Govt. may cut spend, raise NRI deposit rates to boost economy

June 24, 2012
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New Delhi, June 24: The steps to be announced on Monday by the government and the Reserve Bank of India may include raising the interest for deposits of Non-Resident Indians, cutting down wasteful expenditures and unveiling a bond issue for overseas investors to improve capital inflows in the wake of the rout in rupee.

Economic growth has fallen to a nine-year low of 6.5 per cent in 2011-12 and industrial output continues to be sluggish with a mere 0.1 per cent growth in April. Inflation too remained at an elevated level of 7.55 per cent in May 2012.

“Private investment in India is constrained by lack of availability of funds. Government might announce some measures for attracting investments and also steps to cut down wasteful expenditures,” said Y.K. Alagh, chairman, Institute of Rural Management.

Hit by a weak global sentiment and subdued local macroeconomic performance, the rupee has lost over 25 per cent in the last one year. It also breached the 57 level against the dollar on June 22, 2012.

Market analysts expect RBI to announce an increase in interest rates for NRI deposits. They also expect government to announce a bond issue to attract inflows.

“RBI may increase the interest rate on FCNR(B) deposit further and announce the issuance of bonds for Non-Resident Indians to address the issues in the short-term” Crisil Chief Economist D.K. Joshi said.

Experts also see steps being taken to reduce the twin deficits. CNI Research Head Kishor Ostwal said, “It might take steps to tame fiscal and current account deficits.”

Finance Minister Pranab Mukherjee had on Saturday announced that the government and the RBI would take steps to arrest the declining rupee and improve market conditions.

“The steps we have taken... And we will be able to take certain measures to be announced on Monday which will improve market condition,” he had said.

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Agencies
June 21,2020

New Delhi, June 21: The world is feeling the need for yoga more than ever due to the coronavirus pandemic and the ancient Indian practice is helping a large number of Covid-19 patients across the globe in defeating the disease, Prime Minister Narendra Modi said on Sunday.

The coronavirus specifically attacks the respiratory system and 'pranayama' or breathing exercise helps in strengthening the respiratory system the most, Modi said in his message on the sixth International Day of Yoga.

Modi said yoga has emerged as a force for unity and it does not discriminate as it goes beyond race, colour, gender, faith and nations.

"Yoga enhances our quest for a healthier planet. It has emerged as a force for unity and deepens the bonds of humanity. It does not discriminate. It goes beyond race, colour, gender, faith and nations. Anybody can embrace Yog," the prime minister said.

In his nearly 15-minute address early Sunday morning, Modi said that due to the coronavirus pandemic, the world is feeling the need for yoga more than ever.

"If our immunity is strong, it is of great help in defeating this disease. For boosting immunity, there are several methods in yoga, various 'asanas' are there. These asanas are such that they increase the strength of the body and also strengthen our metabolism," he said.

Talking about the benefits of 'pranayama' -- a form of breathing exercise, Modi said it is very effective and has countless variations like 'Sheetali, Kapalbhati and Bhrastika'.

"All these forms of yoga, help a lot in strengthening both our respiratory and immune system," he said, urging people to include 'pranayama' in their daily routine.

"A large number of Covid-19 patients all over the world are taking the benefits of all these techniques of yoga. The strength of yoga is helping them defeat this disease," Modi said.

Asserting that anybody can embrace yoga, the prime minister said that all that is needed is some part of one's time and an empty space.

"Yoga is giving us not only the physical strength, but also mental balance and emotional stability to confidently negotiate the challenges before us," Modi said.

"If we can fine-tune our chords of health and hope, the day is not far away when world will witness the success of a healthy and happy humanity. Yoga can definitely help us make this happen," he said.

With the shadow of the COVID-19 pandemic looming large, International Day of Yoga is being marked on digital media platforms sans mass gatherings. This year's theme is 'Yoga at Home and Yoga with Family'.

Yoga Day is going digital for the first time since June 21, 2015, when it began to be celebrated annually across the world, coinciding with the Summer Solstice each year.

On December 11, 2014, the United Nations General Assembly declared June 21 as 'International Day of Yoga', months after Prime Minister Modi had proposed the idea.

The Ministry of Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) had planned to hold a grand event in Leh, but cancelled it due to the pandemic.

In his message on Sunday, Modi said the International Yoga Day is a day of unity and gives the message of universal brotherhood.

"It is a day of oneness and humanness. What brings us together, unites us, that is yoga. What bridges distances is yoga. In times of this coronavirus pandemic, people's participation in the 'My Life - My Yoga' across the world shows that people's interest in yoga is increasing," he said.

He said that doing work properly and fulfilling one's duties is also a form of yoga.

"Eating the right food, playing the right sports, having right habits of sleeping and waking, and doing your work and your duties is yoga," Modi said.

"With this 'karmayoga', we get the solution to all the problems. 'Karmayoga' is also helping others selflessly. This spirit of 'karmayoga' is embedded in the spirit of India. Whenever the need arose, the whole world witnessed India's selflessness," he said.

The power as an individual, society and country increases manifold when people act according to yoga and with the spirit of 'karmayoga', Modi said.

"Today we have to take a pledge in this spirit -- we will do everything possible for our health, for the health of our loved ones. As a conscious citizen, we will move forward unitedly as a family and society," he said.

The PM's message was followed by a live demonstration of Common Yoga Protocol (CYP). The CYP drill was designed keeping in mind people of different age groups and of varied walks of life, the ministry had said in its statement.

Yoga programmes are organised across the globe by Indian missions every year, but this year will be different. Several missions are organising digital events to mark the occasion.

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Agencies
February 25,2020

New Delhi, Feb 25: Union Home Minister Amit Shah on Monday told a meeting of Delhi Lieutenant Governor Anil Baijal, Chief Minister Arvind Kejriwal and party leaders that "professional assessment" is that the violence in north-east Delhi has been "spontaneous".

He also said adequate forces have been already deployed in affected areas even as he urged political parties to avoid provocative speeches and statements which could flare up the situation and desist from rumour-mongering. He also instructed Delhi Police Commissioner Amulya Patnaik to re-activate local peace committees. 

"Shah noted that the professional assessment is that the violence in the capital has been spontaneous. He expressed confidence in Delhi Police and said that the force has shown maximum restraint to get the situation under control," a statement issued by the Ministry of Home Affairs (MHA) said.

However, on Monday, government sources had claimed that violence in the national capital "appeared to be orchestrated" to coincide with the high-profile visit. A PTI report from Hyderabad on Tuesday also quoted Minister of State for Home G Kishan Reddy as saying that the violence in Delhi has been perpetrated intentionally and the Narendra Modi government would not tolerate such incidents. 

While Shah said adequate forces have been deployed, there were also reports that the Delhi Police Commissioner told MHA top brass that it did not have adequate forces to control the violence that erupted in north-east Delhi. However, Delhi Police later tweeted that the Commissioner has denied that "no such information was given to MHA" and such reports were "totally baseless". 

Urging parties to avoid provocative speeches and statements which could flare up the situation, the statement said, Shah expressed confidence in Delhi Police and said that the force has shown maximum restraint to get the situation under control.

Appealing to all to maintain restraint and desist from rumour-mongering while instructing the Delhi Police Commissioner to re-activate local peace committees, Shah said Delhi's borders with Uttar Pradesh and Haryana have been under surveillance for the last three days. 

Shah also urged parties to ask their local leaders to hold meetings in sensitive areas and instructed senior police officers to visit vulnerable police stations at the earliest

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Agencies
February 29,2020

New Delhi, Feb 29: Former RBI governor Raghuram Rajan has said slowdown in growth is due to the current government focussing more on meeting its political and social agenda rather than paying attention to the economy.

India can still reverse its slowing economic growth by paying attention to key issues, he said. "It's a sad story, I think most recently, it is politics," Rajan said in response to a question on what was stopping India's growth which remains below potential.

In an interview to Bloomberg TV, Rajan said unfortunately the current government after a massive election win has "focussed more on fulfilling its political and social agenda rather than paying attention to the economic growth".

"Unfortunately, this drift has continued a pace of slowing growth, which was precipitated initially by some actions the government took such as the demonetisation and a poorly rolled out Goods and Services Tax (GST) reform," Rajan said.

India's GDP growth hit nearly 7-year low of 4.7 per cent in the December quarter, as per official data released on Friday.

The GDP growth for the quarter is the lowest since January-March of 2012-13.

In the interview, which was telecast before the official numbers were released, Rajan said India has not paid sufficient attention to cleaning up the financial sector and unfortunately, that is leading to the slowing growth.

"These are things that they can change if attention is paid to them and appropriate actions are taken," Rajan, Professor of Finance at University of Chicago Booth School of Business, said.

On being asked about the spread of the coronavirus globally and its impact, he said there will certainly be some legacy issues in terms of business rethinking in the global supply chain.

"If it is disrupted anywhere, the entire supply chain is held ransom and companies are going to start rethinking that should we actually have these really spread out global supply chain or to bring them back closer home and how much diversification should we have. Should we have multiple production sites across the world rather than have it focussed primarily in Asia," he said.

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