Chidambaram hits out at BJP, Narendra Modi at Davos

January 22, 2014

ChidambaramDavos, Jan 22: As India prepares for elections, Finance Minister P Chidambaram today hit out at BJP terming its economic policies as retrograde and "blood-eyed" and asked why the Opposition Party's Prime Ministerial candidate Narendra Modi never fielded a Muslim candidate.

He also expressed confidence that Rahul Gandhi would be Prime Minister if Congress comes back to power, saying the young leader as enough "fire in his belly" for the post, although it was unlikely that any party would get majority and polls were likely to throw a "very very fractured mandate".

Speaking at the World Economic Forum (WEF) Annual Meeting here, Chidambaram also took dig at Aam Aadmi Party, saying there was no place for mob-democracy in India and the country was a party-based democracy where individuals can not be bigger than a party.

On BJP being anti-muslim, Chidambaram said some sections of Muslim people may have voted for BJP, as Narendra Modi himself claims, but the fact is that Modi has never fielded any Muslim candidate ever in any election in his state. "What does that mean," he wondered.

When asked why doesn't he join BJP, Chidambaram said BJP does not represent all sections of India and it does not even have presence in many parts of the country."It has got policies that would destroy the very idea of India. Their's a blood-eyed economic model," he said.

Asked about the next Prime Minister, Chidambaram said, "nothing is impossible, but it is unlikely because Congress party is clear that if Congress is in position to form a government it will be headed by Rahul Gandhi".

In 2004 Sonia Gandhi was elected leader, but the next day she declined and another leader was chosen. That model has worked, but that does not mean that we will have same model again, he said.

"If Congress is called to form the government, I'm pretty certain in my mind that Rahul Gandhi will be the Prime Minister," he said.

Asked whether Rahul Gandhi had enough fire in his belly for the PM post, Chidambaram said: "There was enough fire in his belly when he spoke at the AICC meeting".

On upcoming general elections, Chidambaram said it may be an unfortunate event that no party is a clear winner and no one gets majority, as the elections are likely to throw a very fractured mandate.

Meanwhile, the Finance Minister said that unravelling of AAP has already begun within weeks of it coming to power in Delhi and it remains to be seen whether an "urban rejection" of mainstream parties that was seen in Delhi elections would be replicated in other parts of the country.

"One time that Mrs Gandhi stumbled and brought in an authoritative model that was at the time of Emergency, it failed and she had to go back," Chidambaram said.

In Delhi elections the rejection was for both Congress and BJP, he said, adding that one was ruling the state government and the other municipal bodies.

"But it is just a few weeks and we are seeing an unravelling of the Aam Aadmi Party," he said.

Saying that he was not privy to discussions in the state party unit regarding support to AAP, Chidambaram said Congress party was divided in its decision to give outside support to AAP and it was one section favouring the support that prevailed.

Responding to a query on how BJP can be described as following 'blood-eyed' economic model when factories were not being destroyed in Gujarat and businessmen were happy, Chidambaram said it is not about destroying factories.

Giving examples, he said that BJP is opposing multi brand retail on premise that it would kill jobs, while the fact was just the opposite.

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News Network
July 16,2020

New Delhi, Jul 16: With India's economic growth sputtering, the Reserve Bank of India was expected to maintain a rate-cutting cycle, but an uptick in near-term inflation could give the central bank's Monetary Policy Committee reason to pause for now.

Having cut its key lending rate by an aggressive 115 basis points (bps) in 2020, on top of 135 bps cuts in 2019, the RBI so far has had little success in spurring credit growth amid varying degrees of lockdowns across India.

Some economists and market insiders argue it may be prudent for the MPC, the policy committee, to hold its fire when it meets early next month.

"It's probably too early to administer a demand stimulus. The RBI still has room to cut rates, but we probably want to be more cautious of the timing," said Venkat Pasupuleti, portfolio manager at Dalton Investments.

"Maybe they should wait a quarter to see how things pan out once the lockdown situation is eased further."

Market participants have factored in at least a 25 bps rate cut by the MPC on August 6 while analysts are predicting a total 50-75 bps cuts over the rest of the fiscal year that runs to March 31.

The spike in the retail inflation rate above the RBI's mandated 2%-4% target range is another reason for the central bank to take a breather, analysts say.

Annual retail inflation rose to 6.09% in June, compared to 5.84% in March and sharply above a 5.30% median forecast in a Reuters poll of economists.

Rahul Bajoria, an economist at Barclays, said the spike in both consumer and wholesale prices "could lead to a tempering in enthusiasm for material front-loaded policy support from here on."

Almost all economists however agreed the RBI cannot move away from its accommodative stance or call an end to the rate cutting cycle just yet.

India's economy grew at 3.1% in the March quarter - an eight year low - and some economists have predicted a contraction of more than 20% in the June quarter and a contraction of up to 5% in the fiscal year.

"Even in the event of a pause, we think the RBI and MPC would want to hold out the promise of more cuts," said A. Prasanna, economist with ICICI Securities.

RBI Governor Shaktikanta Das said in a recent speech the need of the hour is to restore confidence, preserve financial stability, revive growth and recover stronger, suggesting inflation concerns are unlikely to deter the downward trajectory for rates too soon.

"The August policy decision would boil down to a judgment call over whether RBI can maintain easy monetary and financial conditions without the aid of a token rate cut," Prasanna said. 

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News Network
March 28,2020

New Delhi, Mar 28: The total number of coronavirus positive cases in the country has risen to 918 that include foreign nationals, the Ministry of Health and Family Welfare said on Saturday.

The ministry said: "The total positive cases of coronavirus are 918. The active COVID-19 cases are 819. Cured and discharged are 79. While 19 deaths have occurred so far. One person with COVID-19 migrated. As many as 15,24,266 passengers were screened at airports."

Prime Minister Narendra Modi on Tuesday announced a 21-day lockdown in the entire country to deal with the spread of coronavirus, saying that "social distancing" is the only option to deal with the disease, which spreads rapidly.

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News Network
June 18,2020

New Delhi, Jun 18: For the 12th consecutive day, state-run oil marketing companies (OMCs) has increased the price of fuel on Thursday.

The price of petrol is increased by 53 paise a litre while that of diesel by 64 paise a litre.

Petrol and diesel will now cost Rs 77.81/litre and Rs 76.43/litre respectively in Delhi.

Notably, oil marketing companies have been adjusting retail rates in line with costs after an 82-day break from rate revision amidst the COVID-19 pandemic. These firms on June 7 restarted revising prices in line with costs.

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