MONTHLY ECONOMIC REPORT -- JUNE 2011: Ministry of Finance

HIGHLIGHTS
 The overall growth of GDP at factor cost at constant prices, as per Revised Estimates, was
8.5 per cent in 2010-11 representing an increase from the revised growth of 8.0 per cent
during 2009-10.
• The cumulative rainfall received for the country as a whole, during the southwest monsoon
season, 2011 (June 1 – September 30), has been one per cent above the normal as on
07.07.2011.
• Food grains (rice and wheat) stocks held by FCI and State agencies were 44.18 million
tonnes as on April 1, 2011.
 Overall growth in the Index of Industrial Production (IIP) was 5.6 per cent during May
2011 as compared to 8.5 per cent in May 2010. During April-May 2011-12, IIP growth was
5.7 per cent as compared to 10.8 per cent during 2010-11.
 Eight core Infrastructure industries grew by 5.3 per cent in May 2011 as compared to the
growth of 7.4 per cent in May 2010. During April-May 2011-12, these sectors grew by 4.9
per cent as compared to 7.9 per cent during April-May 2010-11.
 Broad money (M3) (up to July 1, 2011) increased by 4.8 per cent as compared to 3.8 per
cent during the corresponding period of the last year. The year-on-year growth, as on July
1, 2011 was 17.1 per cent as compared to 16.0 per cent last year.
 Exports, in US dollar terms increased by 56.9 per cent and imports increased by 54.1 per
cent, during May 2011.
 Foreign Currency Assets stood at US$ 283.7 billion at end June 2011 compared to US$
249.9 billion at end June 2010.
 Rupee appreciated against US dollar and Pound Sterling and depreciated against
Japanese Yen and Euro in the month of June 2011 over May 2011.
 Year-on-year inflation in terms of Wholesale Price Index was 9.44 per cent for the month
of June 2011 as compared to 10.25 per cent in the corresponding month last year.
 Tax revenue (net to Centre) during April-May, 2011 recorded a decline of 27.6 per cent
compared with corresponding period of 2010-11. This is mainly due to refunds in
corporation tax which indicates a decline of 130 per cent over corresponding period last
year.
 As a proportion of budget estimate, fiscal deficit during April- May, 2011 was 31.7 per
cent and revenue deficit was 35.8 per cent. Revenue deficit and Fiscal deficit in April-May
2011-12 increased by 35.5 per cent and 29.6 per cent respectively over the same period
last year. This increase is mainly on account of lower GTR and higher Non Plan
expenditure. Increase in Non-Plan expenditure is due to higher interest payment and
increase in defence expenditure and pension outgo.