Index of Eight Core Industries shows 2.3% growth in April 2013; crude oil, natural gas and fertilizers declined.
The Index of Eight Core Industries (weight 37.90% in the IIP) stood at 152.2 in April 2013 with 2.3% growth; declines in Crude Oil, Natural Gas and Fertilizers were the main factors reducing aggregate growth. Sectoral April 2013 growth rates: Coal 3.1%, Crude Oil -1.2%, Natural Gas -17.4%, Refinery Products 5.6%, Fertilizers -2.4%, Steel 1.9%, Cement 8.3%, Electricity 3.1%. Data are provisional; some refinery data were prorated and indices revised.

Foreign investment approvals: eight proposals cleared, several deferred or rejected, and other cases referred or pending FIPB decision.
FIPB approved eight proposals permitting various forms of foreign equity infusion-fresh issue, acquisition, downstream investment and increase to full foreign participation-across sectors including consultancy, defence-related manufacturing services, publishing, solar power, courier and parcel delivery. Eight proposals were deferred for further scrutiny, three were rejected (including requests for post facto approval and warrants), one was advised as outside FIPB purview, and two decisions were reserved for later communication.

Recovery proceedings: rigid immediate recovery provisions struck down; reasonable time for stay applications required before enforcement.
The 1-1-2013 circular on recovery during pendency of appeals is partly upheld and partly read down: Conditions 3, 6 and 9 cannot be rigidly applied where delay in stay disposal is not the assessee's fault, as that would breach Article 14; Condition 10 is read down to permit a reasonable, case-specific period for seeking appellate protection before recovery; Condition 11 (appeals to higher courts) is upheld. Appellate authorities should decide stay and pre-deposit applications expeditiously, preferably within four weeks, and the earlier 26-5-2010 circular survives in its limited field.

Excise duty-free sale of indigenous goods permitted to international arriving and departing passengers within baggage allowance.
The Government authorised excise duty-free sale of goods manufactured in India to international passengers and crew arriving and to passengers departing at Duty Free Shops in airport arrival and departure halls, subject to the overall baggage allowance under the Baggage Rules, 1998. Directions permit removal of indigenous goods from factories without payment of duty for delivery to DFS godowns or retail outlets and set related procedural requirements. Arriving passengers or crew may choose duty-free imported or duty-free indigenous goods within their permissible baggage allowance.

Market Development Assistance eligibility expanded, enabling larger exporters and increasing funding to support overseas trade fairs and market diversification.
The Government revised Market Development Assistance to remove the upper eligibility ceiling for Latin America and raised the exporter eligibility threshold, increasing financial assistance ceilings for regional trade fairs and exhibitions and providing enhanced funding for large international events and Export Promotion Councils to support targeted export promotion and market diversification.

Written confirmation requirement for API imports enforces EU GMP compliance through national authority confirmation and mandatory inspections.
Exporters of Active Pharmaceutical Ingredients must obtain a written confirmation from a nominated national authority that the API and its manufacturing facility comply with EU GMP and are subject to equivalent GMP control and enforcement. The authority will require a prescribed application, document completeness checks, inspection where appropriate, and will communicate any non compliance to the EU. Satisfactory applications are processed within an administrative timetable and issued confirmations carry a defined multi year validity.

SEZ fiscal incentives promote export-led growth and generate significant state-wise employment under a uniform exemptions framework.
Fiscal concessions and duty exemptions under the Special Economic Zones Act, 2005 provide uniform incentives to promote exports; 577 SEZs approved and 389 notified as of May 2013, with SEZ exports increasing markedly and forming a growing share of national exports between 2008-09 and 2012-13. State-wise employment in SEZs totalled 1,074,904 persons as on 31 March 2013; the release records regional distribution, specific approvals in West Bengal, and states that no SEZ applications are pending.

Foreign direct investment approvals: multiple sectoral FDI proposals cleared while several were deferred, one rejected and some withdrawn.
Seventeen FDI proposals were approved across multiple sectors for induction of foreign capital, share transfers, post-facto regularisation of issuances, capitalization of prior payments and formation of LLPs/JVs; seven proposals were deferred, one rejected, two withdrawn and one pending separate communication.

Export credit reform: recommendations to broaden financing tools and simplify procedures for timely exporter finance.
The Committee recommended reforms to improve exporters' access to finance, including review of the Gold Card Scheme, inclusion of export finance under Priority Sector classification, foreign currency pool loans, non recourse factoring, liberalisation of merchanting trade, denomination of export credit in foreign currency, simplification of hedging, securitisation of receivables and new insurance or claim liberalisation by the Export Credit Guarantee Corporation, alongside procedural delegation to Authorised Dealer banks and measures for DTA/SEZ units and SMEs to ensure timely and adequate export credit.

Agricultural export policy balances domestic supply and farmer prices, permitting free exports except specified items.
Review and regulation of agricultural export policy is undertaken through inter-ministerial consultation and stakeholder engagement to balance domestic availability, production, price stability and international commitments; currently, all agricultural commodities except pulses and edible oils are freely exportable while exports are regulated to prevent scarcity, protect consumer prices and avoid drastic domestic price declines that would deprive farmers of remunerative returns.

Net Foreign Exchange obligations for SEZ units require cumulative positive earnings, affecting eligibility and compliance.
SEZ units must attain cumulative positive Net Foreign Exchange earnings over five years, with limited categories of sales eligible to count toward this requirement. SEZ fiscal concessions are codified in the SEZ Act, 2005, and monitored by Unit Approval Committees; violations attract penal action under the Foreign Trade (Development and Regulation) Act, 1992. The Government has announced reforms to revive investor interest amid reported growth in SEZ investment, exports and employment and occasional requests for de notification driven by economic and operational challenges.

Sector promotion measures expand trade liberalisation and export incentives to boost gems and jewellery competitiveness.
Government announces regulatory and fiscal measures to promote the gems and jewellery sector: abolition of import duties on rough gemstones and removal of licensing for rough diamonds; continuation of duty drawback for gold and silver jewellery; reduction of certain customs duties and withdrawal of central excise on jewellery; increased personal carriage limits for samples and exhibitions; import of precious metals through nominated agencies; budgetary support for infrastructure projects; market development assistance and a Technology Upgradation Fund; and formation of a Sector Skill Council for training.

Free Trade Agreement negotiations between India and Australia continue with rounds concluded and no definitive completion timeline.
A Joint Study Group established in 2008 recommended pursuing a Free Trade Agreement and its recommendations led to CECA negotiations covering trade in goods, services, investment and intellectual property. Four rounds of CECA negotiations have been completed, a fifth round was anticipated in mid May 2013, and both sides recognise that it is not feasible to predict a definitive timeframe for concluding balanced negotiations that deliver mutual benefit.

Fiscal consolidation to restore macro stability, paired with targeted infrastructure and inclusion policies to spur job creating growth.
Emphasis on inclusive growth via investment in infrastructure, manufacturing and skill development to create jobs; fiscal consolidation through targeted subsidy reform and direct benefit transfers; regulatory and institutional measures including FDI liberalisation, tax incentives, independent regulators for infrastructure, a Cabinet Committee on Investment to clear projects, and financial inclusion and skilling initiatives to broaden access and catalyse private participation.

Monetary policy: repo rate cut 25bps to 7.25%, growth projected 5.7%, inflation targeted 5% by March 2014.
The Reserve Bank lowers the policy repo rate by 25 basis points to 7.25% and adjusts related rates while retaining CRR at 4.0%. Growth is projected at 5.7% and WPI inflation around 5.5% with an objective to condition inflation to 5.0% by March 2014. Indicative trajectories are M3 +13.0%, deposits +14.0% and non food credit +15.0%. The Statement pairs monetary easing with active liquidity management and a programme of regulatory measures including Basel III implementation steps, dynamic provisioning, SLR HTM realignment, priority sector revisions and multiple initiatives for financial inclusion, payment systems and market infrastructure.

Export promotion urged to address current account pressures through market diversification and export-support measures.
Calls for strengthening Export Promotion to mitigate an elevated current account deficit and prepare exporters for a revival in global demand, emphasising market diversification, Special Economic Zones and the Export Promotion Capital Goods Scheme as mechanisms to expand exports. It highlights concern over a large trade deficit and adverse composition of trade with China and urges policy attention to change that composition, while also stressing domestic priorities of food availability and the role of institutions in developing managerial and socially conscious leadership.

Index of Eight Core Industries shows mixed sectoral growth, with natural gas decline and weaker coal and crude oil performance.
The Index of Eight Core Industries recorded a combined growth of 2.9% in March 2013 (index 164.5), marginally below the prior year's 3.0%, largely due to negative Natural Gas output and weak Coal and Crude Oil performance; sectoral results were mixed, cumulative April-March growth declined relative to the previous year, data are provisional and a refinery's crude throughput was excluded from the series.