India Slips to 42nd Place on EIU Democracy Index; US at 21st

Agencies
February 1, 2018

New Delhi, Feb 1: India has slipped to 42nd place on an annual Global Democracy Index amid "rise of conservative religious ideologies" and increase in vigilantism and violence against minorities as well as other dissenting voices.

While Norway has again topped the list, followed by Iceland and Sweden, compiled by the Economist Intelligence Unit (EIU), India has moved down from 32nd place last year and remains classified among "flawed democracies".

The index ranks 165 independent states and two territories on the basis of five categories: electoral process and pluralism, civil liberties, the functioning of government, political participation and political culture. The list has been divided into four broad categories -- full democracy, flawed democracy, hybrid regime and authoritarian regime.

The US (ranked 21), Japan, Italy, France, Israel, Singapore, and Hong Kong have also been named among flawed democracies.

The EIU is the research and analysis division of the UK- based media behemoth The Economist Group. Created in 1946, the EIU describes itself as having over 70 years of experience "in helping businesses, financial firms and governments to understand how the world is changing and how that creates opportunities to be seized and risks to be managed".

The top three positions on the list are occupied by Nordic countries -- Norway, Iceland and Sweden. New Zealand is at fourth and Denmark at fifth place, while others in top-ten include Ireland, Canada, Australia, Finland and Switzerland.

Only top-19 countries have been classified as full democracies, while the hybrid regimes include Pakistan (110th), Bangladesh (92nd), Nepal (94th) and Bhutan (99th).

Those named as authoritarian regimes include China (139th), Myanmar (120th), Russia (135th) and Vietnam (140th).

North Korea is ranked the lowest at 167th, while Syria is a notch better at 166th place.

Top-ranked Norway has been given an overall score of 9.87 with perfect-ten scores for Electoral process and pluralism; Political participation; and Political culture.

Indias overall score has fallen to 7.23 points, even as it scored well on electoral process and pluralism (9.17). It has not managed to score so well on other four parameters -- political culture, functioning of government, political participation and civil liberties.

"The rise of conservative religious ideologies also affected India. The strengthening of right-wing Hindu forces in an otherwise secular country led to a rise of vigilantism and violence against minority communities, particularly Muslims, as well as other dissenting voices," the EIU added.

This years report which also measured the state of media freedom around the world noted that in India, media is partially free.

Moreover, journalists are at risk from government, military and non-state actors and radical groups, and the threat of violence has a chilling effect on media coverage.

"India has also become a more dangerous place for journalists, especially the central state of Chhattisgarh and the northern state of Jammu and Kashmir. The authorities there have restricted freedom of the press, closed down several newspapers and heavily controlled mobile internet services. Several journalists were murdered in India in 2017, as in the previous year," it noted.

In the 2017 Democracy Index, the average global score fell from 5.52 in 2016 to 5.48 (on a scale of 0 to 10). Some 89 countries experienced a decline in their total score compared with 2016. 27 recorded an improvement. The other 51 countries stagnated, as their scores remained unchanged compared with 2016.

Almost one-half (49.3 per cent) of the worlds population lives in a democracy of some sort, although only 4.5 per cent reside in a "full democracy", down from 8.9 per cent in 2015 as a result of the US being demoted from a "full democracy" to a "flawed democracy" in 2016.

Around one-third of the worlds population lives under authoritarian rule, with a large share being in China, EIU noted.

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News Network
May 25,2020

New Delhi, May 25: India witnessed the highest ever spike of 6,977 positive cases in the last 24 hours, taking the total number of COVID-19 to 1,38,845, according to the Union Ministry of Health and Family Welfare.

India is now among the top 10 countries in the world regarding the total number of COVID-19 cases.

With 154 deaths reported in the last 24 hours, the total number of deaths due to COVID-19 now stands at 4,021 in the country.

Out of the total number of cases, 77,103 are active cases and 57,721 have been cured/discharged/migrated.

Maharashtra continues to remain the worst affected state with 50,231 COVID-19 cases, followed by Tamil Nadu (16,277), Gujarat (14,056) and Delhi (13,418).

The fourth phase of the nationwide lockdown imposed as a precautionary measure to contain the spread of COVID-19 is scheduled to end on May 31.

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News Network
May 14,2020

London, May 14: Vijay Mallya on Thursday lost his application seeking leave to appeal in the UK Supreme Court, in a setback for the embattled liquor tycoon who last month lost his High Court appeal against an extradition order to India on charges of fraud and money laundering related to unrecovered loans to his now-defunct Kingfisher Airlines.

The 64-year-old businessman had 14 days to file this application to seek permission to move the higher court on the High Court judgment from April 20, which dismissed his appeal against a Westminster Magistrates' Court's extradition order certified by the UK Home Secretary.

The latest ruling will now go back for re-certification and the process of extradition should be triggered within 28 days.

The UK Crown Prosecution Service (CPS) said Mallya's appeal to certify a point of law was rejected on all three counts, of hearing oral submissions, grant a certificate on the questions as drafted, and grant permission to appeal to the Supreme Court.

The Indian government's response to the appeal application had been submitted earlier this week.

The leave to appeal to the Supreme Court is on a point of law of general public importance, which according to experts is a very high threshold that is not often met.

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News Network
February 2,2020

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.

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