economy

ECONOMY
The ADB cut India’s Growth Forecast to 5.4 percent : The Asian Development Bank (ADB) cut India’s growth forecast to 5.4
per cent in 2012-13 fiscal, barely two months after it had made a projection of 5.6 per cent growth for the Asia’s third largest
economy. India’s growth forecast is revised from 5.6 per cent to 5.4 per cent in fiscal year 2012 and from 6.7 per cent to 6.5 per
cent in FY 2013.
Rich Gulf Families Own Wealth Worth USD 1.2 Trillion : According to the ‘KFH-Research’ report said one million wealthy
families in the Gulf Cooperation Council (GCC) countries own investment assets worth about USD 1.2 trillion.The report about
wealth and funds management said that the world’s population of high net worth individuals (HNWIs) grew by a marginal 0.8 per
cent year on year to 11 million in 2011.
India Economy Would Dominate the Economy of the World by 2030 : US intelligence counsel was released report on 10
December 2012 declared that India would straddle international commerce and will also dominate the economy of the whole world
by 2030.
IOC Retains Top in Fortune 500 India List : Government owned Indian Oil Corporation (IOC) is ranked as the largest company
in terms of revenue, the Fortune 500 list of Indian companies for 2012 . In this list Indian Oil Corporation got the first place with a
full-year revenue of Rs 4,202 billion, Reliance Industries Limited got the second place with a full-year revenue of Rs 3,675 billion
and Bharat Petroleum Corporation got the third place with a full -year revenue of Rs 2,148 billion
India’s Lost $123 bn in Black Money : According to the report of ‘Illicit Financial Flows from Developing Countries: 2001—
2010,’ released by Global Financial Integrity (GFI) India lost $123 billion in black money during 2001-2010. However India’s loss is
far less than that of China, which according to the report suffered a loss of $ 2.74 trillion during the same period (2001 to 2010).
India is the eighth largest victim of black money loses.
India Lags Several Nations in Per Capita Income : India is lagging behind several countries in per capita income due to
different levels of development and various other factors, the central government was informed on 19 December. India’s per capita
GDP on Purchasing Power Parity (PPP) basis was $3,403 in 2010 and is estimated at $3,662.69 in 2011 and $3,851.31 in 2012.
Philippines introduced ‘sin tax’ : A “sin tax” on cigarettes and alcohol was introduced in the Philippines on 01 January 2013, as
part of a government bid to boost finances.Many stores started selling tobacco and drink at inflated prices before midnight , ahead
of the official implementation of the tax hikes on January 01, hitting partygoers in the pocket.Tax on cigarettes will gradually be
raised to 30 pesos ($0.72) per pack by 2017, roughly doubling the current price to around 52 pesos.Duty on alcohol will also
increase gradually until 2017, increasing the price of a bottle of beer by 23.50 pesos, with varying levels for other drinks including
wine and spirits.
LIC Launched New Jeewan Nidhi & Flexi Plus Policies : The Life Insurance Corporation (LIC) of India launched two new
Insurence policies New Jeevan Nidhi, a pension scheme, and Flexi Plus on 3 January .New Jeewan Nidhi provides the facility of
insurance coverage of full amount while the insured person keeps depositing premiums.The Flexi policy is a unit linked insurance
product. The plan not only provides a lump sum benefit on death but also maturity benefit irrespective of survival of the policy
holder
Mukesh Ambani 18th richest man in world : Indian business magnate Mukesh Ambani is the 18th richest person in the world
with a personal wealth of $24.7 billion in 2012, according to the Bloomberg Billionaires Index, a daily ranking of the world’s 100
wealthiest individuals. Mexican telecommunications magnate Carlos Slim remained the world’s richest person last year holding a
personal fortune of more than $70 billion.Microsoft founder Bill Gates and the founder of fashion retailer Zara, Amancio Ortega, got
a second and third places respectively.
Indian Companies Top Globally in R&D Investment : According to the European Commission report Indian companies have
come on the top globally when it comes to growth in their research and development (R&D) investments, leaving their counterparts
in the US and Europe far behind.Indian firms rank far below when it comes to absolute R&D investments made by them and the
top-ranked company from the country.These are the only 14 Indian companies present in a list of top-1500 entities worldwide in
terms of their annual R&D investments.The top-ranked Indian company is Infosys at 329th place and Japanese company Toyota
Motor appears at the top of the ranking in the 2012 Scoreboard.
IMF forecasted Indian Economic Growth Rate to be 5.9 percent in 2013 : The International Monetary Fund (IMF) on 23
January 2013 pegged India’s economic growth rate in 2013 at 5.9 per cent and projected a higher growth of 6.4 per cent next year
in line with the gradual strengthening of global expansion.

World Bank’s “Global Economic Prospects 2013″ Report : According to the World Bank “Global Economic Prospects 2013″
report , India’s growth is expected to inch closer to that of China in near future, in which the economies of developing countries like
India, China and Brazil are projected to be recovering and higher growth rate.The World Bank expects that by 2015, the growth
rate of China would be 7.9% and that of India 7%.While the growth of the world economy growth is projected to inch up from 2.3%
in 2012 to 2.4% in 2013, with the high-income countries remaining at the same level of growth of 1.3% in both 2012 and 2013, it
is the emerging markets like India, China and Brazil that would show significant signs of recovery.They are expecting a recovery in
India from 5.1% growth in 2012 to 6.1% growth in 2013.
India 119th on Economic Freedom Index : According to the ‘Heritage Foundation’ 2013 Index of Economic Freedom survey
report , India has been ranked as the 119th freest country in the world and India’s economic freedom score stood at 55.2, as its
institutional shortcomings continue to undermine the foundations for long-term economic development.The top ten countries in the
list include Hong Kong, Singapore, Australia, New Zealand, Switzarland, canada, Chili, Mauritius, Denmark and US.
India second in steel production globally : India is second only to China in terms of steel production. In the last 5 years India’s
production grew by 33 percent, thus making it behind China among the top 5 steel producing nation. World Steel Association (WSA)
data has revealed that China’s production grew by 39 per cent during 2008-2012, India’s by 33 percent and India’s production grew
constantly in the last five years from 57.8 MT in 2008 to 63.5 MT in 2009, 69 MT in 2010, 73.6 MT in 2011 and 76.7 MT in 2012
RBI cuts CRR, Repo Rates : On 29 January The Reserve Bank of India slashed its key interest rates by 0.25 per cent and
released 18000 crore rupees additional liquidity into the system to perk up growth through reduced cost of borrowing. RBI in its
third quarter monetary policy review surprised the market by cutting short-term lending rate called repo, by 0.25 per cent to 7.75
per cent and Cash Reserve Ratio (CRR) by similar margin to 4 per cent.
BHEL and GAIL Granted Maharatna Status : On 1 February The Union Government of India granted Maharatna status to BHEL
(Bharat Heavy Electricals Ltd ) and GAIL (Gas Authority of India Limited), a development which will provide them greater financial
and functional autonomy and also ensure better valuation for shares of the two public sector undertakings.Ideally any Maharatna
firm has a capacity to take investment decision of around 5000 crore Rupees without taking assistance from the government. On
the other hand, forms with Navratna status have the capability of 1000 crore Rupees.For any company to qualify for Maharatna
status, the annual turnover should be over 25000 crore Rupees in past three years, as per the guidelines issued by Department of
Public Enterprises.
Per capita Monthly Income Growth Eases to 14% in 2011-12 : On 1 February According to the the revised data of national
accounts the per capita monthly income, a measure to assess standard of living, grew at a slower rate of 13.7 per cent to Rs 5,130
in 2011-12 at current prices compared to Rs 4,513 in 2010-11.On the Gross Domestic Saving (GDS) front, the data revealed that
the growth at current prices in 2011-12 slowed to 30.8 per cent of GDP at market prices against 34 per cent in the previous
year.The gross domestic capital formation has increased from “Rs 28,71,649 crore in 2010-11 to Rs 31,41,465 crore in 2011- 12 at
current prices.It further revealed that the per capita private final consumption expenditure (PFCE) at current prices in 2011-12 is
estimated at Rs 42,065 as against Rs 36,677 in the year 2010-11, showing an increase of 14.7 per cent against an increase of 15.7
per cent in the previous year.
Argentina Censured by the IMF for Economic Data : On 3 February The International Monetary Fund (IMF) has censured
Argentina for the quality of its official inflation and GDP data.Inflation in Argentina is estimated by private economists to be at 25%
a year and rising but the government reported it at 11% or less for last year.Argentina became the first country to be censured by
the International Monetary Fund for not providing accurate data on inflation and economic growth under a procedure that can end
in expulsion.
Mumbai Is World’s Cheapest City : Mumbai shares the title of the world’s cheapest city with Karachi, in Pakistan, according to
the “Worldwide Cost of Living 2013” survey by the Economist Group’s Economic Intelligence Unit.After Mumbai and Pakistan comes
Delhi ,Algiers, Bucharest, Colombo and Panama City.According to the report, the five most expensive cities in the world are Tokyo
and Osaka in Japan, Sydney, Oslo and Melbourne.
Railway Budget 2013-14
On 26 February Railway Minister Pawan Kumar Bansal presented the 2013-14 Railway Budget in the Loksabha . Railway Budget
2013-14 Highlights :-
2013-14 Railway Budget Estimates – Rs.42,210 crores
Highest ever plan outlay of Rs.63,363 crores in 2013-14
Good Earnings – Rs.93,554 crores
Good Traffic Receipts – Rs.1,43,742 crores
Total Revenue Receipts – Rs.1,46,626 croresOrdinary Working Expenses – Rs.96,500 crores
Operating Ratio to be 87.8%. -
A new Forged Wheel Factory at Rae Bareli, Coach Manufacturing Unit in Sonepat District (Haryana) ,Midlife Rehabilitation Workshop
at Kurnool (Andhra Pradesh), new wagon maintenance workshop in Kalahandi (Odisha).
Highest ever plan outlay of Rs.63,363 crores
5.2 per cent growth in passenger traffic expected in 2013-14
Freight loading of 1047 MT, 40 MT more than 2012-13.
67 new Express trains to be introduced.26 new passenger services, 8 DEMU services and 5 MEMU services to be introduced. Run of
57 trains to be extended. Frequency of 24 trains to be increased.22 new rail lines to be taken up in 2013-14
Proposal for setting up of Railway Tariff Regulatory Authority formulated and at inter-ministerial consultation stage. Fuel
Adjustment Component (FAC) linked revision for freight tariff to be implemented from 1st April 2013.
72 additional suburban services in Mumbai and 18 in Kolkata
An independent Rail Tariff Authority has been formalised
ndian Railways Institute of Financial Management to be set up at Secunderabad
Recruitment to RPF with 10% vacancies reserved for women.Seek to fill 1.52 lakh vacancies in railways this year. 47000 vacancies
for weaker sections and physically challenged to be filled up soon
By end of 2013-14, 1,500 km of contracts to be awarded for two dedicated rail corridors Economic Survey of contracts to be
awarded for two dedicated rail corridors.
Union Budget 2013-14
On 28 February Union Finance Minister P Chidambaram Presented the Rs.16,65 279 Crore(Planed Expenditure Rs. 5,55,322 crore ,
Non Planed Expenditure Rs 11,09,975 crore) Union budget in the Lok Sabha for the financial year 2013-14.This is the 82’nd Budget
for India and 8th Budget for the Finance Minister P Chidambaram.In the past, former Prime Minister Morarji Desai presented the
Union Budget 8 times as Finance Minister. The Highlights of Union Budget 2013-14: Total budget expenditure seen at 16.65 trillion
rupees in 2013-14.
on-plan expenditure estimated at about 11.1 trillion rupees in 2013-14.
India’s 2013-14 plan expenditure seen at 5.55 trillion rupees
Revised estimate for total expenditure is 14.3 trillion rupees in 2012-13, which is 96 point of budget estimate
Expect 133 billion rupees through direct tax proposals in 2013-14
Expect 47 billion rupees through indirect tax proposals in 2013-14
Target 558.14 billion rupees from stake sales in state-run firms in 2013-14
Expect revenue of 408.5 bln rupees from airwave surcharges, auction of telecom spectrum, licence fees in 2013-14
But will give some tax relief of Rs. 2000 for every person who has an annual income of up to Rs. 5 lakh
RBI expected GDP growth of 5.5% for Financial Year 2013-14
Rs.1000-crore Nirbhaya Fund announced for the empowerment of women
Rs.6,000 crore to be allocated for rural housing fundDefence allocation increased to Rs. 2.03 lakh crore
Rs. 6,275 crore to ministry of science and technology, Rs. 5,880 crore to Department of Atomic Energy
Rs.27,049 crore allocation to the Agriculture Ministry
Rs. 37,330 crore allocated for Ministry of Health & Family Welfare
Rs.110 crore to be allocated to the department of disability affairs
Rs.37,330 crore allocated for Ministry of Health & Family Welfare
Rs.14000 crore will be provided for PSB recapitalization. He will constitute a panel on transaction costs, and financial policies.
Rs.6,5867 crore for Education , an increase of 17 percent over RE for 2012- 13.
Rs 6275 crore to Ministry of Technology
Rs.2 trillion for defence sector
Rs.15,260 crore to be allocated to Ministry of Drinking Water and Sanitation.
Rs.14,873 crore for JNNURM for urban transportation
Rs.80,194 crore allocation for Ministry of Rural Development
Rs.33,000 crore for MGNREGA
Rs.37,330 crore allocated for Ministry of Health & Family Welfare.
Rs.13215 crore for mid-day meal programme
Rs.41,561 crore for SC plan and Rs 24,598 crore for tribal plan.
3511 crore allocation to minorities which is 12 per cent hike over budget estimates, 110 crore rupees allotted for welfare of
disabled.
65867 crore rupees have been allocated to the Ministry of Human resources development which is 17 per cent hike over the revised
estimates.
A surcharge of 10 percent on persons (other than companies) whose taxable income exceeds Rs.1 crore have been levied.
Relief of Rs. 2000 for the tax payers in the first bracket of 2 to 5 lakhs.”
Nine Indian Women in Forbes Asia Power Business Women List : On 1 March ICICI Bank CEO and MD Chanda Kochchar,
Biocon founder Kiran Mazumdar-Shaw and film producer Ekta Kapoor are among the nine Indian women named in Forbes
magazine’s inaugural ‘Asia Power Businesswomen list’.The list also includes Britannia Industries Managing Director Vinita Bali ; HT
Media Chairman and Editorial Director Shobhana Bhartia ; AZB & Partners Founder and Senior Partner Zia Mody ; Axis Bank CEO
and Managing Director Shikha Sharma ; and Tractors & Farm Equipment Chairman Mallika Srinivasa; Kapoor, TV and movie
producer.
Mukesh Ambani Is Richest Indian on Forbes’ list : As per an annual ranking published on 4 March 2013 by business magazine
Forbes,Mukesh Ambani has retained his title as India’s richest person for sixth year in a row,with networth of $ 21.5 billion.In the
overall rich list of world’s billionaires, Mukesh Ambani is ranked 22nd, while the second-richest Indian Lakshmi Mittal is at 41st
position with a networth of USD 16.5 billion.Mexican business tycoon Carlos Slim has topped the rankings with a networth of USD
73 billion, followed by Bill Gates (USD 67 billion), Spain’s Amancio Ortega (USD 57 billion), Warren Buffett (USD 53.5 billion) and
Larry Ellison (USD 43 billion) in top five.
Delhi, Mumbai, Hyderabad Airports Among Top 5 in the World : Airports of Delhi, Mumbai and Hyderabad are among the top
five airports in the world providing international standard services.Airports Council International (ACI),a global body of airports, has
adjudged Delhi’s Indira Gandhi International (IGI) airport as second best after Seoul’s Incheon airport in the category of airportshandling 25-40 million passengers per annum (MPPA) for their service quality for the year 2012.Mumbai’s Chhatrapati Shivaji
International airport was adjudged the third best in this category.Hyderabad’s Rajiv Gandhi International airport (RGI) has bagged
the second position for their service quality in the category of five to 15 MPPA. Japan’s Nagoya airport was adjudged the best in this
category. Seoul’s Incheon ranked first, Singapore’s Changi second and Beijing was placed at the third spot.
RBI to Launch Plastic Currency Notes in 5 Cities :On 12 March The Union Government and RBI decided to introduce one billion
pieces of 10 Rupees bank notes made of plastic on a field trial basis in five cities.A 10 Rupees note in polymer/plastic on a field trial
basis will be introduced first; Minister of State for Finance .The field trail is supposed to be conducted in five cities of Kochi, Mysore,
Jaipur, Bhubhaneswar and Shimla with varied geographical locations and climatic conditions.As per the RBI, the primary objective
of introduction of polymer notes is to increase its life, it could also help in combating counterfeiting.
Gujarat Tops in FMCG Consumption : On 12 March According to the ‘Evolution of Indian Rural Markets During 2004-05 to 2009-
10’ report released by the Associated Chambers of Commerce and Industry of India (Assocham) , Gujarat has garnered maximum
growth in per capita food and non-food consumption expenditure across the country between FY05 and FY10 with growth rate of
about 28% and 33% respectively. Besides registering a growth of about 24.69%, Gujarat has also topped in terms of household
consumption of fast moving consumer goods (FMCGs) during the fiveyear period.West Bengal has seen least growth of just about
1.6% and about 8% in per-capita food and non-food consumption expenditure, respectively.The per capita food and non-food
consumption expenditure across India has increased at over 14% and 17%, respectively, between FY05 and FY10.
India Top Rice Exporter in FY 2011-12 : On 13 March As the export price of Indian rice was more competitive than the Thai
rice, India has displaced Thailand from the position of top exporter of rice during 2011-12, Minister of State Commerce and
Industry was informed to Rajya Sabha.In 2010-11, the rice exports stood at 24.71 lakh tonnes from 21.56 lakh tonnes in the
previous fiscal.Rice exports were at 74.67 lakh tonnes during April-December 2012 against 71.75 lakh tonnes in the full fiscal year
of 2011-12.
India 5th in World Billionaire Rich List : According to the Knight Frank “Wealth Report 2013”, India stands 5th among the top
10 countries with the largest number of billionaires with 122 and the number is expected double by 2022.Mumbai has secured the
7th spot in the list of top global cities with a High Net Worth Individual HNWI population.Presently, the city has 2,105 HNWIs and is
expected to touch 4,988 with a 137 per cent rise by 2022. Delhi is not too far behind Mumbai; it ranks 11th with a current HNWI
population of 1,945 which is likely to grow by 120 per cent and reach 4,278 by 2022. In the cities that that matter to HNWI’s , New
York and London are the first two places in the list.
India May Become 5th Largest Manufacturing Nation : According to the Boston Consultancy Group (BCG) report titled ‘People
productivity-Key to Indian manufacturing competitiveness’, India may become the 5th largest manufacturing nation from 9th
position at present, if the country is able to increase the share of manufacturing in GDP to 25 per cent.The National Manufacturing
Policy envisages that India’s manufacturing sector should increase its share of GDP from 15 percent at present to 25 percent by
2022, in line with global peers.It will help India become the fifth-largest manufacturing nation.
Hindujas are Britain’s Richest Asians : Leading NRI businessmen Srichand Hinduja and Gopi Hinduja, Chairman and Co-
Chairman of the Hinduja Group, have emerged as the richest Asians in Britain in 2013.After playing second fiddle for years to steel
tycoon Lakshmi Mittal, the Londonbased Hinduja brothers have come out top this year with net wealth assessed at 12.5 billion
pounds – up 3 billion pounds on the 2012 figure.
Mumbai Falls to 66th Rank Among Leading Global Financial Hubs : According to the latest Global Financial Centres Index
(GFCI), Mumbai which is India’s financial capital has slipped to 66th rank in the list of leading financial centres around the world,
with New Delhi failing to even make a mark.GFCI offers profiles,ratings and rankings for 79 financial centres around the world
positioned Mumbai at the 66th place, which is down three places from last year when it was ranked 63rd on the much coveted
list.Mumbai is the only Indian city on the list. London topped the list, followed by New York ranking second in the list. Hong Kong
and Singapore in the third and fourth place respectively.
RBI Cuts Repo Rate by 25 Base Points : On 19 March The Reserve Bank of India (RBI) cut the repo rate by 25 basis points to
7.5 per cent from 7.75 percent in its midquarter review of the monetary policy. Consequently, the reverse repo rate under the LAF
stands adjusted to 6.5 per cent from the earlier 6.75 per cent and the marginal standing facility (MSF) rate and the Bank Rate to
8.5 per cent with immediate effect.The Cash Reserve Ratio (CRR) has been retained at 4 per cent.
India Joins The Madrid Protocol System : On 8 April India joined the International Registration of Marks at the World
Intellectual Property Organisation (WIPO) by depositing the instrument of accession to the Madrid Protocol.India is the 90th
member to join the international trademark system.India is the 90th member to join the international trademark system and the
treaty will enter into force with respect to India on 8 July 2013.The Madrid Protocol system provides for the international
registration of trade marks by way of one application that can cover more than one country. The opportunity of having a single
registration to cover a wide range of countries gives advantages, both in terms of portfolio management and cost savings, as
opposed to a portfolio of independent national registrations.
Yamaha to Develop Cheapest Bike of the World in India : Yamaha, the Japanese two-wheeler company on 9 April 2013
announced that it will soon roll out the cheapest motorcycle of the world in India. The price of this bike would be around 500 US
dollar or 27000 Rupees approximately.
WTO cuts 2013 global trade growth forecast to 3.3% : The World Trade Organisation (WTO) on 10 April 2013 cut its forecast
for global trade growth in 2013 to 3.3 percent, from the previous prediction of 4.5 percent.

Gujarat Tops in Attracting Private Investment : According to the “”Composition of Outstanding Private Investments Across
States “” report released by Assocham ,Gujarat has ranked on top for attracting investment across the country — cornering about
14 per cent of total outstanding private sector investment worth over Rs 75 lakh crore as of December 2012.Odisha ranks second
with private investment commitments worth over Rs 8 lakh crore.With a share of about 9.4 per cent and 9.3 per cent, Andhra
Pradesh and Maharashtra both have attracted private investments worth over Rs 7 lakh crore respectively.The private sector
accounts for over 62 per cent of total outstanding investments worth about Rs 122 lakh crore attracted by India as of December
2012.Of the total investments from private sources worth over Rs 75 lakh crore, the domestic private sector accounts for a majority
share of about 58 per cent.Himachal Pradesh, Jammu and Kashmir, Uttarakhand and Assam account for a share of less than even
one per cent in the total private investment commitments attracted by India.
IMF slashed Economic Growth Rate of India to 5.7 percent from 5.9 percent for 2013 : IMF(International Monetary Fund)
in its latest release on 16 April 2013 of the World Economic Outlook (WEO) slashed the growth projection of India from its earlier
prediction of 5.9 percent to 5.7 percent for the calendar year 2013.
Ambani Brothers 20th Richest in World : Mukesh and Anil Ambani, India’s leading industrialist brothers, have been together
listed as 20th richest in the world in the Sunday Times Rich List 2013.The Walton family of the US, who own Supermarkets
(Walmart), are the richest in the world with a 90 billion pounds fortune in 2013 as against 51 billion pounds last year.The Hinduja
brothers, Srichand and Gopichand Hinduja, Chairman and Co-Chairman respectively of the Hinduja Group, are 47th richest in the
world with a fortune worth 11 billion pounds in 2013 as against 9 billion pounds last year.
Spain Unemployment Rate Hits New Record : On 24 April According to the National Statistics Institute data ,Spain’s
unemployment rate soared to a new record of 27.2% of the workforce in the first quarter of 2013.The total number of unemployed
people in Spain has now passed the six million figure, although the rate of the increase has slowed.The jobless rate, which stood at
7.9% in mid-2007, has risen relentlessly since the collapse in 2008 of a Spain’s labour-intensive property boom.
India became the world’s eighth most powerful nation : According to Delhi-based Foundation for National Security Research
(FSNR), the world’s 10 most powerful countries, India had been ranked 8th. India is ranked eighth in 27 countries. Professor Satish
Kumar says that we study about the selection of powerful countries on several grounds. Some of these countries had to fulfill the
necessary criteria. For instance, were the countries, whose population was more than 5 million. The level of GDP was over U.S. $
500 billion. India is one of such countries.Study states that the United States is the world’s most powerful country and China stood
in 2nd position.
India’s GDP likely to improve to 5.7% in 2013: IMF : According to International Monetary Fund’s(IMF) ‘Regional Economic
Outlook: Asia and Pacific’ report ,the GDP of India in 2013 is 5.7% and in 2014 it is 6.2%.