economic review - indian chemical council · compiled by bipin jha, executive, excel industries...

economic reviewCompiled by BiPiN JHA, executive, excel industries Ltd. 1 Pakistan has decided to grant India the Most

Favoured Nation (MFN) status. Under MFN status, India would enjoy the same trade advantages

Pakistan grants its other trading partners. Pakistan will permit imports of many more Indian products than it does now, except for a small ‘negative’ list, thus moving away from the current system where there is only a positive list of 1,934 items. India had already given Pakistan MFN status in 1996.

2 The Centre’s Gross direct tax collections during April-October 2011 increased by 20.28 per cent to ` 2,84,081 crore. While the gross corporate

tax collection was up by 20.35 per cent to ` 1,89,872 crore, the gross personal income tax collection increased by 20.17 per cent to ` 93,769 crore. The securities transaction tax (STT) declined by 17.9 per cent to ` 2,958 crore.

76 z chemical news december 2011

160

210

260

310

360

410

MarFebJanDecNovOctSepAugJulJunMayAprMar

Industrial Sector BKJ : 15.11

Capital Goods : Production Index(Base : 2004-05 = 100)

2010-11

2009-10

2011-12

100

120

140

160

180

200



Basic Goods : Production Index(Base : 2004-05 = 100)

2010-11

2009-10

2011-12

100

120

140

160

180



Index of Industrial Production : Electricity(Base : 2004-05 = 100)

2010-11

2009-10

2011-12

100

140

180



Intermediate Goods : Production Index(Base : 2004-05 = 100)

2010-11

2009-10

2011-12

120

140

160

180

200

220



Manufacturing : Production Index(Base : 2004-05 = 100)

2010-11

2009-10

2011-12

120

140

160

180

200


2010-11

2009-10

2011-12


Index of Industrial Production : General(Base : 2004-05 = 100)

3 The indirect tax collections jumped by 18.5 per cent to ` 2.21 lakh crore during April-October 2011-12 compared to ` 1.86 lakh crore in the corresponding

period of 2010-11.

4 The eight core infrastructure industries growth - crude petroleum, petroleum products, coal, electricity, cement, Natural Gas, Fertilizers and

finished steel accumulated growth of 4.9% during April-September 2011 compared to growth of 5.6% registered during April-September 2010. During April-September 2011, crude oil production registered growth of 5.1% as compared to growth of 10.2% during April-September

2010. Petroleum refinery products posted growth of 4.7% during April-September 2011 compared to 2.6% growth recorded during April-September 2010. Coal recorded negative growth of 4.8% against the growth of 0.2% in April-September 2010. Cement recorded growth of 2.5% as compared to growth of 4.7% posted during April-September 2010. Electricity posted growth of 9.3% in April-September 2011 compared to growth of 4.1% during April-September 2010. Finished steel witnessed growth of 9.5% during April-September 2011 as compared to growth of 7.4% during April-September 2010. Natural gas declined by 8.5% during April-September 2011 as against the rise of 25.2% during April-September 2010. Fertilizers

chemical news december 2011 z 77

recorded growth of 0.6% during April-September 2011 as against the decline of 2.3% during April-September 2010.

5 Data on Index of Industrial Production (IIP) with the base year 2004-05, released by the CSO show that industrial production registered growth of

1.9% in September 2011 compared to growth of 6.1% represented in September 2010. The manufacturing sector, which accounts for about 80% of the weightage in the IIP, registered growth of 2.1% in September 2011 as compared to growth of 6.9% posted in September 2010. The mining sector declined by 5.6% in September 2011 as compared to growth of 4.3% in September 2010. The Electricity witnessed growth of 9% as compared to growth of 1.8% during September 2010. During the period April-September 2011 industrial production accumulated growth of 5% as compared to 8.2% growth represented during the corresponding period in 2010. During April-September 2011 manufacturing sector achieved growth of 5.4% as compared to the growth of 8.8% registered during the corresponding period in 2010. Mining declined by 1% as against the growth of 7.2% during April-September 2010 and electricity registered growth rate of 9.4 compared to 3.8% growth recorded during April-September 2011.

6 Going by the use-based classification of IIP data, in September 2011 the production of Capital Goods segment of the manufacturing industries declined

by 6.8% as against the growth of 7.2% in September 2010. Intermediate Goods production increased by 1.5% in September 2011 as compared to growth of 4.6% in September 2010. Basic Goods sector posted growth of 4.5% as compared to growth of 3.5% in September 2010. Consumer Durables recorded growth of 8.7% in September 2011 as compared to growth of 14.2% recorded in September 2010. Consumer Non-durables registered negative growth of 1.3% as compared to growth of 5.8% in September 2010. During April-September 2011 Consumer Durables achieved growth rate of 5.2% as compared to the growth of 15.9% during April-September 2010. Consumer Non-durables growth was at 3.8%, the same growth rate represented during April-September 2010. During the period Basic Goods registered growth of 6.9% compared to the growth of 4.7% during April-September 2010. Intermediate Goods recorded growth of 1.4% compared to the growth of 8.4% during April-September 2010. During April-September 2011, Capital Goods registered growth of 4.6% as compared to growth of 16.4% during April-September 2010.

200

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264

296

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360



Consumer Durables : Prod. Index(Base : 2004-05 = 100)

2010-11

2009-10

2011-12

8090

100110120130140150160170180



Consumer Non-durables : Prod. Index(Base : 2004-05 = 100)

2010-11

2009-10

2011-12

-20-15-10

-505

1015202530



Chemicals : Production (% change over previous year)

2010-11

2009-102011-12

7 According to the industry-wise IIP data, the Chemical Industry declined by 6% in September 2011. During April-September 2011 the

industry recorded fall of 0.6%.

8 On the foreign trade front, India’s exports during September 2011 valued at $24.8 bln. witnessed growth of 36.36% over its level of $18.2 bln. in

September 2010. Imports during the month at $34.6

78 z chemical news december 2011

05000

100001500020000250003000035000400004500050000

MarFebJanDecNovOctSepAugJulJunMayApr

External Sector BKJ : 15.11

Imports(Million Dollars)

2009-10 2010-11 2011-12

0

5000

10000

15000

20000

25000

30000

35000



Exports(Million Dollars)

2009-10 2010-11 2011-12

0

50

100

150

200

250

300

350

400



Foreign Exchange (Billion Dollars)

2009-10 2010-11 2011-12

9 According to RBI report, the overseas investments by Indian companies in October stood at USD 2.06 billion. During April-October 2011, the outward FDI

stood at USD 21.07 billion.

billion recorded increase of 17.2% from its level of $29.5 bln. in September 2010. During April-September 2011-12, exports at $160.05 billion represented growth of 52% from the exports at $105.24 billion during April-September 2010-11. Imports during the period at $233.5 billion accumulated growth of 32.4% over its level of $176.4 billion during April-September 2010-11. Oil import bill during April-September 2011-12 was higher by 42.4% from the level of oil imports during April-September 2010-11. Non-oil imports during April-September 2011-12 were higher by 28.5% from non-oil imports during April-September 2010-11. The trade deficit for April-September 2011-12 was estimated at $73.46 billion, higher than the deficit of $71.12 billion during April-September 2010-11.

12 India’s food inflation as measured by the Wholesale Price Index (WPI) declined marginally to 11.81 per cent in the week

ended 29 October 2011. Food inflation was at 12.21 per cent in the previous week and was at 12.68 per cent in the corresponding week of the previous year.

13 India’s foreign exchange reserves declined by USD 5.72 billion to USD 314.66 billion for the week ended 4 Nov 2011. The foreign currency

assets declined by USD 3.87 billion to USD 280.57 billion. The value of gold reserves dropped by USD 1.77 billion to USD 26.89 billion. India’s reserves with the International Monetary Fund (IMF) declined by USD 32 million to USD 2.64 billion and the value of special drawing rights (SDRs) dropped by USD 54 million to USD 4.55 billion.

14 All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of September 2011

increased by three points and stood at 197.

10 The total approximate earnings of Indian Railways during April-October 2011 at Rs. 57338.09 crore registered an increase of

10.13 percent compared to Rs. 52065.87 crore during the same period last year. The total goods earnings have increased from Rs. 34629.22 crore during April-October 2010 to Rs. 38085.83 crore during April-October 2011, registering an increase of 9.98 per cent.

11 The annual rate of inflation, based on monthly WPI, stood at 9.73% (Provisional) for the month of October, 2011 (over October, 2010)

as compared to 9.72% (Provisional) for the previous month and 9.08% during the corresponding month of the previous year.

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economic review - indian chemical council · compiled by bipin jha, executive, excel industries...

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