'Legacy & sanctions made Rao decide against nuke tests'

February 23, 2013

Narasimha_RaoWashington, Feb 23: The prospect of a crippling economic sanctions, "improving" electoral chances and his "desire" to be noted as the architect of India's economic revolution might have prevented the then Prime Minister Narasimha Rao from going for nuclear tests in the winter of 1995-96.

This was the conclusion that the Clinton Administration had arrived which for weeks in December and then in January mounted pressure on India by itself and through its allies warning New Delhi against going ahead with nuclear tests in Pokharan, in support of which it provided satellite imageries to the Indian Government.

According to the classified American cables released yesterday by the National Security Archive, which it obtained from the federal government under the freedom of information act, it was by December 10, 1995 that US intelligence agencies informed the Clinton administration about an impending Indian nuclear tests at Pokharan resulting in a flurry of activities by the US. And it was by January 24, 1996, the Clinton Administration concluded that Rao has decided against conducting the nuclear tests.

"Prime Minister Rao probably will not authorise a nuclear test in the near future despite indications that a site in western India is being upgraded for that purpose," a State Department cable concluded on January 24, 1996.

"Though a nuclear test might boost his re-election prospects in April, it would almost certainly provoke international sanctions against India and further jeopardise his government's economic liberalisation program," the cable said.

The Clinton Administration, it said, first became aware of the increased activity at Pokhran in November 1995, adding that the activities included improved perimeter security, other infrastructural upgrades and placement of a large amount of dirt – believed to be stemming material to cover a device once it has been lowered down a test hole – next to drill shafts.

The cable explains why Rao apparently decided against the nuclear test. "Even without a nuclear test, there are indications that Rao's electoral prospects are beginning to improve. Recent allegations that many of Rao's opponents, both inside and outside the Congress party, may have been involved in a major corruption scandal, have given him a tactical advantage as the campaign commences," the secret document said.

According to the cables, the analysts then predicted that Congress party will win sufficient seats in the new parliament to cobble together a coalition government designed to exclude the BJP from power.

"His last hurrah. As he prepares to fight an aggressive election campaign, Rao probably has one eye on posterity. A reluctant Prime Minister even in 1991, Rao is nearly 75 years old and in indifferent health. He almost certainly hopes he will be remembered for his most important contribution, the liberalisation of India's economy.

"For the economy to continue and grow and attract foreign investment, Rao must avoid provoking the west in particular the United States – which would seek to restrict international aid and investment to India in the event of a test. These hard realities, coupled with his natural caution, probably will constrain him from approving a test," the secret US document concluded.

In another classified US document, which was prepared to respond to the questions from US lawmakers on this issues, Narasimha Rao is described as someone who does not take rash actions. "PM Rao is by temperament and character a cautious and practical man not given to rash action. There is no direct evidence he has made a decision to test," said the document.

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News Network
May 13,2020

New Delhi, May 13: Vice President M. Venkaiah Naidu on Wednesday said that Prime Minister Narendra Modi's announcement of Rs 20 lakh crore stimulus package "will go a long way in overcoming challenges" posed by the COVID-19 pandemic.

"Welcome the Rs. 20 lakh crore stimulus package announced by the Prime Minister, Shri Narendra Bhai Modi Ji to revive economy, boost efficiency of various sectors through reforms & make India self reliant and resilient. #AtmaNirbharBharatAbhiyan," the Vice President tweeted.

Calling the reforms as the "need of the hour", he further said: "Bold reforms are the need of the hour to realize the dream of #AtmanirbharBharat."

Expressing confidence in the five-pillar approach, he said that it would help promote local industries "while making India face global competition effectively".

"I am confident that a focused approach on the five pillars- Economy, Infrastructure, Technology driven System, Vibrant Demography & Demand--will promote local industries led growth while making India face global competition effectively. #AtmaNirbharBharatAbhiyan," he said.

"I am certain this timely economic package will go long way in overcoming challenges posed by the unprecedented COVID-19 pandemic. #AtmaNirbharBharatAbhiyan #IndiaFightsCorona," he wrote on the micro-blogging site.

The Prime Minister had on Tuesday announced Rs 20 lakh crore special economic package for the country to become 'self-reliant' and deal with COVID-19.

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News Network
February 11,2020

New Delhi, Feb 11: The government has decided to rename National Institute of Financial Management (NIFM), Faridabad, as Arun Jaitley National Institute of Financial Management, an official statement said on Tuesday.

Set up in 1993 as a registered society under the Department of Expenditure, NIFM trains officers of Finance and Accounts Services recruited by the Union Public Service Commission (UPSC) as also officers of Indian Cost Accounts Service. The Union Finance Minister is the President of the NIFM Society.

"Aligning the vision and aspiration of the Institute for the future with the vision and contribution of late Arun Jaitley, the Government has decided to rename National Institute of Financial Management (NIFM) as the Arun Jaitley National Institute of Financial Management(AJNIFM)," the statement said.

NIFM has become a premier resource centre to meet the training needs of the central government for senior and middle level of management in the fields of public policy, financial management, public procurement and other governance issues for promoting highest standards of professional competence and practice.

Padma Vibhushan awardee Jaitley was the Union Minister for Finance and Corporate Affairs during May 26, 2014 to May 30, 2019.

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Agencies
January 9,2020

The World Bank says that a lack of credit and drop in private consumption have led to a gloomy growth outlook for India with a steep cut in growth rate for the current fiscal year and only a modest gain projected for the next year.

India's growth rate is forecast to be only 5 per cent for the current fiscal year, weighed down by a growth of only 4.5 per cent in the July-September quarter, according to the 2020 Global Economic Prospects report released on Wednesday.

"In India, [economic] activity was constrained by insufficient credit availability, as well as by subdued private consumption," the Bank said.

The growth rate is forecast by the Bank to pick up to 5.8 per cent in the next fiscal year and to 6.1 per cent in 2021-22.

India's growth rate was 6.8 per cent in 2018-19.

The 5 per cent growth rate projection for the current financial year is a sharp cut of 2.5 per cent from the 7.5 per cent forecast made by the Bank in January last year, toppling it from the rank of the world's fastest growing economy.

India's performance follows a global trend of lowered growth weighed down by developed economies.

The report estimated world economic growth rate to be only 2.4 per cent last year and forecast it to edge up 0.1 per cent to 2.5 per cent in the current year.

Even with the lower growth rate of 5 per cent in the current fiscal year and 5.8 per cent forecast for the next, India holds the second rank among large economies, behind only China with an estimated growth rate of 6.1 per cent for 2019 and 5.9 per cent this year.

The report blamed "weak confidence, liquidity issues in the financial sector" and "weakness in credit from non-bank financial companies" for India's slowdown.

The Bank predicated India's recovery to 5.8 per cent in the coming financial year for India but "on the monetary policy stance remaining accommodative" and the assumption that "the stimulative fiscal and structural measures already taken will begin to pay off."

It also warned that sharper-than-expected slowdown in major external markets such as United States and Europe, would affect South Asia through trade, financial, and confidence channels, especially for countries with strong trade links to these economies."

The Bank said that the growth of advanced economies was 1.6 per cent last year and "is anticipated to slip to 1.4 per cent in 2020 in part due to continued softness in manufacturing."

In contrast the growth of emerging market and developing countries is expected to accelerate from 3.5 per cent last year to 4.1 per cent this year, the report said.

In South Asia, Bangladesh is estimated to have the highest growth rate of 7.2 per cent in the current fiscal year, although down from 8.1 per cent last fiscal year.

But its higher regional growth rates are coming off a lower base with a per capital gross domestic product of $1,698 compared to $2,010 for India.

Bangladesh is expected to grow by 7.3 per cent in the next financial year.

Pakistan's growth rate is estimated at only 2.4 per cent in the current fiscal year and is projected to rise to 3 per cent in the next, according to the Bank.

The Bank blamed monetary tightening in Pakistan for a sharp deceleration in fixed investment and a considerable softening in private consumption for the fall in growth rate from 3.3 per cent in the 2018-19 fiscal year.

Sri Lanka's growth rate was estimated to be 2.7 per cent last year and forecast to grow to 3.3 per cent this year.

Nepal grew by an estimated 6.4 per cent in the current fiscal year and will rise to 6.5 per cent in the next.

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