1. Assocham Economic Research Bureau
THE ASSOCIATED CHAMBERS OF COMMERCE AND INDUSTRY OF INDIA
ASSOCHAM Economic Weekly
22nd
September, 2013
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Contents
1. Macroeconomy
1.1 Mid-quarter Monetary Policy Review
1.2 Net direct tax collection up in 2013-14
2. Corporate Sector
2.1 Mineral Production- July 2013
2.2 Commodity-Wise Freight Revenue by Railways goes up
2.3 Customs Duty on Articles of Jewellery and of Goldsmiths’ or Silversmiths’ Wares
Revised
3. Market Trends
4. Global Developments
4.1 Euro area production in construction up in July 2013
4.2 US Consumer Price Index- August 2013
4.3 UK Consumer Price Index- August 2013
5. Data Appendix

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1. Macroeconomy
1.1 Mid-quarter Monetary Policy Review
On the basis of an assessment of the current and evolving macroeconomic situation, RBI decided
to:
• Reduce the marginal standing facility (MSF) rate by 75 basis points from 10.25 per cent to
9.5 per cent with immediate effect.
• Reduce the minimum daily maintenance of the cash reserve ratio (CRR) from 99 per cent
of the requirement to 95 per cent effective from the fortnight beginning September 21,
2013, while keeping the CRR unchanged at 4.0 per cent; and
• Increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis
points from 7.25 per cent to 7.5 per cent with immediate effect.
Consequently, the reverse repo rate under the LAF stands adjusted to 6.5 per cent and the Bank
Rate stands reduced to 9.5 per cent with immediate effect. With these changes, the MSF rate and
the Bank Rate are recalibrated to 200 basis points above the repo rate.
1.2 Net direct tax collection up in 2013-14
Net direct tax collections for the current Financial Year 2013-14, up to 17th September 2013,
stood at Rs. 2,38,325 crore as against Rs. 2,11,641 crore in the same period last year showing a
growth of 12.5%. Corporate tax collections are Rs. 1,46,610 crore as against Rs. 1,35,791 crore
collected to date last year; showing a growth of 7.97%. Similarly, Personal income tax collections

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are Rs. 89,006 crore as against Rs.65,752 crore collected to date last year which is a growth of
21.08%. The collection of Securities Transaction Tax (STT) and Wealth Tax stands at Rs. 2210
crore and Rs 309 crore, respectively.
Out of the above net collections, contribution by way of advance tax up to the September Quarter
has been Rs 1,14,324 crore which is an overall growth of 9.14%. Advance tax collections from
Corporates has been Rs 1,03,374 crore which is a growth of 7.97% as against previous year’s
collection. This is better than the growth rate of 4.5% during the same period last year. Advance
Tax collections under Personal Income tax head is Rs 10946 crore, showing a rise of 24%.

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2. Corporate Sector
2.1 Mineral Production- July 2013
The index of mineral production of mining and quarrying sector in July 2013 was higher by 0.1%
compared to that of the preceding month. The mineral sector has shown a negative growth of
2.3% during July 2013 as compared to that of the corresponding month of previous year.
The total value of mineral production (excluding atomic & minor minerals) in the country during
July 2013 was Rs. 16641 crore. The contribution of petroleum (crude) was the highest at Rs. 5804
crore (35%). Next in the order of importance were: coal Rs. 4899 crore, iron ore Rs. 2472 crore,
natural gas (utilized) Rs. 1868 crore, lignite Rs. 308 crore and limestone Rs. 398 crore. These six
minerals together contributed about 95% of the total value of mineral production in July 2013.
Production level of important minerals in July 2013 were: coal 399 lakh tonnes, lignite 25 lakh
tonnes, natural gas (utilized) 2918 million cu. m., petroleum (crude) 32 lakh tonnes, bauxite 2034
thousand tonnes, chromite 214 thousand tonnes, copper conc. 11 thousand tonnes, gold 97 kg.,
iron ore 119 lakh tonnes, lead conc. 18 thousand tonnes, manganese ore 191 thousand tonnes, zinc
conc. 137 thousand tonnes, apatite & phosphorite 57 thousand tonnes, dolomite 522 thousand
tonnes, limestone 235 lakh tonnes, magnesite 15 thousand tonnes and diamond 2338 carat.
In July 2013 the output of bauxite increased by 38.3%, limestone 4.9%, zinc conc.3.9%, iron ore
2.6%, petroleum (crude) 1.8%, natural gas (utilized) 1.7% and dolomite 0.4 percent. However the
production of coal decreased by 0.8%, manganese ore 2.5%, lead conc. 3.6%, copper conc. 6.6%,
apatite & phosphorite 7.4%, magnesite 7.8%, chromite 11.9%, diamond 14.5%, gold 21.8% and
lignite 32.2 percent.

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2.2 Commodity-Wise Freight Revenue by Railways goes up
The Railways have generated Rs. 36465.59 crore of revenue earnings from commodity-wise
freight traffic during 1st April to 31st August 2013 as compared to Rs. 33841.63 crore during the
corresponding period last year, registering an increase of 7.75 per cent. Railways carried 426.14
million tonnes of commodity-wise freight traffic during April-August 2013 as compared to 405.42
million tonnes carried during the corresponding period last year, registering an increase of 5.11
per cent.
Out of the total earnings of Rs. 6775.43 crore from commodity-wise freight traffic during the
month of August 2013, Rs. 2828.56 crore came from transportation of 39.29 million tonnes of
coal, followed by Rs. 674.48 crore from 9.80 million tonnes of iron ore for exports, steel plants
and for other domestic user, Rs. 565.32 crore from 7.91 million tonnes of cement, Rs. 541.41
crore from 4.33 million tonnes of foodgrains, Rs. 396.77 crore from 3.41 million tonnes of
petroleum oil and lubricant (POL), Rs. 419.62 crore from 3.12 million tonnes of Pig iron and
finished steel from steel plants and other points, Rs. 458.81 crore from 4.93 million tonnes of
fertilizers, Rs. 116.31 crore from 1.50 million tonnes of raw material for steel plants except iron
ore, Rs. 375.61 crore from 3.69 million tonnes by container service and Rs. 398.54 crore from
5.16 million tonnes of other goods.
2.3 Customs Duty on Articles of Jewellery and of Goldsmiths’ or Silversmiths’ Wares
Revised
As part of measures to contain the current account deficit, the customs duty on gold has been
revised upwards periodically in the past two years. Prior to 17th January 2012, the import duty on
standard gold (of purity 99.5% & above) was Rs. 300 per 10 gm. The duty was raised to 2% w.e.f.
17th January 2012; thereafter, it was raised to 4% in the Budget 2012-13. The duty was further
raised to 6% w.e.f. 21st January 2013 and thereafter, it was increased to 8% w.e.f. 5th June 2013.
The duty on gold was last revised on 13th August 2013, when the duty was increased to 10%. The
customs duty on silver which was Rs. 1,500 per kg prior to 17th January 2012 was raised to 6%

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w.e.f. 17th January 2012. The duty was further raised to 10% w.e.f. 13th August 2013.
The customs duty on platinum has been revised periodically in tandem with the duty on gold.
The customs duty on articles of jewellery and on goldsmiths’ or silversmiths’ wares has, however,
not been revised upwards in line with the changes in the duty rates on gold, silver and platinum.
The duty on articles of jewellery and on goldsmiths’ or silversmiths’ wares has remained
unchanged at 10% although, as mentioned above, the duty on gold, silver and platinum has been
revised periodically since 17th January 2012. Thus, at present, the customs duty on primary metal
and articles of jewellery/goldsmiths’ or silversmiths’ wares is same, i.e. 10%.
To protect the interests of small artisans, the customs duty on articles of jewellery and of
goldsmiths’ or silversmiths’ wares and parts thereof is being increased from 10% to 15%.

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3. Market Trends
BSE: The 30 share BSE Sensex increased by 1.4 per cent and closed at 20263.71
NSE: S & P CNX NIFTY increased by 1.4 per cent and closed at 6012.10
Dollar: The value of Rupee appreciated by Rs. 0.24 against the US dollar during the
week and closed at Rs 62.24 per dollar.
Euro: The value of Rupee depreciated by Rs. 0.73 against the Euro and closed at Rs.
84.22 per euro.
Gold: Prices of gold increased by Rs. 604.13 per 10 grams during the week and closed
at Rs. 30264.88 per 10 grams.
Silver: Prices of silver increased by Rs. 1548.04 during the week and closed at Rs.
51666.37 per kg.
Crude Oil: The prices of crude oil decreased by USD 2.1and closed at USD 108.6 per
barrel.
Forex Reserves: India’s Foreign Exchange reserves increased by USD 5.4 billion to
USD 275.3 billion during the week-ended Sep, 13, 2013.

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4. Global Developments
4.1 Euro Area production in construction up in July 2013
In July 2013 compared with June 2013, seasonally adjusted production in the construction sector
rose by 0.3% in the euro area (EA17) and by 0.7% in the EU28. In June 2013, production in
construction rose by 0.9% and 0.6% respectively.
In July 2013 compared with July 2012, production in construction decreased by 1.2% in the euro
area and by 1.1% in the EU28.
Among the Member States for which data are available for July 2013, production in construction
rose in nine, fell in four and remained stable in the Netherlands. The largest increases were
registered in Romania (+8.6%), Portugal (+5.1%), Poland (+5.0%) and the Czech Republic
(+4.9%). Decreases were observed in Sweden (-4.1%), Spain and Hungary (both -1.6%) and
Slovenia (-0.5%). Building construction increased by 1.1% in the euro area and by 1.3% in the
EU28, after +0.4% and +0.2% respectively in June 2013. Civil engineering fell by 0.2% in the
euro area, but rose by 0.5% in the EU28, after +1.0% and +1.2% respectively in the previous
month.
Among the Member States, production in construction fell in eight and rose in six. The largest
decreases were registered in Portugal (-16.3%), Bulgaria (-6.9%), Slovakia (-6.8%) and Poland (-
6.4%), and the highest increases in Romania (+14.2%), Spain (+2.9%), Hungary and the United
Kingdom (both +2.0%).

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Building construction decreased by 1.0% in both the euro area and the EU28, after -2.6% and -
2.3% respectively in June 2013. Civil engineering fell by 2.0% in the euro area and by 2.3% in the
EU28, after -3.3% and -3.8% respectively in the previous month.
4.2 US Consumer Price Index- August 2013
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent in August on
a seasonally adjusted basis. Over the last 12 months, the all items index increased 1.5 percent
before seasonal adjustment.
Increases in the indexes for shelter and medical care contributed to the increase in the seasonally
adjusted all items index; they also accounted for most of the 0.1 percent increase in the index for
all items less food and energy. Within all items less food and energy, the indexes for personal
care, tobacco, and apparel rose as well, while the indexes for airline fares, household furnishings
and operations, and used cars and trucks declined.
The food index rose slightly in August, with the fruits and vegetable index rising 1.2 percent and
four of the six major grocery store group indexes increasing. The energy index declined 0.3
percent, due mostly to a sharp decline in the index for natural gas. The gasoline and electricity
indexes also declined slightly, while the index for fuel oil rose.
The all items index increased 1.5 percent over the last 12 months. The index for all items less food
and energy has risen 1.8 percent over the last year; the 12-month change has remained in the range
of 1.6 percent to 2.3 percent since June of 2011. The food index rose 1.4 percent over the last 12
months, a figure that has held steady since May. The energy index declined 0.1 percent over the
last 12 months.
4.3 UK Consumer Price Index- August 2013
• The Consumer Prices Index (CPI) grew by 2.7% in the year to August 2013, down from
2.8% in July.
• The largest contributions to the fall in the rate came from the transport (particularly motor
fuels and air transport) and clothing sectors. These were partially offset by an upward
contribution from furniture, household equipment & maintenance.

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• The other main inflation measures were unchanged between July and August: CPIH grew
by 2.5% and RPIJ grew by 2.6%.
5. Data Appendix
Table 1
Latest Available Financial Information
Item
Sep, 06, 2013 Sep, 13, 2013
Percentage
Change
Deposits of Scheduled Commercial
Banks with RBI (Rs.Billion)
3,305.11 3,563.62 7.8
Foreign Currency Assets of RBI
(Rs.Billion)
16,343.42 15,837.59 -3.1
Advances of RBI to the Central
Government (Rs.Billion)
- - -
Advances of RBI to the Scheduled
Commercial Banks (Rs.Billion)
364.79 428.00 17.3
Table 2
BSE Sensex and NSE Nifty Index
Index
Sep, 16, 2013 Sep. 20, 2013
Percentage
Change
BSE SENSEX
19,977.38 20,263.71 1.4
S & P CNX NIFTY
5930.30 6012.10 1.4

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ASSOCHAM Economic Research Bureau
ASSOCHAM Economic Research Bureau (AERB) is the research division of the
Associated Chambers of Commerce and Industry of India. The Research Bureau
undertakes studies on various economic issues, policy matters, financial markets,
international trade, social development, sector wise performance and monitoring global
economy dynamics.
The main banners of the Bureau are:
ASSOCHAM Eco Pulse (AEP) studies are based on the data provided by various
institutions like Reserve Bank of India, World Bank, IMF, WTO, CSO, Finance Ministry,
Commerce Ministry, CMIE etc.
ASSOCHAM Business Barometer (ABB) are based on the surveys conducted by the
Research Team to take note of the opinion of leading CEOs, MDs, CFOs, economists and
experts in various fields.
ASSOCHAM Investment Meter (AIM) keeps the track of the investment
announcements by the private sector in different sectors and across the various states
and cities.
ASSOCHAM Placement Pattern (APP) is based on the sample data that is tracked on a
daily basis for the vacancies posted by companies via job portals and advertisements in
the national and regional dailies, journals and newspaper. Data is tracked for 60 cities
and 30 sectors that are offering job opportunities in India.
ASSOCHAM Financial Pulse (AFP) as an analytical tool tracks quarterly financial performance
of India Inc; forming strong inter-linkages with the real economy and presents sectoral insights
and outlook based on financial indicators, demand signals and corporate dividend activity.
Email: research@assocham.com

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THE KNOWLEDGE CHAMBER
Evolution of Value Creator ASSOCHAM initiated its endeavor of value creation for Indian
industry in 1920. It has witnessed upswings as well as upheaval of Indian Economy and
contributed significantly by playing a catalytic role in shaping up the Trade, Commerce and
Industrial environment of the country.
ASSOCHAM derives its strength from the following Promoter Chambers: Bombay Chamber of
Commerce and Industry, Mumbai; Cochin Chamber of Commerce and Industry, Cochin; Indian
Merchant's Chamber, Mumbai; The Madras Chamber of Commerce and Industry, Chennai; PHD
Chamber of Commerce and Industry, New Delhi.
VISION
Empower Indian enterprise by inculcating knowledge that will be the catalyst of growth in the
barrier less technology driven global market and help them upscale, align and emerge as
formidable player in respective business segment
MISSION
As representative organ of Corporate India, ASSOCHAM articulates the genuine, legitimate
needs and interests of its members. Its mission is to impact the policy and legislative
environment so as to foster balanced economic industrial and social development. We
believe education, health, agriculture and environment to be the critical success factors.
GOALS
To ensure that the voice and concerns of ASSOCHAM are taken note of by policy makers and
legislators. To be proactive on policy initiatives those are in consonance with our mission. To
strengthen the network of relationships of national and international levels/forums. To develop
learning organization, sensitive to the development needs and concerns of its members. To
broad-base membership. Knowledge sets the pace for growth by exceeding the expectation, and
blends the wisdom of the old with the needs of the present.