Current State Of

Indian Economy

May2007

Federation of Indian Chambers of Commerce and Industry New Delhi

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Report on Indian Economy

Overall Economy The re leased by CSO shows that Ind ian economy grew by 9.4% dur ing 2006-07. In absolu te terms the GDP of the count ry a t constant pr ices s tood at Rs 2848157 crores for 2006-07 showing an annual r ise of 9 .4% over the prev ious year . The rev ised annual r ise in GDP was s l ight ly h igher than the 9.2% ( for 2006-07) est imated in February 2007. In 2006-07 GDP growth was main ly fue led by Indust ry and serv ices that grew a t 10.9% and 11.0% respect ive ly cont r ibuted 26.6% and 54.9 % to the to ta l GDP growth. However , dur ing the year 2006-07 agr icu l ture and a l l ied serv ices fa i led to mainta in the growth momentum of 2005-06. Industr ial Growth Ind ian indust ry ach ieved an impress ive growth in the las t f isca l 2006-07. The overa l l indust r ia l product ion grew at 11.3% in 2006-07 as against the growth of 8 .2% in the prev ious f isca l . The growth was more manufac tur ing sector led, which grew by 12.3% in 2006-07 as compared to 9 .1% a year ago. Min ing and e lect r ic i ty sectors too pushed the overa l l indust r ia l growth post ing a h igh growth of 5 .1% and 7.2% in 2006-07 respect ive ly as against the 1.0% and 5.3% growth respect ive ly in 2005-06. Data as per the use-based c lass i f icat ion shows that bas ic and capi ta l goods – a proxy for investment demand have c locked growths of 10.2% and 17.7% respect ive ly in 2006-07 in cont rast to 6 .7% and 15.8% reg is tered dur ing the prev ious f isca l . However , the consumer durables saw a s l ight s lowdown in 2006-07 on account o f lower growths in both the consumer durables and non-durables. Dur ing the las t f isca l product ion of consumer goods grew at 10 % as against the 12% growth in the prev ious f isca l . In 2006-07, among the 16 indust ry sectors , 12 indust ry sectors swept past the growths recorded in the prev ious f isca l . Product ion growth s l id for 2 indust ry sectors and remained low for the remain ing sectors . The sectors that improved the i r per formance were bas ic meta ls , t ranspor t equipment , cot ton text i les , machinery and equipment , wood, non meta l l i c minera l products , rubber , meta l p roducts and par ts , manmade text i les , bas ic chemica ls , paper and food products . Six core infrastructure industr ies Dur ing the year 2006-07 the s ix core in f rast ruc ture indust r ies grew at a h igh of 8 .6% as compared to the 6.2% increase a year before. Th is growth ar r ived on account o f bet ter product ion numbers across the s ix core indust r ies . The four in f rast ructure indust r ies , crude pet ro leum, pet ro leum ref inery , power and coal posted growths of 5 .6%, 12.6%, 7 .3% and 5.9% respect ive ly exceeding the growths recorded in the prev ious f i sca l , mainta in ing the overa l l in f rast ructure growth.

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However growth in the product ion of f in ished s tee l and cement s lowed dur ing the f isca l 2006-07. Product ion of f in ished s tee l was observed to speed-up in the las t two months of 2006-07 compared to the corresponding months of 2005-06. . Telecommunicat ion Te lephone connect ions in the country crossed the 200 mi l l ion mark and an addi t ion of about 67 mi l l ion phones was made dur ing the year 2006-07. Today the to ta l te lephone connect ions in the count ry s tand at 206.8 mi l l ion, o f which 139.8 mi l l ion come f rom mobi le phones and the remain ing 40.7 mi l l ion connect ions f rom the landl ine connect ions. March 2007 saw mobi le phones making lowest ever addi t ion dur ing the year ; addi t ions of jus t 3.53 mi l l ion phone connect ions due to ins is tence by the Government to ensure ver i f icat ion of subscr ibers Te le dens i ty went up by 43% touching 18.31 in March 2007 against the dens i ty recorded in March 2006. Stock Market Trends The mood o f the market is such that negat ive news t r iggers the adverse index movements whi le the pos i t ives leave markets unchanged. . We have seen that the at tempt o f the cent ra l bank ’s monetary t ighten ing measures, h ike in the CRR and the lending ra tes to curb in f la t ion rose concerns among the investor communi ty . The fa l l in both the ind ices BSE and NSE seen in the midd le o f March through Apr i l 2007 was in response to the growing concern over the expensive funds. The BSE index p lunged by 4.7 percentage poin ts dur ing March end 2007over the prev ious month ’s c lose and NSE too s l ipped by 4.9 percentage po in ts . However the s tock markets have shown res i l ience in May 2007 and the host o f cor rect ive measures by the Centra l Bank resu l ted in to br ing ing in f la t ion to des i red leve ls . Inf lat ion Trends The overa l l WPI based in f la t ion for 2006-07, averaged at 5 .4% as against the 4.4% in the 2005-06. The upper l imi t o f the targeted in f la t ion for 2006-07 was breached in the las t quar ter o f 2006-07, pr imar i ly on account o f r is ing pr ices of pr imary ar t ic les and manufactured i tems. However , in f la t ion was found to average be low the set range of 5-5.5% for 2006-07. For the current f isca l (2007-08) RBI has kept the target in f la t ion ra te around 4.5%. The recent counter - in f la t ion s teps taken by the government he lped in cool ing the in f la t ion ra te that was soar ing above 6%.

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Past weeks saw YoY, WPI based in f la t ion gradual ly set t ing c loser to 5%. The measures appl ied by the RBI have checked the pr ices of some i tems fa l l ing under the broad categor ies - pr imary ar t ic les and manufactured products , fur ther he lp ing in br ing ing down the in f la t ion ra te . The RBI employed monetary t ighten ing measures to absorb the excess l iqu id i ty in the market impact ing the pr ices of the manufactured i tems. The government has regulated expor ts o f some ident i f ied commodi t ies address ing the supply crunch in var ious pr imary ar t ic les. Monsoon would a lso he lp in eas ing the pressures on the supply s ide of some pr imary ar t ic les . Monetary Indicators The Broad money growth for the las t f isca l 2006-07 s tood at 20.7% and was s l ight ly lower than the growth of M3 dur ing the same per iod a year ago. Bank cred i t to the government rose substant ia l ly dur ing the year-end 2007 compared to the same per iod of las t year . We observed s lowdown in the bank credi t to the commerc ia l sector . However , the net fore ign exchange assets o f the banks sp iked by 28.9% as agains t 11.1% in the same per iod a year ago. Scale up in investments on government secur i t ies by 10% was a lso seen dur ing the year . Impact o f the h ike in the ra tes o f long term deposi ts was re f lec ted in the numbers on aggregate deposi ts that went up by 23% in 2006-07 compared to 18% in the corresponding per iod of the prev ious year . Credi t o f f take decelerated dur ing the year compared to las t year . F iscal Management Gross tax revenue co l lec t ions grew at a ra te much h igher in 2006-07 than the prev ious year . Data up to March 2007 shows gross co l lec t ions increased at 29.3% as against the 20% increase in the prev ious year . Corporat ion tax and Income tax both cont r ibuted 45% to the to ta l tax co l lec ted and grew at 41% and 35.4% respect ive ly and th is was much h igher than the increase in the tax co l lec ted a year ago. Among the ind i rect taxes we saw co l lec t ions f rom customs mainta in the r ise, growing a t 32.7%, a l though co l lec t ions f rom the cent ra l exc ise was not as much as in the same per iod of prev ious year . In 2006-07 the Government was seen to ach ieve the targeted f isca l def ic i t . I t touched a leve l o f Rs 146348 crore represent ing 100.10% of the targeted. Compar ing the numbers o f 2006-07 wi th that o f the prev ious year ’s , we see numbers of 2006-07 c lose to the targeted f igure.

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Foreign Trade Ind ian t rade numbers ava i lab le for the year 2006-07 shows Ind ian expor ts growing at 20.9% as against the h igh growth of 24% in 2005-06 in US dol lar terms. Quar ter ly t rends in t rade shows Ind ian expor ts s t rongly growing in the f i rs t two quar ters o f 2006-07, however expor ts took a h i t f rom the midd le o f quar ter three. Ind ian merchandise expor ts was ab le to ach ieve the targeted , USD 125 b i l l ion for 2006-07. Ind ian expor ts were ree l ing under pressure s ince the th i rd quar ter o f 2006-07 due to r is ing pr ices of raw mater ia ls and la ter due to apprec ia t ing Ind ian Rupee h i t t ing the Ind ian bus iness communi ty in qu ick success ion. However we saw that Ind ian impor ts soared at 26.4% dur ing the year , fur ther widening the t rade def ic i t . The s t rong Ind ian Rupee against the green back came as a breather for the impor ter , reduc ing the impor t b i l l , whereas the apprec iat ing Rupee took expor ters in i ts gr ip . Capital Flows Capi ta l In f lows for the per iod Apr i l -February 2006-07 have swept past the in f lows rece ived dur ing the ent i re 2005-06. Di rect investment cont r ibuted USD 17.1 b i l l ion dur ing Apr i l -February per iod of 2006-07; th is was much h igher than USD 7.7 b i l l ion rece ived in the ent i re 2005-06. Por t fo l io investments however remained lower in 2006-07 than the investments in the prev ious year . Dur ing the year 2006-07, the amount ra ised by the Ind ian corporates through GDR and ADR route has been much h igher ( USD 3.7 b i l l ion) than that was ra ised in the prev ious year (USD 2.5 b i l l ion ) . Foreign exchange reserves Fore ign exchange reserves crossed the USD 200 b i l l ion mark in the f i rs t week of Apr i l 2007. Forex reserves s tood a t USD 180 b i l l ion in December 2006 and s ince then a surge in the Forex was observed. The main const i tuent o f the Forex, Fore ign Cur rency Assets touched USD 195.8 b i l l ion in the second week of Apr i l 2007. Gold , SDRs and reserve pos i t ion in IMF however d id not show much movement . The increase in the fore ign currency assets was large ly due to the ef fect o f apprec ia t ion in the non – US cur renc ies he ld in reserves ( Euro, Yen and Ster l ing) . The p i l ing up o f reserves is a s t ra in for the cent ra l bank, as i t is seen that in terest on secur i t ies exceeds the ra te o f re turn on reserves and therefore some steps need to be taken to ease the pressure due to forex bu i ldup. Trends in Exchange rate Apprec ia t ion in Ind ian Rupee against the greenback s tar ted in March 2007. Th is r ise in Rupee va lue was on account o f an in f low in the fore ign cap i ta l , in the form of FDI , ECB and Por t fo l io investments . To mainta in the exchange rate wi th in a range the cent ra l bank has been buy ing do l lars f rom the market but due to in f la t ionary pressures, RBI s l ight ly

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dis tanced i tse l f f rom the forex market . RBI ’s adopt ion of pass ive approach has made Rupee apprec ia te to leve ls that are pro impor ts . Ind ian Rupee began to apprec ia te s ince the middle o f March 2007, i t cont inued to s l ide be low Rs 44.00 and s l ip to an a larming be low- for ty one level towards the end of Apr i l 2007, I t has been found that Ind ian Rupee against the Euro too behaved s imi lar to i ts movement v is-à-v is USD, Ind ian Rupee at ta ined a leve l o f Rs 55-54 in June 2007 f rom 58-57 in March 2007, apprec ia t ing by 6.5% . Ind ian Rupee against the Euro averaged at Rs 55.11 in May 2007 up f rom an average of Rs 57.00 in the prev ious month.

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Contents

Title Page

1 Overall Economy and Industrial Growth 7

2 Core Infrastructure Industries 9

3 Telecom 10

4 Trends in inflation 11

5 Monetary indicators 14

6 Stock Market trends 17

7 Fiscal management 18

8 Foreign trade 20

9 Capital inflows 26

10 Foreign exchange reserves 27

11 Trends in exchange rates 28

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LIST OF TABLES

Table 1.1 Overall Economy and Industrial Growth 8 Table-1.2 Growth Rate of sectors by industry activity 8

Table-2.1 Growth in six core infrastructure industries-1 9 Table-2.2 Growth in six core infrastructure industries-2 9

Table-3.1 Growth of telecommunication network 10 Table-3.2 Monthly addition to the mobile phone network 10

Table-4.1 Monthly trends in Wholesale Price Index: 1-.9 11 Table-4.10 Monthly trends in consumer prices 13

Table-5.1 Monetary indicators 14-16

Table-6.1 Month trends in major stock market indices 17

Table-7.1 Trends in tax collections of central government 18 Table-7.2 Trends in central government finances 19

Table-8.1 Monthly trends in growth of merchandize trade 20 Table-8.2 Export growth of important commodities 20 Table-8.3 Growth of imports of important commodities 21 Table-8.4 Growth in major export markets 23 Table-8.5 Growth of imports from major markets 24

Table-9.1 Monthly trends in foreign investments 26 Table-9.2 Growth of non resident deposits with commercial banks 26

Table-10.1 Monthly trends in foreign exchange reserves 27

Table-11.1 Monthly trends in exchange rate of Rupee 28

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1 Overall Economy and Industrial Growth 1.1 – GDP growth ( at 1999-2000 prices ) Annual growth ( in %) % share in GDP 2005-06 2006-07 2005-06 2006-07 Agriculture 6.0 2.7 19.7 18.5 Industry 9.6 10.9 26.2 26.6 Services 9.8 11.0 54.1 54.9 1.2 - GROWTH OF INDUSTRY: RECENT TRENDS - April- March (in percentage)

Weights

2005-06

2006-07

Industry 100 8.2 11.3 Mining 10.2 1.0 5.1 Manufacturing 79.4 9.1 12.3 Electricity 10.5 5.3 7.2 Basic 35.6 6.7 10.2 Intermediate 26.5 2.5 11.7 Capital 9.3 15.8 17.7 Consumer Goods 28.7 12.0 10.0 Consumer non Durables 23.3 11.0 10.3 Consumer Durables 5.4 15.3 9.0 Textile Products 2.5 16.3 11.2 Beverages & Tobacco 2.4 15.7 11.3 Basic Metals 7.5 15.8 22.8 Basic Chemicals 14 8.3 9.2 Machinery & Equipment 9.6 12.0 14.0 Transport Equipment 3.9 12.7 14.9 Cotton Textiles 5.5 8.5 14.8 Leather 1.1 -4.8 0.3 Paper 2.6 -0.9 8.3 Food Products 9.1 2.0 8.2 Non metallic mineral products 2.8 11.0 12.8 Rubber , Plastic , Petrol and Coal 9.1 4.3 12.7 Jute and Other fibre textiles 0.6 0.5 -17.2 Wood 2.7 -5.7 29.1 Manmade textiles, wool and silk 2.3 0.0 8.2 Metal Products and parts 2.8 -1.1 11.4

Source: Central Statistical Organization

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2 Core Infrastructure Industries Table-2.1: Growth in six-core infrastructure industries (% change) April- March All

infrastructure industries

Finished steel Cement Crude petroleum

2005-06

2006-07

2005-06

2006-07

2005-06

2006-07

2005-06 2006-07

April 6.0 6.7 16.9 8.6 7.9 11.7 -0.4 -1.9 May 8.1 5.1 11.1 6.4 15.3 6.3 -1.9 1.0 June 8.3 6.2 21.9 5.6 13.3 11.2 0.4 1.2 July 2.3 9.0 10.4 8.0 3.6 13.3 -4.0 4.1 August 5.7 5.5 7.8 6.3 17.8 2.2 -16.1 11.9 September 1.8 9.9 5.9 8.4 4.9 15.9 -7.3 9.3 October 7.4 9.0 6.9 7.1 8.6 9.1 -7.1 9.3 November 5.7 9.5 14.8 9.0 7.8 11.5 -8.6 10.1 December 7.5 8.3 16.7 9.7 13.4 7.6 -8.1 10.6 January 8.2 8.7 14.3 10.4 15.4 6.8 -4.7 4.7 February 9.1 7.2 12.4 13.5 16.3 5.8 -2.0 4.9 March 7.1 10.0 10.9 15.0 17.0 5.5 2.5 3.2 April-March 6.2 8.6 11.2 10.9 12.4 9.1 -5.3 5.6

Source: Ministry of Industry Table-2.2: Growth in six-core infrastructure industries (% change) Petroleum refinery Coal Power 2005-06 2006-07 2005-06 2006-07 2005-06 2006-07 April -7.7 13.5 8.2 3.4 3.0 5.6 May -6.0 11.9 11.2 8.1 10.3 4.7 June -1.1 10.4 3.2 12.3 9.3 4.5 July 3.6 12.6 -1.7 10.6 -1.0 8.6 August 2.5 12.2 10.6 0.2 7.9 3.7 September 5.0 13.5 4.6 -0.6 -0.6 11.5 October -2.5 18.0 5.8 6.1 7.4 9.7 November 1.3 16.4 6.4 4.9 3.4 8.8 December 9.2 6.1 6.6 2.9 3.4 9.1 January 5.5 9.0 8.2 10.0 6.4 8.5 February 6.5 6.8 6.9 6.6 9.1 3.3 March 9.4 13.4 7.4 10.6 3.4 8.0 April- March 2.4 12.6 6.6 5.9 5.1 7.3

Source: Ministry of Industry

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3 Telecommunications Table-3.1 - Growth of the telecommunication network (in million) April- March Fixed line (including WLL

fixed) Cellular mobile phones (including WLL mobile)

Total phones

1996-97 14.5 0.3 14.91997-98 17.8(3.3) 0.9(0.5) 18.7(3.8)1998-99 21.6(3.8) 1.2(0.3) 22.8(4.2)1999-00 26.8(5.2) 1.9(0.7) 28.7(5.8)2000-01 33.0(6.2) 3.6(1.7) 36.6(7.9)2001-02 39.1(6.2) 6.4(2.9) 45.6(9.0)2002-03 41.5(2.4) 13.0(6.6) 54.5(8.9)2003-04 42.6(1.1) 33.6(20.6) 76.2(21.7)2004-05 45.9(3.3) 52.2(18.6) 98.1(21.9)2005-06 49.7(3.8) 90.0(37.8) 139.8(41.7)2006-07 (April-March) 40.71(-9.0) 166.0(76.0) 206.8(67.0)

Source: Telecom Regulatory Authority of India Table-3.2: Monthly addition to the mobile phone network (in million) 2002 2003 2004 2005 2006 2007 January 0.73 1.64 1.77 4.69 6.78 February 0.79 1.67 1.67 4.28 6.20 March 0.95 1.91 0.73 5.03 3.53 April 0.28 0.64 1.37 1.44 3.88 May 0.29 2.26 1.33 1.70 4.25 June 0.35 1.42 1.43 1.98 4.78 July 0.36 2.31 1.74 2.44 5.28 August 0.49 1.79 1.67 2.74 5.90 September 0.37 1.61 1.84 2.48 6.07 October 0.53 1.67 1.51 2.90 6.71 November 0.72 1.90 1.56 3.51 6.79 December 0.80 1.90 1.95 4.46 6.40

Source: Telecom Regulatory Authority of India

1 WLL subscribers of all the service providers are now counted as mobile subscribers by TRAI

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4. Inflation Trends Table-4.1: Trends in wholesale prices-1 (% change) All commodities (100) Primary food articles (15.4) Growth Contribution Growth Contribution 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 April 3.9 6.0 100 100 4.7 10.3 18.9 26.5 Table-4.2: Trends in wholesale prices –2 (% change) Food grains (5.0) Vegetables (1.5) Growth Contribution Growth Contribution 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 April 8.6 8.8 11.2 7.9 -2.4 24.8 -0.8 6.2 Table-4.3: Trends in wholesale prices-3 (% change) Primary non food articles (6.1) Minerals (0.5) Growth Contribution Growth Contribution 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 April -1.6 16.1 -2.5 16.4 49.1 12.8 6.4 1.1 Table-4.4: Trends in wholesale prices-4 (% change) Fuel (14.2) Mineral oil (7) Growth Contribution Growth Contribution 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 April 8.2 1.1 30.4 2.6 11.8 0.6 21.5 0.7 Table-4.5: Trends in wholesale prices-5 (% change) Manufactured goods (62.7) Food products (11.5) Growth Contribution Growth Contribution 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 April 1.9 5.7 31.7 59.5 1.7 5.9 5.1 11.3

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Table-4.6: Trends in wholesale prices-6 (% change) Sugar, khandsari, gur (3.9) Edible oil (2.8) Growth Contribution Growth Contribution 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 April 6.3 -12.3 6.4 -8.0 -2.7 14.7 -1.9 6.9 Table-4.7: Trends in wholesale prices-7 (% change) Textiles (9.8) Chemical products (11.9) Growth Contribution Growth Contribution 2005-

06 2006-07

2005-06

2006-07

2005-06

2006-07

2005-06

2006-07

April -0.1 1.1 -0.3 1.8 3.1 2.9 9.7 5.8 Table-4.8: Trends in wholesale prices-8 (% change) Drugs & medicines (2.5) Cement (6.2) Growth Contribution Growth 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 April 7.2 5.8 4.7 2.4 16.3 10.5 26.3 10.9 Table-4.9: Trends in wholesale prices-9 (% change) Iron and steel (3.6) Machinery & equipment (8.4) Growth Contribution Growth Contribution 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 April -5.5 7.7 -5.1 4.6 3.3 7.9 7.1 11.2 Source : Reserve Bank of India

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Table-4.10: Monthly trends in consumer prices (% change) CPI-IW CPI-UNME CPI-AL CPI-RL 2005-

06 2006-

07 2005-

062006-

072005-

062006-

072005-

06 2006-

07 April 5.0 5.0 4.2 5.2 3.0 5.6 3.0 5.2 May 3.7 6.3 4.2 5.8 3.0 6.4 3.0 6.4 June 3.3 7.7 3.9 6.5 2.7 7.2 2.7 7.2 July 4.1 6.7 4.8 5.7 3.6 6.3 3.8 5.9 August 3.4 6.3 4.3 6.1 3.2 6.5 3.2 6.2 September 3.6 6.8 4.8 6.6 3.2 7.3 3.2 7.0 October 4.2 7.3 4.5 7.2 3.2 8.4 3.2 8.1 November 5.3 6.3 5.5 6.7 4.7 8.3 4.6 8.0 December 5.6 6.9 5.7 6.9 4.7 8.9 4.9 8.3 January 4.7 6.7 5.0 7.4 4.7 9.5 4.7 8.9 February 4.9 7.6 4.8 7.8 7.2 9.8 4.7 9.5 March 4.9 6.7 5.0 NA 5.3 9.5 5.3 9.2 April-March

4.4 6.7 NA NA 4.0 7.8 3.9 7.5

Source: Ministry of Labor, Center for Monitoring Indian Economy

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5 MONETARY INDICATORS Table-5.1: Monetary sector indicators Variation in M3 (Rs crore) Variation in M3 (%) 2005-06 2006-07 2005-06 2006-07 April 84800 65099 3.8 2.4 May 95649 51126 4.2 1.9 June 108666 57542 4.8 2.1 July 43080 109799 1.8 4.0 August 68428 150820 3.0 5.5 September 149905 212882 6.4 7.8 October 156396 261161 6.7 9.6 November 172224 222433 7.4 8.1 December 195009 289087 8.4 10.6 January 230189 380403 9.9 13.9 February 277448 458241 11.9 16.8 March 478098 566096 21.2 20.7 Variation in net bank credit to

government (Rs crore)Variation in net bank credit to

government (%) 2005-06 2006-07 2005-06 2006-07 April 19058 28641 2.5 3.7 May 12453 18429 1.6 2.4 June 9339 15609 1.2 2.0 July 22108 34489 3.0 4.5 August 15557 27852 2.1 3.6 September 12382 32819 1.7 4.3 October 23990 39678 3.2 5.2 November 24811 37129 3.3 4.8 December 6660 20264 0.9 2.6 January 38648 39672 5.2 5.2 February 34935 50355 4.7 6.5 March 9828 59108 1.3 7.7 Variation in bank credit to

commercial sector (Rs crore)Variation in bank credit to

commercial sector (%)

2005-06 2006-07 2005-06 2006-07 April 28389 -10573 2.2 2.5 May 40236 -8743 3.1 -0.5 June 61245 21898 4.8 1.3 July 10073 25894 0.6 1.9 August 48223 76854 3.6 4.5 September 128947 155980 9.7 9.2 October 138885 157597 10.4 9.8 November 159316 186019 12.0 11.0 December 190678 236849 14.3 14.0 January 240169 302764 18.0 17.9 February 275797 352913 20.7 20.9 March 412755 430287 32.2 25.4 Variation in net foreign

exchange assets of banks (Rs crore)

Variation in net foreign exchange assets of banks (%)

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2005-06 2006-07 2005-06 2006-07 April 301 -46064 - 6.5 May -10474 63959 -1.6 9.0 June -13378 71845 -2.1 10.1 July -20195 87888 -3.1 12.1 August 7593 92075 1.7 12.7 September 12036 69479 1.9 9.6 October 30310 66333 4.7 9.1 November 33548 85678 5.2 11.8 December 39738 105533 6.1 14.5 January 7910 113834 1.2 15.7 February 24651 181829 3.8 25.0 March 76939 204124 11.1 28.9 Variation in non-monetary

liabilities of banks (Rs crore)Variation in non-monetary

liabilities of banks (%) 2005-06 2006-07 2005-06 2006-07 April -39065 -968 -8.8 -0.2 May -53387 22520 -12.1 4.9 June -51077 51810 -11.5 11.3 July -14531 63504 -3.6 13.6 August 2680 46025 0.7 9.9 September 4753 45573 1.2 9.8 October 38017 41352 9.4 8.9 November 46620 47843 11.6 10.3 December 43260 72859 10.7 15.7 January 57755 75166 14.3 16.1 February 59183 126156 14.7 27.1 March 22730 126898 5.1 27.0

Variation of aggregate deposits of SCB (Rs crore)

Variation in aggregate deposits of SCB (%)

2005-06 2006-07 2005-06 2006-07 April 73013 49275 4.3 2.4 May 78671 27214 4.6 1.3 June 92886 36450 5.5 4.7 July 47204 96469 2.6 4.6 August 59281 125612 3.3 6.0 September 137732 193333 7.7 9.2 October 128652 183476 7.2 8.7 November 135396 222323 7.6 10.5 December 156130 279343 8.7 13.2 January 185283 317655 10.4 15.1 February 212488 383805 11.9 18.2 March 323913 485210 18.1 23.0 Variation in investments of SCB

(Rs crore)Variation in investments of SCB

(%) 2005-06 2006-07 2005-06 2006-07 April 1742 23452 0.2 3.2 May 9677 29354 1.3 4.1 June -879 26319 -0.1 3.7 July 7213 48309 1.0 6.7 August 21265 38911 2.9 5.4 September 16326 35309 2.2 4.9

16

October 14443 42882 2.0 6.0 November 1971 47906 0.3 6.7 December -39829 27600 -5.4 3.8 January -19190 40103 -2.6 5.6 February -30212 84481 -4.1 11.8 March -22809 74706 -3.1 10.4 Variation in total credit of SCB

(Rs crore)Variation in total credit of SCB

(%) 2005-06 2006-07 2005-06 2006-07 April 27553 -9303 2.5 -0.6 May 40644 -13962 3.7 -0.9 June 60975 16091 5.5 1.1 July 33730 49840 2.9 8.3 August 49622 79042 4.3 5.2 September 124029 147657 10.8 9.8 October 135115 148490 11.7 9.9 November 155032 176653 13.5 11.7 December 205710 259267 17.9 17.2 January 234054 289038 20.3 19.2 February 270150 339326 23.4 22.5 March 354868 416115 30.8 27.6

Variation in food credit of SCB (Rs crore)

2005-06 2006-07 April 644 -3433 May 4606 -1628 June 3683 607 July -461 -4615 August 97 -4325 September -467 -7233 October -211 -4058 November 2439 -2011 December 1904 1470 January -64 2812 February 1432 4299 March 675 5930 Variation in non-food credit of

SCB (Rs crore)

2004-05 2005-06 April 26909 -5870 May 36038 -12334 June 57092 15484 July 34191 54455 August 49525 83367 September 124496 154889 October 135326 152548 November 152593 178664 December 203806 257797 January 234118 286226 February 268718 334027 March 354193 410285

Source: Reserve Bank of India

17

6 STOCK MARKET TRENDS

Table-6.1: Monthly trends in stock market indices (beginning of month figures) Date BSE Sensex % Change S&P CNX NIFTY %

Change 1.1.05 6679 7.2 2115 7.8 1.2.05 6552 -1.9 2058 -2.7 1.3.05 6651 1.5 2084 1.3 1.4.05 6605 -0.7 2068 -0.8 1.5.05 6195 -6.2 1917 -7.3 1.6.05 6730 8.6 2088 8.9 1.7.05 7210 7.1 2211 5.9 1.8.05 7669 6.4 2318 4.8 1.9.05 7876 2.7 2406 3.8 1.10.05 8492 7.8 2574 6.9 1.11.05 7944 -6.5 2387 -7.3 1.12.05 8944 12.5 2699 4.8 2.01.06 9390 5.0 2835 5.0 1.02.06 9859 5.0 2971 4.8 1.03.06 10566 7.7 3123 5.1 3.04.06 11564 9.4 3473 11.2 1.05.06 12128 4.9 3605 3.8 1.06.06 10071 -17.0 2962 -17.8 3.07.06 10695 6.1 3150 6.3 1.08.06 10751 0.5 3147 -0.1 1.09.06 11778 9.5 3435 9.1 3.10.06 12366 5.0 3569 3.9 1.11.06 13033 5.4 3767 5.5 1.12.06 13844 6.2 3997 6.1 2.01.07 13942 0.7 4007 0.3 1.02.07 14267 2.3 4137 3.2 1.03.07 13159 -7.7 3811 -7.8 30.03.07 13072 -0.7 3821 0.3 2.04.07 12455 -4.7 3633 -4.9

Source: Reserve Bank of India

18

7 FISCAL TRENDS Table-7.1: Trends in cumulative tax collections of central government (%)

Gross tax revenue Corporation tax Income tax 2005-06 2006-07 2005-06 2006-07 2005-06 2006-07 April 46.4 128.3 -30.0 238.6 -20.8 40.5 May 29.6 40.0 -71.0 271 -15.3 35.4 June 25.9 32.1 182.2 50.0 -21.7 29.3 July 22.4 35.0 117.3 80.6 -15.4 31.9 August 23.2 32.0 120.1 71.2 -9.9 27.3 September 21.9 30.5 66.8 49.2 -16.8 24.3 October 20.8 29.8 49.8 47.5 -4.5 28.5 November 19.6 31.1 17.1 53.8 22.1 27.8 December 18.8 32.2 21.7 55.2 14.7 27.0 January 20.7 31.5 20.5 50.1 24.5 27.8 February 21.6 29.6 26.9 44.1 19.4 29.9 March 20.0 29.3 20.3 41.6 16.8 35.4 Customs Excise duties Other taxes 2005-06 2006-07 2005-06 2006-07 2005-06 2006-07 April 33.8 17.9 85.6 -42.7 -2.6 69.6 May 38.0 25.8 2.5 0.51 25.6 75.1 June 38.6 31.9 4.0 6.6 43.7 81.0 July 31.6 32.7 6.5 6.2 78.4 69.3 August 29.1 33.1 6.3 6.9 87.6 66.4 September 24.1 32.7 10.4 7.4 97.0 63.7 October 21.0 31.3 6.3 7.1 107.7 58.4 November 18.8 33.6 7.9 6.7 105.3 61.7 December 16.0 32.9 8.7 6.8 95.9 64.3 January 14.8 33.4 9.9 7.7 101.6 60.9 February 13.1 34.4 11.7 5.8 100.3 59.7 March 12.9 32.7 12.2 5.8 100.2 NA

Source: Controller General of Accounts

19

Table-7.2 Trends in central government finances: April-March Actual to budget estimates

(%) Growth (%) YoY 2005-06 2006-07 2005-06 2006-07 Revenue receipts 343883 433715 12.7 26.1 Tax revenue 269992 351494 20.1 30.2 Non tax revenue 73891 82221 -8.0 11.3 Non debt capital receipts 13677 6484 -79.1 -52.6

Recovery of loans 12097 5950 -80.1 -50.8 Other receipts 1580 534 -64.3 -66.2 Total receipts 357560 440199 -3.5 23.1 Non plan expenditure 363770 412960 -0.7 13.5 On revenue account 326635 371644 9.9 13.8 On capital account 37135 41316 -46.2 11.3 Plan expenditure 140138 170032 6.0 21.3 On revenue account 111892 142481 27.9 27.3 On capital account 28246 27551 -36.8 -2.5 Total expenditure 503908 582992 1.1 15.7 Fiscal deficit 146348 142793 14.4 -2.4 Revenue deficit 94644 80410 19.0 -15.0 Primary deficit 14591 -6760 916.8 -146.3

Source: Controller General of Accounts

20

8 FOREIGN TRADE Table-8.1: Monthly trends in growth of merchandize trade (% change) Exports Oil imports Non-oil imports Total imports 2005-

06 2006-

07 2005-

06 2006-

07 2005-

06 2006-

07 2005-

06 2006-

07 April 17.2 27.0 41.4 34.6 56 14.5 51.5 20.5 May 22.3 29.6 29.8 27.3 50.1 19.2 35.5 21.6 June 18.9 40.1 28.8 55.6 17.8 9.8 30 23.9 July 26.8 40.6 29.7 32.8 31.8 20.4 33.2 42.8 August 24.9 41.1 53.9 27.2 33.3 4.4 32.4 32.2 September 7.5 41.2 71.1 25.8 -6.5 24.3 17.2 49.1 October 27.5 19.0 53.2 55.4 24 28.9 35.9 39.3 November -11.3 57.0 34.9 48.3 -2.6 40.4 8.6 36.5 December 16.1 7.7 63.9 43.3 1.5 31.2 8.4 21.9 January 21.4 5.5 58.9 15.0 9.5 27.3 10.6 23.2 February 12.3 7.8 72.5 -1.1 21.3 39.7 21.3 25.1 March 20.6 8.8 26.7 9.3 16.5 16.5 18.6 14.4 April-March 24.7 20.9 46.8 30.3 25.5 24.7 31.5 26.4

Source: Ministry of Commerce Table-8.2: Growth of major export products Exports in

April – December

2005-06 ($ Million)

Exports in April –

December 2006-07

($ Million)

Growth in April –

December 2005-06

(%)

Growth in April –

December 2006-07

(%) Primary Products 8,355.50 9,717.10 34.7 16.3Agriculture & allied products 5,247.70 6,355.50 24.9 21.11. Tea 233.6 269.1 –1.5 15.22.Coffee 203.8 260.7 62.3 27.93. Rice 799.7 828.6 34.3 3.64. Wheat 120.2 6.8 –50.9 –94.35. Cotton 151.4 366.6 214.3 142.16. Tobacco 171.7 196.6 14 14.57. Cashew 358.7 319.6 25.9 –10.98. Spices 272.5 356.2 14 30.79. Oil meal 361.4 441.1 10 2210. Marine products 882.1 937.7 29.7 6.311. Sugar & molasses 19.2 525 11 2637 Ores & minerals 3,107.80 3,361.60 55.5 8.2 1.Iron ore 1,928.70 1,776.50 62 –7.9 2.processed minerals 591.3 762.2 42.8 28.9 Manufactured goods 40,692.60 46,336.10 29.8 13.9A Leather & mfrs. 1,559.50 1,625.00 18.1 4.2B Chemicals & related 7,926.30 9,088.10 29.3 14.7

21

1.Basic chemicals Pharmaceuticals 4,780.80 5,583.20 35.8 16.8 2.plastics & linoleum 1,620.10 1,766.60 9.3 9 3.Rubber, glass 1,149.10 1,310.00 31.5 14 4.Residual chemicals & allied 376.3 428.4 49.9 13.8C. Engineering goods 11,761.50 16,045.00 37.4 36.41.Manufacture of metals 2,320.10 2,783.30 33.3 202. Machinery & instruments 2,739.20 3,640.00 53.7 32.93. Transport equipments 2,407.20 2,722.70 57.9 13.14. Iron & steel 1,981.80 2,934.80 10.8 48.15. Electronic goods 1,153.60 1,537.90 17 33.3D. Textiles 9,037.60 9,533.80 23.7 5.51. Cotton, yarn, fabrics 2,197.90 2,366.60 16.6 7.72. natural Silk 257.4 239.7 14.8 –6.93. Manmade Yarn, fabrics, made ups 1,101.20 1,205.60 –2.0 9.54. Manmade staple 43.5 93.8 62.3 115.95. Woolen yarn 50.8 49.4 32.6 –2.86. Ready made Garments 4,667.50 4,820.20 34.2 3.37 Jute 173.7 169.2 17.4 –2.68. Coir 78.6 80.9 40.7 2.99. Carpets 467 508.4 44 8.9E. Gems & jewelry 9,547.80 9,132.30 29.6 –4.4F handicrafts 288.9 190.7 27.3 –34.0G Petroleum products 6,119.00 11,308.50 67 84.8Others 1,502.10 3,633.10 33.2 141.9Total exports 56,669.20 70,994.80 33.9 25.3 Table-8.3: Growth of imports of important commodities ($ million) Imports in

April – December 2005-

06 ($ Million)

Importsin April –

December 2006-07 ($ Million)

Growth in April –

December 2005-06

(%)

Growth in April –

December 2006-07

(%)1. Bulk imports 34,700.60 49,389.40 45.5 42.3A. Petroleum & products 24,392.20 35,120.80 41.4 44 B. Bulk consumption goods 1,881.50 1,964.70 5.1 4.41. Wheat 0 189.3 — —2.Cereals & preparations 16.3 21.2 13.8 29.93. Edible oil 1,374.50 1,359.40 -6.1 -1.14. Pulses 344.1 394.1 50.8 14.5

22

5. Sugar 146.6 0.7 — — C. Other bulk items 8,426.90 12,304.00 74.9 461. Fertilizers 1,214.50 1,896.90 80.9 56.2(a) Crude 191.7 212.8 23.6 11(b) Sulphur & Un-roasted 85.7 61.3 21.9 -28.5(c) Manufactured 937.1 1,622.80 110.1 73.22. Non ferrous metals 1,024.70 1,473.40 49.1 43.83. Paper board & mfrs. 555.3 750.9 41.2 35.24. Crude rubber including synthetics 265.7 337.8 18.5 27.15. Pulp & waste paper 345.9 362.4 26.7 4.86. Metal scrap and ores 2,183.00 4,049.20 75.3 85.57. Iron & steel 2,837.90 3,433.40 114.5 21 11. Non Bulk imports 47,670.50 54,730.70 43.6 14.8 A. Capital goods 16,928.10 23,162.80 48.6 36.81. Manufacture of metals 691.6 840.8 45.7 21.62. Machine tools 569.6 800.8 103.1 40.63. Machinery 5,380.50 7,466.80 67.9 38.84. Electrical machinery 811.1 1,115.20 26.8 37.55. Electronic goods 7,536.20 9,735.60 33.2 29.26. Transport equipment 1,479.00 2,204.70 64.9 49.17. Project goods 460.1 998.8 92.3 117.1 B. Mainly export related items 11,857.50 10,390.80 40.5 -12.41. Pearls, precious & 6,197.00 4,254.50 36.8 -31.32. Organic & inorganic chemicals 4,120.00 4,544.70 43.5 10.33. Textile yarn fabric 1,227.10 1,308.60 54.5 6.64. Cashew nuts 313.5 282.9 27.8 -9.8 C Others 18,885.00 21,177.20 41.3 12.11. Gold & silver 7,396.20 8,936.20 43.4 20.82. Artificial resins, etc 1,374.90 1,522.50 79.2 10.73. Professional Instruments, etc. 1,114.00 1,320.50 43.7 18.54. Coal coke and briquettes 2,101.00 2,543.40 30.6 21.15. Medicinal & Pharmaceutical products 564 662.3 48 17.46. Chemical materials & products 635.4 798.9 37.1 25.77. Non metallic mineral manufactures 359.9 444.4 46.6 23.5Total imports 82,371.20 104,120.20 44.4 26.4Non oil imports 57,979.00 68,999.40 45.6 19Non oil imports excluding gold & silver 50,582.80 60,063.20 46 18.7Mainly industrial inputs 46,650.20 55,155.30 47.4 18.2

23

Table-8.4: Growth of major export markets Exports in

April – December

2005-06 ($ Million)

Exports in April –

December 2006-07

($ Million)

Growth in April –

December 2005-06 (%)

Growth in April –

December 2006-07 (%)

OECD countries 25,330.50 29,380.10 32.1 16EU 12,183.50 14,301.30 37.9 17.4Belgium 1,610.30 1,886.30 21.2 17.1France 1,170.50 1,199.70 36.5 2.5Germany 1,914.30 2,235.60 32 16.8Italy 1,324.10 1,961.70 21.4 48.2Netherlands 1,314.50 1,383.70 72 5.3U.K. 2,816.80 3,167.90 51.1 12.5North America 10,329.60 11,642.30 26.9 12.7Canada 571 657.1 24.7 15.1U.S.A. 9,758.60 10,985.20 27.1 12.6Asia and Oceania 1,928.80 2,479.10 33.1 28.5Australia 488 523.1 26.7 7.2Japan 1,343.40 1,507.10 32.7 12.2Other OECD countries 888.6 957.4 17.5 7.7Switzerland 275.9 239 –13.4 –13.4OPEC 8,024.70 12,025.50 23.5 49.9Indonesia 733.8 1,013.50 15 38.1Iran 580.7 977.5 –15.0 68.3Iraq 53 111.5 –24.6 110.5Kuwait 294 351.5 30.6 19.5Saudi Arabia 1,025.10 1,391.40 32.5 35.7U.A.E. 4,513.00 7,141.90 26.7 58.2Eastern Europe 1,109.00 1,344.50 17.6 21.2Romania 46.6 70.5 11.9 51.4Russia 417.1 488.5 27.5 17.1Developing countries 22,051.90 28,094.60 43 27.4Asia 17,221.20 20,742.80 43.1 20.4SAARC 3,062.90 3,562.00 31 16.3Bangladesh 901.5 895.9 12.2 –0.6Bhutan 58.7 27.7 — –52.7Maldives 41.8 39.4 63.1 –5.6Nepal 482.7 546.7 8.4 13.3Pakistan 327 789.1 20.6 141.3Sri Lanka 1,251.30 1,263.10 69.1 0.9Other Asian developing countries 14,158.20 17,180.70 46 21.3China, People's Republic of 3,382.30 4,015.40 68.1 18.7Hong Kong 2,722.60 2,633.40 39.1 –3.3South Korea 899.8 1,265.40 70.9 40.6Malaysia 606.7 686.9 –1.3 13.2Singapore 3,284.20 3,872.70 73.3 17.9Thailand 584.5 795.1 32 36Africa 3,048.20 4,973.70 36.6 63.2Benin 56.3 82.7 131 46.9

24

Egypt, Arab Republic 341.3 379.5 57.1 11.2Kenya 269.9 876.9 13.5 224.9South Africa 872.2 1,366.00 51.6 56.6Sudan 177.4 234.8 33.9 32.4Tanzania 138 169.3 49.4 22.7Zambia 38.5 68 71.9 76.7Latin American countries 1,782.60 2,378.10 54.3 33.4Others 57.4 61 55.9 6.2Unspecified 95.6 89.1 –62.4 –6.7Total 56,669.20 70,994.80 33.9 25.3 Table-8.5: Growth of major imports markets Imports in

April – December

2005-06 ($ Million)

Imports in April –

December 2006-07

($ Million)

Growth in April –

December 2005-06 (%)

Growth in April –

December2006-07 (%)

OECD countries 27,569.60 33,616.60 43.3 21.9EU 12,912.30 14,561.20 41.5 12.8Belgium 2,976.50 2,285.80 24.7 -23.2France 886.1 1,198.80 36.0 35.3Germany 3,286.30 4,151.20 64.8 26.3Italy 1,020.70 1,460.80 49.9 43.1Netherlands 620.9 624.5 63.1 0.6U.K. 2,387.60 2,292.90 40.0 -4.0North America 5,118.80 6,667.00 39.9 30.2Canada 559.2 731.9 77.6 30.9U.S.A. 4,559.60 5,935.20 36.4 30.2Asia and Oceania 5,007.40 6,792.30 42.6 35.6Australia 2,891.90 4,099.70 57.1 41.8Japan 2,016.80 2,534.70 25.8 25.7Other OECD countries 4,531.10 5,596.00 53.6 23.5Switzerland 4,309.50 5,274.20 53.0 22.4Indonesia 1,733.10 2,092.50 22.1 20.7Iran 430.9 4,491.60 129.4 942.4Iraq 1.2 3,517.80 140.0 293050.0Kuwait 231.2 3,472.00 89.7 1401.7Saudi Arabia 870.8 8,491.60 32.6 875.1U.A.E. 2,864.70 4,991.60 46.2 74.2Eastern Europe 2,341.30 2,406.10 76.5 2.8Romania 192.6 121.3 94.2 -37.0Russia 1,260.10 1,059.90 78.8 -15.9Developing countries 21,225.60 34,189.20 47.3 61.1Asia 16,963.90 27,143.70 48.4 60.0SAARC 748.9 856.8 67.2 14.4Bangladesh 59.3 139.5 148.1 135.2Bhutan 39.2 67.7 9.5 72.7

25

Maldives 1 1.9 233.3 90.0Nepal 221.5 162.1 24.9 -26.8Pakistan 100.6 187.9 87.0 86.8Sri Lanka 327.3 297.7 108.9 -9.0Other Asian developing countries 16,215.00 26,286.90 47.7 62.1China, People's Republic of 5,990.30 9,471.60 68.7 58.1Hong Kong 1,296.20 1,425.90 49.1 10.0South Korea 2,483.20 2,816.90 45.5 13.4Malaysia 1,388.80 3,185.40 12.8 129.4Singapore 1,789.80 3,206.20 32.2 79.1Thailand 711.3 953.6 64.8 34.1Africa 2,806.10 4,281.30 44.0 52.6Benin 65.9 64.5 16.0 -2.1Egypt, Arab Republic 163.2 1,106.90 76.1 578.2Kenya 29 33.3 14.2 14.8South Africa 1,501.50 1,639.80 52.4 9.2Sudan 19.3 48.9 26.1 153.4Tanzania 32.4 24.6 -21.4 -24.1Zambia

21.7 71.4 36.5 229.0Latin American countries 1,455.60 2,764.30 40.5 89.9Others 17.8 35.3 150.7 98.3Unspecified 24,547.40 270.1 41.6 -98.9Total 82,371.20 104,120.20 44.4 26.4

Source: Reserve Bank of India

26

9 CAPITAL INFLOWS Table-9.1: Monthly trends in foreign investments ($ million) Foreign direct

investments Portfolio

investments Total foreign investments

2005-06 2006-07 2005-06 2006-07 2005-06 2006-07 April 268 661 -337 3711 -69 4372 May 654 538 -90 -3334 564 -2796 June 264 523 1291 -903 1555 -380 July 324 1127 1708 -309 2032 818 August 399 619 1224 1212 1623 1831 September 282 916 1310 1238 1592 2154 October 412 1698 88 1755 500 3453 November 746 1151 271 2236 1017 3387 December 342 5130 2389 -429 2731 4701 January 482 1921 1545 1602 2027 3523 February 127 698 1821 2630 1948 3328 March 1240 966 2206 April-Feb 17142 9409 26551 Source: Reserve Bank of India Table-9.2: Growth on non-resident deposits with commercial banks ($ million) April-February

2005-06 April-February

2006-07 Foreign currency non resident (Banks) 1219 1804 Non resident (external) Rupee account 807 1744 Total 2026 3548

Source: Reserve Bank of India

27

10 FOREIGN EXCHANGE RESERVES

Table-10.1: Monthly trends in foreign exchange reserves ($ billion)

2003-

04 %

Change 2004-

05 %

Change 2005-

06 %

Change 2006-

07 %

change April 78.3 2.2 118.5 5.5 141.8 0.3 160.6 5.9 May 82.3 4.0 119.4 0.9 138.9 -2.9 164.5 2.4 June 83.2 0.6 119.5 0.1 138.4 -0.5 162.9 -0.9 July 85.6 2.3 118.4 -1.1 140.5 2.1 164.0 0.6 August 87.3 1.8 118.2 -0.2 143.8 3.3 166.4 1.4 September 92.3 4.8 119.6 1.4 143.0 -0.6 165.3 -0.6 October 93.8 1.4 121.3 1.7 143.7 0.5 167.1 1.1 November 97.4 3.5 128.2 6.9 142.1 -1.1 175.5 5.0 December 103.2 5.8 131.2 3.0 137.2 -3.4 177.2 1.0 January 106.4 3.2 129.5 -1.8 139.5 1.7 180.0 1.6 February 109.6 3.2 135.9 6.4 143.1 2.5 194.6 8.1 March 113.0 3.4 141.5 5.6 151.6 5.9 199.1 2.3

Source: Reserve Bank of India

28

11 TRENDS IN EXCHANGE RATES Table-11.1: Exchange rate of Rupee (per unit of other currencies). US dollar Euro Exchange rate Change (%) Exchange rate Change (%) 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 2006-

07 2007-

08 April 44.9 42.2 1.4 -4.0 55.2 57.0 3.4 -2.2 May 45.4 1.1 58.0 4.8 June 46.0 1.3 58.3 0.5 July 46.5 1.0 59.0 1.2 August 46.5 0.1 59.6 1.0 September 46.1 -0.8 58.8 -1.4 October 45.5 -1.3 57.4 -2.4 November 44.9 -1.3 57.8 0.7 December 44.6 -0.7 59.0 2.1 January 44.3 -0.7 57.7 -2.2 February 44.2 -0.2 57.7 0.0 March 44.0 0.4 58.3 0.7

Source: Reserve Bank of India