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.

National Manufacturing Policy launches NIMZs, streamlined clearances, job loss insurance, green tech funding and a three tier skilling push.
The Policy creates National Investment and Manufacturing Zones (NIMZs) managed by Special Purpose Vehicles to provide master planned, greenfield industrial townships with streamlined, web enabled clearances, timelines with deemed approvals, and a defined exit mechanism incorporating an insurance based Job Loss Policy, sinking funds and procedures for asset redeployment while protecting worker entitlements; it also establishes a Technology Acquisition and Development Fund for green technologies, a Green Manufacturing Committee for eligibility and certification, and a three tier skill development framework with SPV coordination and incentives for SMEs and government procurement with local value addition.

Wholesale Price Index signals divergent weekly moves: primary articles up, fuel and power down; provisional inflation trends noted.
Wholesale Price Index review for the week ended 22 October 2011 reports marginal week on week rise in Primary Articles and a small decline in Fuel & Power, with provisional point to point annual inflation rates given for both major groups. Food Articles rose due to higher prices of fish, poultry, egg and certain cereals while Non Food Articles fell on reductions in flowers, raw silk and raw jute. Detailed annexures provide weights, week over week changes, build up from end March and six week trends for key commodities.

Trade balance concerns: imports rose faster than exports, enlarging the merchandise deficit and highlighting heightened import dependence.
India's merchandise trade for September 2011 and April-September 2011-12 recorded substantial year on year increases in both exports and imports, with exports growing at higher percentage rates while oil and non oil imports also rose sharply; consequently, the cumulative merchandise trade deficit for April-September 2011-12 widened compared with the same period in 2010-11.

FDI limit in single-brand retail under consideration, potentially enabling greater foreign investment and enhanced bilateral trade cooperation.
Consideration of raising the FDI limit in single-brand retail indicates a move to liberalize foreign ownership in that sector. The government also emphasizes SME liberalization to permit foreign investment, and a Memorandum of Understanding with Italy to promote cooperation across multiple sectors including design, textiles, leather, pharmaceuticals, manufacturing, ICT and higher education to foster SME modernization and bilateral business interactions.

FDI instrument eligibility: deletion of restrictive paragraph removes prohibition on instruments with in built options, altering foreign investment compliance.
Paragraph 3.3.2.1 of Circular 2 of 2011, which had limited eligible FDI instruments to equity shares and fully, compulsorily and mandatorily convertible instruments with no in built options and treated instruments with in built options or third party sold options as losing equity character and falling under ECB guidelines, is deleted; the corrected Circular is available from the Department of Industrial Policy and Promotion.

Core industries index shows moderated growth, driven by mixed sectoral performance and provisional data revisions.
The Index of Eight Core Industries (weight 37.90% in IIP) registered moderated growth in September 2011 and lower cumulative April-September 2011-12 growth compared with the prior year; coal and natural gas contracted while electricity and steel expanded, with refinery products, crude oil, fertilizers and cement showing varied modest changes; data are provisional and revised where updated source data were available.

Wholesale Price Index shows mixed primary commodity inflation while fuel and power remain flat, highlighting sectoral inflation pressures.
Wholesale Price Index movements for the week ending 15 October 2011 report a slight rise in Primary Articles with mixed intra group shifts in Food Articles, Non Food Articles and Minerals, while Fuel & Power remained unchanged weekly; annexures provide weekly changes, build up from financial year start and year on year rates for major groups and key subgroups to support monitoring of sectoral inflation pressures.

Dividend declaration signals enhanced shareholder return after equity subdivision and bonus issue, following record trade turnover.
The company declared a 25% final dividend payable on its enhanced post-bonus and split equity, following shareholder approval at the Annual General Meeting. During the fiscal year the company subdivided its equity shares to a lower face value and issued bonus shares, thereby changing the share capital basis for the dividend. The corporate actions were presented alongside the company's highest recorded annual turnover and a reported net profit after tax.

Dam safety project approved to rehabilitate selected dams and strengthen dam safety organisations for reduced failure risk.
Approval was granted for the Dam Rehabilitation and Improvement Project (DRIP), combining multilateral, state and central financing to rehabilitate 223 selected dams in four states and to fund institutional strengthening of Dam Safety Organisations and the national dam-safety framework. The project aims to improve structural and operational performance, reduce the risk of failure, and protect reservoir-dependent urban, rural and downstream communities by pairing capital rehabilitation with governance and capacity-building measures.

Minimum support price increases approved for rabi crops, setting new procurement price floors for major cereals and oilseeds.
Minimum Support Price for Rabi 2011-12 (marketing season 2012-13) has been approved: wheat fixed at Rs.1285 per quintal; barley at Rs.980 per quintal; gram and masur at Rs.2800 per quintal each; and rapeseed/mustard and safflower at Rs.2500 per quintal each, establishing the procurement price floor for these rabi crops.

Infrastructure Development Scheme expansion for Mega Food Parks to build integrated food processing hubs and strengthen supply chains.
Expansion of the Infrastructure Development Scheme to establish additional Mega Food Parks provides integrated common facility infrastructure across the agricultural value chain in a hub and spoke model, including farm-proximate collection and primary processing centres, cold chain and refrigerated logistics. Selection follows Expressions of Interest under scheme guidelines and projects proceed to implementation according to a prescribed timeline from initial funding tranches, with the scheme structured to leverage private investment alongside Government grants to reduce wastage, promote value addition and increase farmer incomes.

National Manufacturing Policy promotes industrial infrastructure and regulatory simplification to boost manufacturing and create large-scale employment.
The National Manufacturing Policy establishes objectives to increase manufacturing's GDP share and job creation by promoting industrial infrastructure, streamlined regulations, technology and skill development, and the creation of National Investment and Manufacturing Zones (NIMZs) with advanced infrastructure, zoning, clean technologies and supporting social services; it emphasizes compliance with labour and environmental laws, sector- and location-neutral interventions, incentives for green technology, and no unit-specific subsidies to create an enabling environment for private investment.

Wholesale price inflation: Primary Articles and Fuel & Power show small weekly rises and sustained high annual inflation.
Wholesale Price Index for week ended 8 October 2011: Primary Articles rose 0.2% to 203.8 with annual inflation 11.18%; Food Articles up 0.4% due to higher prices in poultry, bajra, inland fish, masur, fruits & vegetables and spices; Non Food Articles down 0.4% led by soyabean, raw silk and oilseeds. Fuel & Power rose 0.1% to 170.1 with annual inflation 15.17%, driven by bitumen and furnace oil. Annexures give item level indices, build up since March and six week trends.