ASSOCHAM Economic Review

For the Week Ended July 31, 2011

Prepared by: ASSOCHAM Research Bureau

ection

ECONOMY
India's core industries output growth up 5.2 percent in June Fiscal deficit surges four-fold in April-June, 2011 Food inflation moderation trend continued for yet another week India- UK Reaffirms their Commitment to Strengthen their Economic and Financial Relations

POLICY
First Quarter Review of Monetary Policy 2011-12: RBI

REPORT
Rising prices hurt Asia's growth - ADB 2010 Global FDI Inflows up 5%; India slips to 14th spot: UNCTAD

INTERNATIONAL
UK economy slows to 0.2% growth Australia's inflation accelerates on rising food prices US recovery has slowed, says Fed S&P further downgrades Greece credit rating into junk status China wealth fund sees nearly 12% return

MARKETS

CONOMY

India's core industries output growth up 5.2 percent in June

The Index of Eight core industries having a combined weight of 37.90 per cent in the Index of Industrial Production (IIP) with base 2004-05 registered a growth of 5.2 per cent in June 2011 as compared to 4.4 per cent in the same period last year. However, the growth of eight key infrastructure industries is less than the 5.3 per cent growth achieved in May. Also, for the first quarter of current financial year, the Index of eight core industries grew by only 5.0 per cent as compared to 6.8 per cent during the corresponding period of previous fiscal year. Despite the unfavorable environment of growth, such as high inflation rate and increasing interest rates, the production of eight core industries has more or less been able to maintain its pace of growth. Also, the high global commodity prices have acted as a barrier to the industrys faster expansion. The government has added two more sectors - natural gas and fertilisers to the existing six industry segments. With the inclusion of these two sectors, the core industries now cover the sectors such as crude oil, petroleum refinery products, natural gas, fertilisers, coal, electricity, cement and steel. Also, its weightage now account for 37.9 percent in the overall index of industrial production, as compared to 26.7 percent earlier. According to provisional data released by the Ministry of Commerce & Industry on July 29, production of steel, electricity, crude oil and petroleum refinery products, saw positive growth in the month of June, 2011. On the other hand, the remaining sectors such as natural gas, coal, fertilizers and cement saw a negative growth.

Steel production registered a growth of 12.5% in June 2011 compared to 4.3% in June 2010. In addition to Steel, the remaining three sectors also reported better growth during the month. Electricity generation registered a growth of 8.2% in June 2011 compared to a growth of 3.8% in June 2010. The growth in Crude oil production expanded by 7.7% in June 2011 compared 6.8% percent expansion in the corresponding period of 2010. Also, the Petroleum refinery production showed an improved output growth of 4.7% as against the growth of 2.9% in June 2010. Among the sectors, which experienced contraction in growth, Natural Gas production registered the worst growth of (-) 11.7% in June 2011 compared to 25.4% expansion in June 2010. Coal production growth also slowed down to (-) 3.3% during the month under review, compared to growth of 0.8% in June last year. Similarly, Fertilizer production contracted by (-) 2.4% in June 2011 compared to (-) 6.7% in year ago period. Cement production maintained its continuous contraction in growth during the current fiscal, this time by (-) 0.8% as compared to 3.7% in June 2010. During the first three months of current financial year (April-June 2011-12), Steel production grew by 7.8% compared to an increase of 8.6% during the same period of 2010-11. Similarly, during the period Electricity generation, Crude Oil production, and the Petroleum refinery production grew by 8.3% (5.7% in 201011), 9.5% (5.9%), and 5.3% (5.3%) respectively. On the other hand, Natural Gas production registered a growth of (-) 10.2% during April-June 2011-12 compared to 37.0% during the same period of 2010-11. Similarly, the respective rates of growth for the remaining sectors were 0.2% (- 0.6% in 2010-11) for Coal production, 1.1% (-2.6%) for Fertilizer production, and (-) 0.9% (7.0%) for Cement Production.

Fiscal deficit surges four-fold in April-June, 2011

The central government's fiscal deficit surged by over four-fold in the first three months of the current fiscal 2011-12 to Rs 1.62 lakh crore on account of lower non-tax receipts. The deficit was Rs 40,196 crore in April-June, 2010. The fiscal deficit, or the gap between overall expenditure and receipts in the first quarter of this year is almost 40% of the Budget estimate of Rs 4.12 lakh crore for 2011-12. The sharp rise in Centre's fiscal deficit is on account of 89% decline in non-tax receipts which went down to Rs 12,221 crore in the first quarter of this fiscal compared to Rs 1.15 lakh crore in the year-ago period. Besides, there was a 6.3%

decline in tax revenues at Rs 78,699 crore during the period under review. The figure was Rs 83,994 crore in the year-ago period. As per the latest data of the Controller General of Accounts (CGA), the total receipts were Rs 98,564 crore in April-June 2011, down by 51% year-on-year. The figure was Rs 2.02 lakh crore in the three month period in 2010. Also The non-tax receipts have been lower as the government's disinvestment programme for this year is yet to take off fully. The higher non-tax revenue in first quarter of last fiscal was on account of auction of 3G spectrum. Meanwhile, the revenue deficit, the difference between revenue earned and expenses, in April-June this year stood at Rs 1.34 lakh crore, which is almost 13 times higher than the figure of Rs 10,577 crore in the first three months of 2010-11. The latest number is 48.3% of the Budget estimate of Rs 3.07 lakh crore. Though, the government has set a fiscal deficit target of 4.6% of the GDP for the current fiscal. Experts had said that lower revenue collection on account of removing duties on petroleum products, could pose a challenge and take the deficit to over 5%. In 2010-11, the fiscal deficit was 4.7%.

Food inflation moderation trend continued for yet another week

India's food inflation rate based on the Wholesale Price Index (WPI) eased to 7.33 per cent (%) for the week ended July 16, 2011 as compared to 18.56 per cent during the corresponding period of the previous year. Food inflation for the previous reported week was recorded at 7.56 per cent on a year-on-year basis. The decline was mainly on account of fall in the prices of coarse cereals, fibres and minerals. Among the major groups, the index for Primary Articles rose by 0.2 percent as compared to the previous week levels. Annual rate of inflation for this group was 10.49 per cent, down from last week's level of 11.13 per cent. It was 19.23 per cent for the corresponding week of the preceding year. The index for 'Food Articles' sub-group moved up by 0.8 per cent, due to higher prices of fish-inland, fruits & vegetables and fish-marine (2% each). However, the prices of jowar (4%), ragi and poultry chicken (2% each) declined. The index for Non-Food Articles sub-group also declined by 0.3 per cent owing to higher prices of flowers (16%), groundnut seed (10%), gaur seed

(3%). However, the prices of raw cotton (6%), raw silk (3%), copra and raw rubber (2% each) declined. On the other hand, index for another major category fuel, power, light & lubricants remained unchanged at its previous week's level. The annual rate of inflation under this category for the week ended July, 16 stood at 12.12 percent as compared to previous week level of 11.89 per cent.

India- UK Reaffirms their Commitment to Strengthen their Economic and Financial Relations
The Union Finance Minister Shri Pranab Mukherjee said that the Indo-UK Economic and Financial Dialogue which was established in 2005 has contributed successfully in strengthening the bilateral relationship. He said that the significance of this dialogue is in laying the agenda and guidance for future engagement. While speaking at the Fourth Ministerial Level Indo-UK Economic and Financial Dialogue at London, Shri Mukherjee said that both the countries have identified a number of issues for joint collaboration. He said that he is sure that both the countries will make further progress in the coming months in deepening countries economic relations based on mutual appreciation of their respective concerns and aspirations. This exchange of views will go a long way in improving our understanding of each others position on issues of mutual concern, he said. Shri Mukherjee said that India and UK share a strategic partnership and enjoy traditionally warm and close bilateral relations in diverse areas. Our two countries enjoy strong historical and cultural relations built on shared values and traditions. Since the visit of His Excellency, UK Prime Minister David Cameron to India in July 2010, we have seen our bilateral relations being elevated to an Enhanced Partnership for the Future- he added.

OLICY

First Quarter Review of Monetary Policy 2011-12: RBI

The Reserve Bank of India (RBI) has released its first quarter review of monetary policy for 2011-12 on 26th July 2011. In its monetary policy release, the RBI signalled that battling inflation took precedence over growth imperatives. The RBI remains confident that moderation of domestic growth is not yet broadbased, but the risks to growth from uncertainties abroad have increased instead of dissipating. Also the Inflation expectations are becoming entrenched due to persistently high food prices, while rising wages are another worry. "There are signs that growth is beginning to moderate, particularly in interest sensitive sectors. But there is no signs of a broad-based slowdown", said RBI Governor D Subbarao, adding that a moderation in demand is necessary to bring down inflation and that the US debt standoff will add risks to the global capital flows. In this backdrop, the RBI continued the tightening cycle and took a more decisive step with a 50 basis point hike, beating market expectations. Moreover, the central bank gave enough hints that the latest hike may not be the last.

On the basis of the policy stance RBI has raised the Repo Rate by 50 basis points (bps) from 7.5 per cent to 8.0 per cent. This has raised operational policy rates by 475 basis points in a span of 15 months since mid-March 2010, one of the sharpest monetary tightening seen across the world. Infact, RBI has hiked the rates at all its previous 10 policy meetings.

The Central Bank, however, kept the Cash Reserve Ratio (CRR) and Bank Rate unchanged at 6.0 per cent. The Marginal Standing Facility (MSF) rate, determined with a spread of 100 basis points above the repo rate, gets calibrated at 9.0 per cent. Similarly, the Reverse Repo Rate, or short-term borrowing rate, hiked to 7.0 per cent from 6.5 per cent. RBIs May 3 Policy Statement projection of baseline real GDP growth for 2011-12, based on the assumption of a normal monsoon and crude oil prices averaging USD 110 a barrel, left unchanged at around 8.0 per cent.

The RBI's both the documents, Macroeconomic and Monetary Developments First Quarter Review 2011-12 and First Quarter Review of Monetary Policy 2011-12 by the Governor D. Subbarao were critical on the fiscal intervention of the government as well as its policy. Among other things it said While the antiinflationary bias of monetary policy (of RBI) anchors inflation expectations, the present trends necessitate structural reforms to enhance supply response (from the government). Further, the RBI pointed out that with overshooting of the fiscal deficit target a possibility, its expansionary impact on demand could partly offset the moderation in demand resulting from anti-inflationary monetary actions and weaken monetary policy effectiveness. Responding to persistent high inflation and increasing generalisation of price pressures, the Reserve Bank has significantly raised its emphasis on containing inflation. The RBI noted that two things, the minimum support price for agricultural commodities and the increase in wages of rural labour would add further pressure to prices. The Central Bank feels that controlling inflation is imperative both for sustaining growth over the medium-term and for increasing the potential growth rate. The challenge for the government and the Reserve Bank, said Dr. Subbarao, was to ensure that demand was constrained in the short-term to bring inflation down, but to encourage supply response so as to expand the potential output of the economy in the medium-term. The economy's ability to grow rapidly for any length of time without provoking inflation is dependent on implementing policies, with corresponding resource allocations, which will allow supply of various products and services to keep pace with demand he added.

R
Rising prices hurt Asia's growth - ADB

EPORTS

World Surging inflation, a weak post-tsunami economic recovery in Japan and debt woes in the U.S. and Europe threaten East Asia's economic outlook, the Asian Development Bank (ADB) said on July 28, 2011. ADB maintained its growth forecasts for 14 emerging and newly industrializing East Asian economies in 2011 and 2012. But it said the region faces risks that also include more volatile financial markets and destabilizing inflows of short term capital, also known as "hot money." The ADB's growth forecasts were unchanged from a report in April, with East Asia forecast to expand nearly 8 percent this year and next. It forecasts China's gross domestic product growth at 9.6 percent this year and 9.2 percent next year. But it indicated that economic growth forecasts for China, Malaysia, Thailand and Vietnam would likely to be cut. That would also result in a downgrade for the region, which includes 10 Southeast Asian countries as well as the economies of China, Taiwan, Hong Kong and South Korea. In the first half of 2011, economic growth across East Asia eased from a blistering pace as inflation surged across much of the region, driven by higher commodity prices and strong economic recovery. Annual growth in the region's ten largest economies moderated to 8.1%, in the first quarter of 2011, down from 8.4% in the previous three months. "Rapidly rising inflation risks a wage-price spiral that could derail the region's recent strong growth," the report said, noting that inflation in many economies has risen above 10-year averages. Consumer prices in the region have been rising due to higher food and fuel costs. The report also detailed other sources of rising prices. In many East Asian economies property prices are climbing quickly. The devastating tsunami and

nuclear disaster in Japan in March has also spurred a debate over the use of nuclear power, which could drive up energy prices by boosting demand for other energy sources such as oil and gas. The threat of inflation has been a major worry in Asia this year. The ADB warned in April that surging food prices of 10 percent on average in many Asian economies could drive 64 million more people into poverty. The bank warned that if price growth does not slow, it could make things more difficult for the region's economies. "Elevated food and commodity prices and robust domestic demand could push inflation higher yet," the bank said. Rising prices have seen many economies in the region raise interest rates in a bid to curb price growth. Tighter monetary policies have resulted in a slowdown in growth. However, the bank said the economies will continue to take measures to tackle inflation. "Authorities are expected to keep tightening monetary policy and rolling back fiscal stimulus to counter rising inflation and economic overheating," the bank said. The ADB's economists also fretted about the dismal prospects for the U.S. and Europe, which are plagued by high unemployment and debt problems. Both are major customers for East Asia's exports. "If the recovery in Japan, U.S. and eurozone falters, sluggish external demand could once again disrupt the region's exports," the report said. The report also warned that the region could be hurt if the U.S. government's top-notch credit rating is downgraded amid fears that U.S. lawmakers may fail to come up with a way to prevent a debt default in the world's biggest economy. That could depress the dollar against other currencies, hurting Asian governments that hold large amounts of U.S. government debt in their foreign reserves. The bank said this "two-paced" global economy had resulted in investors flocking to the region's economies looking for better returns, putting further pressure on inflation. "Continued short-term capital inflows add to already ample liquidity and exacerbate price pressures," it said.

2010 Global FDI Inflows up 5%; India slips to 14th spot: UNCTAD
Global FDI inflows grew 5 percent to USD 1.24 trillion in 2010, according to the United Nations Conference on Trade and Development (UNCTAD) World

Investment Report 2011. This was nevertheless 15% below pre-crisis average levels, and 37% below the 2007 peak of USD 1.9 trillion. Also, the UNCTAD predicts in this report that the recovery of FDI flows will continue in 2011 and will reach a total of some USD 1.4 to USD 1.6 trillion, thus returning to the pre-crisis average. Thereafter, flows are forecast to rise to USD 1.7 trillion in 2012 and USD 1.9 trillion in 2013, barring any unexpected global economic shocks. The US topped the tables for FDI inflows in 2010 at USD 228.2 billion, followed by China (USD 105.7 billion) and Hong Kong (USD 68.9 billion). Regionwise, EU and other developed European countries attracted the highest FDI inflows (USD 313.1 billion), followed by North America and other developed countries (USD 288.8 billion). On the other hand, the US topped the tables for FDI outflows in 2010 at USD 329 billion, followed by Germany (USD 105 billion) and France (USD 85 billion). Regionwise, EU and other developed European countries contributed the highest FDI outflows (USD 475.8 billion), followed by North America and other developed countries (USD 288.8 billion). In terms of sectoral patterns, FDI in services continued its downward path in 2010. FDI flows to the financial industry experienced one of the sharpest declines. The share of foreign investment channelled to manufacturing increased, meanwhile, and accounted for almost half of all FDI projects. In 2010, the rise of emerging economies as new powerhouses of FDI became more apparent. Developing countries and transition economies absorbed more than half of global FDI inflows for the first time. Half of the top 20 host economies for FDI in 2010 were developing and transition economies. Their outward FDI also rose sharply in 2010, climbing by 21 per cent. These economies now account for 29 per cent of global FDI outflows. Six developing and transition economies were among the top 20 investors. The record level of cash holdings, low rates of debt financing and rising stock market valuations of transnational corporations (TNCs) should encourage them to expand overseas, the report says. On the recipients side, ongoing corporate and industrial restructuring, privatizations resulting from fiscal rebalancing efforts and unwinding of state support programmes, and the growth of emerging economies should create new investment opportunities. However, the report warned that the post-crisis business environment is still beset by uncertainties. Risk factors such as the unpredictability of global

economic governance, a possible widespread sovereign debt crisis, and fiscal and financial sector imbalances in some developed countries, as well as rising inflation and signs of overheating in major emerging market economies, may yet derail the FDI recovery. Despite the emergence of certain developing countries, FDI flows continued to decline in some of the poorest regions of the world. Flows to the Africa and South Asia, as well as to least developed countries, landlocked developing countries and Small Island developing States fell in 2010. FDI to South Asia declined to USD 32 billion, reflecting a 31 per cent slide in inflows to India and a 14 per cent drop in flows to Pakistan. By contrast, inflows to Bangladesh, a rising low-cost production location, increased by nearly 30 per cent to USD 913 million, the report said. Meanwhile, at a time when developing and emerging countries are setting new records in foreign direct investment (FDI) inflows, Indias position among the top 20 recipients fell to 14th position, from 8th in 2009. India attracted FDI worth USD 25 billion in 2010, much lower than the inflows of USD 36 billion seen in 2009. In contrast, the other emerging economies such as China stood at 2nd position with inflows totalling USD 106 billion in 2010. Similarly, Brazil stood at 5th position with inflows at USD 48 billion during the year, the report said.

I
UK economy slows to 0.2% growth

NTERNATIONAL

Britain's Gross Domestic Product (GDP) growth slipped to just 0.2% in the second quarter, according to the new figures released by the Office for National

Statistics (ONS). The figure is lower than the 0.5% seen in the previous quarter, but ONS said the figures this time were heavily influenced by one-off factors such as the royal wedding, Olympic ticket sales, record warm weather in April and the Japanese tsunami. The ONS estimated the impact of these effects knocked as much as 0.5% off the GDP figure, which otherwise may have shown growth of 0.7%. Year on year the UK economy grew by 0.7%, which was the lowest rate of growth since the first quarter of 2010. "There is likely to be some bounce back over the autumn, but it's clear that the underlying economic recovery remains fragile and difficult," chief economic adviser Ian McCafferty said. Production output dropped by 1.4% during the three months with mining and quarrying down 6.6%, but this was offset by a good performance in the powerhouse services sector, where output rose by 0.5%, and in construction where output rose by 0.5%. Transport, storage and communication contributed particularly strongly to the growth of the services sector. On the other hand, Manufacturing declined by 0.3% quarter on quarter, a performance put down to the impact of the Japanese tsunami on supply chains. The warm weather also had an impact on gas and electricity demand. Agriculture sector declined by 1.3% The performance will offer some relief to Chancellor George Osborne, who has come under pressure to amend his deficit reduction strategy amid concerns that a sluggish economy could affect tax revenues targets. "The positive news is that the British economy is continuing to grow and is creating jobs," said Mr. Osborne. "And it is positive news too at a time of real international instability we are a safe haven in the storm."Our economy is stable at this time because this Government has taken the difficult decisions to get to grips with Britain's debts. Abandoning that now, as some argue we should, would only risk British jobs and growth." However, the weak quarterly growth number makes it almost certain that the Office for Budget Responsibility will have to downgrade its forecasts for the full year from 1.7% at its next update this autumn.

Australia's inflation accelerates on rising food prices

Australian inflation rose unexpectedly in the second quarter as high cost of food and fuel put pressure on inflation. The Australian Bureau of Statistics said the consumer price index (CPI) rose 0.9 percent in the three months to June compared with the first quarter, while it was 3.6 percent higher year on year. The

figures were well above market expectations of 0.8 percent and 3.5 percent respectively. Strong rises in fruit, clothing, alcohol and petrol prices have pushed Australia's inflation data higher than expected. Food prices have been rising due to the devastation caused by floods and cyclones earlier this year. The inflation news sent the Australian dollar to its highest level against the U.S. currency since being floated almost 30 years ago on concerns that central bank will raise interest rates. The bigger-than-forecast rise in consumer prices has already triggered a debate in the country on the impact of rising price on the economy. While the Reserve Bank of Australia (RBA) has maintained that keeping prices in check is one of its top priorities, it has left interest rates unchanged since November 2010. Earlier this month, Glenn Stevens, the governor of RBA said "as the temporary price shocks dissipate, CPI inflation is expected to be close to target over the next 12 months." However, analysts said the latest figures indicate that the central bank may have to change its stand going forward.

US recovery has slowed, says Fed

The US central bank Federal Reserve said the economy grew at a slower pace in more parts of the country since the beginning of June due to ongoing troubles in the housing and labour markets. "Economic activity continued to grow; however, the pace has moderated in many districts," the Fed said in its influential Beige Book survey released in Washington. Economic activity continued to grow, the Fed said in its Beige Book survey released today in Washington. However, the pace has moderated in many districts. Growth slowed in eight of the Feds 12 regions, compared with four in the last survey, the central bank said. The Beige Book survey, released two weeks before each policy meeting, is based on information compiled by officials at the Feds 12 regional banks. The recent report covers June and the first half of July. The report underscored Fed Chairman Ben S. Bernankes message to Congress earlier this month that maintaining record monetary stimulus is necessary to bolster the economy. Bernanke left the door open to additional action, including buying more government bonds, should the recovery appear in danger of stalling. In the Dallas region, the survey said that optimism has been tempered by consumer fear regarding economic and fiscal policy uncertainty. The Fed said residential property activity was "little changed and remained weak", while employment conditions "remained soft". In many regions,

manufacturing slowed or held steady, according to the report. Severe flooding and droughts had also hit the agriculture sector, it said. However, the consumer spending, which accounts for about 70 percent of the economy, showed modest growth. Just before the release of report, the Commerce Department released the data on new orders for US manufactured goods in June which unexpectedly fell due to a sharp drop in transport equipment and, in particular, civil aircraft. Orders placed with U.S. factories for durable goods fell by USD 4 billion or 2.1 percent in the month. That suggests companies were losing confidence in the recovery as the second quarter ended. Transport goods orders accounted for about 8.5% of the total fall. Similarly, orders for commercial aircraft and parts slumped by almost 30%, while those for defense planes and parts fell 20%. Excluding transport, new orders rose by 1%.

S&P further downgrades Greece credit rating into junk status

Ratings agency Standard & Poor's (S&P) has cut Greece's credit rating, saying the European Union's latest bailout plan would put the country into "selective default." Eurozone leaders recently agreed on a Euro 109 billion (USD 158 billion) package for Greece in order to address the country's debt problems. However, S&P said the plan appeared unfavorable to investors and warned that a selective default might happen. Greece's sovereign credit rating has been downgraded by one notch to CC from CCC. It also put the outlook on the Greece rating to negative. The debt-riddled country is already the lowest-rated country in the world by S&P, which downgraded it 8 notches. S&P's move came just two days after downgrade action by another rating agency Moody's, which also worried the possibility of Greek debt default. Moody's cut Greece's credit rating by three notches to Ca, just one notch above default. "The rating has a negative outlook, so we're pretty certain it's going to go lower because, of course, an actual debt restructuring is now on the table," said David Beers, S&P's global head of sovereign ratings. "We've also expressed the opinion before that we think that any near-term restructuring is probably not the end of the story. There may be another bigger restructuring down the road," Beers said in an interview. Asked when the new restructuring might occur, Beers said: "That's partly in the hands of Greek politics. But it wouldn't surprise us if a second restructuring had to be looked at over the next couple of years."

China wealth fund sees nearly 12% return

Chinas USD 400 billion sovereign wealth fund garnered 11.7% in 2010 on its overseas investments, which included a 21% allocation to alternative investments. China Investment Corp (CIC) said its total assets were USD 409.58 billion by the end of last year - more than double its original start-up fund of USD 200 billion in 2007 and 23% higher than the USD 332.39 billion it held at the end of 2009. China Investment Corporation released its annual report on Jul 26, the third such report since the sovereign wealth fund was established in 2007. CIC said in its annual report that 27% of its investments were in bonds and other fixed-income assets, while 4% was held in cash and 21% in alternative investments, such as private equity and hedge funds. CIC chief executive Lou Jiwei said he was "cautiously optimistic" about 2011 and will pursue "overseas investment with prudence". "An increasing percentage of investments have been made in emerging markets, such as Asia, Africa and South America." CIC was set up to invest some of the country's estimated USD 2.4 trillion in currency reserves. CIC now controls close to 410 billion US dollars in assets. The majority of the reserves are mainly held in safer investments such as US Treasury bonds, but the advent of the global financial crisis has seen CIC try to diversify its investments to bag bigger returns. In 2010, CIC reduced the proportion of cash holdings from 32% at the start of the year to only 4% of its investment portfolio by the end of the year. The sovereign wealth fund said it invested nearly half of its global portfolio in stocks last year. The fund made USD 35.7 billion in new offshore investments last year, after adding USD 58billion in 2009.

ARKETS

BSE: The 30 share BSE Sensex decreased by 2.8 per cent and closed at 18,197.2.

NSE: Nifty decreased by 2.7 per cent during the week and closed at 5,482.0. Dollar: The value of rupee appreciated by Rs. 0.221 against the US dollar during the week and closed at Rs 44.1553 per dollar. Euro: The value of rupee appreciated by Rs. 0.773 against the Euro and closed at Rs. 63.1018 per euro. Gold: Prices of gold increased by Rs. 174.75 per 10 grams and closed at Rs. 23,186 per 10 grams. Silver: Prices of silver increased by Rs. 87.65 and closed at Rs. 58,487.65 per kg. Crude Oil: The Brent index prices of crude oil decreased by USD 3.06 and closed at USD 116.78 per barrel. Forex Reserves: Indias Foreign Exchange reserves increased by USD 2.294 billion to USD 314.619 billion during the week-ended July 22, 2011.

ASSOCHAM Research Bureau

ASSOCHAM Research Bureau (ARB) 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. For More Information: http://www.assocham.org/arb/index.php Email: research@assocham.com

THE KNOWLEDGE CHAMBER

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