Index of Eight Core Industries shows combined index 154.5 in August 2013, up 3.7% year-on-year.
The Index of Eight Core Industries (weight 37.90% in IIP) stood at 154.5 in August 2013, up 3.7% year on year. Sectoral data show positive August growth in electricity, coal, cement, refinery products and steel, while crude oil moderated and natural gas declined; cumulative April-August 2013-14 figures show a marked cumulative decline in natural gas and moderation in crude oil. Data are provisional and revised where prior year figures were updated.

Bilateral trade expansion between India and Mozambique driven by credit support and energy-sector investment to deepen economic ties.
India and Mozambique are advancing bilateral economic engagement through trade diversification, Lines of Credit, grants, technical training and scholarships to support development. Indian companies have acquired stakes in Mozambican coal and natural gas fields and plan downstream industrial investments, while ministerial-level meetings and joint promotional sessions are being used to attract further investment and operationalise deeper commercial ties.

Central Pay Commission constitution approved; recommendations expected after stakeholder consultation and subsequent implementation.
Approval is announced for the Seventh Central Pay Commission, to be constituted with a Chairperson and members and to operate under terms of reference finalised after stakeholder consultation. The Commission is expected to prepare and submit recommendations within about two years, and, based on prior implementation intervals and the projected timeframe, its recommendations are likely to be implemented with effect from 1st January, 2016.

Procurement cooperation enables cross border MoUs and institutional facilitation for sourcing between Indian and Chinese companies.
A government facilitated procurement MoU mechanism brought Indian and Chinese companies together at a bilateral matchmaking symposium where sectoral buyers and suppliers conducted scheduled B2B meetings to reach memoranda of understanding for procurement across minerals, textiles, agro products and industrial inputs; the initiative relied on intergovernmental coordination, a designated local co organiser, and a delegation led, replicable matchmaking format to promote exports.

Effective VAT rate reduction for specified works contracts follows revised labour and services percentage allocation, lowering tax liability.
Amendment to Rule 3(2) increases prescribed labour, services and similar percentages for certain works contract activities where such charges are not ascertainable or supported, so that applying the higher percentages reduces the taxable works contract turnover and thereby lowers the effective VAT burden when the percentage basis is relied on; specified activities affected include book-binding, textile processing (materials supplied by contractee), electroplating and tyre re-treading, and the notice supplies the formula linking the prescribed works contract rate to the effective DVAT rate under the percentage method.

Regulatory simplification for pharma sought to expedite approvals and enable Indian manufacturers to establish production collaborations in Russia.
Discussion centered on promoting bilateral sectoral collaboration and investment facilitation, endorsing a framework to fast-track selected high tech projects under ministerial supervision and expanding cooperation in pharmaceuticals, fertilizers and services. Emphasis was placed on Regulatory simplification for pharmaceutical approvals-addressing delays, specialist shortages, backlog and transparency deficits-to enable Indian firms to obtain market access and establish manufacturing bases. Fertilizer joint ventures for phosphate and potash and reciprocal urea investment opportunities under revised policy were also highlighted.

Dearness allowance increase raises DA/DR to ninety percent of basic pay, effective from the specified implementation date.
An additional installment of dearness allowance for Central Government employees and dearness relief for pensioners was approved effective 1 July 2013 as a 10 per cent increase over the prior rate, raising DA/DR to 90 per cent of basic pay/pension, implemented in cash and based on the accepted pay commission formula.

Exemption for educational services: auxiliary and institution-supplied services are not subject to service tax under the negative list and notification.
Levy of service tax on services connected with education is precluded by the negative list and by a government exemption. The exemption notification defines auxiliary educational services - outsourced activities ordinarily carried out by institutions, including admission services, examinations, catering under government mid-day meal schemes and student transportation - and exempts such services supplied to educational institutions in respect of exempt education, with examples including transport, hostels, housekeeping, security and canteen services.

Wholesale Price Inflation rises as food and fuel components push the WPI higher, with mixed manufactured goods movements.
The wholesale price index (WPI, base 2004-05=100) rose to a provisional 177.5 in August 2013, with annual inflation at 6.10%. Primary Articles, Fuel & Power, and Manufactured Products showed divergent month on month movements: Primary Articles increased largely due to food inflation; Fuel & Power increased on higher prices for fuels including aviation turbine fuel, diesel, kerosene, LPG and petrol; Manufactured Products edged down overall with mixed subgroup performance. Annexures provide detailed indices, year on year rates and six month trends for major groups and selected commodities.

Media cooperation between India and China to develop a roadmap for exchanges, co-productions and broadcasting digitisation.
India and China agreed to institutionalise bilateral media cooperation for the 2014 "Year of Friendly Exchanges" by developing a roadmap of projects to promote high-level media exchanges, to be considered by the bilateral Working Group. Cooperation areas include capacity building, film co-productions, broadcasting digitisation, festival participation, and exchanges on media strategy, policy, innovation and public broadcasting involvement.

Abuse of dominance triggers CCI probe into exclusive supply tie ins and refusal to deal, alleging adverse competition effects.
CCI ordered investigation into ACI entities on information alleging abuse of dominance via exclusive supply conditions, a tie-in arrangement and refusal to deal, which prima facie may have an appreciable adverse effect on competition; the Director General is directed to conduct an independent investigation within the prescribed period and the order is not a final determination on merits.

Consumer Price Index shows annual inflation for August, with urban inflation above rural and notable food inflation.
Release of monthly Consumer Price Index (CPI) on Base 2010=100 with provisional point to point annual inflation rates for August 2013 for combined, rural and urban series, plus provisional 'food and beverages' inflation and finalised CPI inflation figures for July 2013 for comparison.

Index of Industrial Production indicates year on year industrial growth with divergent sectoral and use based performance.
Release of monthly Quick Estimates of the Index of Industrial Production for July 2013 reporting overall year on year industrial growth of 2.6%. The Index comprises Mining, Manufacturing and Electricity; Mining contracted while Manufacturing and Electricity expanded, with sectoral monthly growth rates provided. The statement also reports use based classification movements showing positive growth in Basic Goods, Capital Goods, Intermediate Goods and Consumer Non Durables, and negative growth in Consumer Durables.

Advance tax payment: designated bank branches open on weekend to accept payments, with an additional weekday allowed.
Payment of quarterly advance tax is required by 15 September 2013; all designated branches of authorised banks will operate on 14-15 September to accept such payments. Taxpayers liable to pay advance tax must make payments at these authorised branches. Taxpayers unable to pay during the weekend openings are permitted to make the payment on 16 September 2013 at the authorised collection points.

Investigation under Competition Act initiated into alleged abuse of dominance by public authority, triggering Director General inquiry.
The Commission ordered an investigation under Section 26(1) of the Competition Act into alleged contraventions of Section 4 by DDA based on an informant's claim that flats were misrepresented as complete despite full payments and that scheme clauses were one-sided; the Commission found a prima facie case and directed the Director General to investigate and report within sixty days.

Investment Promotion: India and Japan commit to an Action Plan to deepen bilateral investment facilitation and infrastructure cooperation.
The Ministers committed to formulate an Action Plan to promote two way investments based on three pillars: India Japan business partnership; cooperation with central and state governments on investment promotion and facilitation; and improvement of the business environment, and agreed to review the Action Plan annually. They also endorsed institutional measures including the Manufacturing Industry Promotion Board, a Japan Help Desk in DeitY, and a Joint Working Group for IT and electronics, and supported infrastructure projects such as the Delhi-Mumbai and Chennai-Bengaluru Industrial Corridors to attract foreign direct investment.

Aadhaar linkage requirement: consumers must link Aadhaar to bank and LPG accounts to receive LPG cash subsidy after grace period.
The Direct Benefit Transfer for LPG (DBTL) will be rolled out in phases to cover 289 districts; cash subsidy will be transferred directly into bank accounts and is conditioned on linking the consumer's Aadhaar number to both the LPG consumer number and the bank account. A three month grace period from each launch allows continued subsidized cylinder purchases while linkage occurs; after the grace period consumers must pay market price and will receive subsidy only upon completing Aadhaar and bank linkages. Consumers not seeking subsidy need not provide Aadhaar.

Trade balance narrows as exports rise and crude oil imports increase while non oil imports remain flat.
Provisional August 2013 trade statistics indicate exports rose year on year and cumulative April-August exports grew modestly in dollar terms and more strongly in rupee terms, while imports were slightly down in dollar terms for August but up cumulatively; the April-August trade deficit narrowed. Crude oil imports increased year on year both for August and cumulatively, whereas non oil imports fell in August and were nearly unchanged cumulatively.

Minimum assured returns option in pension law lets subscribers choose guaranteed return schemes while strengthening regulatory oversight.
The Bill establishes a statutory Pension Fund Regulatory and Development Authority empowered to regulate the New Pension System, to notify schemes providing minimum assured returns which subscribers may opt into, to prescribe rules for permitted withdrawals from individual pension accounts, to set foreign investment parameters linked to the insurance sector threshold, to require at least one public sector pension fund manager, and to constitute a Pension Advisory Committee to advise on regulations.

Foreign investment approval: complete acquisition of an Indian pharmaceutical company authorised, enabling inbound capital and continuity of operations.
Approval was granted for a US pharmaceutical group to acquire 100 percent of the fully paid equity of an Indian pharmaceutical company, authorising the change in ownership and resulting in significant foreign investment; the acquirer already operates in India through subsidiaries and the proposal proceeded through the prescribed governmental clearance route.