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APPENDIX
Article 1:
INDIA'S finance minister is smiling. He is also not hiding his worries.

Advance growth estimates released by the Central Statistical Organisation (CSO) show that the Indian economy is likely to expand at its fastest pace in three years at 8.6 per cent in 2010-11. The economy grew at a rate of 8 per cent in 2009-10 and 6.8 per cent in 2008-09.

The growth rate of 8.6 per cent in GDP during 2010-11 has been due to the growth rates of over 8 per cent in the sectors of manufacturing (export), construction (govt) trade (export), hotels, transport and communication, financing, insurance, real estate and business services (consumption), said an official release of the CSO on Feb7.

"All along I was maintaining it should be around 8.5 per cent plus; 8.6 per cent is accepted," MrMukherjee told the Press Trust of India adding, "Now the other issue is inflation, (demand-pull, AD SHIFT RIGHT) trade balance... these are to be addressed."

The gross domestic product (GDP) estimates are higher than the predictions made by the Reserve Bank of India and the finance ministry but are also an indication that the economy had slowed down somewhat in the second half of the current financial year.

The latest GDP growth estimate of 8.6 per cent for the entire fiscal year implies that the pace of economic expansion slowed in the second half of 2010-11, given that GDP growth in the April-September 2010 period stood at 8.9 per cent.

ING Vysya Bank economist Deepali Bhargava told The Indian Express that the high growth estimate would have a tremendous impact on budget decisions relating to fiscal deficit and tax.

"The CSO estimate is pretty much in line with our forecast of 8.7 per cent. There could be some upside revision in the figure later on," she said.
Chief economic adviser to the Indian government Kaushik Basu admitted inflation was a concern but

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