Thanks for the help. This email is just a gist of what I faced.

The latest build 11962 builds just fine with devlibs r41 but not on TDM GCC 4.7.1.

I faced a similar problem in getting the code to compile a few months back in August, when mathog found out that inkscape did not compile successfully using TDM GCC. He suggested Vanilla MinGW, which is the one I am using right now, and inkscape just builds fine.

So anyone wanting to develop on Windows shall need:
Vanilla MinGW as of now.
(Personally I haven't tested the previous versions of TDM GCC, although Uwe Scholer has reported successfully building on Windows 7 using TDM GCC 4.6.1 :) )
For other components refer the Inkscape Wiki: http://wiki.inkscape.org/wiki/index.php/Compiling_Inkscape_on_Windows

I would like this information to be updated on the Inkscape Wiki. It shall help the beginners and save them time. Trust me, being new to OSD, and not being able to compile for days on end when you are following the instructions meticulously is demotivating.

PS: TDM GCC 4.7.x (the latest) builds the code completely but inkscape.exe does not run. After the sandtimer cursor, nothing happens. 

demicoder