Demonetisation, GST held back growth: Raghuram Rajan

Agencies
November 11, 2018

Washington, Nov 11:Demonetisation and the Goods and Services Tax (GST) are the two major headwinds that held back India’s economic growth last year, former RBI governor Raghuram Rajan has said, asserting that the current 7% growth rate is not enough to meet the country’s needs.

Addressing an audience at the University of California in Berkeley on Friday, Rajan said for four years — 2012 to 2016 — India was growing at a faster pace before it was hit by two major headwinds. “The two successive shocks of demonetisation and GST had a serious impact on growth in India. Growth has fallen off interestingly at a time when growth in the global economy has been peaking,” he said delivering the second Bhattacharya Lectureship on the Future of India.

On the second anniversary of demonetisation on November 8, finance minister Arun Jaitley staunchly defended the drive, saying ‘prophets of doom’ have been proven wrong as hard data of two years shows an increase in tax base, greater formalisation of the economy and India retaining the fastest growing economy tag for the fifth year in a row. “By the time the first five years of this government are over, we will be close to doubling the assessee base,” he said in a Facebook blog ‘Impact of Demonetisation’.

Rajan, in his address, said a growth rate of 7% per year for 25 years is “very very strong”, but in some sense this has become the new Hindu rate of growth, which earlier used to be 3.5%, Rajan said. “The reality is that seven is not enough for the kind of people coming into the labour market and we need jobs for them, so we need more and cannot be satisfied at this level,” he said. Observing that India is sensitive to global growth, he said India has become a much more open economy, and if the world grows, it also grows more. “What happened in 2017 is that even as the world picked up, India went down. That reflects the fact that these blows (demonetisation and GST) have really really been hard blows…Because of these headwinds we have been held back,” he said.

While India’s growth is picking up again, there is the issue of oil prices, the economist noted, referring to the huge reliance of India on import of oil for its energy needs. With oil prices going up, Rajan said things are going to be little tougher for the Indian economy, even though the country is recovering from the headwinds of demonetisation and initial hurdles in the implementation of the GST.

Commenting on the rising non-performing assets (NPA), he said the best thing to do in such a situation is to “clean up”. It is essential to “deal up with the bad stuff”, so that with clean balance sheets, banks can be put back on the track. “It has taken India far long to clean up the banks, partly because the system did not had instruments to deal with bad debts,” Rajan said. The bankruptcy code, he asserted, cannot be the only way to clean up the banks. It is the only one element of the larger cleanup plan, he said and called for a multi-prong approach to address the challenge of NPAs in India.

India, he asserted, is capable of a strong growth. As such the 7% growth is now being taken granted. “If we go below 7%, then we must be doing something wrong,” he said, adding that that is

the base on which India has to grow at least for the next 10-15 years. The country today is facing three major bottlenecks. One is the torn infrastructure, he said, observing that construction is the one industry that drives the economy in early stages. “Infrastructure creates growth,” he said. Second, short-term target should be to clean up the power sector and to make sure that the electricity produced actually goes to the people who want the power, he said. Cleaning up the banks is the third major bottleneck in India’s growth, he said.

Part of the problem in India is that there is an excessive centralisation of power in the political decision making, he said. “India can’t work from the centre. India works when you have many people taking up the burden. And today the central government is excessively centralised,” Rajan said. An example of this is the quantum of decisions that requires the ascent of the Prime Minister’s Office, Rajan said as he highlighted the recent unveiling of the ‘Statue of Unity’ of Sardar Vallabhbhai Patel as an example of a massive project that required the approval of the PMO.

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Agencies
February 17,2020

Google on Monday announced it is gradually winding down its free public Wi-Fi Station programme currently available at over 400 railway stations in India, and will work with the Indian Railways and Railtel Corporation to help them with existing sites so they can remain useful resources for people.

Google launched its Station initiative in India in 2015 to bring fast, free public Wi-Fi to over 400 of the busiest railway stations in the country by mid-2020.

"We crossed that number by June 2018 and implemented Station in thousands of other locations around the country in partnership with telecommunications companies, ISPs and local authorities," Caesar Sengupta, Vice President, Payments and Next Billion Users, Google, said in a statement.

"Over time, partners in other countries asked for Station too and we responded accordingly. We're grateful for these partnerships, especially with the Indian Railways and the Government of India, that helped us serve millions of users over the last few years," he added.

According to Google, the decision to shut Station has been taken keeping the affordable mobile data plans and mobile connectivity in mind that is improving globally including in India.

"India, specifically now has among the cheapest mobile data per GB in the world, with mobile data prices having reduced by 95 per cent in the last 5 years, as per TRAI in 2019," said Sengupta.

The Indian users consume close to 10GB of data, each month, on average, according to reports.

"Our commitment to supporting the next billion users remains stronger than ever, from continuing our efforts to make the internet work for more people and building more relevant and helpful apps and services," Sengupta noted.

Global networking giant Cisco last year teamed up with Google to roll out free, high-speed public Wi-Fi access globally, starting with India.

The first pilot under the partnership was rolled out at 35 locations in Bengaluru.

Sengupta said that in addition to the changed context, the challenge of varying technical requirements and infrastructure among our partners across countries has also made it difficult for Station to scale and be sustainable, especially for our partners.

"And when we evaluate where we can truly make an impact in the future, we see greater need and bigger opportunities in building products and features tailored to work better for the next billion user markets," he said.

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Agencies
June 8,2020

Washington DC, Jun 8: Astronomers acting on a hunch have likely resolved a mystery about young, still-forming stars and regions rich in organic molecules closely surrounding some of them.

They used the National Science Foundation's Karl G Jansky Very Large Array (VLA) to reveal one such region that previously had eluded detection and that revelation answered a longstanding question.

The regions around the young protostars contain complex organic molecules which can further combine into prebiotic molecules that are the first steps on the road to life.

The regions, dubbed "hot corinos" by astronomers, are typically about the size of our solar system and are much warmer than their surroundings, though still quite cold by terrestrial standards.

The first hot corino was discovered in 2003 and only about a dozen have been found so far. Most of these are in binary systems, with two protostars forming simultaneously.

Astronomers have been puzzled by the fact that, in some of these binary systems, they found evidence for a hot corino around one of the protostars but not the other.

"Since the two stars are forming from the same molecular cloud and at the same time, it seemed strange that one would be surrounded by a dense region of complex organic molecules and the other wouldn't," said Cecilia Ceccarelli, of the Institute for Planetary Sciences and Astrophysics at the University of Grenoble (IPAG) in France.

The complex organic molecules were found by detecting specific radio frequencies, called spectral lines, emitted by the molecules. Those characteristic radio frequencies serve as "fingerprints" to identify the chemicals.

The astronomers noted that all the chemicals found in hot corinos had been found by detecting these "fingerprints" at radio frequencies corresponding to wavelengths of only a few millimetres.

"We know that dust blocks those wavelengths, so we decided to look for evidence of these chemicals at longer wavelengths that can easily pass through dust," said Claire Chandler of the National Radio Astronomy Observatory, and principal investigator on the project.

"It struck us that dust might be what was preventing us from detecting the molecules in one of the twin protostars," added Chandler.

The astronomers used the VLA to observe a pair of protostars called IRAS 4A, in a star-forming region about 1,000 light-years from Earth. They observed the pair at wavelengths of centimetres.

At those wavelengths, they sought radio emissions from methanol, CH3OH (wood alcohol, not for drinking). This was a pair in which one protostar clearly had a hot corino and the other did not, as seen using the much shorter wavelengths.

The result confirmed their hunch. "With the VLA, both protostars showed strong evidence of methanol surrounding them. This means that both protostars have hot corinos. The reason we did not see the one at shorter wavelengths was because of dust," said Marta de Simone, a graduate student at IPAG who led the data analysis for this object.

The astronomers cautioned that while both hot corinos now are known to contain methanol, there still may be some chemical differences between them. That, they said, can be settled by looking for other molecules at wavelengths not obscured by dust.

"This result tells us that using centimetre radio wavelengths is necessary to properly study hot corinos," Claudio Codella of Arcetri Astrophysical Observatory in Florence, Italy, said.

"In the future, planned new telescopes such as the next-generation VLA and SKA, will be very important to understanding these objects," added Codella.

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News Network
May 7,2020

Toronto, May 7: Scientists have uncovered how bats can carry the MERS coronavirus without getting sick, shedding light on what triggers coronaviruses, including the one behind the COVID-19 pandemic, to jump to humans.

According to the study, published in the journal Scientific Reports, coronaviruses like the Middle East respiratory syndrome (MERS) virus, and the COVID19-causing SARS-CoV-2 virus, are thought to have originated in bats.

While these viruses can cause serious, and often fatal disease in people, bats seem unharmed, the researchers, including those from the University of Saskatchewan (USask) in Canada, said.

"The bats don't get rid of the virus and yet don't get sick. We wanted to understand why the MERS virus doesn't shut down the bat immune responses as it does in humans," said USask microbiologist Vikram Misra.

In the study, the scientists demonstrated that cells from an insect-eating brown bat can be persistently infected with MERS coronavirus for months, due to important adaptations from both the bat and the virus working together.

"Instead of killing bat cells as the virus does with human cells, the MERS coronavirus enters a long-term relationship with the host, maintained by the bat's unique 'super' immune system," said Misra, one of the study's co-authors.

"SARS-CoV-2 is thought to operate in the same way," he added.

Stresses on bats, such as wet markets, other diseases, and habitat loss, may have a role in coronavirus spilling over to other species, the study noted.

"When a bat experiences stress to their immune system, it disrupts this immune system-virus balance and allows the virus to multiply," Misra said.

The scientists, involved in the study, had earlier developed a potential treatment for MERS-CoV, and are currently working towards a vaccine against COVID-19.

While camels are the known intermediate hosts of MERS-CoV, they said bats are suspected to be the ancestral host.

There is no vaccine for either SARS-CoV-2 or MERS, the researchers noted.

Follow latest updates on the COVID-19 pandemic here

"We see that the MERS coronavirus can very quickly adapt itself to a particular niche, and although we do not completely understand what is going on, this demonstrates how coronaviruses are able to jump from species to species so effortlessly," said USask scientist Darryl Falzarano, who co-led the study.

According to Misra, coronaviruses rapidly adapt to the species they infect, but little is known on the molecular interactions of these viruses with their natural bat hosts.

An earlier study had shown that bat coronaviruses can persist in their natural bat host for at least four months of hibernation.

When exposed to the MERS virus, the researchers said, bat cells adapt, not by producing inflammation-causing proteins that are hallmarks of getting sick, but instead by maintaining a natural antiviral response.

On the contrary, they said this function shuts down in other species, including humans.

The MERS virus, the researchers said, also adapts to the bat host cells by very rapidly mutating one specific gene.

These adaptations, according to the study, result in the virus remaining long-term in the bat, but being rendered harmless until something like a disease, or other stressors, upsets this balance.

In future experiments, the scientists hope to understand how the bat-borne MERS virus adapts to infection and replication in human cells.

"This information may be critical for predicting the next bat virus that will cause a pandemic," Misra said.

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