Eight core industries grew 2.1% in August 2012, with declines in natural gas, cement, fertilizers and crude oil.
The Index of Eight Core Industries (weight 37.90% in IIP) stood at 143.1 in August 2012, with 2.1% growth versus 3.8% a year earlier. Moderation in aggregate growth reflected negative August growth in Natural Gas, Cement, Fertilizers and Crude Oil and slower growth in Steel and Electricity. Cumulative April-August 2012-13 growth was 2.8% compared with 5.5% in the same period of 2011-12. Sectoral monthly movements and provisional revised data are set out in the annexure.

Intellectual property strategy promotes IP creation, stronger protection, and commercialization to boost national innovation capacity.
The National IPR Strategy proposes a four pronged policy framework to: promote respect for IP and stimulate IP creation; create new IP regimes (including utility models and strengthened trade secret protection) to address national needs; strengthen protection through modernization of IP offices, improved examination, e filing, searchable databases, fee rebalancing and an Enforcement Taskforce; and facilitate commercialization via support for licensing, patent pooling, institutional IP management, demonstration funding, tax incentives and procurement preferences for indigenous technologies.

Preferential Trade Agreement push aims to finalise India SACU pact early to complete IBSA SACU Mercosur trilateral integration.
Negotiations seek early conclusion of a Preferential Trade Agreement between India and SACU to formalise tariff preferences and reciprocal market access and to complete a trilateral IBSA SACU Mercosur arrangement, with ministers prioritising acceleration of talks in the context of rising bilateral trade and substantial private investment flows.

Trade normalization advances a roadmap for phased SAFTA sensitive list reductions and implementation of mutual trade facilitation agreements.
Normalization of bilateral trade relations was advanced by transitioning from a positive list to a negative list regime, directing operational upgrades at the Wagah-Attari ICP and rail links, instituting monthly coordination meetings, and implementing three trade facilitation instruments while pursuing elimination of Non Tariff Barriers and a phased reduction of SAFTA sensitive lists to a mutual ceiling of one hundred tariff lines.

Central bank bulletin outlines trade slowdown, seasonal indicator shifts and weaker corporate investment and profitability.
The Bulletin presents five analytical articles: a review of Q1 2012-13 merchandise foreign trade showing declining exports, reduced gold imports and a narrower trade deficit; estimated monthly seasonal factors for 99 macro series with notable shifts in money and production seasonality; international banking statistics showing growth in banks' international liabilities, assets and consolidated claims with short-term and US dollar concentration; corporate investment intentions revealing a marked fall in new projects and lower envisaged capital expenditure; and private corporate sector results indicating moderated sales and contracted profit margins.

Cash reserve ratio cut injects liquidity while policy repo rate held steady to prioritise inflation control.
The Reserve Bank reduced the cash reserve ratio to inject primary liquidity into the banking system while keeping the policy repo rate and related LAF rates unchanged, signalling a calibrated liquidity easing. Monetary policy remains focused on containing persistent headline and core inflation and anchoring expectations despite weak growth. Liquidity is broadly comfortable but may tighten due to seasonal and fiscal outflows, requiring active management of the LAF to ensure adequate credit flow. External risks and twin deficits constrain stronger accommodation, so the monetary stance will be conditioned by ongoing monitoring of the growth inflation dynamic.

FDI in multi brand retail trading permitted subject to State consent, local zoning, backend infrastructure investment and procurement safeguards.
Permitting foreign direct investment in multi brand retail trading allows establishment of retail outlets only with State consent and in compliance with State laws and local zoning; outlets are limited to major urban agglomerations or designated principal cities. A mandated portion of FDI must be invested in back end infrastructure-defined to include processing, manufacturing, distribution, quality control, packaging, logistics and storage-within a fixed timeframe, excluding land costs and rentals. A high level group under the Minister of Consumer Affairs will examine internal trade and recommend reforms.

Single-brand retail FDI limits non-resident participation to a sole investor per brand and requires significant domestic sourcing.
Amendment permits a non-resident investor that is not the brand owner to undertake single-brand product retail trading in India through a legally tenable licence/franchise/sub-licence agreement, while mandating that only one non-resident entity may operate for a specific brand and that the Indian recipient company ensure and evidence compliance. For proposals with FDI beyond 51%, the Indian company must self-certify and later have audited verification that a prescribed portion of the value of goods purchased is sourced from India, preferably from MSMEs, village and cottage industries, artisans and craftsmen, where feasible.

Trade statistics show export and import declines for the month, narrowing the trade surplus and shifting sectoral performance.
Monthly trade statistics for August 2012 record year on year declines in both exports and imports, list leading export and import sectors, and report lower cumulative April-August 2012 exports and imports compared with the prior year period, with a reduced cumulative trade surplus; all figures are provisional and released by the Department of Commerce.

Trade partnership: Czech Republic named partner country to deepen engineering-sector cooperation and boost bilateral trade.
Designation of the Czech Republic as Partner Country for the India Engineering Sourcing Show 2013 was announced during India-Czech Joint Commission meetings at Brno, where a business delegation of over 135 Indian engineering firms participated and a minister set a bilateral trade target to double two-way trade by 2015. Two memoranda of understanding were signed: between the Czech Export Bank and the Export-Import Bank of India, and between EEPC India and the Confederation of Industry of the Czech Republic to advance financial and industry cooperation.

Bilateral trade target pursued as ministers agree to deepen industrial cooperation and launch joint working groups.
Ministers used the trade promotion event to agree targets to expand bilateral trade and to establish Joint Working Groups on skills and innovation, heavy engineering, and life sciences and pharmaceuticals, and to invite mutual participation in engineering sourcing and trade fairs to facilitate industrial partnerships and market access.

Minimum import price for areca nut increased, triggering revised import monitoring and safeguarding domestic market stability.
Import data for areca nut are reported country-wise for three recent periods, with no major decline observed in domestic production or prices; the government raised the minimum import price for areca nut effective 14.8.2012, as announced in a parliamentary written reply published in a press release.

Assistance to States for Development of Export Infrastructure: funding secured to build a trade centre to boost exporter access to overseas markets.
An International Trade Centre at Pampore, Pulwama, J&K is being established to host trade fairs and buyer seller meets to connect state exporters with overseas markets; land has been earmarked by the State. Financing is provided under the ASIDE Scheme with state and ASIDE contributions and an initial ASIDE release made in December 2008; the project is under implementation.

Export permission restored for key food commodities and select milk products, lifting prior bans and removing quantity limits.
Government permits export of non basmati rice and wheat following earlier prohibitions, confirms generally free export of onion aside from brief prior suspensions, and records phased relaxation for milk products: casein and casein products exportable under licence and skimmed milk powder free for export. The announcement specifies that there is no quantity restriction on exports of these products.

Wheat export restrictions: government sells exportable surplus to neighbouring countries at market prices via competitive tenders.
Wheat exports are regulated and depend on domestic demand and supply; where exports to neighbouring countries occur they are effected through government agencies at market prices discovered through competitive tendering, reflecting state-controlled allocation of exportable surplus.

Anti-dumping duty on chemical imports restricts specified Chinese inputs used in pesticide and dye manufacture.
Anti-dumping duty has been imposed on specified chemical imports from China used in pesticide and dye production, listing affected chemicals. Accompanying trade statistics show export and import volumes and values for fertilizers and pesticides, and the statement notes fertilizer exports are insignificant vis-a -vis the domestic market and thus will not affect domestic fertilizer prices; customs anti smuggling authorities have sought further information which remains pending.

Organic textile certification strengthens traceability and ensures fibre and manufacturing meet organic and environmental standards.
Launch of the Indian Standards for Organic Textile (ISOT) establishes a regulatory framework to verify and certify the organic status of textile fibres from cultivation through processing and labelling, mandating traceability, supply chain controls, and assurance that manufacturing meets social and environmental benchmarks under the National Programme for Organic Production.

Financial assistance to export promotion councils disclosed, detailing scheme-based and council-level grant allocations across years.
Department of Commerce provides recurring financial assistance to Export Promotion Councils under the Market Development Assistance, Market Access Initiative, and ASIDE schemes, supplemented by other ministries. An annexure tabulates annual allocations and totals for each EPC across three years, disclosing council-level grant distributions and the Department's implementation of export-promotion funding. The information was supplied in response to a parliamentary question.