Fertilizer availability remained adequate in October with urea production exceeding targets and imports supplementing supply.
Estimated national production and supply in October 2011 showed urea production exceeding the monthly target with satisfactory availability across States, while DAP production lagged the target; imports of urea, DAP, MAP, TSP, NPK and MOP supplemented domestic supply and overall availability for decontrolled fertilizers was adequate to meet State demand.

GDP growth rate shows moderation in the quarter, led by services while mining and manufacturing slowed.
Estimates of Gross Domestic Product for Q2 (July-September) 2011-12 report GDP at factor cost at constant (2004-05) prices of Rs. 1,227,254 crore with year on year growth of 6.9%, driven by electricity, trade/services and finance/business services, while mining contracted and manufacturing growth slowed. At current prices Q2 GDP is Rs. 1,955,880 crore. The release provides sectoral indicators (IIP, construction, transport, banking) and the expenditure composition at market prices-private consumption dominant, government consumption stable, and gross fixed capital formation substantial-alongside WPI and CPI IW inflation measures and revisions from updated IIP base.

RTI exemptions limit disclosure and require third party notice; penalties and disciplinary action follow for non compliance.
Requests may be refused under the Right to Information Act if covered by exemption provisions and third party information is disclosed only after prior notice; Information Commissions may impose penalties under Section 20 and direct disciplinary proceedings for failures or delays, and administrative returns report numbers and percentages of requests received, rejected, and penalties or disciplinary actions taken.

Patent examiner recruitment increases examination capacity to reduce backlog and accelerate patent application processing nationwide for timely decisions.
Recruitment of 248 new patent examiners has been completed to expand examination capacity, enabling examination of a large number of additional patent applications annually and assisting in reducing the existing backlog as disclosed by the Minister of State for Commerce and Industry.

Financial assistance approval mobilizes development of industrial cities along the Delhi-Mumbai corridor, subject to state land acquisition progress.
The Cabinet has sanctioned financial assistance to support development of new industrial cities along the Delhi-Mumbai Industrial Corridor and additional funding for project development activities by the Corridor development corporation; master plans for the new cities have been approved except for Uttar Pradesh, and State Governments have initiated land acquisition processes for the corridor projects except in Uttar Pradesh.

FDI conditionality exemptions: construction development conditions waived for education and old-age homes, expanding automatic route access.
The policy confirms FDI up to 100% under the automatic route in construction development is subject to conditionalities such as minimum area, minimum capitalization and a lock-in period, but those conditionalities are exempted for hotels and tourism, hospitals, SEZs and NRIs. The Government has extended that exemption to the Education Sector and Old age Homes, removing the general conditionalities (including the lock-in period) for these categories to facilitate infrastructure development.

Industrial growth moderation: policy measures and a national manufacturing policy aimed at revitalising investment and competitiveness.
Moderation in industrial output has been observed from June 2011, with declines and decelerations across key sectors and an overall slowdown in the index of industrial production. Identified contributory factors include weaker consumption expenditure, underperformance in construction, higher interest rates increasing the cost of capital, and global economic uncertainty, without quantification of each factor's contribution. The Government has promoted industrial investment, improved business environment measures, infrastructure development via public-private initiatives, and skills development, and announced the National Manufacturing Policy to reduce compliance burden and enhance manufacturing's share of GDP and employment.

Industrial production slowdown prompts policy push to boost investment, ease compliance through self regulation and enhance competitiveness.
Measured by the Index of Industrial Production, industrial growth moderated in August 2011 across multiple categories. The government responded with policy measures to promote industrial and foreign investment, improve the business environment, develop infrastructure through public private initiatives, invest in industry skills, and announced a National Manufacturing Policy to reduce compliance burdens through self regulation and boost competitiveness.

VAT exemption sought for central police canteens; several states have granted exemptions following central requests.
Seeking exemption from state-level Value Added Tax (VAT) on Central Police Canteen (CPC) sales is the operative issue. The Welfare And Rehabilitation Board and senior central officials have requested State and Union Territory governments to exempt VAT on CPC sales, and several States/UTs have agreed to exempt such sales, reflecting partial intergovernmental acceptance of the administrative tax-relief request.

Crop development schemes boosted foodgrain production and established centrally sponsored missions with targeted production and soil health measures.
Implementation of crop development and allied schemes during the 11th Plan corresponded with a measurable rise in national foodgrain outputs, increasing from 208.60 million tonnes at the end of the 10th Plan to 241.56 million tonnes in 2010-11, with quantified gains in wheat, pulses and rice. Major centrally sponsored interventions cited include the National Food Security Mission with Plan outlay and production targets, the National Project on Management of Soil Health & Fertility promoting soil test based balanced fertilizer use, and the National e Governance Plan in Agriculture; components are to continue into the 12th Plan.

FDI in multi brand retail allowed as majority ownership via government route, subject to city, investment and local sourcing conditions.
The FDI policy allows 51% foreign equity in multi brand retail via the government approval route, limited to cities above one million population, requires a minimum investment with at least half for back end infrastructure, mandates local sourcing from Indian micro and small enterprises, and affirms state prerogative in implementation with competition law safeguards against anti competitive practices.

FDI in multi-brand retail permitted subject to government approval with minimum investment, backend infrastructure and local sourcing conditions.
The Government permits FDI in Multi Brand Retail in a calibrated manner with government approval, subject to a minimum investment threshold, requirement that a specified share of FDI be invested in backend infrastructure (processing, distribution, logistics, storage and related facilities excluding land costs), self-certification and auditor-verified accounts, retail location restrictions to specified large cities and surrounding areas, allowance for unbranded fresh agricultural produce, a government first right to procure, and a mandatory local sourcing obligation requiring procurement from small enterprises defined by a capped plant and machinery valuation.

Wholesale price inflation for primary articles eased, signalling moderation in commodity price pressures while fuel and power inflation remained elevated.
Wholesale Price Index for the week ended 12 November 2011 shows Primary Articles index declined to 201.9 and its point to point annual inflation eased to 9.08 percent from 10.39 percent; Food and Non Food Articles fell while Minerals rose slightly on crude petroleum. Fuel & Power index and its annual inflation remained unchanged at prior levels, with annexures detailing itemised week over week, build up and year on year rates and a six week trend for key subgroups.

Recruitment slowdown in IT sector signals reduced hiring amid recession, with implications for employment growth and SEZ prospects.
Marked slowdown in recruitment affected the IT/ITES industry during FY 2009-10 and toward the end of FY 2008-09 due to recessionary conditions; industry headcount rose over three years with varying annual net job additions, state-level employment data are not maintained though Andhra Pradesh reported recruitment growth, and upcoming IT/ITES Special Economic Zones are expected to generate further employment.

ECB policy: all-in-cost ceiling raised and rupee-focused ECB proceeds must be repatriated immediately to rupee accounts.
Modification to External Commercial Borrowing policy raises the all-in-cost ceiling for certain maturities using the currency-specific six-month LIBOR benchmark and requires that ECB proceeds raised abroad for rupee expenditure be brought immediately into rupee accounts with authorised dealer Category I banks, while proceeds for foreign currency expenditure may remain offshore; prohibitions on using rupee funds for capital markets, real estate or inter-corporate lending remain in force.

Weavers' Relief Package expands credit access and subsidies to individual handloom weavers, enabling collateral-free loans and interest support.
The package extends loan waiver coverage to individual handloom weavers and implements a sixfold strategy: a Weavers' Credit Card for collateral-free loans, an interest subsidy to lower borrowing costs, margin money assistance to leverage lending, credit guarantee coverage for bank loans, a price subsidy on yarn procured through designated agencies, and enhanced freight reimbursement to improve yarn availability and affordability across handloom clusters.

Wholesale price inflation: primary articles eased weekly while fuel and power rose, altering annual inflation trends.
Wholesale Price Index movements for the week ended 5 November 2011 show Primary Articles declining week on week with lower Food and Non Food Article prices and a reduced point to point annual inflation rate, while Fuel & Power rose due to higher prices for aviation turbine fuel, furnace oil, naphtha, light diesel oil and petrol, producing an increased point to point annual inflation rate. Annexures supply detailed WPI levels, week over week changes, year over year rates and six week trends for major groups and selected items.

Wholesale price inflation rose, driven by primary articles, fuel and manufactured goods, indicating sustained inflationary pressure.
The Wholesale Price Index (base 2004-05=100) rose by 0.6 percent to 156.8 in October 2011, producing annual WPI inflation of 9.73 percent and a financial-year build-up of 4.88 percent. Primary Articles, Fuel & Power and Manufactured Products all contributed to the increase, with Food Articles and Minerals recording notable month-on-month rises and mixed movements across Non-Food Articles, fibres, oilseeds and industrial sub-groups; annexures provide weights and detailed month-on-month and year-on-year trends.

Wholesale Price Index: primary commodity inflation eased while fuel and power inflation remained unchanged this week.
Primary Articles showed a marginal weekly decline with an eased point to point annual inflation rate; Food Articles fell modestly while Non Food Articles rose slightly due to specific commodity price movements. Fuel & Power remained unchanged in both its weekly index and point to point annual inflation. Annexed tables provide build up inflation from the financial year start, year on year changes for major groups and a six week trend for selected items to monitor price momentum.

Foreign direct investment policy change: greenfield projects allowed automatic entry, existing companies require government approval.
The amendment permits FDI up to 100% for greenfield pharmaceutical projects under the automatic route, and permits FDI up to 100% for investments in existing pharmaceutical companies under the government approval route; the change takes immediate effect and will be reviewed after six months.