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Current Economic Statistics and Review For the Week 
Ended September 06, 2008 (36th Weekly Report of 2008)

 

Theme of the week:

 

Growth of India’s Telecom Sector: Landline Versus Mobile *  

Telecom services the world over have begun to play all-embracing roles in the socio-economic development for a nation. Telecommunication is one of the prime support services essential for rapid growth and modernisation of various sectors of the economy. In India , development of telecom infrastructure has been conceived as the backbone of industrialisation as well as the general socio-economic development. Accordingly, the Department of Telecommunications (DoT) has been formulating developmental policies for an accelerated growth of telecom services. Indeed, telecommunications is one of the few sectors in India , which has witnessed unprecedented expansion as well as the most striking structural and institutional reforms since 1991.

Liberalisation

In 1991 India adopted the new economic policy (NEP) of liberalisation aiming at improving the economy’s competitiveness in the global market. A telecommunications service of world-class quality was essential for the success of the NEP. It was, therefore, necessary to give the highest priority to the development of telecom services in the country. Learning from the experience of developed countries, India like many other countries of the world adopted a gradual approach to telecom sector reforms through selective privatisation and managed competition in different segments of the telecom market. The first wind of reforms in the telecommunications sector began in the 1980s when the private sector was allowed in equipment manufacturing.

Deregulation

To begin with, India introduced private competition in value-added services in 1992. The primary reason for deregulation was the poor performance of state-owned telecom companies – huge unmet demand, poor quality of service, higher tariff and inefficient operations. In 1994 the telephone density in India was about 0.8 per 100 persons as against the world average of 10 per 100 persons. It was also lower than that of many developing countries of Asia like China 1.7, Pakistan 2.0 and Malaysia 13.0. As on March 1994, there were about 8 million lines with a waiting list of about 2.5 million. Only 1.4 lakh villages, out of a total of 5,76,490 villages in the country, were covered by telephone services. Considering the great potential for the growth of telephone demand with the accelerated growth of economic activities, the Government of India announced the National Telecom Policy (NTP) 1994 in an attempt to give a comprehensive roadmap for the Indian telecommunications sector.

NTP – 1994

The initial framework for the deregulation of India ’s telecom sector was contained in the NTP 1994. The new policy opened up basic telecom services to competition. The government invited private sector participation in a phased manner from the early nineties, initially for value added services such as Paging Services and Cellular Mobile Telephone Services (CMTS) and thereafter for Fixed Telephone Services (FTS).

Further Reforms

The reforms began with NTP 1994 and were later followed by the constitution of a regulatory authority in the form TRAI and NTP 1999. In 1997, Parliament enacted the Telecom Regulatory Authority of India (TRAI) Act to “regulate telecommunications services.”  As originally constituted, TRAI was responsible for making recommendations to the government on telecommunications, supervising service providers, and more importantly, settling disputes between service providers and consumers, as also amongst service providers. It has been set up with a view to discharging regulatory functions, thereby providing a level playing field in the telecom sector. TRAI began functioning as a regulatory authority in the telecom sector from February 20, 1997.

New Telecom Policy

Certain important objectives of the NTP 1994 had remained unfulfilled, like availability of telephone on demand, provision of world class services at reasonable prices and universal availability of basic telecom services to all villages. The government recognised that the country ought to have a new comprehensive and forward-looking telecommunications policy which creates an enabling framework for development of a world-class telecom infrastructure and also to facilitate India ’s vision of becoming an IT superpower. Accordingly, the government designed the NTP 1999 to attract fresh interests in to the Indian telecommunications, an industry affected by the controversy over licence fees and by uncertainty from the frequent clashes between the TRAI and the government over telecom policy. Besides, the new policy was intended to attract further foreign investment and to promote growth in telecommunications. 

Phenomenal Growth in Gross Subscribers

As stated above, India ’s telecom sector has undergone a major transformation through significant policy reforms. After the announcement of NTP 1999, progress in India ’s telecom industry has been extremely rapid. The opening of the sector has not only led to rapid growth but also helped a great deal towards maximisation of consumer benefits both in terms of tariffs and some competitive service. The tariffs have been falling continuously across the board as a result of healthy and unrestricted competition.

As per the latest report of TRAI at the end of March 2008 the gross subscribers’ base consisting of fixed and mobile users has risen to 300.51 million as against less than one-tenth at 22.81 million subscribers at the end of March 1999. The telecom subscriber base has reached a new milestone as more than 278 million telephony subscribers have been added during the last decade, registering a compound annual growth rate (CAGR) of 32.6 per cent. The crossing of 300 million base is another significant landmark after the country achieved the target of 250 million telephone subscribers in December 2007. Today, our teledensity stands at about 26.2 subscribers per 100 people, predominantly due to the mobile additions. The fixed line numbers, in contrast, are falling, while mobile has emerged as the preferred access medium.

Growth of Cellular Subscribers

Since 2000, the Indian telecom sector has been a key contributor to the economy’s impressive performance registering sustained high growth rates. Mobile phones have been the principal engine for telecom growth in the country, as it has been in other parts of the world though not to the same extent as in India . The reform measures coupled with the proactive policies of the DoT have resulted in an unprecedented growth of the mobile segment.

 

 

Table 1: India ’s Gross Telephone Subscribers (Fixed + Mobile phones)

(in million)

Year

Fixed

Lines

New

Additions

Mobile

(including WLL)

New

Additions

Total

Percentage

Change

March 1999

21.61

3.81

1.20

0.32

22.81

22.1

March 2000

26.65

5.04

1.88

0.68

28.53

25.1

March 2001

32.71

6.06

3.58

1.70

36.29

27.2

March 2002

38.29

5.58

6.68

3.10

44.97

23.9

March 2003

41.33

3.04

13.3

6.62

54.63

21.5

March 2004

40.92

-0.41

35.61

22.31

76.53

40.1

March 2005

41.42

0.50

56.95

21.34

98.37

28.5

March 2006

40.23

-1.19

101.86

44.91

142.09

44.4

March 2007

40.77

0.54

165.09

63.23

205.86

44.9

March 2008

39.42

-1.35

261.09

96.00

300.51

46.0

CAGR

6.0

 

87.7

 

32.6

 

Source: GOI, Department of Telecommunications (DoT), Ministry of Communications and

              Information Technology, various issues.

 

India Enjoys the World’s Third Largest Mobile Subscriber Base

During the last few years, the mobile sector has witnessed high growth rates. Since 2004 the number of cell phone has grown at a rate of 60 per cent plus, with the exception of 2008. Today, the Indian telecommunications network with over 261 million mobile connections is the third largest in the world and the second largest among the emerging economies of Asia, next only to China . As a demand booster, reduction in tariffs and cost of handsets, which essentially make the service affordable for the users, has supplemented the growth of the Indian telecom sector. As a result, the common man today has access to this most needed facility. Currently, India continues to be one of the fastest growing telecommunication markets in the world, as the country continues to add about 8 million new mobile connections each month. In recent years, however, smaller towns have fuelled further growth in mobile telephony. As indicated in Table 1, the growth of mobile phones has been phenomenal, registering a CAGR of 87.7 per cent during the last decade (March 1999 to March 2008). Consequently, the total number of mobile subscribers [(GSM, CDMA & WLL (F)]* at the end of March 2008 has touched 261.09 million as compared to 35.61 million in March 2004 and 1.88 million in March 2000.

Structural Composition – Fixed vs. Mobile

The structure and composition of telecom growth has undergone a substantial change in terms of fixed vs. mobile phones. Land-line services grew strongly for a while but have been experiencing of late zero growth. As indicated in Table 2, the growth in telephone subscribers in the initial 5 years, between March 1999 and March 2003 was primarily driven by fixed-line telephones, while in the last 5 years, between March 2004 and March 2008 it has been predominantly driven by the cellular phones on account of rapid expansion. During this period the rate of decline of land lines accelerated sharply. As a result, the fixed-line segment has grown from around 21.61 million subscribers in March 1999 to around 41.33 million in March 2003. 

Table 2: Growth of Telephone Subscribers (Fixed + Mobile phones)

(in million)

Year

Fixed

Lines

New

Additions

Mobile

(including WLL)

New

Additions

Total

Percentage

Change

March 1999

21.61

-

1.20

-

22.81

-

March 2003

41.33

19.72

13.3

12.1

54.63

139

March 2008

39.42

-1.91

261.09

247.79

300.51

450

Source: As in Table 1.

 

During the period March 1999 to March 2003, around 19.72 million new landline subscribers were added as compared and 12.1 million new mobile subscribers. However, the year 2004 was a watershed year for the fixed-line services in India as mobile subscribers outnumbered fixed phone subscribers. In October 2004, the number of mobile phone users in India has crossed the number of fixed-line subscribers for the first time. According to the Cellular Operations Association of India (COAI), the total number of mobile subscribers at the end of October 2004 was 44.52 million compared with 43.96 million fixed-line subscribers. The number of mobile users in the country exceeded the fixed subscribers in circles like Mumbai, Delhi , Chandigarh , Punjab and Chennai. Consequently, the cellular segment grew from around 1.20 million subscribers in March 1999 to around 13.3 million in March 2003.

Today, the mobile subscribers are not only much more than the land-line subscribers in the country, but also increasing at a much faster pace. This was along expected lines as, for the past few years, mobile phone subscriptions has seen growth at many times faster rate than fixed phone subscriptions with almost all leading operators focusing more on wireless. Consequently, between March 2004 and March 2008, the country has added around 247 million new wireless subscribers to reach a total of 261 million; however, our fixed line subscriptions declined by 1.91 million, down to 39.42 million over the same period.

Sustained Growth of Fixed-line Telephones in China

Notwithstanding such remarkable achievement, it is necessary to note that India still lags far behind countries like Brazil and China , where the tele-density is over 50. China ’s subscriber base is whopping. According to the China ’s Ministry of Information Industry (MII), by the end of calendar 2007, China ’s gross subscriber base consisting of fixed and mobile users had touched 912 million. Of the gross subscribers’ base, mobile subscribers have numbered 547 million and fixed-line subscribers about 365 million at the end of December 2007.

Table 3: China ’s Gross Telephone Subscribers (Fixed + Mobile phones)

(in million)

Year

Fixed

Lines

New

Additions

Mobile

Phones

New

Additions

Total

Subscribers

2001

180.37

35.5

145.22

60.7

325.59

2002

214.22

33.9

206.01

60.8

420.23

2003

262.75

48.5

269.95

63.9

532.70

2004

311.76

49.0

334.82

64.9

646.58

2005

350.45

38.7

393.41

58.6

743.85

2006

367.79

17.3

461.06

67.7

828.84

2007 $

365.00

-2.8

547.00

85.9

912.00

Note: $ The data is tentative

Source: China , Ministry of Information Industry (MII).

 

Table 3 indicates that in China , landline subscribers are nine times more than India . At the end-of December 2007 China ’s fixed-line customer base stood at 365 million as compared to India ’s 39.25 million subscribers. In India , the mobile phone subscriptions has grown many times faster then fixed phone subscriptions; lately, however, the country have been witnessing zero growth in landline telephony. But China has been able to retain their fixed-line subscribers despite robust growth in mobile subscriptions.

Key Factors for Growth of Mobile Telephones

During the period 2003-2008, mobile tariffs continued to show a downward trend and declined by around 80 per cent on account of rising competition as there were two cellular operators in each of the 21 telecom circles and in some circles it had doubled to four. As well, there has been an on-going competition in tariff rates in metros; for instance currently in Mumbai there are 6 cellular operators offering competitive rates to customers. On account of fierce competition among telecom operators in India , the monthly mobile tariff has been declining persistently, despite of prohibitive regulatory costs that are amongst the highest in the world. As per the review of tariff statistics available from the International Telecom Union (ITU), EMC, the mobile telephony tariffs in India are the lowest in the world. Accordingly, the key factors responsible for the success of mobile telephones in India can be enumerated as follows:

(i)                  Competition-induced sharp decline in tariffs, which have made wireless highly affordable;

(ii)                Sharp reduction in handset prices on account of deduction in taxes and fierce competition among manufacturers to increase their market-share;

(iii)               Aggressive promotion of prepaid offerings and

(iv)              Increased competition from the third and fourth cellular operators.

In addition, owing to falling prices of equipment, deployment of wireless infrastructure has become more economical than provisioning of fixed lines. Besides, deployment of advanced cellular technologies has eased the coverage of difficult terrains and thus, has accelerated the telecom network rollout.

A Few Other Aspects

Recently, member of the Rajya Sabha, Ms Anusuiya Uikey has raised a question in Parliament regarding the details of number of subscribers who have withdrawn landline connections and the reasons for the withdrawals. The Minister of Communication and Information Technology replied that around 45.2 lakh have discontinued the landline services during the last five years (Table 4).

Table 4: Number of Landline Connections of BSNL and MTNL

(in lakhs)

Year

BSNL

 

New

Additions

MTNL

 

New

Additions

Total New

Additions

(MTNL+BSNL)

March 2004

354.3

-

43.3

 

 

March 2005

358.6

4.3

40.1

-3.2

1.1

March 2006

354.2

-4.4

38.2

-1.9

-6.3

March 2007

337.4

-16.8

37.2

-1.0

-17.8

March 2008

315.6

-21.8

36.8

-0.4

-22.2

March 2004 to March 2008

 

 

-38.7

 

 

-6.5

 

-45.2

Source: Parliament of India , http://parliamentofindia.nic.in/

 

As indicated in Table 4, during the period March 2004 to March 2008, the rate of decline of land lines accelerated sharply. Despite the best efforts of Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL), there seems to be no let-up in the surrender of landline connections, with close to 45 lakh landline subscribers having discontinued their connections in the last five years. The Minister in his reply has stated the reasons for withdrawal of landline connections as follows:

(i)                  Preference of customers for mobile telephone over landline telephone;

(ii)                Surrendering of 2nd and above telephone taken for internet etc. due to availability of broadband;

(iii)               Shifting of landline customer to BSNL Mobile;

(iv)              Shifting of customer to private operator;

(v)                Surrender of excess landline telephone connections and

(vi)              Shifting of office/company/residence.

 

In order to retain the number of landline subscribers the telecom analysts in the country have suggested some measures. Some of the major suggestions are as follows:  

(i)                  The fixed line service providers need to provide value over and above voice connectivity;

(ii)                Telecom companies should provide a host of value-added services such as SMS, MMS and caller tunes, which are rather uncommon on fixed-lines;

(iii)               If fixed lines providers want to fight back, they will have to change their current tariff plans by providing bundled packages with attractive schemes; and    

(iv)              The most important is to provide pre-paid fixed-line connections as the customers prefer pre-paid as compared to post-paid on account of operational convenience.   

Conclusion

Despite many attractive schemes being offered by BSNL and MTNL to retain landline customers, it has had a limited effect so far. Recently, the government has decided to exempt companies offering fixed-line fee, which is paid on the adjusted gross revenue (AGR), to boost competition in the fixed-line segment.

However, the telecom players comprehend that there is a need for the government to take a proactive approach on this issue as the huge infrastructure set up by the public owned companies BSNL and MTNL is not being used optimally.

However, the telecom analysts opine that the fixed line telephony segment is definitely poised for growth in the coming years as the telephone operators are increasingly focusing on enhancing broadband penetration levels in the country and looking at introducing new value-added services to enhance the experience of customers. BSNL is planning to use new technologies such as internet protocol television (IPTV) for tapping the fixed-line market. Managing Director of BSNL said that, “I think the trend should reverse. Broadband and IPTV should give a boost to landline numbers in India . In China , landline numbers are ten times more than India . So, there’s no reason why we should not have a good number of landlines in the country. If private operators also come out with their landline plans, the fixed phone subscriber numbers are bound to go up significantly”.

 

References

 

TRAI (2004): ‘Consultation Paper on Spectrum related issues: Efficient Utilisation, Spectrum Allocation, and Spectrum Pricing’, May 31.

 

GOI (2007): Annual Report 2006-07, Department of Telecommunications (DoT), Ministry of Communications & Information Technology.

 

GOI (2002): ‘Report of the Steering Committee on communication and for the Tenth Five Year Plan (2002-2007) Planning Commission, May.

 

Jain R, ‘Framework for Review of Indian Spectrum Management Policies’ IIM Ahmedabad.

 

Sisodiya A S & Pothal S P (2008): ‘Spectrum Scuffle – War for the (Air) Waves’, The Analyst, February.

 

Business Line (2006): ‘CDMA camp divided over spectrum allocation’, May 28.

 

Business Line (2005): ‘TRAI proposes cut in spectrum charges’, May 13.

 

* This note is prepared by Bipin K Deokar.

 



* GSM – Global System for Mobile Communication, CDMA – Code Division Multiple Access and WLL(F) – Wireless Local Loop (Fixed).

 

 

Highlights of  Current Economic Scene

AGRICULTURE  

Procurement of Rice

(In million tonnes)

States

Quantity

Punjab

7.89

Andhara Pradesh

6.68

Uttar Pradesh

2.84

Chhattisgarh

2.56

Orissa

2.31

Haryana

1.57

West Bengal

1.2

Source: Media

The central government would not be able to achieve the rice procurement target of 27.6 million tonnes this year, even though it started purchasing foodgrain from the last week of June 2008, at an increased minimum support price (MSP) to Rs 850 per quintal fixed for 2008-09 marketing season. Rice procurement has touched 27 million tonnes so far and is expected to end up with 27.3 - 27.4 million tonnes during the current marketing season ending this month. The government, however, has been able to procure only 792,000 tonnes during July-August as against 700,000 tonnes in the same period last year despite paying the enhanced MSP. The industry sources have blamed rice millers for undertaking slow procurement in Andhra Pradesh. Besides, it has been reported that states like Orissa, Chhattisgarh have not transferred the total quantity of rice procured by them to the central pool.

As per the notification on September 3, 2008 by Directorate General of Foreign Trade, exports of Pusa-1121 non-basmati rice variety would be allowed for shipment with an immediate effect instead of scheduled date of October 15, 2008 at a minimum export price of US $1,200 (or Rs 48, 000) per tonne. This move is expected to tranquil supply concerns in the global market. Shipments of rice would be permitted only through ports at Kandla, Kakinada , Kolkata, JNPT Mumbai, Mundra and Pipavav. India , the world's biggest producer of rice after China , banned exports of non-basmati rice, while kept basmati exports open under government set price. Prices of rice have fallen by 25 per cent internationally from a record rise in the month of April, as Thailand and Vietnam , the top suppliers, raised export forecasts this year taking into account farmers’ increased plantings. Increase in rice prices domestically and internationally have spurred sowings of paddy in India by 5 per cent to 34.5 million hectares and the agriculture ministry expects that rice output would cross last year's record of 96.43 million tonnes.

According to Cotton Association of India, the central government has increased the minimum support prices (MSP) of cotton by 48 per cent to match an increase in market rates. India is the world's second-highest cotton producer. The centre would be paying Rs 3, 000 for each bale of long staple fiber, up from Rs 2, 030 a year ago. Prices of medium staple cotton have been raised by 39 per cent to Rs 2,500 per bale (1 bale of cotton weighs 170 kilograms). Cotton prices in India have risen by over 40 per cent since past 12 months, as farmers and traders have held back supplies and exports have surged.

State-owned co-operative major National Agricultural Cooperative Marketing Federation (Nafed) has kept the minimum export price (MEP) of onion for September unchanged at the average of US $250-255 per tonne amid domestic prices showing signs of stability. At present, retail prices of onion in the national capital are ruling at Rs 15-20 per tonne.

Sugar mills in Uttar Pradesh have to pay an additional Rs 1,480 crore to the farmers following the Supreme Court's refusal to stay the Allahabad High Court's judgment that upheld the state-advised price (SAP) of cane at Rs 125-130 per quintal. The additional sugarcane payment of Rs 1,480 crore to the farmers is expected to be made by September 7 2008, after the apex court's refusal to extend the time.

According to Uttar Pradesh Sugar mills Association, the overall sugar production in Uttar Pradesh would surpass Maharashtra sugar output in the sugar year to September 2009. The state has estimated the sugar production at 6.2 million tonnes in the season starting from October 2008, down by 15 per cent from a year ago due to a drop in acreage as farmers have moved to crops such as paddy. The state is estimated to produce 7.3 million tonnes in the sugar year ending September 2008, trailing Maharashtra estimated output of 9.1 million tonnes. Together, these two states would account for 60 per cent of the country’s total output, pegged at about 27 million tonnes. Output of sugar in the state in the year ending September 2009 would be around 5.2 – 5.7 million tonnes due to diversion of cane crops for non sugar use and defiant rains. Even though acreage under sugarcane is lower by 21 per cent in Uttar Pradesh, the favourable rainfall in the state is predicted to take the overall production up.

International Sugar Organisation (ISO) has estimated that global sugar production would fall by 7.4 million tonnes to 161.6 million tonnes in 2008-09, owing to steep fall in sugar output in India , Brazil and a continuing contraction of production in the European Union (EU). The world sugar deficit in 2008-09 would be of 3.90 million tonnes as against a surplus of 7.25 million tonnes in 2007-08. According to the Maharashtra State Co-operative Sugar Factories Federation Ltd., sugar production in India in 2008-09 is estimated to fall by 20 per cent to 21.7 million tonnes against 27.3 million tonnes. It is expected that this would further slip by 14 per cent to 18.7 million tonnes in 2009-10 sugar season. Apart from rain-shortage, delay in payments from the sugar producers has discouraged farmers to take up sugarcane cultivation owing to which most of the farmers have shifted to other remunerative crops. In Maharashtra, the output is estimated to drop by 38 per cent to 5.7 million tonnes compared to 9.2 million tonnes last year, Uttar Pradesh by 14 per cent to 6.5 million tonnes (from 7.6 mt), Karnataka 2.5 mt (from 2.8 mt), Tamil Nadu 2 mt (from 2.5 mt) and Andhra Pradesh 1 mt (from 1.3 mt). According to the Brazilian Sugarcane Industry Association, sugar output in Brazil ’s centre south, the world’s biggest-producing region, has slumped by 20 per cent in the first half of August after rains slowed harvesting and mills turned more cane into ethanol.

Coffee Exports in January-August

(in tonnes)

Item

2007

2008

Change in per cent

Arabica Parchment

24,454

32,686

33.66

Arabica Cherry

8,313

6,318

-24

Robusta Parchment

16,815

14,857

-11.64

Robusta Cherry

66,305

68,933

3.96

Instant coffee

41,535

43,671

5.14

Total

157,427

166,465

5.74

Source: Coffee Board

According to the Coffee Board statistics, realisation from Indian coffee exports (permit issued), in rupee terms, has increased by 33.04 per cent to Rs 1,789.73 crore in the first eight months of the calendar year 2008 as against to Rs 1,345.20 crore worth coffee exported during the same period last year. In dollar terms, it has risen by 29.93 per cent at US $ 412.70 million from last year. As for the unit value realisation, it is up by 25.81 per cent to Rs 1,07,513 per tonne. Coffee exports (permit issued) for the first eight months have risen by 5.74 per cent to 166,465 tonnes. The prices of Arabica parchment in the month of August fluctuated in the range of Rs 5,300 to Rs 5,600 per 50 kg bag, in tune with the international coffee prices. As for the global coffee exports, the International Coffee Organisation has stated that in the first 10 months of coffee year 2007-08 (October to July) exports have fallen by 4.2 per cent to 79.3 million bags. Exports of Arabica in the same period was just under 62 million bags compared to 64.3 million bags last year; whereas Robusta exports amounted to 32.3 million bags against 34.7 million bags.

According to Rubber Board, production of natural rubber has shot up by over 18 per cent to 72,000 tonnes during August 2008 as against 60,850 tonnes in the year-ago period due to favourable climatic conditions. The consumption level of natural rubber was up by 4 per cent at 78,000 tonnes in August, compared to 75,105 tonnes for the same period last year. Exports in the period under review this year showed a whopping rise of 65 per cent at 2,341 tonnes as against 1,416 tonnes in the same period last year. Imports dipped by 150 per cent to 2,726 tonnes, compared with 6,839 tonnes in the same period last year. It is projected that natural rubber yield for the 2008-09 fiscal year would be at 8.75 lakh tonnes and consumption at 8.99 lakh tonnes. The exports and imports are estimated at 50,000 tonnes and 80,000 tonnes, respectively. In 2007-08 fiscal, the production of natural rubber slipped by 3 per cent to 8.25 lakh tonnes from 8.52 lakh tonnes in 2006-07. But the consumption increased by 5 per cent to nearly 8.6 lakh tonnes during 2007-08. The country exported 51,381 tonnes of natural rubber in the same fiscal against 56,545 tonnes in the previous fiscal.

A senior official of Tea Board has reiterated that e-auctioning of tea would go online by November 2008 and the software and system testing for the project would be carried out by the month of September. The Information Technology (IT) arm of the National Stock Exchange (NSE) has developed the customised software application for e-auction of tea. It is expected that the IT solution for auctioning of tea in the country would expedite the process of futures trading in tea across the country. The new auctioning mechanism would provide optimal market timings, standard contract descriptor, uniform price increments, price discovery, uniform lot size, automatic matching and audit trail. This system would bring all auction participants on one platform, where they can carry out online transactions. Currently, auctioning centres are functioning at Guwahati, Kochi , Siliguri and Jalpaiguri. All-India tea production is expected to be at 962 million kgs in 2008.

Kerala accounts for nearly 20 per cent of the country’s total annual seafood exports of Rs 7,000 crore and almost 50 per cent of Kerala’s share is usually attained in the August-October period. But this year, the export sector has been affected badly due to the non-availability of ice, delay in processing due to electricity cuts, the 25 per cent power cut at high-tension freezing plants and the additional costs charged (Rs 12.50 per unit instead of the average tariff of Rs 5.52) for power in the plants and high fuel prices. This has led to a sharp dip in the prices of almost all varieties of seafood by the last week of August. The price of squid, a popular item in the global market, has dropped to Rs 40-60 per kg from Rs 140-160 a few weeks ago. There is poor demand for erstwhile popular items such as Indian sardine and mackerel.

Infrastructure

The Index of Six core-infrastructure industries having a combined weight of 26.7 per cent in the Index of Industrial Production (IIP) with base 1993-94 stood at 240.1 in July 2008 and registered a growth of 4.3 per cent compared to a growth of 7.2 per cent in July 2007. During April-July 2008-09, six core-infrastructure industries registered a growth of 3.7 per cent as against 6.6 per cent during the corresponding period of the previous year. 

Crude Oil production (weight of 4.17 per cent in the IIP) registered a negative growth of 3.0 per cent in July 2008 compared to a growth rate of 0.9 per cent in July 2007. The Crude Oil production registered a growth of (-) 0.9 per cent during April-July 2008-09 compared to (–) 0.3 per cent during the same period of 2007-08.

Petroleum refinery production (weight of 2.00 per cent in the IIP) registered a growth of 11.8 per cent in July 2008 compared to growth of 4.7 per cent in July 2007. The Petroleum refinery production registered a growth of 5.4 per cent during April-July 2008-09 compared to 11.0 per cent during the same period of 2007-08.

Coal production (weight of 3.2 per cent in the IIP) registered a growth of 5.5 per cent in July 2008 compared to growth rate of 1.1 per cent in July 2007. Coal production grew by 7.7 per cent during April-July 2008-09 compared to an increase of 0.8 per cent during the same period of 2007-08.

Electricity generation (weight of 10.17 per cent in the IIP) registered a growth of 4.5 per cent in July 2008 compared to a growth rate of 7.5 per cent in July 2007. Electricity generation grew by 2.6 per cent during April-July 2008-09 compared to 8.1 per cent during the same period of 2007-08.

Cement production (weight of 1.99 per cent in the IIP) registered a growth of 8.8 per cent in July 2008 compared to 9.4 per cent in July 2007. Cement Production grew by 6.5 per cent during April-July 2008-09 compared to an increase of 7.7 per cent during the same period of 2007-08.

Finished (carbon) Steel production (weight of 5.13 per cent in the IIP) registered a growth of 1.9 per cent in July 2008 compared to 10.8 per cent (estimated) in July 2007. Finished (carbon) Steel production grew by 3.8 per cent during April-July 2008-09 compared to an increase of 6.8 per cent during the same period of 2007-08.

Inflation

The official Wholesale Price Index (WPI) for 'All Commodities' (Base: 1993-94 = 100) for the week ended 30th August 2008 rose by 0.2 per cent to 240.8 from 240.3 for the previous week.

The annual rate of inflation, calculated on point to point basis, stood at 12.10 per cent for the week ended 30/08/2008 (over 01/09/2007) as compared to 12.34 per cent for the previous week. The annual rate of inflation stood at 3.72 per cent as on 01/09/2007 i.e. a year ago.

The index for Primary Articles group rose by 0.3 per cent to 249.2 from 248.5 for the previous week. The annual rate of inflation, calculated on point to point basis, for ‘Primary Articles’ stood at 10.07 per cent for the week ended 30/08/2008. It was 8.07 per cent as on 01/09/2007 i.e. a year ago. 

The index for 'Food Articles' group rose by 0.2 per cent to 237.3 from 236.9 for the previous week due to higher prices of bajra (3 per cent), urad and arhar (2 per cent each) and jowar and fruits & vegetables (1 per cent each). However, the prices of maize and condiments & spices (1 per cent each) declined. The annual rate of inflation for ‘Food Articles’ stood at 4.58 per cent for the week ended 30/08/2008. It was 7.08 per cent as on 01/09/2007 i.e. a year ago.

The index for 'Non-Food Articles' group rose by 0.3 per cent to 247.1 from 246.3 for the previous week due to higher prices of cotton seed and raw rubber (2 per cent each) and raw cotton (1 per cent). 

The index for 'Minerals' group rose by 1.4 per cent to 656.0 from 646.7 for the previous week due to higher prices of iron ore (2 per cent).

The index for Fuel, Power, Light and Lubricants group remained unchanged at its previous week's level of 376.2 . 

The index for the major group, Manufactured Products, rose by 0.3 per cent to 207.7 from 207.1 for the previous week. The groups and items for which the index showed variations during the week are as follows:-

The index for 'Food Products' group rose by 1.3 per cent to 215.7 from 213.0 for the previous week due to higher prices of salt (5 per cent), khandsari, sugar and oilcakes (3 per cent each) and groundnut oil (1 per cent). However, the prices of imported edible oil (4 per cent) and gingelly oil (1 per cent) declined.

The index for 'Textiles' group rose by 0.1 per cent to 144.3 from 144.2 for the previous week due to higher prices of tyre cord fabric (14 per cent), mixed fabrics and cotton grey cloth & canvas (7 per cent each) and hessian & sacking bags (2 per cent). However, the prices of synthetic yarn (1 per cent) declined. 

The index for 'Chemicals & Chemical Products' group rose marginally to 223.3 from 223.2 for the previous week due to higher prices of acid (all kinds) (1 per cent). However, the prices of powder/granules other than vitamins (6 per cent) and bopp film (3 per cent) declined.

The index for 'Non-Metallic Mineral Products' group rose by 0.4 per cent to 216.9 from 216.1 for the previous week due to higher prices of cement (1 per cent).

For the week ended 05/07/2008, the final wholesale price index for 'All Commodities’ (Base: 1993-94=100) stood at 239.3 as compared to 238.7 and annual rate of inflation based on final index, calculated on point to point basis, stood at 12.19 per cent as compared to 11.91 per cent reported earlier vide press note dated 18/07/2008.

Banking

The Payment and Settlement Systems Act, 2007 and the Payment and Settlement Systems Regulations, 2008 have been notified and have come into effect from August 12, 2008. The Payment and Settlement Systems Act stipulates that no person other than the Reserve Bank of India (RBI) shall commence or operate a payment system except under and in accordance with an authorisation issued by the RBI under the provision of the Act.

Punjab National Bank, the country’s second largest public sector bank has paid a dividend of Rs 236.91 crore to the government for the financial year 2007-08. The bank has declared 130 per cent dividend for the year 2007-08.

Commerzbank AG is buying Allianz SE’s Dresdner Bank for €9.8 billion ($14.4 billion) in the biggest financial-services takeover in Europe this year, leapfrogging Deutsche Bank AG by customer and branches.

South Indian Co-operative Bank has merged with Saraswat Co-op Bank after receiving an approval from the RBI and Commission of Co-operation and Registrar of Co-operative Societies, Pune. With the merger, the number of branches of Saraswat Bank will increase to 170 from the present 156.

Kolkata-based UCO Bank is likely to go for a follow-on public offer (FPO) of shares by the December-end to raise about Rs 500–600 crore. The bank is waiting for the government’s approval for restructuring its equity capital before going ahead with the FPO.

Insurance

Life Insurance Corporation (LIC) has decided to allow 10,000 agents to collect renewal premium from the policy holders. Agents who have qualified for LIC’s chairman club membership are eligible. The corporation has also decided to allow senior agents to recruit and train new agents.

 

Financial Market

1. Capital Markets

Primary Market  

Eleven banks participated in the mock test carried out by the Bombay Stock Exchange (BSE) for the new initial public offering (IPO) payment facility recently permitted by Securities and Exchange Board of India (SEBI). The first IPO in which the facility called the Application Supported by Blocked Amounts (ASBA) will be used is 20 Microns Limited, which would open on September 08, 2008. This facility allows banks to block IPO application money in the applicant’s bank account till the time of allotment of shares. Only that amount proportionate to the share allotment will be transferred from the account.

Resurgere Mines and Minerals India Ltd closed at 97.6 per cent above its issue price of Rs 270 on its listing day on September 1, 2008 on the National Stock Exchange (NSE). It opened at Rs 285 and touched an intra-day high of Rs 568.9 and a low of Rs 278.2 before closing at Rs 533.55. On the BSE, it closed 94.2 per cent above its issue price. It closed at Rs 524.35 and touched an intra-day high of Rs 562.8 and a low of Rs 272.05.

Secondary Market

A sharp fall in international crude oil price turned the market bullish and triggered a rally on the bourses initially in the week ended Friday, 5 September 2008. However subsequently, the gains were wiped out due to a setback in global equities and domestic political concerns. The market declined in three out of four trading sessions in a holiday-truncated week. The slide in international crude oil prices calmed inflation concerns. The domestic inflation rate rose 12.34 per cent in the year through 23 August 2008, lower than previous week’s 12.40 per cent. The global crude oil prices declined sharply in response to less than expected damage from Hurricane Gustav. The 30-share Bombay Stock Exchange’s Sensitive index (BSE Sensex) lost 80.70 points or 0.55 per cent to 14,483.83 over the week. Small-cap and mid-cap indices nudged slightly higher. The BSE Small-Cap index rose 13.58 points or 0.2 per cent at 6,905.22. The BSE Mid-Cap index advanced 11.43 points or 0.2 per cent to 5,753.72. NSE’s S&P CNX Nifty lost 7.7 points or 0.2 per cent to 4352. The rupee lost ground steadily and the Deftly lost over 2 per cent as a result.

Among the sectoral indices of BSE, banking stocks and public sector undertakings (PSU) outperformed on the back of inflation, which retraced to 12.34 per cent. Over the week, bankex and PSU gained 2.33 per cent and 2.12 per cent, respectively. Metal index lost 4.55 per cent, the highest loser during the week, as steel makers slashed the metal prices in line with correction in metal prices globally.

The SEBI has floated a discussion paper on the possibility of allowing stock exchanges, depositories, clearing corporations, banks and insurance companies to hold up to 15 per cent against the current individual shareholding limit of 5 per cent. These investors may be allowed to hold the higher stake directly or indirectly in stock exchanges.

The average assets under management (AAUMs) of the mutual fund industry saw a spurt in August as money trickled in through fixed maturity plans, after witnessing an erosion in the average assets for two consecutive months on the back of a series of liquidity tightening measures by the Reserve Bank of India (RBI). AAUMs rose by 2.77 per cent, or Rs 14, 686 crore, to Rs 5,44,317 crore from July, indicates data released by the Association of Mutual Funds of India (AMFI). Reliance Mutual Fund continued to retain the top spot, while HDFC Mutual Fund grabbed the second spot by managing to notch a higher AAUM than ICICI Prudential Mutual Fund. UTI Mutual Fund and Birla Sunlife Mutual Fund have bagged the fourth and fifth positions, respectively.

In terms of assets under management, HDFC Mutual Fund propelled to the number two position among fund houses due to huge inflows into its fixed income schemes. HDFC Mutual has overtaken ICICI Prudential, which had retained the runners-up spot for a long time. As late as March this year, HDFC has been behind UTI by around Rs 5,000 crore and lagging ICICI Prudential by almost Rs 10,000 crore.

Derivatives

During the week under review, the derivative market swung sharply up in one session through a 200-point range, and plunged through the rest of the week and ended at the low end. Volumes improved slightly. Volatility and implied volatility remained low. After witnessing wild swings intra-week, the Nifty September future finished marginally lower at 4352.2 points against the previous week’s close of 4370.55, shedding little over 0.4 per cent. However, the premium of Nifty September future over the spot widened to 7 points against its previous week’s 4 points. There has been reasonable open interest (OI) expansion across the index futures and index option spaces. The Bank Nifty and the CNXIT both showed positive returns although they were weak on September 05. Both these sector indices have decent OI and the Bank Nifty holds almost 5 lakh. The futures are trading at some premium to the spot. The Junior is also trading at a large premium to spot but it has unsatisfactory liquidity. The volatility has been low and the VIX is trading on relatively lower at 32. The cumulative foreign institutional investors (FII) positions as a per centage of total gross market position on the derivative segment, as on September 4 has been 37.98 per cent. FIIs resorted to heavy selling on Friday, though they were net buyers during most part of the week. They now hold index futures worth Rs 12,637 crore (Rs 12,906 crore) and stock futures worth Rs 19,077 crore (Rs 16,056 crore). However, their holding on index options stood higher at Rs 22,093 crore (Rs 18,270 crore).

2. Government Securities Market

Primary Market

On September 02, 2008, RBI auctioned 91-day and 182-day Treasury bills (T-bills) for the notified amounts of Rs.5,000 crore (out of which Rs.3,000 crore under MSS) and Rs.2,500 crore (out of which Rs.2,000 crore under MSS), respectively. The cut-off yields for 91-day and 182-day T-bills were 9.02 per cent and 9.08 per cent, respectively.

Secondary Market

Inter bank call rates averaged at 8.87- 9.06 per cent during the week. Bonds rallied for the second week in succession on the back of frenetic purchases by banks for meeting Statutory Liquidity Ratio (SLR) requirements. The government bond yields have dipped sharply due to improved liquidity. The government securities market is seeing huge cash flows due to redemption of bonds in two maturities. This, coupled with the softening of oil, have caused bond yields to drop sharply. The rally came despite the large mop-up of liquidity through the week through T-bills. Liquidity remained tight, which has been evident from the week-end liquidity adjustment facility auction. The recourse to the repurchase window at the auction was to the tune of Rs 18,550 crore even as another Rs 4,500 crore of bonds were due to be redeemed. The liquidity tightness was also evident from the issuance of a series of short tenor certificates of deposit (CD) by some of the large public and private sector banks. SBI associate banks raised three-month CDs at 11.05 per cent. But private sector banks such as Axis Bank raised CD resources at rates as high as 11.42 per cent. The chase for SLR securities pushed up the trade volumes in the market.

The daily trade volume during the week averaged Rs 10,800 crore. In fact, on many days, trade volumes in the debt markets exceeded that of the equity markets. This has been the first time debt volumes were overtaken by equity markets since 2003.

3. Bond Market

With low appetite for debt and volatility in equities, banks are targeting to buy municipal bonds. ICICI Bank and State Bank of India (SBI), which have municipal bonds in their portfolio, are planning to make more such investments considered safe and high return. According to Akash Deep Jyoti, head of corporate & government ratings at Crisil, the municipal bond market in India could cross Rs 5,000 crore in three to five years. Investments in these bonds will fund urban infrastructure across the country. Unlike companies, municipal bodies are almost bankruptcy-proof as their revenue flows and taxes are insulated from inflation and economic upheavals. Indian banks are likely to earn 13-16 per cent on municipal bonds in the longer run.

Corporate bond market is seeing a lot of action after a gap of few months, due to a huge appetite for such debt offerings. With the ongoing issues of Power Finance Corp (PFC) and Indian Oil (IOL) witnessing good investor interest, more companies are planning to tap the market in the first week of September. Divergent trends prevailing in the corporate and government bond markets are propelling corporate bond spreads to historically high levels. In the corporate bond market, a five-year corporate bond is offering investors a spread of close to 200 basis points over and above what a government security of a similar tenure is offering. Across the curve, corporate bonds are offering spreads in the 180-200-bps range over government securities.

During the week under review, 3-development financial institution, two non-banking companies tapped the market by issuance of bonds and non-convertible debentures.

Table 1: Profile of Major Commercial Bond Issues for the Week Ending September 05, 2008.

Sr No

Issuing Company / Rating

Nature of instrument

Coupon in per cent per annum and tenor

Amount in Rs. crore

 

1

 

2

 

3

 

 

 

1

 

2

 

FIs / Banks

HDFC Ltd                  

AAA by Crisil

HDFC Ltd

AAA by Crisil, Icra

Andhra Bank

AA+ by Fitch, Care

 

NBFCs

Cholamandalam DBS Finance Ltd

AA by Icra

Tata Capital Ltd

AA+ by Icra                               

 

Bonds

 

Bonds

 

Lower Tier II Bonds

 

 

NCD

 

NCD

 

 

11.65 per cent for 2 years

 

11.25 per cent for 10 years

 

11 per cent for 10 years

 

 

 

13 per cent and 12.83 per cent for 2 years and 19 months, respectively.

12.58 per cent for 19 months

 

500

 

350

 

300

 

 

 

100

 

50

 

Total

 

 

1300

 

Source: Various Media Sources

 

4. Foreign Exchange Market

Rupee depreciated for the fourth consecutive week on speculation that economic slowdown in the US and Europe will prompt global funds to shun emerging-market assets. The local currency dropped to a 21-month low versus the dollar, sliding in tandem with currencies across Asia , as regional stocks tumbled. The dollar rallied to an 11-month high against the euro as European Central Bank President Jean-Claude Trichet said the economy is “weak” and crude oil fell to a five-month low during the week. The domestic currency has slumped 11.8 per cent this year as equity sales by global investors exceeded their purchases by $7.1 billion. Tight liquidity due to large foreign currency purchases by refineries that pushed down the rupee-dollar exchange rate down to Rs 44.37 per dollar. The depreciation of the rupee was also largely driven by conditions in the Non Deliverable Forward (NDF) markets. NDF markets are mostly hedges in emerging market currencies, including the rupee, though settlements are done in dollars. FIIs are among the largest players in the NDF currency markets. However, trends in the NDF market had little impact on the forward premia, which softened across all tenors. Exporters took forward cover to lock into the current exchange rates. Importers shying away from hedges also hastened the drop in premia. One, three, six and twelve-month premia dropped to 2.16 per cent, (6.58 per cent), 2.43 per cent (4.48 per cent), 2.61 per cent (3.93 per cent) and 2.41 per cent (2.67 per cent) respectively.

Currency Futures

Trade in currency futures on the NSE averaged 39,800 contracts a day during the week, against 70,000 contracts recorded on August 29, i.e., the first day of introduction of this instrument. On September 5, the NSE reported trade of over 37,000 currency futures contracts.

According to SEBI Chairman C B Bhave, SEBI is mulling the introduction of rupee-euro and rupee-yen contracts in currency futures soon as it is in the process of studying the market for both the contracts and would be launched after considering the outcome of the study. He also said the market regulator would be launching interest rate futures within the next five months. The committee, which had looked into currency futures, would be studying the possibility of interest rate futures and would set the norms and guidelines Currently, only rupee-dollar contracts are allowed for trading in currency futures.

On September 02, 2008, SEBI said that it would allow trading in exchange traded interest rate futures by December-January, a move that will help banks and FIIs manage interest rate risks. Initially, these futures contracts would be based on 10-year government bond yield, which should be settled by physical delivery.

5. Commodities Futures Derivatives

Mr. Anupam Mishra, Director, Forward Markets Commission (FMC), said that futures trading in rubber, chana, soya oil and potato would remain suspended till November 30, 2008. In fact, NCDEX had applied to the regulator for re-listing these commodities for trade once the deadline expires on September 07. According to FMC, the four commodities accounted about Rs 15,000 crore a month (Rs 500 crore daily) of the total volume.

After rising steadily for last one year, the prices of critical commodities like edible, crude oils and steel have sharply declined on September 01, 2008, due to rising inflation. While international prices of crude oil at the New York Mercantile Exchange has been traded at $116.57 a barrel, down from all time high of $147.27 a barrel in mid-July, the prices of Palmolein and Soyabean oils in the international market have softens. Both the decline in crude and edible oils is significant to the government’s fight against double digit inflation as domestic prices are impacted by volatility in the international market.

Total aggregate futures trading turnover of the Multi-Commodity Exchange (MCX) and the National Commodity & Derivatives Exchange (NCDEX) has come down by 20 per cent to Rs 4.24 lakh crore during the month of August 2008 from Rs 5.32 lakh crore registered in the previous month. This is mainly due to meltdown in the most globally traded commodities like crude oil and gold during the month.

According to sources, MCX is planning to re-launch futures in aviation turbine fuel (ATF) with a few modifications in the contract specification. The exchange, which launched ATF futures in July, has approached FMC for its approval to the changes it sought in the contract, as it is mandatory for the exchanges to seek FMC approval before making any changes in the running contract. ATF or jet fuel is a specialised type of petroleum-based fuel used to power aircraft. It is generally of a higher quality than fuels used in less critical applications such as heating or road transport. There has been a steady rise in fuel demand and refiners need an assured supply to cater to the growing demand. Airlines are also looking at hedging on long-term contracts with refineries.

MCX has signed a memorandum of understanding with Telecom Equipment Manufacturers Association (TEMA) to use the platform for metal price discovery. The objective of the alliance is to share knowledge about metal commodities with the members of TEMA and to increase their participation on the exchange platform.

NSE & NCDEX promoted power exchange—Power Exchange India (PEX)— is proposed to launch its operations from the first week of October from Mumbai, will offer Internet-based power trading, minimum power trading of 1 mw hour (mwh) and above all power seller will not be entitled for payment of margin.

Indian Energy Exchange (IEX), which completed two months of operations, has recorded a total volume of 251 million units with a trading of 58 MW on day one touching the highest transaction of over 18,000 MW on August 8. The hourly prices were in the range of Rs 6.50 a KW to Rs 8.50 a KW with an average price of Rs 7.50 a KW. The exchange trades day-ahead contracts and has 52 members, including Reliance Energy Trading, Tata Power Trading Company, Tata Power Company, PTC India, JSW Power Trading and state electricity boards of West Bengal, Kerala, Karnataka, Andhra Pradesh, Maharashtra and Himachal Pradesh.

 

Insurance

The Life Insurance Corporation, the public sector giant is going for change in strategy this year. LIC is repositioning some of its plan like Jeevan Anand, Jeevan Tarang and Jeevan Saral. While SBI Life Insurance is planning a massive expansion in tier four towns and is lining up a slew of health insurance plans and micro insurance products. Kotak Life Insurance is aiming for a 100 per cent growth and has decided to focus on its group business and capital guarantee products. At the same time Prudential ICICI is planning to scale up business, while not compromising on service.

 

Corporate Sector

Azim Premji, promoter of Wipro, has bought a 10 per cent stake in food and grocery retailer Subhiksa for about Rs 230 crore. This transaction was done by Premji’s personal investment entity Zash Investment Ltd. The stake was bought from ICICI Ventures, a private equity arm of ICICI Bank. After this transaction, Subhiksa’s promoter will have 59 per cent stake in Chennai-based retailer, followed by ICICI Venture’s 23 per cent.

Suzlon Energy, the world’s fifth largest wind turbine manufacturer, will acquire a 22.5 per cent stake from Portugal-based Martifer SGPS SA in its subsidiary RE Power Systems AG of Germany for €270 million (Rs 1,744 crore).

Kingfisher Airlines, the merged airline operations of Kingfisher Airlines and Deccan Aviation, is planning to raise $400 million through equity, possibly by March 2009.

Retail chain Big Bazaar, plans to open 15 more stores by end-November at an investment of Rs 1,500 – 1,600 crore. With this, Big Bazaar will have 112 stores in pan-India. The stores would be set up in places such as Mysore , Pune, Cuttack , Kolkatta, Chandigarh , Agra , Faridabad , Surat , Nasik , Mumbai, Delhi and Solapur.

Information Technology

Nazara Technologies has launched a game that can be played on the new generation iPhone as well as 3G services phone. The company has announced the launch of its first 2D game based on Mahabharata’s Eklavya, which will be available on J2ME and Brew platforms across all operators’ decks.

 

Telecom

As per the latest report from international media research firm Media Partners Asia, the direct-to-home (DTH) operators are set to capture 72 per cent of the 25 million new subscribers in the next three years through intense competition between the cable and DTH firms. According to the report, of the 25 million new subscribers added till December 2010, there will be about 18 million DTH subscribers, up nearly three times from 6.3 million subscribers in the current month, while a total of 7.2 million digital cable subscribers will be added by the cable firms, a six fold increase from the existing 1.2 million.

GTL Infrastructure, a subsidiary of telecom network major GTL, has raised around Rs 3,500 crore for rolling out an additional 17,000 telecom towers in the country. The Rs 3,500 crore debt was raised from international lenders including Europe’s largest financial development group DEG (a part of KFW Bankengruppe, a company owned by the German government) and Asian Development Bank, Manila .

Telecom subscribers of BSNL can now pay their telephone bills through ATMs of Punjab National Bank. Post-paid mobile subscribers of BSNL can pay their bills in any of the 1,700 ATMs of PNB throughout the country where as for fixed line customers this facility is available in 19 major cities at present.

BSNL has set an ambitious target of bringing almost one fourth of the total cable TV subscribers’ base (82 million cable homes) in the country with the launch of its internet protocol television (IPTV) service in the country. Recently, BSNL has launched its IPTV services in Rajasthan and is planning to bring around 100 cities under this service by the end of the current financial year 2008-09.

The International Chamber of Commerce (ICC), the global arbitration tribunal has asked Tata Communications to pay over $19 million plus interest from May 2006 as damages against the $385 million sum claimed by Reliance Globalcom, a subsidiary of Anil Ambani-led Reliance Communication Ltd (Rcomm), as the ‘loss profit damages claim for sale of capacity’.

 

   

Macroeconomic Indicators

Table 1 : Index Numbers of Industrial Production (1993-94 =100)

Table 2 : Production in Infrastructure Industries (Physical Output Series)

Table 3: Procurment, Offtake and Stock of foodgrains

Table 4: Index Numbers of  Wholesale Prices (1993-94 = 100)

Table 5 : Cost of Living Indices

Table 6 : Budgetary Position of Government of India

Table 7 : Government Borrowing Programmes and Performance

Table 8 : Scheduled Commercial Banks - Business in India  

Table 9 : Money Stock : components and Sources

Table 10 : Reserve Money : Components and Sources

Table 11 : Average Daily Turnover in Call Money Market

Table 12 : Assistance Sanctioned and Disbursed by All-India Financial Institutions

Table 13 : Capital Market

Table 14 : Foreign Trade

Table 15 : India's Overall Balance of Payments

Table 16 : Foreign Investment Inflows  
Table 17 : Foreign Collaboration Approvals (Route-Wise)
Table 18 : Year-Wise (Route-Wise) Actual Inflows of Foreign Direct Investment (FDI/NRI)

Table 19 : NRI Deposits - Outstandings

Table 20 : Foreign Exchange Reserves

Table 21 : Indices REER and NEER of the Indian Rupee

Table 22 : Turnover in Foreign Exchange Market  
Table 23 : India's Template on International Reserves and Foreign Currency Liquidity [As reported under the IMFs special data dissemination standards (SDDS)
Table 24 : Settlement Volume and Netting Factor for Government Securities Transactions Settled at CCIL - Monthly, Quarterly and Annual Basis.
Table 25 : Inter-Catasegory Distribution of All Types of Trade in Government Securities Settled at CCIL (With Market Share in Respective Trade Types) 
Table 26 : Settlement Volume and Netting Factor for Total Forex Transactions Settled at CCIL - Monthly, Quarterly and Annual Basis.
Table 27 : Inter-Category Distribution of Total Foreign Exchange Transactions Settled at CCIL (With Market Share in Respective Trade Types) 

 

Memorandum Items

CSO's Quarterly Estimates of GDP  

GDP at Factor Cost by Economic Activity

India's Overall Balance of Payments: Quarterly

India's Overall Balance of Payments: Annual  

*These statistics and the accompanying review are a product arising from the work undertaken under the joint ICICI research centre.org-EPWRF Data Base Project.

LIST OF WEEKLY THEMES


 

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