ECONOMY AFFAIRS FEBRUARY 2013

ECONOMY AFFAIRS FEBRUARY 2013

• The Minister of State for Commerce & Industry Dr. S. Jagathrakshakan in written reply to a question in Rajya Sabha on 27 February gives information that, as a part of Government's initiative to improve the business environment and the ease of doing business in the country, the Department of Industrial Policy & Promotion, Ministry of Commerce & Industry launched the eBiz portal on 28.01.2013 comprising Licenses and Permits Services component that will allow business users to obtain a customized list of licenses, permits, and regulations that they require or need to comply with across all levels of government. eBiz will serve as a 24X7 online single-window system for providing efficient and convenient Government to Business (G2B) services to the business community, by reducing the complexity in obtaining information and services related to starting businesses in India, and dealing with licenses and permits across the business life-cycle.
  
• Economic Survey 2012-13
  Union Finance Minister P. Chidambaram on 27 February presented the Economic Survey 2012-13 in the Lok Sabha of the Parliament. India's Economic Survey for 2012-13 pegs the country's growth at 6.1-6.7% and inflation at 6.2-6.6% for the next fiscal 2013-14 and made a strong call for cutting subsidies. Economic Survey is presented every year, just before the Union Budget. It is a flagship annual document of the Ministry of Finance, Government of India. The economic survey 2012-13 was prepared by a team of economists led by Chief Economic Advisor Raghuram Rajan, and pitches for speeding up economic reforms to activate a sluggish economy. It serves as an indicator of what is likely to be contained in the General Budget proposals. Following are the major Highlights of the Economic Survey 2012-13 
  • GDP growth seen at 6.1-6.7 percent in 2013/14
  • Government target for fiscal deficit is 4.8 pct of GDP in 2013/14
  • Government target for fiscal deficit is 3 pct of GDP in 2016/17
  • Headline WPI inflation may decline to 6.2-6.6 pct by March2013
  • Focus on curbing imports, making oil prices more market determined to reign in current account deficit
  • Prioritization of expenditure seen as key ingredient of credible medium-term fiscal consolidation plan
  • Raising tax to GDP ratio to more than 11 percent seen as critical for sustaining fiscal consolidation
  • India likely to meet fiscal deficit target of 5.3 pct of GDP in 2012/13, despite significant shortfall in revenues
  • Recommends curbing gold imports to reign in current account deficit
  • Industrial output seen growing around 3 pct in 2012/13
  • Govt priority to fight inflation by reducing fiscal impetus to demand as well as by focusing on incentivizing food production.
  • More jobs in low productivity construction sector
  • Balance of Payments under pressure with net exports decline
  • Service sector has shown more resilience despite global slowdown
  • Pitches for hike in price of diesel and LPG to cut subsidy burden
  • Railway freight grows by 5.1 per cent in 2012-13
  • Foreign Exchange reserves remains steady at USD 295.6 Billion at December 2012 end.
  
  
• Union Budget 2013-14
  The Union finance minister on 28 February presented the Budget for the year 2013-14. Some of the key points that were highlighted by Chidambaram in the Budget are: 
  • No change in slabs and rate for personal income tax.
  • Tax credit of Rs 2000 to be provided to every person to having income of up to Rs 5 lakh, this will benefit 1.8 crore people.
  • 5 to 10 per cent surcharge on domestic companies whose taxable income exceeds Rs 10 crore.
  • Commodities transaction tax levied on non-agriculture commodities futures contracts at 0.01 per cent.
  • Modified GAAR norms to be introduced from April 1, 2016.
  • No change in peak rate of customs duty for non-agriculture products.
  • Direct Taxes Code (DTC) bill to be introduced in current Parliament session.
  • No change in basic customs duty rate of ten per cent and service tax rate of 12 per cent.
  • Import duty on rice bran oilcake withdrawn.
  • Series of concessions granted to Maintenance, Repair and Overhaul (MRO) business in the aviation sector.
  • Import duty raised on set-top boxes from 5 to 10 per cent to safeguard interest of domestic producers.
  • 10 per cent customs duty to be levied on unprocessed illuminate.
  • Import duty rose from 75 to 100 per cent on luxury vehicles.
  • Duty free limit on gold rose to Rs 50,000 in case of male and Rs 100,000 in case of female.
  • No countervailing duty on ships and vessels.
  • Specific excise duty on cigarettes and cigars raised by 18 per cent.
  • Excise duty on SUVs to be increased to 30 per cent from 27 per cent, SUVs registered as taxis exempted.
  • Vocational courses offered by state-affiliated institutes to be exempted from services tax.
  • Duty on mobiles above Rs 2,000 rose from one to six per cent, based on their maximum retail prices.
  • Service tax to be levied on all a/c restaurants.
  • One time voluntary compliance scheme for service tax defaulters to be introduced. Interest and penalties to be waived.
  • Direct tax proposals to yield Rs 13,300 crore, indirect tax proposal to give Rs 4,700 crore.
  • Education cess to continue at 3 per cent.
  • Contributions made to central and state government health scheme eligible to tax benefit.
  • Eligibility conditions for life insurance policies of persons suffering disabilities to be liberalized.
  • Investor Protection Fund set up by depositories will be exempt from tax.
  • Transactions on immovable properties usually undervalued.
  • TDS of one per cent on value of properties above Rs 50 lakh. Agriculture land exempted.
  • Securities Transaction Tax (STT) reduced on equity future, mutual fund.
  • Fiscal deficit will be 5.2 per cent in current year and 4.8 per cent in the next fiscal.
  • Will redeem our pledge to reduce fiscal deficit to 3 per cent by 2016-17 and revenue deficit to 1.5 per cent of GDP.
  • Tax Administration Reform Commission to be set up to regularly review tax law applications.
  • In 2011-12, tax-GDP ratio was 5.5 per cent for direct taxes and 4.6 per cent for indirect taxes.
  • Surcharge of 10 per cent for individuals whose taxable income is over Rs 1 crore.
  • Plan expenditure pegged at Rs 555,322 crore.
  • Non plan expenditure pegged at Rs 11,09,975 crore for 2013-14.
  • Low interest rate funds to be provided from Clean Energy Fund for green projects for a period of five years.
  • Generation-based incentives to wind energy projects reintroduced, Rs 800 crore provided for the purpose to Ministry of New & Renewable Energy.
  • Constraints will not come in the way for providing additional funds for security of the nation.
  • Rs 2, 03,672 crore, including Rs 86,741 crore capital expenditure to Defence in 2013-14.
  • Grant of Rs 100 crore each to AMU (Aligarh), BHU (Varanasi) and TISS (Guwahati) and INTACH.
  • National Institute for Sports to train coaches to be set up at Patiala at a cost of Rs 250 crore.
  • Rs 532 crore to make post offices part of core banking.
  • Rs 5, 87,082 crore to be transferred to states under share of taxes and non plan grants in 2013-14.
  • Comprehensive social security package being evolved by convergence of several schemes run by various ministries.
  • Investor with stake of 10 per cent or less will be treated as FII; any stake more than 10 per cent will be treated as FDI.
  • FIIs will be allowed to participate in exchange traded currency derivatives.
  • Small and medium companies to be allowed to listed on MSME exchange without making a public offer.
  • Concessional six per cent interest on loans to weavers.
  • Financial Sector Legislative Reforms Commission (FSLRC) to submit its report next month.
  • Govt to construct power transmission system from Srinagar to Leh at the cost of Rs 1,840 crore, Rs 226 crore provided in current Budget.
  • Plan expenditure in 12th Five Year Plan revised to Rs 14, 30,825 crore or 96 per cent of budgeted expenditure.
  • Budget expenditure is Rs 16, 65,297 crore and Plan expenditure Rs 5,55, 322 crore
  • The revised expenditure target is Rs 14, 30,825 crore or 96 per cent of Budget estimate for this fiscal. In 2013-14, the budget estimate is Rs 6, 65,297 crore.
  • One overarching goal to provide education and skills to youth for securing jobs in the 2013-14.
  • FM allocates Rs 41,561 crore for SC sub-plan; Rs 24,598 crore for tribal sub plan.
  • Additional sum of Rs 200 crore to Women and Child Welfare Ministry to address issues of vulnerable women.
  • Rs 3511 crore allocated to Minority Affairs Ministry which is 60 per cent of the revised estimates.
  • CFM allocates Rs 41,561 crore for SC sub-plan; Rs 24,598 crore for tribal sub plan.
  • Rs 3511 crore allocated to Minority Affairs Ministry which is 60 per cent of the revised estimates.
  • Rs 110 crore to be allocated to the department of disability affairs.
  • Rs 37,330 crore allocated for Ministry of Health & Family Welfare.
  • Rs 1069 crore allocated to Department of Ayush.
  • In the Budget Rs 65,867 crore allocated to Ministry of HRD in 2013-14.
  • Medical colleges in six more AIIMS-like institutions to start functioning this year; Rs 1650 crore allocated for the purpose.
  • Rs 5,284 crore to various Ministries for scholarships for SC/ST, OBC and minority students.
  • Rs 13,215 crore to be provided for mid-day meal scheme.
  • Rs 17,700 crore provided for Integrated Child Development Scheme.
  • Rs 15,260 crore to be allocated to Ministry of Drinking Water and Sanitation.
  • Rs 17,700 crore to be allocated for Integrated Child Development Scheme (ICDS).
  • Rs 80,194 crore allocation for Ministry of Rural Development in 2013-14. About Rs 33,000 crore for MGNREGA
  • Rs 80,194 crore allocated for rural development schemes.
  • States which have completed Pradhan Mantri Gramin Sadak Yojana will be eligible for PMGSY-II, others will continue with PMGSY-I.
  • Rs 14,873 crore for JNNURM for urban transportation in 2013-14 against Rs 7,880 crore in the current fiscal.
  • Food grain production in 2012-13 will be over 250 million tons.
  • Average annual growth rate of agriculture and allied services estimated at 3.6 per cent in 2012-13 when 250 MT food grains was produced.
  • Rs 27,049 crore allocation to the Agriculture Ministry in 2013-14.
  • Rs 7 lakh crore targets fixed for agriculture credit for 2013-14 compared to Rs 5.75 lakh crore in the current year.
  • Eastern Indian states to get Rs 1,000 crore allocation for improving agricultural production.
  • Green revolution in east India significant. Rice output increased in Assam, Odisha, Jharkhand and West Bengal; Rs 1,000 crore allocated for eastern states.
  • Indian Institute of Biotechnology will be set up at Ranchi.
  • Rs 10,000 crore set aside for incremental cost for National Food Security Bill over and above food subsidy.
  • Four Infrastructure debt fund have been registered.
  • Tax free bonds issue to be allowed up to Rs 50,000 crore in 2013-14 strictly on capacity to raise funds from the market.
  • Rs 5,000 crore will be made available to NABARD to finance construction of godowns and warehouses.
  • Government has decided to constitute a regulatory authority for the road sector.
  • Rajiv Gandhi Equity Scheme will be liberalised to allow first time investor to invest in Mutal Fund and equity.
  • First housing loan up to Rs 25 lakh would get additional deduction of interest of up to Rs 1 lakh in 2013-14.
  • Govt to construct power transmission system from Srinagar to Leh at the cost of Rs 1,840 crore, Rs 226 crore provided in current Budget.
  • Current account deficit continues to be high due to excessive dependence on oil, coal and gold imports and slowdown in exports.
  • DIPP and Japan's JICA preparing plan for Chennai-Bengaluru Industrial corridor.
  • Two new major ports to be set up in West Bengal and Andhra Pradesh.
  • Oil and gas exploration policy will be reviewed and moved from profit sharing to revenue sharing.
  • Policy on exploration of shale gas on the anvil; natural gas pricing policy will be reviewed and uncertainty removed.
  • Govt to set up India's first women's bank as a public sector bank by October.
  • Coal imports during Apr-Dec 2012 crossed 100 million tonnes and expected to go up to 185 million tonnes in 2016-17.
  • 5 million tons Dabhol LNG import terminal to be operate at full capacity in 2013-14
  • SIDBI's re-financing facility to MSMEs to be doubled to Rs 10,000 crore.
  • Incubators set up by companies in academic institutions will qualify for Corporate Social Responsibility (CSR) activities.
  • Rs 500 crore would be allocated for addressing environmental issues faced by textile industry.
  • Financial Sector Legislative Reforms Commission (FSLRC) to submit its report next month.
  • Standing Council of Experts in Ministry of Finance to examine transaction cost of doing business in India.
  • Rs 14,000 crore capital infusion into public sector banks in 2013-14.
  • PSU banks to have ATMs at all their branches by March 31, 2014.
  • Rs 6,000 crore to be allocated for rural housing fund in 2013-14.
  • All Regional Rural Banks and cooperative banks to be e-linked by this year-end.
  • Insurance companies will be empowered to open branches in Tier-II cities with approval of IRDA.
  • National Housing Bank (NHB) to set up urban housing bank fund and Rs 2,000 crore will be allocated in this regard.
  • Public sector general insurance companies to set up adalts to clear disputes related to claims.
  • Rashtriya Swasthya Bima Yojana benefit will be extended to rickshaw pullers, auto and taxi drivers and sanitation workers.
  • Comprehensive social security package being evolved by convergence of several schemes run by various ministries.
  • Investor with stake of 10 per cent or less will be treated as FII; any stake more than 10 per cent will be treated as FDI.
  • FIIs will be allowed to participate in exchange traded currency derivatives.
  • Small and medium companies to be allowed to listed on MSME exchange without making a public offer.
  
  
• Retirement fund body EPFO on 25 February decided to pay 8.5 per cent interest rate to its over five crore subscribers on their PF deposits for 2012-13, higher than 8.25 per cent provided in the previous fiscal. The decision was taken at the meeting of the Central Board of Trustees (CBT), the highest decision making body of the Employees' Provident Fund Organisation (EPFO). The meeting was chaired by Labour Minister. "A decision has been taken to pay 8.5 per cent interest on PF deposits ... but we have expressed our reservations as we wanted higher interest rate," said DL Sachdev, secretary All India Trade Union Congress (AITUC) after the CBT meeting. Earlier, a note prepared by EPFO for consideration of the February 15 meeting of the Finance and Investment Committee (FIC) had said, "... 8.5 per cent rate of interest for the year 2012-13 is feasible." According to the EPFO's estimates, payment of 8.6 per cent interest rate would result in a deficit of Rs 240.49 crore whereas 8.5 per cent interest rate on PF deposits for current fiscal would leave a surplus of Rs 4.13 crore. In FIC meeting held on February 15, union leaders refused to discuss the issue regarding payment of interest in the current fiscal because the agenda note for the issue was not provided well in advance to them, sources said adding the note was tabled during the meeting.
• Anand Sharma, Union Minister of Commerce, Industry and Textiles on 12 February, accepted and unveiled a Task Group report to make India an International Trading hub for rough diamonds. The task group on diamonds was constituted by the Minister of Commerce, Industries and Textiles under the Chairmanship of Director General of Foreign Trade, Dr. Anup K. Pujari keeping in view the slump in exports of diamonds from India through the last few quarters. Some of the recommendations in report include setting up of a Special Notified Zone for import and trading of rough diamonds, permission to import cut and polished diamonds duty free up to the extent of 15% of the average of previous 3 years’ exports and reducing the rate of computation of profit under Benign Assessment Procedure (BAP) from 6% to 2.5%, amongst others. India is the largest diamond cutting and polishing center in the world, committed to continuing as a responsible and active member of the Kimberley Process Certification System by implementing all its regulations. This report is of great importance to the Government as India currently enjoys the status of the foremost hub for manufacturing of diamonds in the world. Diamond Exports is also a major contributor to the merchandise exports of the country. It also employs a large number of people from the underprivileged section of the society in India. Sharma appreciated the suggestions of the Task Group to help India retain its primacy as a trading hub, committed to take up the recommendations, which have been put forward with the concerned departments of the Govt. in a time bound manner so as to decrease the transaction cost of exports, simplify the compliance of the trade with taxation authorities and benefit the trade with the natural resources that is emanating out of India.
  
• Indian business aviation firm Aviator on 14 February, signed an order for supply of seven EC135 helicopters from chopper major Eurocopter to be used for emergency medical services. The firm order for an initial batch of seven Eurocopter EC135s for helicopter emergency medical services (HEMS) operations was signed by the two companies in the presence of French President Francois Hollande. A second order is expected to be carried out later this year and rapid growth is anticipated in the HEMS market – as many as 50 helicopters are expected to be deployed throughout the country in the coming years, Eurocopter said in a statement. This is one of the first chopper orders placed by an Indian company for HEMS purposes. The EC135 is operated worldwide for a broad range of missions, including HEMS, law enforcement, rescue operations and business aviation. Eurocopter is part of the Franco-German-Spanish Eurocopter Group and a division of the global aerospace and defence conglomerate EADS. There are currently over 11,780 Eurocopter civil and military helicopters in service in 148 countries.
  
• Securities Exchange Board of India (SEBI) the stock market regulator of India on 13 February 2013 ordered freezing of bank accounts and attachment of properties of two Sahara group firms Sahara India Real Estate Corporation Ltd., and Sahara Housing Investment Corporation Ltd. and its Chairman Subrata Roy as well as top executives Vandana Bhargava, Ravi Shanker Dubey and Ashok Roy Choudhary after it failed to refund more than 24,000 crore rupees to investors. The decision from the market regulator came after the Supreme Court of India granted it the freedom to freeze the accounts of the two companies and attach the properties of the defaulting groups. The market regulator gave 21 days time to Sahara Firms to submit the details of the investments done and not listed in an order. SEBI’s orders restricts the Sahara India Estate Corporation from operating its demat accounts and redeeming the mutual fund units held by it as well as from transferring the shares controlled by it to any other body or company.
  
• The MCX-SX benchmark index SX40 went live with its equity-trading platform on both equities and equity derivatives on 11 February, Reliance Industries, Suzlon shares got spotlighted on MCX Stock Exchange launch. MCX-SX became the third full-fledged equity bourse after BSE and NSE in the country. The bourse was formally launched by Finance Minister P Chidambaramon 9 February. SX40 is a free-float based index of large-cap and liquid stocks, representing diverse sectors. The base value will be 10,000 with a base date of March 31, 2010, the exchange had said. The constituents of SX40 include ACC, ONGC, RIL, Tata Motors, TCS, Coal India, among others. The benchmark includes companies that have a minimum free float of 10 per cent and is within the top 100 liquid companies.
  
• Parle-G in February 2013 became the first Indian FMCG brand that crossed 5000 crore Rupees mark in terms of retail sales in one year. Parle Products were launched in 1939 when the British ruled India. Factually, Parle Products in 2012 sold 5010 crore rupees worth glucose biscuits at the retail price, surpassing the domestic sales of Godrej products and Dabur, while at the same time also selling thrice more products than Maggi. This means that Parle Products sold over 100 crore packets of the glucose biscuits every month, or 14600 crore biscuits in 2012. Parle-G that has less than 1 billion dollar sales in a year, but even then it has good lead over its rivals such as Hindustan Unilever's Wheel and Ghari Detergent. Parle -G’s share increased from 67 percent in 2002 to 79 percent in 2012. Comparatively, shares of Britannia's Tiger and ITC's Sun feast brand fell down
  
• The exports of India increased by 0.8 percent in the month of January 2013 to 25.58 billion US dollars. Comparatively, exports in January 2012 were 25.37 billion US dollars. Imports on the other hand, increased by 6.12 percent to 45.5 billion US dollars. During April to January 2012 -2013, the overseas shipments of India dropped by 4.86 percent to 239.6 billion US dollars. The main concern for the country is however to widen the trade deficit. As a cumulative result, the exports depicted an arrest in decreasing exports. Now, the result is -4.9 percent. Import of crude oil was growing at a faster pace. Oil imports in January 2013 increased by 6.91 percent to 15.89 billion US dollars in comparison to 14.87 billion US dollars in January 2012.
  
• American Airlines and US Airways have agreed to merge in an $11 billion deal to create the world's biggest airline. The combined carrier will be called American Airlines but run by US Airways CEO Doug Parker. The boards of the two airlines unanimously approved the 13February, and the companies announced the agreement on 14 February. The merger would reduce the number of major U.S. airlines to four: the new American, United, Delta and Southwest. The deal is a coup for smaller US Airways Group Inc., which pushed for a merger almost as soon as American parent AMR Corp. filed for bankruptcy protection in November 2011. While Parker runs the company, AMR CEO Tom Horton will serve as chairman until its first shareholder meeting, likely in mid-2014. AMR interests including creditors will own 72 percent of the new company and US Airways shareholders 28 percent. The companies said merging would create savings of more than $1 billion a year. The merger will be part of AMR's plan for exiting bankruptcy protection. The airlines said they expect $1 billion in combined savings. The new American would have more than 900 planes, 3,200 daily flights and about 95,000 employees, not counting regional affiliates. It will be slightly bigger than United Airlines by passenger traffic, not counting regional affiliate airlines.
  
• The inflation rate of India dropped down to the three-year low in the chart to 6.62 percent in January 2013 from the 7.18 percent, measured in December 2012. The inflation was measured based upon monthly Wholesale Price Index. The official Wholesale Price Index for All Commodities (Base: 2004-05 = 100) in January, 2013 rose by 0.4 percent to 169.2 (Provisional) from 168.6 (Provisional) for the previous month. Slowing exports and decline in investments and low demand in the domestic market have been a major factor in slipping down the growth rate of India. The two factors have affected the manufacturing as well as service sectors of India. The growth forecast for the running fiscal year that would end on 31 March 2013 was lowered by the India’s Statistical Office to 5 percent. The Reserve Bank of India also changed its forecast from 5.8 percent to 5.5 percent. To revive a fresh air in the slowing down economic conditions of India, the Reserve Bank took a major step of lowering the key interest rate from 8 percent to 7.75 percent; this was the first step in nine months. The Policy makers have also taken afresh steps to revive the slowing economic conditions of the nation.
  
• The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation on 7 February, has released the advance estimates of national income at constant (2004-05) and current prices, for the financial year 2012-13.These advance estimates are based on anticipated level of agricultural and industrial production, analysis of budget estimates of government expenditure and performance of key sectors like, railways, transport other than railways, communication, banking and insurance, available so far. The advance estimates at current prices are derived by estimating the implicit price deflators (IPDs) at sectoral level from the relevant price indices. The salient features of these estimates are detailed below:
  
• ADVANCE ESTIMATES OF NATIONAL INCOME, 2012-13
  Estimates at Constant (2004-05) Prices
  Gross Domestic Product
  Gross Domestic Product (GDP) at factor cost at constant (2004-05) prices in the year 2012-13 is likely to attain a level of Rs.55,03,476 crore, as against the First Revised Estimate of GDP for the year 2011-12 of Rs. 52,43,582 crore, released on 31st January 2013. The growth in GDP during 2012-13 is estimated at 5.0 per cent as compared to the growth rate of 6.2 per cent in 2011-12.
  
  Agriculture
  The ‘agriculture, forestry and fishing’ sector is likely to show a growth of 1.8 per cent in its GDP during 2012-13, as against the previous year’s growth rate of 3.6 per cent. According to the information furnished by the Department of Agriculture and Cooperation (DAC), which has been used in compiling the estimate of GDP from agriculture in 2012-13, production of food grains is expected to decline by 2.8 per cent as compared to growth of 5.2 per cent in the previous agriculture year. The production of cotton and sugarcane is also expected to decline by 4.0 per cent and 6.5 per cent, respectively, in 2012-13. Among the horticultural crops, production of fruits and vegetables is expected to increase by 3.5 per cent during the year 2012-13 as against 5.1 percent in the previous year. Industry
  The manufacturing sector is likely to show a growth of 1.9 per cent in GDP during 2012-13. According to the latest estimates available on the Index of Industrial Production (IIP), the index of manufacturing and electricity registered growth rates of 1.0 per cent and 4.4 per cent, respectively during April-November, 2012-13, as compared to the growth rates of 4.2 per cent and 9.5 per cent in these sectors during April-November, 2011-12. The mining sector is likely to show a growth of 0.4 per cent in 2012-13 as against negative growth of 0.6 per cent during 2011-12. The construction sector is likely to show a growth rate of 5.9 per cent during 2012-13 as against growth of 5.6 per cent in the previous year. The key indicators of construction sector, namely, cement production and steel consumption have registered growth rates of 6.1 per cent and 3.9 per cent, respectively during April-December, 2012-13.
  
  Services
  The estimated growth in GDP for the trade, hotels, transport and communication sectors during 2012-13 is placed at 5.2 per cent as against growth of 7.0 percent in the previous year. This is mainly on account of decline of 3.4 per cent and 4.8 per cent respectively in passengers and cargo handled in civil aviation and decline of 3.1 per cent in cargo handled at major sea ports during April-November, 2012-13. There has been an increase of 4.3 per cent in stock of telephone connections as on November 2012. The growth rate of 'community, social and personal services' during 2012-13 is estimated to be 6.8 per cent.
  
  National Income
  The net national income (NNI) at factor cost, also known as national income, at 2004-05 prices is likely to be Rs.47,64,819 crore during 2012-13, as against the previous year's First Revised Estimate of Rs. 45,72,075 crore. In terms of growth rates, the national income registered a growth rate of 4.2 per cent in 2012-13 as against the previous year’s growth rate of 6.1 per cent.
  
  Per Capita Income
  The per capita income in real terms (at 2004-05 prices) during 2012-13 is likely to attain a level of Rs.39,143 as compared to the First Revised Estimate for the year 2011-12 of Rs. 38,037. The growth rate in per capita income is estimated at 2.9 per cent during 2012-13, as against the previous year's estimate of 4.7 per cent.
  
  Estimates at Current Prices
  Gross Domestic Product
  GDP at factor cost at current prices in the year 2012-13 is likely to attain a level of Rs. 94,61,979 crore, showing a growth rate of 13.3 per cent over the First Revised Estimate of GDP for the year 2011-12 of Rs. 83,53,495 crore.
  
  National Income
  The NNI at factor cost at current prices is anticipated to be Rs. 83,68,571 crore during 2012-13, as compared to Rs. 73,99,934 crore during 2011-12, showing a rise of 13.1 per cent.
  
  Per Capita Income
  The per capita income at current prices during 2012-13 is estimated to be Rs. 68,747 as compared to Rs. 61,564 during 2011-12, showing a rise of 11.7 per cent.
  
• The Union Cabinet on 7 February gave its approval to the amendments to the National Bank for Agriculture and Rural Development (NABARD) Act 1981
  The following amendments to the NABARD Act 1981 are proposed-
  1. Raising the authorized capital of NABARD to Rs. 20,000 crore from Rs. 5,000 crore.
  2. The meaning of cooperative society is proposed to be enlarged to include multistate cooperative societies registered under any Central law or any other Central or State law relating to cooperative societies.
  3. Change of ownership to facilitate the transfer of the remaining share capital of NABARD from the Reserve Bank to the Central Government.
  4. Increasing the scope of operations of NABARD under short term funding purposes and other changes.
  The following benefits are projected by this amendment-
  1. By increasing the authorized capital of NABARD to Rs 20,000 crore from Rs 5,000 crore, the ability of NABARD to mobilize resources from the market will be enhanced thereby new credit products, new credit linkages and new clients will be developed.
  2. The amendments allow NABARD to lend to new institutions, mainly Societies covered under multistate cooperative societies act and other central laws, producer organizations or such class of financial institutions which are approved by the Central Government. This is likely to benefit a larger segment of the financially excluded farmers in the country.
  3. The amendments allow combination of credit, creation of short term operations fund and swapping of debt of farmers.
  4. The decision of the Government to transfer the balance one percent shares to the Govt. of India from Reserve Bank of India (RBI) in NABARD shall be carried out, which will provide for increased public accountability, as the Government will acquire the equity held by RBI.
  5. NABARD will combine the post of Chairman and the post of Managing Director, into one, therefore Chairman and Managing Director, under the provisions of the NABARD Act relating to these two posts. This shall ensure a distinct line of command.
  NABARD was established on 12 July 1982 to provide sharp focus to agriculture credit and rural development. NABARD adopted, as its mission, the promotion of sustainable and equitable development of agriculture and rural prosperity through effective credit support, related services, institution development and other innovative initiatives.
  Civil aviation minister, Ajit Singh on 8 February, released Shubh Yatra, an exclusive monthly bi-lingual (Hindi & English) in flight magazine of Air India; it covers travel, lifestyle, culture and entertainment in all colour and spice. This is the new name of the in flight magazine. 
• India is likely to produce 250.14 million tones of food grains during 2012-13 (includes kharif 2012 and rabi crops in the field at present). This, despite a drop of 7 million tones in production during kharif, owing to erratic monsoons. As per the second advance estimates of crop production released on 8 February, by the Agriculture Ministry, production of major crops except pulses is likely to be less than last year, which happened to be the year of record food grain production helped by a favourable monsoon. In the present crop year (2012-13), despite deficient and late rainfall in many parts of the country in the monsoon season, the estimated production is higher than the food grain production achieved any time before last year, showing the growing resilience of Indian agriculture. A number of initiatives have been taken in recent years to increase production of pulses, including raising MSP of main pulses crops significantly and special schemes to encourage farmers to adopt modern agronomic practices in pulses production. The assessment of production of different crops is based on the feedback received from States and validated with information available from other sources.
  
• The successful NTPC stake sale, on 7 February, fetched the government Rs.11,500 crore, the second PSU share sale in a week that was over-subscribed, helping to move closer to the Rs.30,000-crore disinvestment target. The share sale of the country’s largest power producer, NTPC, was over-subscribed 1.7 times as an offer price lower than the scrip’s trading rate on stock exchanges received tremendous interest from foreign investors. Coming within a week of the share sale of Oil India, the NTPC issue was also lapped up by foreign investors in a big way, making the government say there is still a huge demand for PSU shares in the market. The total demand received for the offer was 132.84 crore shares, which is 1.7 times over the 78.32 crore shares or 9.5 per cent stake on the block. The government had fixed the floor price or the minimum offer price at Rs.145 a share. The indicative price, which is the weighted average price of all valid bids, came in at Rs.145.91 at the close of the auction.
  
• The ambitious rural road scheme received a boost on 7 February, with the government clearing projects worth an estimated Rs 38,500 crore to connect left out habitations including those in 82 Naxal-affected districts and areas of Arunachal Pradesh bordering China. The Union Cabinet, chaired by Prime Minister Manmohan Sigh, gave "in principle" approval for connecting all habitations with a population of 100 tribals and above in 82 Naxal-hit districts with all-weather roads under the Centre's flagship programme PMGSY.In case of multi-connectivity at the block level, identified by the Union Home Ministry, it is not compulsory that tar-paved roads should be constructed in such areas where Maoists target metalled roads used by security forces. At present, the Pradhan Mantri Gram Sadak Yojana (PMGSY), envisages connecting all habitations with a population of 250 persons and above in tribal areas in Naxal-affected districts. The Cabinet also gave nod to connect unconnected small villages with population below 250 in strategically important districts of Arunachal Pradesh bordering China with all- weather roads. An amount of Rs 1200 crore is expected to be cost for providing new connectivity to the habitations in the border districts of Arunachal Pradesh. Out of the state's 17 districts, 10 districts are bordering China and Myanmar and the small habitations in these districts will be major beneficiaries.
  
• Researchers have identified the world's largest prime number yet, beating the previous record by over four million digits. The number has now shot up to 2 multiplied by itself 57,885,161 times minus 1, breaking a four-year dry spell in the search for new, ever-larger primes. Curtis Cooper from the University of Central Missouri in Warrensburg made the finding as part of the Great Internet Mersenne Prime Search (GIMPS), a distributed computing project designed to hunt for a particular kind of prime number first identified in the 17th century, the 'New Scientist' reported. All prime numbers can only be divided by themselves and 1. The rare Mersenne primes all have the form 2 multiplied by itself p times minus 1, where p is itself a prime number. The new prime, which has over 17 million digits, is only the 48th Mersenne prime ever found and the 14th discovered by GIMPS. The previous record holder, 2 multiplied by itself 43,112,609 times minus 1, which was also found by GIMPS in 2008, has just under 13 million digits. All the top 10 largest known primes are Mersenne primes discovered by GIMPS. GIMPS software runs on around a thousand university computers, one of which spent 39 days straight proving that the number was prime, which was then independently verified by other researchers
  
• NTPC signs loan pact worth $250 million with SBI
  State-run NTPC on 6 February said it has signed a loan agreement worth USD 250 million with State Bank of India and Japan-based Mizuho Corporate Bank for financing its expansion plans. "NTPC has signed a term-loan agreement for USD 250 million (approximately Rs 1,327 crore) with the New York branch of State Bank of India and Singapore branch of Mizuho Corporate Bank as lead arrangers and lenders," the company informed the stock exchanges today.