Current State of Indian Economy

Growth Rate
Indian economy grew by 4.4% in the first quarter of the current financial year. In the last quarter of the financial year
2012-13, the economy grew by 4.8%. The country's GDP grew by 5% in 2012-13 - the lowest rate of growth in a
decade. In 2011-12, the country's growth rate was 6.2%.
Tax Collection
Indirect Taxes:
In the first quarter of the current financial year, collection of indirect taxes amounted to Rs 1.11 lakh crore, as against Rs
1.05 lakh crore in the corresponding period of the last financial year. Excise duty accounted for Rs 37,600 crore,
Customs duty for Rs 40,800 crore and Service Tax for Rs 32,000 crore in the first quarter of the current financial year.
The collection target for indirect taxes in the current financial year is Rs 5.65 lakh crore, which is 19% more than the
collection of Rs 4.73 lakh crore in 2012-13. Excise duty collection dropped by 4.9% in the first quarter of the current
financial year as compared to the corresponding period in the last financial year, showing the signs of decrease in
industrial production.
Direct Taxes:
During the period from April to July in the current financial year, gross collection of direct taxes amounted to Rs
1,57,169 crore, as against Rs 1,38,751 crore in the corresponding period of the last financial year, registering an
increase of 13.27%. Gross collection of Corporate taxes amounted to Rs 92,115 crore, personal income tax to Rs
63,583 crore, STT to Rs 1267 crore and wealth tax to Rs 201 crore.
In this period, net collection of income tax amounted to Rs 1,16,645 crore, as against Rs 1,05,684 crore in the
corresponding period last year, registering an increase of 10.37%.
Fiscal Deficit
In the first quarter of the current financial year, the country's fiscal deficit reached Rs 2.63 lakh crore - 48.4% of the
2013-14 Budget estimate. In this period, net tax receipts amounted to Rs 1.19 lakh crore, while the total expenditure
amounted to Rs 3.82 lakh crore. Fiscal deficit was 37.1% of the budget estimate in the first quarter of 2012-13. The
government assured to restrict fiscal deficit to 4.8% of GDP in the current financial year. The fiscal deficit amounted to
4.9% of GDP in 2012-13.
Depreciation of rupee
The rupee on August 28, 2013 plunged to a lifetime low of 68.85 against the US dollar and closed at 68.80. It was the
biggest single-day fall of 256 paise or 3.86%. In the month of August, the rupee lost 840 paise or about 14% against
the dollar upto August 28, 2013. In the current year, the rupee lost 1381 paise or over 25% against the dollar. The
finance ministry assured that there was no need to panic.
The rupee revived on August 29, 2013 and further strengthed on August 2013 owing to sale of dollars by public sector
banks on behalf of RBI. The PM blamed high CAD and international factors for fall of the rupee.
Trade Deficit
During the period from April to July 2013, exports amounted to US $ 98,290.13 million (Rs 5,59,531.29 crore), as
against US $ 96,632.20 million (Rs 5,26,301.34 crore) in the corresponding period last year, showing an increase of
1.72% in dollar terms and 6.31% in rupee terms.
During the period from April to July 2013, imports amounted to US $ 1,60,738.29 (Rs 9,11,927.33 crore) as against US
$ 1,56,327.95 (Rs 8,51,289.60 crore) in the corresponding period last year, showing an increase of 2.82% in dollar
terms and 7.12% in rupee terms. Oil imports amounted to US $54,584.3 million and non-oil imports to US $ 1,06,154.0
million in the period from April to July 2013.
The trade deficit for April-July 2013 was estimated to US $62,448.16 million, as against US $59,695.75 million in the
corresponding period of 2012.
Foreign Exchange Reserve
The country's foreign exchange plunged to US $ 278.02 billion as on August 9, 2013. The fall in foreign exchange
reserve was due to sale of dollars by the RBI and lower inflow of foreign currency.