Rating agency Crisil has released a report stating that the state governments' key fiscal indicators-revenue deficit and gross fiscal deficit-will start deteriorating from 2009, after a four-year period of an improving trajectory.

Government may take more monetary measures to mitigate the impact of global slow down on Indian economy. Its primary concern is to maintain stability of growth rate and it believes in proactive approach in monetary policy. The chief economic advisor to Finance Ministry, Mr. Arvind Virmani said that aggressive monetary policy is a need of hour to ensure stability of finance system.

It was revealed by the government data on Thursday that for the week ended December 6, India's annual rate of inflation dropped further to 6.84 per cent from 8per cent the week before. The analysts say that the sharp drop was triggered largely by the drop in petrol and diesel prices. During the corresponding week last year, the rate of inflation was 3.84 per cent. 

New Delhi - India's inflation rate fell sharply 6.84 per cent for the week ending December 6, down from 8 per cent the week before, government data showed Thursday.

The inflation rate, linked to India's wholesale price index, was at its lowest in nine months primarily because of cuts in petrol and diesel prices announced by the government recently.

Inflation in India has been on the decline since it hit its peak of 12.91 per cent in the week what ended August 2. The rate during the same period last year was 3.84 per cent.

In more than 5 weeks, India's rupee rose to the strongest level after the Federal Reserve cut its benchmark interest rate to a record low, boosting demand for higher-yielding assets.

As the global stocks rallied, the currency gained for a third day.  

The macro-economic numbers pertaining to the Indian economy indicates further slowdown of the economy. There may be a steep fall in the growth rate in the coming months. Decline in agriculture and industrial growth rate may further slide the economic growth. The growth rate of 7.6 per cent has registered in the September quarter of this year from the peak level of 9.3 per cent in September 2007. The reserve bank and noted rating agencies has forecasted further decline in the growth rate due to the impact of global slowdown.