and water supply sector has been estimated at 5.4 per cent (4.3 per cent).

As per the CSO's advance estimates, the growth in construction segment for 2005-06 is estimated at 12.1 per cent (12.5 per cent).
However, the projection on the mining and quarrying shows a steep decline at one per cent for 2005-06 (5.8 per cent).
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Finance Ministry not in favour of health cess
New Delhi: The finance ministry says it would not like to levy an additional 2 per cent cess as proposed in the draft Pharmaceutical Policy to fund the healthcare needs of the poor in the country.

Officials from North Block say another cess would not go down well as the taxpayer is already burdened with a 2 per cent education cess, a road cess, tobacco cess among others. Accordingly it has asked the health ministry to look into the issue and come up with suggestions.

The health ministry had supported the proposal for levying a health cess put forward by the Department of Chemicals and Petrochemicals.

Currently 0.9 per cent of GDP is being spent on health and as per the National Common Minimum Programme this would have to be raised to 2 to 3 per cent of GDP.
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Nasscom gets Booz Allen to study global engg. services market
Pune: The National Association of Software and Services Companies (Nasscom) has signed up international consulting company Booz Allen Hamilton to conduct a detailed study of the booming engineering services market and chalk out an action plan for India to leverage its skills and get a huge slice of the business.

India's skills in the US$125bn global engineering services market will also take centre stage at Nasscom's 15th annual India leadership event, starting next week at Mumbai.

The Nasscom event will have a special track on the engineering services segment, which will have panel discussions on the current market scenario and what India can do to capitalise on the opportunity.
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