Lok Sabha election, AAP dominate India discussions at Davos

January 23, 2014

AAP_dominateDavos, Jan 23: The Aam Aadmi Party and talks about next Lok Sabha election seem to be hogging the limelight when it comes to discussions around India at the World Economic Forum's annual talk-fest of the rich and famous from across the globe.

While not many are willing to go on record with their take on 'India's newest political phenomenon' — Arvind Kejriwal-led Aam Aadmi Party — and its potential impact on the upcoming general elections, almost every foreign leader is quizzing their Indian counterparts about these issues.

Some Indian leaders have dismissed AAP's emergence calling it a Delhi-centric development and saying such authoritarian and mob-based politics has no place in the Indian democracy.

Still, they admit that AAP has caught the imagination of people in India and it cannot be wished away as it is making the right noises about the need to improve governance.

While trying to convince foreign investors about the continuity of the Indian growth story, the Indian leaders are also facing tough questions here about the widespread anticipation that the next elections could throw a fractured mandate, said many participants at the WEF.

According to them, AAP's emergence on the political scene has further added to the uncertainty about the outcome of Lok Sabha poll and corporates have begun looking into the possibility of engaging with this new political force.

An Indian-origin chief of a large global conglomerate said he was so impressed with speeches made by Kejriwal that he called him up from overseas and expressed his desire to meet him on his next visit to Delhi.

While seriously wanting to engage with this new phenomenon, the businessman said he could not pursue the same as it would have attracted unnecessary publicity about being aligned with one particular political force that is currently in the eye of storm of every other party.

Industry body CII's director general Chandrajit Banerjee said the political scenario is always very important for the economic policies of a country and therefore general elections are definitely a crucial issue.

"As far as AAP is concerned, it is too early to make a judgement, although emergence of this party has definitely been a curtain raiser sort of thing for everybody," he said, while adding that the CII is also looking at engaging with AAP like it has done with all other political parties.

He admitted that the emergence of AAP has brought to the fore one clear theme — about governance and accountability of the government.

"This could be a big game changer and anybody who comes to power would have to focus a lot on governance and ensure that there is accountability on their part," Banerjee said.

IT major Tech Mahindra's vice-chairman Vineet Nayyar said political elections are always an issue and they create their own anticipations.

"The world cannot be indifferent when one-seventh of the world is going to get a new government. Obviously there is an interest (among foreign leaders here) in Indian elections, because India is very important on the global economic platform," he said.

Global rights group Amnesty International's secretary general Salil Shetty said the emergence of AAP has shown that people "do not accept nonsense anymore" and similar trends are being seen in Brazil, Russia and many other places.

"Accountability to the population has to be there. AAP emergence has at least created a scare among the political leadership that you have to be accountable," he said.

Bharti Group chairman Sunil Mittal said that AAP is an expression of people's thinking.

"I am a keen political observer. For me, AAP is nothing but an expression of people's thinking....

"It will be one of the most difficult elections to predict, but it will be one of the most interesting elections," he said while participating in a session on India here on Wednesday.

During the session, finance minister P Chidambaram had said that AAP should quit if they don't know how to govern.

"That (holding two-day long dharna on Delhi streets) is not governance. That is abdicating governance. If you don't know how to govern, quit," he had said.

On why the Congress party was continuing to support the minority AAP government in Delhi, Chidambaram had said, "Opinion in the party was divided. Local unit took that decision, right or wrong. The point is whoever is in government, must govern".

"You can't mask your inability to govern by street agitations. The line that divides agitation and anarchy is a very thin line and they may have crossed that line in the last few days," he said.

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News Network
March 2,2020

New Delhi, Mar 2: The Supreme Court on Monday dismissed a curative petition filed by convict Pawan Kumar Gupta who was sentenced to death in the 2012 Nirbhaya gang rape and murder case.

A five-judge bench headed by Justice N V Ramana said that no case is made out for re-examining the conviction and the punishment of the convict.

Other members of the bench were justices Arun Mishra, R F Nariman, R Banumathi and Ashok Bhushan.

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News Network
March 27,2020

Mumbai, Mar 27: Reserve Bank of India (RBI) Governor Shaktikanta Das on Friday said that Monetary Policy Committee (MPC) has taken note of the global economic activity coming to a near standstill due to the coronavirus pandemic and added that large parts of the world could slip into recession in the coming days to the coronavirus crisis.
"The MPC noted that global economic activity has come to a near stand-still as COVID-19 related lockdowns and social distancing are imposed across a widening swath of affected countries. Expectations of a shallow recovery in 2020, from 2019's decade low in global growth, have been dashed," Das said.
"The outlook is now heavily contingent upon the intensity, spread and duration of the pandemic. There is a rising probability that large parts of the world will slip into recession," he added.
The RBI Governor further added that "the implied GDP growth of 4.7 per cent in Quarter 4 of 2019-20, in the second advance estimates of the National Statistics Office which was released in February 2020, within the annual estimate of 5 per cent for the year as a whole is now at risk."
As per the outlook for the year 2020-21, Das said, "Apart from continuing resilience of agriculture and allied activities most other sectors of the economy will be adversely impacted by the pandemic depending upon, its intensity, spread and duration."
Das also announced a reduction in the repo and reverse repo rates for banks.
"The repo rate has been reduced by 75 basis points to 4.4 per cent. The reserve repo rate has been reduced by 90 basis points to 4 per cent," Das said addressing the media.
The decision for "a sizeable reduction" in the policy repo rate, according to the RBI Governor was taken to "revive growth and mitigate the impact of COVID-19 and ensure financial stability." 

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News Network
March 25,2020

India will suspend all domestic flights from midnight Tuesday, the final piece of a nationwide lockdown that threatens Prime Minister Narendra Modi’s attempts to revive an economy already expanding at the slowest pace in more than a decade.

The flight ban compliments a cancellation of all passenger trains through March 31, as authorities try to halt the spread of the coronavirus in the world’s second-most populous country, which has poorly equipped hospitals and inadequate social security. Modi on Monday held a conference call with some of India’s top entrepreneurs and bankers, who urged policymakers to immediately slash interest rates by as much as a full percentage point, transfer cash to the poorest citizens, and suspend loan-repayments.

Over the past three days, state after state has declared curfews and India’s international borders have been shut for most visitors since March 11. India so far has 492 virus cases, including nine deaths. But experts say the country could be on the same trajectory as Italy, where the outbreak quickly escalated, causing hospitals to overflow.
A traveller stands outside a near-empty Delhi Junction Railway Station in Delhi, March 22.

"This is the biggest lockdown in world history,” said Raghu Raman, a former soldier with the Indian Army and founder of the National Intelligence Grid, an umbrella database aimed at countering terrorism. “This strategic pause gives decision-makers more time to arrest the exponential spread of the virus and evaluate trade-offs.”

Controlling the outbreak is crucial for Modi, who remains India’s most popular political leader currently though his economic management has faced criticism. Foreign investors are selling Indian assets at an unprecedented pace and failure to contain deaths and infections could erode some of the prime minister’s personal appeal at home.

Oxford Economics slashed India’s January-March growth forecast to 3%, a number not seen even during the worst of the global financial crisis. The main equity gauge rose about 3% on Tuesday after a record 13.2% plunge Monday, and the rupee stayed near its all-time low.

“A part of the cerebral cortex that senses fear and survival seems to have activated in the minds of investors,” said Umesh Mehta, Mumbai-based head of research at Samco Securities Ltd. “The only relief in this market can come from either policy makers and regulators, or from some positive news that a cure for the pandemic is near.”

Bloomberg Economics estimates Modi’s administration needs at least 1% of gross domestic product -- $30 billion -- to meaningfully respond to the virus outbreak. Meanwhile, the nation’s billionaires are diverting their factories to manufacture medical equipment and pledging to keep paying their staff even as production grinds to a halt. India allowed companies to use their philanthropy funds to prevent the spread of the coronavirus.

Reliance Industries Ltd., controlled by India’s richest man Mukesh Ambani, has helped equip a hospital in Mumbai dedicated to patients of Covid-19, the disease caused by the coronavirus. It will also build quarantine centers and produce 100,000 facemasks a day and other personal protective equipment for health workers. The group’s telecom unit will offer free broadband to enable work-from-home during the lockdown and will pay its lowest paid workers twice a month to protect household incomes.

Ambani joins Mahindra & Mahindra Ltd. Chairman Anand Mahindra and Vedanta Resources Ltd. Chairman Anil Agarwal -- a combined worth of more than $40 billion between the trio -- who have so far made pledges.

Indian companies are responding to Modi’s shutdown call. Maruti Suzuki India Ltd., Tata Motors Ltd., Toyota Kirloskar Motor, Hero MotoCorp., Samsung Electronics Co. and LG Electronics Inc., Mahindra Group, TVS Motor Co., Kia Motors Corp., Renault Nissan Automotive India Private Ltd., and Yamaha Motor India are among companies that have announced factory suspensions.

Policymakers are aware of the risks of such a move. India -- with a record 5.9 trillion rupees of local corporate debt maturing this year -- faces “waves of default” if cash flows aren’t maintained, the government’s principal economic adviser Sanjeev Sanyal said an interview.

Finance Minister Nirmala Sitharaman last week said the government will announce a relief package for coronavirus-affected sectors as soon as possible. The Reserve Bank of India, which is due to review interest rates April 3, announced a 1 trillion rupee cash injection on Monday.

“Let me assure, whatever it takes to keep the cash flow going in the economy will be done,” Sanyal said. “We need to make sure that when we are past the health storm, we still have an economy that has not gotten gridlocked. Because unwinding that would be more difficult.”

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