Assocham Economic Research Bureau

THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIA

ASSOCHAM Economic Weekly 26th October, 2014

Contents

1. Macroeconomy

1.1 All-India Consumer Price Index Numbers for Agricultural and Rural Labour-

ers, September 2014

1.2 Recommendation of “DRISHTI” report to Finance Minister

1.3 Status of Foreign Direct Investment proposals, 16th

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

GDP growth rate at factor cost (at 2004-05 prices)

7.2

6.6

6.1

5.4

4.5 4.6 4.4 4.44.7

5.2

4.6 4.6

5.7

3445566778

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2011-12 2012-13 2013-14 2014-15

GDP Growth Rate

4.0

5.0

3.76.3

-0.12.8

-0.4 -0.2

7.26.3

7.26.4

-2

0

2

4

6

8

10

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2011-12 2012-13 2013-14 2014-

15

Agriculture & allied Industry Sevices

1. Macroeconomy

1.1 All-India Consumer Price Index Numbers for Agricultural and Rural Labourers, Sep-

tember 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 hun-

dred 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.

WPI

4.84.65.2

5.9

7.07.07.27.5

6.4

5.15.0

6.05.5

6.05.45.4

3.7

2.4

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2013-14 2014-15

All commodities

5.15.7

8.89.7

13.614.014.615.3

10.8

6.86.37.37.0

8.66.86.8

3.92.2

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2013-14 2014-15

Primary articles

2.82.4

2.12.22.22.4

2.82.93.23.2

3.63.93.73.63.73.7

3.2

2.5

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2013-14 2014-15

Core inflation

In case of Rural Labourers, it recorded an increase between 1 to 14 points in 18 States and it rec-

orded 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

Aug., 2014 Sept., 2014 Aug., 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 Infor-

mation System for Holistic Tax Initiatives) in February 2014.

CPI

9.9

8.8

8.0 8.3 8.68.3

7.3

9.4

7.8

6.5

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2013-14 2014-15

CPI Combined

11.7

10.5

9.38.4

8.9 9.2 8.9

7.7

9.9

8.3

6.7

10.5

9.18.1

7.6 7.5 7.7 7.66.8

8.5

7.06.35

7

9

11

13

15

17

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Rural Urban

On 21st 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, encour-

aging 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 Cus-

toms & 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, 16th

September 2014

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 Di-

rect Investment amounting to Rs. 988.3 crore approximately.

Please refer Table 2, 3, 4 and 5

Table 2

Approved FDI Proposals Sl.

No.

Name of the applicant Gist of the proposal Proposed

amount of FDI

(in Rs. Crore)

Sector

1 M/s Bharti Shipyard Ltd.,

Mumbai (No.187/2011-

FC.I)

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.

Nil Defence

2 M/s Solar Industries India

Limited, Nagpur (No.

86/2014-FC.I)

M/s Solar Industries Limited, which has minimal investment

FII/NRI investment, has sought approval for undertaking addi-

tional activity of manufacturing defence products.

Nil Defence

3 M/s Hatsoff Helicopter

Training Pvt Ltd, Banga-

lore (No. 112/2014-FC.I)

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 for-

eign investor.

Rs. 5.6 Crore Civil Avia-

tion

4 M/s Verizon Communica-

tions India Private Limited

[No. FC.II – 39/2002]

M/s Verizon Communications India Private Limited, engaged

in telecom sector, is seeking approval to increase foreign equity

participation by its foreign parent from 74% to 100%.

Rs. 2.32 Crore Telecom

5 M/s Ironman Media and

Advisory Services Private

Ltd. (No.

11/SIA/NFC/2014)

M/s Ironman Media and Advisory Services Private Ltd. has

sought approval to issue shares for the amount received as FDI.

Rs. 0.30 Crore Print Media

6 M/s Axes Studios LLP

(No.10/SIA/NFC/2014-FC

I)

M/s Axes Studios LLP has sought approval to accept NRI in-

vestment from Mr. Gunjan Dhirendra Chag, NRI, UK.

Rs. 0.99 Crore IT

7 M/s MapfreAsistencia

Camp A+ Aa International

de SegurosYReaseguros,

SA(No. 245/2013-FC.I)

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.

Rs. 1.70 Crore

(US$ 0.275

million)

Insurance

8 M/s Instant Global Money

Transfer Private Limited

(No. 78/2014-FC.I)

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.

Rs. 0.15 Crore NBFC

9 M/s GETCO Asia Pte. Ltd.,

Singapore

(No. FC.II: 156/2011)

Approval sought by a wholly foreign owned company for set-

ting up a downstream subsidiary to be engaged in the business

of commodities broking, commodities trading and providing

liquidity to the commodities market.

Nil NBFC

10 M/s Equitas Holdings Pri-

vate Limited, Tamil Nadu

(No. FC.II- 236/2011)

Approval has been sought by M/s Equitas Holdings Private

Limited for downstream investment in its wholly owned sub-

sidiaries by its existing and new foreign shareholders hereby

increasing the foreign equity from 91.30% to 93.12%

Rs. 325 Crore Investing

Company

11 M/s ANZCapital Pvt. Ltd.

(FC.II: 121/2001)

M/s ANZ Capital Private Limited is seeking approval for re-

moval of the condition prescribed in the FC approval.

Nil NBFC

12 M/s Medipass SRL, Italy

(No. 83/2014-FC.I)

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.

Rs. 15.11

Crore

Pharma

13 M/s Intas Pharmaceuticals

Limited, Ahmedabad [No.

FC.II – 334/2005]

M/s Intas Pharmaceuticals Limited, an Indian pharmaceuticals

company, seeking approval for NR to NR transfer of 10.16%

its shares.

Nil Pharma

14 M/s. Koye Pharmaceutical

Private Limited

(No. 41/2014-FC.I)

M/s Koye Pharmaceuticals Private Limited, a brownfield

Pharmaceuticals company, has sought permission to issue addi-

tional 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 Invest-

ments II, Mauritius.

Rs. 7.50 Crore Pharma

15 M/s Amneal Pharmaceuti-

cals Company India Pvt.

Ltd.

(No. 67/2014-FC-I)

M/s Amneal Pharmaceuticals Company Private Limited, a for-

eign 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 man-

ufacturing facility.

UptoRs. 205

Crore

Pharma

16 M/s Fresenius Kabi Oncol-

ogy Limited, New Delhi

(No. 89/2014-FC.I)

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.

Rs. 119 Crore Pharma

17 M/s Ferring Pharmaceuti-

cals Pvt. Ltd.

(FC.II 456/1996)

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 on-

ward downstream investment in its WoS M/s Ferring Thera-

peutics Pvt. Ltd., prior to approval of FIPB.

Nil Pharma

18 M/s Indusind Bank Ltd.

(591/FC/93/NRI-FC I)

the applicant has sought approval for increase in foreign in-

vestment in IBL to 74% with a specific request to grant post-

facto approval for increase in foreign holding from 68.51% to

72.07% on 30.06.2014

Not indicated Banking –

Private Sec-

tor

19 M/s Dymak India Services

Limited Liability Partner-

ship, Uttar Pradesh (No.

85/2014-FC.I)

Post Facto approval has been sought by M/s Dymak India Ser-

vices 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.

Nil Whole Sale

Trading

20 M/s Tara India Fund IV

Trust, Mumbai (No.

102/2014-FC.I)

M/s Tara India Fund IV Trust seeking permission for invest-

ment upto US$45 million by subscribing to the units of the

applicant and category B investors to invest up to US $ 5 mil-

lion in the units of TARA Fund.

Rs 305.63

Crore

(US$ 50 mil-

lion)

Investing

Company

Source: DIPP

Table 3

Deferred FDI Proposals Sl.

No.

Name of the applicant Gist of the proposal Sector

1 M/s Pureplay Invest-

ment Partners, Mauri-

tius (No. FC.I-

270/2013)

Proposal for FDI by M/s Pureplay Investment Partners Mauritius in:(a)

upto 74% in M/s Indiverse Broadband Private Limited, an existing compa-

ny 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).

Telecom

2 M/s ASV Europa Secu-

rity Private Limited,

Secunderabad (No.

91/2014-FC.I)

M/s ASV Europa Security Private Limited, Secunderabad seeking permis-

sion 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)

Approval has been sought by M/s Halyard Health, Inc, USA, WoS of Kim-

berley Clark group to set up a new company in India to be engaged in im-

port and sale of healthcare products on “Wholesale business” and transfer

of some assets from one WoS to the new company.

Pharma

4 M/s BeloorBayir Bio-

tech Limited, Banga-

lore (No. 111/2014-

FC.I)

M/s BeloorBayir Biotech Limited Bangalore, with 22.55% foreign invest-

ment (on a fully diluted basis) by M/s India Agri Business Fund Ltd. Mau-

ritius 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.

Phrma

5 Mr. Anurag Kumar

(No.

12/SIA/NFC/2014)

The applicant has sought Government approval for acquisition of 100%

equity of BPPL. The proposal has been supported by the consent of exist-

ing shareholders and Board Resolution of the investee company.

Pharma

6 M/s Tevapharm India

Pvt. Ltd. [FC.II

35(2001)/45(2001)]

A 100% foreign owned Indian brownfield pharma company is seeking ap-

proval for additional capital infusion.

Pharma

7 M/s GMU InfosoftPvt.

Ltd. (No.

17/SIA/NFC/2011-FC

I)

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.

Others

8 M/s U InfosoftPvt. Ltd.

( No.

16/SIA/NFC/2011-FC

I)

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.

Others

Source: DIPP

Table 4

Rejected FDI Proposals Sl.

No.

Name of the applicant Gist of the proposal Sector

1 M/s Indus Teqsite Private

Limited, Tamil Nadu (No.

261/2013-FC.I)

A JV is proposed to be formed with 26% FDI to undertake defence

sector activities.

Defence

2 M/s. Sistema Shyam Tele-

services Ltd. [FC.II 241

(07)/285(07)]

Increases in FDI upto 100% in M/s Sistema Shyam Tele Services

Limited and its downstream WoS M/s Shyam Internet Services Li-

mited, both engaged in telecom sector, on account of conversion of

Redeemable Preference Shares into equity.

Telecom

3 M/s Kusum Healthcare

Private Limited, New Del-

hi (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 Li-

mited, a company engaged in brownfield pharmaceutical sector. Post-

facto 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, Mauri-

tius 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

Table 5

FDI Proposals not required FIPB Approvals Sl.

No.

Name of the ap-

plicant

Gist of the proposal Sector

1 M/s Kineco Kaman

Composites India

Pvt. Ltd. (No. FC.I-

100/2013)

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.

Defence

2 M/s Xander

Finance Pvt. Ltd.,

Delhi (No.

110/2014-FC.I)

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 mak-

ing future deployment of temporary surplus funds in debt mutual funds and

government bonds.

NBFC

Source: DIPP

IIP Sectoral

1.5

-2.5-1.8

2.6

0.4

2.0

-1.2-1.3-0.2

0.8

-1.8-0.5

3.4

5.03.9

0.40.4

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2013-14 2014-15

Overall IIP

2.00.3

2.6

2.9

4.5

0.72.8

-3.6-1.3

2.5

5.1

2.5

-1.2 -1.5

11.5

5.4

11.9

6.7

15.7

11.712.9

-10

-5

0

5

10

15

20

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2013-14 2014-15Mining Manufacturing Electricity

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 cumula-

tive growth for the period April- 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 Au-

gust 2014.

IIP Used Based

1.4-0.3-1.91.01.1

5.3

-0.42.72.52.54.14.4

7.36.410.0

7.49.5

-4.1-17.5

-11.6

14.3

4.3

23.3

-3.9

-11.2

-20-15-10

-505

1015202530

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2013-14 2014-15

Basic goods Capital goods4.9

3.6 3.7

1.6

3.4

3.2

2.4 3.0

0.5

-4.7

-0.5

-4.1

-2.1

-4.7

4.2

-9.7

-7.7-6.9

-12

-10

-8

-6

-4

-2

0

2

4

6

Ap

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Oct

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Nov.

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2013-14 2014-15

Intermediate goods Consumer goods

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%], „di-

amond‟ [(-)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

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 Poli-

cy & 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 De-

fence.

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.

2.3 Metals and Agri. Commodities market spot prices

Performance of Metals Market Spot Prices

Source: MCX, ASSOCHAM Economic Research Bureau

Note: 1. For detail please refer appendix

2. Cotton, Gold and Silver growth rate calculated during 20th

to 22nd

October 2014

Performance Agri Commodities Market Spot Prices

Source: MCX, ASSOCHAM Economic Research Bureau

Note: For detail please refer appendix

2. Growth rate calculated during 20th

to 22nd

October 2014

-0.3

0.6

-1.2

-0.2

-4.4

-2.1

0.0

1.8

0.2

1.4

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

Alu

min

ium

Co

pp

er

Co

tto

n

Lea

d

Nat

ura

l G

as

Nic

kel

Tin

Zin

c

Go

ld

Sil

ver

Weekly Changes in %

0.0

-0.5

0.20.3

-1.0-0.8-0.6-0.4-0.20.00.20.40.60.81.0

Mai

ze

Ref

ined

So

y O

il

So

yab

ean

Whea

t

Weekly Changes in %

3. Market Trends

FII Equity Flows Equity (Rs. Crore)

Source: BSE and ASSOCHAM Economic Research Bureau

Exchange Rate Market Variation

Source: RBI, BSE, NSE and ASSOCHAM Economic Research Bureau

0

5000

10000

15000

20000

25000

30000

Ap

ril

May

Jun

e

July

Au

g.

Sep

.

Oct

.

Nov.

Dec

.

Jan

.

Feb

.

Mar

ch

Ap

ril

May

Jun

e

July

Au

g.

2013-14 2014-15

BSE equity

Buy Sell

30000

40000

50000

60000

70000

80000

90000

100000

110000

120000

Ap

ril

May

Jun

e

July

Au

g.

Sep

.

Oct

.

Nov.

Dec

.

Jan

.

Feb

.

Mar

ch

Ap

ril

May

Jun

e

July

Au

g.

2013-14 2014-15

All India Equity

Buy Sell

61.461.5

61.061.2

61.261.1

61.561.6

61.3 61.361.2

77.577.7

77.7 77.7 77.6 77.7

78.7

78.9

78.2

78.6

78.0

77.0

77.5

78.0

78.5

79.0

79.5

60.0

60.2

60.4

60.6

60.8

61.0

61.2

61.4

61.6

61.8

7th 8th 9th 10th 13th 14th 16th 17th 20th 21st 22nd

October 2014

Rs/

Euro

Rs/

US

D

Rs/USD Rs/Euro

1.6

1.5

BSE

Sensex

NSE

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 govern-

ment 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

Euro area (EA18)

GDP market prices

(mp)

(million euro) 9 512 122 9 768 233 9 824 375 9 904 401

Government deficit

(-) / surplus (+)

(million euro) -583 136 -402 045 -355 183 -284 728

(% of GDP) -6.1 -4.1 -3.6 -2.9

Government expend-

iture

(% of GDP) 50.4 49.0 49.5 49.4

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

(-) / surplus (+)

(million euro) -817 808 -591 471 -569 139 -436 721

(% of GDP) -6.4 -4.5 -4.2 -3.2

Government expend-

iture

(% 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

Table 7

UK, Gross Domestic Product Preliminary Estimate, Q3 2014 Percentage change on previous quarter

GDP In-

dex

(2011=100)

GDP Agriculture Production Construction Services

Weights

1000 6 146 64 784

2012

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

2013

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

2014

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

Item Oct. 10, 2014 Oct. 17, 2014

Percentage

Change

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 Commer-

cial 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

Weekly Changes in % 20th

21st 22

nd 23

rd 24

th

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

Weekly Changes in % 20th

21st 22

nd

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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