ASSOCHAM Economic Weekly 26 th October, 2014 Assocham Economic Research Bureau THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIA
Contents 1. Macroeconomy 1.1 All-India Consumer Price Index Numbers for Agricultural and Rural Labourers, September 2014 1.2 Recommendation of DRISHTI report to Finance Minister 1.3 Status of Foreign Direct Investment proposals, 16 th September 2014 2. Corporate Sector 2.1 Mineral Production during August 2014 2.2 Streamlining the Procedure for Grant of Industrial Licenses 2.3 Metals and Agri. Commodities market spot prices 3. Market Trends 4. Global Developments 4.1 Euro Area and EU28 Government Deficit 4.2 UK, Gross Domestic Product Preliminary Estimates, Q3 2014 5. Data Appendix Advertisement Opportunities
1. Macroeconomy 1.1 All-India Consumer Price Index Numbers for Agricultural and Rural Labourers, September 2014 The All-India Consumer Price Index Numbers for Agricultural Labourers and Rural Labourers (Base: 1986-87=100) for September, 2014 increased by 3 points each to stand at 811 (Eight hundred and eleven) points and 813 (Eight hundred and thirteen) points respectively. Point to point rate of inflation based on the CPI-AL and CPI-RL decreased from 7.16% and 7.57% in August, 2014 to 6.85% and 7.11% in September, 2014. Inflation based on food index of CPI- AL and CPI-RL are 5.73% and 5.98% respectively during September, 2014. The rise/fall in index varied from State to State. In case of Agricultural Labourers, it recorded an increase between 1 to 14 points in 17 States and it recorded a decrease between 1 to 3 points in 3 States. Haryana with 901 points topped the index table whereas Himachal Pradesh with the index level of 666 points stood at the bottom. GDP growth rate at factor cost (at 2004-05 prices) 8 7 7 6 6 5 5 4 4 3 GDP Growth Rate 7.2 6.6 6.1 5.7 5.4 5.2 4.5 4.6 4.7 4.4 4.4 4.6 4.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011-12 2012-13 2013-14 2014-15 10 8 6 4 2 0-2 Agriculture & allied Industry Sevices 7.2 7.2 6.3 6.4 4.0 5.0 3.7 6.3-0.1 2.8-0.4-0.2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011-12 2012-13 2013-14 2014-15
Aug Sep Oct Nov Dec Jan Feb March Aug Sep Oct Nov Dec Jan Feb March Aug Sep Oct Nov Dec Jan Feb March In case of Rural Labourers, it recorded an increase between 1 to 14 points in 18 States and it recorded a decrease between 1 to 3 points in 2 States. Haryana with 894 points topped the index table whereas Himachal Pradesh with the index level of 705 points stood at the bottom. Gujarat State for Agricultural Labourers and Rural Labourers registered the maximum increase of 14 points each mainly due to increase in the prices of wheat-atta, jowar, pulses, fish fresh, milk, vegetables & fruits, gur, firewood, cinema ticket, barger charges and washing soap. West Bengal State for Agricultural Labourers and Rural Labourers registered the maximum decrease of 3 points each mainly due to decrease in the prices of rice and firewood. Please refer Table 1 Table 1 All-India Consumer Price Index Number (General & Group-wise) Group Agricultural Labourers Rural Labourers, 2014 Sept., 2014, 2014 Sept., 2014 General Index 808 811 810 813 Food 791 794 795 797 Pan, Supari, etc. 1135 1146 1144 1156 Fuel & Light 885 891 882 888 Clothing, Bedding & Footwear 790 794 796 804 Miscellaneous 761 766 758 764 Source: Labour Bureau, Ministry of Labour and Employment 1.2 Recommendation of DRISHTI report to Finance Minister The Government constituted a High Powered Committee (HPC) on DRISHTI -(Driving Information System for Holistic Tax Initiatives) in February 2014. 5.9 5.2 4.8 4.6 All commodities 7.07.0 7.27.5 6.4 6.0 6.0 5.5 5.45.4 5.15.0 3.7 2.4 5.1 5.7 8.8 9.7 WPI Primary articles 13.6 14.014.615.3 10.8 6.8 6.3 7.37.0 8.6 6.86.8 3.9 2.2 Core inflation 3.6 3.9 3.73.63.73.7 3.23.2 3.2 2.8 2.4 2.1 2.22.2 2.42.82.9 2.5 2013-14 2014-15 2013-14 2014-15 2013-14 2014-15
Oct. Nov. Dec. Jan. Feb. March Oct. Nov. Dec. Jan. Feb. March On 21 st October, 2014, the Committee submitted its Report on DRISHTI to Finance Ministry, Govt. of India. The Report, after examining the existing business processes and the current status of IT Systems in CBEC, has highlighted the areas for improvement. The recommendations of the Committee aim at leveraging IT for improving the quality and extent of taxpayer services, encouraging voluntary tax compliance and detecting tax evasion. The Strategic Recommendations of the Committee include the following: Creation of National Taxpayer Services Directorate, National Assessment Centre for Customs & National Processing Centre for Central Excise & Service Tax Returns, National Targeting Centre & Directorate of International Customs Setting up of specialised function-based units for Data Analytics & Business Intelligence, Tax Dispute Resolution and Litigation, BPR, etc Leveraging Service Oriented Architecture for IT Applications Merging different Customs IT Applications into a Single System Enabling Mobility solutions in Business Workflows Introduction of Entity-based Risk Management System Introduction of IT Centric HR Policy 1.3 Status of Foreign Direct Investment proposals, 16 th September 2014 CPI CPI Combined 9.9 9.4 8.8 8.0 8.3 8.6 8.3 7.8 7.3 6.5 17 15 13 11 9 7 5 Rural Urban 11.7 10.5 9.3 8.4 8.9 9.2 9.9 8.9 10.5 8.3 7.7 9.1 6.7 8.1 8.5 7.6 7.5 7.7 7.6 6.8 7.0 6.3 2013-14 2014-15 2013-14 2014-15
Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on September 16, 2014, the Government has approved twenty (20) proposals of Foreign Direct Investment amounting to Rs. 988.3 crore approximately. Please refer Table 2, 3, 4 and 5 Sl. No. Table 2 Approved FDI Proposals Name of the applicant Gist of the proposal Proposed amount of FDI (in Rs. Crore) 1 M/s Bharti Shipyard Ltd., Mumbai (No.187/2011- FC.I) 2 M/s Solar Industries India Limited, Nagpur (No. 86/2014-FC.I) 3 M/s Hatsoff Helicopter Training Pvt Ltd, Bangalore (No. 112/2014-FC.I) 4 M/s Verizon Communications India Private Limited [No. FC.II 39/2002] 5 M/s Ironman Media and Advisory Services Private Ltd. (No. 11/SIA/NFC/2014) 6 M/s Axes Studios LLP (No.10/SIA/NFC/2014-FC I) 7 M/s MapfreAsistencia Camp A+ Aa International de SegurosYReaseguros, SA(No. 245/2013-FC.I) 8 M/s Instant Global Money Transfer Private Limited (No. 78/2014-FC.I) 9 M/s GETCO Asia Pte. Ltd., Singapore (No. FC.II: 156/2011) 10 M/s Equitas Holdings Private Limited, Tamil Nadu (No. FC.II- 236/2011) 11 M/s ANZCapital Pvt. Ltd. (FC.II: 121/2001) M/s Bharati Shipyard Limited, Mumbai (Investee Company) which has existing FII and NRI investments has proposed to undertake additional defence activities along with its existing activities. M/s Solar Industries Limited, which has minimal investment FII/NRI investment, has sought approval for undertaking additional activity of manufacturing defence products. Post facto approval has been sought by M/s Hatsoff Helicopter Training Pvt Ltd for the issue of shares against interest money accrued on the foreign remittance received by it from the foreign investor. Nil Nil Rs. 5.6 Crore Sector Defence Defence Civil Aviation M/s Verizon Communications India Private Limited, engaged Rs. 2.32 Crore Telecom in telecom sector, is seeking approval to increase foreign equity participation by its foreign parent from 74% to 100%. M/s Ironman Media and Advisory Services Private Ltd. has Rs. 0.30 Crore Print Media sought approval to issue shares for the amount received as FDI. M/s Axes Studios LLP has sought approval to accept NRI investment from Mr. Gunjan Dhirendra Chag, NRI, UK. Permission for incorporating a WoS in India for providing software related services and also act as Corporate Agent to an Indian Insurer by Soliciting and Procuring Insurance business as Corporate Agent. M/s Instant Global Money transfer Private Limited, Punjab is seeking post facto approval for partly paid shares issued to the M/s Trans-Fast Remittance LLC, New York against FDI. Approval sought by a wholly foreign owned company for setting up a downstream subsidiary to be engaged in the business of commodities broking, commodities trading and providing liquidity to the commodities market. Approval has been sought by M/s Equitas Holdings Private Limited for downstream investment in its wholly owned subsidiaries by its existing and new foreign shareholders hereby increasing the foreign equity from 91.30% to 93.12% M/s ANZ Capital Private Limited is seeking approval for removal of the condition prescribed in the FC approval. Rs. 0.99 Crore IT Rs. 1.70 Crore (US$ 0.275 million) Insurance Rs. 0.15 Crore NBFC Nil NBFC Rs. 325 Crore Investing Company Nil NBFC
12 M/s Medipass SRL, Italy (No. 83/2014-FC.I) 13 M/s Intas Pharmaceuticals Limited, Ahmedabad [No. FC.II 334/2005] 14 M/s. Koye Pharmaceutical Private Limited (No. 41/2014-FC.I) 15 M/s Amneal Pharmaceuticals Company India Pvt. Ltd. (No. 67/2014-FC-I) 16 M/s Fresenius Kabi Oncology Limited, New Delhi (No. 89/2014-FC.I) 17 M/s Ferring Pharmaceuticals Pvt. Ltd. (FC.II 456/1996) 18 M/s Indusind Bank Ltd. (591/FC/93/NRI-FC I) 19 M/s Dymak India Services Limited Liability Partnership, Uttar Pradesh (No. 85/2014-FC.I) 20 M/s Tara India Fund IV Trust, Mumbai (No. 102/2014-FC.I) Source: DIPP Approval is sought by Medipass SRL, an Italian company for the acquisition of 85.19% stake in the share capital of M/s Clearview Healthcare Private Limited, an investing company with downstream investment in health sector. M/s Intas Pharmaceuticals Limited, an Indian pharmaceuticals company, seeking approval for NR to NR transfer of 10.16% its shares. M/s Koye Pharmaceuticals Private Limited, a brownfield Pharmaceuticals company, has sought permission to issue additional 1,818 CCPS, 15constituting up to 6.81% of the share capital of the company on a post-issuance and fully diluted basis, to the already existing investor M/s SCI Growth Investments II, Mauritius. M/s Amneal Pharmaceuticals Company Private Limited, a foreign owned and controlled company, is seeking approval for acquisition of entire share capital of Epsilon, through a share purchase agreement a company engaged in trading of generic pharma products and in process of setting up formulation manufacturing facility. Approval has been sought for issuance of equity shares for an aggregate consideration of Rs. 119 Crore to increase foreign shareholding from 96.22% to 96.483% of its parent company. M/s Ferring Pharmaceuticals Private Limited is seeking post facto approval for the investment made by Ferring BV (foreign company) into M/s Ferring Pharmaceuticals Pvt. Ltd for onward downstream investment in its WoS M/s Ferring Therapeutics Pvt. Ltd., prior to approval of FIPB. the applicant has sought approval for increase in foreign investment in IBL to 74% with a specific request to grant postfacto approval for increase in foreign holding from 68.51% to 72.07% on 30.06.2014 Post Facto approval has been sought by M/s Dymak India Services LLP for foreign contribution of Rs. 44,53,523 to acquire 80% stake in the Indian LLP by M/s Dymak A/S CVR 1975 7803. M/s Tara India Fund IV Trust seeking permission for investment upto US$45 million by subscribing to the units of the applicant and category B investors to invest up to US $ 5 million in the units of TARA Fund. Table 3 Deferred FDI Proposals Rs. 15.11 Crore Nil Pharma Pharma Rs. 7.50 Crore Pharma UptoRs. 205 Crore Pharma Rs. 119 Crore Pharma Nil Pharma Not indicated Banking Private Sector Nil Rs 305.63 Crore (US$ 50 million) Whole Sale Trading Investing Company Sl. Name of the applicant Gist of the proposal Sector No. 1 M/s Pureplay Investment Proposal for FDI by M/s Pureplay Investment Partners Mauritius in:(a) Telecom Partners, Mauri- tius (No. FC.I- 270/2013) upto 74% in M/s Indiverse Broadband Private Limited, an existing company engaged in the cable television networks business and undertaking up - gradation of networks towards digitization and addressability (b) 49% in (JVC-I) and 49% in (JVC-2) (both JVC will be act as investing company). 2 M/s ASV Europa Security Private Limited, Secunderabad (No. 91/2014-FC.I) M/s ASV Europa Security Private Limited, Secunderabad seeking permission for receiving 49% foriegn investment in Security Services and Man Power recruitment & training services by way of transfer of shares from its current Indian Shareholder. Private Security Agencies
3 M/s Halyard Health Inc., USA (No. 109/2014-FC.I) 4 M/s BeloorBayir Biotech Limited, Bangalore (No. 111/2014- FC.I) Approval has been sought by M/s Halyard Health, Inc, USA, WoS of Kimberley Clark group to set up a new company in India to be engaged in import and sale of healthcare products on Wholesale business and transfer of some assets from one WoS to the new company. M/s BeloorBayir Biotech Limited Bangalore, with 22.55% foreign investment (on a fully diluted basis) by M/s India Agri Business Fund Ltd. Mauritius proposes to acquire, by way of merger, the entire share capital of M/s Bayir Chemicals India Private Limited, Bangalore and M/s Sneha Nutura India Private Limited, both companies being engaged in pharmaceuticals sector. Pharma Phrma 5 Mr. Anurag Kumar (No. 12/SIA/NFC/2014) 6 M/s Tevapharm India Pvt. Ltd. [FC.II 35(2001)/45(2001)] 7 M/s GMU InfosoftPvt. Ltd. (No. 17/SIA/NFC/2011-FC I) 8 M/s U InfosoftPvt. Ltd. ( No. 16/SIA/NFC/2011-FC I) Source: DIPP The applicant has sought Government approval for acquisition of 100% equity of BPPL. The proposal has been supported by the consent of existing shareholders and Board Resolution of the investee company. A 100% foreign owned Indian brownfield pharma company is seeking approval for additional capital infusion. company proposes to issue 2750 equity shares (1.52% equity) of Rs.10/each, to Mr. Ramneet Singh Rekhi, USA, NRI and 2750 equity shares (1.52% equity) of Rs.10/each to Mr.Sartaj Singh Rekhi, USA, NRI. The company proposes to issue 2750 equity shares (1.52% equity) of Rs.10/each, to Mr. Ramneet Singh Rekhi, USA, NRI and 2750 equity shares (1.52% equity) of Rs.10/each to Mr.Sartaj Singh Rekhi, USA, NRI. Table 4 Rejected FDI Proposals Pharma Pharma Others Others Sl. Name of the applicant Gist of the proposal Sector No. 1 M/s Indus Teqsite Private A JV is proposed to be formed with 26% FDI to undertake defence Defence Limited, Tamil Nadu (No. 261/2013-FC.I) sector activities. 2 M/s. Sistema Shyam Teleservices Ltd. [FC.II 241 (07)/285(07)] Telecom Increases in FDI upto 100% in M/s Sistema Shyam Tele Services Limited and its downstream WoS M/s Shyam Internet Services Limited, both engaged in telecom sector, on account of conversion of Redeemable Preference Shares into equity. 3 M/s Kusum Healthcare Private Limited, New Delhi (No. 92/2014-FC.I) M/s Kusum Healthcare Private Limited, New Delhi, engaged in pharmaceuticals sector, has sought approval for issuing equity shares/ccps/ccds to M/s Upasa Holdings AG, Switzerland, leading to 25% shareholding in the applicant. Pharma 4 M/s BioMerieux India Pvt Ltd., a WoS of M/s BioMerieux France has sought approval for additional downstream investment of 10% (increase from 60% to 70%) in M/s RAS Life sciences Private Limited, a company engaged in brownfield pharmaceutical sector. Postfacto approval for initial investment of 60% would also be required. Pharma
5 M/s HBM Private Equity India (No. 216/2013-FC.I) Approval has been sought by M/s HBM Private Equity India, Mauritius to acquire 7.72% equity shares of M/s Marck biosciences Ltd from IFCI Venture Capital Fund Ltd. This will result in increased foreign equity participation from 49.29% to 57.01%. However there is no change in the holding of the promoter group (80.01%). Pharma Source: DIPP Sl. No. Name of the applicant 1 M/s Kineco Kaman Composites India Pvt. Ltd. (No. FC.I- 100/2013) 2 M/s Xander Finance Pvt. Ltd., Delhi (No. 110/2014-FC.I) Table 5 FDI Proposals not required FIPB Approvals Gist of the proposal M/s Kineco Kaman Composites-India Pvt Ltd, having 26% FDI, proposes to undertake the additional activity of supplying products and research and development services to the defence sector, along with its existing activities. M/s Xander Finance Private Limited, a loan NBFC, with 99.45% FDI from M/s Xander Credit Pte. Limited, Singapore has sought post-facto approval for deployment of temporary surplus funds in debt mutual fund and for making future deployment of temporary surplus funds in debt mutual funds and government bonds. Sector Defence NBFC Source: DIPP
Oct. Nov. Dec. Jan. Feb. March Oct. Nov. Dec. Jan. Feb. March 2. Corporate Sector 2.1 Mineral Production during August 2014 The index of mineral production of mining and quarrying sector for the month of August (new Series 2004-05=100) 2014 at 116.6, was 2.6% higher as compared to August 2013. The cumulative growth for the period - August 2014-15 over the corresponding period of previous year stands at (+) 2.5%. The total value of mineral production (excluding atomic & minor minerals) in the country during August 2014 was Rs. 17264 crore. The contribution of: coal was the highest at Rs. 5508 crore (32%). Next in the order of importance were: Petroleum (crude) Rs. 5496 crore, iron ore Rs. 2467 crore, natural gas (utilized) Rs. 2187 crore, lignite Rs. 414 crore and limestone Rs. 396 crore. These six minerals together contributed about 95% of the total value of mineral production in August 2014. 1.5-2.5-1.8 2.6 0.4 2.0 Overall IIP -0.2 0.8-0.5-1.2-1.3-1.8 3.4 5.0 3.9 0.40.4 IIP Sectoral 20 15 10 5 0-5 -10 11.5 11.9 5.4 2.0 2.6 0.3 2.5-3.6-1.3 15.7 11.7 12.9 6.7 4.5.1 0.7 2.8 2.9 2.5-1.2-1.5 2013-14 2014-15 2013-14 2014-15 Mining Manufacturing Electricity
Oct. Nov. Dec. Jan. Feb. March Oct. Nov. Dec. Jan. Feb. March Production level of important minerals in August 2014 were: coal 435 lakh tonnes, lignite 35 lakh tonnes, natural gas (utilized) 2645 million cu. m., petroleum (crude) 30 lakh tonnes, bauxite 1415 thousand tonnes, chromite 69 thousand tonnes, copper conc. 9 thousand tonnes, gold 96 kg., iron ore 108 lakh tonnes, lead conc. 15 thousand tonnes, manganese ore 156 thousand tonnes, zinc conc. 110 thousand tonnes, apatite & phosphorite 110 thousand tonnes, dolomite 535 thousand tonnes, limestone 227 lakh tonnes, magnesite 25 thousand tonnes and diamond 3676 carat. The production of important minerals showing positive growth during August 2014 over August 2013 include apatite and phosphorite (88.7%), magnesite (77.9%), bauxite (29.6%), lignite (19.6 %), limestone (18.4 %), coal (13.9), iron ore (4.5%) and manganese ore (2.6%). The production of other important minerals showing negative growth are: lead conc. [(-)1.0%], diamond [(-)3.5%], petroleum (crude) [(-) 4.9%], dolomite [(-)6.2%], natural gas (utilized) [(- )8.9%], zinc conc. [(-)15.1%], gold [(-) 23.2%], copper conc. [(-)26.4%] and chromite. [(-) 56.4%]. 2.2 Streamlining the Procedure for Grant of Industrial Licenses a. Increasing the validity period of Industrial License As a measure of ease of doing business, henceforth two extensions of two years each in the initial validity of three years of the Industrial License shall be allowed up to seven years. b. Removal of stipulation of annual capacity in the Industrial License 30 25 20 15 10 5 0-5 -10-15 -20 Basic goods 14.3 23.3 10.0 9.5 1.4-0.3-1.9 1.01.1 5.3-0.4 2.72.52.54.14.47.3 6.4 7.4-4.1 Capital goods -17.5-11.6 4.3-3.9 IIP Used Based -11.2 6 4 2 0-2 -4-6 -8-10 -12 Intermediate goods Consumer goods 4.2 4.9 3.6 3.7 3.4 2.4 3.0 1.6 0.5 3.2-0.5-2.1-4.7-4.1-4.7-7.7-6.9-9.7 2013-14 2014-15 2013-14 2014-15
It has been decided to deregulate the annual capacity for defense items for Industrial License. However, the licensee shall submit half yearly production return to Department of Industrial Policy & Promotion and Department of Defence Production, Ministry of Defence in the prescribed format, to be notified separately. c. Sale of Defence items to Government entities without approval of Ministry of Defence. The Licensee shall be allowed to sell Defence items to Government entities under the control of Ministry of Home Affairs (MHA), State Governments, Public Sector Undertakings (PSUs) and other valid Defence Licensed Companies without prior approval of the Department of Defence Production (DoDP). However, for sale of the items to any other entity, the Licensee shall take prior permission from the Department of Defence Production, Ministry of Defence.
Maize Refined Soy Oil Soyabean Wheat Aluminium Copper Cotton Lead Natural Gas Nickel Tin Zinc Gold Silver 2.3 Metals and Agri. Commodities market spot prices Performance of Metals Market Spot Prices Weekly Changes in % 3.0 2.0 1.0 0.0-1.0-2.0-3.0-4.0-5.0-6.0-0.3 0.6-1.2-0.2-4.4-2.1 0.0 1.8 0.2 1.4 Source: MCX, ASSOCHAM Economic Research Bureau Note: 1. For detail please refer appendix 2. Cotton, Gold and Silver growth rate calculated during 20 th to 22 nd October 2014 Performance Agri Commodities Market Spot Prices 1.0 0.8 0.6 0.4 0.2 0.0-0.2-0.4-0.6-0.8-1.0 Weekly Changes in % 0.2 0.0-0.5 0.3 Source: MCX, ASSOCHAM Economic Research Bureau Note: For detail please refer appendix 2. Growth rate calculated during 20 th to 22 nd October 2014
Rs/USD Rs/Euro Oct. Nov. Dec. Jan. Feb. March Oct. Nov. Dec. Jan. Feb. March 3. Market Trends FII Equity Flows Equity (Rs. Crore) BSE equity All India Equity 30000 25000 20000 15000 10000 5000 0 Buy Sell 120000 110000 100000 90000 80000 70000 60000 50000 40000 30000 Buy Sell 2013-14 2014-15 2013-14 2014-15 Source: BSE and ASSOCHAM Economic Research Bureau Exchange Rate Market Variation 61.8 61.6 61.4 61.2 61.0 60.8 60.6 60.4 60.2 60.0 61.4 77.5 61.5 77.7 61.0 77.7 Rs/USD 61.2 61.2 61.1 77.7 77.6 77.7 61.5 78.7 Rs/Euro 61.6 61.3 61.3 78.9 78.6 78.2 61.2 78.0 79.5 79.0 78.5 78.0 77.5 77.0 1.6 1.5 7th 8th 9th 10th 13th 14th 16th 17th 20th 21st 22nd October 2014 BSE Sensex NSE Source: RBI, BSE, NSE and ASSOCHAM Economic Research Bureau
4. Global Developments 4.1 Euro Area and EU28 Government Deficit In 2013, the government deficit of both the euro area (EA18) and the EU28 decreased in absolute terms compared with 2012, while the government debt rose in both zones. In the euro area the government deficit to GDP ratio decreased from 3.6% in 2012 to 2.9% in 2013 and in the EU28 from 4.2% to 3.2%. In the euro area the government debt to GDP ratio increased from 89.0% at the end of 2012 to 90.9% at the end of 2013 and in the EU28 from 83.5% to 85.4%. In 2013, Luxembourg (+0.6%) and Germany (+0.1%) registered a government surplus and the lowest government deficits in percentage of GDP were recorded in Estonia (-0.5%), Denmark (- 0.7%), Latvia (-0.9%), Bulgaria (-1.2%), Czech Republic and Sweden (both -1.3%). Ten Member States had deficits higher than 3% of GDP: Slovenia (-14.6%), Greece (-12.2%), Spain (-6.8%), the United Kingdom (-5.8%), Ireland (-5.7%), Croatia (-5.2%), Cyprus and Portugal (both -4.9%), France (-4.1%) and Poland (-4.0%). At the end of 2013, the lowest ratios of government debt to GDP were recorded in Estonia (10.1%), Bulgaria (18.3%), Luxembourg (23.6%), Romania (37.9%), Latvia (38.2%), Sweden (38.6%), Lithuania (39.0%), Denmark (45.0%) and Czech Republic (45.7%). Sixteen Member States had government debt ratios higher than 60% of GDP, with the highest registered in Greece (174.9%), Portugal (128.0%), Italy (127.9%), Ireland (123.3%), Belgium (104.5%) and Cyprus (102.2%). In 2013, government expenditure in the euro area was equivalent to 49.4% of GDP and government revenue to 46.5%. The figures for the EU28 were 48.5% and 45.3% respectively. In both
zones, the government expenditure ratio decreased and the government revenue ratio increased between 2012 and 2013. Please refer Table 6 Table 6 Euro area and EU28 government deficit, 2013 2010 2011 2012 2013 (million euro) 9 512 122 9 768 233 9 824 375 9 904 401 (million euro) -583 136-402 045-355 183-284 728 (% of GDP) -6.1-4.1-3.6-2.9 (% of GDP) 50.4 49.0 49.5 49.4 Euro area (EA18) GDP market prices (mp) Government deficit (-) / surplus (+) Government expenditure Government revenue (% of GDP) 44.3 44.9 45.9 46.5 Government debt (million euro) 7 963 305 8 382 213 8 745 689 9 007 692 (% of GDP) 83.7 85.8 89.0 90.9 EU28 GDP mp (million euro) 12 789 847 13 173 430 13 437 315 13 529 837 Government deficit (million euro) -817 808-591 471-569 139-436 721 (-) / surplus (+) (% of GDP) -6.4-4.5-4.2-3.2 Government expenditure (% of GDP) 49.9 48.5 48.9 48.5 Government revenue (% of GDP) 43.5 44.0 44.6 45.3 Government debt (million euro) 10 004 287 10 645 618 11 218 600 11 550 457 (% of GDP) 78.2 80.8 83.5 85.4 Source: Eurostat 4.2 UK, Gross Domestic Product Preliminary Estimates, Q3 2014 Change in gross domestic product (GDP) is the main indicator of economic growth. GDP increased by 0.7% in Q3 2014 compared with growth of 0.9% in Q2 2014. Output increased in all four main industrial groupings within the economy in Q3 2014. In order of their contribution, output increased by 0.7% in services, 0.5% in production, 0.8% in construction and 0.3% in agriculture. GDP was 3.0% higher in Q3 2014 compared with the same quarter a year ago.
In Q3 2014 GDP was estimated to have been 3.4% higher than the pre-economic downturn peak of Q1 2008. From the peak in Q1 2008 to the trough in Q2 2009, the economy shrank by 6.0%. Please refer table 7 2012 2013 2014 Table 7 UK, Gross Domestic Product Preliminary Estimate, Q3 2014 Percentage change on previous quarter GDP GDP Index (2011=100) Agriculture Production Construction Services Weights 1000 6 146 64 784 Q3 101.1 0.8-0.1 0.1-1.1 1.0 Q4 100.8-0.3-0.1-2.0 0.3-0.2 Q1 101.3 0.5-4.4 0.4-0.7 0.6 Q2 102.0 0.7 0.5 0.8 2.5 0.5 Q3 102.8 0.9 0.7 0.7 3.4 0.7 Q4 103.5 0.6 0.6 0.6-0.3 0.7 Q1 104.2 0.7 0.3 0.9 1.8 0.8 Q2 105.2 0.9-0.3 0.2 0.7 1.1 Q3 105.9 0.7 0.3 0.5 0.8 0.7 Source: Office for National Statistics, UK
5. Data Appendix Table 8 Latest Available Financial Information Percentage Change Item Oct. 10, 2014 Oct. 17, 2014 Deposits of Scheduled Commercial Banks with RBI (Rs. Billion) 3,325.91 3,339.07 0.4 Foreign Currency Assets of RBI (Rs. Billion) 17,726.83 17,900.19 1.0 Advances of RBI to the Central Government (Rs. Billion) ------ ------ ----- Advances of RBI to the Scheduled Commercial Banks (Rs. Billion) 570.31 705.40 23.7 Foreign Exchange Reserves (US$ Billion) 312.7 313.7 0.3 Source: RBI, Govt. of India Table 9 BSE Sensex and NSE Nifty Index Index Oct. 20, 2014 Oct. 23, 2014 Percentage Change BSE SENSEX 26,434.2 26,851.1 1.6 S & P CNX NIFTY 7,897.0 8,014.6 1.5 Source: BSE India and NSE India
Table 10 Metals Market Spot Prices Index October 2014 20 th 21 st 22 nd 23 rd 24 th Weekly Changes in % Aluminium 1 KGS 119.8 120.9 121.3 121.5 119.5-0.3 Copper 1 KGS 408.0 403.7 409.2 407.4 410.4 0.6 Cotton 1 BALES 16010.0 15900.0 15810.0 NA NA -1.2 Lead 1 KGS 123.3 122.6 124.8 122.9 123.1-0.2 Natural Gas 1 mmbtu 232.0 224.9 227.5 224.1 221.8-4.4 Nickel 1 KGS 938.5 932.5 931.7 914.7 918.7-2.1 Tin 1 KGS 1188.8 1194.5 1199.5 1195.8 1188.8 0.0 Zinc 1 KGS 136.2 134.1 137.5 136.6 138.6 1.8 Gold 10 GRMS 27246.0 27458.0 27307.0 NA NA 0.2 Silver 1 KGS 37728.0 38382.0 38241.0 NA NA 1.4 Source: MCX Table 11 Agri. Commodities Market Spot Prices Units October 2014 20 th 21 st 22 nd Weekly Changes in % Maize 100 KGS 1155.5 1155.5 1155.5 0.0 Refined Soy Oil 10 KGS 628.5 628.5 625.3-0.5 Soyabean 100 KGS 2985.0 2970.0 2990.0 0.2 Wheat 100 KGS 1620.0 1622.5 1625.0 0.3 Source: MCX
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ASSOCHAM Economic Research Bureau ASSOCHAM Economic Research Bureau (AERB) is the research division of the Associated Chambers of Commerce and Industry of India. The Research Bureau undertakes studies on various economic issues, policy matters, financial markets, international trade, social development, sector wise performance and monitoring global economy dynamics. The main banners of the Bureau are: ASSOCHAM Eco Pulse (AEP) studies are based on the data provided by various institutions like Reserve Bank of India, World Bank, IMF, WTO, CSO, Finance Ministry, Commerce Ministry, CMIE etc. ASSOCHAM Business Barometer (ABB) are based on the surveys conducted by the Research Team to take note of the opinion of leading CEOs, MDs, CFOs, economists and experts in various fields. ASSOCHAM Investment Meter (AIM) keeps the track of the investment announcements by the private sector in different sectors and across the various states and cities. ASSOCHAM Placement Pattern (APP) is based on the sample data that is tracked on a daily basis for the vacancies posted by companies via job portals and advertisements in the national and regional dailies, journals and newspaper. Data is tracked for 60 cities and 30 sectors that are offering job opportunities in India. ASSOCHAM Financial Pulse (AFP) as an analytical tool tracks quarterly financial performance of India Inc; forming strong inter-linkages with the real economy and presents sectoral insights and outlook based on financial indicators, demand signals and corporate dividend activity. Email: research@assocham.com
THE KNOWLEDGE CHAMBER Evolution of Value Creator ASSOCHAM initiated its endeavor of value creation for Indian industry in 1920. It has witnessed upswings as well as upheaval of Indian Economy and contributed significantly by playing a catalytic role in shaping up the Trade, Commerce and Industrial environment of the country. ASSOCHAM derives its strength from the following Promoter Chambers: Bombay Chamber of Commerce and Industry, Mumbai; Cochin Chamber of Commerce and Industry, Cochin; Indian Merchant's Chamber, Mumbai; The Madras Chamber of Commerce and Industry, Chennai; PHD Chamber of Commerce and Industry, New Delhi. VISION Empower Indian enterprise by inculcating knowledge that will be the catalyst of growth in the barrier less technology driven global market and help them upscale, align and emerge as formidable player in respective business segment MISSION As representative organ of Corporate India, ASSOCHAM articulates the genuine, legitimate needs and interests of its members. Its mission is to impact the policy and legislative environment so as to foster balanced economic industrial and social development. We believe education, health, agriculture and environment to be the critical success factors. GOALS To ensure that the voice and concerns of ASSOCHAM are taken note of by policy makers and legislators. To be proactive on policy initiatives those are in consonance with our mission. To strengthen the network of relationships of national and international levels/forums. To develop learning organization, sensitive to the development needs and concerns of its members. To broad-base membership. Knowledge sets the pace for growth by exceeding the expectation, and blends the wisdom of the old with the needs of the present.