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IIP Surges by 17.6% in Apr. ’10: |
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As per the Quick Estimates of Index of Industrial Production (IIP 1993-94 =100) for the month of April 2010 the General Index stood at 316.7 indicating 17.6% rise over the level in the month of April 2009. The revised annual growth for the period April-March 2009-10 stands
at 10.4% as compared to 2.8% in 2008-09.
The Indices for the Mining, Manufacturing and Electricity sectors for the month of April 2010 stand at 197.0, 341.5, and 246.9 respectively, indicating the growth rates of 11.4%, 19.4% and 6.0% over April 2009. The revised annual growth in the three sectors during April-March, 2009-10 over the corresponding period of 2008-09 have been 9.8%, 10.9% and 6.0% respectively.
As many as 15 out of the 17 industry groups have shown positive growth during the month of April 2010 over the corresponding period of the last year. The industry group ‘Machinery and Equipment other than Transport Equipment’ have shown the highest growth of 55.6%, followed by 51.9% in ‘Metal Products and Parts, except Machinery and Equipment’ and 41.4% in ‘Other Manufacturing Industries ’. On the other hand, the industry group ‘Wood and Wood Products; Furniture and Fixtures’ have shown a negative growth of 16.6% followed by 2.7%
in ‘Beverages, Tobacco and Related Products’.
As per Use-based classification, the Sectoral growth rates in April 2010 over April 2009 are : 8.8% in Basic goods, 72.8% in Capital goods and 10.8% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 37.0% and 6.6% respectively, with the overall growth in Consumer goods being 14.5%.
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| IIP Growth Falls to 7.1%: |
Updated (13/08/2010) |
The Quick Estimates of Index of Industrial Production (IIP) for the month of June’2010 indicate slowdown of growth rate The General Index stands at 312.4, which is 7.1% higher as compared to 8.3% growth achieved in June’2009. The cumulative growth during Q1 (April-June) of current year stands at 11.6% as against 3.9% same period last year.
Growth in the production of Mining, Manufacturing and Electricity sectors for the month of June 2010 was 9.5%, 7.3% and 3.5% as compared to June 2009. The cumulative growth during April-June’2010-11 over the corresponding period of 2009-10 in the three sectors have been 10.4%, 12.2% and 5.6% respectively, which moved the overall growth in the General Index to
11.6%.
13 out of the 17 industry groups (as per 2-digit NIC-1987) have shown positive growth during the month of June 2010 as compared to the corresponding month of the previous year. The industry group ‘Metal Products and Parts, except Machinery and Equipment’ have shown the highest growth of 62.1%, followed by 30.0% in ‘Jute and other vegetable fibre Textiles (except cotton)’ and 24.6% in ‘Transport Equipment and Parts’.
As per Use-based classification, the Sectoral growth rates in June 2010 over June 2009 are 3.4% in Basic goods, 9.7% in Capital goods and 8.7% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 27.4% and 1.3% respectively, with the overall growth in Consumer goods being 8.3%.
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| RBI Raised Policy Rates: |
Updated (27/07/2010) |
RBI Raised Policy Rates:
On 27th July 27, 2010 while announcing the first quarter review of monetary policy for the current FY the RBI raised the two policy rates viz repo rate (the rate at which the RBI lends to banks) and reverse repo rate (the rate at which liquidity is made available). However, other rates are kept unchanged. The revised rates are as follows.
Item Current Rate Effect
Repo rate
5.75%
Raised by 25 bps with immediate effect
Reverse Repo Rate
4.50
Raised by 50 bps with immediate effect
CRR
6.0%
Unchanged
SLR 25.0% Unchanged
Bank Rte
6.0%
Unchanged
The monetary policy is likely to moderate inflationary pressure by controlling demand pressures and price expectations while maintaining conducive environment for sustained growth.
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| IIP Growth at 11.5% in May ’10: |
Updated (13/07/2010) |
The General Index of Industrial Production (IIP: 1993-94=100) for the month of May 2010 312.6, higher by 11.5% over May 2009. Y-o-Y cumulative growth for April-May 2010-11 was 14.0%.
The cumulative growth in Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors during April-May, 2010-11 over the corresponding period of 2009-10 was 10.2%, 15.1% and 6.6% respectively.
In terms of industries, as many as 15 out of 17 industry groups registered positive growth during the month of May 2010 over May 2009.
As per Use-based classification, the sectoral growth rates in May 2010 over May 2009 were 7.9% in Basic goods, 34.3% in Capital goods and 10.2% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 23.7% and 2.4% respectively, with the overall growth in Consumer goods being 8.2%.
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| RBI Raises Rates: |
Updated (05/07/2010) |
RBI Raises Rates:
On 2nd July 2010, based on the current macroeconomic situation, the RBI decided to take the following monetary policy measures as a part of the calibrated exit from the expansionary monetary policy:
• to increase the Repo Rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from the existing 5.25% to 5.50% with immediate effect.
• to increase the Reverse Repo rate under the LAF by 25 basis points from the current level of 3.75% cent to 4.0% with immediate effect.
Also, on the basis of the current liquidity situation, the RBI decided to extend the following liquidity management measures:
i) The additional liquidity support to scheduled commercial banks under the LAF to the extent of up to 0.5% of their net demand and time liabilities (NDTL) currently set to expire on July 2, 2010 is now extended up to July 16, 2010. For any shortfall in maintenance of statutory liquidity ratio (SLR) arising out of availment of this facility, banks may seek waiver of penal interest purely as an ad hoc measure.
ii) The second LAF (SLAF) will be conducted on a daily basis up to July 16, 2010
It is expected that the above monetary measures should contain inflation and anchor inflationary expectations going forward without hurting the recovery process. Easing liquidity and raising rates at the same time may seem apparently inconsistent. However,
It should be noted that the liquidity easing measures have become necessary to manage what is essentially a temporary and unanticipated development. In no way should they be viewed as inconsistent with the monetary policy stance of calibrated exit, which remains focussed on containing inflation and anchoring inflationary expectations without hurting growth.
This mid-cycle policy action has been warranted by the evolving macroeconomic situation. Even as data for real GDP growth and WPI inflation became available by mid-June 2010, it was considered inadvisable to raise the policy rates as the financial system was dealing with liquidity pressures triggered by sudden build-up in government cash balances occasioned by the larger than anticipated level of 3G spectrum and broadband wireless access auction realisations. Through the month of June, liquidity under LAF operations remained in deficit mode. Consequently, the call rate moved up significantly, resulting in an effective tightening at the short end of the yield curve. The liquidity situation has since begun to ease.
The Reserve Bank will continue to monitor the macroeconomic conditions, particularly the price situation, and take further action as warranted.
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| Inflation eases: |
Updated (14/05/2010) |
Provisional annual rate of inflation, based on monthly WPI, stood at 9.59% for the month of April, 2010 (over April, 2009) as compared to 9.90 % for the previous month and 1.31% during the same month of the previous year.
The official Wholesale Price Index for 'All Commodities' (1993-94 = 100) for the month of April, 2010 rose by 1.2 percent to 253.7 from 250.8 for the previous month.
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| IIP Growth 10.4% in FY ’10: |
Updated (13/05/2010) |
IIP Growth 10.4% in FY ’10:
As per the Quick Estimates of Index of Industrial Production (IIP: 1993-94 =100) for the month of March 2010 released by the Central Statistics Office the General Index has registered a growth of 10.4% as compared to 2.8% in 2008-09. For the month of March 2010 the growth was 13.5% as compared to 0.3% in March 2009.
The cumulative growth during April-March, 2009-10 over the corresponding period of 2008-09 in the IIP for the Mining, Manufacturing and Electricity sectors for the month of March 2010 stand at 232.8, 373.6, and 260.0 respectively, with the corresponding growth rates of 11.0%, 14.3% and 7.7% as compared to March 2009. the three sectors have been 9.7%, 10.9% and 6.0% respectively, which moved the overall growth in the General Index.
As many as fourteen (14) out of the seventeen (17) industry groups (as per 2-digit NIC-1987) showed positive growth during the month of March 2010 as compared to the corresponding month of the previous year. The industry group ‘Metal Products and Parts, except Machinery and
Equipment’ have shown the highest growth of 42.8%, followed by 40.1% in ‘Other manufacturing Industries’ and 26.2% in ‘Food Products’. On the other hand, the industry group ‘Jute and Other Vegetable Fibre Textiles (except cotton)’ have shown a negative growth of 9.6% followed by 5.4% in ‘Textile Products (including Wearing Apparel)’ and 3.9% in ‘Wool, Silk and Man-made Fibre Textiles’.
Use-based classification of IIP indicates the sectoral growth rates in March 2010 over March 2009 as follows: 10.1% in Basic goods, 27.4% in Capital goods and 12.7% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 32.0% and 3.3% respectively, with the overall growth in Consumer goods being 10.6%.
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| RBI hikes rates by 25 bps. |
Updated (20/04/2010) |
In view of rising inflation, the Reserve Bank of India, on 20th April 2010, hiked key interest rates (Repo and Reverse Repo rate) by 25 basis points. The move was in line with broad market expectations. The Reserve Bank of India also raised its Cash Reserve Ratio (CRR) requirement for banks by 25 basis points in a move to drain further liquidity from the financial system. The CRR increase will come into effect from April 24. The hike in CRR will suck out Rs 12,500 crore from the banking system. With the economy going through high growth-high inflation phase, controlling inflation has become the single most objective of the RBI.
The revised rates are as follows:
Repo Rate: 5.25%
Reverse Repo Rate: 3.75%
Cash Reserve Ratio: 6.00%
Bank Rate: 6.00% (Unchanged)
Statutory Liquidity Ratio:25.0% (Unchanged)
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| Repo & Reverse Repo Rates Raised: |
Updated (22/03/2010) |
In order to reign in the surging inflation, the RBI on 19th March 2010, announced hike in Repo ( the rate at which the RBI lends to money to banks) and Reverse repo (the rate which the RBI offers to banks on their funds left with the RBI) Rates. Both the rates have been increased by 25 basis points each with immediate effect. The revised rates are as under:
• Repo rate: 5.00%
• Reverse Repo Rate: 3.50%
It ay be recalled that in the 3rd quarter review of monetary policy announced in January 2010, the RBI had raised Cash reserve Ratio (CRR) by 75 basis points to its current level of 5.75%. Other rates were kept unchanged. However, the RBI had hinted about the policy measures even before the fourth quarter monetary review scheduled in April 2010. Accordingly, the Central bank announced the measures to control the inflationary pressures. The RBI wants to monitor the price situation closely and take necessary further actions as warranted by the situation. This clearly signals the regime of dear money policy in the near future.
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| IIP growth sustained in January ‘10: |
Updated (12/03/2010) |
Quick estimates of IIP (Index of Industrial Production1993-94=100) for the month of January 2010 indicate continuation upward trend. General Index stands at 332.3, is 16.7% higher as compared to the level in the corresponding month of 2009. The cumulative y-o-y growth for the period April-January 2009-10 stands at 9.6% was compared to 3.3% in the corresponding period of last year.
IIP the Mining, Manufacturing and Electricity sectors for the month of January 2010 stand at 215.6, 359.5, and 240.6 respectively, with the corresponding growth rates of 14.6%, 17.9% and 5.6% as compared to January 2009. The cumulative growth during April-December, 2009- 10 over the corresponding period of 2008-09 in the three sectors have been 9.3%,9.9% and 5.7% respectively, which moved the overall growth in the General Index to 9.6%.
In terms of industries, as many as fourteen (14) out of the seventeen (17) industry groups (as per 2-digit NIC-1987) have shown positive growth during the month of January 2010 as compared to the corresponding month of the previous year.
The industry group ‘Transport Equipment and Parts’ have shown the highest growth of 57.6%, followed by 45.9% in ‘Machinery and Equipment other than Transport Equipment’ and 38.6% in ‘Metal Products and Parts, except Machinery and Equipment’. On the other hand, the industry groups ‘Jute and Other Vegetable Fibre Textiles (except cotton)’ have shown a negative growth of 91.0% followed by 4.0% in ‘Food Products’ and 2.2% in ‘Leather and Leather & Fur Products’.
As per Use-based classification, the Sectoral growth rates in January 2010 over January 2009 are 10.7% in Basic goods, 56.2% in Capital goods and 21.3% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 31.6% and (-)3.1% respectively, with the overall growth in Consumer goods being 4.2%.
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| UNION BUDGET 2010-11: |
Updated (26/02/2010) |
• The Union Budget for 2010-11 was announced on 26th February 2010. The Budget is prepared in the backdrop of the nascent growth that the economy has been witnessing in the recent past.
• In the earlier Budget the Finance Minister had a task of reviving a slowing economy which was done through a combination of fiscal and monetary measures. This time however, his focus has been more on fiscal consolidation without sacrificing economic growth. The Budget is well articulated, balancing growth and reforms.
• The Budget gives a hint of an exit from the expansionary policy which was initiated to counter the slow down. In this connection, for example the FM has reinstated the excise duty on all non-petroleum products by 200 basis points from 8% to 10% ad valorum, as also a 2% increase in excise duty on large cars, MUVs and Sport Utility Vehicles from 20% to 22%. Thus, the stimulus is being rolled back in a calibrated manner without hampering the growth momentum.
• The Budget lays down a clear road-map for reducing the fiscal deficit from 5.5% in 2009-10 to 4.8% in 2011-12 and further to 4.1% in 2012.13.
• Recognizing the significance of two economic growth drivers namely, consumption and investment, the Budget contains measures to strengthen both. Raising the income tax slabs for examples individuals falling in the tax bracket of between Rs.1.6 lakhs and Rs.8 lakhs is expected to give a boost to domestic consumption.
• Other measures like increasing allocations to the infrastructure segment (power, roads etc), rural and urban development, simplification of FDI rules etc would facilitate higher investment. During 2010-11 a sum of Rs.173,552 crores has been allotted for urban and rural infrastructure development which accounts for over 46%of the total plan allocations for infrastructure development.
• The Budget emphasizes on inclusive growth and earmarks higher funds for social sectors. For instance, allocation for education has been Rs.31,036 crore representing an increase of 15.8% over last year; health: Rs.22,300 crores i.e. a 14.2% increase. For rural development a provision of Rs.66,100 crores has also been made.
• As far as agriculture is concerned, the FM proposes a four-pronged strategy which focuses on agricultural production, cutting down wastage on food storage, credit support to farmers and thrust on food processing sectors.
• Proposed changes in tax rates :
For Corporates:
• Minimum Alternate Tax increased from 15% to 18%
• Corporate surcharge reduced form 10% to 7.5% bringing down the effective corporate tax rate to 33.21%
For individuals:
• Change in tax slabs for individuals.
Income Slab (Rupees) Tax Rate (%)
Up to Rs.160,000 Nil
Rs.160,000 to 500,000 10
Rs.500,000 to 800,000 20
Above Rs.800,000 30
• Peak customs duty has been retained at 10%
• Service tax rates has been retained at 10%
• Budget is acutely aware of the inflationary pressures particularly the food inflation in the economy. For this, the FM proposes to set in motion steps in consultation with the State Governments to bring down inflation byensuring food security.
• To sum up, the Budget seems to be quite pragmatic preparing the economy for a higher growth trajectory in the next couple of years. The Budget also provides the time line to implement the Direct tax Code (DTC) and Goods and Service Tax (GST) from the next financial year.
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BROAD IMPLICATIONS OF THE BUDGET PROPOSALS ON SELECT INDUSTRIES
Industry Favourble Unfvourable Broad Impact
Steel
i. Competitive process for coal blocks bidding. However, availability of land & forest area regulations, may continue to create difficulties.
ii. Higher spending for roads rural and urban infrastructure development
iii.Increase in weighted average deduction for in house R&D from 150% to 200%
iv. 1% Interest rate subvention on housing loans up Rs.20 lacs
. i Cess on imported and domestic coal
Cess on coal would impact blast furnace plants.
Would increase demand for medium sized dwelling units
Automobiles i. Increase in weighted average deduction for in house R&D from 150% to 200%
ii. Exemption from CD on the imported parts for electric cars
iii. Higher spending for roads and rural infrastructure
iv. Higher purchasing power of consumers due to adjustments of income slabs
i. Increase in ED on large cars, SUVs to 22%
ii. Increase in ED and CD on petrol and diesel
iii. Increase in ED on raw materials
Given the economic upturn and auto sector growth, the industry growth will not be affected substantially
Agro-Industries I. Focus on agriculture
ii. Fertilizer subsidy to be paid in the form of cash instead of bonds to companies.
iii. Exemption of service tax on testing and certification of good quality disease seeds
iv. ST exemption on transportation of cereals and pulses by road
Positive impact on agro-based industries
Hospitality
Investment linked deduction for new 2-star hotels
Will encourage budget tourists
Telcom
Mobile accessories to get tax breaks
Production of handsets exempted from basic CVD and additional duties
Boost to tele-density
Power
I Allocation to power sector doubled to Rs.5,130 crores from Rs.2,230 crores.
ii. Competitive process for coal blocks bidding. However, availability of land, forest area regulations may continue to create difficulties.
iii. 61% increase in the allotment to renewable energy
. i Cess on imported and domestic coal
Marginally negative impact on coal based power plants
Note: Increase in MAT from 15% to 18% would increase the tax liability of all corporates paying MAT.
Reduction in corporate tax surcharge to 7.5% would result in the reduction of the effective tax rate to 33.21%.
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| ECONOMIC SURVEY 2009-10: HIGHLIGHTS |
Updated (25/02/2010) |
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Economic Survey for the financial year 2009-10 was tabled in the Parliament on 25th February, 2010. Highlights of the Survey are provided here. |
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| HIGHLIGHTS OF RAILWAY BUDGET 2010-11 |
Updated (25/02/2010) |
The Railway Budget for the financial year 2010-11 was presented in the Parliament on 24th February, 2010. Highlights of the Budget are:
• No increase in freight rates and passenger fares.
• Reduction of freight for food and kerosene by Rs.100 per wagon
Above policies are the blend of populist and prudent (anti-inflationary and supporting industrial growth) policies.
• However, No focus on capital investment programmes like renewal of rolling stock, tracks etc which may lead to lot of wear and tear of existing infrastructure thereby increase the risk of rail mishaps.
• The Budget lays greater emphasis on Public private Partnership (PPP). Several new projects announced in the Budget are expected to facilitate higher industrial growth. These include:
• 10 automobile and ancillary hubs to be set up.
•94 stations to be upgraded as Adarsh Stations. Development of Adarsh Stations started in phases
•10 more stations identified to be converted as World Class Stations
•Construction of additional 93 Multi Functional Complexes. Work initiated in 67 Multi-functional Complexes
•Multi-level parking through PPP route.
•Six clean drinking water bottling plants to be set up through PPP for
providing cheap bottled drinking water.
•SMS updates of reservation status and punctuality of trains to passengers.
•SMS updates on the movement of wagons to freight customers.
•RFID technology for tracking of wagons
•Introduction of e-ticket based mobile vans for issuing tickets.
•All the unmanned Leven Crossings to be manned within five years.
•A new Rail Axle Factory to be set up in New Jalpaiguri under PPP/JV mode.
•A new MLR workshop of 250 coach capacity to be set up at Anara (Adra).
•Five state-of-the-art wagon factories to set up at Secunderabad,
Barddhaman, Bhubaneshwar/Kalahandi, Guwahati and Haldia under
PPP/JV mode.
•To set up a refrigerated container factory on PPP mode at Budge Budge
•Six high speed passenger corridors identified, to be executed through PPP
mode.
•1021 km of New Lines to be completed. 9 new line projects
announced.
•800 km of gauge conversion and 700km of doubling targeted.
•Several projects being taken up on cost sharing basis with State
Governments and on PPP mode.
•101 new suburban services to be introduced in Mumbai area.
•More services to start in Chennai and Kolkata areas.
Performance in 2009-10:
• After meeting al the expenses and provision including dividend liability of Rs.5,539 core, there will be a surplus of Rs.951 crores.
•Loading target of 882 MT likely to surpassed by 8 MT in 2009-10.
•Gross Traffic Receipts kept at Rs. 88,356 crore, i.e. an increase of 10.7%.
Budget Estimates 2010-11.
•Freight loading targeted at 944 MT – an increment of 54 MT; number of
passengers likely to grow by 5.3 %.
•Gross Traffic Receipts estimated at Rs. 94,765 crore, i.e. Rs 6490 cr more
than 2009-10.
Along with the Budget, the Railway Minister also presented two more documents namely- “White Paper on Indian Railways” and “Indian Railways Vision 2020”.
• Vision 2020 sets out various goals to be achieved by the Indian Railways in the next ten years. Broad goals are summarized below.
• All this implies a lot of growth opportunities for the industry in the years to come.
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| Inflation Increases to 8.56%: |
Updated (16/02/2010) |
Provisional annual rate of inflation, based on monthly WPI, stood at 8.56% for the month of January, 2010 (over January, 2009) as compared to 7.31 % for the previous month and 4.95% during the corresponding month of the previous year. Build up inflation in the financial year so far was 8.90% compared to a build up of 1.51% in the corresponding period of the previous year.
The Wholesale Price Index for 'All Commodities' (1993-94 = 100) for the month of January,2010 stood at 248.5, 0.8% higher than previous months level of 246.5.
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| Core Industries Grow By 6%: |
Updated (15/02/2010) |
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The provisional index of six core industries (Crude Oil, Petroleum Refinery Products, Coal, Electricity, Cement and Finished steel) having a combined weight of 26.7% in the Index of Industrial Production (IIP 1993-94=100) stood at 260.2 in December 2009 registering a growth of 6% compared to 0.7% registered in December 2008. During the three quarters April-December 2009-10, six core industries registered a growth of 4.8% as against 3.2% during the corresponding period of the previous year. |
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| IIP Growth Stronger at 16.8% in Dec ‘10: |
Updated (15/02/2010) |
In December 2009, general Index of Industrial Production (IIP 1993-94=100) for the recorded one of the strongest monthly growth (on Y-o-Y basis) of 16.8%. As per the Quick Estimates released by CSO, IIP stood at 331.7. The cumulative growth for the three quarters period April-December 2009-10 stands at 8.6% over the corresponding period of 2008-09.
The cumulative growth in Mining, Manufacturing and Electricity sectors during April-December, 2009-10 over the corresponding period of 2008-09 has been 8.5%, 9.0% and 5.8% respectively, which moved the overall growth in the General Index to 8.6%.
In terms of industries, as many as fourteen (14) out of the seventeen (17) industry groups (as per 2-digit NIC-1987) have shown positive growth during the month of December 2009 as compared to the corresponding month of the previous year. The industry group ‘Transport Equipment and Parts’ have shown the highest growth of 82.2%, followed by 44.6% in ‘Machinery and Equipment other than Transport Equipment’ and 29.0% in ‘Basic Chemicals & Chemical Products (except products of Petroleum & Coal)’. On the other hand, the industry group ‘Other Manufacturing Industries’ have shown a negative growth of 9.4% followed by 6.9% in ‘Food Products’ and 0.1% in ‘Leather and Leather & Fur Products’.
Use-based classification indicates that the sectoral growth rates in December 2009 over December 2008 are 7.5% in Basic goods, 38.8% in Capital goods and 21.7% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 46.0% and 3.7% respectively, with the overall growth in Consumer goods being 12.0%.
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| GDP to Grow by 7.2% in Current FY: |
Updated (09/02/2010) |
GDP Grows by 7.2% in Current FY:
On 8th February, 2010 Central Statistical Organization (CSO) released Advance Estimates of national income for the current Financial Year (FY).Accordingly, the economy is expected to post 7.2% growth in real terms. The growth rate is lower than the RBI’s estimate of 7.5% but higher than the previous year’s growth of 6.7%. However, the revised and quick estimates which will be announced later are expected to have an upward bias.
Sectoral break-up of GDP shows that agriculture posted a negative growth of 0.2% in real terms due to poor monsoons. However, in nominal terms, the segment has posted a growth of 9.3% thereby indicating prevalence of higher food inflation. Nominal growth rate of GDP at 10.8% indicates a moderate inflation of 3.6%. This calls for serious steps to contain food inflation.
Among the other segments, manufacturing has grown by 8.9% (3.2% in 2008-09), mining by 8.7% (1.6%), electricity, gas and water supply by 8.2% (3.9%) and construction by 6.5% (5.9%). Among services, FIRB (Finance, Insurance, Real Estate and Business services) has posted 9.9% growth (10.1%) while THTC (Trade, Hotels, Transport and Communication) grew by 8.3% (7.6%) and CSPS (Community, Social & Personal Services) increased by 8.2% (13.9%).
From the expenditure point of view, there has been a decline in the growth of Private Final Consumption Expenditure (PFCE accounting for 58% of the GDP) from 6.8% in 2008-09 to 4.1% in 2009-10. Growth of Government Final Consumption Expenditure (GFCE) also slowed down from 16.7% to 8.2% during the same period. On the other hand, Gross Fixed Capital Formation (GFCF) witnessed a moderate rise from 4.0% to 5.2%. However, as a proportion of GDP, the GFCF experienced a marginal fall from 32.9% to 32.5%. This points out to the need for enhancing investments. Exports and imports also declined sharply.
It is evident that the economy has not only recovered from the impact of global economic crisis but has started growing at a rapid rate. A major credit goes to the Government’s stimulus package announced in December 2008 sacrificing the fiscal goals of bringing down the deficit ratios. Now that the economy is out of woods, the Government is likely to adopt policies to fiscal goals and reign in the inflation. All this will be reflected in the forthcoming Union Budget to be announced on 26th February 2010. It may be stressed that the stimulus package should be withdrawn in a phased manner. This will ensure the continuation of growth momentum.
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| FOREIGN TRADE IMPROVES IN DEC.’09: |
Updated (02/02/2010) |
India’s exports during December, 2009 were valued at US $14.6 Billion (Rs. 68107 crore) which was 9.3% higher in dollar terms (4.8% in Rupee terms) than the level of US $ 13.4 million (Rs. 65015 crore) during December, 2008. Cumulative value of exports during the nine month period (April- December, 2009) was US $ 117.6 Billion (Rs 563304 crore) as against US $ 147.6 Billion (Rs. 652919 crore) registering a negative growth of 20.3% in Dollar terms and 13.7% in Rupee terms over the same period last year.
India’s imports during December, 2009 were valued at US $ 24.8 billion (Rs.115420 crore) representing a growth of 27% in dollar terms (22% in Rupee terms) over the level of imports valued at US $ 19.5 billion ( Rs. 94625 crore) in December, 2008. Cumulative value of imports during April- December 2009 was US $ 193.8 billion (Rs. 927969 crore) as against US $ 253.8 billion (Rs. 1126199 crore) registering a negative growth of 23.6% in Dollar terms and 17.6% in Rupee terms over the same period last year. Oil imports during April- December, 2009 were valued at US$ 56.9 billion which was 29.8% lower than the oil imports of US $ 81.1 billion in the corresponding period last year.
The trade deficit for April- December, 2009 was estimated at US $ 76.2 billion which was lower than the deficit of US $ 106.2 billion during April-December, 2008.
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| CRR Raised to 5.75% |
Updated (29/01/2010) |
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• On 29th January 2010, the RBI released the third quarter (Q3) review of Monetary Policy 2009-10. In line with the Finance Ministry’s expectation of the higher economic growth, the RBI is also optimistic about the economic growth in the current Financial Year (FY) and estimates a GDP growth of 7.5% as against the estimate of 6.0% done earlier in October 2009. However, given the sharp drop in Kharif output due to poor monsoon, the overall growth appears to be over optimistic |
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| Inflation Rockets: |
Updated (15/01/2010) |
The provisional annual rate of inflation, based on monthly Wholesale Price Index (1993-94=100), stood at 7.31% for the month of December'2009 (over December, 2008) as compared to 4.78 % in November 2009 and 6.15% during December 2008. Build up inflation in the financial year so far was 8.02% compared to a build up of 1.86% in the corresponding period of the previous year.
The official Wholesale Price Index for 'All Commodities' for the month of December,2009 rose by 0.4 percent to 246.5 from 245.4 for the previous month.
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| NEW INCENTIVES FOR EXPORTERS: |
Updated (13/01/2010) |
Union Minister of Commerce and Industry announced a series of new incentives for exporters. These are as follows:
1. New Products under Focus Product Scheme (FPS):
• 112 new products added under FPS at 8 digit level, eligible for benefits @ 2% of FOB value of exports to all markets.
• Major sectors include Engineering, Electronics, Rubber, Chemicals, Plastics, Carton boxes and Egg powder.
• 113 new products at 8 digit level given higher benefits @ 5% of FOB value of exports under Special FPS on exports to all markets.
• Major sectors include Hand Tools, parts of agriculture & horticulture machinery, sewing machines and parts, liquid pumps, nuts, bolts, washers, screws, staplers, and parts of machinery for soldering, brazing and welding.
2. New Products and New Markets under Market Linked Focus Product Scheme (MLFPS):
• 1837 new products added under MLFPS at 8 digit level, eligible for benefits @ 2% of FOB value of exports to specified markets.
• Major sectors include Machine Tools, Earth moving equipments, Transmission towers, Electrical and Power Equipments, Steel Tubes, pipes and galvanized sheets, Compressors, Iron and Steel Structures, Auto components, Three wheelers and cotton woven fabrics. (Chemicals have been included for providing benefit for a limited period of 6 months).
Two new major markets viz. China and Japan added under MLFPS.
3. New products under Vishesh Krishi and Gram Udyog Yojana (VKGUY):
• Sesame seeds and minor coconut products added under VKGUY scheme, eligible for benefits @ 5% of FOB value of exports to all markets.
4. New market added under Focus market Scheme (FMS):
• Timor Leste added as new FMS country, eligible for benefits @ 3% of FOB value of exports of all products.
5. Support under Market Access Initiative (MAI) scheme, for setting up of Warehouse in Latin America by Export Promotion Council for Handicrafts
Total value of these incentives is approximately Rs.500 crores. |
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| IIP Growth Sustained in Nov. ‘09: |
Updated (13/01/2010) |
IIP Growth Momentum Sustained in Nov. ‘09:
The Quick Estimates of Index of Industrial Production (IIP 1993-94=100) for the month of November 2009 indicate a smart rise. The General Index stood at 298.9, which is 11.7% higher as compared to the level in the month of November 2008. The cumulative growth for the period April-November 2009-10 stands at 7.6% over the corresponding period of the pervious year. This is the second consecutive month where IIP has registered a substantial increase.
The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of November 2009 were 192.9, 322.6, and 223.5 respectively, with the corresponding growth rates of 10.0%, 12.7% and 3.3% as compared to November 2008. The cumulative growth during April-November, 2009-10 over the corresponding period of 2008-09 in the three sectors have been 8.3%, 7.7% and 6.1% respectively, which moved the overall growth in the General Index to 7.6%.
In terms of industries, as many as fourteen (14) out of the seventeen (17) industry groups (as per 2-digit NIC-1987) have shown positive growth during the month of November 2009 as compared to the corresponding month of the previous year. The industry group ‘Transport Equipment and Parts’ have shown the highest growth of 38.3%, followed by 28.4% in ‘Metal Products and Parts, except Machinery and Equipment’ and 19.9% in ‘Wood and Wood Products; Furniture and Fixtures’. On the other hand, the industry group ‘Jute and Other Vegetable Fibre Textiles (except cotton)’ have shown a negative growth of 11.4% followed by 4.5% in “Leather and Leather & Fur Products” and 2.6% in “Beverages, Tobacco and Related Products”.
As per Use-based classification, the Sectoral growth rates in November 2009 over November 2008 are 6.0% in Basic goods, 12.2% in Capital goods and 19.4% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 37.3% and 3.1% respectively, with the overall growth in Consumer goods being 11.1%.
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| IIP Picks Up In October ’09: |
Updated (14/12/2009) |
The Quick Estimates of Index of Industrial Production (IIP: 1993-94=100) for the month of October 2009 released by the Central Statistical Organisation of the Ministry of Statistics and Programme Implementation, indicate a smart pick up of 10.3% in October 2009 as compared to 0.1% in the corresponding month of 2008. The cumulative growth for the period April-October 2009-10 stands at 7.1% as against 4.3% last year.
The Indices for the Mining, Manufacturing and Electricity sectors for the month of October 2009 posted growth rates of 8.2%, 11.1% and 4.7% as compared to October 2008. The cumulative growth during April-October, 2009-10 over the corresponding period of 2008-09 in the three sectors have been 7.9%, 7.1% and 6.5% respectively.
In terms of industries, as many as 16 out of 17 industry groups (as per 2-digit NIC-1987) have shown positive growth during the month of October 2009 as compared to the corresponding month of the previous year. The industry group ‘Wood and Wood Products; Furniture and Fixtures’ as well as ‘Transport Equipment and Parts’ both have shown the highest growth of 18.9%, followed by 18.7% in ‘Basic Chemicals & Chemical Products (except products of Petroleum & Coal)’ and 18.3% in ‘Machinery and Equipment other than Transport Equipment’. On the other hand, the industry group ‘Jute and Other Vegetable Fibre Textiles (except cotton)’ have shown a negative growth of 15.5%.
Under the use-based classification of industry, the year-on-year growth rates in October 2009 show a rise of 5.0% in Basic goods, 12.2% in Capital goods and 14.3% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of 21.0% and 8.1% respectively, with the overall growth in Consumer goods being 11.8%.
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| Economy Looks Up in the First Half: |
Updated (30/11/2009) |
As per the latest data released by the Central Statistical Organisation (CSO), Ministry of Statistics and Programme Implementation, real Gross Domestic Product (GDP 1999-2000=100) for the second quarter (July-September) Q2 of 2009-10, has registered a 7.9% growth as compared to 7.7% during the corresponding period of 2008-09. This also compares favourably with Q1 (April-June 2009) growth rate of 6.1%. However, average real growth for the first half of the current year (April-September) is lower at 7.0% as compared to 7.8% during the same period last year.
Sector-wise growth rates are tabulated below.
• Due to poor monsoons, agriculture experience a slow-down in the growth rate.
• Mining and manufacturing segments have faired well although, construction experienced a slow down.
• Among services, growth in trade and hotels segment declined very sharply while the other two segments performed better.
• Growth in capital formation halved to 5.8% as against 10.9% during H1 of 2009. On the other hand, total consumption expenditure (Government plus Private) increased by 5.6% as compared to 3.0% last year mainly on account of the Government stimulus package.
The next release of quarterly GDP estimate for the quarter October-December, 2009
(Q3 of 2009-10) will be on 26.02.2010
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| 1.34% Inflation in Oct. ‘09: |
Updated (17/11/2009) |
The provisional official annual rate of inflation, based on monthly WPI, stood at 1.34% for the month of October, 2009 (over October 2008) as compared to 0.50% for the previous month and 11.06%during the corresponding month of the previous year. Build up inflation in the financial year so far was 6.13% compared to 5.99% in the corresponding period of 2008-09.
The Wholesale Price Index for 'All Commodities' (1993-94 = 100) for the month October 2009 declined by 0.2% to 242.2 from 242.7 for the previous month.
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| IIP Revives: |
Updated (12/11/2009) |
As per the Quick Estimates of Index of Industrial Production (IIP 1993-94=100) for the month of September 2009 released by the Central Statistical Organisation of the Ministry of Statistics and Programme Implementation, there has been a smart pick up in industrial production.
In September 2009, the general Index of IIP stood at 301.4, which is 9.1% higher as compared to the level in the month of September 2008. The cumulative growth for the period April-September 2009-10 stood at 6.5% over the corresponding period of 2008-09.
The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of September 2009 stood at 176.9, 326.1, and 236.6 respectively, with the corresponding growth rates of 8.6%, 9.3% and 7.9% as compared to September 2008. The cumulative growth during April-September, 2009-10 over the corresponding period of 2008-09 in the three sectors have been 8.2%, 6.3% and 6.8% respectively, which moved the overall growth in the General Index.
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| Exports Decline: |
Updated (12/11/2009) |
In October 2009 India’s merchandise exports declined by 11.4% to US$ 12.5 billion. Export growth has been in negative zone for the 13th straight months due to demand contraction in the global markets.
During the seven months period (April-October) of the current financial year exports dropped by 26.5%t to US$ 90.4 billion, over the corresponding period of 2008-09.
Major segments like gems and jewellery, handicrafts, apparel and petroleum products showed a decline in their export growth. Most of these exports head for the western markets, impacted severely by the recession.
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| Change in the release time of WPI: |
Updated (05/11/2009) |
As per the decision of the Cabinet Committee of Economic Affairs (CCEA), the weekly release of Wholesale Price Index will henceforth be on a monthly basis. Monthly WPI covering all commodities will be released for the month of October, 2009 next week (on 12th November,2009). The weekly WPI data released hereafter will cover only the Primary Articles and commodities in the broad group “Fuel, Power, Light & Lubricants”.
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| Inflation rises further |
Updated (30/10/2009) |
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The provisional annual rate of inflation, on point to point basis, stood at 1.51% for the week ended 17/10/2009 (over 18/10/2008) as compared to 1.21% for the previous week (ended 10/10/2009) and 10.82% during the corresponding week (ended18/10/2008) of the previous year. |
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| Core industries post smart growth: |
Updated (29/10/2009) |
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The provisional Index of Six core industries (Crude Oil, Petroleum Refinery Products, Coal, Electricity, Cement and Finished steel) having a combined weight of 26.7% in the Index of Industrial Production [IIP: 1993-94=100] stood at 255.3 in August 2009 thereby posting a growth of 7.1% compared to a growth of 2.1% in August 2008. |
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| Inflation rises to 1.21%: |
Updated (23/10/2009) |
Inflation rises to 1.21%:
The provisional annual rate of inflation, on point to point basis, stood at 1.21 % for the week ended 10/10/2009 (over 11/10/2008) as compared to 0.92% for the previous week (ended 03/10/2009) and 11.30% during the corresponding week (ended11/10/2008) of the previous year.
The Wholesale Price Index for 'All Commodities' (1993-94 = 100) for the week ended 10th October 2009 rose by 0.1% to 242.2 from 241.9 for the previous week.
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| Inflation at 0.92%: |
Updated (20/10/2009) |
The provisional annual rate of inflation, on point to point basis, stood at 0.92 % for the week ended 03/10/2009 (over 04/10/2008) as compared to 0.70% for the previous week (ended 26/09/2009) and 11.49% during the corresponding week (ended 04/10/2008) of the previous year.
The Wholesale Price Index for 'All Commodities' (1993-94 = 100) for the week ended 3rd October 2009 declined by 0.5 percent to 241.9 from 243.0 for the previous week.
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| IIP grows by 5.8% |
Updated (12/10/2009) |
The Quick Estimates of Index of Industrial Production (IIP) with base 1993-94 for the month of August 2009 have been released by the Central Statistical Organisation of the Ministry of Statistics and Programme Implementation. The General Index stands at 292.3, which is 10.4% higher as compared to the level in the month of August 2008. The cumulative growth for the period April-August 2009-10 stands at 5.8% over the corresponding period of the pervious year.
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| Inflation eases at 0.70%: |
Updated (08/10/2009) |
The provisional annual rate of inflation, on point to point basis, stood at 0.70 % for the week ended 26/09/2009 (over 27/09/2008) as compared to 0.83 % for the previous week (ended 19/09/2009) and 12.08 % during the corresponding week (ended 27/09/2008) of the previous year.
The official Wholesale Price Index for ‘All Commodities’ (1993-94 = 100) for the week ended 26th September, 2009 declined by 0.1% to 243.0 from 243.3 (Provisional) for the previous week.
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| Inflation rises to 0.83%: |
Updated (05/10/2009) |
Inflation rises to 0.83%:
The provisional annual rate of inflation, on point to point basis, stood at 0.83% for the week ended 19/09/2009 (over 20/09/2008) as compared to 0.37% for the previous week (ended 12/09/2009) and 12.13% during the corresponding week (ended 20/09/2008) of the previous year.
The official Wholesale Price Index for 'All Commodities' (Base: 1993-94 = 100) for the week ended 19th September 2009 rose by 0.3% to 243.3 from 242.6 for the previous week.
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| Inflation moves up to 0.37%: |
Updated (24/09/2009) |
The official provisional annual rate of inflation, on point to point basis, stood at 0.37 %for the week ended 12/09/2009 over (13/09/2008) as compared to 0.12% for the previous week (ended 05/09/2009) and 12.42 % during the corresponding week (ended 13/09/2008) of the previous year. Build up inflation in the financial year so far was 6.12% compared to a build up of 6.62% in the corresponding period of the previous year. 52 week average inflation for the week ended 12/09/2009 was 3.22%.
The Wholesale Price Index (WPI) for 'All Commodities' (1993-94 = 100) for the week
ended 12th September 2009 rose by 0.2% to 242.6 from 242.0 for the previous week.
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| Inflation enters positive zone: |
Updated (17/09/2009) |
The provisional annual rate of inflation, calculated on point to point basis turned positive and stood at 0.12% for the week ended 05/09/2009 over (06/09/2008) as compared to -0.12% for the previous week (ended 9/08/2009) and 12.42% during the corresponding week (ended 06/09/2008 of the previous year. Build up inflation in the financial year so far was 5.86% compared to a build up of 6.62% in the corresponding period of the previous year. 52 Week average inflation for the week ended 05/09/2009 was 3.43 %.
The Wholesale Price Index (WPI) for 'All Commodities' (1993-94 = 100) for the week ended 5th September 2009 rose by 0.4% to 242.0 from 241.1 for the previous week.
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| Inflation at -0.12%: |
Updated (10/09/2009) |
Provisional Wholesale Price Index for 'All Commodities' (1993-94 = 100) for the week ended 29th August 2009 stood at 241.1 as compared to 240.7 for the previous week.
The annual rate of inflation, calculated on point to point basis, stood at -0.12% for the week ended 29/08/2009 over (30/08/2008) as compared to -0.2% for the previous week (ended 22/08/2009) and 12.38% during the corresponding week (ended 30/08/2008) of the previous year. Build up inflation in the financial year so far was 5.47% compared to a build up of 6.48% in the corresponding period of the previous year. 52 week average inflation for the week ended 29/08/2009 was 3.99 %.
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| Decline in trade continues: |
Updated (02/09/2009) |
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Cumulative value of exports for the four month period April- July, 2009 was US $ 49651 million (Rs. 241735 crore) as against US $ 75289 million (Rs. 315978 crore) registering a negative growth of 34.1% in Dollar terms and 23.5% in Rupee terms over the same period last year |
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| Q1 GDP growth 6.1: |
Updated (01/09/2009) |
The Central Statistical Organisation (CSO), Ministry of Statistics and Programme Implementation has released the estimates of Gross Domestic Product (GDP) for the first quarter (April-June) Q1, of 2009-10, both at constant (1999-2000) and current prices, alongwith the corresponding quarterly estimates of expenditure components of the GDP.
The details of the estimates are presented below.
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| Inflation at -0.95%: |
Updated (27/08/2009) |
The provisional annual rate of inflation, calculated on point to point basis, stood at -0.95% for the week ended 15/08/2009 (over 16/08/2008) as compared to -1.53% for the previous week (08/08/2009) & 12.82% during the corresponding week (ended16/08/2008) of the previous year.
The official Wholesale Price Index for 'All Commodities' (1993-94 = 100) for the week ended 15th August 2009 rose by 0.6 percent to 238.8 from 237.4 for the previous week.
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| Core industries grow by 4.0%: |
Updated (27/08/2009) |
The provisional index of Six core industries (Crude Oil, Petroleum Refinery Products, Coal, Electricity, Cement and Finished steel) having a combined weight of 26.7% in the Index of Industrial Production (IIP: 1993-94=100) stood at 244.6 in July 2009 registering a growth of 1.8% compared to a growth of 5.1% in July 2008. However, during April-July 2009-10, six core industries registered a growth of 4.0% as against 3.5% during the corresponding period of the previous year.
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| Inflation at -1.53%: |
Updated (20/08/2009) |
The provisional annual rate of inflation, calculated on point to point basis, stood at -1.53% for the week ended 08/08/2009 (over 09/08/2008) as compared to -1.74% for the previous week (01/08/2009) & 12.82% during the corresponding week (ended09/08/2008) of 2008-09.
The official Wholesale Price Index for 'All Commodities' (1993-94 = 100) for the week ended 8th August 2009 rose by 0.1% to 237.4 from 237.2 for the previous week.
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| Inflation at -1.74%: |
Updated (14/08/2009) |
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The provisional annual rate of inflation, on point to point basis, stood at -1.74% for the week ended 01/08/2009 (over 02/08/2008) as compared to -1.58% for the previous week (ended 25/07/2009) and 12.91% during the corresponding week (ended 02/08/2008) of the previous year. |
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| IIP increased by 7.8% in June 09: |
Updated (13/08/2009) |
The Quick Estimates of Index of Industrial Production (IIP) with base 1993-94 for the month of June 2009 have been released by the Central Statistical Organisation of the Ministry of Statistics and Programme Implementation. The General Index stands at 290.2, which is 7.8% higher as compared to the level in the month of June 2008. The cumulative growth for the period April-June 2009-10 stands at 3.7% over the corresponding period of the pervious year.
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| Inflation at -1.58%: |
Updated (06/08/2009) |
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The provisional annual rate of inflation, calculated on point to point basis, stood at -1.58% for the week ended 25/07/2009 (over 26/07/2008) as compared to -1.54% for the previous week (ended 18/07/2009) and 12.53 % during the corresponding week (ended 26/07/2008) of 2008-09. |
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| India’s trade declines by more than a third in Q1: |
Updated (04/08/2009) |
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During the first quarter (April-June) total trade of India (exports plus imports) amounted to US$86.4 bn as compared to US$ 131.7 bn in the same period last year thereby registering a decline of 34.4%. In rupee terms decline was 23.3% from 548,999 crores to Rs.420,933 crores. |
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| Inflation stays in negative zone: |
Updated (31/07/2009) |
The provisional annual rate of inflation, on point to point basis, stood at -1.54% for the week ended 18/07/2009 (over 19/07/2008) as compared to -1.17 % for the previous week (ended 11/07/2009) and 12.54% during the corresponding week (ended19/07/2008) of the previous year.
The official Wholesale Price Index for 'All Commodities' (1993-94 = 100)for the week ended 18th July 2009 rose by 0.04% to 236.8 from 236.7 for the previous week.
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| RBI keeps rates steady: |
Updated (28/07/2009) |
On 28th July 2008, the Reserve Bank of India (RBI) announced the first quarter review of monetary policy 2009-10. As a policy matter, RBI decided to keep all the policy rates and reserve ratios unchanged. Accordingly:
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| Core industries grow by 6.5% in June ’09: |
Updated (24/07/2009) |
The provisional index of Six core industries (Crude Oil, Petroleum Refinery Products, Coal, Electricity, Cement and Finished steel) having a combined weight of 26.75% in the Index of Industrial Production (IIP:1993-94=100) stood at 251.6 in June 2009 registering a growth of 6.5% compared to a growth of 5.1% in June 2008. During April-June 2009-10, six core industries registered a growth of 4.8% as against 3.5% during the corresponding period of the previous year.
Segment-wise growth rates of the core sector are given below.
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| Inflation at -1.17: |
Updated (24/07/2009) |
The provisional annual rate of inflation, on point to point basis, stood at -1.17% for the week ended 11/07/2009 (over 12/07/2008) as compared to -1.21% for the previous week (ended 04/07/2009) and 12.13% during the corresponding week (ended 12/07/2008) of 2008-09
The official Wholesale Price Index for 'All Commodities' (1993-94 = 100) for the week ended 11th July 2009 rose by 0.1% to 236.7 from 236.4 for the previous week.
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| Inflation in negative zone: |
Updated (17/07/2009) |
The provisional annual rate of inflation, on point to point basis, stood at -1.21 %) for the week ended 04/07/2009 (over 05/07/2008) as compared to -1.55% for the previous week (ended 27/06/2009) and 12.19% during the corresponding week (ended 05/07/2008) of the previous year.
The official Wholesale Price Index for 'All Commodities' (Base: 1993-94 = 100) for the week ended 4th July 2009 rose by 0.7% to 236.4 from 234.7 for the previous week.
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| IIP grows by 2.7% in May 2009. |
Updated (13/07/2009) |
The Quick Estimates of Index of Industrial Production (IIP;1993-94=100) for the month of May 2009 released by the Central Statistical Organisation of the Ministry of Statistics and Programme Implementation indicate improvement. The General Index stood at 281.9, 2.7% higher over the level in the May 2008. The cumulative growth for the period April-May 2009-10 stands at 1.9% over the corresponding period of the pervious year.
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| Inflation continues to be negative: |
Updated (09/07/2009) |
The provisional annual rate of inflation, on point to point basis, stood at -1.55 % for the week ended 27/06/2009 (over 28/06/2008) as compared to -1.30% for the previous week (ended 20/06/2009) and 12.03% during the corresponding week (ended 28/06/2008) of the previous year.
The official Wholesale Price Index for 'All Commodities' (1993-94 = 100) for the week ended 27th June 2009 rose by 0.04% to 234.7 from 234. for the previous week.
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| UNION BUDGET 2009-10: SOME HIGHLIGHTS |
Updated (06/07/2009) |
Background:
Union Finance Minister Mr.Pranab Mukherjee presented the budget for the Financial Year 2009-10. Two important things to be noted are: first, the budget is for only nine months and second, it was prepared against a backdrop of international financial meltdown and recessionary conditions in certain segments of the domestic economy.
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| Railway Budget 2009-10 |
Updated (03/07/2009) |
Union Railway Minister Mamata Banerjee presented the Railway Budget for 2009-10 on Friday the 3rd July 2009. Highlights of the Railway Budget are as follows.
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| Economic Survey 2008-09: |
Updated (02/07/2009) |
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The Finance Minister Pranab Mukherjee on Thursday (2nd July 2009) tabled the Economic Survey for 2008-09 in the parliament. Following are the highlights. |
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| Negative inflation continues: |
Updated (02/07/2009) |
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The provisional annual rate of inflation, calculated on point to point basis using Wholesale Price Index (WPI), stood at -1.30% for the week ended 20th June 2009 (over 21st June 2008 ) as compared to -1.14% for the previous week (13th June 2009) and 11.91 % during the corresponding week (ended 21st June 2008) of 2008. |
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| Decline In Foreign Trade Continues: |
Updated (02/07/2009) |
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India’s exports during May, 2009 were valued at US $ 11.01 billion (Rs. 53435 crore) which was 29.2% lower in dollar terms (18.4% in Rupee terms) than the level of US$ 15.55 billion (Rs.65506 crore) during May,2008. Cumulative value of exports for the period April- May, 2009 was US$ 21.75 billion (Rs. 107214 crore) as against US $ 31.63 billion (Rs. 129846 crore) registering a negative growth of 31.2% in Dollar terms and 17.4% in Rupee terms over the same period last year. |
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| Core industries grow by 2.8%: |
Updated (01/07/2009) |
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The provisional index of six core industries (Crude Oil, Petroleum Refinery Products, Coal, Electricity, Cement and Finished steel) having a combined weight of 26.7% in the Index of Industrial Production (IIP:1993-94=100) stood at 250.1 in May 2009 registering a growth of 2.8% compared to a growth of 3.1% in May 2008. |
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| Inflation remains in negative zone: |
Updated (26/06/2009) |
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The provisional annual rate of inflation, calculated on point to point basis, was -1.14 % for the week ended 13th June 2009 (over 14th June 2008 ) as compared to -1.61% for the previous week (ended 6th June 2009 ) and 11.8% during the corresponding week (ended14th June 2008) of the previous year. |
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| Inflation turns negative: |
Updated (18/06/2009) |
The provisional annual rate of inflation, calculated on point to point basis, stood at
-1.61% (negative) for the week ended 6th June 2009 (over 7th June 2008) as compared to 0.13 % for the previous week (ended 30th May 2009) and 11.66% during the corresponding week of the previous year.
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| Positive Growth of Industry in April ’09: |
Updated (12/06/2009) |
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The Quick Estimates of Index of Industrial Production (IIP:1993-94=100) for the month of April 2009 were released by the Central Statistical Organisation(CSO) on 12th June 2009. The General Index stood at 270.1, which is 1.4% higher as compared to the level in the month of April 2008. The revised annual growth for the period April-March 2008-09 stands at 2.6% over the corresponding period of the pervious year. |
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| Inflation at 0.13%: |
Updated (12/06/2009) |
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The provisional annual rate of inflation, calculated on point to point basis, stood at 0.13% for the week ended 30th May 2009 (over 31st May 2008) as compared to 0.48% for the previous week (23rd May 2009 ) and 9.32% during the corresponding week (31st May 2008) of 2008 |
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| Inflation at 0.48% |
Updated (04/06/2009) |
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Annual inflation for the week ended May 23,2009 measured in terms of Wholesale Price Index (WPI:1993-94=100 ) stood at 0.48% as compared to 0.61% in the previous week. |
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| Core industries’ growth improves: |
Updated (04/06/2009) |
The provisional index of Six core industries having a combined weight of 26.7% in the Index of Industrial Production (1993-94 =100) stood at 243.0 in April 2009 registering a growth of 4.3% compared to a growth of 2.3% in April 2008.
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| Foreign trade declines in April 2009: |
Updated (02/06/2009) |
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Exports during April, 2009 were valued at US $ 10.7 billion (Rs.53779 crore) which was 33.2% lower in dollar terms (16.4% in Rupee terms) than the level of US$ 16.1 billion (Rs.64340 crore) during April,2008. |
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| GDP Revised Down to 6.7%: |
Updated (29/05/2009) |
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Revised estimates of annual national income for the financial year 2008-09 were released by Central the Central Statistical Organisation (CSO), Ministry of Statistics and Programme Implementation, on 29th May 2009. Also, the estimates for 4th quarter (January-March) of 2008-09, were announced. |
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| Inflation steady at 0.61%: |
Updated (29/05/2009) |
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The provisional annual rate of inflation, calculated on point to point basis, remained unchanged at its previous week’s level of 0.61% for the week ended 16th May 2009 (over 17th May 2008) as compared to 8.66% during the corresponding week of the previous year. |
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| Inflation at 0.61%: |
Updated (21/05/2009) |
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The provisional annual rate of inflation, calculated on point to point basis, stood at 0.61% for the week ended 9th May 2009 (over 10th May 2008) as compared to 0.48% for the previous week (ended 2nd May 2009) and 8.57% during the corresponding week of the previous year (10th May 2008). |
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| Inflation rate down to 0.48%: |
Updated (14/05/2009) |
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The provisional annual rate of inflation, calculated on point to point basis, stood at 0.48% for the week ended 2nd May 2009 (over 3rd May 2008) as compared to 0.70% for the previous week (ended 25th April 2009) and 8.73 % during the corresponding week of the previous year (ended 3rd May 2008). |
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| Sharp decline in IIP growth in 2008-09: |
Updated (13/05/2009) |
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The Quick Estimates of Index of Industrial Production (IIP) with base 1993-94 for the month of March 2009 released by the Central Statistical Organisation of the Ministry of Statistics and Programme Implementation indicated a fall of 2.3% over the corresponding month of 2008. The general index stood at 297.9. The cumulative growth for the period April-March 2008-09 stands at 2.4% as compared to 8.5% during 2007-08. |
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| Inflation rate moves up to 0.70%: |
Updated (08/05/2009) |
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The provisional annual rate of inflation, calculated on point to point basis, stood at 0.70% for the week ended 25th April, 2009 (over 26th April 2008) as compared to 0.57% for the previous week (ended 18th April 2009) and 8.27%during the corresponding week (ended 26th April 2008) of the previous year. |
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| Inflation up at 0.57%: |
Updated (07/05/2009) |
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The provisional annual rate of inflation, calculated on point to point basis, stood at 0.57% for the week ended 18th April 2009 (over 19th April 2008) as compared to 0.26% for the previous week (ended 11th April 2009) and 8.23 % during the corresponding week of the previous year. (ended 19th April 2008) |
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| 2008-09 - Exports Up by 3.4% and Imports 14.3%: |
Updated (04/05/2009) |
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Cumulative value of India’s exports during FY 2008-09 was US $ 168704 million (Rs.766935 crore) as against US $ 163132 million (Rs.655863 crore) last year thereby registering a growth of 3.4% in dollar terms and 16.9% in Rupee terms. However, exports during March 2009 were down by 33.3% at US $ 11516 million over the corresponding period of the last year. In rupee terms, exports touched Rs.58997 crore, which was 15.3% lower than the value of exports during March, 2008. |
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| Inflation moves up slightly to 0.26%: |
Updated (24/04/2009) |
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The provisional annual rate of inflation, calculated on point to point basis, stood at 0.26% for the week ended 11th April 2009 (over 12th April 2008) as compared to 0.18% for the previous week (ended 4th April 2009) and 7.95%during the corresponding week (ended12th April 2008) of the previous year. |
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| Repo and Reverse Repo Rate cut by 0.25%: |
Updated (21/04/2009) |
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On 21st April 2009 the Reserve Bank of India announced Annual Policy Statement for 2009-10. Considering the ongoing deceleration of economic growth coupled with moderating inflationary impact the RBI announced following monetary measures. |
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| Inflation down at 0.18%: |
Updated (16/04/2009) |
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The provisional annual rate of inflation, calculated on point to point basis, stood at 0.18 % for the week ended 4th April 2009 (over 5th April 2008) as compared to 0.26 % for the previous week (ended 28th March 2009) and 7.71% during the corresponding week of the previous year. |
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| IIP down by 1.2% in Feb ’09: |
Updated (09/04/2009) |
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The Quick Estimates of Index of Industrial Production (IIP) with base 1993-94 for the month of February 2009 have been released by the Central Statistical Organisation of the Ministry of Statistics and Programme Implementation. |
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| Inflation at 0.26%: |
Updated (09/04/2009) |
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The provisional annual rate of inflation, calculated on point to point basis, stood at 0.26% for the week ended 28th March 2009. This compared with 0.31% inflation in the previous week ending 21st March 2009 and 7.75% during the corresponding week of the previous year (ended 29th March 2008). |
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| Marginal rise in inflation rate: |
Updated (02/04/2009) |
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The annual rate of inflation, calculated on point to point basis, stood at 0.31% for the week ended March 21 2009 (over March 22, 2008) as compared to 0.27% for the previous week (ended 14 March 2009) and 7.85% during the corresponding week (ended 22 March 2008) of the previous year. |
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| Foreign trade shrinks in February 2009: |
Updated (02/04/2009) |
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India’s exports (including re-exports) declined by 21.7% in February 2009 to US$ 11913 million from US $ 15221 million during February, 2008. In rupee terms, exports touched Rs. 58,685 crore, which was 3.0% lower than the value of exports during February, 2008. |
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| Inflation falls to 0.27%: |
Updated (26/03/2009) |
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Rate of inflation measured in terms of wholesale Price Index (WPI) on point-to-point basis fell to 0.27% during the ended March 14 2009. |
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| US interest rates unchanged: |
Updated (19/03/2009) |
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In light of increasing economic slack within the domestic US economy and abroad the Federal Open Market Committee expects that inflation to remain subdued. |
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| Inflation Rate Down At 0.44%: |
Updated (19/03/2009) |
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The provisional annual rate of inflation, calculated on point to point basis, stood at 0.44% for the week ended 7th March 2009 as compared to 7.78% during the corresponding week of the previous year (8th March 2008). |
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| Core Industries Growth Down in January ‘09: |
Updated (12/03/2009) |
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In January 2009, six core industries (crude oil, petroleum refinery products, coal, electricity, cement and finished steel) registered a growth of 1.4% (provisional) as compared to 3.6% in January 2008. |
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| Inflation Down to 2.43%: |
Updated (12/03/2009) |
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The provisional annual rate of inflation based on Whole Price Index (WPI), calculated on point to point basis, stood at 2.43% for the week ended 28th February,2009 |
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| Industrial growth Negative in January ’09: |
Updated (12/03/2009) |
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Industrial production declined by 0.5% in January 2009, the contraction being for the second consecutive month in spite of stimulus packages announced by the government to provide boost to the sagging economy. |
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| Inflation down to 3.03%: |
Updated (05/03/2009) |
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The provisional annual rate of inflation, calculated on point to point basis, stood at 3.03% for the week ended 21st February, 2009 as compared to 5.69% during the corresponding week (ended 23rd February, 2008) of the previous year. |
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| Repo and Reverse Repo Rates Cut by 50 bps: |
Updated (05/03/2009) |
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Considering the current global and domestic macroeconomic situation, the Reserve Bank has decided to reduce both repo rate (the rate at which the RBI lends to banks) and reverse repo rate (the rate at which liquidity is absorbed) by 50 basis points each with immediate effect. |
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| Foreign Trade Growth Shrinks in January ‘09: |
Updated (03/03/2009) |
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As per the latest data released by the Ministry of Commerce, exports in January 2009 were valued at US$ 12,381 million as compared to US$ 14,717 million in the same period last year indicating 15.9% fall. |
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| Third Quarter GDP Growth Declines Sharply |
Updated (27/02/2009) |
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As per the latest estimates of the Central Statistical Organisation (CSO), India’s Gross Domestic Product (GDP at factor cost) growth in real terms, for the third quarter (October-December) of 2008-09, has declined sharply. |
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| Inflation at 3.36%: |
Updated (26/02/2009) |
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The provisional Year-on-Year rate of inflation based on official Wholesale Price Index (WPI) for all commodities’ (1993-94 = 100) for the week ended 14th February, 2009 declined to 3.36% |
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| Rs.30,000 Crore Third Fiscal Stimulus Package Announced: |
Updated (25/02/2009) |
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On 24th February 2009 the government announced a fresh fiscal stimulus package to prop up the slowing economy by cutting excise duty by 2% on all the items that currently attract the duty of 10% (mainly including vehicles, metals, soap, detergents and white goods) and service tax also by 2% across the board. Finance Minister Pranab Mukherjee also announced a cut in excise duty on bulk cement by 2% or Rs. 60 per metric tonne, whichever is higher. |
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| Inflation at 13-month low of 3.92%: |
Updated (19/02/2009) |
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Rate of inflation for the week ended February 7, 2009 declined to reach a 13-month low at 3.92% as against 4.39% in the previous week. |
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| Interim Union Budget 2009-10 |
Updated (16/02/2009) |
Budget highlights:
This is an interim budget before the general elections. Keeping that in mind the Finance Minister (FM) did not announce any major fiscal package or tax change. |
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| Interim Railway Budget 2009-10: |
Updated (13/02/2009) |
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On 13th February,2009 the Railway minister Mr.Lalu Prasad Yadav presented the interim railway budget for the Financial year (FY) 2009-10. |
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| Inflation down to 4.39%: |
Updated (13/02/2009) |
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The official annual rate of inflation measured by Wholesale Price Index for ‘All Commodities’ (Provisional ; 1993-94 = 100) for the week ended 31st January, 2009 declined to 4.39% as compared to 5.07% last year |
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| IIP down by 2% in Dec. ‘08: |
Updated (12/02/2009) |
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After declining for the first time in 15 years in October 2008, industrial production (Index of Industrial Production) again registered a negative growth of 2.0% in December 2008. |
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| Economy to grow by 7.1% : |
Updated (10/02/2009) |
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According to the Advanced Estimates released by the Central Statistical Organization (CSO) on 9th February, 2009, the India’s Gross Domestics Product (GDP) is expected to grow by 7.1% (in real terms) during the current financial year. |
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| UK Bank Rate at historic low: |
Updated (06/02/2009) |
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On 5th February 2009, the Bank of England’s Monetary Policy Committee reduced the official Bank Rate paid on commercial bank reserves by 0.5 percentage points to 1.0%. this is the lowest level of the bank rate since establishment of BOE in 1694. |
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| Inflation subsides: |
Updated (06/02/2009) |
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The annual rate of inflation measured in terms of Wholesale Price Index for all commodities’ (Provisional 1993-94 = 100) for the week ended 24th January, 2009 declined to 5.07%. |
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| World economy to grow by 0.5% in 2009: |
Updated (05/02/2009) |
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According to the IMF’s (International Monetary Fund) latest update of World Economic Outlook, world economic growth is projected to fall to 0.5% in 2009, its lowest rate since World War II. Despite wide-ranging policy actions, financial strains remain acute, pulling down the real economy |
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| Half a million jobs lost in India: |
Updated (05/02/2009) |
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According to a recent survey conducted by the Labour Bureau of Ministry of Labour, the global recessionary trends have led to loss of 500,000 jobs in India during the three months period October-December 2008. |
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| Core industry growth down: |
Updated (03/02/2009) |
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In December 2008, six core industries (crude oil, petroleum refinery products, coal, electricity, cement and finished steel having a total weight of 26.68% in Index of Industrial Production) registered a year-on-year growth of 2.3%% in December 2008 as compared to 3.2% in the corresponding period of 2007 |
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| Exports down by 1.1% |
Updated (03/02/2009) |
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According to the latest data released by Ministry of Commerce and Industry, India’s exports declined during December, 2008. |
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| Inflation up again 5.64% |
Updated (30/01/2009) |
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Wholesale Price Index for ‘All Commodities’ (Provisional,1993-94 = 100) for the week ended 17th January, 2009 rose by 0.2 percent to 230.5 from 230.0 for the previous week. |
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| Fed rate unchanged: |
Updated (29/01/2009) |
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On 28th January 2009, the Federal Open Market Committee (FOMC) decided to keep its target range for the federal funds rate unchanged at 0 to 0.25%. |
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| Fuel prices slashed |
Updated (29/01/2009) |
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With effect from Wednesday mid-night the Government reduced the price of petrol by Rs.5 per liter |
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| RBI keeps rates unchanged: |
Updated (27/01/2009) |
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On 27th January,2009 the Reserve Bank of India announced the third quarter review of monetary policy for 2008-09. Under that the RBI Governor Dr. D. Subbarao kept all the major monetary rates unchanged. |
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| Inflation inches up to 5.60%: |
Updated (22/01/2009) |
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The provisional annual rate of inflation, on point to point basis, stood at 5.60% for the week ended 10thJanuary, 2009 (over 12th January 2008). |
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| New tariff regulations for power sector: |
Updated (21/01/2009) |
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On 20th January 2009, the Central Electricity Regulatory Commission (CERC) issued new tariff regulations for power generating and transmission companies/projects. |
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| No collateral for loans upto Rs.5 lakh |
Updated (21/01/2009) |
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The Reserve Bank of India (RBI) has directed all scheduled commercial banks, Regional Rural Banks and local area banks not to demand any collateral security from Micro and Small Enterprises |
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| Rate of inflation down to 5.24% |
Updated (15/01/2009) |
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Wholesale Price Index for ‘All Commodities’ (Provisional, 1993-94 = 100) for the week ended 3rd January, 2009 declined by 0.2 percent |
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| Core industries grow by 3.6% |
Updated (13/01/2009) |
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Six core industries (crude oil, petroleum refinery products, coal, electricity, cement and finished steel having a total weight of 26.68% in Index of Industrial Production) |
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| IIP up by 2.4% |
Updated (12/01/2009) |
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Index of Industrial Production (1993-94=100) registered 2.4% growth in November 2008 as compared to 4.9% in the corresponding month of 2007. |
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| Rail Revenue Up 13.87% |
Updated (12/01/2009) |
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The Indian Railways registered 13.9% growth in the revenues to Rs.57, 864 cr during the nine months period (April-December) of current financial year. |
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| NRIs Remit $25.8 bn. |
Updated (07/01/2009) |
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According to the latest RBI data NRI remittances during the first half of the current financial year |
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| |
Sensex
(07.09.10) |
18645.06 |
| |
(85.01) |
Nifty
(07.09.10) |
5604 |
| |
(27.05) |
Dow Jones
(03.09.10) |
10447.93 |
| |
(127.83) |
Nikkei-225
(03.09.10) |
9114.13 |
| |
(51.29) |
| |
| WPI (July 2010) |
262.5 |
| |
(9.97) |
| M3growth (%y-o-y) |
14.7 |
| Repo-Rate (%) |
5.75 |
| Reverse-Repo(%) |
4.5 |
| CRR |
6 |
| Rs./U$ (06.09.10) |
46.71 |
| |
(-0.23) |
| Foreign Exchange Reserves (as on 30.07.2010 US $ Bn.) |
284.2 |
| Brent (U$/bbl.) (06.09.10) |
77.14 |
| |
(1.46) |
| |
| * |
Figures in bracket indicates change over previous value. In case of WPI it is y-o-y change. |
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