External debt composition shifted as NRI deposits and short-term borrowings rose, reducing reserve cover and concessional share.
India's total external debt stock at end-September 2012 was US$ 365.3 billion, up 5.8% from end-March 2012, driven by higher NRI deposits, short-term debt and commercial borrowings; long-term debt stood at US$ 280.8 billion, short-term debt at US$ 84.5 billion (23.1% of total), commercial borrowings had the largest component share, sovereign debt was US$ 81.5 billion, concessional debt ratio declined, and reserves covered 80.7% of external debt while the short-term debt to reserves ratio rose.

Monetary policy tightening continues with a repo rate increase and regulatory reforms to anchor inflation and support financial stability.
The Reserve Bank maintains an anti inflationary monetary stance while acknowledging growth risks, announcing a calibrated increase in the policy repo rate with corresponding adjustments to reverse repo and MSF rates, retention of the CRR and bank rate, and guidance tying future actions to evolving macroeconomic conditions. Concurrently, it advances regulatory and developmental reforms: deregulation of savings deposit rates subject to uniformity and non discrimination conditions, permission for banks to open branches in specified Tier 2 centres under reporting, creation of NBFC MFI category, and issuance of draft Basel III guidelines alongside market deepening measures.

Current account deficit widens as trade shortfall outpaces invisibles, despite stronger equity inflows supporting BoP stability.
The current account deficit widened in Q2 July-September 2012 as merchandise exports declined more steeply than imports, increasing the trade deficit; net invisibles-although supported by higher services receipts and moderate remittances-financed a smaller proportion of the trade shortfall because primary and secondary income flows were relatively smaller, raising the CAD to US$ 22.3 billion (about 5.4% of GDP). Financial account inflows improved with stronger FDI and portfolio flows which financed a large share of the CAD, yet reserves recorded a marginal drawdown on a BoP basis.

Treasury bill auction calendar announced, scheduled issuances across tenors with flexibility to modify timing and amounts.
Notification sets a Treasury bill auction calendar for the quarter ending March 2013, specifying scheduled weekly auctions for 91 day, 182 day and 364 day tenors with aggregated notified issuance amounts. The Government of India and the Reserve Bank of India retain flexibility to modify amounts and timing based on cash requirements and market conditions, and auctions will follow the terms of General Notification No. F2(12)-W&M/97, as amended.

Fiscal consolidation urged to reduce deficits; resource augmentation and expenditure control alongside Direct Benefit Transfer adoption.
Fiscal consolidation is the central policy objective: contain the fiscal deficit by augmenting resources and controlling expenditure while containing the Current Account Deficit through measures such as restraining gold imports. States are commended for lower fiscal deficits and a revenue surplus. Concurrently, adoption of the Direct Benefit Transfer platform is urged to improve subsidy delivery and targeting; initial phases will exclude petroleum, food and fertilizer subsidies and focus on schemes amenable to direct transfers.

Foreign direct investment approvals shape sectoral entry; 12 proposals approved and one recommended to higher authority.
The Central Government, on FIPB recommendations, approved multiple FDI proposals across sectors through equity infusions, share transfers, acquisitions and post-facto regularisations, deferred several joint ventures and downstream investment proposals for further scrutiny, rejected specific proposals for non-compliance with capitalization or procedural requirements, withdrew one agenda item, and recommended one large-value proposal to the Cabinet Committee on Economic Affairs for consideration.

Tax anti evasion and information exchange measures strengthened to curb undeclared cross border assets and improve compliance.
The document details multi sector reforms to stabilise growth, including capital market deepening through electronic IPO distribution, SEBI regulatory expansions, mutual fund distribution and expense reforms, enhanced bond market infrastructure, banking sector prudential and inclusion measures such as Aadhaar linked benefit transfers and Kisan Credit Card upgrades, strengthened tax administration and anti evasion measures with expanded information exchange and prosecution powers, and fiscal management actions comprising austerity measures, e procurement and targeted subsidy transfer pilots.

Government securities auction: sale of dated stocks via uniform price and yield-based auctions with non-competitive allocation.
Sale of dated central government securities is announced via public auctions using the uniform price method for re-issues and a yield based auction for a new long-dated stock. Up to five percent of each notified amount is reserved under the Non-Competitive Bidding Facility for eligible individuals and institutions. Bids must be submitted electronically on the Reserve Bank of India Core Banking Solution (E-Kuber) within prescribed windows for non-competitive and competitive bids; allotment results and payment occur on specified settlement dates, and the stocks are eligible for When Issued trading per RBI guidelines.

Government security re-issue auction: uniform-price sale with non-competitive allotment and scheduled interest payments and when-issued trading eligibility.
Notification prescribes reissue of 8.20 per cent Government Stock, 2025 via a uniform price auction conducted by the Reserve Bank of India on the specified date, with up to five percent allotted to eligible non-competitive bidders; bids to be submitted electronically on the RBI E-Kuber system. The Stock bears interest from the original issue date, pays coupons half-yearly on scheduled dates, is repayable at par at maturity, and is eligible for when-issued trading under RBI guidelines.

Government stock auction: uniform price sale with non-competitive allotment, when issued trading and semiannual interest rules.
Notification prescribes sale of Government Stock by a uniform price auction through the Reserve Bank of India's Mumbai Office via the E Kuber system, with specified electronic bid windows for competitive and non-competitive bidders; up to 5% reserved for non-competitive allotment. The Stock has an eight year tenor repayable at par, payment on re issue must include accrued interest from original issue to day before payment, interest accrues at the stated annual rate and is paid semiannually, and the Stock is eligible for when issued trading.

Government securities auction: long term stock offered by uniform price auction with coupon set at cut off yield.
Government issuance of long term marketable debt by auction: a thirty year Government Stock will be offered by a yield based uniform price auction through the central bank's electronic bidding system, with a reserved portion for eligible non competitive bidders, coupon set at the auction cut off yield payable semi annually, eligibility for when issued trading, and payment and settlement governed by published auction results and the general notification terms.

Qualified Foreign Investors: PAN via Form 49AA required; QDPs must withhold TDS, DTAA rates apply if documented.
Qualified Foreign Investors must obtain PAN via Form 49AA with specified KYC and attestation; PAN enables claiming DTAA rates for TDS, while absence of PAN triggers higher TDS. Qualified Depository Participants are the single tax contact for QFIs, required to withhold and deposit TDS (computed on settlement basis), may set off current-year losses available at time of credit (and across STT covered securities), but remain liable for any shortfall, interest or penalty if treaty benefits are later disallowed; QFIs may file returns to claim refunds and carry forward losses.

Advance tax collections show year-to-date growth, driven by corporate and personal income tax increases in the current financial year.
Advance tax collections to 20 December 2012 recorded a month-to-date increase of 10.44% and a financial year-to-date increase of 7.52% versus the corresponding prior periods, with corporation tax showing positive growth and personal income tax showing higher growth, reflecting differential performance across major direct tax heads.

Corporate governance amendments tighten director duties, auditor accountability and make CSR spending mandatory under new companies law.
Amendments refine corporate governance and financial reporting: expand and clarify key managerial personnel; tighten promoter and private placement definitions to curb circumvention; strengthen auditor accountability by narrowing regulator jurisdiction to chartered accountants, linking penalties to fees and limiting partner liability to those involved in fraud; adjust auditor appointment and rotation rules; and make Corporate Social Responsibility spending mandatory by removing qualifying language.

Foreign investment limits in asset reconstruction companies raised to a combined cap, subject to sponsor concentration and FII share restrictions.
The Government raised the ceiling for FDI in Asset Reconstruction Companies from 49% to 74%, subject to FDI entry route conditions and sectoral caps, and imposed a sponsor cap preventing any sponsor holding more than 50% of an ARC either directly or via an FII. The 74% limit is a combined FDI and FII cap; FIIs may invest in ARCs (individual FII shareholding capped at 10% of paid-up capital) and FII investment in Security Receipts may also be increased subject to corporate bond limits and sectoral caps. RBI and SEBI will notify implementing rules.

RBI regulatory powers strengthened: enhanced approval for acquisitions, inspection of associates, and supersession of bank boards.
The Bill strengthens Reserve Bank regulatory authority by requiring prior RBI approval for acquisitions of five percent or more in banks, empowering RBI to impose conditions, collect information and inspect associate enterprises, and to supersede bank boards and appoint administrators. It mandates licensing for primary cooperative societies to do banking, allows special audits of cooperative banks, enables nationalised banks to issue preference, bonus and rights shares and vary authorised capital without the prior statutory ceiling, and establishes a Depositor Education and Awareness Fund from inoperative accounts to promote depositors' interests.

FDI liberalisation expands sectoral investment caps and aims to stimulate infrastructure and manufacturing growth.
Measures focus on export support, implementation of the National Manufacturing Policy including NIMZs, revisions to SEZ policy with streamlined environmental clearance and delegation to state pollution control officials, liberalisation of foreign direct investment across key sectors to stimulate investment, and a Cabinet-level infrastructure committee to remove regulatory bottlenecks while industry bodies engage states on manufacturing issues.

Microinsurance expansion increases rural insurance access and supports financial inclusion through public insurers' outreach to lower tier towns.
Public Sector General Insurance Companies will extend presence into lower tier towns to reach rural markets and market microinsurance products, with the objective of spreading insurance advantages to rural populations and advancing financial inclusion. Separately, the Government operates the Rashtriya Swasthya Bima Yojana, a smart card cashless health insurance scheme providing annual family floater cover to identified unorganised sector beneficiaries and pursuing phased extension to unorganised workers.

Five pronged anti black money strategy emphasizes international exchange, legislative reform and institutional enforcement capacities.
A coordinated regulatory initiative seeks recovery of illicit foreign funds via a five-pronged strategy: international cooperation and information exchange; strengthened legislative measures and treaty amendments; creation of specialized institutions and information units; development of operational systems and manpower policy; and continuous training. Enforcement is hindered by lack of official estimates of assets abroad, limited identity information for account holders, and treaty prohibitions on fishing expeditions, while domestic tax administration pursues scrutiny, searches, penalties, prosecutions and IT driven information collation.

Aayakar Seva Kendras established to provide taxpayer services, further centres to follow on field recommendations.
Aayakar Seva Kendras (Income Tax Service Centres) have been instituted as administrative facilities to assist income taxpayers, with fifteen centres in 2010-11, sixty in 2011-12 and fifty-seven in 2012-13, including fifteen in Maharashtra; further establishments will be decided after recommendations from the field formation.