NCAER forecasts GDP growth slowing to 7.7 per cent
New Delhi: The National Council of Applied Economic Research (NCAER) says it sees "a slight deceleration" of economic growth to 7.7 per cent in the current fiscal from 8.1 per cent achieved in fiscal 2005-06, taking into account the Union Budget 2006-07 and announcements of the Foreign Trade Policy and the annual monetary policy.

In its quarterly economic update NCAER said its forecast does not take into account the recent projection of a seven per cent shortfall in the coming monsoon. This would be reflected in the first update of the forecast in August.

The council said exports are expected to remain buoyant but would decline in dollar terms from 24.7 per cent in 2005-06 to 18.9 per cent this year. Similarly, imports growth may also decline from 31.5 per cent to 25.2 per cent during the same period. Prices are expected to rise marginally compared to last year. The council said average inflation is likely to be 4.3 per cent, though inflation would depend on global crude prices and how much of it is passed on to the domestic market. The council has currently factored an 8 per cent rise in domestic crude prices.

It said that fiscal deficit is likely to decline but would be marginally higher than the budget estimate and that the recently announced annual supplement to the trade policy has added to some of the fiscal consolidation problems.
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AT Kearney: India top destination for retailers
New Delhi: According to global consulting firm AT Kearney India has emerged as the most attractive destination for mass merchant and food retailers, outperforming China for the second year in a row.

A T Kearney's Global Retail Development Index (GRDI), which ranks 30 emerging countries based on a set of 25 variables including economic and political risk, retail market attractiveness and retail saturation levels, has retained India's position at the top. The firm says that, "The Indian retail market is gradually but surely opening up, while China's market becomes increasingly saturated."

Raman Mangalorkar, head of consumer and retail practice in India for A T Kearney, said organised retailers together account for less than three per cent of the modern retail market. On new entrants, the report mentioned Wal-Mart's intentions of opening an Indian office for market research, and noted Tesco's entry into the market through a partnership with Home Care Retail Mart, by launching a hypermarket format called Magnet.

AT Kearney also added that Asia had dislodged Eastern Europe as the most attractive region.
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Maharashtra state establishes agency for gas distribution
Mumbai: The Maharashtra Government has established the Maharashtra Industrial Gas Transmission Company (MIGTCL), for gas distribution under the aegis of Maharashtra Industrial Development Corporation.

The gas grid would primarily cater to industrial consumers, according to Hasmukh Shah, chairman, State Advisory Committee for Natural Gas, Maharashtra. At present, Gujarat is the only State in the country having a full-fledged gas grid network of about 450 km.

Some of the players expected to bring gas into the State are GAIL, Reliance and Gujarat State Petronet Ltd.
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Infrastructure sector growth seen at 4.9 pc in 2005-06
New Delhi: The infrastructure sector grew at 4.9 per cent in financial year 2005-06, down 0.9 per cent compared to 5.8 per cent in the financial year 2004-05 largely due to negative growth in petroleum (crude) and slump in petroleum products and finished steel, according to an official release. Cement was the best-performing sector, doubling its growth to 12.3 per cent during the full year period compared to 6.6 last fiscal.

Crude petroleum production registered a negative growth of 5.3 per cent during April-March 2005-06 compared to 1.8 in the corresponding period of 2004-05, the release said. During March 2006, crude production registered a negative growth of 2.4 per cent compared to 1.1 per cent in March 2005.

The petroleum refinery production registered a growth of 2.1 per cent during April-March 2005-06 compared to 4.3 per cent increase in the corresponding period of 2005-06, the release said.
It, however, registered a growth of 9.4 per cent in March 2006 against negative growth of 2.2 per cent in March 2005.

Finished carbon steel production registered a growth of 6.5 per cent during April-March 2005-06 compared to 8.4 per cent in the corresponding period of 2004-05. During March 2006, steel production grew by 17.5 per cent against 17 per cent in the year-ago period. For April-March 2005-06, electricity generation grew by 5.1 per cent, the same as last year.
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