AAP candidate against Sonia Gandhi withdraws candidature

Feb 2: Prime Minister Narendra Modi’s second budget in seven months disappointed investors who were hoping for big-bang stimulus to revive growth in Asia’s third-largest economy.

The fiscal plan -- delivered by Finance Minister Nirmala Sitharaman on Saturday -- proposed tax cuts for individuals and wider deficit targets but failed to provide specific steps to fix a struggling financial sector, improve infrastructure and create jobs. Stocks slumped as a proposal to scrap the dividend distribution tax for companies failed to impress investors.

"Far from being a game changer, the budget provides little in terms of short-term growth stimulus,” said Priyanka Kishore, head of India and South East Asia economics at Oxford Economics Ltd. in Singapore. “While income tax cuts will provide some relief on the consumption front, the multiplier effect is low and the overall stance of the budget is not expansionary."

India has gone from being the world’s fastest-growing major economy three years ago, expanding at 8%, to posting its weakest performance in more than a decade this fiscal year, estimated at 5%.

While the government has taken a number of steps in recent months to spur growth, they’ve fallen short of spurring demand in the consumption-driven economy. Saturday’s budget just added to the glum sentiment.

Okay Budget

“It’s an okay budget but not firing on all cylinders that the market was hoping for,” said Andrew Holland, chief executive officer at Avendus Capital Alternate Strategies in Mumbai.

The government had limited scope for a large stimulus given a huge shortfall in revenues in the current year. The slippage induced Sitharaman to invoke a never-used provision in fiscal laws, allowing the government to exceed the budget gap by 0.5 percentage points. The result: the deficit for the year ending March was widened to 3.8% of gross domestic product from a planned 3.3%.

On Friday, India’s chief economic adviser Krishnamurthy Subramanian said reviving economic growth was an “urgent priority” and deficit goals could be relaxed to achieve that. The adviser’s Economic Survey estimated growth will rebound to 6%-6.5% in the year starting April.

The fiscal gap will narrow to 3.5% next year, as the government budgeted for gross market borrowing to rise marginally to 7.8 trillion rupees from 7.1 trillion rupees in the current year. A plan to earn 2.1 trillion rupees by selling state-owned assets in the year starting April will also help plug the deficit.

Total spending in the coming fiscal year will increase to 30.4 trillion rupees, representing a 13% increase from the current year’s budget, according to latest data.

Key highlights from the budget:

* Tax on annual income up to 1.25 million rupees pared, with riders

* Dividend distribution tax to be levied on investors, instead of companies

* Farm sector budget raised 28%, transport infrastructure gets 7% more

* Spending on education raised 5%

* Fertilizer subsidy cut 10%

Analysts said the muted spending plan to keep the deficit in check will lead to more downside risks to growth in the coming months.

“It is very doubtful that the increase in expenditure will push demand much,” Chakravarthy Rangarajan, former governor at the Reserve Bank of India told BloombergQuint, adding that achieving next year’s budget deficit goal of 3.5% of GDP was doubtful.

With the government sticking to a conservative fiscal path, the focus will now turn to central bank, which is set to review monetary policy on Feb. 6. Given inflation has surged to a five-year high of 7.35%, the RBI is unlikely to lower interest rates.

What Bloomberg’s Economists Say:

The burden of recovery now falls solely on the Reserve Bank of India. With inflation breaching RBI’s target at present, any rate cuts by the central bank are likely to be delayed and contingent upon inflation falling below the upper end of its 2%-6% target range.

-- Abhishek Gupta, India economist

Governor Shaktikanta Das may instead focus on unconventional policy tools such as the Federal Reserve-style Operation Twist -- buying long-end debt while selling short-tenor bonds -- to keep borrowing costs down.

Mumbai, Jan 7: Facing criticism from social media and political quarters for holding a 'Free Kashmir' poster during a protest against violence at Jawaharlal Nehru University (JNU), Mehak Prabhu, a Mumbai-based storyteller, on Tuesday clarified that she meant to highlight the restrictions imposed in Jammu and Kashmir and wishes to see peace in the region, adding she had no other motive behind her actions.

"At around 7 pm yesterday, I reached where the protest was happening at the Gateway of India. Like anybody else who believes in democracy, I also joined that protest. We were standing for justice to the JNU students," Prabhu said in a video posted on Facebook.

"I saw a bunch of people who were painting placards on every issue like NRC, CAA and for JNU students. There was a placard lying on the side which said 'Free Kashmir'. The first thing which came to my mind when I saw that placard was about the basic constitutional rights of Kashmiris," she said.

Prabhu also said that she was not a Kashmiri and was brought up in Mumbai. She outlined that she was standing with a flower in her hand and asserted that the entire matter was "completely blown out of proportion".

"I was quietly standing with a flower in my hand. This means we need to make peace together. That was my only intention in holding that placard. The narrative that has been put out is absolutely wrong," she said, describing the reactions to the matter was "crazy".

The Mumbai-based storyteller underlined that the incident is scary and urged the people to spread the words of what she said and not hatred.

"The way it has gone, it is very scary. I am a simple person. As a woman, it is very scary for my safety right now. Spread this side of my story and let's stop it here. Let us not spread the hate. It has happened to me, it can happen to anyone. We should not live in fear," Prabhu further said.

London, Feb 19: Indian universities had a good performance year within the emerging economies of the world as a record 11 made it to the top 100 Times Higher Education's (THE) Emerging Economies University Rankings 2020.

Only China has more universities than India in the top 100 at 30 from a total of 47 countries and territories included in the analysis released in London on Tuesday evening.

A total of 56 Indian universities appear in the full ranking of a total of 533 universities across emerging economies of the world.

The Indian Institute of Science (IISc), ranked 16th, is India’s top-ranked institution followed by the Indian Institute of Technologies (IITs).

"There has long been a debate about the success of Indian universities in world rankings, and for too long they have been seen as underperforming on the global stage," notes Phil Baty, Chief Knowledge Officer for the THE.

"The Emerging Economies University Rankings 2020 suggests that real progress is being made by a number of institutions in a number of metrics across our robust methodology, and could mark an exciting turning point for Indian higher education, enabled in part by the Institutes of Eminence scheme," he said.

The Indian government’s Institutes of Eminence scheme was established in 2017 and one of its participating universities, Amrita Vishwa Vidyapeetham, has entered the top 100 for the first time, moving up a huge 51 places from joint 141st in 2019.

The other universities included in the Institutes of Eminence scheme that appear in the top 100 mark the biggest improvers in the ranking with IIT Kharagpur moving up 23 places to 32nd, IIT Delhi improving by 28 places to joint 38th and IIT Madras climbing 12 places to joint 63rd.

The Institutes of Eminence scheme provides participating universities with government funding and greater autonomy with the aim of moving them into the top 100 of the world university rankings, including Times Higher Education’s World University Ranking, over time.

The expectation is that this will be achieved through a number of changes including an increase in foreign students and staff, offering online courses and encouraging academic collaboration with other top universities around the world.

This year marks only the second time that 11 Indian institutions have held top 100 positions since the ranking began in 2014, when much fewer universities took part in the ranking globally.