General Affairs
PM Modi Speaks To Sheikh Hasina, Says Dhaka Attack Has 'Pained Us Beyond Words'
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NEW DELHI: Prime Minister Narendra Modi today said the Dhaka attack has "pained us beyond words" as he spoke to his Bangladesh counterpart Sheikh Hasina, conveying that India stands firmly with the country in this hour of grief.
"The attack in Dhaka has pained us beyond words," he tweeted about the terror strike at a restaurant popular with foreigners in which 20 hostages were killed during over 12-hour hostage situation.
PM Modi said he spoke to Ms Hasina and "strongly condemned the despicable attack".
In a series of tweets, he said, "India stands firmly with our sisters & brothers of Bangladesh in this hour of grief.. My thoughts are with the bereaved families. I pray that those who are injured recover quickly."
The terrorists struck at the restaurant located in high-security diplomatic area last night and the hostage crisis ended this morning with army commandos storming the place and killing six attackers.
"The attack in Dhaka has pained us beyond words," he tweeted about the terror strike at a restaurant popular with foreigners in which 20 hostages were killed during over 12-hour hostage situation.
PM Modi said he spoke to Ms Hasina and "strongly condemned the despicable attack".
In a series of tweets, he said, "India stands firmly with our sisters & brothers of Bangladesh in this hour of grief.. My thoughts are with the bereaved families. I pray that those who are injured recover quickly."
The terrorists struck at the restaurant located in high-security diplomatic area last night and the hostage crisis ended this morning with army commandos storming the place and killing six attackers.
Developed Nations Emitting More Carbon Than India, Says Chief Justice
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NEW DELHI: Developed nations are emitting more carbon than developing countries like India, Chief Justice of India TS Thakur today said while emphasising the importance of international law as a very "effective instrument" for protection of human rights and environment.
Highlighting the importance of International Law in the current scenario, he said in the era of conflict of jurisdictions across the globe, it is an apt time that "we prepare ourselves to address issues like dispute of river water, space law, refugee law, custody of children."
Chief Justice Thakur was addressing a seminar organised by International Law Association on the topic of 'Principles of Engagement of Domestic Courts with International Law & Recognition/Non-Recognition in International Law'.
"The world is coming closer to provide a unified system of enforcement of law....We must prepare ourselves not only in terms of legislation but also in terms of our ability to address international issues as and when they arise," he said.
Referring to developed nations in the context of environment, Thakur said, "Today if you see ozone layer decreasing it is not because India is emerging or it is dependent on coal for its power needs but it is because industrialised nations have been emitting carbon for the past 200 years."
"The dimensions of International Law have gone beyond the comprehension of any nation in the recent times. For example, issues regarding environment and climate change. Today, if environment degradation takes place in any part of the world, we are affected. An industrially advanced country, which emits carbon, depletes ozone layer and affects entire human race.
"In international context if there was a law with respect to human rights or those living in less developed countries, it will be a very effective instrument," he said.
"In Kyoto, a resolution was passed which said that let developed economies reduce their emission by 1 per cent. America, which even refused to reduce its emission by even 1 per cent, is today emitting something 10 metric tonnes more carbon per capita. It has emitted carbon for the past 200 years.
Stressing on the need of 'Polluter Pays' principle in the context of environment and ecology, Chief Justice Thakur said international laws would go a long way in addressing the problems of human race in the long run.
"When you talk of protecting the environment if you have an international law which applies 'Polluter Pays' principle then may be those who have over polluted may have to pay. This is the significance of International Law to the existence of humanity is such that if you are affected by pollution in any part of the world," he said.
Expressing a similar view, Supreme Court judge Justice AK Sikri said there are several dimensions which make international law significant.
"In last few decades, international law has assumed much importance because of international politics and the atomic age we live in. There is also a sort of race for acquiring arms by various countries.
"Terrorism is a big problem worldwide for example the recent terror incidents of Orlando and Turkey which took many lives; political developments like Brexit -- these dimensions make international law important," Justice Sikri said.
The seminar, which was held at the India Habitat Centre in New Delhi, was also attended by High Court judge Justice Pradeep Nandrajog and senior advocate Soli Sorabjee, besides other legal luminaries.
Highlighting the importance of International Law in the current scenario, he said in the era of conflict of jurisdictions across the globe, it is an apt time that "we prepare ourselves to address issues like dispute of river water, space law, refugee law, custody of children."
Chief Justice Thakur was addressing a seminar organised by International Law Association on the topic of 'Principles of Engagement of Domestic Courts with International Law & Recognition/Non-Recognition in International Law'.
"The world is coming closer to provide a unified system of enforcement of law....We must prepare ourselves not only in terms of legislation but also in terms of our ability to address international issues as and when they arise," he said.
Referring to developed nations in the context of environment, Thakur said, "Today if you see ozone layer decreasing it is not because India is emerging or it is dependent on coal for its power needs but it is because industrialised nations have been emitting carbon for the past 200 years."
"The dimensions of International Law have gone beyond the comprehension of any nation in the recent times. For example, issues regarding environment and climate change. Today, if environment degradation takes place in any part of the world, we are affected. An industrially advanced country, which emits carbon, depletes ozone layer and affects entire human race.
"In international context if there was a law with respect to human rights or those living in less developed countries, it will be a very effective instrument," he said.
"In Kyoto, a resolution was passed which said that let developed economies reduce their emission by 1 per cent. America, which even refused to reduce its emission by even 1 per cent, is today emitting something 10 metric tonnes more carbon per capita. It has emitted carbon for the past 200 years.
Stressing on the need of 'Polluter Pays' principle in the context of environment and ecology, Chief Justice Thakur said international laws would go a long way in addressing the problems of human race in the long run.
"When you talk of protecting the environment if you have an international law which applies 'Polluter Pays' principle then may be those who have over polluted may have to pay. This is the significance of International Law to the existence of humanity is such that if you are affected by pollution in any part of the world," he said.
Expressing a similar view, Supreme Court judge Justice AK Sikri said there are several dimensions which make international law significant.
"In last few decades, international law has assumed much importance because of international politics and the atomic age we live in. There is also a sort of race for acquiring arms by various countries.
"Terrorism is a big problem worldwide for example the recent terror incidents of Orlando and Turkey which took many lives; political developments like Brexit -- these dimensions make international law important," Justice Sikri said.
The seminar, which was held at the India Habitat Centre in New Delhi, was also attended by High Court judge Justice Pradeep Nandrajog and senior advocate Soli Sorabjee, besides other legal luminaries.
Frequency Of Cloudburst Like Incidents Rising, Says Prakash Javadekar
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NEW DELHI: Environment Minister Prakash Javadekar today said the frequency of heavy rains and cloudburst-like incidents are "increasing" due to climate change.
Expressing grief over the loss of lives in Uttarakhand's Pithoragarh and Chamoli districts, he said the government is working on a plan of action to tackle such natural eventualities.
"Due to heavy rains, there was loss of lives (in Uttarakhand). This is very unfortunate. The frequency of such incidents is increasing because of climate change. The government has been making preparations to tackle such natural eventualities," Mr Javadekar said.
He said that at present around 27 researches have been initiated on the Himalayan mountain range and a plan of action is also being prepared.
The 10 rivers and rivulets were in spate across the state and landslides disrupted traffic on several routes.
The MeT department has warned of heavy rains in isolated places in the state especially Nainital, Udhamsingh Nagar and Champawat districts.
The next 48 hours are going to be crucial for Uttarakhand which was devastated by flash floods that left 6,000 people dead three years ago, it said.
Meanwhile, Rs. one crore was pledged today for renovation, development and upkeep of Rangers' ground in Dehradun in Uttarakhand.
Rajya Sabha lawmaker from Uttarakhand Tarun Vijay wrote a letter to Mr Javadekar in this regard.
Mr Vijay has donated the sum from MPLADS for the construction of stadium for the benefit of young sportspersons of Uttarakhand. Mr Javadekar assured Mr Vijay that full use of the funds will be made.
Expressing grief over the loss of lives in Uttarakhand's Pithoragarh and Chamoli districts, he said the government is working on a plan of action to tackle such natural eventualities.
"Due to heavy rains, there was loss of lives (in Uttarakhand). This is very unfortunate. The frequency of such incidents is increasing because of climate change. The government has been making preparations to tackle such natural eventualities," Mr Javadekar said.
He said that at present around 27 researches have been initiated on the Himalayan mountain range and a plan of action is also being prepared.
The 10 rivers and rivulets were in spate across the state and landslides disrupted traffic on several routes.
The MeT department has warned of heavy rains in isolated places in the state especially Nainital, Udhamsingh Nagar and Champawat districts.
The next 48 hours are going to be crucial for Uttarakhand which was devastated by flash floods that left 6,000 people dead three years ago, it said.
Meanwhile, Rs. one crore was pledged today for renovation, development and upkeep of Rangers' ground in Dehradun in Uttarakhand.
Rajya Sabha lawmaker from Uttarakhand Tarun Vijay wrote a letter to Mr Javadekar in this regard.
Mr Vijay has donated the sum from MPLADS for the construction of stadium for the benefit of young sportspersons of Uttarakhand. Mr Javadekar assured Mr Vijay that full use of the funds will be made.
Mamata Banerjee Asks Trinamool Leaders To Stop Indulging In Infighting
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KOLKATA: Cracking the whip against infighting in Trinamool Congress, party head and West Bengal Chief Minister Mamata Banerjee today asked a section of its leaders to stop indulging in it and stay from syndicate business.
"Mamata Banerjee today stressed on maintaining discipline in the party and asked a section of leaders to stay away from infighting and convey this message to the grassroots level," a senior party leader who was present in the meeting said on condition of anonymity.
"She clearly said that she will not tolerate complaints of syndicate business. She has asked us not to be involved in illegal matters and focus on organisation within the party," he said.
Syndicates are promoter-supplier nexus in the building industry in the state.
According to the leader, Ms Banerjee during the closed door meeting has also said that those who worked against the party during the Assembly elections should stay away from it.
"She asked us to work keeping in mind the panchayat elections in 2018. Mukul Roy has been asked to sit with the panchayat bodies. All the posts in the districts which are lying vacant should be immediately fulfilled.
"She also said those who are working against the party to serve their own interest have no right to stay in it," another Trinamool leader said.
Ms Banerjee during the meeting also asked that those in the party involved in smuggling cows to Bangladesh should stay away from the party or quit it.
"Mamata Banerjee today stressed on maintaining discipline in the party and asked a section of leaders to stay away from infighting and convey this message to the grassroots level," a senior party leader who was present in the meeting said on condition of anonymity.
"She clearly said that she will not tolerate complaints of syndicate business. She has asked us not to be involved in illegal matters and focus on organisation within the party," he said.
Syndicates are promoter-supplier nexus in the building industry in the state.
According to the leader, Ms Banerjee during the closed door meeting has also said that those who worked against the party during the Assembly elections should stay away from it.
"She asked us to work keeping in mind the panchayat elections in 2018. Mukul Roy has been asked to sit with the panchayat bodies. All the posts in the districts which are lying vacant should be immediately fulfilled.
"She also said those who are working against the party to serve their own interest have no right to stay in it," another Trinamool leader said.
Ms Banerjee during the meeting also asked that those in the party involved in smuggling cows to Bangladesh should stay away from the party or quit it.
Sonia Gandhi, Rahul Gandhi Condemn Terror Attack In Dhaka
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NEW DELHI: Condemning the terror attack in Bangladesh capital in which 20 people were killed, Congress president Sonia Gandhi and party vice president Rahul Gandhi today pitched for "collective and decisive" action against those behind the strike.
Expressing deepest condolences to the families of those killed, Ms Gandhi called for immediate collective and decisive action against those who are behind these attacks in Dhaka.
"Congress stands firmly with people of Bangladesh in these testing times," she said, adding that such attacks are "contradiction of all ethical and human values".
"Strongly condemn the #Dhaka attack. My prayers are with the people of Dhaka and B'desh. This senseless violence must be fought strongly & unitedly," Mr Gandhi said in a tweet.
Twenty foreigners, including an Indian girl, were hacked to death by suspected ISIS terrorists inside a cafe popular with expatriates in Dhaka's diplomatic zone in the worst terror attack in Bangladesh before commandos launched an assault today killing six attackers and capturing one alive.
Expressing deepest condolences to the families of those killed, Ms Gandhi called for immediate collective and decisive action against those who are behind these attacks in Dhaka.
"Congress stands firmly with people of Bangladesh in these testing times," she said, adding that such attacks are "contradiction of all ethical and human values".
"Strongly condemn the #Dhaka attack. My prayers are with the people of Dhaka and B'desh. This senseless violence must be fought strongly & unitedly," Mr Gandhi said in a tweet.
Twenty foreigners, including an Indian girl, were hacked to death by suspected ISIS terrorists inside a cafe popular with expatriates in Dhaka's diplomatic zone in the worst terror attack in Bangladesh before commandos launched an assault today killing six attackers and capturing one alive.
Business Affairs
Lot of 'merit' in negotiating separate FTA with UK: CII
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With Britain deciding to exit the European Union, there is a lot of "merit" in negotiating a separate free trade agreement with the UK, CII President Naushad Forbes said.
"Now, we could do a probably very quick and easy free trade agreement (FTA) with the UK because our interests are very complementary, and the sectors which were considered sensitive (in India-EU FTA negotiations) are not sensitive in India-UK trade," he said.
There are lot of export opportunities for Indian companies in sectors including garments and textiles in Britain, he added.
"So, there is a lot of merit in India-UK FTA. It could probably happen faster than the India-EU free trade agreement," he said.
However, India should also pursue the ongoing negotiations for a comprehensive free trade pact with the EU as it is in the country's interest, he added.
Launched in June 2007, the negotiations for the proposed Broad-based Trade and Investment Agreement (BTIA) between India and the EU have seen many hurdles with both sides having major differences on crucial issues like intellectual property rights, duty cut in automobile and spirits, and liberal visa regime.
When asked whether Brexit has raised questions over India-EU FTA, Forbes said: "It has raised questions in a rather interesting way, which is that, we may end up with an Indo-UK FTA faster."
Before starting formal negotiations for a free trade agreement, two trading partners normally carry out a feasibility study.
The bilateral trade between the two countries stood at USD 14 billion in 2015-16, down from USD 14.33 billion in the previous fiscal.
The UK is also the third largest investor in India. The country has received USD 23.10 billion foreign direct investments from the UK during April 2000 and March 2016. It is 8 per cent of India's total FDI during this period.
With Britain deciding to exit the European Union, there is a lot of "merit" in negotiating a separate free trade agreement with the UK, CII President Naushad Forbes said.
"Now, we could do a probably very quick and easy free trade agreement (FTA) with the UK because our interests are very complementary, and the sectors which were considered sensitive (in India-EU FTA negotiations) are not sensitive in India-UK trade," he said.
There are lot of export opportunities for Indian companies in sectors including garments and textiles in Britain, he added.
"So, there is a lot of merit in India-UK FTA. It could probably happen faster than the India-EU free trade agreement," he said.
However, India should also pursue the ongoing negotiations for a comprehensive free trade pact with the EU as it is in the country's interest, he added.
Launched in June 2007, the negotiations for the proposed Broad-based Trade and Investment Agreement (BTIA) between India and the EU have seen many hurdles with both sides having major differences on crucial issues like intellectual property rights, duty cut in automobile and spirits, and liberal visa regime.
When asked whether Brexit has raised questions over India-EU FTA, Forbes said: "It has raised questions in a rather interesting way, which is that, we may end up with an Indo-UK FTA faster."
Before starting formal negotiations for a free trade agreement, two trading partners normally carry out a feasibility study.
The bilateral trade between the two countries stood at USD 14 billion in 2015-16, down from USD 14.33 billion in the previous fiscal.
The UK is also the third largest investor in India. The country has received USD 23.10 billion foreign direct investments from the UK during April 2000 and March 2016. It is 8 per cent of India's total FDI during this period.
Jaypee account an NPA, banks may invoke SDR: SBI official
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Amid reports that lenders may take majority control of the debt-laden Jaiprakash Associates, a senior SBI official on Friday said it has classified the account as an NPA and lenders will soon meet to take a call on invoking Strategic Debt Restructuring (SDR) provisions.
"Jaypee became a non-performing asset (NPA) some time back," the senior official said, adding the country's largest lender has an exposure of Rs 7,000 crore to the account.
The official added the Joint Lenders' Forum (JLF) will be meeting soon to take a call on invoking the conditions of SDR, which involves banks taking majority control of the company.
The comments come amid a news reports that the JLF, led by private sector lender ICICI Bank has decided to convert its debt into majority ownership under the SDR route.
The lenders have also reportedly decided to invoke the provisions at a meeting on Tuesday after uncertainties over a Rs 15,900 crore deal in which Aditya Birla Group company Ultratech Cement was to take over JP's cement assets.
UltraTech and Jaiprakash Associates had signed an agreement on March 31 for the sale of the cement division, which has a capacity of 21.2 million tonnes in factories located across five states.
Jaiprakash Associates had a consolidated debt of Rs 58,250 crore as of March 31.
Amid reports that lenders may take majority control of the debt-laden Jaiprakash Associates, a senior SBI official on Friday said it has classified the account as an NPA and lenders will soon meet to take a call on invoking Strategic Debt Restructuring (SDR) provisions.
"Jaypee became a non-performing asset (NPA) some time back," the senior official said, adding the country's largest lender has an exposure of Rs 7,000 crore to the account.
The official added the Joint Lenders' Forum (JLF) will be meeting soon to take a call on invoking the conditions of SDR, which involves banks taking majority control of the company.
The comments come amid a news reports that the JLF, led by private sector lender ICICI Bank has decided to convert its debt into majority ownership under the SDR route.
The lenders have also reportedly decided to invoke the provisions at a meeting on Tuesday after uncertainties over a Rs 15,900 crore deal in which Aditya Birla Group company Ultratech Cement was to take over JP's cement assets.
UltraTech and Jaiprakash Associates had signed an agreement on March 31 for the sale of the cement division, which has a capacity of 21.2 million tonnes in factories located across five states.
Jaiprakash Associates had a consolidated debt of Rs 58,250 crore as of March 31.
Brent hovers around $50 on tighter market outlook, but weak Asian economies weigh
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Oil prices rose on Friday as investors positioned themselves for more price increases this year in expectation of a tighter physical market although renewed signs of an Asian economic slowdown weighed on the gains.
After rising back above $50 per barrel during Asian trading hours, Brent crude oil futures were at $49.96 at 0649 GMT, up 25 cents from their last settlement. US West Texas Intermediate (WTI) crude was up 17 cents at $48.51 a barrel.
Traders said the higher prices were a result of a tightening physical market, in which the large oversupply that led to the 2014-2016 price slump was now being brought back into balance.
"We believe that the fundamentals of the oil market remain favorable for continued price recovery, and that global inventories will begin to draw in 3Q," investment bank Jefferies said on Friday.
Despite oil output from the Organization of the Petroleum Exporting Countries (OPEC) rising to a record 32.82 million barrels per day (bpd) in June, OPEC expects demand for its supplies to be higher still.
This was also visible in physical oil pricing, where Dubai crude, as quoted by price-reporting agency Platts, averaged $46.256 a barrel for June, the highest since August 2015, traders said on Friday.
Outside the Middle East, US oil production declined by 220,000 barrels per day (bpd) to 8.93 million bpd in April, the largest monthly decline since September 2008, according to Barclays bank, citing US government data.
A further easing of monetary policy expected on the back of Asia's slowing economies and because of Britain's vote to leave the European Union was also seen as a reason for financial traders to put money into commodities, which saw one of the strongest quarterly performances in years in the second quarter of 2016.
"The specter of further easing in monetary policies around the world continues to support commodity markets. With quarter-end selling also behind us, investors positioning should start to turn more bullish," ANZ Bank said.
Despite the overall bullish outlook for oil prices, Asian economic headwinds remain a concern.
Growth in China's manufacturing sector stalled in June, an official survey showed on Friday, suggesting a spring bounce in activity is fizzling.
The official Purchasing Managers' Index (PMI) eased to 50.0 in June from 50.1 in May and right at the 50-point mark that separates growth from contraction on a monthly basis.
In South Korea, exports fell for an 18th straight month in June, with shipments from the world's sixth-largest exporter down 2.7 per cent from a year ago to $45.3 billion.
Oil prices rose on Friday as investors positioned themselves for more price increases this year in expectation of a tighter physical market although renewed signs of an Asian economic slowdown weighed on the gains.
After rising back above $50 per barrel during Asian trading hours, Brent crude oil futures were at $49.96 at 0649 GMT, up 25 cents from their last settlement. US West Texas Intermediate (WTI) crude was up 17 cents at $48.51 a barrel.
Traders said the higher prices were a result of a tightening physical market, in which the large oversupply that led to the 2014-2016 price slump was now being brought back into balance.
"We believe that the fundamentals of the oil market remain favorable for continued price recovery, and that global inventories will begin to draw in 3Q," investment bank Jefferies said on Friday.
Despite oil output from the Organization of the Petroleum Exporting Countries (OPEC) rising to a record 32.82 million barrels per day (bpd) in June, OPEC expects demand for its supplies to be higher still.
This was also visible in physical oil pricing, where Dubai crude, as quoted by price-reporting agency Platts, averaged $46.256 a barrel for June, the highest since August 2015, traders said on Friday.
Outside the Middle East, US oil production declined by 220,000 barrels per day (bpd) to 8.93 million bpd in April, the largest monthly decline since September 2008, according to Barclays bank, citing US government data.
A further easing of monetary policy expected on the back of Asia's slowing economies and because of Britain's vote to leave the European Union was also seen as a reason for financial traders to put money into commodities, which saw one of the strongest quarterly performances in years in the second quarter of 2016.
"The specter of further easing in monetary policies around the world continues to support commodity markets. With quarter-end selling also behind us, investors positioning should start to turn more bullish," ANZ Bank said.
Despite the overall bullish outlook for oil prices, Asian economic headwinds remain a concern.
Growth in China's manufacturing sector stalled in June, an official survey showed on Friday, suggesting a spring bounce in activity is fizzling.
The official Purchasing Managers' Index (PMI) eased to 50.0 in June from 50.1 in May and right at the 50-point mark that separates growth from contraction on a monthly basis.
In South Korea, exports fell for an 18th straight month in June, with shipments from the world's sixth-largest exporter down 2.7 per cent from a year ago to $45.3 billion.
New RBI Governor should continue Rajan's inflation fight: DBS
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Amid intense speculation over the successor of RBI Governor Raghuram Rajan, Singaporean brokerage DBS today said markets perceive the central bank as a credible and independent body, and would like to see the new head to continue with focus on inflation over growth.
"Domestic markets have put their faith behind the Indian central bank as a credible and independent institution, pinning hopes that Governor Rajan s successor will also prioritise inflation over other economic objectives," it said.
It called Rajan's decision not to seek an extension as a "negative surprise" whose impact was "overshadowed by larger global uncertainties" like the Brexit.
DBS said revamp of the monetary policy framework, stabilising the rupee, reining in inflation, a forward-looking approach towards financial sector reforms and systematic approach in dealing with banks stressed assets were the key positives from Rajan's three-year term.
There has been intense speculation after Rajan's announcement last month over who will succeed him as the head of RBI. The names include his deputy Urijit Patel, economists like Rakesh Mohan and Subir Gokarn (who have also served RBI), as well as State Bank of India's chairman Arundhati Bhattacharya.
On June 18, buffeted by political attacks, including by BJP MP Subramanian Swamy, coupled with unending speculation over his continuance, Rajan had said no to a second term -- a surprise decision the industry and opposition parties termed as a loss. He was blamed, among other things, for his focus on inflation over growth.
In sweeping changes, meanwhile, a broad-based 6-member panel -- the Monetary Policy Committee (MPC) -- is being set up to decide on lending rates instead of the present practice of RBI Governor taking a call in this regard.
DBS said while no change is expected on the inflation- targeting framework and using the consumer price inflation number as the target, there can be different approach in the stance which Rajan's successor may take.
These may include the timeline to achieve the 4 per cent retail inflation target, based on Consumer Price Index, as a medium-term goal and liquidity stance and the range for 'real interest rate' (the differential between the inflation and the rates).
Despite the potential push to inflation from the implementation of the 7th pay panel recommendations, it expects another 0.25 per cent rate cut from RBI by September before a "prolonged pause".
DBS flagged other issues as well which will confront the new Governor, including maturing of the FCNR-B deposits worth USD 20 billion starting September, which it said may cause short-term impact on Balance of Payments and rupee volatility.
Amid intense speculation over the successor of RBI Governor Raghuram Rajan, Singaporean brokerage DBS today said markets perceive the central bank as a credible and independent body, and would like to see the new head to continue with focus on inflation over growth.
"Domestic markets have put their faith behind the Indian central bank as a credible and independent institution, pinning hopes that Governor Rajan s successor will also prioritise inflation over other economic objectives," it said.
It called Rajan's decision not to seek an extension as a "negative surprise" whose impact was "overshadowed by larger global uncertainties" like the Brexit.
DBS said revamp of the monetary policy framework, stabilising the rupee, reining in inflation, a forward-looking approach towards financial sector reforms and systematic approach in dealing with banks stressed assets were the key positives from Rajan's three-year term.
There has been intense speculation after Rajan's announcement last month over who will succeed him as the head of RBI. The names include his deputy Urijit Patel, economists like Rakesh Mohan and Subir Gokarn (who have also served RBI), as well as State Bank of India's chairman Arundhati Bhattacharya.
On June 18, buffeted by political attacks, including by BJP MP Subramanian Swamy, coupled with unending speculation over his continuance, Rajan had said no to a second term -- a surprise decision the industry and opposition parties termed as a loss. He was blamed, among other things, for his focus on inflation over growth.
In sweeping changes, meanwhile, a broad-based 6-member panel -- the Monetary Policy Committee (MPC) -- is being set up to decide on lending rates instead of the present practice of RBI Governor taking a call in this regard.
DBS said while no change is expected on the inflation- targeting framework and using the consumer price inflation number as the target, there can be different approach in the stance which Rajan's successor may take.
These may include the timeline to achieve the 4 per cent retail inflation target, based on Consumer Price Index, as a medium-term goal and liquidity stance and the range for 'real interest rate' (the differential between the inflation and the rates).
Despite the potential push to inflation from the implementation of the 7th pay panel recommendations, it expects another 0.25 per cent rate cut from RBI by September before a "prolonged pause".
DBS flagged other issues as well which will confront the new Governor, including maturing of the FCNR-B deposits worth USD 20 billion starting September, which it said may cause short-term impact on Balance of Payments and rupee volatility.
Lot of 'merit' in negotiating separate FTA with UK: CII
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With Britain deciding to exit the European Union, there is a lot of "merit" in negotiating a separate free trade agreement with the UK, CII President Naushad Forbes said.
"Now, we could do a probably very quick and easy free trade agreement (FTA) with the UK because our interests are very complementary, and the sectors which were considered sensitive (in India-EU FTA negotiations) are not sensitive in India-UK trade," he said.
There are lot of export opportunities for Indian companies in sectors including garments and textiles in Britain, he added.
"So, there is a lot of merit in India-UK FTA. It could probably happen faster than the India-EU free trade agreement," he said.
However, India should also pursue the ongoing negotiations for a comprehensive free trade pact with the EU as it is in the country's interest, he added.
Launched in June 2007, the negotiations for the proposed Broad-based Trade and Investment Agreement (BTIA) between India and the EU have seen many hurdles with both sides having major differences on crucial issues like intellectual property rights, duty cut in automobile and spirits, and liberal visa regime.
When asked whether Brexit has raised questions over India-EU FTA, Forbes said: "It has raised questions in a rather interesting way, which is that, we may end up with an Indo-UK FTA faster."
Before starting formal negotiations for a free trade agreement, two trading partners normally carry out a feasibility study.
The bilateral trade between the two countries stood at $14 billion in 2015-16, down from $14.33 billion in the previous fiscal.
The UK is also the third largest investor in India. The country has received $23.10 billion foreign direct investments from the UK during April 2000 and March 2016. It is 8 per cent of India's total FDI during this period.
With Britain deciding to exit the European Union, there is a lot of "merit" in negotiating a separate free trade agreement with the UK, CII President Naushad Forbes said.
"Now, we could do a probably very quick and easy free trade agreement (FTA) with the UK because our interests are very complementary, and the sectors which were considered sensitive (in India-EU FTA negotiations) are not sensitive in India-UK trade," he said.
There are lot of export opportunities for Indian companies in sectors including garments and textiles in Britain, he added.
"So, there is a lot of merit in India-UK FTA. It could probably happen faster than the India-EU free trade agreement," he said.
However, India should also pursue the ongoing negotiations for a comprehensive free trade pact with the EU as it is in the country's interest, he added.
Launched in June 2007, the negotiations for the proposed Broad-based Trade and Investment Agreement (BTIA) between India and the EU have seen many hurdles with both sides having major differences on crucial issues like intellectual property rights, duty cut in automobile and spirits, and liberal visa regime.
When asked whether Brexit has raised questions over India-EU FTA, Forbes said: "It has raised questions in a rather interesting way, which is that, we may end up with an Indo-UK FTA faster."
Before starting formal negotiations for a free trade agreement, two trading partners normally carry out a feasibility study.
The bilateral trade between the two countries stood at $14 billion in 2015-16, down from $14.33 billion in the previous fiscal.
The UK is also the third largest investor in India. The country has received $23.10 billion foreign direct investments from the UK during April 2000 and March 2016. It is 8 per cent of India's total FDI during this period.
General Awareness
India ranked 105th out of 130 countries on Global Human Capital Index
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According to Human Capital Index, India ranked at 105thposition globally among 130 countries and topped by Finland
Criteria: Nations ability to nurture, Develop and organize talent for Economic Growth
Released by: World Economic Forum, Geneva
Ranking:
- 1st Position – Finland
- 2nd Position – Norway
- 3rd Position – Switzerland
- 4th Position – Japan
- 5th Position – Sweden
- 6th Position – New Zealand
- 7th Position – Denmark
- 8th Position – The Netherlands
- 9th Position – Canada
- 10th Position – Belgium
India’s ranking:
- India ranks much below than China, Bangladesh, Bhutan and Sri Lanka
- In 2015, India ranked 100th rank
- India has optimized 57% of its human Capital endowment
- Youth Literacy rate has been reached at 90% only while India’s Educational system has enhanced markedly over the various age groups
- India ranks poorly on labour force participation because of employment gender gaps
Position of India in various categories:
- Quality of Education System: 39th Position
- Ease of finding skilled employees: 45th Position
- Staff Training: 46th Position
- Youth literacy rate: 103rd Position
- Employment gender gaps: 121st Position
Key Aspects:
- India had the largest share in the Global distribution of tertiary degree holder in Science, Technology, Engineering and Mathematics after China
- Only 65% of the world’s talent is being optimized through education, skills development and deployment
- The adaptation of educational institutions, labour market policy and workplaces are essential to growth, equality and social stability
- Countries ranked below India include Nepal, Myanmar, Haiti, Malawi and Burundi and Pakistan
About the World Economic Forum:
Swiss nonprofit foundation
- Headquarters: Geneva, Switzerland
- Founder: Klaus Schwab
- Founded: 1971
- According to Human Capital Index, India ranked at 105thposition globally among 130 countries and topped by FinlandCriteria: Nations ability to nurture, Develop and organize talent for Economic GrowthReleased by: World Economic Forum, GenevaRanking:
- 1st Position – Finland
- 2nd Position – Norway
- 3rd Position – Switzerland
- 4th Position – Japan
- 5th Position – Sweden
- 6th Position – New Zealand
- 7th Position – Denmark
- 8th Position – The Netherlands
- 9th Position – Canada
- 10th Position – Belgium
India’s ranking:- India ranks much below than China, Bangladesh, Bhutan and Sri Lanka
- In 2015, India ranked 100th rank
- India has optimized 57% of its human Capital endowment
- Youth Literacy rate has been reached at 90% only while India’s Educational system has enhanced markedly over the various age groups
- India ranks poorly on labour force participation because of employment gender gaps
Position of India in various categories:- Quality of Education System: 39th Position
- Ease of finding skilled employees: 45th Position
- Staff Training: 46th Position
- Youth literacy rate: 103rd Position
- Employment gender gaps: 121st Position
Key Aspects:- India had the largest share in the Global distribution of tertiary degree holder in Science, Technology, Engineering and Mathematics after China
- Only 65% of the world’s talent is being optimized through education, skills development and deployment
- The adaptation of educational institutions, labour market policy and workplaces are essential to growth, equality and social stability
- Countries ranked below India include Nepal, Myanmar, Haiti, Malawi and Burundi and Pakistan
About the World Economic Forum:Swiss nonprofit foundation- Headquarters: Geneva, Switzerland
- Founder: Klaus Schwab
- Founded: 1971
- 1st Position – Finland
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