Bizbits

CMIE disputes CSO estimatesMUMBAI: CENTRE for Monitoring Indian Economy CMIE has dismissed as overestimates Central Statistical Organis...

CMIE disputes CSO estimates

MUMBAI: CENTRE for Monitoring Indian Economy CMIE has dismissed as overestimates Central Statistical Organisation8217;s CSO advance estimates of national income for 1998-99. The estimates are based on the expected growth in real GDP during the year at 5.8 per cent, CMIE said in its latest monthly review of the Indian economy. CSO has based its estimates on a sectoral growth of 5.3 per cent in agriculture, 4.7 per cent in industry and 6.7 per cent in services. 8220;We find these to be overestimates,8221; the private think-tank said.

CSO8217;s estimate of 5.3 per cent growth in agriculture is based on a food grain production of 195.25 million tonnes compared to 192.43 million tonnes in the preceding year, thus showing a growth rate of 1.5 per cent. This, CMIE said, implies that the non-foodgrains and allied activities need to grow at about 10.5 per cent in real terms to justify the 5.3 per cent growth in overall agriculture. In the 1990s, the allied activities have not grown by morethan five per cent per annum, CMIE noted. Further, the advance estimates have projected a 4.7 per cent increase in the industrial sector. Given that the index of industrial production grew by only 3.5 per cent during April-December 1998, the CSO8217;s estimate again appears to be optimistic, it said.

Nabard bond issue

MUMBAI: National Bank for Agriculture and Rural Development Nabard has scheduled issue of priority sector bonds to raise Rs 1,000 crore. The 11.25 per cent taxable priority sector bonds 2006 I-series, which will be on tap from March 15 to 17, are meant to be used for disbursing loans and advances to eligible banks exclusively for financing village, cottage, SSI, non-farming activities and for agriculture and allied activities.

Subscription to these bonds by scheduled banks will be reckoned as part of priority sector lendings as per RBI guidelines, Nabard said in a release here today. Nabard has the right to retain over-subscription up to Rs 100 crore.