socio economy at a glance

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6/15/13 SOCIO ECONOMY AT A GLANCE

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SOCIO ECONOMY AT A GLANCE

The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, has released

the provisional estimates of national income for the financial year 2012-13 and the quarterly estimates of

Gross Domestic Product (GDP) for the fourth quarter (January-March) of 2012-13, both at constant (2004-05and current prices.

2. The CSO has also released the corresponding annual and quarterly estimates of Expenditure components

of the GDP in current and constant (2004-05) prices, namely the private final consumption expenditure,

government final consumption expenditure, gross fixed capital formation, change in stocks, valuables, and ne

exports.

I PROVISIONAL ESTIMATES OF NATIONAL INCOME, 2012-13

3. The advance estimates of national income for the year 2012-13 were released on 7th

February, 2013.These estimates have now been revised incorporating latest estimates of agricultural production, index of

industrial production and performance of key sectors like, railways, transport other than railways,

communication, banking and insurance and government expenditure.

4. The salient features of these estimates are detailed below:

(a) Estimates at constant (2004-05) prices

Gross Domestic Product

5. GDP at factor cost at constant (2004-05) prices in the year 2012-13 is now estimated at Rs.

55,05, 437 crore (as against Rs. 55,03,476 crore estimated earlier on 7th February, 2013), showing a growthrate of 5.0 percent over the First Revised Estimates of GDP for the year 2011-12 of Rs. 52, 43,582 crore,

released on 31th January 2013.

6. In the agriculture sector, the third advance estimates of crop production released by the Ministry

of Agriculture showed a slight upward revision as compared to their second advance estimates in the

production of rice (104.22 million Tonnes from 101.80 million Tonnes), wheat (93.62 million Tonnes from 92.3

million Tonnes) and sugarcane (336.15 million Tonnes from 334.5 million Tonnes) for the year 2012-13. Due

this revision in the production, agriculture, forestry and fishing sector in 2012-13 has shown a growth rate of

1.9 percent, as against the growth rate of 1.8 percent in the Advance Estimates.

7. In the case of mining and quarrying, the Index of Industrial Production of Mining (IIP-Mining) registerea decline of 2.5 percent during 2012-13, as against the decline of 1.5 percent during April-November, 2012,

which was used in the Advance Estimates. Production of coal and crude oil registered growth rates of 3.3

percent and (-) 0.6 percent in 2012-13 whereas during April to December, 2012, the growth rates were 5.7

percent and (-) 0.4 percent.The growth of mining &quarrying is now estimated at (-) 0.6 percent, as against

the Advance Estimate growth of 0.4 percent.

8. Similarly, the IIP of manufacturing registered a growth rate of 1.2 percent during 2012-13, as against

the projected growth rate of 1.9 percent for April-March, 2012-13 for the Advance Estimates. Due to this, the

growth of manufacturing sector is now estimated at 1.0 percent, as against the Advance Estimate growth of
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1.9 percent.

9. The key indicators of construction sector, namely, cement and consumption of finished steel

registered growth of 5.6 percent and 3.3 percent, respectively in 2012-13 as against 6.1 percent and 3.9

percent, respectively during April-December 2012. Consequently, the growth of the sector is revised

downward to 4.3 percent as against 5.9 percent in the Advance Estimates.

10. The key indicators of banking, namely, aggregate bank deposits and bank credits have shown higher

growth of 14.3 percent and 14.2 percent, respectively during 2012-13 over the corresponding period in 2011

12, as compared to growth of 11.1 percent and 15.2 percent as on December 2012. Indicators of Railways

sector, namely, Net Tonne Kilometers and passenger Kilometers have have shown growth of 0.3 and 2.4

percentrespectively during 2012-13 .The Trade, hotels and transport sector have registered a growth of 6.4

percent in 2012-13 as against 5.2 percent in the advance estimate released in February,2013 as the private

corporate sector registered significant growth in the Trade, hotels and restaurent sector in 2012-13.

11. The sector `community, social and personal services` has shown a growth of 6.6 percent in the revise

estimates, as against the growth rate of 6.8 percent in the advance estimates.

Gross National Income

12. The Gross National Income (GNI) at factor cost at 2004-05 prices is now estimated at Rs. 54,49,104

crore (as compared to Rs. 54,47,169 crore estimated on 7th February 2013), during 2012-13, as against the

previous year s First Revised Estimate of Rs. 51,96,848 crore. In terms of growth rates, the gross national

income is estimated to have risen by 4.9 percent during 2012-13, in comparison to the growth rate of 6.4

percent in 2011-12.

Per Capita Net National Income

13. The per capita net national income in real terms (at 2004-05 prices) during 2012-13 is estimated to

have attained a level of Rs. 39,168 (as against Rs. 39,143 estimated on 7 th February, 2013), as compared t

the First Revised Estimates for the year 2011-12 of Rs. 38,037. The growth rate in per capita income is

estimated at 3.0 percent during 2012-13 as against 4.7 percent during 2011-12.

(b) Estimates at current prices

Gross Domestic Product

14. GDP at factor cost at current prices in the year 2012-13 is estimated at Rs. 94,61,013 crore, showing

a growth rate of 13.3 percent over the First Revised Estimates of GDP for the year 2011-12 of Rs. 83,53 ,49

crore, released on 31th January 2013.

Gross National Income

15. The GNI at factor cost at current prices is now estimated at Rs 93,61,113 crore during 2012-13, as

compared to Rs. 82,76 ,665 crore during 2011-12, showing a rise of 13.1 percent.

Per Capita Net National Income


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16. The per capita income at current prices during 2012-13 is estimated to have attained a level of Rs.

68,757 as compared to the First Revised Estimates for the year 2011-12 of Rs. 61,564 showing a rise of 11.7

percent.

II ANNUAL ESTIMATES OF EXPENDITURES ON GDP, 2012-13

17. Along with the Provisional Estimates of GDP by economic activity, the CSO is also releasing the

estimates of expenditures of the GDP at current and constant (2004-05) prices. These estimates have been

compiled using the data on indicators available from the same sources as those used for compiling GDP

estimates by economic activity, detailed data available on merchandise trade in respect of imports and

exports, balance of payments, and monthly accounts of central government. As various components of

expenditure on gross domestic product, namely, consumption expenditure and capital formation, are normall

measured at market prices, the discussion in the following paragraphs is in terms of market prices only.

Private Final Consumption Expenditure

18. Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs. 56,94,362crore i

2012-13 as against Rs. 50,56,219 crore in 2011-12. At constant (2004-05) prices, the PFCE is estimated at

Rs. 34,66,723crore in 2012-13 as against Rs. 33,34,900 crore in 2011-12. In terms of GDP at market prices,

the rates of PFCE at current and constant (2004-05) prices during 2012-13 are estimated at 56.8 percent an

59.6 percent, respectively, as against the corresponding rates of 56.3 percent and 59.2 percent, respectivel

in 2011-12.

Government Final Consumption Expenditure

19. Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs.

11,86,761crore in 2012-13 as against Rs. 10,42,677crore in 2011-12. At constant (2004-05) prices, the GFC

is estimated at Rs. 6,59,236 crore in 2012-13 as against Rs. 6,34,559 crore in 2011-12. In terms of GDP at

market prices, the rates of GFCE at current and constant (2004-05) prices during 2012-13 are estimated at

11.8 percent and 11.3 percent, respectively, as against the corresponding rates of 11.6 percent and 11.3

percent, respectively in 2011-12.

Gross Fixed Capital Formation

20. Gross Fixed Capital Formation (GFCF) at current prices is estimated at Rs. 29,64,677crore in 2012-1

as against Rs. 27,49,072 crore in 2011-12. At constant (2004-05) prices, the GFCF is estimated at Rs.

19,29,988crore in 2012-13 as against Rs. 18,97,309 crore in 2011-12. In terms of GDP at market prices, the

rates of GFCF at current and constant (2004-05) prices during 2012-13 are estimated at 29.6 percent and

33.2 percent, respectively, as against the corresponding rates of 30.6 percent and 33.7 percent, respectivelin 2011-12. The rates of Change in Stocks and Valuables at current prices during 2012-13 are estimated at

3.5 percent and 2.5 percent, respectively.

21. The discrepancies at current and constant (2004-05) prices during 2012-13 are estimated at 3.4

percent and 0.0 percent, respectively of the GDP at market prices, as against the corresponding rate of 3.0

percent and 0.0 percent respectively in 2011-12.

22. Estimates of gross/net national income and per capita income, along with GDP at factor cost by kind o

economic activity and the Expenditures on GDP for the years 2010-11, 2011-12 and 2012-13 at constant


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(2004-05) and current prices are given in Statements 1 to 6.

III QUARTERLY ESTIMATES OF GDP FOR Q4 (JANUARY-MARCH), 2012-13

(a) Estimates at constant (2004-05) prices

23. The four quarters of a financial year are denoted by Q1, Q2, Q3 and Q4. GDP at factor cost at

constant (2004-05) prices in Q4 of 2012-13 is estimated at Rs. 14,70,782crore, as against Rs. 14,03,727

crore in Q4 of 2011-12, showing a growth rate of 4.8 percent.

24. Growth rates in various sectors are as follows: agriculture, forestry and fishing (1.4 percent), mining

and quarrying (-3.1 percent), manufacturing (2.6 percent), electricity, gas and water supply (2.8 percent)

construction (4.4 percent), `trade, hotels, transport and communication` (6.2 percent), `financing, insurance

real estate and business services` (9.1 percent), and `community, social and personal services` (4.0 percent

25. According to the latest estimates available on the IIP, the index of mining, manufacturing and electrici

registered growth rates of (-) 4.2 percent, 2.6 percent and 2.3 percent respectively, in Q4 of 2012-13, as

compared to the growth rates of (-) 0.4 percent, 0.3 percent and 4.5 percent respectively in these sectors in

Q4, 2011-12.

26. The key indicators of railways, namely, the net tonne kilometers and passenger kilometers have show

decline in growth rates of 1.2 percent and 2.8 percent, respectively in Q4 of 2012-13, as against the growth

rates of 7.0 percent and 7.9 percent, in the corresponding period of previous year. In the transport and

communication sectors, the sale of commercial vehicles, cargo handled at major ports, cargo handled by the

civil aviation and passengers handled by the civil aviation registered growth rates of (-) 2 percent, (-) 3.1

percent, (-) 4.27 percent and (-) 1.82 percent, respectively in 2012-13. The Trade, hotels and transport

sector have registered a growth of6.2 percent in 2012-13 as against 5.1 percent in Q4 of 2011-12 as the

private corporate sector registered significant growth in the Trade, hotels and restaurent sector in 2012-13.

27. The PFCE and GFCF at constant (2004-05) market prices in Q4 of 2012-13 are estimated at Rs.

8,66,854 crore and Rs. 5,17,039 crore, respectively. The rates of PFCE and GFCF as percentage of GDP a

market prices in Q4 of 2012-13 were 54.7 percent and 32.6 percent, respectively, as against the

corresponding rates of 54.3 percent and 32.5 percent, respectively in Q4 of 2011-12.

(b) Estimates at current prices

28. GDP at factor cost at current prices in Q4 of 2012-13 is estimated at Rs. 25,48,220 crore, as against

Rs. 22,64,227 crore in Q4 of 2011-12, showing a growth of 12.5 percent.

29. The PFCE and GFCF at current market prices in Q4 of 2012-13 are estimated at Rs. 14,93,793 croreand Rs.8,13,868 crore, respectively. The rates of PFCE and GFCF at current prices as percentage of GDP a

market prices in Q4 of 2012-13 are estimated at 54.3 percent and 29.6 percent, respectively, as against the

corresponding rates of 53.5 percent and 29.7 percent, respectively in Q4 of 2011-12.

30. Estimates of GDP at factor cost by kind of economic activity and the Expenditures on GDP for the four

quarters of 2010-11, 2011-12 and 2012-13 at constant (2004-05) and current prices, are given in Statement

7 to 10.

Click here to see Statements.
http://pib.nic.in/archieve/others/2013/may/d2013053101.pdf


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The Human Development Index (HDI) was introduced in the first Human Development Report in 1990 as a

composite measurement of development that challenged purely economic assessments of national progress

This year the HDI report 2013, entitled The Rise of the South: Human Progress in a Diverse World,

emphasizes on the unprecedented growth of developing countries, which is propelling millions out of poverty

and reshaping the global system. It covers 187 countries and territories. Data constraints precluded HDI

estimates for eight countries: Marshall Islands, Monaco, Nauru, the People's Democratic Republic of Korea,San Marino, Somalia, South Sudan and Tuvalu.

Norway, Australia and the United States lead the rankings of 187 countries and territories in the latest Human

Development Index (HDI), while conflict-torn Democratic Republic of the Congo and drought-stricken Niger

have the lowest scores in the HDI's measurement of national achievement in health, education and income.

Yet according to the report Niger and the Democratic Republic of the Congo, despite their continuing

development challenges, are among the countries that made the greatest strides in HDI improvement since

2000.

The new HDI figures show consistent human development improvement in most countries. Fourteen countrie

recorded impressive HDI gains of more than 2 percent annually since 2000in order of improvement, they

are: Afghanistan, Sierra Leone, Ethiopia, Rwanda, Angola, Timor-Leste, Myanmar, Tanzania, Liberia, Burund

Mali, Mozambique, Democratic Republic of the Congo, and Niger. Most are low-HDI African countries, with

many emerging from long periods of armed conflict. Yet all have made significant recent progress in school

attendance, life expectancy and per capita income growth, the data shows.

Most countries in higher HDI brackets also recorded steady HDI gains since 2000, though at lower levels of

absolute HDI improvement than the highest achievers in the low-HDI grouping.

Hong Kong, Latvia, Republic of Korea, Singapore and Lithuania showed the greatest 12-year HDI

improvement in the Very High Human Development quartile of countries in the HDI; Algeria, Kazakhstan, IranVenezuela and Cuba were the top five HDI improvers in the High Human Development countries; and Timor-

Leste, Cambodia, Ghana, Lao People's Democratic Republic and Mongolia were the HDI growth leaders in th

Medium Human Development grouping.

The overall trend globally is toward continual human development improvement. Indeed, no country for which

complete data was available has a lower HDI value now than it had in 2000.

When the HDI is adjusted for internal inequalities in health, education and income, some of the wealthiest

nations fall sharply in the rankings: the United States falls from #3 to #16 in the inequality-adjusted HDI, and

South Korea descends from #12 to #28. Sweden, by contrast, rises from #7 to #4 when domestic HDI

inequalities are taken into account.

The new HDI rankings introduce the concept of the statistical tie for the first time since the HDI was introduce

in the first Human Development Report in 1990, for countries with HDI values that are identical to at least thre

decimal points. Ireland and Sweden, each with an HDI value of 0.916, are both ranked seventh in the new HD

for example, though the two countries' HDI values diverge when calculated to four or more decimal points.

The 2013 Report's Statistical Annex also includes two experimental indices, the Multidimensional Poverty Inde

(MPI) and the Gender Inequality Index (GII).


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The GII is designed to measure gender inequalities as revealed by national data on reproductive health,

women's empowerment and labour market participation. The Netherlands, Sweden and Denmark top the GII,

with the least gender inequality. The regions with the greatest gender inequality as measured by the GII are

sub-Saharan Africa, South Asia and the Arab States.

The Multidimensional Poverty Index (MPI) examines factors at the household level that together provide a

fuller portrait of poverty than income measurements alone. The MPI is not intended to be used for national

rankings, due to significant differences among countries in available household survey data.

In the 104 countries covered by the MPI, about 1.56 billion people are estimated to live in multidimensional

poverty. The countries with the highest percentages of MPI poor' are all in Africa: Ethiopia (87%), Liberia

(84%), Mozambique (79%) and Sierra Leone (77%). Yet the largest absolute numbers of multidimensionally

poor people live in South Asia, including 612 million in India alone.

The Statistical Annex also presents data specifically pertinent to the 2013 Report, including expanding trade

ties between developing countries, immigration trends, growing global Internet connectivity and public

satisfaction with government services, as well as individual quality of life in different countries.

The Report also reviews key regional development trends, as shown by the HDI and other data:

Arab States: The region's average HDI value of 0.652 is fourth out of the six developing country regions

analysed in the Report, with Yemen achieving the fastest HDI growth since 2000 (1.66%). The region has the

lowest employment-topopulation ratio (52.6%), well below the world average of 65.8%.

East Asia and the Pacific: The region has an average HDI value of 0.683 and registered annual HDI value

growth between 2000 and 2012 of 1.31%, with Timor-Leste leading with 2.71%, followed by Myanmar at

2.23%. The East Asia-Pacific region has the highest employment-topopulation ratio (74.5%) in the

developing world.

Eastern Europe and Central Asia: The average HDI value of 0.771 is the highest of the six developing-

country regions. Multi-dimensional poverty is minimal, but it has the second lowest employment-to-population

ratio (58.4%) of the six regions.

Latin America and the Caribbean: The average HDI value of 0.741 is the second highest of the sixregions, surpassed only by Eastern Europe and Central Asia average. Multi-dimensional poverty is relatively

low, and overall life satisfaction, as measured by the Gallup World Poll, is 6.5 on a scale from 0 to 10, the

highest of any region.

South Asia: The average HDI value for the region of 0.558 is the second lowest in the world. Between 2000

and 2012, the region registered annual growth of 1.43% in HDI value, which is the highest of the regions.

Afghanistan achieved the fastest growth (3.9%), followed by Pakistan (1.7%) and India (1.5%).

Sub-Saharan Africa: The average HDI value of 0.475 is the lowest of any region, but the pace of

improvement is rising. Between 2000 and 2012, the region registered average annual growth of 1.34 percen

in HDI value, placing it second only to South Asia, with Sierra Leone (3.4%) and Ethiopia (3.1%) achieving the

fastest HDI growth.

Union Budget 2013 Highlights

India must make tough spending choices, finance minister P Chidambaram said on 28 February, 2013, even

as he unveiled a bigger-than-expected outlay for the coming fiscal year in one of the most highly anticipated

Indian budgets of recent years.

Following are highlights of the Budget:

FISCAL DEFICIT

Fiscal deficit seen at 5.2 point of GDP in 2012/13


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Fiscal deficit seen at 4.8 point of GDP in 2013/14

Faced with huge fiscal deficit, India had no choice but to rationalize expenditure

BORROWING

Gross market borrowing seen at 6.29 trillion rupees in 2013/14

Net market borrowing seen at 4.84 trillion rupees in 2013/14

Short-term borrowing seen at 198.44 billion rupees in 2013/14

To buy back 500 billion rupees worth of bonds in 2013/14

SUBSIDIES

2013/14 major subsidies bill estimated at 2.48 trillion rupees from 1.82 trillion rupees

Petroleum subsidy seen at 650 billion rupees in 2013/14

Revised petroleum subsidy for 2012/13 at 968.8 billion rupees

Estimated 900 billion rupees spending on food subsidies in 2013/14

Revised food subsidies at 850 billion rupees in 2012/13

Revised 2012/13 fertiliser subsidy at 659.7 billion rupees

GROWTH

India faces challenge of getting back to its potential growth rate of 8 point

India must unhesitatingly embrace growth as highest goal

SPENDING

Total budget expenditure seen at 16.65 trillion rupees in 2013/14

Non-plan expenditure estimated at about 11.1 trillion rupees in 2013/14

India's 2013/14 plan expenditure seen at 5.55 tr illion rupees

Revised estimate for total expenditure is 14.3 trillion rupees in 2012/13, which is 96 point of budget estimat

Set aside 100 billion rupees towards spending on food subsidies in 2013/14

REVENUE

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

CURRENT ACCOUNT DEFICIT

India's greater worry is the current account deficit - will need more than $75 billion this year and next year t

fund deficit

INFLATION

Food inflation is worrying, will take all steps to augment supply side

TAX

Proposes surcharge of 10 point on rich taxpayers with annual income of more than 10 million rupees a yea

To increase surcharge to 10 point on domestic companies with annual income of more than 100 million

rupees

For foreign companies, who pay the higher rate of corporate tax, the surcharge will increase from 2 pct to 5

per cent.

To continue 15 point tax concession on dividend received by India companies from foreign units for one

more year


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Propose to impose withholding tax of 20 point on profit distribution to shareholders

Amnesty on service tax non-compliance from 2007

10 billion rupees for first installment of balance of GST (Goods and Services Tax) payment

Propose to reduce securities transaction tax on equity futures to 0.01 point from 0.017 point

Time to introduce commodities transaction tax (CTT)

CTT on non-agriculture futures contracts at 0.01 point

CORPORATE SECTOR AND MARKETS

To issue inflation-indexed bonds Proposes capital allowance of 15 point to companies on investments of more than 1 billion rupees

Foreign institutional investors (FIIs) can use investments in corporate, government bonds as collateral to

meet margin requirements

Insurance, provident funds can trade directly in debt segments of stock exchanges

FIIs can hedge forex exposure through exchange-traded derivatives

Investor with less than 10 point stake in a company will be regarded as FII, more than 10 point stake as FD

(foreign direct investment)

Stock exchange regulator will simplify know-your-customer norms for foreign portfolio investors

To implement quickly recommendations of financial sector legislative reforms commission

To cut factory gate duty on trucks to 13 pct from 14 pct

POWER AND ENERGY SECTOR

Zero customs duty for electrical plants and machinery

Move to revenue-sharing from profit-sharing policy in oil and gas sector

To equalise duties on steam and bituminous coal to 2 point customs duty and 2 point cvd (countervailing

duty)

FOREIGN TRADE

To cut duty on exports of precious and semi-precious stones to 2 point from 10 point

No duty on import of ships, vessels

BANKING

To provide 140 billion rupees capital infusion in state-run banks in 2013/14

DEFENCE

To allocate 2.03 trillion rupees to defence in 2013/14

AGRICULTURE

To allocate 801.94 billion rupees to rural development in 2013/14

Plan to allocate 270.49 billion rupees for agriculture in 2013/14

Railway Minister Pawan Kumar Bansal has announced the Union Railway Budget for 2013-14 in

Parliament. Here are the highlights

No increase in passenger fares

Railways will absorb Rs. 850 crore on account of no hike in passenger fare

Marginal increase in reservation charges, cancellation charges

Supplementary charges for superfast trains and tatkal booking

26 new passenger trains to be launched

67 express trains to be launched


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9 Electric Multiple Unit (EMU) trains to be introduced

500-km new lines to be completed in 2013-14

Concessional fare for sportspersons

5 per cent average increase in freight

Diesel price hike added Rs. 3,300 crore to fuel bill of Railways

Railways hopes to end 2013-14 with a balance of Rs. 12,506 crore

5.2 per cent growth in passenger traffic expected in 2013-14

Railways' freight loading traffic scaled down by 100 million tonnes from 1025 million tonnes because of

economic slowdown

Railways to set up a Debt Service Fund

Rs. 3,000 crore loan from Finance Ministry re-paid with interest by Railways this financial year

New coach manufacturing and maintenance facilities to be set up in various places including Rae Bareli,

Bhilwara, Sonepat, Kalahandi, Kolar, Palakkad and Pratapgarh

Five fellowships to be announced to motivate students

Centralised training institute to be set up in Secunderabad

Will provide better living conditions for Railway Protection Force (RPF) personnel

Seek to fill 1.52 lakh vacancies in railways this year. 47,000 vacancies for weaker sections and physically

challenged to be filled up soon

Target of Rs. 4,000 crore for railway production units in 2014

Trying to connect Manipur through railways

Investment of Rs. 3800 crore for port connectivity projects

Target of Rs. 1000 crore each for Indian Railways Land Development Authority and Indian Railways Statio

Development authority

Toll free 1800111321 number to address grievance. Introduced from February 2013

Labs to test food provided in trains. ISO certification for all rail kitchens

Advance fraud control will be used for ticket sale

Induction of e-ticketing through mobile phones, SMS alerts to passengers

Next-generation e-ticketing system to improve end user experience. The system will support 7200 users pe

minute

Wheelchairs and escalators to be made to make stations and trains friendlier for the differently-abled.

Rs. 100 crore to be spent to augment facilities at Delhi, New Delhi and Nizamuddin railway stations

Special attention to stations in NCR.

Free wi-fi facilities in select trains. 60 more 'adarsh' stations

Safety measures including new coaches with anti-climb features to be brought in

More ladies specials in metros and a helpline number to be implemented

Railways meets need of consumers while adhering to sound economic principles. Need to expand at a muc

faster growth rate

I am committed to improving passenger amenities Resource crunch cannot be a reason for substandard services

Elimination of over 10,000 level crossings

17 bridges sanctioned for rehabilitation

Enhancement of the track capacity and the Train Protection Warning System (TPWS)

Indigenously developed collision avoidance system to be put to trial

Induction of self-propelled accident relief trains along with fast and reliable disaster management system

Railway passengers deserve safe and comfortable travel. Safety is a mandate in running trains. There has

been a significant reduction in accidents - .41 per million kms in 2003-04 to .13 in 2011- 12. We will strive to

work towards a zero accident situation.


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Our targets need to be higher

Mounting scarcity of resources, thin spread of funds continue to be a problem

The number of passenger trains has increased from 8000 in 2001 to over 12000 in 2012 - yet losses

continue to mount. It is estimated to be Rs. 24,000 cr in 2012-13

Indian railways must remain financially viable

Indian Railways plays an unparalleled growth in integrating the nation

Union Rail Minister Pawan Kumar Bansal on 26 Feb., 2013 announced 106 new trains in Railway Budget

2013-14. Of the new trains 67 are Express, 26 passenger trains, 5 MEMUs and 8 DEMUs.

Express Trains

1. Ahmedabad Jodhpur Express (Weekly) Via Samdari, Bhildi

2. Ajni (Nagpur) Lokmanya Tilak (T) Express (Weekly) Via Hingoli

3. Amritsar Lalkuan Express (Weekly) Via Chandigarh

4. Bandra Terminus Ramnagar Express (Weekly) Via Nagda, Mathura, Kanpur, Lucknow, Rampur

5. Bandra Terminus Jaisalmer Express (Weekly) Via Marwar, Jodhpur

6. Bandra Terminus Hisar Express (Weekly) Via Ahmedabad, Palanpur, Marwar, Jodhpur, Degana

7. Bandra Terminus Haridwar Express (Weekly) Via Valsad

8. Bangalore Mangalore Express (Weekly)

9. Bathinda Jammu Tawi Express (Weekly) Via Patiala, Rajpura

10. Bhubaneswar Hazrat Nizamuddin Express (Weekly) Via Sambalpur

11. Bikaner Chennai AC Express (Weekly) Via Jaipur, Sawai Madhopur, Nagda, Bhopal, Nagpur

12. Chandigarh Amritsar Intercity Express (Daily) Via Sahibzada Ajitsingh Nagar (Mohali), Ludhiana

13. Chennai Karaikudi Express (Weekly)

14. Chennai Palani Express (Daily) Via Jolarpettai, Salem, Karur, Namakkal

15. Chennai Egmore Thanjavur Express (Daily) Via Villupuram, Mayiladuthurai

16. Chennai Nagarsol (For Sai Nagar Shirdi) Express (Weekly) Via Renigunta, Dhone, Kacheguda

17. Chennai Velankanni Link Express (Daily) Via Villupuram, Mayiladuthurai, Tiruvarur

18. Coimbatore Mannargudi Express (Daily) Via Tiruchchirappalli, Thanjavur, Nidamangalam

19. Coimbatore Rameswaram Express (Weekly)

20. Delhi Firozpur Intercity Express (Daily) Via Bathinda

21. Delhi Sarai Rohilla Sikar Express (Bi-weekly) after gauge conversion

22. Delhi Hoshiarpur Express (Weekly)

23. Durg Jaipur Express (Weekly)

24. Gandhidham Visakhapatnam Express (Weekly) Via Ahmedabad, Wardha, Ballarshah, Vijaywada

25. Hazrat Nizamuddin Mumbai AC Express (Weekly) via Bhopal, Khandwa, Bhusawal

26. Howrah Chennai AC Express (Bi-weekly) Via Bhadrak, Duvvada, Gudur

27. Howrah New Jalpaiguri AC Express (Weekly) Via Malda Town

28. Hubli Mumbai Express (Weekly) Via Miraj, Pune

29. Indore Chandigarh Express (Weekly) Via Dewas, Ujjain, Guna, Gwalior, Hazrat Nizamuddin30. Jabalpur Yesvantpur Express (Weekly) Via Nagpur, Dharmavaram

31. Jaipur Lucknow Express (Tri-weekly) Via Bandikui, Mathura, Kanpur

32. Jaipur-Alwar Express (Daily)

33. Jodhpur Jaipur Express (Daily) Via Phulera

34. Jodhpur Kamakhya (Guwahati) Express (Weekly) Via Degana, Ratangarh

35. Kakinada Mumbai Express (Bi-weekly)

36. Kalka Sai Nagar Shirdi Express (Bi-weekly) Via Hazrat Nizamuddin , Bhopal, Itarsi

37. Kamakhya (Guwahati) Anand VIhar Express (Weekly) Via Katihar, Sitapur Cantt, Moradabad

38. Kamakhya (Guwahati) Bangalore AC Express (Weekly)


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39. Kanpur Anand Vihar Express (Weekly) Via Farrukhabad

40. Katihar Howrah Express (Weekly) Via Malda Town

41. Katra Kalka Express (Bi-weekly) Via Morinda

42. Kolkata Agra Express (Weekly) Via Amethi, Rae Bareli, Mathura

43. Kolkata Sitamarhi Express (Weekly) Via Jhajha, Barauni, Darbhanga

44. Kota Jammu Tawi Express (Weekly) Via Mathura, Palwal

45. Kurnool Town Secunderabad Express (Daily)

46. Lokmanya Tilak (T) Kochuveli Express (Weekly)

47. Lucknow Varanasi Express Via Rae-Bareli (6 Days a week)

48. Madgaon Mangalore Intercity Express (Daily) Via Udupi, Karwar

49. Mangalore Kacheguda Express (Weekly) Via Dhone, Gooty, Renigunta, Coimbatore

50. Mau Anand Vihar Express (Bi-weekly)

51. Mumbai Solapur Express (6 Days a week) Via Pune

52. Nagercoil Bangalore Express (Daily) Via Madurai, Tiruchchirappalli

53. New Delhi Katra AC Express (6 Days a week)

54. Nizamabad Lokmanya Tilak (T) Express (Weekly)

55. Patna Sasaram Intercity Express (Daily) Via Ara

56. Patliputra (Patna) Bangalore Express (Weekly) Via Chheoki

57. Puducherry Kanniyakumari Express (Weekly) Via Villupuram, Mayiladuthurai, Tiruchchirappalli

58. Puri Sai Nagar Shirdi Express (Weekly) Via Sambalpur, Titlagarh, Raipur, Nagpur, Bhusawal

59. Puri Ajmer Express (Weekly) Via Abu-Road

60. Radhikapur Anand Vihar Link Express (Daily)

61. Rajendra Nagar Terminus (Patna) New Tinsukia Express (Weekly) Via Katihar, Guwahati

62. Tirupati Puducherry Express (Weekly)

63. Tirupati Bhubaneswar Express (Weekly) Via Visakhapatnam

64. Una / Nangaldam Hazoor Saheb Nanded Express (Weekly)

Via Anandpur Saheb, Morinda, Chandigarh, Ambala

65. Visakhapatnam Jodhpur Express (Weekly) Via Titlagarh, Raipur

66. Visakhapatnam Kollam Express (Weekly)

67. Yesvantpur Lucknow Express (Weekly) via Rae Bareli, Pratapgarh

Passenge r Trains

1. Bathinda Dhuri Passenger (Daily)

2. Bikaner-Ratangarh Passenger (Daily)

3. Bhavnagar Palitana Passenger (Daily)

4. Bhavnagar Surendranagar Passenger (Daily)

5. Bareilly Lalkuan Passenger (Daily)

6. Chhapra Thawe Passenger (Daily)

7. Loharu Sikar Passenger (Daily) after gauge conversion

8. Madgaon Ratnagiri Passenger (Daily)9. Marikuppam Bangalore Passenger (Daily)

10. Muzaffarpur Sitamarhi Passenger (Daily) via Runnisaidpur

11. Nadiad Modasa Passenger (6 days a week)

12. Nandyal Kurnool Town passenger (Daily)

13. New Amravati Narkher Passenger (Daily)

14. Punalur Kollam Passenger (Daily)

15. Purna Parli Vaijnath Passenger (Daily)

16. Palani-Tiruchendur Passenger (Daily)

17. Ratangarh - Sardarsahar Passenger (Daily) after gauge conversion


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18. Samastipur- Banmankhi Passenger via Saharsa, Madhepura (Daily) after gauge conversion

19. Shoranur Kozhikode Passenger (Daily)

20. Surendranagar Dharangdhara Passenger (Daily)

21. Suratgarh Anupgarh Passenger (Daily)

22. Somnath Rajkot Passenger (Daily)

23. Sitamarhi Raxaul Passenger (Daily) 35

24. Sriganganagar Hanumangarh-Sadulpur Passenger (Daily) after gauge conversion

25. Talguppa Shimoga Town Passenger (Daily)

26. Thrisur-Guruvayur Passenger (Daily)

MEMU Services

1. Barabanki Kanpur

2. Chennai Tirupati

3. Delhi- Rohtak (Replacement of conventional service by MEMU)

4. Lucknow Hardoi

5. Sealdah Berhampore Court

DEMU Services

1. Bhatkal Thokur

2. Delhi Kurukshetra Via Kaithal

3. Katwa Jangipur

4. Lucknow Sultanpur

5. Lucknow Pratapgarh Via Gauriganj

6. Madgaon Karwar

7. Rohtak Rewari

8. Taran Taran Goindwal Saheb

Extension of Trains

1. 19601/19602 Ajmer-New Jalpaiguri Express to Udaipur

2. 15715/15716 Ajmer-Kishanganj Express to New Jalpaiguri

3. 12403/12404 Allahabad Mathura Express to Jaipur

4. 17307/17308 Bagalkot-Yesvantpur Express to Mysore

5. 18437/18438 Bhubaneswar Bhawanipatna Express to Junagarh

6. 18191/18192 Chhapra Kanpur Anwarganj Express to Farrukhabad

7. 16127/16128 Chennai-Madurai portion of Chennai-Guruvayur Express to Tuticorin

8. 12231/12232 Chandigarh-Lucknow Express to Patna (2 days)

9. 12605/12606 Chennai-Tiruchchirappalli Express to Karaikudi

10. 14007/14008 Delhi-Muzaffarpur Express to Raxaul after gauge conversion

11. 14017/14018 Delhi-Muzaffarpur Express to Raxaul after gauge conversion

12. 12577/12578 Darbhanga-Bangalore Express to Mysore

13. 14731/14732 Delhi Bathinda Express to Fazilka

14. 14705/14706 Delhi Sarai Rohilla-Sadulpur Express to Sujangarh (Salasar Express)15. 15159/15160 Durg- Chhapra Express to Muzaffarpur and Gondia

16. 12507/12508 Guwahati-Ernakulam Express to Thiruvananthapuram

17. 17005/17006 Hyderabad-Darbhanga Express to Raxaul after gauge conversion

18. 17011/17012 Hyderabad- Belampalli Express to Sirpur Kaghaznagar

19. 16591/16592 Hubli-Bangalore Express to Mysore

20. 12181/12182 Jabalpur-Jaipur Express to Ajmer

21. 15097/15098 Jammu Tawi-Barauni Express to Bhagalpur

22. 13117/13118 Kolkata Berhampore Court Express to Lalgola

23. 22981/22982 Kota-Hanumangarh Express to Shri Ganga Nagar


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24. 15609/15610 Lalgarh- Guwahati Express to New Tinsukia

25. 12145/12146 Lokmanya Tilak (T)-Bhubaneswar Express to Puri

26. 12545/12546 Lokmanya Tilak (T)-Darbhanga Express to Raxaul after gauge conversion

27. 12449/12450 Madgaon-Hazrat Nizamuddin Express to Chandigarh

28. 12653/12654 Mangalore Tiruchchirappalli Express to Puducherry

29. 29019/29020 Meerut-Nimach Link Express to Mandasor 30. 22107/22108 Mumbai CST-Latur Express to

Hazoor Saheb Nanded

31. 14003/14004 New Delhi -New Farakka Express to Malda Town

32. 15723/15724 New Jalpaiguri-Darbhanga Express to Sitamarhi

33. 18419/18420 Puri-Darbhanga Express to Jaynagar

34. 19327/19328 Ratlam-Chittaurgarh Express to Udaipur

35. 13133/13134 Sealdah Varanasi Express (2 Days) to Delhi via Lucknow, Moradabad

36. 14711/14712 Shri Ganga Nagar Haridwar Express to Rishikesh

37. 16535/16536 Solapur-Yesvantpur Express to Mysore

38. 19251/19252 Somnath-Dwarka Express to Okha

39. 12629/12630 Yesvantpur Hazrat Nizamuddun Sampark

Kranti Express 2 days to Chandigarh

40. 59601/59602 Ajmer-Beawar Passenger to Marwar

41. 56513/56514 Bangalore-Nagore Passenger to Karaikal

42. 51183/51184 Bhusaval-Amravati Passenger to Narkher

43. 57502/57503 Bodhan-Kamareddi Passenger to Mirzapalli

44. 54632/54633 Dhuri-Hisar/ Hisar- Ludhiana Passenger to Sirsa

45. 56700/56701Madurai-Kollam Passenger to Punalur

46. 56709/56710 Madurai-Dindigul Passenger to Palani

47. 56275/56276 Mysore-Shimoga Town Passenger to Talguppa

48. 59297/59298 Porbander-Veraval Passenger to Somnath

49. 66611/66612 Ernakulam-Thrisur MEMU to Palakkad

50. 67277/67278 Falaknuma-Bhongir MEMU to Jangaon

51. 66304/66305 Kollam-Nagarcoil MEMU to Kanniyakumari

52. 63131/63132 Krishnanagar City-Berhampore Court MEMU to Ranaghat and to Cossimbazar

53. 74021/74024 Delhi-Shamli DEMU to Saharanpur

54. 76837/76838 Karaikudi-Manamadurai DEMU to Virudunagar after gauge conversion

55. 79454/79445 Morbi-Wankaner DEMU to Rajkot

56. 77676/77677 Miryalguda-Nadikudi DEMU to Piduguralla

57. 79301/79302 Ratlam-Chittaurgarh DEMU to Bhilwara 38

Increase in frequency

The frequency of the following trains will be increased:

1. 12547/12548 Agra Fort Ahmedabad Express 3 to 7 days

2. 11453/11454 Ahmedabad-Nagpur Express 2 to 3 days3. 22615/22616 Coimbatore-Tirupati Express 3 to 4 days

4. 14037/14038 Delhi-Pathankot Express 3 to 6 days

5. 19409/19410 Gorakhpur Ahmedabad Express 1 to 2 days

6. 13465/13466 Howrah Malda Town Express 6 to 7 days

7. 12159/12160 Jabalpur Amravati Express 3 to 7 days

8. 11103/11104 Jhansi Bandra (T) Express 1 to 2 days

9. 19325/19326 Indore Amritsar Express 1 to 2 days

10. 12469/12470 Kanpur Jammu Tawi Express 1 to 2 days

11. 12217/12218 Kochuveli Chandigarh Express 1 to 2 days


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12. 12687/12688 Madurai Dehradun/Chandigarh Express 1 to 2 days

13. 13409/13410 Malda Town Jamalpur Express 6 to 7 days

14. 17213/17214 Narsapur Nagersol (Near Sainagar Shirdi) Express 2 to 7 days

15. 12877/12878 Ranchi-New Delhi Garib Rath Express 2 to 3 days

16. 18509/18510 Visakhapatnam Hazoor Saheb Nanded Express 2 to 3 days

17. 22819/22820 Visakhapatnam Lokmanya Tilak (T) Express 2 to 7 days

18. 18309/18310 Sambalpur-Hazoor Saheb Nanded Express 2 to 3 days

19. 12751/12752 Secunderabad Manuguru Express 3 to 7 days

20. 12629/12630 Yesvantpur Hazrat Nizamuddun Sampark Kranti Express 2 to 4 days

21. 56221/56222/56525/56526 Bangalore Tumkur Passenger 6 to 7 days

22. 56321 Kanniyakumari-Tirunelveli Passenger 6 to 7 days

23. 56325 Nagercoil Kanniyakumari Passenger 6 to 7 days

24. 56312 Tirunelveli - Nagercoil Passenger 6 to 7 days

The Economic Survey 2013 says that foreign exchange reserves were steady at $295.6 billion at December

2012 end. Fiscal deficit may be at 5.3%, possible that Chidambadarm may bring it down to 5.2%, committed t

controlling fiscal deficit. Food inflation was mainly driven by cereal prices. Diesel price hike will put upward

pressure on inflation. The Survey also said that the economic slowdown is a wake up call for stepping up

reforms.

Here are the other highlights:

FY13 GDP growth target of 5% not difficult to achieve

Medium term fiscal consolidation plan 'credible'

Fund flows to be influenced by risk perception of investors

Need to hike Diesel, LPG prices in line with global prices

Montek says: Not surprised finance ministry has used CSO estimates for basis of survey

Need to access credit at lower costs

Tight RBI policy led to sharper than expected slowdown

RBI rate cut has had massive impact already

On inflation, survey echos sentiment that in short run, impact of policy easing may not increase inflation

Curb import, keep public spending in check

FY14 Current account deficit seen at 4.6%

Cushion for lowering trade deficit must be limited

Core inflation down on rbi action, fall in global prices


Further steps needed to diversify software exports

FY13 tax mop up significantly lower than budget estimate

0.2% fiscal slippage possible in FY14

Will need direct, indirect tax increases will get you revenue numbers: financial experts

Credible austerity has to be the way to growth: experts Finance sector to be influenced by short-term, long term of

Outlook on public finance: controlling subsidy, petroleum subsidy, recent reforms in diesel prices, medium

term consolidation plan seems secure

Need to curb gold and oil imports to curb current account deficit: Economic Survey

Need to stay on path of indicated fiscal deficit

Raghuram Rajan: slowdown in economy, euro crisis, uncertainty in fiscal policy in US and weak monsoon

Raghuram Rajan: difficult times but India has navigated such time before and with good policies we can go

ahead

Unless india undertakes reforms, will growth far below potential


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Monetary policy has limited influence on food prices

Mixed signals that ind growth has bottomed out

Main focus shud be on import of curbs of oil and gold

FII flows need to be tageted

Need to improve acccess to credit at lower rates

IIP growth may remain sluggish

Widening trade, current account gap matters of concern

Room to increase exports limited in short term

Need to curb gold imports to curb current account deficit

Need to stay on path of indicated fiscal deficit

FY13 services growth seen at 6.6%

WPI may decline to 6.2-6.7% in FY14, fall in inflation to increase monetary easing

Room to increase exports limited in short term limited

Growth downturn more or less over, economy looking up

Need to curb gold imports to cut CAD

Diesel price hike to put pressure on inflation

Widening trade, current ac defiit matter of concern

FY13 tax mop up significantly lower than last year

Food inflation mainly driven by cereal prices

Medium-term fiscal consolidation plan credible

Industrial growth still vunerable to local, global factors

Apr-Dec data shows 5.3% fiscal deficit achievable

Need to stay on path of indicated fiscal consolidation

Overall global economic environment remains fragile

Govt committed to fiscal consolidation

Concerns food security bill may push up subsidy

Lower ind growth due to sluggish investments

Economy to grow at 6.1-6.7% in FY13

WPI at 6.2% to 6.6% in march

Controlling supsidy remains crutial concern

Need to up diesel lpg prices in line with global rates


Mixed signals that ind growth has bottomed out

Main focus shud be on import of curbs of oil and gold

FII flows need to be tageted

Need to improve acccess to credit at lower rates

IIP growth may remain sluggish

Indian economy to grow at 6.1-6.7%

WPI inflation in March may go down to 6.2-6.6% Lower inflation to create more room for rate cuts

Growth downturn more or less over; economy looking up

About 56,000 women in India die every year due to pregnancy related complications. Similarly, every year

more than 13 lacs infants die within 1year of the birth and out of these approximately 9 lacs i.e. 2/3rd of the

infant deaths take place within the first four weeks of life. Out of these, approximately 7 lacs i.e. 75% of the

deaths take place within a week of the birth and a majority of these occur in the first two days after birth.

In order to reduce the maternal and infant mortality, Reproductive and Child Health Programme under the

National Rural health Mission (NRHM) is being implemented to promote institutional deliveries so that skilled

attendance at birth is available and women and new born can be saved from pregnancy related deaths.


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Several initiatives have been launched by the Ministry of health and Family Welfare (MoHFW) including Jana

Suraksha Yojana (JSY) a key intervention that has resulted in phenomenal growth in institutional deliveries.

More than one crore women are benefitting from the scheme annually and the outlay for JSY has exceeded

1600 crores per year.

Key features of the scheme:

The initiative entitles all pregnant women delivering in public health institutions to absolutely free and

no expense delivery, including caesarean section.

The entitlements include free drugs and consumables, free diet up to 3 days during normal delivery

and up to 7 days for C-section, free diagnostics, and free blood wherever required. This initiative also

provides for free transport from home to institution, between facilities in case of a referral and drop

back home. Similar entitlements have been put in place for all sick newborns accessing public health

institutions for treatment till 30 days after birth.

The scheme aims to eliminate out of pocket expenses incurred by the pregnant women and sick new

borns while accessing services at Government health facilities.

The scheme is estimated to benefit more than 12 million pregnant women who access Government

health facilities for their delivery. Moreover it will motivate those who still choose to deliver at theirhomes to opt for institutional deliveries.

All the States and UTs have initiated implementation of the scheme.

In most developing countries, provision of basic preventive, promotive and curative services is a major

concern of the Government and decision makers. With growing population and advancement in the medical

technology and increasing expectation of the people especially for quality curative care, it has now become

imperative to provide quality health care services through the established institutions.

Upgradation of CHCs to Indian Public Health Standards (IPHS) is a major strategic intervention under the

National Rural Health Mission (NRHM). The purpose is to provide sustainable quality care with accountability

and people's participation alongwith total transparency.

A secretary level committee has been constituted by Prime Minister Manmohan Singh to assist the PMs

council on climate change in implementing the 8 missions of theNational Action Plan of Climate Change

(NAPCC).

The absence of Inter-ministerial coordination has crippled the implementation of the missions resulting in the

setting up of the executive panel on climate change to be headed by principal secretary to Prime Minister

Pulok Chatterji.

What is the job of the pane l:

The committee will regularly monitor the implementation of the eight missions, other climate change initiatives

and advise the Prime Minister s council on modifications in the objectives, strategies and structure of the

missions.

The Prime Ministers council on climate change was formed in 2007, in order to co-ordinate national action fo

assessment, adaptation and mitigation of climate change.

What is NAPCC and what are its 8 missions:


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NAPCC is a comprehensive action plan which outlines measures on climate change related adaptation and

mitigation while simultaneously advancing development. The 8 Missions form the core of the Plan,

representing multi-pronged, long termed and integrated strategies for achieving goals in the context of clima

change. The Eight Missions are:

I. National Solar Mission

Objective:

Make solar energy competitive with fossil-based energy options.Launch an R&D programme facilitating international co-operation to enable the creation of affordable,

more convenient solar energy systems.

Promote innovations for sustained, long-term storage and use of solar power.

II. National Mission for Enhanced Energy Efficiency

The Energy Conservation Act of 2001 provides a legal mandate for the implementation of energy

efficiency measures through the mechanisms ofThe Bureau of Energy Efficiency (BEE) in the

designated agencies in the country.

A number of schemes and programmes have been initiated which aim to save about 10,000 MW by the

end of the 11th Five-Year Plan in 2012.

III. National Mission on Sustainable Habitats

Objective:

Make habitats sustainable through improvements in energy efficiency in buildings, management of solid

waste and a modal shift to public transport.

Promote energy efficiency as an integral component ofurban planning and urban renewal through

its initiatives.

IV. National Water Mission

Objective:

Conserving water, minimizing wastage, and ensuring more equitable distribution and management of

water resources.

Optimizing water use efficiency by 20% by developing a framework of regulatory mechanisms.

V. National Mission for Sustaining the Himalayan Ecosystem

Objective:

Empowering local communities especially Panchayats to play a greater role in managing ecological

resources.

Reaffirm the measures mentioned in the National Environment Policy, 2006.

VI. National Mission for a Green India

Objective:

To increase ecosystem services including carbon sinks.

To increase forest and tree cover in India to 33% from current 23%.


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VII. National Mission for Sustainable Agriculture

Objective:

Make Indian agriculture more re silient to climate change by identifying new varieties of crops

(example: thermally resistant crops) and alternative cropping patterns.

Make suggestions for safeguarding farmers from climate change like introducing new credit and

insurance mechanisms and greateraccess to information.

VIII. National Mission on Strategic Knowledge on Climate Change

Objective:

Work with the global community in research and technology development by collaboration through

different mechanisms. It also has its own research agenda supported by climate change related

institutions and a Climate Research Fund.

Encourage initiatives from the private sector for developing innovative technologies for mitigation and

adaptation.

Venezuelas government has announced that is devaluing the countrys currency, a change expected to push

up prices in the heavily import-reliant economy.The fixed exchange rate is changing from 4.30 bolivars to the dollar to 6.30 bolivars to the dollar.

The devaluation had been widely expected by analysts in recent months.

It was the first devaluation to be announced by President Hugo Chavezs government since 2010.

Planning and Finance Minister Jorge Giordani said the new rate takes effect immediately, though the old rate

would still be allowed for some transactions that already were approved by the state currency agency.

Venezuelas government has had strict currency exchange controls since 2003 and maintains a fixed,

government-set exchange rate.

Under the currency controls, people and businesses must apply to a government currency agency to receive

dollars at the official rate to import goods, pay for travel or cover other obligations.

While those controls have restricted the amounts of dollars available at the official rate, an illegal black markhas also flourished and the value of the bolivar has recently been eroding.

In black market trading, dollars have recently been selling for more than four times the official exchange rate

of 4.30 bolivars to the dollar.

MCX Stock Exchange (MCX-SX) will begin trading in equities and equity derivatives from February 11.

With its 40-stock index named SX40, MCX-SX is the third full-fledged equity bourse after BSE and NSE. The

bourse was formally launched by Finance Minister P. Chidambaram on Saturday.

Free-float based index:

SX40 will be a free-float based index of large-cap and liquid stocks, representing diverse sectors. The base

value will be 10,000 with a base date of March 31, 2010, MCX-SX Vice-Chairman Jignesh Shah said during th

launch.The index is designed to measure the economic performance with better representation of various industries

and sectors based on the ICB (industry classification benchmark), a global classification from the FTSE of th

London bourse.

Globalization is a process through which different economies of the world gradually lift up the restrictions, tha

hinders the free flow goods, services, resources etc. across various political boundaries.

This is done in particular through International Business (carries out mainly through International Trade and

Investment), aided by sophisticated technologies and market integration.

International Business


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International Business means carrying out businesses beyond national boundaries. The international

business includes both International Trade as well as Foreign Direct Investment (FDI).

International Trade can broadly be divided into two parts viz. Export and Import.

Export - The transaction of goods and services (via. sales, barter, gift or grant) from home country to

the host country is called Export.

Import - The transaction of goods and services (via. sales, barter, gift or grant) to home country from

host country is called Import.

Foreign Direct Investmentoccurs when an investor based in one country (at home country)

acquires an asset in another country (the host country) with intent to manage that asset. It is the

management dimension that typically differentiates FDI from Portfolio Investment in fore ign

securities and financial instruments in foreign securities and financial instruments.

In most cases both the investor and the asset it manages abroad are business entity. In such a case investo

is typically referred to as 'parent firm' and the asset it manage is called 'affiliate' or 'subsidiary'.

Motive behind Foreign Direct Investment (FDI) includes:-

Acquiring natural resources

Recovery of large expenditure made on research and development

Capturing a large International Market System

Earning Large Profit

Maintaining Balance of Payment

Importance of International Business

The importance of International Business can be studied at two levels:

Macro Level

1. No country (be it developed or developing) produces all the commodities to meet its requirement as

such it needs to port those commodities that are either not produced or produced in insufficient

quantity in domestically to meet its requirements.

2. At the same time all the countr ies tries to export all the commodities that are in excess of its domestic

consumption.

3. Maintaining favorable balance of payment.

Micro Level

1. Maximization of corporate wealth

Corporate wealth is the value of productive asset plus the present value of wealth created by those

assets.

Alternatively, corporate wealth quals to the sum of total of debt and equity of a firm.

2. Minimization of cost

Acquiring the resources which are relatively cheaper helps reduce the cost of production.

3. Minimization of risk through

(A) Diversification of business


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(B) Expansion of business

Approaches to International Business

Ethnocentric- In this form of approach, the policies of a firm operating in foreign country are based

upon that of home country.

Polycentric- In this form of approach, the policies of a firm operating in foreign country are based

upon that of host country in which it is operating.

Geocentric- Between above two approaches, geocentric approach follows a real life situation, where

there exist no distinction (or boundaries) of framing the policies in terms of either home or host country.

This approach aims to fit the "right policy at right place".

socio economy at a glance

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