Annual Policy Statement for the Year 2007-08

*Real gross domestic product (GDP) growth for 2006-07 was placed at 9.2 percent in the advance estimates of the Central Statistical Organisation (CSO) released in February 2007, over and above 9.0 per cent in 2005-06. *Industrial activity expanded strongly, with real GDP originating in industry estimated to have risen by 10.2 per cent in 2006-07 as compared with 8.0 per cent in the previous year. *Money supply (M3), on a year-on-year basis, increased by 20.8 per cent (Rs.5,67,372 crore) in 2006-07 as compared with 17.0 per cent (Rs.3,96,881 crore) in 2005-06. Bank credit to the commercial sector increased by 25.4 per cent (Rs.4,30,287 crore) as compared with the increase of 27.2 per cent (Rs.3,61,746 crore) a year ago. *As on April 7, 2007 inflation stood at 6.1 per cent as against 3.8 per cent a year ago. On an average basis, annual inflation increased from 4.4 per cent in 2005-06 to 5.4 per cent in 2006-07.