The MNI India Business Sentiment is an authoritative indicator of the current pace of overall growth in India. It is based on a monthly poll of Indian executives and delivers an update on all the latest business trends.

1. MNI India Business Report
September 2013
Insight and data for better decisions

2. 1
MNI India Business Report - September 2013
About MNI Indicators
Insight and data for better decisions
MNI Indicators offers unique macro-economic data
and insight to businesses and the investment
community. We produce data and intelligence that is
unbiased, pertinent and responsive. Our data moves
markets.
Written and researched by
Philip Uglow, Chief Economist
Shaily Mittal, Economist
Lorena Castellanos, Economist
MNI Indicators specialises in business and consumer
focused macro-economic reports that give our
customers the ability to make timely and relevant
decisions. We strive to provide up-to-date information
on business and consumer confidence on the
economy.
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3. MNI India Business Report - September 2013
MNI India Business Report - September 2013
Contents
3
Editorial
31
What the Panel Said
5
Executive Summary
33
Data Tables
9
Economic Landscape
37
Methodology
13
Indicators
14
MNI India Business Indicator
15
Production
16
New Orders
17
Export Orders
18
Productive Capacity
20
Order Backlogs
21
Employment
22
Inventories
23
Input Prices
24
Prices Received
25
Financial Position
26
Interest Rates Paid
28
Effect of Rupee Exchange Rate
29
Supplier Delivery Times
30
Availability of Credit
2

4. 3
Spitzzeile Titel
Rock stars, Onions and Inflation
Mervyn King, former governor of the Bank of
England, once said that central bankers should
aspire to be boring because, “boring is best”. Not
so these days.

5. MNI India Business Report - September 2013
Mervyn King, former governor of the Bank of England,
once said that central bankers should aspire to be
boring because, “boring is best”.
Not so these days. “Helicopter Ben” was drafted to
the Federal Reserve to save the US economy. “Super
Mario” took the helm at the European Central Bank,
while “Rock Star” central banker Mark Carney took
over at the Bank of England earlier this year.
Step forward Mr Raghuram Rajan, former IMF Chief
Economist and holder of a PhD from the Massachusetts
Institute of Technology. Media hasn’t settled on a
single moniker yet, but whether he’s eventually the
“Governator” or simply a “Superstar” central banker,
he’s already made waves. At his first monetary
meeting on September 20, Rajan stamped his
authority by surprising markets and raising the repo
rate 25 basis points to 7.5%.
This was a bold step for a new governor who has seen
growth in India grind to its lowest level in more than
three years in the three months to June. The move
may be as much about flexing his anti-inflation
credentials as well as preparing for the imminent Fed
tapering.
“Let us remember that postponement of tapering is
only that – a postponement,” Rajan said after the rate
hike. “We must use this time to create a bulletproof
national balance sheet and growth agenda that
creates confidence in investors and citizens alike.”
While the central bank has a key role to play in
managing the demand side of the economy, many of
India’s current problems lie on the supply side, which
are issues the government needs to tackle - and they
deserve most of the current flack for doing very little.
Greater infrastructure planning, cuts to overbearing
regulation and dealing with corruption are just a few
things they need to get to grips with.
The RBI’s decision to tighten monetary policy in
response to higher inflation expectations hasn’t
escaped criticism given the current lack of growth.
While wholesale price inflation rose to 6.1% in August,
from 5.8% in July - further above the central bank’s
5.5% end-year target – most of this was due to higher
prices of food and fuel. Core inflation, which excludes
food and fuel, stood at just 1.9%.
The price of onions has risen by an eye watering
245% over the past year. For a country where the
humble onion is used in just about every dish, it’s a
key issue and has been blamed for toppling two
governments in the past 30 years. But should
monetary policy concern itself with the price of onions
or the wider rise in food prices? Certainly the former
appears to be due to a combination of a poor harvest
and also a lot of hoarding from some less than
scrupulous wholesalers. Monetary policy can do
nothing to address such problems.
Possibly the RBI should target core inflation which
should give a better picture of underlying price
pressures in the economy, but as previous RBI
governor Duvvuri Subbarao has pointed out, how can
a measure of core inflation exclude nearly 65% of the
consumption basket be termed ‘core’. He’s got a point
and it underlies the difficulty faced by the central
bank in trying to manage inflation expectations.
While new superstar Rajan might have been brought
in to save India, his efforts will be to no avail should
the government not play its part to drive reforms,
support growth and most of all sort out those onions…
Philip Uglow
Chief Economist
MNI Indicators
4

6. 5
Spitzzeile Titel
Executive Summary
Most of the indicators in the report showed a
continued recovery in September, and it is likely
that the downturn in overall business conditions
was due to concerns surrounding the rupee.

7. MNI India Business Report - September 2013
The Input Price Indicator increased to 74.1 in
September, from 66.7 in August, led by strong price
rises in both manufacturing and services.
For the second consecutive month, the current
Financial Position of companies improved, led by
65
60
55
50
Sep-13
Aug-13
Jul-13
Jun-13
45
May-13
The Employment Indicator has remained relatively
stable since the series started in April, and September
saw little change, with companies reporting moderate
employment growth.
70
Apr-13
Export Orders increased sharply to 63.2 in September
from 55.0 in August, continuing the rise since falling
into contraction in April.
MNI India Business Indicator
Mar-13
The New Orders Indicator increased to 69.1 in
September from 64.0 in August, the highest level
since November 2012 when the series started. The
latest increase in New Orders marked the fifth
consecutive monthly rise and put it above the three
month average of 65.0.
Credit costs faced by Indian companies increased in
September with the Interest Rates Paid Indicator
rising to 68.4, the highest reading since July, and up
3.6 points from August when the indicator stood at
64.8.
Feb-13
The Production Indicator increased to 67.3 in
September from 59.9 in August, the highest reading
since the series started in November 2012 and up
significantly from the low seen in April.
The Effect of the Rupee Exchange Rate Indicator fell
for the third consecutive month in September, with
businesses reporting that the depreciation in the
currency was hurting business.
Jan-13
The fall in the overall Business Indicator was driven
by a marked fall in the construction sector, with more
businesses reporting worse conditions than a month
earlier. There was a moderate decline in services,
while manufacturing remained broadly unchanged,
but both still remained in expansion.
The Financial Position Indicator increased to 72.3 in
September from 68.1 in August, the highest since the
series started in November 2012, with the indicator
trending upwards since April save for a blip down in
July. A sharp deterioration in the financial positions of
construction firms was offset by an increase in
manufacturing and also service sector firms.
Dec-12
Most of the indicators in the report showed a
continued recovery in September, and it is likely that
the downturn in overall business conditions was due
to concerns surrounding the rupee, with companies
reporting further pain from the decline in the exchange
rate.
greater optimism among manufacturers.
Nov-12
The MNI India Business Indicator fell to 59.4 in
September from 64.0 in August, but remained
significantly above the low seen in April.
6

8. 7
MNI India Business Report - September 2013
Overview
Jul-13
Aug -13
Sep -13
Highest
Since
Lowest
Since
3-Month
Average
Monthly
Change
Monthly %
Change
Current Conditions
51.8
64.0
59.4
-
Jul-13
58.4
-4.6
-7.3%
Future Expectations
67.6
75.5
77.1
series high
-
73.4
1.6
2.2%
Current Conditions
56.9
59.9
67.3
series high
-
61.4
7.4
12.4%
Future Expectations
76.3
71.8
76.8
series high
-
75.0
5.0
7.0%
Current Conditions
61.9
64.0
69.1
series high
-
65.0
5.1
7.9%
Future Expectations
76.8
75.0
78.5
series high
-
76.8
3.5
4.7%
Current Conditions
57.7
55.0
63.2
series high
-
58.6
8.2
14.8%
Future Expectations
68.9
62.6
75.5
series high
-
69.0
12.9
20.6%
Current Conditions
55.4
61.7
64.0
series high
-
60.4
2.3
3.7%
Future Expectations
68.8
67.4
70.3
series high
-
68.8
2.9
4.3%
Current Conditions
49.4
47.0
52.9
May-13
-
49.8
5.9
12.6%
Future Expectations
43.6
39.4
57.5
May-13
-
46.8
18.1
46.0%
Current Conditions
51.3
54.1
53.3
-
Jul-13
52.9
-0.8
-1.6%
Future Expectations
53.6
52.0
53.4
Jul-13
-
53.0
1.4
2.8%
MNI India Business
Indicator
Production
New Orders
Export Orders
Productive Capacity
Order Backlogs
Employment
Inventories
Current Conditions
55.9
51.6
60.1
series high
-
55.9
8.5
16.4%
Future Expectations
35.5
52.9
53.7
series high
-
47.4
0.8
1.5%
Current Conditions
79.6
66.7
74.1
Jul-13
-
73.5
7.4
11.1%
Future Expectations
74.0
62.1
72.9
Jul-13
-
69.7
10.8
17.4%
Current Conditions
67.1
56.6
61.8
Jul-13
-
61.8
5.2
9.3%
Future Expectations
73.7
57.0
67.0
Jul-13
-
65.9
10.0
17.5%
Current Conditions
57.6
68.1
72.3
series high
-
66.0
4.2
6.1%
Future Expectations
73.3
78.0
83.3
series high
-
78.2
5.3
6.8%
Current Conditions
68.6
64.8
68.4
Jul-13
-
67.3
3.6
5.6%
Future Expectations
65.9
70.2
65.2
-
May-13
67.1
-5.0
-7.1%
Input Prices
Prices Received
Financial Position
Interest Rates Paid
Effect of Rupee Exchange
Current Conditions
45.1
39.6
31.6
-
series low
38.8
-8.0
-20.3%
Future Expectations
55.8
43.8
32.7
-
series low
44.1
-11.1
-25.4%
Current Conditions
57.1
52.5
58.4
Jun-13
-
56.0
5.9
11.2%
Future Expectations
50.9
49.6
56.1
May-13
-
52.2
6.5
13.0%
Current Conditions
57.1
56.3
61.9
series high
-
58.4
5.6
10.0%
Future Expectations
60.9
59.0
65.3
series high
-
61.7
6.3
10.7%
Supplier Delivery Times
Availability of Credit

9. w
Economic news over
the past month has
done little to lessen
the economic gloom
surrounding India.
Economic growth in India slowed to 4.4% in
April-June 2013 compared with the same period a
year earlier, the lowest in four years.

10. 9
Spitzzeile Titel
Economic Landscape
Decisive policy action from the government remains
lacking and the possibility of any substantial reform
appears unlikely due to the looming national
elections in the first half of 2014.

11. MNI India Business Report - September 2013
Economic news over the past month has done little to
lessen the economic gloom surrounding India. Slow
economic growth, the fall in the rupee, stubborn
inflation and high fiscal and current account deficits,
all continue to plague India. GDP growth slumped to
4.4% in April-June compared with the same period a
year earlier, the weakest since 2009. While the
current account deficit and industrial production
improved slightly and prices eased in August, overall
demand in the economy remained weak. The new
governor of the Reserve Bank of India, Raghuram
Rajan, has so far managed to placate markets and his
first move to raise interest rates has been seen as a
positive step to curb inflation – albeit at the expense
of much needed growth.
Slowest GDP growth in four years
Economic growth in India slowed to 4.4% in AprilJune 2013 compared with the same period a year
earlier, the lowest in four years. Output was hit due to
a contraction in manufacturing, declining by 1.2% on
the year, compared with a fall of 1% in April-June
2012, and mining & quarrying which declined by
2.8% compared with growth of 0.4% in the same
period a year earlier. Services, which accounts for the
highest proportion of total GDP, grew at 6.6% on the
year, compared with growth of 7.6% in 2012.
Slowing Economic Growth
12
The continued weakness is another blow to the
government, which has been trying to adopt measures
to boost the economy, and the latest data makes it
less likely the government will achieve the Reserve
Bank of India’s GDP forecast of 5.5% for the fiscal
year 2013-14. The decision by new governor of the
central bank, Raghuram Rajan, to increase the policy
rate to 7.5% from 7.25% on September 20 to curb
inflation will also hamper growth.
While a good monsoon has raised hopes for stronger
agriculture growth, weak growth in both services and
industry is likely to remain, as both global and
domestic factors continue to weigh.
Decisive policy action from the government remains
lacking and the possibility of any substantial reform
appears unlikely due to the looming national elections
in the first half of 2014.
Industrial production improves
Industrial production posted a surprisingly strong
increase of 2.6% in July compared with a year earlier.
Although growth is still weak, it was an improvement
over the past two months which registered a decline
of 2.3% on average. Manufacturing rose 3.0%, but
mining continued to fall, dropping by 2.3% in July.
Industrial Production Growth
10
8
10
6
8
4
6
2
4
0
2
-2
GDP Growth y/y %
Source: Central Statistics Organisation, India
Industrial Production y/y %
Source: Central Statistics Organisation, India
Jul-13
May-13
Mar-13
Jan-13
Nov-12
Sep-12
Jul-12
May-12
Mar-12
Q1
Q3
Q1
Q3
Q1
Q3
Q1
Q3
Q1
2009 2009 2010 2010 2011 2011 2012 2012 2013
Jan-12
-4
0
10

12. MNI India Business Report - September 2013
To sustain growth, the government needs to take
some bold measures such as fast track implementation
of projects, simplify taxation laws and revive private
investments in manufacturing.
The trade deficit shrinks in August
The trade deficit narrowed to $10.91 billion in August
from $12.29 billion in July and below the $14.2
billion shortfall posted in August a year earlier.
India’s exports grew by 13.0% in August to $26.14
billion compared with $23.13 billion in the same
month a year earlier. Imports were little changed
falling 0.68% to $37.05 billion, down from $37.31 in
August 2012.
substantially weaker Rupee should also eventually
help to boost the competitiveness of Indian goods.
India’s current account deficit rose to 4.9% of GDP in
the first quarter ending June compared with 3.6% in
the quarter ending March and also above the 3.9%
posted in the same period a year earlier.
The August trade data pointed to some improvement,
although the fall in the rupee, which will have the
immediate effect of increasing the cost of imports,
makes it less likely that the government will hit its
current account deficit target of 3.7% of GDP for the
fiscal year.
No escape from rising prices
India’s headline inflation, measured by the wholesale
price index, increased to 6.1% in August from 5.79%
in July, further above the government’s end-year
target of 5.5%.
India‘s Trade Deficit
12000
Food price inflation increased to 18.18% in August
against 11.91% in July, while fuel prices rose
marginally to 11.34% on the year from 11.31% in the
previous month.
10000
8000
6000
4000
Wholesale Price Inflation Rising Again
2000
0
2006
2007
2008
2009
2010
2011
2012
Merchandise Trade Balance (INR B)
Source: Reserve Bank of India
9
8
7
6
5
4
Wholesale Price Inflation y/y %
An improvement in the external environment, with a
rise in demand from the US and major European
economies, has helped demand for exports. A
Source: Office of the Economic Advisor, India
Aug-13
Jun-13
Apr-13
Feb-13
Dec-12
Oct-12
Aug-12
3
Jun-12
Demand for oil has continued to strain the import bill
due to the continued rise in the oil price, with 70% of
India’s oil and gas requirements being imported. Gold
imports plummeted from $2.2 billion to $650 million
in August on the back of stringent taxes and import
controls enforced by the government.
Apr-12
11

13. MNI India Business Report - September 2013
Although, consumer price inflation eased to 9.52% in
August from 9.64% in July, it remained stubbornly
high.
have led to significant capital outflows. The rupee has
fallen around 24% since May to reach an all time low
against the US dollar at the end of August.
The authorities face the problem of stabilising the
currency and boosting the economy as well as
ensuring inflation is kept in check. In a surprise move
the new governor of the central bank, Raghuram
Rajan, increased the policy repo rate on September
20 to 7.5% from 7.25% citing inflation worries. The
move should also help to bolster the currency.
On September 4, RBI Governor Rajan took office and
announced a number of steps to restore confidence
and the currency subsequently rebounded nearly
5.5% as of September 18.
The government’s efforts to reduce the fuel subsidy
bill (by raising administered fuel prices), the ongoing
weakness of the rupee and supply side shortages
suggest that reducing inflation from current levels will
be challenging.
Measures included the introduction of swap windows
to banks for fresh dollar deposits mobilised from NRIs
(Non-Resident Indians), a roadmap for more rupee
trade settlements and the introduction of derivative
products such as interest rate swaps. These were in
addition to certain measures introduced by the
outgoing governor, most critical of which was the
introduction of a swap facility by the RBI to sell dollars
to the nation’s largest oil importers.
Rajan also intends to liberalise banking and provide
greater financial access to people in all parts of the
country. He expects to announce a round of new bank
licences early next year which would allow foreign
banks to operate in India as wholly owned subsidiaries.
Sticky Consumer Price Inflation
11.5
11.0
In addition to these measures, the Fed’s decision to
delay the taper of its bond buying programme has
provided some relief and strength to the currency.
10.5
10.0
9.5
9.0
GDP Consensus Forecast Revised Down
Aug-13
Jun-13
Apr-13
Feb-13
Dec-12
Oct-12
Aug-12
Jun-12
Apr-12
8.5
Source: MOSPI
Measures to contain the fall of the rupee
The Rupee has fallen sharply since US Federal
Reserve Chairman Ben Bernanke warned in May that
the Fed could start to taper its bond purchases this
year. India has been hit harder than other emerging
markets due to its sizeable current account deficit and
also a growing inability of the government to move
forward with reforms to drive investment – all of which
64
16
62
14
60
12
58
Consumer Price Inflation y/y %
10
56
8
54
6
52
4
50
2
48
0
Jan-13
INR/USD y/y %
INR/USD (RHS)
Source: MOSPI
Mar-13
May-13
Jul-13
12

14. 13
Spitzzeile Titel
Indicators
Decisive policy action from the government remains
lacking and the possibility of any substantial reform
appears unlikely due to the looming national
elections in the first half of 2014.

15. MNI India Business Report - September 2013
59.4
MNI India Business Indicator
Drops Back In September
Recent official data has highlighted the continued
weakness in the economy. GDP growth slowed to
4.4% in the April-June quarter compared with the
same period last year, the slowest growth since 2009.
In spite of the turmoil in the currency and equity
markets, the Business Indicator has trended higher
since April when it fell to 47.5, below the breakeven
50 level.
Expectations for conditions in three months’ time
brightened further in September, rising to 77.1 from
75.5 previously, potentially helped by the upcoming
festival season. It would also appear that companies
have some faith that the government and the central
bank will help to steer India through the current
turmoil.
75
70
65
60
55
50
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Feb-13
45
Jan-13
The 7.3% monthly decline in the Business Indicator
was driven by a marked fall in the construction sector,
with more businesses reporting worse conditions than
a month earlier. There was a more moderate decline
in services, while manufacturing remained broadly
unchanged but both still remained in expansion.
80
Dec-12
Most of the indicators in the report showed a continued
recovery in September, and it is likely that the
downturn in overall business conditions was due to
concerns surrounding the rupee, with companies
reporting further pain from the decline in the exchange
rate.
MNI India Business Indicator
Nov-12
The MNI India Business Indicator fell to 59.4 in
September from 64.0 in August, but remained
significantly above the low seen in April.
Current Conditions
Future Expectations
Manufacturers reported an increase in future
conditions, while the indicator declined for services
and construction, although remained above the
breakeven level.
For business expectations in the next three months,
thirteen out of the 15 indicators increased, with the
exception of Interest Rates Paid and the Effect of the
Rupee Exchange Rate.
MNI India Business Indicator
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
56.1
47.5
50.5
60.6
51.8
64.0
59.4
Future Expectations
55.4
49.7
52.0
60.6
67.6
75.5
77.1
14

16. MNI India Business Report - September 2013
67.3
Production
Highest in 11 Months
Having fallen to an average of 47.1 in the quarter
ending June, pointing to contraction, the Production
Indicator bounced back sharply to 61.4 in the quarter
ending September.
Future expectations for Production remained higher
than current conditions, suggesting that firms are
optimistic and expect improved demand for their
goods and services. Expectations for the following
three months increased to 76.8 in September, up
from 71.8, a rise of 7% on the month.
75
70
65
60
55
50
45
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Apr-13
Mar-13
40
Feb-13
Production has bounced back sharply in recent
months, having hit a low of 41.0 in April and remained
below 50 in May. The pick-up came ahead of latest
official data on industrial production, which showed
an increase of 2.6% in July from the same period last
year, the highest growth since March 2013. Growth in
New Orders, which has strengthened each month
since May, may also support Production over the
coming months.
80
Jan-13
The manufacturing sector led the improvement while
the Production Indicator for Services and Construction
fell between August and September, but remained
above the breakeven 50 level.
Production Rises Sharply
Dec-12
The Production Indicator increased to 67.3 in
September from 59.9 in August, the highest reading
since the series started in November 2012.
Nov-12
15
Current Conditions
Future Expectations
MNI Production Leads the Way
65
4
60
3
2
55
1
50
0
45
-1
40
-2
35
-3
-4
30
Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13
Industrial Production y/y % (RHS)*
MNI Production
*Source: Central Statistical Organisation, India
Production
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
53.8
41.0
45.6
54.8
56.9
59.9
67.3
Future Expectations
55.0
41.3
51.6
59.4
76.3
71.8
76.8

17. MNI India Business Report - September 2013
69.1
New Orders
Record High
75
65
55
45
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Feb-13
35
Jan-13
Expectations for New Orders in three months also
increased in September, to 78.5, up from 75.0 in
August. With the festive season approaching,
companies reported high expectations for New Orders
and increased demand for goods and services.
85
Dec-12
The latest increase in New Orders marked the fifth
consecutive monthly rise and put it above the three
month average of 65.0. The pick-up in September
could prompt a further improvement in industrial
output in the future, as the two indicators are closely
correlated. Manufacturing and construction firms both
indicated an improvement in New Orders, while
services posted a fall compared with August, although
remained well above the 50 breakeven mark.
New Orders Highest on Record
Nov-12
The New Orders Indicator increased to 69.1 in
September from 64.0 in August, the highest level
since November 2012 when the series started.
Current Conditions
Future Expectations
“Production has increased in the current
month due to new orders coming.”
Building materials Construction Company
New Orders
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
53.4
39.7
44.9
58.7
61.9
64.0
69.1
Future Expectations
54.9
40.4
46.4
58.4
76.8
75.0
78.5
16

18. MNI India Business Report - September 2013
63.2
Export Orders
Highest since February
While the rupee has bounced back from the low of
68.85 on August 28, the currency is still some 14%
down since the beginning of April. The fall in the
currency will have the immediate effect of making
Indian exports more competitive, although India’s
reliance on imports of oil means increased costs for
most companies.
Expectations for three months’ time also increased to
75.5 in September from 62.6 in August as companies
look for an export boost following the currency
depreciation, coupled with an improvement in trading
partners’ demand conditions.
75
70
65
60
55
50
45
Sep-13
Aug-13
Jul-13
Jun-13
40
May-13
The rupee has fallen sharply against the US dollar
since May, when expectations grew that the US
Federal Reserve would cut back on Quantitative
Easing soon. India has been one of the worst affected
countries due to its large current account deficit and
fiscal deficit.
80
Apr-13
The improvement in the indicator, the highest reading
since the series began in February this year, was
driven mainly by manufacturing companies which
saw a sharp improvement. The Indicator for
construction companies dropped to the breakeven
mark, while services sector companies fell slightly but
remained over 50.
Export Orders Pick Up in September
Mar-13
Export Orders increased sharply to 63.2 in September
from 55.0 in August, continuing the increase seen
since orders fell into contraction in April.
Feb-13
17
Current Conditions
Future Expectations
India‘s Exports of Goods and Services
16000
14000
12000
10000
8000
6000
4000
2000
0
2005 2006 2007 2008 2009 2010 2011 2012
Exports of Goods and Services (INR B, 2004-2005 Prices)
Source: Central Statistical Organisation, India
Export Orders
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
49.5
41.3
43.7
Future Expectations
54.1
45.2
50.9
52.9
57.7
55.0
63.2
62.6
68.9
62.6
75.5

19. MNI India Business Report - September 2013
64.0
Productive Capacity
Highest since November
Productive Capacity hit the highest level since the
series began in November 2012, rising to 64.0 in
September from 61.7 in August.
Productive Capacity on Upward Trend
70
The indicator has been on a rising trend since April
this year, increasing strongly by 32.0% in the quarter
ending September to 60.4, compared with 45.7 in the
quarter ending June.
65
The improvement in Productive Capacity in September
was led by manufacturing and construction
companies. Capacity of service sector firms remained
broadly unchanged, but at a higher level than both
manufacturing and construction.
50
Companies remained more optimistic about the
future, as Expectations for Productive Capacity in
three months’ time rose to 70.3 from 67.4 in August
with increases across all sectors.
60
55
45
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
Nov-12
40
Current Conditions
Future Expectations
Productive Capacity
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
52.3
41.0
45.6
50.6
55.4
61.7
64.0
Future Expectations
54.8
40.7
50.9
56.7
68.8
67.4
70.3
18

20. 19
Spitzzeile Titel
w
Production and New
Orders picked up led
by optimism among
manufacturers.
The Production Indicator rose to 63.2 from 59.9 in
August.

21. MNI India Business Report - September 2013
52.9
Order Backlogs
Back Above 50
Order Backlogs moved back above the breakeven 50
level in September, rising to 52.9 from 47.0 in August,
suggesting a strengthening in demand conditions this
month.
Order Backlogs Expectations Up Makedly
60
55
Services, manufacturing and construction firms all
showed growth in backlogs in September, following
the contraction seen in August.
In September, Order Backlogs increased to their
highest level since May. In contrast to most other
indicators in the report which showed a quarterly
increase, there was a drop 9.8% in the quarter ending
September compared with the quarter ending June.
The Future Expectations Indicator jumped to 57.5 in
September from 39.4 in August, the first time above
the benchmark level of 50 since May.
50
45
40
35
30
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
Future Expectations
Order Backlogs
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
-
57.8
59.3
48.5
Future Expectations
-
-
59.6
32.8
49.4
47.0
52.9
43.6
39.4
57.5
20

22. 21
MNI India Business Report - September 2013
53.3
Employment
Trend Remains Stable
The Employment Indicator has remained relatively
stable since the series started in April, and September
saw little change, with companies reporting moderate
employment growth.
Between August and September the Employment
Indicator fell 1.6% from 54.1 to 53.3, though was still
above the three month average of 52.9.
The small fall was led by a decline in the indicator for
manufacturing companies, although this remained
above the 50 breakeven level. There was a rise in the
indicator for services compared with August, with it
moving further into expansion territory and rising
above that for manufacturing.
Employment Fall Slightly
56
54
52
50
48
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
For construction, the employment indicator has
remained the same for the past two months with most
firms saying that the number of employees was “just
right”.
Expectations for employment in three months’ time
increased by 2.8% to 53.4 in September, up from
52.0 in August.
Future Expectations
“There are working capital constraints, skills
gaps, and a shortage of manpower in core
areas, and low morale of employees due to
no pay revision since 1997.”
Automobile parts manufacturer
The increase in the future conditions indicator was led
by manufacturing companies. Services posted a fall
but remained in expansion, while the indicator for
construction fell below the 50 breakeven level.
Employment
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
-
53.2
51.8
Future Expectations
-
-
51.8
52.3
51.3
54.1
53.3
52.3
53.6
52.0
53.4

23. MNI India Business Report - September 2013
60.1
Inventories
Rises to New High
Stock levels at companies touched a new record high
this month as the Inventory level of Finished Goods
Indicator increased by 16.4% to 60.1 in September
from 51.6 in August.
Inventories Recover in September
60
55
Both manufacturing and construction companies
indicated an increase in stocks in September as
compared with August, with manufacturing inventories
moving from contraction to expansion.
Future expectations for the next three months also
increased, rising to 53.7 in September from 52.9 in
August. The indicator posted its highest reading since
May 2013 and it was the second consecutive month
the indicator was above 50 benchmark level.
50
45
40
35
30
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
Future conditions for inventories have been in
contraction for manufacturing companies for the past
two months, but rose above 50 in September.
Future Expectations
Inventories
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Current Conditions
-
Future Expectations
-
Aug-13
Sep-13
59.9
47.8
48.9
-
48.6
31.0
55.9
51.6
60.1
35.5
52.9
53.7
22

24. 23
MNI India Business Report - September 2013
74.1
Input Prices
Increase in September
The Input Price indicator increased to 74.1 in
September, from 66.7 in August.
Oil prices have risen sharply in recent months.
Coupled with the depreciation in the rupee businesses
face a significant increase in the cost of their imported
raw materials.
Both services and manufacturing companies indicated
an increase in the Input Price Indicator in September,
with growth fastest in the latter.
Input Prices at High Levels
85
80
75
70
65
60
Expectations for three months’ time also increased, to
72.9 in September from 62.1 in August, the highest
reading since July. On a quarterly basis, though,
future expectations of input prices fell by 1.7% in the
quarter ending September compared with the quarter
ending June.
In September, expectations for input price growth in
the next three months in construction and
manufacturing outstripped services.
55
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
Future Expectations
“We have increased the prices of our
products due to an increase in the input
prices”.
Electrical components manufacturer
“Input Prices are high due to the high
exchange rate“.
Industrial goods manufacturer
Input Prices
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
-
67.9
64.4
78.6
79.6
66.7
74.1
Future Expectations
-
-
66.9
74.9
74.0
62.1
72.9

25. MNI India Business Report - September 2013
Prices Received
Inflationary Pressures Up in
Third Quarter
In spite of the large monthly drop in August, the
indicator has trended upwards since June, consistent
with the recent acceleration in consumer prices.
Official inflation data showed the Wholesale Price
Index rose 6.1% on the year in August from 5.79% in
July, led by the increased cost of food.
70
65
60
55
50
45
Current Conditions
Future Expectations
Prices Received and Wholesale Price Inflation
80
The continued high level of inflation expectations was
cited by new Reserve Bank of India Governor
Raghuram Rajan as the reason the central bank
surprisingly hiked its key interest rate 25 basis points
to 7.5% in September.
10
9
70
8
60
7
50
Expectations for Prices Received in three months’
time picked up in September to 67.0 from 57.0 in
August.
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Feb-13
40
Jan-13
Prices Received rose sharply in the three months to
September to 61.8, having fallen into contraction in
the quarter ending June to 44.8.
75
Dec-12
The Prices Received Indicator rose to 61.8 in
September from 56.6 in August, with increases seen
in all sectors, led by construction which saw a jump
in prices from contraction to expansion. Higher prices
charged by manufacturing and services companies
also boosted the headline indicator.
Prices Received Higher Again
Nov-12
After inflationary pressures eased back in August,
Prices Received turned higher again in September,
following recent strong growth in Input Prices.
61.8
6
40
5
4
30
Nov-12
Jan-13
Mar-13
May-13
Jul-13
Sep-13
MNI Prices Received
Wholesale Price Inflation y/y %*
*Source: Office of the Economic Advisor, India
Prices Recived
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
53.1
42.2
41.5
Future Expectations
57.8
45.1
47.3
50.8
67.1
56.6
61.8
49.2
73.7
57.0
67.0
24

26. MNI India Business Report - September 2013
72.3
Financial Position
At Record High
Both current conditions and future expectations have
trended higher since bottoming in May and April
respectively. For the quarter ending September, the
Financial Position Indicator increased to 66.0 from
57.5 in the quarter to June and 58.0 in the three
months to March. Expectations jumped to an average
of 78.2 in the three months to September compared
with 57.5 in the previous quarter.
65
55
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Apr-13
45
Mar-13
Expectations for three months’ time also improved.
The future conditions indicator rose to 83.3 in
September from 78.0 in August driven by an
improvement in expectations of the construction, and
manufacturing companies included in the survey. On
the contrary, services companies expectations
worsened in September but remained at high levels.
75
Feb-13
A sharp deterioration of the financial positions of
construction firms was offset by an improvement in
manufacturing and also service sector firms.
85
Jan-13
The Financial Position Indicator increased to 72.3 in
September from 68.1 in August, the highest since the
series started in November 2012, with the indicator
trending upwards since April save for a blip down in
July.
Financial Position Improves
Dec-12
For the second consecutive month, the current
Financial Position of companies improved led by
greater optimism among manufacturers.
Nov-12
25
Current Conditions
Future Expectations
“Business is growing and the financial
position of the company is also good,
company is mainly in exports so rupee
depreciation is helping the company, number
of clients is also increasing.”
Support services company
Financial Position
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Current Conditions
55.1
53.4
56.1
Future Expectations
56.2
56.0
53.5
Sep-13
63.0
57.6
68.1
72.3
63.1
73.3
78.0
83.3

27. MNI India Business Report - September 2013
68.4
Interest Rates Paid
Highest since July
Credit costs faced by Indian companies increased in
September with the Interest Rates Paid Indicator
rising to 68.4 in September, the highest reading since
July, and up 3.6 points from August when the
indicator stood at 64.8.
In July, the last Governor of the Central Bank, Duvurri
Subbarao effectively increased interest rates without
touching the policy rate. He raised the cost of
borrowing under the marginal standing facility by 200
basis points to 10.25% in order to bring stability to
the foreign exchange market in the short term.
Interest Rates Paid
75
70
65
60
55
50
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Although more construction companies reported they
paid the same interest rates in September relative to
August, more services and manufacturing companies
said they faced higher credit costs. The percentage of
services companies reporting higher interest rates
paid compared with the previous month increased to
41% in September from 30% in August while the
percentage of manufacturing companies rose to 42%
in September from 36% in August.
Feb-13
45
Current Conditions
Future Expectations
While expectations for three months’ time dropped to
65.2 in September from 70.2 in August, the survey
was carried out before the decision by the Reserve
Bank of India to increase official interest rates in
September. The decline this month was due to more
manufacturing companies reporting that they expected
interest rates to remain the same rather than increase
over the next three months.
Interest Rates Paid
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
65.5
52.9
Future Expectations
63.7
52.9
52.8
67.2
68.6
64.8
68.4
50.0
71.7
65.9
70.2
65.2
26

28. 27
Spitzzeile Titel
w
The Effect of the
Rupee Exchange Rate
Indicator dropped to
31.6 in September
from 39.6 in August.
Depreciation of the Rupee continued to hurt
business, with current and future indicators
worsening.

29. MNI India Business Report - September 2013
31.6
Effect of Rupee Exchange Rate
At Record Low
The Effect of the Rupee Exchange Indicator fell for the
third consecutive month in September, with companies
reporting that the depreciation in the currency was
hurting business.
Currency depreciations are often thought to be positive
for businesses. The plunge in the Effect of the Rupee
Exchange Rate Indicator, however, belies this and
shows how India’s reliance on imports of oil, which
have seen a sharp price rise, are more important than
the competitive advantage the devaluation brings for
exporters.
Effect of Rupee Exchange Rate
80
70
60
50
40
Expectations for three months’ time worsened for the
third consecutive month. The Future Expectations
Indicator fell to 32.7 in September from 43.8 in
August, suggesting businesses are expecting further
pain in the future.
The rupee has fallen sharply since US Federal Reserve
Chairman Ben Bernanke warned in May that the
Federal Reserve could start to taper its bond purchases
this year. The announcement was followed by large
capital outflows, pushing the rupee down 24% to hit
an all-time low against the US dollar at the end of
August.
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Apr-13
Mar-13
Feb-13
Jan-13
Dec-12
The Effect of the Rupee Exchange Rate Indicator
dropped to 31.6 in September from 39.6 in August,
the lowest level since the series began in November
2012.
Nov-12
30
Current Conditions
Future Expectations
“Business condition is not good, financial
position is not good because of Rupee
fluctuations. The company imports some raw
materials so the exchange rate is hurting.“
Manufacturer
On September 4, new Reserve Bank of India Governor
Rajan and announced a number of steps to restore
confidence. The currency has subsequently stabilised.
Effect of Rupee Exchange Rate
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
69.1
47.8
53.3
66.6
45.1
39.6
31.6
Future Expectations
66.6
54.2
49.4
73.1
55.8
43.8
32.7
28

30. 29
MNI India Business Report - September 2013
58.4
Supplier Delivery Times
Highest since June
Supplier Delivery Times lengthened in September
with the indicator standing at 58.4, up from 52.5 in
August.
All sectors reported higher delivery times compared
with August.
Expectations for the next three months also improved,
with the indicator measuring future conditions jumping
back over the 50 break even, to 56.1 in September
from 49.6 in August.
Supplier Delivery Times Move Higher
59
54
49
44
39
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
Future Expectations
Supplier Delivery Times
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Current Conditions
-
51.9
53.1
Future Expectations
-
-
59.0
59.6
57.1
52.5
58.4
39.5
50.9
49.6
56.1

31. MNI India Business Report - September 2013
61.9
Availability of Credit
Rises Markedly
60
55
50
45
Sep-13
Aug-13
Jul-13
Jun-13
May-13
Apr-13
Feb-13
Mar-13
40
Jan-13
Expectations for three months’ time rose to 65.3 in
September from 59.0 in August, posting a record high
as manufacturing, services and construction
companies reported improved future conditions
regarding credit availability in September.
65
Dec-12
The latest improvement was driven by improved credit
availability for both manufacturing and services
companies.
Availability of Credit Rises Further
Nov-12
The indicator measuring the Availability of Credit
increased to 61.9 in September from 56.3 in August,
posting the highest reading since the series began in
November 2012 and continuing the upward trend
seen since April 2013.
Current Conditions
Future Expectations
RBI Domestic Credit
100%
8,000
7,000
80%
6,000
5,000
60%
4,000
40%
3,000
2,000
20%
1,000
0
0%
Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13
Domestic Credit y/y % (RHS)
Domestic Credit (INR B)
Source: Reserve Bank of India
Availability of Credit
Mar-13
Apr-13
May-13
Current Conditions
53.6
41.1
44.8
Future Expectations
53.8
40.9
47.9
Jun-13
Jul-13
Aug-13
Sep-13
51.3
57.1
56.3
61.9
52.2
60.9
59.0
65.3
30

32. 31
Spitzzeile Titel
What the Panel Said
A selection of comments from the MNI India
Business Sentiment panel of companies surveyed
over the past month.

33. MNI India Business Report - September 2013
“Business is not going well because orders are less
but the company is expecting good business in the
coming three months because of festival season.”
Iron and steel manufacturing company
“The company is waiting to grow business in next few
months because of festival season. Production rate is
much increased.”
Food retailer
“Production has decreased compared with last month.
The company is looking for new clients as local market
conditions are not in favour of the business.“
Building materials construction company.
“There is an increase in the cost of raw materials and
there is less demand for products; profitability has
gone down.”
Building materials construction company.
“Imports are more than exports, so it is adversely
affecting our business.”
Chemicals manufacturing company
“Input prices are high due to the poor exchange rate.
Currently market is not good, but there are chances of
improvements.”
Electrical components manufacturing company
“Petrol prices are higher affecting transportation
costs, labour problems are there and interest rates are
quite high.”
Medical equipment manufacturing company
“Business is growing and the financial position of the
company is also good, company is mainly in exports
so rupee depreciation is helping the company, number
of clients is also increasing.”
Support services company
“Business is same as compared with last month, but
expecting a slow down due to the monsoon.”
Real estate holding and development company
“Business is going good and the financial position of
company is better as compared with last month.”
Hotelier
“We don‘t export our products, but 60% of the input
devices are purchased from Europe, so declining Rupee
is affecting a lot.”
Electrical components manufacturing company
32

34. 33
Spitzzeile Titel
Data Tables
34 Historical Summary
35
Historical Records
36
Historical Records - Quarterly

35. 34
MNI India Business Report - September 2013
Historical Summary
2012
2013
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
MNI India Business Indicator
Current Conditions
56.8
63.6
60.6
53.6
56.1
47.5
50.5
60.6
51.8
64.0
59.4
-
-
-
53.8
55.4
49.7
52.0
60.6
67.6
75.5
77.1
58.1
66.0
59.4
55.6
53.8
41.0
45.6
54.8
56.9
59.9
67.3
-
-
-
49.7
55.0
41.3
51.6
59.4
76.3
71.8
76.8
43.3
49.5
50.8
55.8
53.4
39.7
44.9
58.7
61.9
64.0
69.1
-
-
-
53.2
54.9
40.4
46.4
58.4
76.8
75.0
78.5
Current Conditions
-
-
-
53.7
49.5
41.3
43.7
52.9
57.7
55.0
63.2
Future Expectations
-
-
-
56.0
54.1
45.2
50.9
62.6
68.9
62.6
75.5
46.2
57.4
54.0
56.5
52.3
41.0
45.6
50.6
55.4
61.7
64.0
-
-
-
56.1
54.8
40.7
50.9
56.7
68.8
67.4
70.3
Current Conditions
-
-
-
-
-
57.8
59.3
48.5
49.4
47.0
52.9
Future Expectations
-
-
-
-
-
-
59.6
32.8
43.6
39.4
57.5
Current Conditions
-
-
-
-
-
53.2
51.8
52.3
51.3
54.1
53.3
Future Expectations
-
-
-
-
-
-
51.8
52.3
53.6
52.0
53.4
Current Conditions
-
-
-
-
-
59.9
47.8
48.9
55.9
51.6
60.1
Future Expectations
-
-
-
-
-
-
48.6
31.0
35.5
52.9
53.7
Current Conditions
-
-
-
-
-
67.9
64.4
78.6
79.6
66.7
74.1
Future Expectations
-
-
-
-
-
-
66.9
74.9
74.0
62.1
72.9
44.9
54.9
55.4
59.8
53.1
42.2
41.5
50.8
67.1
56.6
61.8
-
-
-
55.8
57.8
45.1
47.3
49.2
73.7
57.0
67.0
54.1
60.6
62.6
56.3
55.1
53.4
56.1
63.0
57.6
68.1
72.3
-
-
-
51.6
56.2
56.0
53.5
63.1
73.3
78.0
83.3
Current Conditions
-
-
-
69.2
65.5
52.9
52.8
67.2
68.6
64.8
68.4
Future Expectations
-
-
-
-
63.7
52.9
50.0
71.7
65.9
70.2
65.2
53.8
61.8
68.5
77.8
69.1
47.8
53.3
66.6
45.1
39.6
31.6
-
-
-
75.5
66.6
54.2
49.4
73.1
55.8
43.8
32.7
Current Conditions
-
-
-
-
-
51.9
53.1
59.6
57.1
52.5
58.4
Future Expectations
-
-
-
-
-
-
59.0
39.5
50.9
49.6
56.1
52.8
50.5
41.5
57.1
53.6
41.1
44.8
51.3
57.1
56.3
61.9
-
-
-
57.6
53.8
40.9
47.9
52.2
60.9
59.0
65.3
Future Expectations
Production
Current Conditions
Future Expectations
New Orders
Current Conditions
Future Expectations
Export Orders
Productive Capacity
Current Conditions
Future Expectations
Order Backlogs
Employment
Inventories
Input Prices
Prices Received
Current Conditions
Future Expectations
Financial Position
Current Conditions
Future Expectations
Interest Rates Paid
Effect of Rupee Exchange Rate
Current Conditions
Future Expectations
Supplier Delivery Time
Availability of Credit
Current Conditions
Future Expectations

36. 35
MNI India Business Report - September 2013
Historical Records
2012-2013
Minimum
Maximum
Median
Mean
Current Conditions
47.5
64.0
56.8
56.8
Future Expectations
49.7
77.1
61.5
58.0
MNI India Business Indicator
Production
Current Conditions
41.0
67.3
56.2
56.9
Future Expectations
41.3
76.8
60.2
57.2
Current Conditions
39.7
69.1
53.7
53.4
Future Expectations
40.4
78.5
60.4
56.7
Current Conditions
41.3
63.2
52.1
53.3
Future Expectations
45.2
75.5
59.5
59.3
Current Conditions
41.0
64.0
53.2
54.0
Future Expectations
40.7
70.3
58.2
56.4
Current Conditions
47.0
59.3
52.5
51.2
Future Expectations
32.8
59.6
46.6
43.6
Current Conditions
51.3
54.1
52.7
52.8
Future Expectations
51.8
53.6
52.6
52.3
Current Conditions
47.8
60.1
54.0
53.8
Future Expectations
31.0
53.7
44.3
48.6
Current Conditions
64.4
79.6
71.9
71.0
Future Expectations
62.1
74.9
70.2
72.9
New Orders
Export Orders
Productive Capacity
Order Backlogs
Employment
Inventories
Input Prices
Prices Received
Current Conditions
41.5
67.1
53.5
54.9
Future Expectations
45.1
73.7
56.6
56.4
Current Conditions
53.4
72.3
59.9
57.6
Future Expectations
51.6
83.3
64.4
59.7
Current Conditions
52.8
69.2
63.7
66.4
Future Expectations
50.0
71.7
62.8
65.2
Financial Position
Interest Rates Paid
Effect of Rupee Exchange Rate
Current Conditions
31.6
77.8
55.9
53.8
Future Expectations
32.7
75.5
56.4
55.0
Current Conditions
51.9
59.6
55.4
55.1
Future Expectations
39.5
59.0
51.0
50.9
Current Conditions
41.1
61.9
51.6
52.8
Future Expectations
40.9
65.3
54.7
55.7
Supplier Delivery Time
Availability of Credit

37. MNI India Business Report - September 2013
Historical Records - Quarterly
Q1 13
Q2 13
Q3 13
Quarterly Change
Quarterly % Change
Current Conditions
56.8
52.9
58.4
5.5
10.4%
Future Expectations
54.6
54.1
73.4
19.3
35.7%
MNI India Business Indicator
Production
Current Conditions
56.3
47.1
61.4
14.3
30.2%
Future Expectations
52.4
50.8
75.0
24.2
47.7%
New Orders
Current Conditions
53.3
47.8
65.0
17.2
36.1%
Future Expectations
54.1
48.4
76.8
28.4
58.6%
Current Conditions
51.6
46.0
58.6
12.6
27.5%
Future Expectations
55.1
52.9
69.0
16.1
30.4%
Current Conditions
54.3
45.7
60.4
14.7
32.0%
Future Expectations
55.5
49.4
68.8
19.4
39.2%
Current Conditions
-
55.2
49.8
-5.4
-9.8%
Future Expectations
-
46.2
46.8
0.6
1.4%
Current Conditions
-
52.4
52.9
0.5
0.9%
Future Expectations
-
52.1
53.0
0.9
1.9%
Current Conditions
-
52.2
55.9
3.7
7.0%
Future Expectations
-
39.8
47.4
7.6
19.0%
Current Conditions
-
70.3
73.5
3.2
4.5%
Future Expectations
-
70.9
69.7
-1.2
-1.7%
Current Conditions
56.1
44.8
61.8
17.0
38.0%
Future Expectations
56.8
47.2
65.9
18.7
39.6%
Current Conditions
58.0
57.5
66.0
8.5
14.8%
Future Expectations
53.9
57.5
78.2
20.7
35.9%
Current Conditions
67.4
57.6
67.3
9.7
16.7%
Future Expectations
63.7
58.2
67.1
8.9
15.3%
Current Conditions
71.8
55.9
38.8
-17.1
-30.7%
Future Expectations
71.1
58.9
44.1
-14.8
-25.1%
Current Conditions
-
54.9
56.0
1.1
2.1%
Future Expectations
-
49.3
52.2
2.9
6.0%
Current Conditions
50.7
45.7
58.4
12.7
27.8%
Future Expectations
55.7
47.0
61.7
14.7
31.4%
Export Orders
Productive Capacity
Order Backlogs
Employment
Inventories
Input Prices
Prices Received
Financial Position
Interest Rates Paid
Effect of Rupee Exchange Rate
Supplier Delivery Time
Availability of Credit
36

38. 37
MNI India Business Report - September 2013
Methodology
MNI India Business Sentiment is a monthly poll of
Indian business executives at companies listed on
BSE (formerly known as the Bombay Stock Exchange).
Companies are a mix of manufacturing, service,
construction and agricultural firms.
Respondents are asked their opinion on whether a
particular business activity has increased, decreased
or remained the same compared with the previous
month as well as their expectations for three months
ahead, e.g. Is Production Higher/Same/Lower
compared with a month ago?
A diffusion indicator is then calculated by adding the
percentage share of positive responses to half the
percentage of those respondents reporting no change.
An indicator reading above 50 shows expansion,
below 50 indicates contraction and a result of 50
means no change.
Data is collected via telephone interviews. Around
200 companies are surveyed each month.

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MNI‘s new BRIC indicators explore attitudes, perspectives and confidence in
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Our indicators allow investors, economists, analysts, and companies to identify
economic trends and make informed investment and business decisions. Our data
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Insight and data for better decisions

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