Finally, the revision of the basket for CPI series lags that of the WPI series. Last year, the WPI series was revised to the base of 2004–05 whereas the existing CPIs continue with the old base – for CPI-RL (1986–87), CPI-AL (1986–87) and CPI-IW (2001) which makes CPIs ill-equipped to capture the price behaviour caused by the rapid structural changes in the economy.
The investment outlook is also positive, supported not only by a need to modernise the capital stock after years of subdued investment and an improving outlook for profitability, but also by easy financing conditions as our policy measures have passed through financial markets, benefiting businesses and their customers.