HAL takes a lead role in Aero India 2019

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. 

Patna, Jan 12: Prashant Kishor, national vice-president of the Janata Dal (United), a key ally of the BJP-led NDA, has thanked Congress general secretary Priyanka Gandhi and former AICC chief Rahul Gandhi for their support in opposing CAA (Citizenship Amendment Act) and NRC (National Register of Citizens).

Perceived as one of the closest associates of Bihar Chief Minister Nitish Kumar, who is also the party’s national president, PK (as Prashant is fondly called) also assured the two top Congress leaders that the contentious legislation would not be implemented in Bihar where JD (U) is ruling the State with the support of the BJP.

“I join my voice with all to thank #Congress leadership for their formal and unequivocal rejection of #CAA_NRC. Both @rahulgandhi and @priyankagandhi deserve special thanks for their efforts on this count….also would like to reassure to all – CAA/NRC won’t be implemented in Bihar,” tweeted PK on Sunday.

The development assumes significance as a day back, the Congress Working Committee (CWC) meeting, chaired by Sonia Gandhi, had strongly opposed CAA/NRC/NPR as it was aimed at “sinister design of the present regime to divide Indian people into religious lines.”

The latest tweet by PK is also being seen as a rebuff to the BJP, which again recently reiterated that “the BJP should project its own chief ministerial candidate during the 2020 Bihar Assembly elections.”

The JD (U) had taken umbrage over such provocative statements by BJP leaders and asked the saffron camp to rein in its ‘loudmouths’ as BJP chief Amit Shah had already made it clear that the next Assembly polls in Bihar would be fought under the leadership of Nitish.

Of late, PK has been quite vocal about his opposition to the Centre’s policies, particularly the contentious issues of NRC and CAA. Besides, he even dubbed senior BJP leader Sushil Modi as the man who became Bihar’s Deputy Chief Minister due to ‘circumstances’ as the BJP was decisively decimated during the 2015 Assembly elections.

Nitish never reprimanded PK for his jibe against Modi, thereby giving rise to speculations whether Bihar was again heading for a political churning ahead of Assembly polls slated for October this year.

New Delhi, Jun 29: The Supreme Court on Monday asked the Central government to find out the facts related to blacklisting and canceling of visas of foreign nationals who attended the congregation of Tablighi Jamaat in Nizamuddin area here.

A three-judge bench headed by Justice AM Khanwilkar and also comprising Justices Dinesh Maheshwari and Sanjiv Khanna asked the Centre to find out the facts related to the matter and fixed it for further hearing on July 2.

The apex court asked Solicitor General Tushar Mehta "if visas of these foreigners are canceled, then why are they still in India?"

"You (Centre) can deport them. If visas are not canceled, then, it is a different situation," the court said. The top court was hearing a number of petitions challenging blacklisting and cancellation of visas filed by few foreigners.

Mehta sought more time to file a reply on the matter, after which the court posted the matter for further hearing on July 2.

The petitions, filed by the foreign nationals from 35 countries, have sought directions to the Ministry of Home Affairs (MHA) to remove their names from the blacklist, reinstate their visas and facilitate their return to their respective countries.

The petitions sought to declare the decision of the MHA of blacklisting the foreign nationals who attended the Tablighi Jamaat congregation as "arbitrary".

"Unilateral blacklisting of 960 foreigners by the Home Ministry vide press release dated April 2, 2020, and the subsequent blacklisting of around 2500 foreigners as reported on June 4, 2020, is in violation of Article 21. Therefore, it is void and unconstitutional as the petitioners have neither been provided any hearing nor notice or intimation in this regard," the plea said.

One of the petitioners named Fareedah Cheema, a Thai national in the seventh month of her pregnancy, said she was quarantined in March, like other foreign nationals but was released from quarantine only in late May and is still at a facility under restricted movements, without the avenue to go back to her home nation and experience the birth of her child with security and dignity, with her loved ones.

These foreign nationals presently in India were blacklisted for a period of 10 years from traveling to India for their alleged involvement in Tablighi Jamaat activities.

The Home Ministry had said that foreign Tablighi Jamaat members, who were staying in India in violation of visa rules during the nationwide lockdown implemented to combat the COVID-19 spread, have been blacklisted.
A large congregation organised by Tablighi Jamaat in the national capital in March had emerged as a major COVID-19 hotspot in the country.

The government had said the decision of banning the foreign Tablighi Jamaat members was taken after details of foreigners found illegally living in mosques and religious places emerged from various states across the country.