Economic Review

50 CHEMICAL NEWS FEBRUARY 2012

ECONOMICREVIEWCompiled by BIPIN JHA, Executive, Excel Industries Ltd.

1Reserve Bank of India issued directions permitting foreign direct investments (FDI) up to 100 per cent

in single brand product trading under the Government route subject to stipulated terms and conditions.

2The Centre’s Direct tax collections during April-December 2011 were up by 14.54% at Rs 3,96,529 crore over the corresponding period last year.

The gross corporate tax collection was up 12.49% at Rs 2,69,850 crore in April-December 2011 against Rs 2,39,883 crore during April-December 2010. The personal income tax collection during April-December 2011 was up by 19.06% at Rs 1,25,998 crore.


CHEMICAL NEWS FEBRUARY 2012 51

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360

410

MarFebJanDecNovOctSepAugJulJunMayAprMar

Industrial Sector BKJ : 16.1

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)

3The indirect tax collections increased by 16.1 per cent to Rs.2.86 lakh crore in April-December 2011 compared to Rs.2.46 lakh crore witnessed during

the same period last year. During April-December, the customs duty collection was up by 13.8 per cent and stood at Rs.1.13 lakh crore. The excise collection was at Rs.1.05 lakh crore during the April-December 2011 and the service tax collection stood at Rs.67,706 crore, during April-December 2011.

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

finished steel registered growth of 4.6% during April-November 2011 compared to growth of 5.6% recorded during April-November 2010. During April-November 2011, crude oil production registered growth of 2.9% as compared to growth of 11.5% during April-November 2010. Petroleum refinery products recorded growth of 4.5% during April-November 2011 compared to 0.8% growth posted during April-November 2010. Coal recorded negative growth of 4% against the growth of 0.43% in April-November 2010. Cement recorded growth of 4.3% as compared to growth of 5.3% posted during April-November 2010. Electricity witnessed growth of 9.3% in April-


November 2011 compared to growth of 4.6% during April-November 2010. Finished steel clocked growth of 8.2% during April-November 2011 as compared to same growth of 8.2% during April-November 2010. Natural gas declined by 8.5% during April-November 2011 as against the rise of 19.9% during April-November 2010. Fertilizers declined by 0.1% during April-November 2011 as against the decline of 1.7% during April-November 2010.

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

5.9% in November 2011 as compared to the growth of 6.4% represented in November 2010. The manufacturing sector, which accounts for about 80% of the weightage in the IIP, increased by 6.6% in November 2011 as against the growth of 6.5% posted in November 2010. The mining sector declined by 4.4% in November 2011 as compared to growth of 6.9% in November 2010. The Electricity achieved growth of 14.6% as compared to growth of 4.6% during November 2010. During the period April-November 2011 industrial production recorded lower growth of 3.8% as compared to 8.4% growth represented during the corresponding period in 2010. During April-November 2011 manufacturing sector witnessed growth of 4.1%

as compared to the growth of 9% registered during the corresponding period in 2010. Mining declined by 2.5% as against the growth of 7% during April-November 2010 and electricity registered growth rate of 9.5 compared to 4.5% growth posted during April-November 2011.

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

by 4.6% as against the increase of 25.7% in November 2010. Intermediate Goods production increased by 0.2% in November 2011 as compared to growth of 4.3% in November 2010. Basic Goods sector rose by 6.3% as compared to growth of 5.7% in November 2010. Consumer Durables increased by 11.2% in November 2011 as compared to growth of 7.2% recorded in November 2010. Consumer Non-durables rose by 14.8% as compared to decline of 4.4% in November 2010. During April-November 2011 Consumer Durables registered growth rate of 5.3% as compared to the growth of 14.6% during April-November 2010. Consumer Non-durables growth was at 4.6% compared to growth of 2.9% posted during April-November 2010. During the period Basic Goods recorded growth of 6.2% compared to the growth of 5.4% during April-November 2010. Intermediate Goods declined by 0.3% compared to the growth of 8.1% during April-November 2010. During April-November 2011, Capital Goods declined by 1% as against the rise of 18.2% during April-November 2010.

200

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296

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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

-20-15-10-5051015202530



Chemicals : Production (% change over previous year)

2010-11

2009-102011-12

7According to the industry-wise IIP data, the Chemical Industry declined by 1.4% in November 2011. During April-November 2011 the industry

registered decrease of 0.7%.

CHEMICAL NEWS FEBRUARY 2012 53

9According to RBI report, the overseas investments by Indian companies during April-December 2011 fell by 28.32 per cent to $25.25 billion as

compared to $35.23 billion in the same period of last year.

8As far as foreign trade is concerned, India’s exports during November 2011 valued at $22.3 bln. recorded growth of 3.9% over its level of $21.5 bln.

in November 2010. Imports during the month at $35.9 billion posted increase of 24.6% from its level of $28.8 bln. in November 2010. During April-November 2011-12, exports at $192.7 billion represented growth of 33.2% from the exports at $144.7 billion during April-November 2010-11. Imports during the period at $309.5 billion registered growth of 30.2% over its level of $237.7 billion during April-November 2010-11. Oil import bill during April-November 2011-12 was higher by 42.7% from the level of oil imports during April-November 2010-11. Non-oil imports during April-November 2011-12 were higher by 25.5% from non-oil imports during April-November 2010-11. The trade deficit for April-November 2011-12 was estimated at $116.8 billion, higher than the deficit of $93 billion during April-November 2010-11.

12India’s foreign exchange reserves dipped by $3.14 billion to $293.54 billion for the week ended 6 January 2012 as compared to

$296.68 billion in the previous week. Foreign currency assets, the biggest component of the forex reserves, declined by $3.12 billion to $259.80 billion for the week ended 6 January. The value of special drawing rights (SDRs) fell by $14.8 million to $4.41 billion, and India’s reserves with the International Monetary Fund (IMF) fell by $9.1 million to $2.69 billion. The value of gold reserves remained unchanged at $26.62 billion.

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External Sector BKJ : 16.1

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Exports(Million Dollars)

2009-10 2010-11 2011-12

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Foreign Exchange (Billion Dollars)

2009-10 2010-11 2011-12

13All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the

month of November 2011 increased by one point and stood at 199.

10Indian Railways carried 704.75 million tonnes of freight traffic during April-December 2011, registering an increase of 4.67 per cent over

673.31 million tonnes carried during April-December 2010.

11India’s food inflation as measured by the Wholesale Price Index (WPI) was at minus 2.9 per cent in the week ended 31 December 2011

on account of sharp fall in prices of vegetables.

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