Current state of Indian Economy

July 2010

Federation of Indian Chambers of Commerce and Industry

New Delhi
Highlights –July 2010

• GDP growth in the year 2009-10 has been one of the highest achieved globally during the
difficult times. The RBI has projected that growth in the year 2010-11 will be 8.5 percent. The
primary international agencies such as the IMF also forecasted country’s GDP for the year 2010
to be 9.5 percent and Asian Development Bank will come with a revised forecast in its review in
September this year.

• The Q1 FY 11 industrial production numbers showed adequate growth of 11.6 percent as against
the growth of 3.9 percent in the same quarter of the previous year. As always, the growth was
on the back of heavyweight manufacturing sector that posted a strong growth of 12.2 percent
as against the growth of 3.4 percent recorded previously. The categories of overall industry as
per the use base classification namely the capital, intermediate and basic goods grew
substantially during the first quarter of FY11 compared to the previous year. Rise in the
consumer goods segment continued on account of strong sales in the consumer durables
category.

• Marginal increase in the growth was seen in the six core infrastructure industries, which
averaged at 4.6 percent during opening three-month period of present fiscal compared to 4.3
percent in the corresponding period of previous year. Except for the coal sector all the other
sectors have shown a positive increase.

• Inflation remains a major concern for the government. Steps taken to curb the rising inflation
did not have a lasting impact on the rising prices. Inflation has touched double digit and
continues to haunt even in June this year mainly due to the rising prices of primary articles,
which include the food and the non-food articles. This is joined by high fuel prices when a price
rivision was announced very recently and three items under the manufactured category, namely
the textiles, wood and wood products and basic metal and metal products. The concern over
food prices remains unaddressed. The challenge that lies before the government is to meet the
set annual target of containing inflation to 5.5-6.0 percent.

• The central bank has also introduced the base rate system from July 1, 2010 replacing the
existing Benchmark Prime Lending Rate (BPLR). The banks will from now on price the loans with
reference to the base rate. The introduction of the base rate was aimed to enhance
transparency in lending rates of banks, however, there is less excitement among the highly rated
corporates as their fear that funds may come costlier than before. Small companies on the other
hand may be in a position to negotiate rates to their advantage.

• The revival in the international demand gave scope to our merchandise exports to expand. The
expansion in the first three months of FY11 took exports to USD 50.7 billion (32 percent
growth). The exports went up for the third consecutive month of the present fiscal registering

2 : Page
growth of 30 percent and so were the imports that grew by 23 percent. However, country’s
exports have mostly been lesser in value than the imports and the trade gap has widened even
more. The high imports indicated growing domestic consumer demand and industrial demand
supported by present position of forex reserves which is enough to cover 10 months of imports.

3 : Page
 Contents

Title Page

1 Industrial Growth 6

2 Core Infrastructure Industries 8

3 Trends in Inflation 9

4 Monetary Indicators 11

5 Stock Market Trends 12

6 Fiscal Management 13

7 Foreign Trade 15

8 Capital Inflows 16

9 Foreign Exchange Reserves 17

4 : Page
List of Tables and Graphs

Table- 1.1: Growth of Industry: Recent Trends (in percentage) 6

Table -1.2: Growth in 17 Industry sectors 7
Table-1.3: Growth in six-core infrastructure industries (% change) 8
Table-1.4: Growth in six-core infrastructure industries (% change) 8
Table-1.5. Monthly trends in Wholesale price index- monthly average (% change) 9
Table-1.6: Monthly trends in consumer prices (% change) 10
Table-1.7: Monetary sector indicators 11
Table-1.8: Monthly trends in stock market indices 12
Table-1.9: Trends in cumulative tax collections of central government (%) 13
Table-1.10: Service Tax 14
Table-1.11: Trends in central government finances: 14
Table-1.12: Monthly trends in growth of merchandize trade (% change) 15
Table-1.13: Monthly trends in foreign investments ($ million) 16
Table-1.14: Monthly trends in foreign exchange reserves ($ billion) 17

5 : Page
 1. Industrial growth

The IIP growth numbers released recently for the period of three months of 2010-11, from April to June
show strong increase in the overall industrial growth. The IIP growth number stood at 11.6 percent
during the first quarter of the present fiscal as against 3.9 percent increase in the previous fiscal.
Growth in manufacturing sector leaves maximum impact on the overall industrial growth as it accounts
eighty percent of the total weight. The manufacturing sector accelerated by 12.2 percent in the first
quarter of FY11 as compared to the growth of 3.4 percent in the corresponding quarter of previous year.

It has been observed that as per the use based classification growth in the basic, capital and
intermediate goods in Q1 2010-11 exceeded in the growth posted in the previous year. The basic goods
swelled by 6.9 percent in the first quarter this year as against 6.2 percent attained previously, Capital
goods rose sharply rather, by 34 percent during the first quarter of the year as compared to 2 percent
increase seen previously and finally the intermediate good scaled up by 9.8 percent as compared to 7.4
percent in the previous year.

Growth picked up in the consumer goods segment from 15.6 percent in Q1 of previous year to 28
percent in Q1 2010-11. Theperformance improved mainly on account of sizable sales in the consumer
durables category.

In Q1 FY11, of the seventeen industry sectors in the manufactured category, growth in 10 industry
sectors were found to be higher as compared to the growth in the first quarter of the previous fiscal.
The sectors that saw acceleration in growth were food products that grew by 13.2 percent, cotton
textiles by 6 percent, jute by 17 percent, paper by 6.7 percent, basic chemicals by 6.7 percent, rubber,
plastic and coal products by 15.9 percent , metal products by 44.5 percent machinery equipment by 27.7
percent , transport equipment by 27.5 percent and other manufactured items by 22.7 percent .

1.1: Growth of Industry: Recent Trends (in percentage)

Weights June June

2009 2010

Industry 100 8.3 7.1

Mining 10.2 14.2 9.5
Manufacturing 79.4 8.0 7.3
Electricity 10.5 8.0 3.5
Use Based Classification
Basic 35.6 10.7 3.4
Intermediate 26.5 7.9 8.7
Capital 9.3 13.4 9.7
Consumer Goods 28.7 4.4 8.3
Consumer non Durables 23.3 0.7 1.3
Consumer Durables 5.4 16.2 27.4

6 : Page
Table- 1.2: Growth in 17 Industry sectors

17 industry sectors
Food Products 9.1 0.1 7.9
Beverages, Tobacco and Related Products 2.4 -3.4 -2.2
Cotton Textiles 5.5 -1.9 6.7
Wool, Silk and man-made fiber textiles 2.3 5.2 0.1
Jute and other vegetable fiber Textiles (except 0.6 -31.1 30.0
cotton)
Textile Products (including Wearing Apparel) 2.5 8.7 5.6
Wood and Wood Products; Furniture and Fixtures 2.7 6.4 -7.0
Paper & Paper Products and Printing, Publishing & 2.6 12.9 3.0
Allied Industries
Leather and Leather & Fur Products 1.1 11.0 -9.9
Basic Chemicals & Chemical Products (except products of 14.0 4.8 3.8
Petroleum & Coal)
Rubber, Plastic, Petroleum and Coal Products 5.7 7.6 12.6
Non-Metallic Mineral Products 4.4 9.4 3.0
Basic Metal and Alloy Industries 7.5 12.8 -0.5
Metal Products and Parts, except Machinery 2.8 -7.5 62.1
and Equipment
Machinery and Equipment other than Transport 9.6 12.9 9.5
Equipment
Transport Equipment and Parts 4.0 12.3 24.6
Other Manufacturing Industries 2.5 32.6 11.8
Source: Central Statistical Organization

7 : Page
 2. Core sector growth
The growth in the six core infrastructure industries in first quarter of 2010-11 was also seen to remain
marginally on the higher side compared with the growth seen in the same period of the previous year.
Growth was seen to come from five of the six industry sectors namely the crude oil that grew at 5.9
percent (-1.3 percent), petroleum refinery grew at 5.3 percent (-4.2 percent), power grew at 5.6 percent
(5.8 percent), cement rose at 7.0 percent ( 12.0 percent) and finished steel at 3.6 percent (1.7 percent) .
The sector that remained in the negative zone was coal. (figures within brackets are for the same
quarter of last fiscal)

Table-1.3: Growth in six-core infrastructure industries (% change) June 2010

All Finished steel Cement Crude

infrastructure petroleum
industries
08-09 09-10 10-11 08-09 09-10 10-11 08-09 09-10 10-11 08-09 09-10 10-11
April 4.6 3.7 5.1 7.5 -1.3 4.7 6.9 11.9 8.7 1.0 -3.1 5.2
May 4.4 3.2 5.0 8.3 2.8 2.5 3.8 11.8 8.6 3.2 -4.3 5.8
June 4.4 6.3 3.4 8.1 3.6 3.5 6.6 12.7 3.6 -4.7 4.0 6.8
July 5.2 3.3 6.3 4.0 5.5 14.0 -3.0 -0.4
August 2.0 6.5 3.3 0.3 1.9 17.6 -1.0 -2.6
September 4.1 4.5 2.3 0.8 8.1 6.5 -0.4 -0.5
October 2.4 3.8 -3.8 2.5 6.2 5.2 -0.2 -2.2
November 0.8 6.0 -6.3 11.7 8.7 9.0 0.5 -1.5
December 0.7 6.4 -8.0 9.6 11.6 11.0 -0.3 1.1
January 2.2 9.4 3.2 16.2 8.3 12.4 -8.1 9.7
February 1.9 4.5 2.4 0.9 8.3 5.8 -6.2 4.0
March 3.3 7.2 -1.8 9.2 10.1 7.8 -2.3 3.5
Source: Ministry of Industry

Table-1.4: Growth in six-core infrastructure industries (% change)

Petroleum Coal Power

refinery
08-09 09-10 10-11 08-09 09-10 10-11 08-09 09-10 10-11
April 4.3 -4.5 5.3 10.4 13.2 -2.3 1.4 6.7 6.0
May 0.1 -4.3 7.7 8.8 10.4 0.1 2.0 3.0 6.4
June 5.6 -3.8 2.9 6.1 15.2 0.9 2.6 7.7 3.4
July 11.8 -14.4 5.5 9.7 4.5 4.2
August 2.5 31 5.9 12.9 0.8 10.6
September 2.8 3.4 11.2 6.5 4.4 7.9
October 5.0 7.2 10.6 5.0 4.4 4.7
November -1.1 4.9 9.7 4.6 2.6 3.3
December 3.0 0.8 11.2 2.5 1.5 6.7
January -1.3 3.8 6.7 6.0 1.8 5.6
February 0.5 0.8 6.0 6.8 0.6 7.3
March 3.3 -0.4 5.2 7.8 6.3 7.8

Source: Ministry of Industry

8 : Page
3. Inflation

The WPI based inflation softened a bit to 10 percent in June 2010 compared to the inflation of 11
percent seen a month ago. However, inflation this year has been much more as compared to negative
inflation seen in the previous year mainly on account of drop in the fuel prices.

What has aided the inflation to rise to double digit is the prices of primary articles, which included the
food and non-food articles, fuel prices and three items in the manufactured category, namely the
textiles, wood and wood products and basic metal and metal products. Of the whole what is seen to be
constantly rising now and last year are the prices of food articles.

The impact of inflation on the consumer prices for all categories, namely the industrial workforce, rural
workforce and agriculture workforce was observed. However, some moderation in the consumer price
index from January 2010 to June 2010 was seen.

Table-1.5. Monthly trends in Wholesale price index- monthly average (% change)

2009 2010

May June May June

All Commodities 1.4 -1 11.1 10.6

I Primary Article 6.3 6.5 18.5 16.3
(A) Food Articles 8.4 10.9 17 14.6
(B) Non-Food Articles 3 0.1 18.4 18.6
II Fuel Power Light & Lubricants -6.1 -12.5 14.4 14.3
III Manufactured Products 2.2 0.6 6.9 6.7
(A) Food Products 13.9 11.5 4.7 4.3
(B) Beverages, Tobacco & Tobacco Products 5.6 6 7.9 7.5
(C) Textiles 8.5 4.5 15.7 14.7
(D) Wood & Wood Products 3.6 0.3 14.6 14.6
(E) Paper & Paper Products 3.3 2.6 1 1.5
(F) Leather & Leather Products -0.2 -1 0.5 0.5
(G) Rubber & Plastic Products 3.9 3.4 6.2 6.7
(H) Chemicals & Chemical Products 4.6 2.1 4.8 5.8
(I) Non-Metallic Mineral Products 2.3 3.1 1.5 -1.2
(J) Basic Metals Alloys & Metals Products -13.3 -14.1 12.5 12.1
(K) Machinery & Machine Tools -1 -2.2 4.2 3.9
(L) Transport Equipment & Parts 0.5 0.6 2.8 2.4
Source: Reserve Bank of India

9 : Page
Table-1.6: Monthly trends in consumer prices (% change)

CPI-IW CPI-UNME CPI-AL CPI-RL

08-09 09-10 10-11 08-09 09-10 10-11 08-09 09-10 10-11 08-09 09-10 10-11
April 7.8 8.7 13.3 7.0 8.8 14.4 8.9 9.1 15.0 8.6 9.1 15.0
May 7.8 8.6 13.9 6.8 9.7 14.1 9.1 10.2 13.7 8.8 10.2 13.7
June 7.7 9.3 13.7 7.3 9.6 - 8.8 11.5 13.0 8.8 11.3 13.0
July 8.3 11.9 7.4 13.0 9.4 12.9 9.4 12.7
August 9.0 11.7 8.5 12.9 10.3 12.9 10.3 12.7
September 9.8 11.6 9.5 12.4 11.0 13.2 11.0 13.0
October 10.4 11.5 10.4 12.0 11.1 13.7 11.1 13.5
November 10.4 13.5 10.8 13.9 11.1 15.7 11.1 15.7
December 9.7 15.0 9.8 15.5 11.1 17.2 11.1 17.0
January 10.4 16.2 10.4 16.9 11.4 17.6 11.1 17.4
February 9.6 14.9 9.9 15.8 10.8 16.5 10.8 16.5
March 8.0 14.9 9.3 14.9 9.5 15.8 9.7 15.5
Source: Ministry of Labor, CMIE

10 : Page
4 Monetary indicators

The broad money supply in June 2010 calculated over March 2009-10 swelled by 1.4 % in June 2010
compared to growth of 3.6 percent recorded during the same period of previous year. In absolute terms,
money supply in June 2010 amounted to Rs 77314 crores, which was much lower compared to the
amount of Rs 172702 crores observed in the corresponding period of last year. The net bank credit to
the government sector grew by 2.5 percent, this growth however was considerably low compared to the
commendable growth of 9.5 percent seen during the same period of 2009-10. The bank credit to the
commercial sector saw a relatively high growth of 1.9 percent vis-a-vis the negative growth posted
during the same period of previous fiscal.

However, RBI’s First Quarter Review 2010-11 released on 27th July 2010, anticipated a broad based and
accelerated pace of credit growth in the coming months; fully consistent with the growth outlook and
monetary policy stance of the Central Bank. Further, RBI expected an inclusive credit growth spreading
across a large number of sectors in the economy.

Aggregate deposits in June 2010 expanded by 0.6% as against the expansion of 3.4% observed in the
same month of previous year. Perhaps two reasons can be sited for the sluggish behaviour deposit
growth. Firstly, there could be a significant withdrawal of bulk deposits by companies to use their
resources in funding their operations and investments. Secondly, banks may not have intended to
mobilise deposits because of surplus liquidity situation in the economy. But this phenomenon is
changing as a consequence of RBI’s recent tight monetary move. It can be expected that, banks will now
be under pressure to increase their deposit rates to sustain credit growth. According to monetary
experts, this is an intermediary phase when deposit growth remained sluggish.

Investments in government and other approved securities grew by 2.1 % in June this year; this was
lower than the growth of 10.7% in investments recorded in 2009-10. The total bank credit increased by
2% calculated in June over March end 2010 from the negative growth of 0.3% posted in previous year.

Table-1.7: Monetary sector indicators – up to April (June 2010-11 over March 2009-10)

Variation in M3 (Rs Variation in M3 (%)

crore)
08-09 09-10 10-11 08-09 09-10 10-
11
April 22235 124682 42384 0.6 2.6 0.8
May 73398 172709 92656 1.9 3.6 1.7
June 89283 172702 77314 2.2 3.6 1.4
July 169734 259720 4.2 5.5
August 208571 280313 5.2 5.9
September 264364 331793 6.6 7.0
October 331450 391310 8.3 8.2
November 374193 431266 9.3 9.1
December 423509 521426 10.6 10.9
January 508078 575387 12.7 12.1
February 635810 652944 15.9 13.7
March 740332 806190 18.4 16.9

Source: Reserve Bank of India

11 : Page
5 Stock market trends

In past two months this fiscal the indices Sensex and Nifty declined. The Sensex crossed 17.5 K
points in April 2010 and now in June it traded at 16.5 K points, declining by about 6 percent .
However, movement of the indices for a longer period shows stability in the Indian stock market as
it continues to remain above 16 K.

Table-1.8: Monthly trends in stock market indices (beginning of month figures)

Date BSE % S&P %

Sensex Change CNX Change
NIFTY
1.01.08 20300 4.8 6144 6.6
1.02.08 18242 -10.1 5317 -13.5
3.03.08 16677 -8.5 4953 -6.8
1.04.08 15626 -6.3 4739 -4.3
2.05.08 17600 12.6 5228 10.3
2.06.08 16063 -8.7 4739 -9.3
1.07.08 12961 -19.3 3896 -17.8
1.08.08 14656 13.1 4413 13.3
1.09.08 14498 -1.1 4447 0.8
1.10.08 13055 -9.9 3950 -11.1
3.11.08 10337 -20.8 3043 -23.0
1.12.08 8839 -14.5 2682 -11.9
26.12.08 9328 5.5 2857 6.5
30.01.09 9424 1.0 2874 0.5
02.03.09 8607 -8.7 2674 -7.0
31.03.09 9708 12.8 3020 12.9
29.04.09 11403 17.5 3473 15.0
01.06.09 14840 30.1 4529 30.4
01.07.09 14645 -1.31 4340 -4.1
03.08.09 15924 8.7 4711 8.5
01.09.09 15551 -2.3 4625 -1.8
01.10.09 17134 10.2 5083 9.9
03.11.09 15405 -10.1 4564 -10.2
01.12.09 17198 11.6 5122 12.2
04.01.10 17558 2.1 5232 2.1
01.02.10 16356 -6.8 4900 -6.4
02.03.10 16773 2.5 5017 2.4
01.04.10 17693 5.5 5291 5.5
03.05.10 17386 -1.7 5223 -1.3
01.06.10 16572 -4.7 4970 -4.8

Source: Reserve Bank of India

12 : Page
6 Fiscal Management

In Q1 of 2010-11 the total government expenditure stood at Rs 242208 crores. This showed a growth of
23 percent over the previous year. In contrast, the total revenue receipts soared significantly from Rs
71995 crores in 2009-10 to Rs 199810 crores during the same period of the present fiscal. This jump of
revenue receipts led to a decline in fiscal deficit.

The gross tax revenue continued to traverse on a strong growth path with 28.6% growth June 2010 as
compared to the to the negative growth of 11.4 % in June 2009. This robust and persistent growth in
overall tax revenue can broadly be described as the resultant outcome of impressive collection in both
direct and indirect taxes. The corporate tax and income tax grew at 23.7 % and 13.8 % respectively in
June 2010 as against the growth of 1.8% and 7.1% in June 2009. The remarkable performance in direct
taxes reflected a striking recovery in industrial activities, especially the rising profitability of Indian
corporates.

In Indirect tax category, customs and excise collection rose by 62.2% and 52% respectively in June 2010
as against the negative growth of 37.3 % and 23.7% in same month of 2009. Collection in service tax
sustained positive growth in June 2010 with a strong 9.1 % growth as against negative growth of 2.9%
posted in same month of last year.

Table-1.9: Trends in cumulative tax collections of central government (%)

Gross tax revenue Corporation tax Income tax

08-09 09-10 10-11 08-09 09-10 10-11 08-09 09-10 10-11
April 52.2 -16.9 27.0 55.0 -8.4 23.4 127.7 20.0 8.3
May 36.1 -11.8 22.0 58.1 10.1 -1.8 76.0 11.7 13.0
June 28.4 -11.4 28.6 43.4 1.8 23.7 50.0 7.1 13.8
July 26.2 -11.1 41.6 4.7 42.0 5.9
August 25.0 -11.5 45.9 2.4 35.7 8.1
September 25.3 -7.6 38.2 7.7 30.7 7.2
October 20.3 -7.5 30.3 6.5 21.9 10.5
November 17.5 -7.8 26.4 6.6 19.0 9.8
December 9.6 -2.5 11.9 16.8 6.8 12.2
January 7.2 -1.2 11.9 16.5 5.4 13.3
February 6.9 -1.6 17.9 10.9 7.5 11.4
March 2.7 10.8 7.1
Customs Excise duties Other taxes
08-09 09-10 10-11 08-09 09-10 10-11 08-09 09-10 10-11
April 25.0 -52..6 106.4 -28.3 -114.2 314.1 9.04 -5.4 -43.2
May 24.1 -38.2 56.6 1.3 -23.3 49.3 26.7 -18.7 -11.7
June 19.9 -37.3 62.2 -0.9 -23.7 52.0 26.0 -9.5 -36.8
July 19.2 -34.7 4.0 -26.6 24.7 -3.87
August 17.0 -34.0 6.5 -24.5 17.4 -1.97
September 16.8 -32.9 6.6 -22.9 30.7 -20.5
October 14.4 -31.7 6.3 -21.7 16.2 -17.2
November 13.7 -31.2 5.1 -20.0 6.1 -15.0
December 11.1 -29.2 2.1 -18.2 -2.6 -24.2
January 6.4 -25.2 -2.6 -14.5 -6.4 -21.8
February 1.7 -21.8 -7.1 -10.2 -10.0 -19.8
March -4.1 -12.0 -11.5

13 : Page
Table-1.10: Service Tax

Service Tax 08-09 09-10 10-11

April 62.3 -0.0 -6.0
May 40.7 -2.6 1.6
June 34.2 -2.8 9.1
July 29.7 -1.4
August 28.6 -2.2
September 31.8 -3.7
October 31.8 -5.3
November 30.2 -6.2
December 25.4 -5.9
January 24.6 -6.2
February 22.2 -5.9
March 18.6
Source: Controller General of Accounts

Table-1.11 Trends in central government finances: June 2010

Actual to budget estimates

( in Rs crores)
09-10 10-11
Revenue receipts 71995 199810
Tax revenue 63341 83994
Non tax revenue 8654 115816
Total receipts 72669 202012
Non plan expenditure 142185 154148
On revenue account 132521 133770
On capital account 9664 20378
Plan expenditure 54786 88060
On revenue account 47064 76617
On capital account 7722 11443
Total expenditure 196971 242208
Fiscal deficit 124302 40196
Source: Controller General of Accounts

14 : Page
 7 Merchandise trade

The merchandise trade continues to expand for the third consecutive month of the present fiscal
compared to that of the previous year. Merchandise exports rose by 30.4 percent exceeding the growth
seen in imports that rose by 23 percent.

However, the imports being more than our exports in absolute terms, we observed that the quarterly
trade deficits were on the higher side compared to the trade deficits recorded in the previous year,
indicating an improvement in domestic demand. Looking at the pressure in the export sector due to
adverse developments internationally, the commerce ministry has announced additional sops. Despite
the gloom in the international export climate, optimism in achieving exports target of USD 200 billion by
the end of this fiscal remains. This is also as a result of exports crossing USD 50 billion level in the first
quarter of 2010-11.

Table-1.12: Monthly trends in growth of merchandize trade (% change) up to May 2010

Exports Oil imports Non-oil imports Total imports

08-09 09-10 10-11 08-09 09-10 10-11 08-09 09-10 10-11 08-09 09-10 10-11
April 31.5 -33.2 36.2 46.2 -58.5 70.5 32.3 -24.6 34.3 36.6 -36.6 43.3
May 12.9 -29.2 35.1 50.8 -60.6 66.7 17.4 -25.4 28.2 27.1 -39.2 38.5
June 23.5 -27.7 30.4 53.4 -50.6 26.5 13.9 -16.5 21.5 25.9 -29.3 23.0
July 31.2 -28.4 69.3 -55.5 38.7 -24.5 48.1 -37.1
August 26.9 -19.4 76.7 -45.5 39.6 -25.5 51.2 -32.4
September 10.4 -13.8 57.1 -33.5 36.2 -30.4 43.3 -31.3
October -12.1 -6.6 22 -9.3 5.5 -17.2 10.6 -15.0
November -9.9 18.2 11.9 7.3 3.4 -5.9 6.1 -2.6
December -1.1 9.3 -30.9 42.8 31.9 22.4 8.8 27.2
January -15.9 11.5 -47.5 56.0 -0.5 28.8 -18.2 35.5
February -21.7 34.8 -47.5 97.4 -10.2 55.6 -23.3 66.4
March -33.3 54.1 -58.1 85.2 -18.9 61.0 -34.0 67.1

Source: Ministry of Commerce

15 : Page
8 Foreign investment

Total foreign direct investments received by the country in Q1 of 2010-11 was USD 10.3 billion, this
number was lower compared to the investments of USD 15.1 billion received in the corresponding
quarter of the previous fiscal. The month wise long term foreign direct investment received showed
moderation (from USD 2.2 billion in May to 1.3 billion in June 2010).

Table-1.13: Monthly trends in foreign investments ($ millions)

Foreign direct Portfolio investments Total foreign

investments investments
08-09 09-10 10-11 08-09 09-10 10-11 08-09 09-10 10-11
April 3749 2339 2179 -880 2278 3315 2869 4617 5494
May 3932 2095 2213 -288 5639 41 3644 7734 2254
June 2392 2582 1380 -3010 353 1232 -618 2935 2612
July 2247 3476 -492 2077 1775 6508
August 2328 3268 593 926 2921 4194
September 2562 1512 -1403 4999 1159 6511
October 1497 2332 -5243 2922 -3746 5254
November 1083 1722 -574 1274 509 2996
December 1362 1542 30 1533 1392 3075
January 2733 2042 -614 3139 2119 5181
February 1466 1717 -1085 230 381 1947
March 1956 1209 -889 5306 1067 6515

Source: Reserve Bank of India

16 : Page
9 Foreign exchange reserves

Table-1.14: Monthly trends in foreign exchange reserves ($ billion)

07-08 % Change 08-09 % Change 09-10 % Change 10-11 % Change

April 204.1 2.5 314.5 1.5 251.7 0.0 279.6 0.2

May 208.3 2.0 312.5 -0.6 262.3 4.2 273.5 -2.2
June 213.4 2.4 312.0 -0.1 265.1 1.0 275.7 0.8
July 229.3 7.4 306.1 -1.8 271.6 2.4
August 228.8 -0.2 295.3 -3.5 276.4 1.8
September 247.7 8.2 286.3 -3.0 281.2 1.7
October 262.4 5.9 252.8 -11.7 284.3 1.1
November 273.5 4.2 247.6 -2.0 288.1 1.3
December 275.9 0.8 255.9 3.3 283.4 -1.6
January 288.3 4.4 248.6 -2.8 280.9 -0.9
February 301.2 4.4 249.2 0.2 278.4 -0.9
March 309.7 2.8 251.7 1.0 279.1 0.3
Source: Reserve Bank of India

17 : Page