Godse remark: Congress leader Govardhan Dangi threatens to burn alive BJP's Pragya Thakur

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. 

Washington, Apr 23: Air pollution over northern India has plummeted to a 20-year-low for this time of the year, according to satellite data published by US space agency National Aeronautics and Space Administration (NASA).
The US space agency's satellite sensors observed aerosol levels at a 20-year low post the countrywide lockdown, implemented to slow the spread of the novel coronavirus.

"We knew we would see changes in atmospheric composition in many places during the lockdown," said Pawan Gupta, a Universities Space Research Association (USRA) scientist at NASA''s Marshall Space Flight Center. "But I have never seen aerosol values so low in the Indo-Gangetic Plain at this time of year," added Mr Gupta.

Acting Assistant Secretary of State for South and Central Asia Alice G Wells tweeted, "These images from NASA were taken each spring starting in 2016 and show a 20-year low in airborne particle levels over India. When India and the world are ready to work and travel again, let's not forget that collaborative action can result in cleaner air."

The data published with maps show aerosol optical depth (AOD) in 2020 compared to the average for 2016-2019. Aerosol optical depth is a measure of how light is absorbed or reflected by airborne particles as it travels through the atmosphere.

If aerosols are concentrated near the surface, an optical depth of 1 or above indicates very hazy conditions. An optical depth, or thickness, of less than 0.1 over the entire atmospheric vertical column is considered "clean." The data were retrieved by the Moderate Resolution Imaging Spectroradiometer (MODIS) on NASA's Terra satellite.

In the first few days of the lockdown, it was difficult to observe a change in the pollution signature. "We saw an aerosol decrease in the first week of the shutdown, but that was due to a combination of rain and the lockdown," said Mr Gupta.

Around March 27, heavy rain poured over vast areas of northern India and helped clear the air of aerosols. Aerosol concentrations usually increase again after such heavy precipitation.

"After the rainfall, I was really impressed that aerosol levels did not go up and return to normal. We saw a gradual decrease and things have been staying at the level we might expect without anthropogenic emissions," Mr Gupta said.

On March 25, the Indian government placed its 1.3 billion citizens under a strict lockdown to reduce the spread of COVID-19. The countrywide mandate decreased activity at factories and severely reduced car, bus, truck and airplane traffic. Every year, aerosols from anthropogenic (human-made) sources contribute to unhealthy levels of air pollution in many Indian cities.

Aerosols are tiny solid and liquid particles suspended in the air that reduce visibility and can damage the human lungs and heart.

In southern India though, the story is a little hazier. Satellite data show aerosol levels have not yet decreased to the same extent. In fact, levels seem to be slightly higher than in the past four years. The reasons are unclear but could be related to recent weather patterns, agricultural fires, winds or other factors.

"This a model scientific experiment," Robert Levy, program leader for NASA's MODIS aerosol products, said about the lockdown and its effects on pollution.

"We have a unique opportunity to learn how the atmosphere reacts to sharp and sudden reductions in emissions from certain sectors. This can help us separate how natural and human sources of aerosols affect the atmosphere," Mr Levy added.

Jammu, Jan 18: Prepaid mobile connections were restored in Jammu and Kashmir on Saturday and 2G services resumed in two districts of the valley after being disconnected on August 5 last year. Voice and SMS facilities were restored for all local prepaid mobile phones across the Union territory.

Rohit Kansal, the principal secretary to the administration of Jammu and Kashmir said the order will come into effect from Saturday.

In order to consider giving mobile Internet connectivity on such SIM cards, the telecom service providers will have to verify the credentials of the subscribers, he said.

Internet service providers have been asked to provide fixed line Internet connectivity in all the 10 districts of Jammu region and two districts, Kupwara and Bandipora, in North Kashmir.

Telecom services were shut in the entire Jammu and Kashmir on August 5 when the Centre abrogated special status to the erstwhile state and also bifurcated it into two Union Territories.

However, the Supreme Court came down heavily on the UT administration last week for arbitrarily shutting down the Internet, the facility described as the fundamental right by the apex court.