Inflation dips to 6.5 per cent
New Delhi: Inflation fell by 0.23 per cent to a 23-week low of 6.5 per cent for the fourth consecutive week ended December 18, mainly due to cheaper food items, edibles oils and manufactured products.

The point-to-point Wholesale Price Index (WPI) inflation fell from 6.73 per cent in the previous week, even as fuel prices remained unchanged. It was 5.92 per cent in the year-ago period.

During the week under review, international oil prices have remained over $44 a barrel.
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External debt rises marginally
New Delhi: India's total external debt rose marginally by $0.4 billion to $113.6 billion as on September end 2004, against $113.2 billion at the end of the previous quarter (April-June) 2004-05.

Short-term debt, however, increased by 3.9 per cent over the previous quarter to $6.485 billion by September end due to the rise in trade credits attributed to large import growth in the current fiscal.

The other component of short term debt, namely NRI deposit, had been nil since the quarter ended June, 2004 as deposits with maturity upto one year and a non-resident rupee account were withdrawn from April 2003, the quarterly external debt statistics, released by the Finance Ministry, said today.

The long-term debt outstanding amounted to 107.1 billion dollars by September end, showing no significant change over the previous quarter.
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Fiscal deficit comes down 24 per cent till November
New Delhi: Centre's fiscal deficit has come down by over 24 per cent to Rs70,717 crore in the first eight months of this fiscal, mainly due to expenditure control measures.

However, revenue deficit mounted to Rs73,948 crore in April-November, which was 97.1 per cent of the budgeted Rs76,171 crore for 2004-05, according to figures released by the Controller General of Accounts. The fiscal deficit of Rs 70,717 crore till November, which works out to 2.27 per cent of the GDP, comes amidst lower-than-expected total receipts, including tax mop up.

The fiscal deficit, which is the difference between the total expenditure and total receipts, till November amounts to 51.5 per cent of the budgeted Rs 1,37,407 crore or 4.4 per cent of the GDP this fiscal.
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Forex reserves up by $6.6 billion in H1
Mumbai: India's foreign exchange reserves showed a lower growth of $6.6 billion in the first half ended September 2004, compared to $16.2 billion in April-September 2003. The current account balance also showed net outgo (deficit) at $3.3 bn (net surplus of $2.2 bn in H1 of 2003-04).

The valuation loss in reserves stood at $0.2 bn as against a benefit of $2.1 bn in the same period last fiscal, according to data released by the Reserve Bank of India.

The capital account (net) comprising foreign investment, banking capital, short-term credit, external commercial borrowings and other items recorded a rise of $10.1 bn ($11.9 bn in H1 FY-04), it said.

The major sources of accretion to the forex reserves during April-September 2004 were foreign investment (39.4 per cent), external commercial borrowings (31.8 per cent) and short-term credit (30.3 per cent), it added. Foreign investment inflows showed a lower growth of $2.6 bn ($5.1 bn). The net inflows under banking capital were down by $0.3 bn ($ 2.2 bn) while non-resident Indian deposits saw outflow of $1.3 bn (inflow of $2.2 bn).

Short-term credit remained at $2 bn and other items in capital account at $2.7 bn ($2.6 bn) were also sources of accretion. External commerical borrowings grew by $2.1 bn ($0.2 bn), the RBI added. India's foreign exchange reserves as on December 17 stood at $130.62 bn.
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FDI inflows in Jan-Sep grow 54 per cent
New Delhi: Foreign Direct Investment (FDI) flows in the country increased by over 54 per cent year-on-year in January-September, 2004, to touch $3 billion. As per the revised definition of FDI, which includes reinvested earnings, FDI inflows during the period touched a record $5.4 billion. This is up 26.40 per cent from $4.3 billion in January-September, 2003.

FDI approvals in January-September, 04, have also gone up by over 95 per cent compared to the previous year, according to an official statement.

Overall industrial growth rate, measured in terms of Index of Industrial Production (Base: 1993-94=100) was 10.1 per cent in October, 2004, as compared to 6.2 per cent in October, 2003. The double digit growth in overall industrial production was aided by a robust growth of 11.3 per cent in the manufacturing sector followed by mining and quarrying and power generation, which posted increase of 4.7 per cent and 3.8 per cent respectively in October, 2004.

The last time overall industrial growth and growth in the manufacturing sector was in double digits in a particular month was in November, 1997, when overall industrial growth and manufacturing sector growth were 10.6 per cent and 11.7 per cent respectively.
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Balance of Payments deficit at $3.25 billion for H1
Mumbai: India's balance of payments (BoP) saw a deficit of $3.25 billion on current account for the first half ending September, 2004, as against a surplus of $2.19 billion in the same period last year.

The trade deficit during April-September, 2004, shot up to $17.44 billion, up from $9.35 billion in H1 of 2003-04. The net invisibles showed a gain of 22.77 per cent at $14.18 billion ($ 11.55 billion), according to data released by Reserve Bank of India.

Oil exports during H1 grew by 23.21 per cent to $34.45 billion (in H1 of FY-04 $27.96 billion) while imports were higher by 39.07 per cent at $51.89 billion ($37.31 billion).
The import of crude oil and petroleum products were key drivers for import payments, contributing 58.1 per cent in July-September, 2004 (Q2) and 57.6 per cent in April-June, 2004.

The merchandise imports payments surged by 24.6 per cent (in Q1) and 53.5 per cent (Q2) of the current fiscal. The non-oil imports increased from 22.2 per cent in Q1 to 29.5 per cent in Q2 on the back of firming up of industrial activity, RBI said.

The tourist interest in India remained strong with international traffic rising by 26 per cent in H1 of 2004-05 while software exports remained buoyant in Q2, broadly maintaining the level achieved in Q1, it added.
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