Demonetisation's failure won't hurt PM Modi, he's already changed the narrative

Modi has learnt never to engage with his opponents and a hapless Opposition is trying to keep up

 

economy news:APCO Worldwide, a transnational public relations company, had their most apt pupil in then Gujarat chief minister Narendra Modi. The one thing Modi learnt was never to engage with his opponents on issues they want to talk about. He sets the agenda and a hapless opposition and media try to keep up. Demonetisation was a Modi-made disaster. Yet the disaster only served to propel Modi to greater electoral heights, and today, as he towers over a clueless opposition, even the return of 99% of the extinguished notes does not change the narrative of one man’s fight against corruption.

Modi had made an emotional pitch on demonetisation – “Give me 50 days, then punish me if I am wrong” – which was the lead story in all newspapers. Today who remembers that? Modi has moved on from “acche din” to “new India” and, like the Pied Piper, carried a mesmerised UP electorate with him. He swept the UP assembly, anointed Adityanath as chief minister and could not care less about what the opposition and media will now say.

ALSO READ: GDP growth hits 3-year low of 5.7%, slowest under Modi govt

Former Prime Minister Manmohan Singh had called demonetisation “an organised loot and legalised plunder”, and the venerable economist had a point. Modi, however, used demonetisation as a chance to reinvent himself as a “messiah of the poor”. The only jibe that struck home was Rahul Gandhi’s comment of a “suit boot ki sarkar” after Modi aired his Holland and Sherry Rs 10 lakh suit (with his name pinstriped on it) in his meeting with former US President Barack Obama.

The suit was auctioned off; the godmen and friends of the BJP are still present and in action; yet, with the demonetisation gamble, Modi achieved his aim.

ALSO READ: 99% of banned notes returned after demonetisation: RBI annual report

Modi and his closest aide, Amit Shah, are a ruthless-election winning combine. They give no quarter and expect none. No niceties of politics are maintained and the BJP has been transformed into a formidable election-fighting machine, modelled from the booth level upwards on the Congress of the 1950s. Modi himself is on 24/7 campaign mode. Consider this: until the Gujarat election later this year, he will make weekly trips to the state.

A senior member of the cabinet told me, “We are quiet in cabinet but occasionally the prime minister scoffs at the media. The opposition is never discussed as they have become irrelevant”.(READ FULL STORY)

Doklam standoff resolution: India's greatest diplomatic victory in decades

Clearest case of game, set and match India in modern history, with lots of aces thrown in for effect

 

The Ministry of External Affairs on Monday announced that following a diplomatic breakthrough Indian troops had begun disengaging at the Doklam border site. Later in the day, reports confirmed that the disengagement exercise had been completed, after a nearly two-and-a-half-month standoff, and the Chinese side had decided to withdraw road-construction equipment from the disputed site.

economy news : The end of the Doklam standoff heralds quite possibly one of India’s most spectacular diplomatic victories in decades, and like any real victory it does not need shouting from rooftops. From beginning to end, the execution of India’s strategy here has been flawless and has achieved what India always wanted – Status Quo Ante -- and a much-needed counter to China’s salami tactics. The magnitude of the victory is only understood when we realise how crushing a personal defeat for Xi Jinping this actually is.

Xi, clearly identified as the mastermind of this Bhutan gambit, had made a number of assumptions, all of which turned out to be erroneous. The first was the belief that India could be punished for its OBOR Lèse-majesté by weaning Bhutan away from India. The logic was, if Bhutan were sufficiently pressured, it would have to open direct talks with China through embassy, and thereby open itself up to OBOR. The opinion in Beijing seems uniform as to the genesis of this particular showdown – it was in fact Xi putting personal pique over national interest. The net result of him personalising policy has been one of the biggest setbacks that China has faced in recent memory.

Unwittingly, Chinese actions have simply added to India’s stature as a mature and responsible status quo power. What had been clear from day one was that China’s options were limited. On the one hand, if China used force it would set a precedent that other countries could also respond in force to China’s land grabs, not to mention destroy several fundamentals of nuclear deterrence. On the other hand, if China did not use force it would be seen as weak – encouraging other neighbours to counter-land/sea grabs. In effect, unwittingly, China landed itself in a 'do-and-be-damned, don’t-do-and-be-damned' quandary. Knowing this full well, India chose to give China a face-saving exit, though it could have just squatted on the disputed land in perpetuity – much like China did. This is not a sign of weakness, this is a sign of confidence....(READ MORE)

Gurmeet Ram Rahim Singh sentenced to 10 years in jail in rape case

Prosecution demanded maximum punishment for the rape convict in the 15-year-old rape case

 

Rape convict Dera Sacha Sauda head Gurmeet Ram Rahim Singh was on Monday sentenced to 10 years in jail. Prosecution had demanded the maximum punishment for Singh, convicted on August 25 by a CBI court in a rape case dating back to 2002. Special CBI judge Jagdeep Singh was brought to Rohtak's Sonaria jail, where Ram Rahim is lodged, to pronounce the sentence.

Just before the judge was about to announce the quantum of sentence, reports of violence trickled in. Two cars were reportedly torched by Dera Sacha Sauda supporters in the Phoolka area of Haryana's Sirsa.

After the self-styled godman's conviction on Friday, large-scale violence by his followers in parts of Haryana, Punjab and Delhi, resulting in the deaths of 38 people. Ram Rahim is lodged in a Rohtak district jail.

Highlights

* Nine people, including rape convict Gurmeet Ram Rahim Singh, are present in the courtroom.

* Defence argued Gurmeet Ram Rahim is a social worker who has worked for welfare of people, so judge should take a lenient view.
* CBI sought maximum punishment (10 years imprisonment). CBI states it is a rare case.(read more)

UIDAI says Aadhaar system secure, refutes reports of biometric data breach

WikiLeaks has hinted that CIA had allegedly accessed the Aadhaar database

 

The Unique Identification Authority of India or UIDAI on Sunday asserted that Aadhaar system has stringent security features to prevent any unauthorised capture or transmission of data, refuting reports that hinted at sensitive biometric data being allegedly accessed by certain foreign agencies.

The statement by the UIDAI came after WikiLeaks hinted that the Central Intelligence Agency had allegedly accessed the Aadhaar database.

Dismissing the allegations, UIDAI said Aadhaar biometric capture system has been “developed within our own country and it has adequate and robust security features to prevent any possibility of any such unauthorised capture and transmission of data regardless of any biometric device that may be used”. The UIDAI said that such “misinformation” was being spread by certain “vested interests”.

“Some vested interests are trying to spread misinformation that since ‘Cross Match’ is one of many devices which are being used in biometric devices by various registrars and agencies in Aadhaar ecosystem, the biometrics being captured for Aadhaar are allegedly unauthorisedly accessed by others,” the UIDAI statement said rejecting charges of data being compromised.

Outlining the stringent checks and balances in UIDAI system, it said that any biometric device before being used in the Aadhaar system is "thoroughly tested" internally and externally extensively by Standardised Testing Quality Certification and certified.(Read more)

From Amma to Indira canteens: Playing the subsidised food card for votes

'To a man with an empty stomach food is god', the Mahatma had famously remarked

 

economy news: In an effort to consolidate urban vote base, Karnataka Chief Minister Siddaramaiah earlier this month opened over 100 Indira canteens in Bengaluru, which would offer subsidised food for the urban poor. The canteens, modelled on the Amma canteen that brought back the late J Jayalalithaa into power in neighbouring Tamil Nadu, offer breakfast at Rs 5 and lunch and dinner at Rs 10, with each outlet to serve around 500 people at a time. This writer discusses how political parties have time and again played the subsidised food card to satiate the hunger for votes.

The late H N Bahuguna was once asked by one of his close associates what two things he would do if he becomes the Prime Minister. The veteran leader had replied that one thing he would certainly do was to ensure that the price of bread is brought abysmally low so that no one would go to bed hungry.

That was sought to be done in urban Karnataka with the launch of the Indira Canteens in Bengaluru earlier this month with much fanfare by Rahul Gandhi who is seeking to seize the initiative in the poll-bound state to retain power amid times of crisis for the grand old party.

No doubt that it is a desperate measure to attract the urban poor, but it also signals a fight back at a time when Congress has lost from almost all major cities including the four metros in the Narendra Modi surge in the last Lok Sabha elections. Bengaluru was no exception.

Karnataka is the last bastion of the Congress being the single largest state it has in its kitty when its footprint has drastically dwindled and the last victory it witnessed was in Punjab recently after many a defeat in several states since 2014.

The move has also come at a time when the Narendra Modi dispensation is at its zenith with BJP for the first time able to install its men in four top constitutional positions -- the President, the Vice President, the Prime Minister and the Lok Sabha Speaker. Loyalists of Modi are beating the drums of TINA—There Is No Alternative-to the Leader....(Read more)

Gurmeet Ram Rahim sentencing today: 'Messenger of god' gets the message of law

The duration of Ram Rahim's imprisonment will be announced on Monday

 

“I have always respected the law. Even though I am having a backache, still abiding by the law, I will go to court (tomorrow). I have full faith in God. Everyone should maintain peace.” Thus spake Gurmeet Ram Rahim Singh, film actor, producer, director, businessman and evangelist of the Dera Sacha Sauda a day before he was convicted by a CBI court of raping a disciple.

The story of Gurmeet Ram Rahim Singh aka messenger of god (as his film in which he was a hero, actor, director and producer was called) begins in the first decade of 2000.

A dera is a single person setting up a religious institution for social or educational activities. There are thousands of deras, big and small, all over north India, headed by Sikh or Hindu chiefs. The Radhasoami Satsang Beas is one such, the Nirankaris have their own deras. The logic is that as the Akal Takht, the highest Sikh religious body, cannot be present everywhere to translate on the ground the tenets of Sikhism, anyone who wants to can set up a dera to preach and practise a religion that technically does not recognise caste.

ALSO READ: Gurmeet Ram Rahim rape conviction: 36 killed, 250 injured in Dera violence

The Dera Sacha Sauda is one such. It is located in what is now Haryana but was once undivided Punjab. It has a largely Dalit following in Sirsa, which is a Sikh belt contiguous with Punjab. Gurmeet Ram Rahim Singh is a successor of previous highly popular gurus, and has a reputation of being a somewhat quixotic individual who lives in an air-conditioned cave, is fond of dressing in king-like robes, drives in luxury cars, and keeps armed guards with him at all times.

All political leaders — Parkash Singh Badal, Amarinder Singh, Vasundhara Raje Scindia, and SS Dhindsa — have called on him to seek his blessings. This has been a recognition of the huge following of largely Dalit supporters he has been able to command. Sirsa sits atop the Chandigarh-Punjab-Rajasthan border and can influence political opinion in three states.

ALSO READ: Gurmeet Ram Rahim rape conviction: 36 killed, 250 injured in Dera violence

Gurmeet Ram Rahim Singh would have been just another harmless religious leader had it not been for two events — one, a CBI enquiry into the circumstances of the murder of a journalist in the area who wrote reports charging Singh with various misdeeds including murder and rape; and two, that Singh, one day in the middle of the campaign for the 2007 assembly elections announced to his followers that they all must vote for the Congress. (Read more)

Full text: Privacy a fundamental right, says SC. Read entire judgment

The judgment also has a bearing on broader civil rights and a law criminalising homosexuality

 

The Supreme Court ruled on Thursday that the "right to privacy is protected as an intrinsic part of the right to life and personal liberty under Article 21 and as a part of the freedoms guaranteed by Part III of the Constitution," a verdict that could derail India's biometric ID card programme now under way.

“The judgment read out so far only says that the right to privacy is a fundamental right, protected by Article 21 (of the Constitution on the right to life and personal liberty),” said Prashant Bhushan, a senior lawyer. “Any law, like the Aadhar Act or any other law, which seeks to restrict the right to privacy will have to be tested on the touchstone of Article 21."

The judgment also has a bearing on broader civil rights as well as a law criminalising homosexuality.

read the full text of the SC judgment :

Reasons why RBI is introducing Rs 200 notes

The decision to introduce the new note was taken by RBI board in March

The Reserve Bank of India (RBI) will issue Rs 200 notes soon, possibly at the end of August itself, filling the missing link between Rs 100 and Rs 500, and thus facilitating ease of exchange for common public.

The finance ministry on Wednesday notified the introduction of the new notes. The decision to introduce the new Rs 200 note was taken by RBI board in March.

Introduction of currency notes is done by any central bank based on an assessment of inflation, economic growth, replacement of soiled banknotes, reserve stock requirements, needing to combat counterfeiting but most importantly, to facilitate ease of transactions for the common man.

The optimal system of denominations of currency is worked out on the basis of minimising the number of denominations needed for offering the exact change. There are actually some renowned international research works behind determining the optimal mix of currency notes.(read more)

AirAsia offers flight tickets at Rs 999 with '7 Days of Mad Deals'

The scheme is named "7 Days of Mad Deals"

 

 

Much to the delight of the Indian flyers, Asia's biggest budget carrier, AirAsia is offering discounted fares for the selected routes. The fares start at Rs 999 (all-inclusive) for one-way flights and are only valid for new purchases.

According to the AirAsia website, the scheme is named “7 Days of Mad Deals.” The offer is available for limited seats and the website doesn't disclose the number of seats allotted for the scheme. The promotion is valid from 21 August 2017 to 27 August 2017, and travel from 26 February till 28 August 2018. Bookings can be made via the web and the AirAsia Mobile App.

The offer requires flyers to make advance bookings and "fares are not available during embargo period', which is the high peak period.

AirAsia India is a joint venture between Tata Sons and Malaysian carrier AirAsia.

Key takeaways from Q1FY18 earnings and what it means for your investments

For new investor, going through MF mode is still the best way to play long-term Indian growth story

 

economy news: The June quarter earnings of the financial year 2017-18 remained soft, but on expected lines as the fallout of GST implementation led to channel destocking and discounting across consumer-facing industries. Given this, automobiles, auto-ancillaries, consumer staples, white good manufacturers and healthcare sectors faced the brunt.

The under-performance was exaggerated with input cost inflation yet to play out. The rise in commodity prices was also not passed on entirely in this quarter, as the inventory was liquidated at a discount to avail input tax-credits before GST implementation. That apart, compensation was given to the dealers / stockists / supply chain distributors for the losses they incurred on GST roll-out.

A few companies did manage to deliver better return in comparison to what analysts had pegged, and such companies got rewarded by the markets. The under-performance of IT, pharma and telecom continued. A recovery stayed elusive for IT companies amid headwinds like lower utilisation and digital investments still continuing, leading to further payback periods, while growth in revenues and volumes is still recovering in a gradual fashion.

For pharma, the troubles due to USFDA-related issues continued with elevated remediation costs plaguing the balance sheets, high R&D expenses and pricing pressures weighing on EBIDTA margin and the slower key niche drug approval pipeline is also taking a hit on the earnings.

Revenue accretion was a challenge for the telecom companies, which is evident from the ARPUs that the companies reported. Bottom-line was impacted due to high leverage levels. Reliance Jio’s aggressive price stance and the spectrum payout has resulted in data tariffs coming down, which has been compensated by the large data volume growth.

Autos continued the good show. The demand is expected to come back strongly in the second quarter. The FMCG sector is likely to see the impact of restocking in the second quarter. Festival demand and good monsoons aiding spending both on the rural and urban side along with payouts related to the seventh pay commission recommendations are the additional positives.....(read story)

Supreme Court sets aside instant triple talaq in split verdict

Judgment on triple talaq is historic, says Prime Minister Narendra Modi

 

The Supreme Court on Tuesday declared that the centuries-old practice of instant triple talaq among the Muslim community was unconstitutional.The five-judge Constitution bench presided over by Chief Justice J S Khehar delivered a split verdict 3:2 in three separate judgments. The order seeks to overturn the conventional belief that it is the community itself, not Parliament or courts, which should reform religious or personal law.

The majority (economy news)judges ruled that the divorce allowed for a Muslim man by pronouncing talaq (talaq-e-biddat) thrice violated the Constitutional provisions. In two separate judgments, they reviewed earlier laws and high court judgments to strike down triple talaq as unauthorised by the Quran, the holy book of Islam.

ALSO READ: Divorcing triple talaq

However, the chief justice, along with Justice Nazeer, was in a minority, upholding the practice of triple talaq as part of the personal law of the Muslims and, therefore, protected by Article 25 of the Constitution. Putting the onus on Parliament, the two dissenting members of the bench, in a 270-page judgment, urged the government to pass a law on the subject within six months; till then there would be an injunction on talaq. However, as it is merely a minority view, it has no authority.

Kamini Jaiswal, a senior advocate at the Supreme Court, while welcoming the overall decision of the apex court, has expressed disappointment on the minority verdict. “Allowing triple talaq on the grounds of Article 25, while leaving it open to the government to restrict it through legislation, seems counterproductive. Wouldn’t the making of any such law be hit by the very same fundamental right that was used to uphold it?” Jaiswal argued.

All political parties and leaders from minority communities welcomed the apex court order, including Kapil Sibal, the lawyer for the All India Muslim Personal Law Board (AIMPLB) which argued against judicial intervention in triple talaq. Sibal said, “We hail the judgment. It protects personal laws and at the same time deprecates the practice of triple talaq.”   (read full story)

 

Triple Talaq: For every divorced Muslim man, 4 Muslim women divorced

Supreme Court verdict has deep implications for rights of these Muslim women

 

With the Supreme Court declaring triple talaq as unconstitutional, the stage has been set for the Parliament now to frame laws to regulate this practice among Muslims. One cannot help but recall a Bombay High Court order in a case involving India domiciled Pakistani musician Adnan Sami and his thrice married wife Sabbah in 2010. The Bombay High Court while pronouncing its verdict had quoted a famous judgment of the Delhi High Court of 2007 in the Masroor Ahmed vs State of Delhi case.

ALSO READ :SC strikes down triple talaq, declares it illegal and unconstitutional

The Delhi High Court’s observation in parts was as follows: Classical Hanafi law, especially as it is practised in India, seems to take the opinion that triple talaq is sinful yet effective as an irrevocable form of divorce. The difficulty lies with triple talaq which is classed as bidaat (an innovation). Generally speaking, the Shia schools do not recognise triple talaq as bringing about a valid divorce. Judicial notice can be taken of the fact that the harsh abruptness of triple talaq has brought about extreme misery to the divorced women and even to the men who are left with no chance to undo the wrong.

ALSO READ : Triple Talaq debate: Maharashtra has the most number of divorced Muslim women

While the psychological misery caused to Muslim women by triple talaq in India is well documented, statistics tell an equally grim story. Census figures show that for every Muslim man divorced in India, four Muslim women are divorced. Coincidentally or otherwise, under Islamic law, a Muslim man is allowed to keep four wives. Since the Muslims are a closed community in India, most of these are intra-faith marriages. Even among those who consider themselves to be separated rather than divorced, the figures tell a similar story. For every separated Muslim man, there are three separated Muslim women. The number of divorced Muslim women in 2011 touched almost half a million – a 40% increase as compared to 2001. The number of divorced Muslim men although much lower than Muslim women, grew much more at almost 70% during the same period.

ALSO READ : Triple talaq unconstitutional, says SC: All you need to know about Shayara Bano's fight

There also seems to be a disproportionately larger number of young divorced Muslim women in India. It seems that as Muslim women in India cross the age of 25, they are more likely to be divorced by their husbands. Census figures show that the number of divorced Muslim women between the ages of 10 to 25 was just about 70,000. However, there seems to be a steep increase in the number of divorced Muslim women beyond that age. Almost 0.22 million Muslim women in age group of 25-39 years identified themselves as either divorced or separated. By the time a Muslim woman in India reaches the age of 60 – almost half a million of them have been divorced. Till the time a Muslim woman is younger than 24 years, less than 1% are divorced as compared to their married counterparts. However, once she crosses that age threshold, the proportion of divorced Muslim women to married Muslim women rises phenomenally.....

read full story

End of talaq talaq talaq? Get your facts right with key takeaways

The Supreme Court asked the government to enact a law on triple talaq

 

In a landmark judgement, the Supreme Court today termed triple talaq unconstitutional and striked it down triple by 3-2 majority. It also asked the Union Government to bring legislation. Chief Justice Khehar said Talaq-e-biddat is an integral part of Sunni community practiced since 1000 years.
Here are the key takeaways:

1. Supreme Court upholds Triple Talaq practice For 6 months

2. Govt should make a law on triple talaq

3. Court puts six-month stay on the practice, Parliament asked to enact law within six months

4. SC asks govt to legislate, if legislation begins during that period, injunction shall stand until legislation is enacted

7 key facts related to case:

1. The bench, made up of judges from different religious communities -- Sikh, Christian, Parsi, Hindu and Muslim, had heard seven pleas, including five separate petitions filed by Muslim women challenging the prevalent practice of 'triple talaq' in the community.

2. The Muslim women, who had filed the petitions, challenged the practice of 'triple talaq' in which the husband pronounces 'talaq' thrice in one go, sometimes even by phone or a text message, to get a divorce.

3. During the hearing, the apex court had observed that the practice of 'triple talaq' was the "worst" and "not a desirable" form of dissolution of marriage among Muslims, even though there were schools of thought which called it "legal".

4. It was argued that triple talaq was a discrimination on the ground of sex and this practice was abhorrent to the tenets of holy Quran and no amount of advocacy can save this "sinful" practice which is contrary to constitutional tenets....(Read full story)

Triple talaq verdict today: All you need to know about Shayara Bano's fight

SC to pronounce its judgement on whether triple talaq among Muslims is fundamental to the religion

 

Is triple talaq fundamental to Islam? Shayara Bano would not agree, and she has challenged the constitutionality of the practices of polygamy, triple talaq ('talaq-e-bidat'), and 'nikah halala' in the Supreme Court.

Answering the question is important. According to reports, the Supreme Court would on Tuesday pronounce a historic judgement on the controversial issue of whether the practice of triple talaq among Muslims is fundamental to the religion.

A five-judge constitution bench headed by Chief Justice J S Khehar had reserved its verdict on May 18 after a six-day marathon hearing during the summer vacation. During the hearing, the apex court had clarified that it may not deliberate upon the issue of polygamy and said it would only examine whether triple talaq was part of an "enforceable" fundamental right to practice religion by the Muslims.

What does Bano's plea contend:

Bano, as reported earlier, has challenged the constitutionality of Section 2 of the Muslim Personal Law (Shariat) Application Act, 1937, in so far as it seeks to recognise and validate polygamy, triple talaq and nikah halala.

Bano also challenged the Dissolution of Muslim Marriages Act, 1939, saying that it fails to provide Indian Muslim women with protection from bigamy.

In her petition before the court, Bano related her own harrowing experience and said that she was subjected to cruelty, and dowry demands, from her husband and his family.

In her plea, Bano said: "Muslim women have their hands tied while the guillotine of divorce dangles, perpetually ready to drop at the whims of their husbands who enjoy undisputed power. Such discrimination and inequality hoarsely expressed in the form of unilateral triple-talaq is abominable when seen in light of the progressive times of the 21st century.".....

Read full story:

Modi's Famous 8: Get to know those who will advise PM on New India

Businesspersons meeting Modi include web entrepreneurs, I-bankers and & scions of business houses

 

economy news: These are names that represent a new category and a new generation, also reflecting Modi's political preferences. From inheritors of first generation business magnates and self-made billionaires to the wife of a TRS MP and a businessman with a Bollywood bloodline, the list has several interesting names. Here is a brief profile of some of them:

1. Rajiv Bajaj: His second name needs no introduction. Hailing from one of India’s most trusted business houses, Ravi Bajaj has been the managing director of Bajaj Autos for over a decade now. An engineer by profession, Rajiv has seen the prolific transition of ‘Hamara Bajaj’ from a utility two wheeler maker that provided mobility to millions of Indians to affordable sportier motorcycles and more recently to upmarket offerings for the discerning motorist. The introduction of GST which has made motorcycles cheaper has also been a shot in the arm for Bajaj Autos.

2. Avni Biyani: The scion of the Biyani family that runs India’s largest supermarket chains under the brand name ‘Big Bazaar’, she has been entrusted with managing the family’s gourmet food business. Unlike Rahul Bajaj, she isn’t trained in the business she handles. Being a post-graduate in Sociology from an American University, Biyani is overseeing the growth of the gourmet food business called Foodhall from scratch. Under Biyani, Foodhall has seven stores now – four in Delhi, two in Bengaluru and one in Mumbai.

3. Sanjeev Bikhchandani: Since the venture of Naukri.com, Bhickchandani has seen his online empire grow. Now his company is the largest shareholder in Zomato. Under his supervision, Zomato grew to acquire the US based UrbanSpoon in 2015. From making a fortune, Bhikchandani has now moved to more philanthropic projects. Reports suggest that he is actively involved in setting up
Ashoka University, that seeks to modernize under-graduate and post-graduate education in India.

4. Sanjay Nayar: As the CEO of Kohlberg, Kravis & CO (KKR) in India, Nayar is probably one of the most under-stated and influential names in the list. KKR has many strategic investments in India which put Nair on the board of the companies in which such strategic investments have been made. Among them include Coffee Day Holdings, Apollo Tyres, Bharati Infratel. The Modi government’s plan to restructure the assets of stressed companies has given KKR a lot more to choose from to add to its India portfolio at lucrative terms......read more

Centre gives more power to BRO for border road construction amid Doklam standoff

Concerns mount as BRO is far behind schedule in constructing 73 approved Indo-China border roads

With the Border Roads Organisation (BRO) far behind schedule in constructing 73 approved “Indo-China Border Roads” along the northern borders, the defence ministry on Sunday empowered BRO officials with enhanced financial powers.

The Chief Engineers, key officials who head BRO projects spread across the border states – with project names like Himank (Ladakh), Vartak (Arunachal Pradesh) and Beacon (Kashmir) – will now enjoy enhanced financial powers that are 5-10 times more than their earlier financial limits.

The defence ministry states this will “avoid delays on account of references between the Chief Engineer and HQ DGBR (Headquarters, Director General Border Roads) and also between HQ DGBR and the Ministry.”(economy news)

BRO’s road building has lagged, while China has constructed a wide-spread network of roads that allow their troops to reach the border quickly on vehicles. In contrast, Indian foot patrols must march long distances to reach the same areas.

With only 27 roads completed of the 73 “strategic roads” approved for the Sino-Indian border, the defence minister assured Parliament on July 28 that the balance roads would be completed by December 2022.

The earlier financial powers permitted a Chief Engineer to approval “departmental works” up to Rs 10 crore, and the ADGBR (Assistant Director General Border Roads) up to Rs 20 crore. All “contractual works” had to be referred to the DGBR, who could sanction expenditure only up to Rs 50 crore...READ MORE

 

Losing to Chinese imports: Why Surat textile traders are unhappy with GST

Traders claim they are confused or unaware about GST

 

 

 

On a rainy July evening in the busy and sprawling Surat Textile Market, Rangnath Sarda received a call from a client, a distributor in Tamil Nadu, to discuss billing details under the new GST regime. Since Sarda did not have a Goods and Services Tax (GST) number, his client would have to figure out how to bill him, transport the goods and pay agents’ commissions.

Business owners across thousands of Surat’s small-scale trading, weaving and dyeing units, which together churn out around 40 million metres of fabric each day, were asking and answering similar questions up and down their supply chains.

Ever since the Government of India introduced the GST regime on July 1, 2017, with the aim of creating a one-tax, one-market nation, Surat’s textile traders have been up in arms–they say GST has struck the death knell for their informal business channels that work largely on cash and afford tiny profit margins.  (economy news)

The traders fear that GST, with its emphasis on formalising businesses by making them register for a GST number–thereby introducing transparency and widening the tax net–will lead to business going to larger, organised traders. They also believe it will increase paperwork and make it difficult to maintain accounting books without hiring accountants, an additional burden for cash-strapped businesses that work on thin profit margins.

Sarda said he had applied for a GST number, grudgingly. With Ganesh Chaturthi round the corner, the festive season would continue well into October and November with Durga Puja, Diwali and Chhath. “Where is the time to protest? We stand to lose business,” Sarda told IndiaSpend, adding that the government was well aware that traders would be in a bind.....(READ MORE)

Govt hikes child care allowance for women with disabilities to Rs 3,000

It shall be payable for a maximum of two eldest surviving children

economy news: The Centre has doubled to Rs 3,000 per month the child care allowance for women with disabilities.

At present, the allowance of Rs 1,500 per month is given to differently-abled female employees for taking care of their newborn child.

"Women with disabilities shall be paid Rs 3,000 per month as special allowance for child care. The allowance shall be payable from the time of the child's birth till the child is two years old," an order issued by Department of Personnel and Training (DoPT) said.

It shall be payable for a maximum of two eldest surviving children, it said.

"The above limit would be automatically raised by 25 per cent every time the Dearness Allowance on the revised pay structure goes up by 50 per cent," said the DoPT order, issued two days ago.The decision to hike the allowance is based on the recommendations of seventh central pay commission. The central government has accepted most of the recommendations of the pay panel.

"The Commission recognises the huge responsibility that these women shoulder while raising their children. Therefore, instead of the factor of 1.5 that we have mostly used for semi-DA indexed allowances, it is recommended that this allowance is raised by a factor of 2 to Rs 3,000 per month," the commission had said in its report.

The DoPT has abolished desk allowance granted to Desk Officers in the Central Secretariat Service (CSS) and other headquarters services at a rate of Rs 900 per month.

The pay commission had also recommended abolishing this allowance as it is virtually non-existent since 2010.

The DoPT has also issued orders for the reimbursement of children education allowance, which will be Rs 2,250 per month.

"The amount fixed for reimbursement of hostel subsidy will be Rs 6,750 per month," it said.

In case both the spouses are government servants, only one of them can avail reimbursement under children education allowance, the order said.

"The above limits would be automatically raised by 25 per cent every time the Dearness Allowance on the revised pay structure goes up by 50 per cent. The allowance will be double for differently-abled children," it said.

Charlottesville violence: Obama's anti-racism tweet most liked in history

Obama quoted iconic South African anti-apartheid leader Nelson Mandela

An anti-racism tweet by former US President Barack Obama after the Charlottesville violence in which he quoted iconic South African anti-apartheid leader Nelson Mandela has become the most liked tweet ever, garnering more than 2.8 million likes.

"No one is born hating another person because of the color of his skin or his background or his religion," the tweet read.

It was posted on Saturday along with a photo of 56-year- old Obama looking up to a window of children of different ethnicities and races.

"This Tweet from @BarackObama just became the most Liked Tweet ever. It set the record at approximately 10:07 EST," a Silicon Valley-based social media company said in a statement....(Read full story)

Doklam stand-off: US wants India, China to resolve issue through 'direct dialogue'

China has vehemently rejected all reports of it ever offering a compromise to India by relocating its troops in the disputed Doklam border area.

economy news: The United States has called on India and China to sit down and have a direct dialogue to resolve their issues.

U.S. State Department spokesperson Heather Nauert further said, "Just that we are encouraging both parties to sit down and have direct dialogue," when asked about the United States' stand on 'another round of skirmish and tension from India and China,' referring to the two-month long Doklam stand-off.

Earlier on August 11 too, the U.S. had pressed for diplomatic talks between the two nations, adding that the stand-off is a situation that it has certainly followed closely.

"As you know, we have relationships with both governments. We continue to encourage both parties to have conversations," it added.

Meanwhile, China has vehemently rejected all reports of it ever offering a compromise to India by relocating its troops in the disputed Doklam border area. The Chinese Foreign Ministry reacted to a report where China had allegedly offered to move its troops back 100 meters, after India sought the pullback of Chinese troops by 250 metres.

The Spokesperson's Office told China Daily that the report is not true, adding that "China will not trade its territorial sovereignty under any circumstances."

"China's position on solving this incident is clear and firm. India must immediately and unconditionally withdraw all its trespassing troops and equipment back to the Indian side of the border," the office said in a statement.....Read more

Customs checks fail to curb duty free import of gold coins from South Korea

Already 12-13 tons of gold is understood to have arrived so far from Korea since July

economy news: Importers are exploiting a loophole in the Free Trade agreement signed between South Korea and India that allows for duty-free import of gold coins.

The customs department, after examining several recommendations such as levying a safeguard duty, is seeking a bank guarantee equivalent of the usual 10 per cent from traders to neutralise the impact of the clause.

ALSO READ:  GST impact: Gold import surge from South Korea alarms govt

Customs department is seeking several details mostly pertaining to exporters, including manufacturing details and so on, in order to plug the surge of imports. According to informed sources, despite efforts to curb the yellow metal's import from Korea, it continues unabated. Indian importers are providing all information demanded by the customs department and providing the requisite bank guarantee too.

ALSO READ:  90% of South Korea gold imports by two business groups

Already 12-13 tons of gold is understood to have arrived so far from Korea since July.

The sources added it is apparent that importers are confident about the legality of their method from the way they are cooperating with customs, providing all information demanded of them in writing.(Read more)

Holidaying this long weekend? Railway over flight is the traveller's choice

However, attractive pricing has given airlines an edge over the railways among youngsters

It is widely believed that the Indian railways is struggling to retain its customer base, which it is losing to various airlines. However, if the numbers are to be believed, the rail route is still the most favoured mode of transport for weekend travellers.

According to industry estimates, approximately 1.5 million Indians will be taking flights over the coming weekend starting from August 12, while the number of people travelling in non-suburban trains alone will come to around 44 million. Last year, during the same time, the railways carried 42 million passengers, while airlines carried only 1.2 million.

economy news

"While about 1.5 million Indians will be travelling via flights over the four-day-long weekend, people travelling in non-suburban trains (intercity) will be around 44 million. That's roughly about 29 times more travellers in trains versus flights," said Aloke Bajpai, chief executive officer and co-founder of Ixigo, an online travel platform. According to Ixigo data, the top-most holiday destinations for train travellers are Goa, Jammu, Tirupati, and Amritsar, while flight travellers prefer Goa, Leh, Kochi, and Udaipur.

According to Paytm, weekday versus weekend travel patterns of Indians reveal that people between 25-35 years of age were 26 per cent more likely to travel on weekends, while people below 40 years were 17 per cent more likely to travel on long weekends. There was hardly any deviation in weekend versus weekday travel patterns of senior citizens, implying that long weekends don't excite them too much......read more

 

Two vehicles set afire in Darjeeling, woman GJM activist held

Activists also took out a rally and raised slogans in support of Gorkhaland

 

Two vehicles were set ablaze by the Gorkhaland agitators in the Darjeeling hills on Wednesday amidst special security arrangements as the indefinite shutdown called by the Gorkha Janmukti Morcha (GJM) entered its 56th day.

A woman GJM activist was arrested from Darjeeling for her alleged involvement in the violence and arson that took place in the hills in June, a senior police officer said.

According to the police, in the morning, a truck carrying newspapers was set on fire by the agitators in Kurseong and another truck carrying food supplies was set ablaze in Kalimpong in the early hours.(economy news)

With the GJM threatening to step up the agitation in view of the expiry of its "deadline" to the Centre for intervention to resolve the crisis, the police and security personnel have made special security arrangements in the hills and are keeping a tight vigil to avoid any untoward incident.

Like Tuesday, a police contingent was seen marching towards Singhmari in Darjeeling town, where the GJM head office is located.

The police contingent went up to Patlebas, a stronghold of GJM supremo Bimal Gurung.

Both Singhmari and Patlebas have witnessed several incidents of violence involving the GJM activists and police in the last couple of months......read more

Now, Aadhaar may be made mandatory for buying shares, mutual funds

When the new rule will come into effect and whether Aadhaar will completely replace PAN is not known

The government might soon make Aadhaar mandatory for buying shares and mutual funds to prevent the conversion of black money into white through the stock market, the Economic Times reported on Thursday.

According to the financial daily, the government and the Securities and Exchange Board of India (Sebi) are planning to link financial market transactions to Aadhaar after, according to two sources cited by the report, the former came to realise that the permanent account number (PAN) might not be sufficient in putting an end to tax evasion.

"We have been told that making Aadhaar compulsory is in the offing," a top official with a financial services firm told the financial daily. (economic policy)

However, according to a CEO of a brokerage firm, who spoke to the financial daily on the condition of anonymity, the move could unsettle some "regional players" who could see a "dip in activity even in IPO market". However, the source said this dip would be temporary. According to the unnamed CEO, these players would be worried over how many clients would remain once Aadhaar is made mandatory.

According to the report, when such a compulsory linking will come into effect is unclear. Further, it is not known yet whether the Aadhaar will serve as the sole identification number for financial market transactions, thereby replacing the PAN.

Is PAN not enough?

Brokers who spoke to the financial daily said that PAN has not been able to prevent people from using the stock market for money laundering. They said that multiple PANs and fake demat accounts were being used to bring in black money into the stock market.

(Read more)

Five major reasons could be assigned to the demise of the Flipkart-Snapdeal deal

Something did not go right on the weekend of July 29/30. There was an important meeting scheduled between Snapdeal-Flipkart deal for Monday, July 31, which was canceled. This sounded the death knell of the merger deal between the two e-commerce giants. Earlier on July 26, the board of Jasper, the holding company of Snapdeal, had given a go-ahead to continue negotiations for a Snapdeal sale to Flipkart, based on an enhanced buyout offer of $850 million by Flipkart two weeks earlier.

Five major reasons could be assigned to the demise of the deal.

1. Kunal Bahl and Rohit Bansal - the two founders were always opposed to the deal. In the days and weeks preceding the calling off of the deal, Kunal had managed to persuade some of the important board members on his vision of a Taobao and Rakuten like market place, which he called Snapdeal 2.0. Patterned on Alibaba’s Taobao and eBay, Kunal apparently convinced his Board that Snapdeal 2.0 would be an asset-light, local market place which would be much easier for sellers to sell on. The company would shed significant weight, go down from the existing 1,200 employees to perhaps 300 employees in the new avatar. The new Snapdeal would not any longer be into the competitive one-day-two-day delivery system, but would focus on operational efficiencies of its sellers, focusing on cost efficiencies. Basically, what Kunal must have told his board was that the acquisition of eBay by Flipkart had left a void in the ‘market-place’ space in India where the e-commerce entity merely acts as the mall, allowing sellers to open their own outlets, and therefore, playing the role of a destination and real estate owner only. Alibaba in China has perfected this model through Taobao. Bahl sold Snapdeal 2.0 as the Taobao of India.

2. Some of Snapdeal’s minority shareholders, including Azim Premji had protested and opposed the proposed pay outs under the Flipkart deal to Nexus Venture Partners, Kalaari Capital and to the Snapdeal founders, Kunal and Rohit. Snapdeal co-founders Kunal Bahl and Rohit Bansal were likely to receive $30 million in cash each from SoftBank after their exit from the company. Kalaari and Nexus were to receive $60 million from SoftBank, in addition to equity in Flipkart. This special treatment to select shareholders, orchestrated by SoftBank to buy their peace, irked other shareholders....

>>>read more<<<

 

War of words over Rajiv Kumar's column on foreign influence in policymaking

While Bibek Debroy echoed his view in Twitter, Pronob Sen questioned Kumar's conclusion

economy news: A war of words over foreign influence on Indian policymaking broke out on Tuesday after NITI Aayog vice-chairman-designate Rajiv Kumar suggested in a newspaper column that Indian-American economists were fading away as part of the ongoing policy transformation in the government.

Kumar had referred to the exit of incumbent NITI Aayog Vice Chairman Arvind Panagariya and former Reserve Bank of India (RBI) governor Raghuram Rajan, and wrote that “if Lutyens’ Delhi rumours are to be believed, more such resignations can come”. Rajiv Kumar also said that as a result of this transformation, the country might witness appointment of individuals with much better understanding of India’s ground realities.

While Bibek Debroy, Kumar’s future colleague in the NITI Aayog, took to Twitter to echo his view, former chief statistician and principal director in the erstwhile Planning Commission Pronab Sen questioned Kumar’s conclusion.

“The foreign influence wanes, So read the weather vanes. Filthy lucre of a foreign land/ Has sullied many a hand/ And fogged the brains,” Debroy tweeted.

The tweet got an avalanche of response and the sarcasm was evident. Washington-based Sadanand Dhume responded: “All this is very well/ But it’s hard to sell/ Cambridge as a native school/ Oxford as a gurukul/ How some manage, pray tell.”

Kumar did his D.Phil from Oxford, and Debroy was in Cambridge.

Panagariya, who will be returning to Columbia University in the US as professor, told a TV channel that he did not want to comment on the issue. He also refused to talk about his precedessor or successor.

Author Ravi Mantha wrote, “Rushed back from distant shores / to join the rushing tide./ Stepped into manure for an uncertain tenure./ But luckily kept our foreign sinecure.”

Sen, now country director for the International Growth Centre’s (IGC) India Central Programme, was more straightforward in his response. “I don’t think it is an issue of whether home-grown economists are better than those who have worked abroad. To me the real issue is what your axiomatic approach to economics is.”....

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What dual power play? I quit because Columbia wanted me: Arvind Panagariya

Arvind Panagariya abruptly resigned as vice-chairman of NITI Aayog to resume teaching in the US

Arvind Panagariya, who abruptly resigned as vice-chairman of NITI Aayog to resume teaching in the US, today said he did not know at the time of joining that his term will be co-terminus with that of the government even as he dismissed suggestions of two power centres forcing his exit.

In an interview with PTI, Panagariya, 64, cited several examples of how western universities are very stringent about not extending leaves, which is what forced him to return to Columbia University at the end of the month even though the Prime Minister's Office wanted him to continue till 2019.

Asked if knew of such rules why did he not make it clear to the government about his return to teaching when he was appointed the first vice chief of the policy body in 2015, he said he was not told that his term would run concurrently with the term of Prime Minister Narendra Modi.

economy news

"I did not know my tenure will be co-terminus with the government, how would I know? Is there a letter?" he said, adding he accepted the appointment after a phone call came from the Prime Minister's Office.

On the phone, he said he was told he will be vice-chairman and "beyond that I knew nothing. I said OK. I want to do this so I accepted."

Also read :   Air India's vegetarian menu will help airline save Rs 20 crore annually

Panagariya, who took over the reins of a body that was set up after dismantling the Planning Commission that used to set five-year growth roadmaps, dismissed reports of any differences or dual power centres in NITI Aayog were reasons for his exit.

"No, no, no," he said, when asked if the numerous occasions NITI Aayog had the difference of opinions with other wings of the government was the reason for his exit.

He also dismissed the existence of dual power centres in NITI Aayog saying, "You go and talk to my staff." "You have to ask those who are writing those reports ...(READ MORE)

Axis Bank cuts savings bank deposits rate to 3.5% on deposits below Rs 50 lakh

Bank to continue to pay 4% interest on deposits of above Rs 50 lakh

economy policy: Private sector lender Axis Bank has reduced interest rate on savings bank accounts by 50 basis points to 3.5 per cent for deposits up to Rs 50 lakh.

However, the bank will continue to pay four per cent interest on deposits of above Rs 50 lakh. The new interest rates will be effective from August 8, Axis Bank said in its filing with the BSE.

Axis Bank’s action follows the decision by State Bank of India (SBI) and Bank of Baroda to reduce rates on savings deposits. SBI was the first bank to cut the savings deposit rate by 50 basis points to 3.5 per cent for deposits up to Rs 1 crore. Bank of Baroda had cut the rate to 3.5 per cent on deposits of up to Rs 50 lakh.

While Kotak Mahindra Bank retained the existing rates of five per cent on savings deposits up to Rs 1 lakh and 6 per cent on deposits between Rs 1 lakh and Rs 1 crore, it reduced the rate on savings deposits of amounts above Rs 1 crore and up to Rs 5 crore from six per cent to 5.5 per cent. The interest rate on deposits of over Rs 5 crores was retained at 5.5 per cent. Karnataka Bank, too, had tweaked the interest rate on savings deposits.

SBI Managing Director Rajnish Kumar had said that it was a choice between increasing MCLR (marginal cost of funds-based lending rate) or reduce the savings bank rates.

A hike in lending rates would have meant an increase in equated monthly instalments (EMIs) for retail, small and medium enterprises, and farm loans. SBI opted to cut savings rate, helping to maintain MCLR at the existing level, he said.

US may lose Indian talent, competitive edge due to H-1B clampdown: Report

                                                                                                                                                       

The brain-gain to India under H-1B outweighs any brain-drain, both countries' economies                                            have gained                                          

    

Clampdown on H-1B programme will make it difficult for the US IT sector to attract open talent from countries like India and America might lose its competitive edge, a top American think-tank has said.

As the Trump administration is carrying out a review of the non-immigrant visas, the Center for Global Development (CGD) in a report said that H-1B visa, the most sought after by Indian IT professionals, is beneficial for both India and the US.

"It is really important to make sure that the I-T sectors from both countries are allowed to attract the right kind of people, because they really allow for innovation and growth in both the countries," Gaurav Khanna, fellow at the CGD and co- author of the research paper, said.

The report titled 'The IT Boom and Other Unintended Consequences of Chasing the American Dream' takes an in-depth look at how the H-1B visa programme affects both the US and Indian economies.

"Both the economies have really benefited from the H-1B programme," he told PTI.

economy news 

"What our paper is really trying to stress, is that on average the US is better off because of the H-1B programme. So clamping down on the H-1B programme will basically not allow the US IT sector to attract the open talent from places like India. The US might then lose its competitive edge in IT production," he warned, adding that IT companies might move to countries like Canada in the event of large scale clampdown on H-1B visas.

Khanna said the research has shown that India has been a beneficiary of brain-gain, rather than brain drain due to the visa programme....(READ MORE)