NEW DELHI: The gross external aid during April-July 1992 has come down sharply by 20.9% at Rs 2,508 crore as compared to Rs 3,171 crore in the corresponding period of 1991. The decline is 44% in dollar terms

The foreign exchange reserves stood at $6,318 million at the end of August 1992 as compared to the abysmally low level of $1,141 million at the end of the same month during the previous year.

Exports have increased by 0.4% during April-June 1992 as against a decline of 6.6% during the same period of last year, While exports to general currency areas (GCA) increased by 8.4% during April June this year as compared to 5.5% during the corresponding period of last year, the exports to rupee payments areas (RPA) have fallen sharply at 59.5% against a decline of 49.5% last year.

On the other hand, imports continue to increased and were higher by 17.8% (in dollar terms) during the quarter ending June 1992. This has been attributed to a 42.3% increase in Petroleum Oils and Lubricants (POL) imports and 9.9% rise in non-POL imports.

The Money Supply has appreciated by 7.5% during the current financial year (from March 31,1992 to August 7,1992) against 5.4% during the corresponding period of 1991-92. The growth in net bank credit to government at 7.7% was lower while credit to commercial sector at 4.6% was higher compared to corresponding period of previous year,

The procurement of rice and wheat has fallen sharply in the first five months of this year, Rice procurement up to August 20 this year was 18.9% lower at 10.22 million tons (MT) against 12.61 MT last year. Wheat procurement at 6,38 MT up to August 20 was 17.7% lower against 7.75 million last year,

The off-take from public distribution has declined by 3.1% in

July 1992 compared to July 1991. Cumulative off-take during April July 1992 at 5,80 MT was 4.6% lower against 6.08 MT during the corresponding period of the previous year,

Industrial production during the first two months of the current financial year increased by 4.1% as compared to a decline of 1.9% in April-May 1991.

Investment intentions as per the overall approvals granted by Capital Goods (Main) Committee for import of capital goods during 1991-92 has showed an increase of 8% over the’ value of approvals granted in 1990-91,

The monthly outflow from Non Resident Indian (NRI) accounts has come down from $177 million in April 1992 to $67 million in June 1992. This further declined to $26 million in July 1992. The total outflow from NRI accounts during first four months of the current financial year was $366 million against $1,066 million during the corresponding period of the previous year,

‘The Department of Economic Affairs in the Ministry of Finance States that the monsoon has been encouraging though Stocks, procurement and off take of food grains has gone down, Industrial production is going up Steadily while there are mixed trends in the infrastructure. The money supply has witnessed a higher growth and inflation rate continues to decline. Exports have shown signs of recovery and the assistance has been lower while force reserves remain at high level, the report states.

Article extracted from this publication >> October 2, 1992