General Affairs
India Embassy Urges Pilgrims To Avoid Nepal Route For Kailash Yatra
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KATHMANDU: The Indian Embassy in Nepal on Wednesday issued an advisory to Indian nationals planning to undertake the Kailash-Mansarovar pilgrimage to avoid the route via Nepal owing to forecast of inclement weather.
Since the weather conditions are expected to deteriorate in the weeks to come, the Indian citizens are advised to avoid the Nepalgunj-Simikot-Hilsa route to visit Mount Kailash and the sacred Mansarovar Lake, an embassy statement in Kathmandu said.
The Nepalgunj-Simikot-Hilsa route is considered difficult due to a treacherous terrain but a lot of Indians prefer the route that is close to the China border.
A large number of Indians have also been making their own arrangements for the Kailash-Mansarover Yatra via Nepalgunj-Simikot-Hilsa route, the embassy said, adding that many were facing logistical problems in Hilsa and Simikot primarily on account of bad weather.
The inclement weather prevents regular evacuation from Hilsa to Simikot by helicopter and from Simikot to Nepalgunj by fixed-wing aircraft, it pointed out.
Only this week, over 500 Indians, mostly pilgrims en route to Kailash-Mansarovar via Nepal, were stranded at Hilsa and Simikot due to rough weather and officials faced difficulties in evacuating them.
All these pilgrims were brought by private Indian tour operators which had arranged for their travel and other logistics.
Most of these stranded Indians were evacuated by air from the Hilsa-Simikot section with the help of Nepali security officials.
The Indian Embassy said that, in cooperation with the Nepal government and tour operators, it was making all possible arrangements for the timely evacuation of pilgrims/visitors from Hilsa to Simikot and from Simikot to Nepalgunj.
However, inclement weather was impeding regular air services, thereby causing difficulties for those stranded at Hilsa and Simikot, the embassy said.
The Kailash-Mansarovar Yatra takes place from June to September every year.
The Indian Ministry of External Affairs offers pilgrimage through two routes -- the Lipulekh Pass in Uttarakhand in which the trip is of 25 days and the Nathu La in Sikkim (23 days).
Since the weather conditions are expected to deteriorate in the weeks to come, the Indian citizens are advised to avoid the Nepalgunj-Simikot-Hilsa route to visit Mount Kailash and the sacred Mansarovar Lake, an embassy statement in Kathmandu said.
A large number of Indians have also been making their own arrangements for the Kailash-Mansarover Yatra via Nepalgunj-Simikot-Hilsa route, the embassy said, adding that many were facing logistical problems in Hilsa and Simikot primarily on account of bad weather.
The inclement weather prevents regular evacuation from Hilsa to Simikot by helicopter and from Simikot to Nepalgunj by fixed-wing aircraft, it pointed out.
Only this week, over 500 Indians, mostly pilgrims en route to Kailash-Mansarovar via Nepal, were stranded at Hilsa and Simikot due to rough weather and officials faced difficulties in evacuating them.
All these pilgrims were brought by private Indian tour operators which had arranged for their travel and other logistics.
Most of these stranded Indians were evacuated by air from the Hilsa-Simikot section with the help of Nepali security officials.
The Indian Embassy said that, in cooperation with the Nepal government and tour operators, it was making all possible arrangements for the timely evacuation of pilgrims/visitors from Hilsa to Simikot and from Simikot to Nepalgunj.
However, inclement weather was impeding regular air services, thereby causing difficulties for those stranded at Hilsa and Simikot, the embassy said.
The Kailash-Mansarovar Yatra takes place from June to September every year.
The Indian Ministry of External Affairs offers pilgrimage through two routes -- the Lipulekh Pass in Uttarakhand in which the trip is of 25 days and the Nathu La in Sikkim (23 days).
Tamil Nadu Chief Minister Jayalalithaa Demands Rollback Of Fuel Price Hike
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CHENNAI: Tamil Nadu Chief Minister Jayalalithaa today demanded rollback of the latest hike in petrol and diesel prices, saying it would lead to increase in prices of essential commodities.
"I have pointed out many times that the Price Fixation Policy followed by the oil marketing companies is wrong. The price of petrol and diesel has now been increased based on this wrong policy," she said in a statement.
The bi-monthly determination of fuel price based on the Rupee-US Dollar exchange rate was "not the right policy", she said pointing to the petrol price hike by Rs. 2.57 a litre and diesel by Rs.2.35 per litre.
"Due to the hike in petrol and diesel prices, freight charges will increase and the prices of essential commodities will go up, affecting the ordinary people. I urge, the hike announced by the oil marketing companies should be withdrawn," she said.
Since November 2014, against the backdrop of Centre increasing the excise duty of petrol byRs. 11.77 and diesel Rs. 13.57, the present hike was not correct, she said.
"I have pointed out many times that the Price Fixation Policy followed by the oil marketing companies is wrong. The price of petrol and diesel has now been increased based on this wrong policy," she said in a statement.
The bi-monthly determination of fuel price based on the Rupee-US Dollar exchange rate was "not the right policy", she said pointing to the petrol price hike by Rs. 2.57 a litre and diesel by Rs.2.35 per litre.
"Due to the hike in petrol and diesel prices, freight charges will increase and the prices of essential commodities will go up, affecting the ordinary people. I urge, the hike announced by the oil marketing companies should be withdrawn," she said.
Since November 2014, against the backdrop of Centre increasing the excise duty of petrol byRs. 11.77 and diesel Rs. 13.57, the present hike was not correct, she said.
Madhya Pradesh To Buy Onion At Rs. 6 A kg From Farmers
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BHOPAL: Madhya Pradesh Chief Minister Shivraj Singh Chouhan today said his government will buy onions at Rs. 6 per kg from farmers in an effort to alleviate their problem of plenty.
The chief minister made the announcement during an event to mark the Centre's 'Gramoday se Bharat Uday' campaign at Phanda Vikaskhand's Gram Panchayat.
Due to over-production of onions this year, farmers are facing a problem of glut and have not been able to recover the cost price for their produce.
This has led to farmers throwing away their stock on the streets and roads as a means of protest.
Mr Chouhan said the state government wants to make agriculture a booming sector, but over-production can lead to problems.
He said he was unable to get sleep when he learnt of farmers throwing away their onion produce.
Mr Chouhan said that if the market price of onions goes below Rs. 6 a kg then his government will step in to purchase the onions at the price promised.
Mr Chouhan is to address all the village councils across the state via state-run Doordarshan and discuss ideas on progress and development.
The 'Gramoday se Bharat Uday Abhiyan' was launched on April 14, to mark the birth anniversary of Dalit icon BR Ambedkar.
The chief minister made the announcement during an event to mark the Centre's 'Gramoday se Bharat Uday' campaign at Phanda Vikaskhand's Gram Panchayat.
Due to over-production of onions this year, farmers are facing a problem of glut and have not been able to recover the cost price for their produce.
Mr Chouhan said the state government wants to make agriculture a booming sector, but over-production can lead to problems.
He said he was unable to get sleep when he learnt of farmers throwing away their onion produce.
Mr Chouhan said that if the market price of onions goes below Rs. 6 a kg then his government will step in to purchase the onions at the price promised.
Mr Chouhan is to address all the village councils across the state via state-run Doordarshan and discuss ideas on progress and development.
The 'Gramoday se Bharat Uday Abhiyan' was launched on April 14, to mark the birth anniversary of Dalit icon BR Ambedkar.
Fire Was Everywhere, Vehicles, Jungle, All Was Burning: Pulgaon Survivor
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PULGAON, MAHARASHTRA: The survivors of the fire at Pulgaon's ammunition depot are now victims of horrifying memories. The toll in Tuesday's fire at depot, the largest in India and the second largest in Asia, is now 19 -- three more bodies have been found.
At the hospital in Wardha, where some of the 17 survivors are admitted, Sepoy Bachchan Singh could not get rid of the horrifying images.
A part of the Quick Reaction Team deployed to tackle the incident, Mr Singh said the smoke was seen coming out from a shed, located "between post 24 and 25".
The alarm was raised and the fire brigade was called in. "They must have been trying to put out the fire for about 20 minutes, when there was a huge blast," he recounted. "Those nearby died instantly," he said, "The others were flung far into the air."
The 38-year-old armyman said he had lost consciousness for a while. When he recovered, he saw fire everywhere. "Army vehicles had caught fire. The jungle, too, caught fire. Everywhere there was fire. It was scary."
It was likely, he further said, that the ammunition leak might could have been triggered by the intense heat of Vidarbha."In high temperatures such leaks often take place," added Mr Singh, who has suffered wounds on his arms, legs and back.
Defence Minister Manohar Parrikar has said the exact cause of the fire can be known only after an inquiry. While there is "no sabotage as such" he said they were not ruling out any possibility.
The firefighting at the ammunition depot had carried on for six long hours.
In an adjacent room at the hospital, lay fireman Santosh Gavhalkar, who had sustained serious injuries in his head and spine from the blast. "The blast was so big, we couldn't understand how to tackle it," he said.
A 2013 report by the Comptroller and the Auditor General had mentioned how "depots were functioning with risk of fire accident, as the fire-fighting equipment was not held as per requirement/authorization".
Mr Gavhalkar said the equipment was there, but it cannot "tackle such big explosion". There had been no time to cool the shed, he said.
At the hospital in Wardha, where some of the 17 survivors are admitted, Sepoy Bachchan Singh could not get rid of the horrifying images.
A part of the Quick Reaction Team deployed to tackle the incident, Mr Singh said the smoke was seen coming out from a shed, located "between post 24 and 25".
The 38-year-old armyman said he had lost consciousness for a while. When he recovered, he saw fire everywhere. "Army vehicles had caught fire. The jungle, too, caught fire. Everywhere there was fire. It was scary."
It was likely, he further said, that the ammunition leak might could have been triggered by the intense heat of Vidarbha."In high temperatures such leaks often take place," added Mr Singh, who has suffered wounds on his arms, legs and back.
Defence Minister Manohar Parrikar has said the exact cause of the fire can be known only after an inquiry. While there is "no sabotage as such" he said they were not ruling out any possibility.
The firefighting at the ammunition depot had carried on for six long hours.
In an adjacent room at the hospital, lay fireman Santosh Gavhalkar, who had sustained serious injuries in his head and spine from the blast. "The blast was so big, we couldn't understand how to tackle it," he said.
A 2013 report by the Comptroller and the Auditor General had mentioned how "depots were functioning with risk of fire accident, as the fire-fighting equipment was not held as per requirement/authorization".
Mr Gavhalkar said the equipment was there, but it cannot "tackle such big explosion". There had been no time to cool the shed, he said.
Ahead Of Monsoon, Disaster Response Force Positions Rescue Teams Across India
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NEW DELHI: With monsoon rains round the corner, the NDRF has positioned its relief and rescue teams in four vulnerable states and also alerted its squads at over a dozen locations across the country to be prepared to tackle possible floods and situation caused by heavy rains.
Learning from past experiences, this is the first time that the central force has been "pre-deployed" and asked to keep an extra vigil in a large number of locations where rains and floods usually wreak havoc during monsoon.
As per a blueprint prepared to tackle the flood fury, the force has pre-deployed one team each in Dehradun, Almora, Rudraprayag and Uttarkashi in Uttarakhand and in Assam's Karimganj, Jharkhand's capital Ranchi and Gorakhpur in Uttar Pradesh.
In all, over 1,000 NDRF personnel with over 100 boats are on "advance alert mode".
National Disaster Response Force (NDRF) teams deployed permanently in areas of Assam, Tripura, Mizoram, West Bengal, Sikkim, Odisha, Andaman and Nicobar Islands, Tamil Nadu, Maharashtra, Rajasthan, Delhi, Bihar, Telangana, Karnataka, Andhra Pradesh and Madhya Pradesh have also been asked to be on alert and respond swiftly.
"The teams have been equipped with boats and life saving equipment. They can also be airlifted if required. While we have been undertaking these drills every year, this time it has been ensured that teams are proactively pre-positioned," NDRF Director General OP Singh told PTI.
He said the special force has also got in touch with the state governments so that minimum time is taken to chalk out combat strategies in case flash floods or landslides occur, especially in hill states.
"The teams have been asked to prepare themselves in the special context of floods and rains but they can be sent for any disaster combat or relief task that occurs," Mr Singh said.
The decision to carry out early preparation was taken during an annual conference in Delhi in April, hosted by NDRF, which was attended by representatives of Disaster Response Force (SDRF) of 18 states.
NDRF has trained close to 10,000 personnel of various SDRFs to undertanke relief and rescue tasks.
Learning from past experiences, this is the first time that the central force has been "pre-deployed" and asked to keep an extra vigil in a large number of locations where rains and floods usually wreak havoc during monsoon.
In all, over 1,000 NDRF personnel with over 100 boats are on "advance alert mode".
National Disaster Response Force (NDRF) teams deployed permanently in areas of Assam, Tripura, Mizoram, West Bengal, Sikkim, Odisha, Andaman and Nicobar Islands, Tamil Nadu, Maharashtra, Rajasthan, Delhi, Bihar, Telangana, Karnataka, Andhra Pradesh and Madhya Pradesh have also been asked to be on alert and respond swiftly.
"The teams have been equipped with boats and life saving equipment. They can also be airlifted if required. While we have been undertaking these drills every year, this time it has been ensured that teams are proactively pre-positioned," NDRF Director General OP Singh told PTI.
He said the special force has also got in touch with the state governments so that minimum time is taken to chalk out combat strategies in case flash floods or landslides occur, especially in hill states.
"The teams have been asked to prepare themselves in the special context of floods and rains but they can be sent for any disaster combat or relief task that occurs," Mr Singh said.
The decision to carry out early preparation was taken during an annual conference in Delhi in April, hosted by NDRF, which was attended by representatives of Disaster Response Force (SDRF) of 18 states.
NDRF has trained close to 10,000 personnel of various SDRFs to undertanke relief and rescue tasks.
Business Affairs
Raghuram Rajan does not want second term as RBI chief: Report
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Reserve Bank of India Governor Raghuram Rajan has indicated that he doesn't want to remain in the position after his tenure ends in September, a media report said on Wednesday.
Leading Bengali daily Anandabazar Patrika said Rajan had told the central government that once his term ends, he would return to the United States.
Quoting sources close to Rajan, the daily said he had plans to join an American university and pursue research on the Indian economy.
Rajan recently came under a strong attack from the BJP leader Subramanian Swamy who demanded he be sacked. However, Prime Minister Narendra Modi had indicated that he would want Rajan to continue, the daily said.
Several leaders in the BJP have questioned the logic of Swamy's demand. It has been speculated he was being supported by party President Amit Shah.
The daily also quoted "informed sources" as saying the Prime Minister had supported a two-year extension for the governor.
Rajan also found support in Union Finance Minister Arun Jaitley who has told the Prime Minister, according to the daily, that if the Governor is sacked it would send a wrong message around the world.
Rajan has also been supported by several industrialists and think tanks around the world who believe that he is one of the finest economists. They have pointed out that Rajan had stuck to the path of reforms ensuring that India moved ahead on a growth trajectory.
Reserve Bank of India Governor Raghuram Rajan has indicated that he doesn't want to remain in the position after his tenure ends in September, a media report said on Wednesday.
Leading Bengali daily Anandabazar Patrika said Rajan had told the central government that once his term ends, he would return to the United States.
Quoting sources close to Rajan, the daily said he had plans to join an American university and pursue research on the Indian economy.
Rajan recently came under a strong attack from the BJP leader Subramanian Swamy who demanded he be sacked. However, Prime Minister Narendra Modi had indicated that he would want Rajan to continue, the daily said.
Several leaders in the BJP have questioned the logic of Swamy's demand. It has been speculated he was being supported by party President Amit Shah.
The daily also quoted "informed sources" as saying the Prime Minister had supported a two-year extension for the governor.
Rajan also found support in Union Finance Minister Arun Jaitley who has told the Prime Minister, according to the daily, that if the Governor is sacked it would send a wrong message around the world.
Rajan has also been supported by several industrialists and think tanks around the world who believe that he is one of the finest economists. They have pointed out that Rajan had stuck to the path of reforms ensuring that India moved ahead on a growth trajectory.
Sensex ends 46 points up, Nifty above 8,150 post positive macro data
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The S&P BSE Sensex on Wednesday rose 46 points, while the broader Nifty50 ended above its key support level of 8,200-mark after data showed country's growth domestic product grew 7.9 per cent in the March quarter.
The headline indices rallied as firms reliant on consumer demand, such as cigarette maker ITC, advanced on data showing the economy grew faster than expected in the previous quarter.
The 30-share index ended the day at 26,713, up 45.97 points, while broad-based 50-share index was quoting 8,179, up 19.85 points at close.
The country gathered momentum from January to March to extend its lead as the world's fastest growing large economy, with gross domestic product expanding at a stronger-than-expected rate of 7.9 percent, government data showed on Tuesday.
The strong headline number adds to optimism about India's economy, with shares gaining around 4 per cent in May to become Asia's best performer last month on forecasts of an above average monsoon and upbeat earnings from blue chip companies.
Separately, a business survey showed manufacturing activity increased for a fifth consecutive month in May.
"I think the GDP data is basically one driving factor...and apart from GDP data it is the earnings growth and allocation of higher sum of money by global FIIs to local markets...all these three factors are definitely playing a role in bringing the market up now," said Deven Choksey, managing director at KR Choksey Securities.
"The GDP has started looking up mainly because of revival of the projects that were stalled in the economy earlier."Shares of ITC and Hindustan Unilever rose 2.60 per cent and 0.58 per cent, respectively after the GDP data showed consumer spending rose 8.3 per cent in Jan-March from a year earlier.
Axis Bank pared all gains to settle the day flat after hitting its highest since October 26, as the Reserve Bank of India raised the limit for foreign shareholding in the country's third-biggest private lender to up to 62 per cent from 49 per cent.
Airline stocks fell after the government increased jet fuel prices by 9.2 per cent. Jet Airways (India) slipped 2.04 per cent, while InterGlobe Aviation lost 3.78 per cent.
The S&P BSE Sensex on Wednesday rose 46 points, while the broader Nifty50 ended above its key support level of 8,200-mark after data showed country's growth domestic product grew 7.9 per cent in the March quarter.
The headline indices rallied as firms reliant on consumer demand, such as cigarette maker ITC, advanced on data showing the economy grew faster than expected in the previous quarter.
The 30-share index ended the day at 26,713, up 45.97 points, while broad-based 50-share index was quoting 8,179, up 19.85 points at close.
The strong headline number adds to optimism about India's economy, with shares gaining around 4 per cent in May to become Asia's best performer last month on forecasts of an above average monsoon and upbeat earnings from blue chip companies.
Separately, a business survey showed manufacturing activity increased for a fifth consecutive month in May.
"I think the GDP data is basically one driving factor...and apart from GDP data it is the earnings growth and allocation of higher sum of money by global FIIs to local markets...all these three factors are definitely playing a role in bringing the market up now," said Deven Choksey, managing director at KR Choksey Securities.
"The GDP has started looking up mainly because of revival of the projects that were stalled in the economy earlier."Shares of ITC and Hindustan Unilever rose 2.60 per cent and 0.58 per cent, respectively after the GDP data showed consumer spending rose 8.3 per cent in Jan-March from a year earlier.
Axis Bank pared all gains to settle the day flat after hitting its highest since October 26, as the Reserve Bank of India raised the limit for foreign shareholding in the country's third-biggest private lender to up to 62 per cent from 49 per cent.
Airline stocks fell after the government increased jet fuel prices by 9.2 per cent. Jet Airways (India) slipped 2.04 per cent, while InterGlobe Aviation lost 3.78 per cent.
Petrol prices up Rs 4.47 a litre, diesel Rs 6.46 per litre in last 5 weeks
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Petrol price has been hiked by a steep Rs 4.47 a litre and diesel by Rs 6.46 per litre in the last five weeks, taking retail rates to their highest level in one year.
With international oil going past USD 50 per barrel, oil companies late last night hiked petrol price by Rs 2.58 per litre and diesel by Rs 2.26 a litre.
This was the third increase in auto fuel prices since May 1.
A litre of petrol in Delhi now costs Rs 65.60 while diesel is priced at Rs 53.93 a litre.
Prior to last nights increase, rates of petrol were hiked by Rs 1.06 a litre on May 1 and by Rs 0.83 on May 17.
Similarly on diesel, price was increased by Rs 2.94 on May 1 and by Rs 1.26 a per litre on May 17.
Barring an exemption on April 16, when price of petrol was cut by Rs 0.74 a litre and diesel by Rs 1.30, the upward trend in rates has been a phenomenon since March 17.
Petrol was increased by Rs 3.07 a litre on March 17 and Rs 2.19 per litre on April 4. In case of diesel, there were four straight hikes prior to that cut. The hikes totaled Rs 4.63 per litre.
After discounting the April 16 reduction, petrol prices have jumped by Rs 8.99 per litre since mid-March and diesel by Rs 9.79 per litre.
"The current level of international product prices of petrol and diesel and Rupee-USD exchange rate warrant increase in price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision," Indian Oil Corp (IOC), the nation's largest oil firm, said yesterday while announcing the price hike.
The movement of prices in the international oil market and Rupee-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes, it added.
Petrol price has been hiked by a steep Rs 4.47 a litre and diesel by Rs 6.46 per litre in the last five weeks, taking retail rates to their highest level in one year.
With international oil going past USD 50 per barrel, oil companies late last night hiked petrol price by Rs 2.58 per litre and diesel by Rs 2.26 a litre.
This was the third increase in auto fuel prices since May 1.
A litre of petrol in Delhi now costs Rs 65.60 while diesel is priced at Rs 53.93 a litre.
Prior to last nights increase, rates of petrol were hiked by Rs 1.06 a litre on May 1 and by Rs 0.83 on May 17.
Similarly on diesel, price was increased by Rs 2.94 on May 1 and by Rs 1.26 a per litre on May 17.
Barring an exemption on April 16, when price of petrol was cut by Rs 0.74 a litre and diesel by Rs 1.30, the upward trend in rates has been a phenomenon since March 17.
Petrol was increased by Rs 3.07 a litre on March 17 and Rs 2.19 per litre on April 4. In case of diesel, there were four straight hikes prior to that cut. The hikes totaled Rs 4.63 per litre.
After discounting the April 16 reduction, petrol prices have jumped by Rs 8.99 per litre since mid-March and diesel by Rs 9.79 per litre.
"The current level of international product prices of petrol and diesel and Rupee-USD exchange rate warrant increase in price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision," Indian Oil Corp (IOC), the nation's largest oil firm, said yesterday while announcing the price hike.
The movement of prices in the international oil market and Rupee-USD exchange rate shall continue to be monitored closely and developing trends of the market will be reflected in future price changes, it added.
RBI chief Raghuram Rajan wins over PM Narendra Modi despite broad mistrust
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In late 2014, the knives were out for RBI governor Raghuram Rajan.
Finance ministry officials were frustrated by his reluctance to cut interest rates to stimulate growth, and moves were afoot to ease him out of the job. Some were airing their reservations about Rajan's hawkish stance in the media.
Prime Minister Narendra Modi convened a meeting of senior finance ministry staff that December to hear their complaints, said a person who was present.
At the end, the leader delivered a stern message: do not indulge in a public spat with the central bank.
The moment marked a turning point in ties between the heads of the newly installed government and the Reserve Bank of India (RBI). Since then, Modi and Rajan have developed a close working rapport, government officials and people close to the governor say, and that could be crucial to the $2 trillion economy.
With Modi's patronage, it is more likely the government will reappoint Rajan, whose three-year term expires in September, should he wish to stay on, the sources said.
That would allow him to try to revive India's banking sector that has been smothered by distressed debt, which, in turn, is choking off economic recovery.
"Rajan will get another term and he will accept it," said Arvind Mayaram, India's former finance secretary who Rajan worked with closely first as the government's chief economic adviser and then as RBI governor. "He is well entrenched in India's political economy."
A top government official said the decision rests with Modi and the leader has not yet said what he wants to do. Modi recently told The Wall Street Journal that Rajan's reappointment would come up only in September.
The official, speaking anonymously because he was not authorised to discuss the matter with the press, added that the prime minister was "proud" of the RBI governor and that a campaign against Rajan would not affect Modi's decision.
The prime minister's office and finance ministry did not respond to requests for comment. Rajan, former chief economist at the International Monetary Fund, has not disclosed his plans, and did not respond to requests for comment for this article.
MODI'S SUPPORT IS KEY
Modi's support would be important if the 53-year-old RBI chief is to get the big state banking sector to complete a cleanup of massive debts and force defaulters to pay up.
Banks making provisions for bad debt are reluctant to issue new loans, leading to criticism within the sector and complaints from smaller businesses and politicians.
Patronage from above will also help shield Rajan from lingering opposition within the ruling nationalist Bharatiya Janata Party (BJP) to a man known for his straight talking and willingness to question government policy and achievements.
As the personal understanding between Rajan and Modi appears to grow, some officials still resent him.
The fact that Rajan was appointed by the previous Congress government did not help him win friends in Modi's BJP, and the former University of Chicago professor has been viewed by some with suspicion as a product of the West, not India.
BJP parliamentarian and economist Subramanian Swamy, one of those leading a campaign to remove Rajan, recently accused him of "wilfully and deliberately wrecking the Indian economy."
The governor's penchant for blunt commentary raises hackles.
Rajan's appeal for tolerance late last year was perceived to be a veiled criticism of the government for appealing to the Hindu majority at the expense of minority communities, prompting Swamy to rebuke him for speaking like a "grandfather".
Rajan recently compared India's fast-growing economy to a "one-eyed king in the land of the blind". Trade Minister Nirmala Sitharaman publicly censured his comments.
BONHOMIE
The first signs of growing bonhomie between Modi and Rajan came early last year, when Modi called Rajan the "best teacher" for explaining complex economic issues to him.
Days later, the governor returned the compliment, saying the teaching went both ways.
The prime minister backed Rajan in the monetary policy panel's composition and blocking moves to strip the RBI's authority to regulate government bonds and manage public debt.
Modi's office also directed the finance ministry to pursue only those policies where there was agreement with the central bank, a former finance ministry official said.
The governor frequently visits New Delhi to meet Modi, a government official with direct knowledge said. But their meetings are mostly kept away from the public gaze.
Modi's office declined a request to disclose the number and details of the meetings, saying the information relates to "economic interest of the state".
Rajan had help from junior finance minister Jayant Sinha, a college friend and one of the more influential economic voices in the Modi government.
At the December meeting, Sinha told the attendees that the clashes were undermining the government's credibility, the person present said.
A government source said that Sinha also facilitated meetings between Rajan and Modi to broker a compromise on thorny issues such as the composition of the new monetary panel. Sinha did not respond to a request for comment.
LEARNING ON THE JOB
Rajan may prove a more effective governor second time around if he gets the chance, say some RBI insiders and economists.
Although he fended off a market attack on the rupee early in his tenure, bankers, economists and his former colleagues said he was relatively slow to grasp how liquidity flows through the economy and how to fine tune it to meet his primary policy goal of taming inflation.
Under Rajan, the RBI forced banks to source limited short-term funds from cash-for-bond auctions rather than getting unlimited funds from the central bank at a fixed rate.
Banks complained the new system was forcing up costs and hampering the transmission of rate cuts to the real economy, said several bankers privy to the discussions with the RBI.
At first, Rajan publicly dismissed their concerns as "nonsense". It was only after 16 months of pleading by banks that he finally revamped the RBI's liquidity management in April, the bankers said.
A second stint is likely to see a more accomplished operator as the RBI tackles bank debt, tries to develop the bond market as a viable source of funding for companies and switches to a Western-style approach to decision making.
A new monetary policy panel will be formed later this year to set interest rates, something Rajan favoured to make the RBI more independent and introduce transparency to the process.
In a key victory for Rajan, draft legislation from the finance ministry that would have allowed the government to appoint more than half of the panel's members was amended to split it evenly between government and RBI nominees.
Rajan will get the casting vote in the case of a 3-3 split.
Those who have worked with Rajan said his people skills and powers of persuasion will give him a big say on setting rates.
"WHY ROCK THE BOAT?"
Rajan continues to be lionised by foreign investors whose funds are needed to keep the Indian economy motoring ahead.
That was key in convincing Modi to defend him, while two off-cycle interest rate cuts in January and March last year also acted as a balm, a senior minister in the federal cabinet said.
The country has been ravaged by drought in the last two years and not enough jobs are being created to accommodate its rapidly expanding workforce, but India is the world's fastest growing major economy and inflation is half what it was in 2013.
"The combination of Modi, (Finance Minister Arun) Jaitley and Rajan are delivering on the macro front," said Gita Gopinath, an economics professor at Harvard University who knows Rajan well. "I really don't see any reason to rock the boat."
In late 2014, the knives were out for RBI governor Raghuram Rajan.
Finance ministry officials were frustrated by his reluctance to cut interest rates to stimulate growth, and moves were afoot to ease him out of the job. Some were airing their reservations about Rajan's hawkish stance in the media.
Prime Minister Narendra Modi convened a meeting of senior finance ministry staff that December to hear their complaints, said a person who was present.
At the end, the leader delivered a stern message: do not indulge in a public spat with the central bank.
The moment marked a turning point in ties between the heads of the newly installed government and the Reserve Bank of India (RBI). Since then, Modi and Rajan have developed a close working rapport, government officials and people close to the governor say, and that could be crucial to the $2 trillion economy.
With Modi's patronage, it is more likely the government will reappoint Rajan, whose three-year term expires in September, should he wish to stay on, the sources said.
That would allow him to try to revive India's banking sector that has been smothered by distressed debt, which, in turn, is choking off economic recovery.
"Rajan will get another term and he will accept it," said Arvind Mayaram, India's former finance secretary who Rajan worked with closely first as the government's chief economic adviser and then as RBI governor. "He is well entrenched in India's political economy."
A top government official said the decision rests with Modi and the leader has not yet said what he wants to do. Modi recently told The Wall Street Journal that Rajan's reappointment would come up only in September.
The official, speaking anonymously because he was not authorised to discuss the matter with the press, added that the prime minister was "proud" of the RBI governor and that a campaign against Rajan would not affect Modi's decision.
The prime minister's office and finance ministry did not respond to requests for comment. Rajan, former chief economist at the International Monetary Fund, has not disclosed his plans, and did not respond to requests for comment for this article.
MODI'S SUPPORT IS KEY
Modi's support would be important if the 53-year-old RBI chief is to get the big state banking sector to complete a cleanup of massive debts and force defaulters to pay up.
Banks making provisions for bad debt are reluctant to issue new loans, leading to criticism within the sector and complaints from smaller businesses and politicians.
Patronage from above will also help shield Rajan from lingering opposition within the ruling nationalist Bharatiya Janata Party (BJP) to a man known for his straight talking and willingness to question government policy and achievements.
As the personal understanding between Rajan and Modi appears to grow, some officials still resent him.
The fact that Rajan was appointed by the previous Congress government did not help him win friends in Modi's BJP, and the former University of Chicago professor has been viewed by some with suspicion as a product of the West, not India.
BJP parliamentarian and economist Subramanian Swamy, one of those leading a campaign to remove Rajan, recently accused him of "wilfully and deliberately wrecking the Indian economy."
The governor's penchant for blunt commentary raises hackles.
Rajan's appeal for tolerance late last year was perceived to be a veiled criticism of the government for appealing to the Hindu majority at the expense of minority communities, prompting Swamy to rebuke him for speaking like a "grandfather".
Rajan recently compared India's fast-growing economy to a "one-eyed king in the land of the blind". Trade Minister Nirmala Sitharaman publicly censured his comments.
BONHOMIE
The first signs of growing bonhomie between Modi and Rajan came early last year, when Modi called Rajan the "best teacher" for explaining complex economic issues to him.
Days later, the governor returned the compliment, saying the teaching went both ways.
The prime minister backed Rajan in the monetary policy panel's composition and blocking moves to strip the RBI's authority to regulate government bonds and manage public debt.
Modi's office also directed the finance ministry to pursue only those policies where there was agreement with the central bank, a former finance ministry official said.
The governor frequently visits New Delhi to meet Modi, a government official with direct knowledge said. But their meetings are mostly kept away from the public gaze.
Modi's office declined a request to disclose the number and details of the meetings, saying the information relates to "economic interest of the state".
Rajan had help from junior finance minister Jayant Sinha, a college friend and one of the more influential economic voices in the Modi government.
At the December meeting, Sinha told the attendees that the clashes were undermining the government's credibility, the person present said.
A government source said that Sinha also facilitated meetings between Rajan and Modi to broker a compromise on thorny issues such as the composition of the new monetary panel. Sinha did not respond to a request for comment.
LEARNING ON THE JOB
Rajan may prove a more effective governor second time around if he gets the chance, say some RBI insiders and economists.
Although he fended off a market attack on the rupee early in his tenure, bankers, economists and his former colleagues said he was relatively slow to grasp how liquidity flows through the economy and how to fine tune it to meet his primary policy goal of taming inflation.
Under Rajan, the RBI forced banks to source limited short-term funds from cash-for-bond auctions rather than getting unlimited funds from the central bank at a fixed rate.
Banks complained the new system was forcing up costs and hampering the transmission of rate cuts to the real economy, said several bankers privy to the discussions with the RBI.
At first, Rajan publicly dismissed their concerns as "nonsense". It was only after 16 months of pleading by banks that he finally revamped the RBI's liquidity management in April, the bankers said.
A second stint is likely to see a more accomplished operator as the RBI tackles bank debt, tries to develop the bond market as a viable source of funding for companies and switches to a Western-style approach to decision making.
A new monetary policy panel will be formed later this year to set interest rates, something Rajan favoured to make the RBI more independent and introduce transparency to the process.
In a key victory for Rajan, draft legislation from the finance ministry that would have allowed the government to appoint more than half of the panel's members was amended to split it evenly between government and RBI nominees.
Rajan will get the casting vote in the case of a 3-3 split.
Those who have worked with Rajan said his people skills and powers of persuasion will give him a big say on setting rates.
"WHY ROCK THE BOAT?"
Rajan continues to be lionised by foreign investors whose funds are needed to keep the Indian economy motoring ahead.
That was key in convincing Modi to defend him, while two off-cycle interest rate cuts in January and March last year also acted as a balm, a senior minister in the federal cabinet said.
The country has been ravaged by drought in the last two years and not enough jobs are being created to accommodate its rapidly expanding workforce, but India is the world's fastest growing major economy and inflation is half what it was in 2013.
"The combination of Modi, (Finance Minister Arun) Jaitley and Rajan are delivering on the macro front," said Gita Gopinath, an economics professor at Harvard University who knows Rajan well. "I really don't see any reason to rock the boat."
Economy can touch 8% growth with good monsoon: FinMin
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India has done well on fiscal and economic parameters and the GDP growth can touch 8 per cent in the current fiscal with good monsoon, global headwinds notwithstanding, the Finance Ministry said on Wednesday.
"This year the projections for monsoon are good. We hope that the monsoon will be good. With a good monsoon, I think India will be able to reach 8 per cent growth in the current year," said Economic Affairs Secretary Shaktikanta Das.
He was talking to reporters along with Telecom Minister Ravi Shankar Prasad after the Cabinet meeting.
Das said the fiscal deficit and the revenue deficit during 2015-16 were fully contained and targets were achieved.
"Our fiscal and micro and macro economic parameters are very positive," he said.
India's economy grew by 7.9 per cent in March quarter to consolidate its position as the fastest growing major economy, leaving behind China, with a five-year high growth rate of 7.6 per cent for 2015-16 on robust manufacturing growth. The growth was 7.2 per cent in 2014-15.
Das said overall macroeconomic numbers and fiscal parameters of the country are "very very robust".
Government was "bang on target" on the fiscal deficit front. The fiscal deficit during 2015-16 was contained at 3.9 per cent of the GDP, in line with the budget projections.
Revenue deficit showed significant improvement due to increase in capital expenditure of the government. The deficit which was 3.2 per cent of GDP in 2013-14 improved to 2.9 per cent in 2014-15 and 2.5 per cent in 2015-16.
The secretary said the Plan expenditure at Rs 4.71 lakh crore in 2015-16 was higher than Budget estimate of Rs 4.65 lakh crore. The capital expenditure has exceeded budget estimates for the first time in five years.
"We can say with confidence that with all the reform measures, policy initiatives, the direction which the Budget has given this year for the economic growth, especially for agriculture and rural sector, all this put together I think we are beginning to see the results. This is reflected in the overall GDP and in the fiscal numbers," Das said.
India has done well on fiscal and economic parameters and the GDP growth can touch 8 per cent in the current fiscal with good monsoon, global headwinds notwithstanding, the Finance Ministry said on Wednesday.
"This year the projections for monsoon are good. We hope that the monsoon will be good. With a good monsoon, I think India will be able to reach 8 per cent growth in the current year," said Economic Affairs Secretary Shaktikanta Das.
He was talking to reporters along with Telecom Minister Ravi Shankar Prasad after the Cabinet meeting.
Das said the fiscal deficit and the revenue deficit during 2015-16 were fully contained and targets were achieved.
"Our fiscal and micro and macro economic parameters are very positive," he said.
India's economy grew by 7.9 per cent in March quarter to consolidate its position as the fastest growing major economy, leaving behind China, with a five-year high growth rate of 7.6 per cent for 2015-16 on robust manufacturing growth. The growth was 7.2 per cent in 2014-15.
Das said overall macroeconomic numbers and fiscal parameters of the country are "very very robust".
Government was "bang on target" on the fiscal deficit front. The fiscal deficit during 2015-16 was contained at 3.9 per cent of the GDP, in line with the budget projections.
Revenue deficit showed significant improvement due to increase in capital expenditure of the government. The deficit which was 3.2 per cent of GDP in 2013-14 improved to 2.9 per cent in 2014-15 and 2.5 per cent in 2015-16.
The secretary said the Plan expenditure at Rs 4.71 lakh crore in 2015-16 was higher than Budget estimate of Rs 4.65 lakh crore. The capital expenditure has exceeded budget estimates for the first time in five years.
"We can say with confidence that with all the reform measures, policy initiatives, the direction which the Budget has given this year for the economic growth, especially for agriculture and rural sector, all this put together I think we are beginning to see the results. This is reflected in the overall GDP and in the fiscal numbers," Das said.
General Awareness
India chases to 41st slot on competitiveness ranking
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India rose its and standard and ranked at 41st position on the IMD World Competitiveness Scoreboard, 2016.
Hong Kong takes the place of US by the World’s most competitive economy.
Top places of Countries:
- Switzerland, Singapore, Sweden, Denmark, Ireland, the Netherlands, Norway and Canada.
- Asia’s competitiveness downturn rankings in 2015 with countries like Taiwan, Malaysia, Korea Republic, Indonesia and China.
Reasons for the depreciation:
- Reduction of commodity prices
- Increased value of dollar
- Drop of balance sheets in both the private and public sectors
- The director of IMD World Competitiveness Center, Arturo Bris provided the analysis report for the economic fall among the countries.
- The rankings are framed on the basis of 340 criteria grouped under four head
i. Economic performance
ii. Government efficiency
iii. Business efficiency
iv. Infrastructure
- The enhancement in business efficiency towards India when compared to the last
India improved from 33rd position to 31st position by the accomplishment in an innovative , remunerative and responsible
Other rankings:
2015 2016 Labour Market 22 12 Management practices 47 36 Attitudes and values 23 18 Fall in finance 27 33 International investment 31 9 Employment 9 5
But the performance criteria on price level is uttermost failure having rank 55 in 2016 from 37 position in 2015.
Downfall Rankings:
- Infrastructure ranking depreciates in performance standing 58th position from 53rd position.
- The advancement functionality suitably works in the field of public finance , institutional framework and business legislation.
Top Rankings:
Countries 2015 2016 1.Hong Kong,China 2 1 2. Switzerland 4 2 3. USA 1 3 4. Singapore 3 4 5. Sweden 9 5 6. China 22 25 7. India 44 41
India rose its and standard and ranked at 41st position on the IMD World Competitiveness Scoreboard, 2016.Hong Kong takes the place of US by the World’s most competitive economy.Top places of Countries:- Switzerland, Singapore, Sweden, Denmark, Ireland, the Netherlands, Norway and Canada.
- Asia’s competitiveness downturn rankings in 2015 with countries like Taiwan, Malaysia, Korea Republic, Indonesia and China.
Reasons for the depreciation:
- Reduction of commodity prices
- Increased value of dollar
- Drop of balance sheets in both the private and public sectors
- The director of IMD World Competitiveness Center, Arturo Bris provided the analysis report for the economic fall among the countries.
- The rankings are framed on the basis of 340 criteria grouped under four head
i. Economic performance
ii. Government efficiency
iii. Business efficiency
iv. Infrastructure - The enhancement in business efficiency towards India when compared to the last
India improved from 33rd position to 31st position by the accomplishment in an innovative , remunerative and responsible
Other rankings:2015 2016 Labour Market 22 12 Management practices 47 36 Attitudes and values 23 18 Fall in finance 27 33 International investment 31 9 Employment 9 5 But the performance criteria on price level is uttermost failure having rank 55 in 2016 from 37 position in 2015.Downfall Rankings:- Infrastructure ranking depreciates in performance standing 58th position from 53rd position.
- The advancement functionality suitably works in the field of public finance , institutional framework and business legislation.
Top Rankings:Countries 2015 2016 1.Hong Kong,China 2 1 2. Switzerland 4 2 3. USA 1 3 4. Singapore 3 4 5. Sweden 9 5 6. China 22 25 7. India 44 41
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