Date: November 27 - December 03, 2012

1 News Feature

Issue No. 501

Page 1-2

India infrastructure sector growth at 8-month high of 6.5% in October Manufacturing PMI at 5-month high in Nov

2 Overseas Investment
FDI inflows jumps over two-fold to $4.67 bn in September FII inflows cross Rs 100K cr this year FII limit in domestic debt raised by $10 bn FIPB to approve foreign investments in pharma sector

Page 3-6

3 Trade News
'London' favourite tourist destination for Indians: Boris Johnson India-New Zealand FTA likely by 2013 Indian ICT firms passionate about Nigerian market Latin America offers great opportunity for Indian IT firms: IDC

Page 6-10

4 Sectoral News
Govt likely to come up with first agri policy by December Indian mobile apps industry to touch Rs 1,804 cr in 2012: IAMAI Two shopper segments to add $3 bn in FMCG sales: Nielsen India India's 2013 wheat exports seen at 3 mn T - state firm official Indian pharma cos market revenue share up at 32% in Q2 FY13

Page 11-15

5 News Round-up
Morgan Stanley raises India's FY13 GDP forecast to 5.4 per cent Indias rating outlook stable: Moodys

Page 15-16

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News Feature
India infrastructure sector growth at 8month high of 6.5% in October
Driven by coal and petroleum refinery, eight core sector industries registered eight-month high growth of 6.5 per cent in October, a trend that is in contrast to fall in country's overall economic growth in July-September period. Core sector industries had grown by a mere 0.4 per cent in the same month last year. Petroleum refinery products and coal production grew by 20.3 per cent and 10.9 per cent, respectively in the month under review. Steel output grew by 5.9 per cent. Fertiliser and cement output increased by 2 per cent and 6.8 per cent, respectively. "The modest growth in October was on account of double digit growth witnessed in the production of petroleum refinery products and coal," said an official statement. This is the highest growth rate registered by core sector industries since February, 2012 when the expansion was 6.9 per cent. Notably, 6.5 per cent growth in infrastructure industries is in contrast to the decline in GDP growth in July-September period of this financial year (2012-13). Economic growth slipped in the July-September quarter to 5.3 per cent, raising fears that the slowdown may pull down the annual growth rate to decade's low level. In October, growth in electricity generation, however, slowed to 5.2 per cent. Natural gas and crude oil production contracted by (-) 14.9 per cent and (-) 0.4 per cent, respectively. During April-October, the core sector growth has slowed to 3.7 per cent from 4.3 per cent in the year-ago period. The growth in core sector industries in May, June and July and August had moderated to 4 per cent, 3.6 per cent, 1.8 per cent and 2.1 per cent, respectively. In the same months last year, it was 5.9 per cent, 5.6 per cent, 8.2 per cent and 3.8 per cent, respectively. However, in September the annual growth in the eight core sector industries more than

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doubled to seven-month high of 5.1 per cent from 2.5 per cent in September 2011. http://www.financialexpress.com/news/indiainfrastructure-sector-growth-at-8month-highof-6.5-in-october/1038596/0

numbers for manufacturing in the gross domestic product (GDP) data for the second quarter were released. However, HSBC said, output growth remains constrained by power shortages. Backlogs of work still rose, though at a slower pace than in October. Output remains constrained by continued power shortages, and stocks of finished goods were, consequently, drawn down again to meet the rise in demand, Eskesen added. Manufacturing grew just 0.8 per cent in Q2 of 2012-13, marginally better than 0.2 per cent in the previous quarter but lower than 2.9 per cent in the corresponding period of last financial year. This dragged down GDP growth to 5.3 per cent in the second quarter of this financial year against 6.7 per cent in the corresponding period of the previous fiscal. The GDP growth was lower than 5.5 per cent in the first quarter of this year but was same as the one recorded in the fourth quarter of 201112, which was a three-year low. Electricity generation slowed to an eightquarter low of 3.5 per cent in the second quarter of this financial year, which was also a reason for the muted manufacturing growth. http://businessstandard.com/india/news/manufacturing-pmiat-5-month-high-in-nov/494489/

Manufacturing PMI at 5-month high in Nov

The widely tracked HSBC Purchasing Managers Index (PMI) a measure of factory activity jumped to a five-month high of 53.7 points in November from 52.9 in October. PMI has remained above 50, below which is the contraction zone, for more than three years now, said a statement released by Markit Economics, a financial information firm which compiles the data. The robust numbers in November were attributed to strong growth in new orders by Markit Economics. The manufacturing sector gained momentum. Thanks to a strong pick-up in new orders, which lifted output growth, HSBC Chief Economist for India and Asean Leif Eskesen said. November was the month of festivals. PMI measures growth on a month-on-month basis because of which seasonality is not entirely factored into it. The data of factory activity comes after dismal

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Overseas Investment
FDI inflows jumps over two-fold to $4.67 bn in September
India's foreign direct investment (FDI) inflows more than doubled to USD 4.67 billion in September, according to an official of the Department of Industrial Policy and Promotion (DIPP). In September 2011, the country had attracted FDI worth USD 1.76 billion. The September 2012 figure is the highest for any month in this fiscal so far. Foreign inflows, in August 2012, had declined by 20 per cent to USD 2.26 billion after registering an increase in July at USD 1.47 billion. In April, May and June, the inflows ranged between USD 1.24 billion and USD 1.85 billion. For the April-September 2012 period, FDI inflows, however, declined by about 33 per cent to USD 12.84 billion from USD 19.13 billion in the year-ago period as inflows were small in the initial months, the official told. Sectors which received large FDI inflows in September include services (USD 3 billion), metallurgical (USD 685 million), construction (USD 644 million) and automobile (USD 635 million). For the April-September 2012 period, India received maximum FDI from Mauritius (USD 6.25 billion), Japan (USD 1.32 billion), Singapore (USD 1.12 billion) the Netherlands (USD 968 million) and the UK (USD 592 million). The inflows had aggregated to USD 36.50 billion in 2011-12 against USD 19.42 billion in 2010-11 and USD 25.83 billion in 2009-10. http://economictimes.indiatimes.com/news/e conomy/finance/fdi-inflows-jumps-over-twofold-to-4-67-bn-inseptember/articleshow/17465969.cms

FII inflows cross Rs 100K cr this year

After a lull in calendar 2011 on the net inflow of funds from foreign institutional investors (FIIs), 2012 has come out on a strong footing. The net FII inflow into Indian equities crossed Rs 1,00,000 crore in the calendar year 2012. According to the data available with Sebi, this is

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the second highest inflow in a calendar year ever, the highest being Rs 1,33,266 crore in 2010. At Rs 1,00,114 crore so far this year, FIIs have pumped in significant money even as the domestic economy slowed amidst a weak global environment. A report prepared by BNP Paribas says that the bulk of the FII inflows into India have come from Asia ex Japan and Global Emerging Markets funds about 55 per cent of total inflows. The report also says that Indias share in Asia-6 has gone up. India has received unprecedented inflows in 2012. Indias share of FII inflows into Asia-6 has been 54 per cent, which is much higher than the historical norm of 25-30 per cent, said the BNP Paribas report. Traditionally, a strong FII inflow has had a direct bearing on the Indian equity market. While the strong inflow in 2010 saw the Sensex going up by 17.4 per cent in 2010, it has already gone up by 21.9 per cent in the calendar 2012. Market experts say that while the global economy has not been doing well India is one of the markets where there is growth. India is a good destination for FIIs to come in as not many economies have high growth rates

and also valuation wise Nifty stocks are not very stretched, said B Gopkumar, vice president and head of broking at Kotak Securities. http://www.financialexpress.com/news/fiiinflows-cross-rs-100k-cr-this-year/1037203/0

FII limit in domestic debt raised by $10 bn

To attract long-term investments into the debt market and to narrow the current account deficit, the finance ministry raised the foreign institutional investor (FII) limits in government securities and corporate bonds by $5 billion (Rs 27,600 crore) each. The additional $10 billion would raise the total FII investment limit allowed in a year in domestic debt to $75 billion (Rs 4.14 lakh crore). The high-level committee on external commercial borrowing, headed by economic affairs secretary Arvind Mayaram, took the decision, to encourage long-term foreign funds into the Indian debt market. According to ministry officials, the $5-billion window in government securities would be without any stipulated residual maturity. It would be open to pension funds, central banks

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and sovereign wealth funds. The other $5billion segment would be open for corporate bonds. This overall limit of $75 billion in domestic debt is distributed through a host of categories across government, corporate and infrastructure debt. The guidelines in this regard would be notified in a week to 10 days by the Reserve Bank of India. http://www.businessstandard.com/india/news/fii-limit-indomestic-debt-raised-by-10-bn/494198/

The decision was arrived at a meeting called by prime minister Manmohan Singh to end the deadlock on the issue between finance and commerce and industry ministries, two officials privy to developments told. Finance minister P Chidambaram and commerce, industry minister Anand Sharma and health minister Ghulam Nabi Azad attended the meeting. Foreign Investment Promotion Board (FIPB) will decide on foreign investment proposals till the time competition law is amended, one official said. The law ministry will examine if the conditions agreed through inter-ministerial consultations to protect interests of Indian consumer can be incorporated in the competition law, the second official said. The government had in October last year said all foreign acquisitions in the pharmaceuticals sector would require FIPB approval, changing a 10-yearold policy that had all investment in the sector on the automatic route. The tighter policy came after health ministry, some parliamentarians, NGOs and section of the industry expressed fears that the spate of buyouts of Indian drug companies by multinationals in recent years could undermine

FIPB to approve foreign investments in pharma sector

The nodal body responsible for approving foreign investments that require government approval would continue to clear foreign acquisitions in pharma. The nodal body responsible for approving foreign investments that require government approval would continue to clear foreign acquisitions in the pharmaceuticals sector till the time appropriate changes are made in the competition law to eventually pass on the oversight to the country's competition authority.

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public health by reducing availability of low-cost medicines for Indians.

http://economictimes.indiatimes.com/news/n ews-byindustry/healthcare/biotech/pharmaceuticals/ fipb-to-approve-foreign-investments-inpharma-sector/articleshow/17468096.cms

Trade News
'London' favourite tourist destination for Indians: Boris Johnson
London, described as world's most visited city has become a favourite tourist attraction for Indians as visitors from the country grew by nearly 28 per cent from last year, Mayor of London Boris Johnson has said. According to figures from the Mayor's official tourism and investment agency, London & Partners, the number of Indian tourists is now at a five year high, with 145,000 visitors in the first half of 2012 - up 28 per cent from 113,000 in the same period last year. Over the last three years, visitor numbers from India and the wider Asia region have risen dramatically, with spend from Asia now accounting for almost 10 per cent of total tourism expenditure. The Mayor outlined what makes London the best big city in Europe both to invest in and visit, a statement from his office here said. "London's boundless opportunities, both as a vibrant international destination and a phenomenally well-connected business and investment hub, are ripe and plentiful especially for surging emerging economies like India's," Johnson said. "As well as wooing record numbers of tourists from India, London is also attracting leading Indian firms in the leisure and hospitality sector, creating jobs and growth for the capital," he said. London, which is now a key location for India's expanding leisure businesses seeking an international platform, since the significant business and leisure travel into the capital has

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led to hotel occupancy levels consistently over 80 per cent for the last five years. The figures which were announced as two of India's top hospitality firms confirmed they are significantly increasing their investment in London. Leading hotel operator Lalit Suri Hospitality announced that it had acquired the heritage building, St Olave's, near Tower Bridge for 15 million pounds. And the Bird Group, one of the largest diversified business conglomerates in India, invested in the purchase of the Royal Park hotel near Hyde Park early last year and have since upgraded it from a 4 star to a 5 star establishment. http://www.financialexpress.com/news/londo n-favourite-tourist-destination-for-indiansboris-johnson/1036915/0

We are at a stage of serious negotiations. We believe good relationships are not build in haste. It could take three months or 12 months. But we hope to conclude by next year, New Zealand Primary Industries Minister David Carter told PTI on the sidelines of an interactive meet organised by FICCI. The negotiations on FTA between the two countries started 18 months ago. Its finalisation would depend on Parliamentary timetable of New Zealand and political situation in India, Carter said. Expressing concern over Indias high tariffs imposed on imported items, the visiting New Zealand minister said, Tariff level at the moment for butter coming into India is 30 per cent, 60 per cent on milk, 150 per cent on wine. There cannot be tariff of up to 150 per cent. So, I think we will be working passionately to address this issue in FTA. During the interactive session, Carter said, India must not see New Zealand as a threat. We do not come as a threat...Lot of people think that New Zealand has such international reputation for being producer of good food. We produce a lot of food and there is fear that we can flood the market in India. It just could never

India-New Zealand FTA likely by 2013

New Zealand said it expects to conclude the negotiations for a Free Trade Agreement (FTA) with India by next year and it would work passionately to address the issue of high duties levied on its products here.

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happen. He also emphasised the role of each country in addressing the global food security. High Commissioner of New Zealand in India H E Jan Henderson said her country has brought down the tariff on imported items to zero to all trading nations in an effort towards strengthening bilateral trade relations. We have reduced our tariffs because we believe free trade with small nations and we want to do good trade with all nations. There should not be artificial barriers. Bringing down the tariff level is also part of the negotiation with India, she said. India has already implemented similar agreements with Singapore and South Korea and signed such pacts with Japan and Malaysia. Joint Secretary in the Agriculture Ministry Sanjeev Chopra said India sees lot of scope in partnering with New Zealand in areas of post harvest management, cold chain and sharing of information on food safety standards. http://www.thehindubusinessline.com/industr y-and-economy/indianew-zealand-fta-likelyby-2013/article4150750.ece

Indian ICT firms passionate about Nigerian market

A 13-member delegation of Indian Electronic and ICT firms participating in a buyer-seller meet here have expressed optimism in Nigeria emerging as a major market for products and services from India. The companies are participating in a three-day business tie-up summit organised by the High Commission of India in Nigeria and the Electronics and Computer Software Promotion Council of India. "There is a huge business opportunity in Nigeria and India SMEs are ready to do business in Nigeria because the country has a big telecoms market and the next generation will make a huge difference." head of the delegation from India and Managing Director of Telematic4u Services Ltd, Pratap Hedge told after the interaction with Nigerian businessmen. According to him, the major advantage and facilitator of business between both countries is English as a common language. He said sectors like telecoms are growing at fast pace in Nigeria.

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He added that the large population of the oil rich African country is a big advantage citing instance from India which also has a large population that became advantageous. "Our Council is in Nigeria to interact with Nigerian buyers of ICT products and services, as well as explore the possibilities of business cooperation and strategic alliances with them," he said. "As a catalyst for the India ICT industry, our council is here to develop a new mechanism of making our products accessible and affordable to Nigerians," he added. Managing Director and CEO of Airtel Nigeria, a subsidiary of Bharti AirtelBSE 0.24 %, Rajan Swaroop while sharing his experience in Nigeria with the businessmen said the country has the potential to surpass India in the ICT sector. "In 1990, India was in the same position Nigeria found itself today but the potential of this African country is huge," he said. "Information Technology (IT) is one of the thrust areas identified by the Department of Commerce of the Government of India for enhancing trade between India and Nigeria," the High Commission in Nigeria said in a statement before the meeting.

With bilateral trade at over USD 17.3 billion, India is currently Nigeria's second largest trading partner. http://economictimes.indiatimes.com/news/e conomy/foreign-trade/indian-ict-firmspassionate-about-nigerianmarket/articleshow/17391529.cms

Latin America offers great opportunity for Indian IT firms: IDC

The economic prosperity in the Latin America region and the adoption of technology by the countries in the region is slowly creating opportunity for Indian IT services industry. The region is slowly witnessing a transformation and the country is slowly prospering as global companies turn their eyes to the emerging markets for growth. According to a study by global market intelligence and advisory firm International Data Corporation (IDC) in the Latin American region cloud, mobility, big data and social web are helping in economic prosperity and is creating a new intelligent economy, which is in turn is driving ICT ecosystem. With markets stagnant in mature countries, Indian IT companies are looking at Latin America as the next frontier of growth. Big banks, telecommunication

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companies and large manufacturers have already started to outsource large chunks of their IT operations and its incumbent upon the industry to take advantage of this, Jaideep Mehta, Vice-President and Country General Manager, IDC India said. IDC had estimated the IT services market to be at $23.97 billion in 2011 and expects the IT services spending in the region to grow at 10.8 per cent per annum between 2011 and 2016. The study also said that with a $40 billion untapped market by 2016, cultural similarities and language barriers, Latin America presents a unique set of challenges to the industry. According to IDC larger deals are happening in this region and some of the larger deals were $100 million, 5-year infrastructure outsourcing contracts that Banco de Credito del Peru awarded to IBM and Caixa Economica Federal in Brasil's 4-year outsourcing deal worth EUR 25.9 million with Indra Sistemas to develop and manage its financing and loans application. Indian IT services companies which are dependent on the US and European market see emergence of Latin America as an opportunity.

Cashing in on the emerging opportunity many Indian IT and BPO companies have already established presence in the region. For instance India's second largest IT services firm Infosys have a centre in Mexico catering to the needs of the local market and the company's client. Infy employs around 1,000 people in its centres in Mexico and Brazil. India's third largest IT exporter Wipro has three delivery centres in Latin America -- Curitiba, Rio de Janeiro and New Mexico City and has about 850 people. Another mid-tier IT services company UST Global also entered the Latin American market recently and is planning to hire around 5,000 people in the region within couple of years. In technology, IT spending has outgrown the global average by 2X or more every year for the last ten years (2002-2011) in the region. The IT Market in Latin America is at $124b in 2012 and forecasted to grow to $166b by 2016, according to IDC BlackBook, Q1 2012. http://www.businessstandard.com/india/news/latin-americaoffers-great-opportunity-for-indian-it-firmsidc/197440/on

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Sectoral News
Govt likely to come up with first agri policy by December
The Punjab government is likely to roll out the states first agriculture policy by mid-December, aimed to make farming profession economically viable by suggesting measures to raise farmers dwindling income and promote crop diversification. The farm is expected to come out by midDecember. The draft of the agriculture policy is ready and it has been circulated among experts of different fields to elicit their views and opinions so as to incorporate them in the policy, an official said. The focus of the first agriculture policy for the state will be to recommend ways on how to improve farmers income, especially small and marginal ones, who have small landholdings. Another area of focus will be to push the state governments agenda of crop diversification so as to encourage farmers to bring down area under paddy and protect natural resources like water and soil fertility. It is the need of the hour to overcome the stagnation in the agriculture sector, besides improving the economic lot of rural masses by making agriculture profession remunerative and economically viable, a agriculure department official said. The state government had formed a 10member committee under the chairmanship of Punjab State Farmers Commission Chairman G S Kalkat for framing an agriculture policy. http://www.financialexpress.com/news/govtlikely-to-come-up-with-first-agri-policy-bydecember/1036839

Indian mobile apps industry to touch Rs 1,804 cr in 2012: IAMAI

The mobile apps (short for applications) industry, which grew at 22.6% in India last year, is projected to cross the Rs 1,804-crore market in 2012, according to Subho Ray, president of the Internet and Mobile Association of India (IAMAI). India is slated to become one of the biggest players in the global app market by 2016, overtaking leading smartphone app markets

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such as the US, and five Western European Union countries, according to a report by independent mobile industry market research and consultancy provider, Research2Guidance. This is no surprise and rather amplifies the fact that the prerequisites of the Indian market to become one of the leading app markets are improving rapidly, he told. According to him, among other factors such as the overall gross domestic product (GDP) growth and increase in average income, what will really propel the app market in India is that the country, which is currently ranked seventh in the world in terms of smartphone shipments, with a global market share of 2.9%, will by 2016, be the third-largest market for smartphone shipments (surpassing Brazil and the UK in the ranking) with an accompanying market share of 9.3%. India is also the third-fastest growing mobile app market in the world, with the US and Europe leading. Since India has more mobile phone users than PC and laptop users, the future of apps is very bright. Also, what will further boost the apps market is the active app developer community in India. It is a given fact that India has one of the largest app developer communities that concentrate on offshore development today, Ray said.

At present, there are 9,000 app development companies in India. According to a Nasscom report, most of these were launched during the last three years. With the growth of the domestic app market (user base and download numbers), more and more individuals will concentrate on developing apps for the Indian market, creating more apps and download opportunities. These drivers will help to make India one of the leading app markets worldwide in only three years, providing enormous business opportunities for domestic players, he added. http://www.businessstandard.com/india/news/indian-mobile-appsindustry-to-touch-rs-1804-cr-in-2012iamai/198130/on

Two shopper segments to add $3 bn in FMCG sales: Nielsen India

Low-income value explorers and first-time modern trade shoppers will add USD 3 billion to fast-moving consumer goods (FMCG) sales in India by 2015, an analysis by Nielsen said. Two growing shopper segments, low-income value explorers (LIVE) and first-time modern trade shoppers (FTMTS), will add USD 3 billion

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in FMCG sales in India by 2015, Nielsen said in a statement. "The Indian economic landscape is flourishing and so are the shopping habits of low-income value explorers. This is a growing shopper base upgrading to become first-time modern trade shoppers," Nielsen India Executive Director Adrian Terron said. Nielsen's research shows that an estimated one crore LIVE households live in urban India, earning an income of less than Rs 72,000 annually. Spending one-fifth of their household expenditures on FMCG (USD 2.4 billion), Nielsen expects this shopper segment to increase FMCG sales by 50 per cent in the next three years to USD 3.6 billion. "Confident and buoyed by a sudden rise in incomes, half of LIVE households have already migrated to branded products," said Terron. Five per cent of LIVE household budgets is currently spent at modern trade, and is expected to grow to reach USD 175 million by 2015, Nielsen said. FTMTS spends USD 280 million at modern trade

on FMCG products, and is expected to triple to USD 1 billion in three years, Nielsen added. FTMTS spends 35 per cent on FMCG at modern trade and is growing by 15 per cent each year, it added. http://www.financialexpress.com/news/twoshopper-segments-to-add-3-bn-in-fmcg-salesnielsen-india/1037553

India's 2013 wheat exports seen at 3 mn T - state firm official

Exports of wheat by India, the world's secondlargest producer, could reach 3 million tonnes from government stocks in 2013, an official of a state-run trading firm said, adding that the country had sold 1 million tonnes since April. Traders expect wheat shipments from India to rise on a potent combination of dry weather in the United States and drought in the Black Sea region. Initially the government has set a limit of 2 million tonnes for wheat exports, but I think the exports will continue to go much higher, an official of a state-run trading company told reporters at an industry conference in Singapore.

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We should easily be able to contract up to 3 million tonnes in 2013, as there is strong demand and supplies from the Black Sea region have slowed, said the official, who declined to be named because he is not authorised to speak to the media. India looks likely to harvest a bumper crop of wheat in 2013, its sixth in a row to exceed demand, after late monsoon rains replenished soil moisture, strengthening prospects for exports for a second year. http://www.financialexpress.com/news/indias-2013-wheat-exports-seen-at-3-mn-t-statefirm-official/1037431

strong performance owing to the new product launches," Barclays Equity Research analyst Rohit Goel said in a report. Owing to strong high-teen growth levels in the domestic market, the share has gone up to 32% at Rs 15,394.9 crore in Q2 FY 12. Domestic formulation growth at 18% year-onyear is slightly ahead of our expectations of mid-teen growth levels from India. This compares favorably with the 15% growth last year. Acute therapeutic segments grew by 11.7.2%, while chronic segment grew by 20.3%, the report said. The outperformers in the Indian market were Glenmark (35%), Cadila (28%) and Lupin (18%). Operating margins continued to improve both sequentially (60bps) and on a y/y basis (280 bps), reaffirming Indian pharma's steady operating fundamentals. Glenmark, DRL and Cipla surprised on the upside while Cadila and Ranbaxy reported below expectations. The gain in the US market share and forex aid 55% growth. The US formulations growth at 55% as against 33% in 2Q FY12 were driven by multiple major launches and were further

Indian pharma cos market revenue share up at 32% in Q2 FY13

The Indian pharma market continued its strong performance owing to a jump in revenue from the domestic market and new product launches. Forex gains also contributed significantly to the bottom-line of many pharma companies for the quarter Q2 FY13. "The domestic market contribution increased from 30% to 32% of revenues in Q2 of FY13. The domestic Indian Pharma market continued its

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accentuated by a 20% depreciation yoy, Goel said.

http://www.businessstandard.com/india/news/indian-pharma-cosmarket-revenue-shareat-32-in-q2fy13/198029/on

RoundNews Round-Up
Morgan Stanley raises India's FY13 GDP forecast to 5.4 per cent
Morgan Stanley has raised India's FY13 GDP growth forecast to 5.4 per cent from 5.1 per cent, citing better-than-expected GDP growth for the September quarter and also the stabilization in non-agriculture growth indicators. Country's economy grew 5.3 per cent from a year earlier in the July-September period, provisional GDP data showed. The economy extended its long slump keeping it on track for its worst year in a decade and underscoring the urgency of politically difficult reforms to spur a revival. According to the released data, the GDP at factor cost at current prices in Q2 of 2012-13 is estimated at Rs 21,83,794 crore, as against Rs 19,23,173 crore in Q2, 2011-12, showing an increase of 13.6 per cent. The manufacturing sector grew an annual 0.8% during the quarter while the agricultural sector growth rose 1.2 per cent. The mining sector exhibited a growth of 1.9% versus a meagre 0.1% quarter-on-quarter. The construction sector also grew at 6.7% versus 6.3& year-onyear. Mining and quarrying sector, however, showed some improvement and recorded a growth of 1.9 per cent during the quarter, as against a contraction of 5.4 per cent in the second quarter of 2011-12. The economic growth in the first six month of this fiscal (April-September) is 5.4 per cent, lower than 7.3 per cent growth clocked in the year-ago period. The investment bank also said it thinks nonagriculture GDP growth has bottomed. According to Goldman Sachs' report las week, India's economy could gather pace in the new year, putting behind a dismal year.

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Goldman Sachs said Indian economy is expected to expand 6.5% in 2013 thanks to an improvement in external demand and pick-up in reforms, and further accelerate to 7.2% in 2014. http://articles.economictimes.indiatimes.com/ 2012-12-03/news/35568506_1_gdp-growthagricultural-sector-growth-cent-growth

analysis report on India. The report is an update to the markets and does not constitute a rating action. The ratings agency expects Indias GDP growth rate to go up from around 5.4 per cent in 201213 to six per cent or higher in 2013-14, with the higher growth accompanied by improved fiscal and balance of payments metrics. Moodys forecast is underpinned by the assumption that, over the next year, there will be a cautious reduction in monetary policy rates and further measures to revive investor sentiment. http://www.thehindubusinessline.com/industr y-and-economy/economy/indias-ratingoutlook-stable-moodys/article4139755.ece

Indias rating outlook stable: Moodys

Indias sovereign rating outlook is stable, ratings agency Moodys Investors Services said Moodys stable outlook is based on expectations that Indias structural strengths a high household savings rate and relatively competitive private sector will ultimately raise the GDP growth, it said in its annual credit

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DISCLAIMER

This newsletter is a compilation of news articles from various business e-newspapers and in no way is an endorsement or reflection of Ministry of External Affairs views.

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