Category Archives: economy growth

IIP Number released for December 2010

The highly expected IIP Numbers came out today , they had been expecting that it would give so end to the slumping market or may be just fuel the market more to go down , the IIP numbers for the month of December 2010 were just 1.6% higher when compared to December 2009. Central Statistics Office of Ministry of Statistics and Programme Implementation showed that cumulative growth for the period April- December 2010-11 stands at 8.6% over the corresponding period of the previous year.
Main Data

The Indices of Industrial Production for the Mining, Manufacturing and
Electricity sectors for the month of December 2010 stand at 216.9, 385.0, and
249.3 respectively, with the corresponding growth rates of 3.8%, 1.0% and
6.0% as compared to December 2009. The cumulative growth during April-
December, 2010-11 over the corresponding period of 2009-10 in these three
sectors have been 7.7%, 9.1% and 4.7% respectively, which moved the overall
growth in the General Index to 8.6%.

Source: http://mospi.nic.in/
More Details can be got from here.

GDP Growth is at 8.8 Per Cent for First QTR 2010-2011

GDP groth rate data came out today and the First quarter GDP growth rate for a year 2010-11 has come at 8.8% compared with 8.6% last quarter.This is really high compared to the growth rate of 6% in the first quarter 2009-10.
Sector Wise Growth

Agriculture sector has recorded a growth of 2.8% compared to 0.7% (QoQ),
Manufacturing grew by 12.4% compared to 16.3% (QoQ)
while mining sector growth was at 8.9% versus 14% (QoQ) and
Construction sector growth was at 7.5% compared to 8.7% (QoQ).

Indian Industrial Production at 17.6 Percent during April 2010

India’s industrial production data came out yesterday the data was good was below the December 2009 highest but above the economist prediction of 13 %. Help from the manufacturing output, the Industrial Production increased 17.6 Percent in April 2010.

Growth of 55.6 Percent in Machinery and Equipment
Growth of 51.9 Percent in ‘Metal Products and Parts, except Machinery and Equipment’ and
Growth of 41.4 Percent in ‘Other Manufacturing Industries ‘
Negative growth of 16.6 Percent in Wood and Wood Products; Furniture and Fixtures’
Growth of 2.7 Percent in ‘Beverages, Tobacco and Related Products’.
Growth of 8.8 Percent in Basic goods,
Growth of 72.8 Percent in Capital goods and
Growth of 10.8 Percent in Intermediate goods.
Growth of 14.5 Percent in Consumer goods .

Indian GDP grow 7.4 Percent in 2009 -2010 – Better than Expected

There was some news to cheer on the GDP side yesterday and that was the Growth of fy 2009-2010 GDP and it is at 7.4 percent , Double-digit industrial growth saw the Indian economy expanding 7.4 per cent in 2009-10,gross domestic product (GDP) was Rs 44,64,081 crore (at 2004-05 prices), bettering the earlier government estimate of 7.2 per cent growth over the previous year’s Rs 41,54,973 crore.

Food Inflation at 17.70 Percent

Food Inflation data came oput today which was at staggering 17.70 percent compared to 16.35 percent.Reserve Bank of India (RBI) reviews its policy on April 20 not sure if they will wait till that rate for raising interest rates , we will see , but this is a sure sign of interest rates raising , already bank stock felt the ehat and it was stammered in todays market.

CRR hiked by 75 basis points – RBI Announced

Credit policy meeting outcome has come out and they have raised the CRR by 75 basis points , RBI has increased cash reserve ratio by 75 bps to 5.75 Percent , the hike would happen in two stages, the first stage of hike of 50 bps will be effective from February 13 and the next 25 bps from February 27. RBI has not touched the the reverse repo rate which is at 3.25 percent and repo rate which is at 4.75 percent.

Inflation at 4.85 Percent

Annual rate of Inflation is provisionally calculated at 4.85 per cent for the week ending December 26th 2009 compared with 4.45 per cent last week and (-) 0.75 Percent during week ending Deember 27th 2008.Food inflation has come down slightly to 18.22 per cent for the week ended December 26 , Not sure how its calculated all the pulses and vegetables are high only compared to Previous week.Because food inflation ratewas at 19.85 per cent for the previous week and it was at 10 per cent during the same persiod in 2008.

IIP – Index of industrial production is at 10.3 Percent

The index of industrial production for the month of October 2009 was released and its at 10.3 percent , most of the analysers are not happy with this growth because they expected more on back of good GDP Number , but still 2 didigit growth is good and we can consider worst is over.September IIP revised to 9.6 percent versus 9.1 percent and April-October industrial growth was at 7.1 percent versus 4.3 percent (YoY). The Parth which raised the IIP is the manufacturing sector which performed well and the growth came in at 11.1 percent versus (-) 0.6 percent

GDP growth erases Dubai Debt Fear

Indian market which was expected to may be either crash or go down by some points , showed a positive mood after the GDP growth was released for india.India’s GDP (Gross domestic product) for the 2nd QTR grew at 7.9 percent compared with 6.1 percent in second quarter of 2008.
GDP Data

>Mining and quarrying at 9.5%,
>Manufacturing at 9.2%,
>Electricity, gas & water supply at 7.4%,
>Construction at 6.5%,
>Trade, hotels, transport and communication at 8.5%,
>Financing, insurance, real estate and business services at 7.7%,
>Community, social and personal services at 12.7%
>Agriculture, forestry & fishing’ is estimated at 0.9% .

RBI hiked SLR by 1 Percent – What is SLR Rate

Reserve Bank of India (RBI) which came out with quarterly monetary policy review today on october 27th 2009 , has decided to keep all the key rates like repo or reverse repo and the CRR steady and has hiked the statutory liquidity ratio (SLR) to 25% from 24%.
What is SLR (Statutory Liquidity Ratio) : This is infact to protect us , RBI demands that there should be certain amount that Bank needs to keep in the form of cash or or gold or govt. approved securities (Bonds) and the ramining is only they have to give it to customers either as credit in any form , as loan or mortgage or something .This will really help RBI to control the expansion of Bank Credits.Now RBI has increased the rate by 1 percent , which means that the banks have to either invest in gold or government securities , this is something like repayment for the money that RBI let out to the banking system , This percentange comes to effect from from 7 November 2009.This means that the cash reserve in banks hand will go down by 1 percent or so .

Inflation stood at .70 percent for week ending september 28 2009

Inflation data was released yesterday and the official Wholesale Price Index for ‘All Commodities’ (Base: 1993-94 = 100) for the week that ended on september 26th 2009 declined almost by 0.1 % to 243.0 from 243.3 for the previous week.
The Annual rate of inflation stood at .70 percent declining from .83 percent for the previous week ended 19 September 2009 and it was almost at 12.08 pecent during the week ended 27 September 2008.

Inflation still shows negative numbers

Inflation data was released and the official Wholesale Price Index for ‘All Commodities’ (Base: 1993-94 = 100) for the week ended 29th August 2009 rose by 0.2% to 241.1 from 240.7 for the previous week. The annual rate of inflation stood at -0.12% during the week ended 29 August 2009. 52 week average inflation for the week ended 29 August 2009 stood at 3.99%.I heard sopme where that the Deflation will become inflation in 3 to 4 weeks , we will see if that happens.

Deflation – Inflation in Negative at 1.61 Percent

Inflation for the first time in almost 80 years in negative zone , we know it has been moving around near or sub zero level and finally it has entered into negative zone for the first time since 1976-77.Inflation rate , calculated on point to point basis, stood at -1.61 % for the week ended 6 June 2009 as compared to 0.13 % for the previous week and 11.66 % during the corresponding week of the previous year 2008 same time.Negative inflation means not good for interest rate , it will have more burden on interest rates.

IIP – Index of Industrial Production rose 1.4 Percent in april 2009

Industrial production for April 2009 has been released and its at 1.4 percent which is good sign because it has been in declining almost 3 times in past four months.

>IIP rose 1.4% in April from a revised 0.75% decline in March 2009.
>Industrial output rose 2.4% in the 2008/09 fiscal year (April-March), down from a revised 8.5% in 2007/08.

Components of IIP

>Manufacturing output rose 0.7%
>Mining output grew 3.8%
>Electricity generation for the month jumped 7.1% YOY
>Capital goods output fell 1.3% YOY

GDP for March ending QTR 2009 is at 5.8 Percent

GDP numbers came out today and it came as a relief to the market , the Q4 March 2009 GDP is at 5.8 percent and considering previous QTR growth of 5.3 percent , its improving we have to say .But when you compare to year ago same time growth of 8.6 percent its too low.When it comes to the total year ending 2008-2009 the GDP is at 6.9 percent which is really low considering a 9 Percent and above growth year before.

Govenment of India – Main Cabinet Ministers Announced

Yesterday Dr Manmohan Singh took over as our twenty-first Prime Minister of India and today they have announces the Key Portfolios of UPA government .

Portfolio allocation:Cabinet Ministers Announced

>Shri Pranab Mukherjee : Minister of Finance
>Shri Sharad Pawar : Minister of Agriculture
Minister of Food & Civil Supplies
Minister of Consumer Affairs & Public Distribution

>Shri A. K. Antony : Minister of Defence
>Shri P. Chidambaram : Minister of Home Affairs
>Kum. Mamata Banerjee : Minister of Railways
>Shri S. M. Krishna : Minister of External Affairs
>Shri Ghulam Nabi Azad
>Shri Sushil Kumar Shinde
>Shri M. Veerappa Moily
>Shri S. Jaipal Reddy
>Shri Kamal Nath
>Shri Vayalar Ravi
>Smt. Meira Kumar
>Shri Murli Deora
>Shri Kapil Sibal
>Smt. Ambika Soni
>Shri B. K. Handique
>Shri Anand Sharma
>Shri C. P. Joshi

Government of India Announces Various Package For Industrial and Economic Growth

First it was rate cut and now they have told they will almost spend 20000 crore in various packages that will help in boosting the industrial and economic growth which are else is slowing down because of global meltdown.These are the following packages they have come out with.

- Plan, non-plan expenditure of Rs.300,000 crore (Rs.3,000 billion/$60 billion) in four months
– Parliament nod to be sought for Rs.20,000 crore more toward plan expenditure
– Across-the-board cut of four percent in the ad valorem central value-added tax
– Interest subvention of two percent on export credit for labour intensive sectors
– Additional allocations for export incentive schemes
– Full refund of service tax paid by exporters to foreign agents
– Incentives for loans on housing for up to Rs.500,000, and up to Rs.2 million
– Limits under the credit guarantee scheme for small enterprises doubled
– Lock-in period for loans to small firms under credit guarantee scheme reduced
– India Infrastructure Finance Company allowed to raise Rs.100 billion through tax-free bonds
– Norms for government departments to replace vehicles relaxed
– Import duty on naphtha for use by the power sector is being reduced to zero
– Export duty on iron ore fines eliminated
– Export duty on lumps for steel industry reduced to five percent