New Delhi, Feb 5: After rising consecutively for two weeks, the inflation figures showed a slip to 5.07 percent.

The inflation rates declined primarily due to falling prices of fruits and vegetables and manufactured goods, encouraging policy rate cuts by the Reserve Bank to boost the industrial sector.

The prices of fruits, vegetables and bajra declined by two percent, while the coffee rates fell by one percent.

Raw rubber, groundnut seed and gingerly seed became cheaper by six percent, three percent and one percent respectively.

Kathmandu, Feb 4 : Nepal Prime Minister Prachnada today separately met visiting Finnish Minister for Foreign Trade and Development Dr Paavo Vayrynen and Managing Director of World Bank (WB), Dr Ngozi Okonio Iweala at his official residence in Baluwatar Wednesday.

According to PM''s press advisor Om Sharma, Prachanda requested Finnish Minister to invest in bigger projects for the economic development of Nepal.

Global slowdown, spreading fast in India, has adversely hit country's export sector in January with reported decline of 22% in merchandise exports. The data provided for January gives indication of grimmer situation ahead with a large number of job losses and stagnation in economy.

The country witnessed overall 1.1 per cent decline in export in December. Experts believe that situation may become worse in coming months for exporters due to non-availability of new contracts in the international market.

Leading banks are likely to cut interest rates by 50-100 basis points in days to come, a move that can help to generate demand and propel economic growth in the country.

External affairs minister Pranab Mukherjee, holding Finance portfolio due to bypass surgery of Prime Minister Manmohan Singh, is meeting top executives of banks on Monday to discuss the matter. He can ask banks to cut lending rates on home, retail and auto loans to revive demand in the economic system. Banks may revise prime lending rates (PLR) or the benchmark interest rate by 50-100 basis points besides some concessions for SMEs and infrastructure firms.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Foreign minister Pranab Mukherjee gave nod to various infrastructure projects worth Rs 34,000 crore on Wednesday. It includes the Chennai Metro project, Krishnapatnam port project in Andhra Pradesh and many more projects to push demand in infrastructure sector in the midst of recessionary waves across the globe.

CCEA approved foreign direct investment (FDI) worth Rs 957 crore in Krishnapatnam Port Company Ltd and 45 km long Phase I of the Chennai Metro project with estimated cost of Rs 14,600 crore.

It would be quite good to know that India might continue to maintain growth rate of 7-7.5 per cent next fiscal, the same level it is expected to register in the current fiscal. The news comes when lower growth projection of 8 per cent in 2009 by our neighbor China was termed as a tall order.

Commerce and Industry Minister Kamal Nath confirmed at the World Economic Forum, "We hope to continue at the same level of 7-7.5 next fiscal."