1

Indian Economy at a Glance

Source: Ministry of Finance Monthly Report, IMF data, Ministry of Statistics & Programme Indicators FY 07-08 FY 08-09 FY 09-10 FY 10-11 FY 11-12 FY 1213(Q2)

GDP Growth (%)

9.3

6.7

8.4

8.4

6.5

5.3

Average Growth rate for 11th 5 year plan 7.86 ( Target 9%) 4.02 (15.3) 7.42 (25.9) 10.1 (58.7)

i. Agril & Allied (% growth) (%age share) ii. Industry (% growth) (%age share) iii. Services (% growth) (%age share) GDP at current prices (` trillion) GDP at current prices@ (USD trillion) Per capita Net National Income (` at current prices) Growth in Index of Industrial Production General (%) Mining (%) Manufacturing (%) Electricity (%) Inflation WPI - 52 weeks average Export Growth (%) Import Growth (%) Forex Reserve (USD billion)

4.9 (17.8) 8.1 (26.5) 10.9 (55.7)

4.7 (15.8) 9.5 (20.2) 10.5 (64.0)

1.0 (14.7) 8.4 (28.1) 10.5 (57.2)

7.0 (14.5) 7.2 (27.8) 9.3 (57.7)

2.8 (14) 3.4 (27.0) 8.9 (59.0)

1.8 (13.7) 3.1 (27.0) 6.6 (59.3)

49.9 1.2 35,825

56.3 1.1 40,775

64.6 1.4 46,117

76.7 1.7 53,331

88.55 1.67 60,972 Apr -Feb

--60,972 Apr Dec 2012-13 0.7(3.7) -1.9(-2.6) 0.7(4.0) 4.6(9.4) As on Dec 12 7.48 -5.50 (Jan 2013) -0.7(Jan 2013) Jan 13, 262.48 (equivale nt 5.75 months import)

N.A. N.A. N.A.

8.5 5.1 9.0 6.4 7.14 29.0 35.5 310

2.8 2.6 2.8 2.8 8.1 13.6 20.7 252

10.5 9.9 11.0 6.0 3.8 -3.5 -5.0 279

7.8 5.9 8.1 5.6 9.6 37.6 21.6 305

3.5(8.1) -2.1(5.8) 3.7(8.7) 8.7(5.3) As on Mar12 9.47 20.94 32.15 Mar 12, 294(equiva lent 8.2 months import)

6.62 4.28 6.92 5.9 N.A. 19.5 20.99 N.A.

Implementation, Ministry of Commerce and Industry, RBI

2 ECONOMY (Highlights: January 2013) 2 The overall growth of GDP at factor cost at constant prices, as per Advance Estimates, is estimated at 5.0 per cent in 2012-13 as compared to the growth of 6.2 per cent during 2011-12 (First Revised Estimates). The growth rate for the first half (H1) of the current financial years stands at 5.4 per cent. The cumulative rainfall received for the country as a whole, during the period 1 st January 13th February 2013, has been 17% below normal. Food grains (rice and wheat) stocks held by FCI and State agencies were 66.19 million tonnes as on February 1, 2013. Overall growth in the Index of Industrial Production (IIP) was (-) 0.6 per cent during December 2012 as compared to 2.7 per cent in December 2011. During AprilDecember 2012-13, IIP growth was 0.7 per cent as compared to 3.7 per cent in AprilDecember 2011-12. Eight core Infrastructure industries registered a growth of 2.6 per cent in December 2012 as compared to growth of 4.9 per cent in December 2011. During AprilDecember 2012-13, these sectors grew by 3.3 per cent as compared to 4.8 per cent during April- December 2011-12. Broad money (M3) for 2012-13 (up to January 25, 2013) increased by 10.1 per cent as compared to 10.5 per cent during the corresponding period of the last year. The yearon-year growth, as on January 25, 2013 was 12.7 per cent as compared to 14.8 per cent in the previous year. Exports and imports, in US dollar terms, increased by 0.8 per cent and 6.1 per cent respectively, during January 2013 over January 2012. The cumulative growth in exports and imports during 2012-13 (April-January) was (-) 4.9 per cent and 0.01 per cent respectively. Foreign Currency Assets stood at US$ 262.5 billion in end January 2013 as compared to US$ 259.2 billion in end January 2012. Rupee appreciated against US dollar, Pound sterling and Japanese yen and depreciated against Euro in the month of January 2013 over December 2012. The WPI inflation for all commodities for the month of January 2013 has declined to 6.62 per cent from 7.18 per cent in the previous month. Gross tax revenue at Rs. 681,345 crore during April-December 2012 registered a growth of 15 per cent compared to the corresponding period in the previous year. Tax revenue (net to Centre) at Rs. 484,156 crore during April- December 2012 registered a growth of 15.2 per cent. As a proportion of budget estimate, fiscal deficit during AprilDecember 2012 was 78.8 per cent and revenue deficit was 85.1 per cent. 1

Source: Ministry of Finance

Mid-Quarter Monetary Policy Review: March 2013 Reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.75 per cent to 7.5 per cent with immediate effect; Consequently, the reverse repo rate under the LAF stands adjusted to 6.5 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 8.5 per cent with immediate effect.

Detailed Press Release available in the following link : http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=28335

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Budget Announcements 2013-14 (MSME) Micro, small and medium enterprises (MSME) have a large share of jobs, production and exports. Too many of them do not grow because of the fear of losing the benefits associated with staying small or medium. To encourage them to grow, I propose that the benefits or preferences enjoyed by them will stay with them for upto three years after they grow out of the category in which they obtained the benefit. To begin with, I propose that the non-tax benefits may be made available to a MSME unit for three years after it graduates to a higher category. To provide greater support to MSMEs, I propose to enhance the refinancing capability of SIDBI from the current level of `5,000 crore to `10,000 crore per year. SIDBI set up the India Microfinance Equity Fund in 2011-12 with budgetary support of `100 crore to provide equity and quasi-equity to Micro Finance Institutions (MFI). An amount of `104 crore has been committed to 37 MFIs. I have allocated `100 crore to the IME Fund in the budget and I now propose to provide another sum of `100 crore to the Fund. The Factoring Act 2011 has been passed by Parliament. I propose to provide a corpus of `500 crore to SIDBI to set up a Credit Guarantee Fund for factoring. Tool Rooms and Technology Development Centres set up by the Ministry of Micro, Small and Medium Enterprises have done well in extending technology and design support to small businesses. I propose to provide, with World Bank assistance, a sum of `2,200 crore during the 12th Plan period to set up 15 additional Centres. Incubators play an important role in mentoring new businesses which start as a small or medium business. The new Companies Bill obliges companies to spend 2 percent of average net profits under Corporate Social Responsibility (CSR). I am glad to announce that the Ministry of Corporate Affairs will notify that funds provided to technology incubators located within academic institutions and approved by the Ministry of Science and Technology or Ministry of MSME will qualify as CSR expenditure.

5 MSMEs AT A GLANCE (As per 4th MSME Census)

S.No. 1. Economic Parameters No. of Enterprises (lakh) Break up of No. of enterprises in Micro, Small and Medium Micro Enterprises Small Enterprises Medium Enterprises Break up of No. Of enterprises in Manufacturing and Services Manufacturing Service Break up in terms of ownership Socially backward classes (SC/ST/OBCs) Others Employment (lakh) Break up of No. of enterprises in Micro, Small and Medium Micro Enterprises 2006-07 Registered 16 (6%) 2010-11 Unregistered 246 (94%) Total 261 (100%) 311.52

14.85 (94.9%) 0.76 (4.89%) 0.03 (0.17%)

N.A. N.A. N.A.

N.A. N.A. N.A.

10 (67%) 5 (33%) 8 (50%) 8 (50%) 92 (17%)

64 (26%) 181 (74%) 126 (51%) 120 (49%) 503 (83%)

75 (29%) 186 (71%) 134 (51%) 127 (49%) 595 (100%)

732.17

2.

65.34 (74.19%) 23.43 (24.17%) 4.32 (4.64%)

N.A.

N.A . N.A. N.A.

Small Enterprises Medium Enterprises Break up of No. Of enterprises in Manufacturing and Services Manufacturing Service Break up in terms of ownership Male Female Average Employment per unit (Number) Manufacturing Service Share in GDP (%) Share in Exports (%) Fixed Investment (` crore)

N.A. N.A.

80 (87%) 12 (13%) 73 (80%) 19 (20%) 5.75 8 2.4

224 (45%) 278 (55%) 413 (82%) 90 (18%) 2.04 3.5 1.53

304 (51%) 291 (49%) 486 (82%) 109 (18%) 2.27 4.05 1.56 7.44 5,00,758 0.19

2.35 8.72 (2008-09) 40% 7,73,487 -

3.

4. 5. 6. 7. 8.

Employment per ` 1 lakh investment in Fixed investment Break up of No. of enterprises as per source of Finance No Finance/Self Finance Institutional Sources Non-Institutional Sources

15 (6%) 14 (88%) 2 (11%) 0.16 (1%)

246 (94%) 229 (93%) 12 (5%) 5 (2%)

261(100%) 242 (93%) 14 (5%) 5 (2%)

Source: 4th Census on MSME, Ministry of MSME

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Performance of MSMEs
Year Total MSMEs (in lakh Nos) 272.79 (4.51) 285.16 (4.53) 298.08 (4.53) 311.52 Fixed Investment (` crore) 5,58,190 (11.47) 6,21,753 (11.39) 6,93,835 (11.59) Production (` crore) (Current price) 7,90,759 (11.47) 8,80,805 (11.39) 9,82,919 (11.59) Employment (lakh persons) 626.34 (5.34) 659.35 (5.35) 695.38 (5.47)

2007-08 2008-09 2009-10 2010-11

(4.51)

7,73,487 (11.48)

10,95,758 (11.48)

732.17 (5.29)

Note: The figures in brackets show the percentage growth over the previous year. Source : Annual Report FY 2011-12, Ministry of MSME, Govt. of India

MSME (Micro Small and Medium Enterprises) Credit

SECTORAL DEPLOYMENT OF BANK CREDIT BY SCHEDULED COMMERCIAL BANKS
Sector Outstanding as on (Rs. billion) Variation (Year-onYear)
Dec 30, 2011 / Dec 31, 2010 Dec 28, 2012 / Dec 30, 2011

Variation (Financial Year)

Dec 30, 2011 /Mar 25, 2011 Dec 28, 2012 / Mar 23, 2012

Dec.31, 2010

Mar.25 , 2011

Dec.30 , 2011

Mar.2 3, 2012

Dec.28 ,2012

Non-food Credit Priority Sector Agriculture & Allied Activities Micro & Small Enterprises Manufacturing Services Housing Micro-Credit Education Loans State-Sponsored Orgs. for SC/ST Weaker Sections Export Credit

35048 12260 4364 4345

36674 12515 4603 4550

40458 13007 4606 4825

4289 7 1412 2 5225 5191

46231 14886 5590 5397

% 15.4 6.1 5.6 11.1

% 14.3 14.4 21.4 11.9

% 10.3 3.9 0.1 6.1

% 7.8 5.4 7.0 4.0

2303 2042 2442 288 423 26 1935 319

2291 2259 2407 269 430 25 2204 318

2468 2358 2516 210 483 27 2326 404

2592 2599 2654 231 483 26 2563 377

2717 2681 2678 241 521 28 2795 429

7.2 15.5 3.0 -27.1 14.2 3.8 20.2 26.7

10.1 13.7 6.4 14.8 8.0 3.7 20.2 6.2

7.7 4.4 4.6 -21.9 12.2 8.0 5.5 26.9

4.8 3.2 0.9 4.3 8.0 7.7 9.1 13.8

Source : Sectoral deployment of bank Credit data by RBI