The Reserve Bank of India today released the January 2014 issue of its monthly Bulletin. The Bulletin includes two special articles: (1) India's Foreign Trade: H1 of 2013-14 (April-September); and (2) Finances of Foreign Direct Investment Companies: 2011-12 apart from speeches by the Top Management.
1. India's Foreign Trade: H1 of 2013-14 (April-September)
This article reviews India's merchandise trade performance during April-September 2013-14 on the basis of the data released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S). It also analyses disaggregated commodity-wise and direction-wise details during this period. India's merchandise trade witnessed a turnaround as a rise in exports coupled with a moderation in imports, primarily led by decline in gold imports, narrowed the trade deficit to US$ 79.7 billion in H1 of 2013-14 from US$ 91.8 billion in H1 of 2012-13.
Main Findings:
Indian merchandise exports recorded a growth of 5 per cent at US$ 151.8 billion in H1 of 2013-14 as against a decline of 6.2 per cent at US$ 144.7 billion in H1 of 2013-14.
Pick up in exports was mainly attributed to the improved performance of 'leather and manufactures', 'marine products', 'oil meal', 'petroleum products' and 'textile and textile products'.
While exports to China, South Korea, Netherlands and Latin American countries declined, exports to countries viz., Belgium, Italy, Germany, UK, Japan, Indonesia, Iran, Hong Kong, Malaysia, and Singapore exhibited considerable rise in H1 of 2013-14.
Imports declined by 2.1 per cent to US$ 231.6 billion in H1 of 2013-14 from US$ 236.5 billion in HI of 2012-13.
Moderation in imports was primarily led by a significant decline in gold imports in Q2 of 2013-14 by about 65 per cent, offsetting its sharp rise in the preceding quarter. On a cumulative basis, however, gold imports rose marginally by 0.2 per cent during April-September 2013-14 while growth in oil imports moderated to 3.7 per cent as compared to a growth of 5.8 per cent in H1 of 2012-13.
2. Finances of Foreign Direct Investment Companies: 2011-12
This article presents the financial performance of select 766 non-government non-financial foreign direct investment (FDI) companies during the financial year 2011-12, based on their audited annual accounts. It also draws a comparative picture over the five year period from 2007-08 to 2011-12 based on the previous studies on FDI companies published earlier.
Main Findings:
The sales growth of select FDI companies improved in 2011-12. However, higher growth in operating expenses relative to that in value of production led to decline in net profits (PAT).
Earnings before interest, tax, depreciation and amortisation (EBITDA) margin (EBITDA to sales ratio) of select FDI companies declined in 2011-12 after successive recovery in previous two years; however, the EBITDA margin of the companies in services sector improved.
The external sources of funds (i.e., other than companies' own funds) continued to play a major role in business expansion of the select FDI companies.
As compared to select FDI companies, select non-FDI companies recorded similar growth in sales in 2011-12 but their operating expenses grew at a slightly lower rate. As a result, EBITDA of non-FDI companies contracted at a lower rate.
Detailed data for 2011-12 along with explanatory notes was released in the website of the Reserve Bank vide press release dated December 26, 2013.
The rates for Bulletin, Weekly Statistical Supplement and other select publications have been revised for 2014. The details on rates are available on recent publications section of the Bulletin.
Sangeeta Das
Director
Press Release : 2013-2014/1397
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