Today's Hot Stories - February 18, 2013
10 Headlines for Today(1) Heavy weights hit campaign trail in Nagaland.
(2) Supreme Court to hear plea today to stay the execution of four Veerappan associates.
(3) PMO unhappy with the idea of cancellation of AugustaWestland Chopper deal.
(4) Russian meteor damage estimated at over $30 million.
(5) Scientists find meteorite fragments near lake.
(6) Air Pollution reaches critical level in India.
(7) Pope Benedict blessing: Tens of thousands hear prayer.
(8) FBI probes cyber attack on Facebook.
(9) Apple second-largest smartphone maker by revenue in India.
(10) Australia-India Test series: Shastri warns Aussies of 'one last mark' by Sachin.
5 Stories for Today
(1) Worries persist as key numbers disappoint again
(2) Moving beyond defence
(3) The Hindu Literary Prize goes to Jerry Pinto
(4) Finance company MD surrenders
(5) Aim for the real Red Fort, Mayawati tells supporters
(1) Worries persist as key numbers disappoint again
A set of mostly indifferent macro-economic data just two weeks before the presentation of the Union Budget can puncture what little optimism there is, and make the budget exercise even more challenging. On February 12, the Central Statistics Office (CSO) released the industrial output data (IIP), which, for December, contracted by 0.6 per cent. Simultaneously, inflation data based on the new consumer price index (more commonly referred to as retail inflation) was released. CPI inflation rose to 10.79 per cent in January from 10.56 per cent in the previous month. Both these are significant by themselves: obviously, they reinforce the perception of a steep slowdown accompanied by persistently high inflation. Policy making already difficult, has to reckon with a further worsening of sentiment.
The bad news did not begin with last Tuesday’s industrial output and inflation data. Many would say that even the last Reserve Bank of India’s (RBI’s) monetary policy statement was not encouraging, even though it cut repo and CRR rates by 0.25 percentage points each. The RBI talked of heightened risks to growth and inflation and did not commit itself to rate cuts over the near-term.
On Thursday, WPI inflation for January came in at an unexpectedly low 6.62 per cent, down from 7.2 per cent in the previous month. This should normally be considered positive. The fall has been steep, and at this rate well on course to go even below the RBI’s March inflation target of 6.8 per cent. Core inflation has remained low. However, the wedge between WPI and CPI inflation continues. The latter plays a significant role in conditioning expectations.
CSO estimate
The other important macro-economic news was the CSO’s advance estimate of gross domestic product (GDP) growth for the current year (2012-13) pegging it at a ten-year low of 5 per cent. Since growth during the first-half of the year has been estimated at 5.4 per cent, the implication is that during the second-half it will be below 5 per cent.
The government, of course, was quick to cast doubts on the veracity of the CSO data, not the arithmetical accuracy per se, but the methodology. Advance estimates are based on actual data for the first eight months or so. The whole year’s estimate is arrived at through an extrapolation. As the chief statistician explained, the methodology will be valid if there is a linear growth. There should not be any sharp deviation from the trend over a large part of the year. The government’s view is that economic activity since November last has been on the upswing. Actual calculations will show economic growth during the second-half at a much higher level than the sub-5 per cent growth implied by the CSO’s advance estimate. The whole year’s growth rate will be at least 5.5 per cent.
An important inference from the above would be that the economy is not doing all that badly even if it is not looking up significantly. Government spokespersons have pointed out that such upward revisions have been made on many occasions in the past. But it is a moot point whether such optimism holds good now.
The industrial output data has been faulted in the past, for being inaccurate, inconsistent and subject to frequent revisions, and the government would normally have discounted it on similar grounds. Yet, coming in conjunction with other data it cannot be ignored this time. It is also more generalised. A revival in manufacturing during the latter part of this fiscal, it was hoped, would push up the GDP growth rate. But the latest IIP figures have put paid to such hopes.
Twin deficits
Finally, a record $20 billion trade deficit, mainly on account of higher petroleum imports, overshadowed the turnaround in exports after a gap of eight months. For the Finance Minister and other policy-makers, by far the biggest macro-economic concerns are the twin deficits — the current account (CAD) and the fiscal deficits. The CAD is expected to reach record levels by the end of this year. The Finance Minister has promised to keep the fiscal deficit within 5.3 per cent of GDP. On the eve of the budget, he could do with better economic news.
Source: The Hindu
(2) Moving beyond defence
Freshly confident from an effective intervention in Mali, President Francois Hollande arrived in India liberated from the shadow of his predecessor Nicolas Sarkozy, a favourite in New Delhi and with India’s business leaders, but ready to build on his legacy. The two countries have established strong diplomatic, political and strategic ties over the years, and the Hollande visit reaffirmed that both are eager to take this engagement to a new level. That keenness was already evident in India’s backing to the French decision in January to send troops to oust Islamist rebels who had taken over parts of Mali, which New Delhi viewed as an effort against a terrorist takeover of that country. As part of the Support and Follow-Up Group for Mali, New Delhi has made a $1million pledge for building the country’s army, with the promise of $100 million more later. These steps complement both India’s burgeoning interest in Africa, particularly in the uranium and oil-rich Francophone countries of West Africa, as well as France’s plans to secure the region from Islamist militancy and splinter groups of the al Qaeda as it safeguards its own interests in those countries.
It is no coincidence, then, that India and France have been moving towards greater naval co-operation, an important aspect of that being combating sea piracy. In general, defence ties have gained momentum in recent years, with France assiduously trying to combat the impression that it sees India just as a market for its hardware. The Scorpene project, under which the manufacture of the submarine has been sub-contracted to India, and Dassault’s Rafale fighters for the Indian Air Force, include significant transfers of technology. The $11 billion aircraft deal is still being negotiated and the French are eager to see it concluded soon, as expressed in the joint statement during the visit. The traditional good relations between the two countries have been driven by the need to build a robust multilateralism. France supports India’s candidature for a permanent seat in an expanded Security Council. It was the first country to sign a civilian nuclear deal with India, and supports New Delhi’s pursuit of membership in the four WMD-related multilateral export groups. Next week will see the launch of SARAL, a satellite to study oceans and seas, a product of long-standing scientific collaboration between the two countries. With so much going for bilateral ties, it seems odd that economic ties lag below potential. Two-way trade and investment are yet to touch the €12 bn target set in 2008. An annual dialogue on economic and financial issues that the two sides agreed to during President Hollande’s visit will hopefully help.
Source: The Hindu
(3) The Hindu Literary Prize goes to Jerry Pinto
Journalist-author Jerry Pinto has bagged The Hindu Literary Prize 2013 for his novel Em and the Big Hoom . The book, published by Aleph Book Co, is Mr. Pinto’s first work of fiction and is set in Mahim, Mumbai. It revolves around how a four-member family copes with the mother’s manic depressive condition and her suicidal ideation.
The others in the final round of contention for the prestigious prize were the Man-Booker-Prize-shortlisted author Jeet Thayil for Narcopolis , Kiran Nagarkar for The Extras , Anjum Hasan for Difficult Pleasures and Easterine Kire for Bitter Wormwood . Representing the jury, activist-scholar Susie Tharu explained how difficult it was choosing just one (work) from a splendid array of riches.
Em and the Big Hoom , as a story about a young man and his mother, was as archetypal a story as one could get, and was an amazing exploration through life, an entry into the world of those who were always toppling over the edge, she said.
The novel, “written in English as Indian vernacular,” was also a rare example of someone who had worked through an experience going on to create a work of fiction to share that experience with the world.
The former chairperson of the Central Board of Film Certification, Sharmila Tagore, presented the award to Mr. Pinto.
In his acceptance speech, Mr. Pinto said, “Things don’t get better than this,” referring to the award being conferred in a city that had produced a great newspaper and being presented the prize by Ms. Tagore.
Mr. Pinto also made an impassioned plea to uphold and protect freedom of speech and expression in the country with its magnificent history of thinking and writing.
Source: The Hindu
(4) Finance company MD surrenders
MD of Secured Investment and Making Services (SIMS) Surendra Gupta on Sunday evening surrendered before the police after complaints of not making payments on investments in a money circulation scheme promising high interest rate.
Angry investors from all over the district mobbed the IV Town police station here leading to tension. ACP (East) Venkat Rao told mediapersons that Surendra Gupta had surrendered at his office and police would take up investigation into the case booked on a complaint in the police station. Any other complaints received would be taken into consideration for the investigation.
However, with agitated investors continuing their demand to produce Gupta before them, police said five of them could meet him in the presence of police. The five were closeted with the police and Gupta for more than half-an-hour.
One of the five, Reddy Arjuna Rao told mediapersons later that Gupta admitted to liability of payment of Rs.82 crore. On issue of receipt, a total of Rs.200 crore was collected from 38,000 depositors and the assets of SIMS were worth Rs.347 crore. He assured that the money collected from investors would be returned.
Maoist demand
According to Arjuna Rao, Gupta alleged that Maoists had demanded Rs.16 lakh from him and he recorded the calls. He could not make payments and because of the threats he could not come out in the open.
Among the properties he listed were land at Repalle worth Rs.340 crore and Rs.2.5 crore paid for an asset near Meghayala hotel in the city. He had given general power of attorney to nine directors and two of them had cheated him, Gupta alleged. He had asked one of the directors to sell land at Narsipatnam. Arjuna Rao, who said he invested Rs.8 lakh, appealed to investors not to resort to suicide since the police promised a fair investigation. Even after the five came out of their meeting, protests continued at the police station.
Meanwhile, TDP city unit organised a protest at the Gandhi statue near GVMC office and burnt the government in effigy. A SIMS Victims Forum would be formed, its leader Potanna Reddy said.
Source: The Hindu
(5) Aim for the real Red Fort, Mayawati tells supporters
Bahujan Samaj Party (BSP) chief Mayawati on Sunday appealed to her supporters to throw out the Congress-led governments at the Centre and in Maharashtra and bring their party to power “for the development of sarva samaj .”
Addressing a rally at the Kasturchand Park ground here from a replica of Delhi’s Red Fort, the former Uttar Pradesh Chief Minister told her supporters to strive towards reaching “the real Red Fort so that you people do not have to make replicas of the fort.”
“To get a permanent solution to all your problems, bring a BSP government to the Centre, because it is one such party in the country which is not dependent on the economic support of big corporate houses. Our party fights elections with the money donated by common BSP workers,” said Ms. Mayawati, declaring that those who oppressed Dalits in Maharashtra would be given exemplary punishment if her party came to power.
Holding the Congress responsible for the current uncertainty over the promotions bill, she said: “The Scheduled Castes (SCs) and Scheduled Tribes (STs) are not getting proper benefits of the constitutional provisions made especially for them. The Opposition parties are conspiring to take away their [SC and STs] constitutional rights. The fresh example of this was the way SC-ST quota in the promotions bill was stalled in Parliament. In the garb of the honourable Supreme Court’s decision, this benefit has almost been taken away by the ‘casteist’ Opposition parties.”
Congress blamed
Accusing the Congress of not being serious about the quota bill, she said the party did not appoint a good lawyer when the case of M. Nagaraj vs Government of India came before the Supreme Court in 2006 questioning the quota in promotions for the SCs and STs, which was in place since 1955.
Taking credit for the passage of Quota bill in Rajya Sabha, she said: “They [Congress and BJP] are plying with reservations of SCs and STs.
Source: The Hindu
Disclaimer: All news stories and content sourced from freely available material on the internet. All sources are acknowledged.
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