VARIABLES	LATEST FIGURES AVAILABLE
INFLATION RATE (WPI)	6.72 % in Dec 2004
INFLATION RATE (CPI)	4.57 %in Oct 2004
GROWTH RATE OF M3	13.6% in Dec 2004
PRMIE LENDING RATE	10.25-10.75% in Dec 2004
Re/$ EXCHANGE RATE	43.7 in Dec 2004
FOREX RESERVES	$ 122.32 billion in November 2004
INDEX OF INDUSTRIAL PRODUCTION (IIP)	7.9 % in Nov 2004
GROWTH RATE OF EXPORTS	25.9 % in Nov 2004
GROWTH RATE OF IMPORTS	43.12% in Nov 2004

INFLATION : Inflation based on WPI has fallen owing to fall in prices of fruits & vegetables & decline in fuel prices. This fall is from above 7% until Nov to 6.4% in last week of Dec 2004. The fall in prices were witnessed as a result of rising agricultural & industrial out put as well as growth of Money Supply. CPI inflation rate also dropped marginally to 4.57% in Oct 2004.

MONEY SUPPLY : Money Supply growth was13.6% as on Dec 10th 2004. while it was 14.1% in the month of November. There has been an increase in foreign exchange reserves in the economy but RBI has intervened through its monetary measures and brought down Money Supply growth to its targeted level. Also higher interest rate might have and will contribute to a slight decline in Money Supply. INTEREST RATES : Interest rates saw and upward pressure primarily due to a hike in international interest rates and high inflation rates. Rise in lending and deposit rates by various banks, an increase in short call money rates(6.25%) too added to an upward pressure.

INDEX OF INDUSTRIAL PRODUCTION : Despite good performance in the manufacturing sector, Indian industry slowed down to 7.9% in November 2004 as against 8.2% in the same month of 2003. Manufacturing sector, having a weight age of over three-fourth in the IIP, grew by 8.8% in November compared to 8.9%. Acording to use-based classification, consumer goods registered a growth of 11.4%. Basic goods sector rose at 6.7% in November 2004 over 5.7% in November 2003. The cumulative growth in the April-November period, however, showed a marked recovery at 8.4% compared to 6.4% in the corresponding period of 2003. In the consumer non-durable segment, in November the growth was 11.4% compared to a meagre 3.7% in the year ago month while the growth in the first eight months stood at 8.8 % over 7.8 %. Capital goods dipped at 10.3% over 12.7% in the same month previous year. Intermediate goods also slowed down at 4.7% in the month under consideration over 11.3% in November 2003.

EXCHANGE RATE : Re/ US $ Exchange Rate saw an appreciation domestic currency dipped below 44 in Dec 2004. The prime reason for such a phenomenon continues to be foreign exchange inflows and weakening dollar internationally. US $ has depreciated to a record low against Euro and a four year low against Yen in international currency market. But given the expected rise in both trade deficit and interest rates, one can't predict a further fall in exchange rate. FII Inflows and international value of the US $ against major currencies too will have a larger impact on exchange rate.

FOREIGN EXCHANGE RESERVES : Foreign Exchange Reserves touched US $ 126.9 billions in Dec 2004. Huge FII inflows and revaluation of other currencies has led to sharp increase in foreign currency assets. Also, a massive increase in bullion prices which increased gold prices contributed significantly to the rise in value of foreign exchange reserves. However, the trend may not continue, because of hardening of international interest rates and widening domestic trade deficit.

EXPORTS AND IMPORTS : There has been a recovery in external trade in Nov from a low level in October with exports growth touching 25.9 % and imports at 43.12 %. However, trade deficit widened to US $ 17.8 billion compared to $10.2 billion same period last year.

SENSEX : BSE continues to be bullish, it reached its all time high of above 6450 points in December on the back of huge foreign investments leading to a rise in business confidence in the economy.