Indian Economy : Highlights – October 2009
• The index of industrial production registered a growth of 11 percent in the month of August
2009. This was higher than the growth of 6.8 percent registered in July 2009 and also from 1.7
percent growth registered in the same month last year. This indicates that the economy is back
on the recovery path and the stimulus packages are slowly working at the ground level. All the
three subsectors, that is, mining, manufacturing and electricity recorded an improvement, with
their respective growth rates being 11 percent, 11 percent and 10.6 percent.
• The overall index of six core infrastructure industries recorded a growth of 4 percent in
September 2009 which was same as the growth registered in September last year. However, it
was about 3 percent lower than the 7.1 percent growth seen in August 2009. Among six sectors,
crude oil and finished steel registered negative growth. The coal and the cement sectors also
witnessed deceleration in growth vis-à-vis same month last year.
• The overall inflation for the month of September 2009 was recorded at 0.5 percent. Despite the
low overall inflation the primary articles remained a source of worry, mainly due to the rising
prices of food articles.
• The broad money supply over the period April-August of 2009-10 registered a growth of 5.9
percent relative to 5.2 percent growth recorded over the same period of previous year.
• The aggregate deposits expanded by 6.5 percent during the period April-August 2009, growth in
the corresponding period of previous year stood at 5.9 percent. The bank credit disbursal
however witnessed a fall. The total food and non food credit given out during the period April-
August 2009 amounted to Rs 32,033 crore which was significantly lower than Rs 98, 840 crore
credit disbursed last year over the same period.
• An improvement was indicated in the stock market on account of some recovery taking place in
the global economy and stability in the world markets. The sensex crossed 17000 points by the
end of September 09.
• The gross tax revenue collections during the first six months of 2009-10 were Rs 2, 58,880 crore
which was lower than the last year’s revenue collection of Rs 2, 80,141 over the same period, a
decline by almost 7.6 percent. Both the income tax and corporation tax collections registered an
increase of 7.2 percent and 7.7 percent respectively. The revenue collections from indirect
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taxes, however registered a decline. While the collection from custom duty fell by about 33
percent, those from excise duty registered a decline by almost 23 percent.
The total receipts of the central government over the period April-September 2009-10
amounted to Rs 2, 51, 073 crore, while the total expenditure was Rs 4, 48, 848 crore. The
resulting deficit amounted to Rs 1, 97, 775 crore which was higher by Rs 95, 121 crore from the
deficit during the same period of last year.
• Growth in merchandise exports recorded in August 09 were USD 14.3 billion, sliding from USD
17.7 billion recorded in the same month previous year. The imports also declined from USD 33.5
billion in August last year to USD 22.7 billion this year, the decline was seen in both the
segments of imports, oil and non oil.
• The foreign direct investment inflows amounted to USD 3.3 billion in August this year, the
corresponding figure last year was USD 2.3 billion. The total inflows recorded in the month of
August 2009 amounted to USD 4.2 billion, which was higher than last year’s figure of USD 2.9
billion in the same month.
• The foreign exchange reserves for the month of August 2009 stood at USD 276.4 billion,
increasing by almost USD 25 billion since April this year.
• USD against the Indian Rupee stood at Rs 46.7 in October 2009. The rupee has gained slightly
from its value of Rs 50.1/$ in April this year.