South Asian tensions seen dominating Indian BRICS summit

October 14, 2016

New Delhi, Oct 14: India will take its drive to isolate Pakistan and rally the international community against cross-border militancy to a summit of emerging market powers this weekend, when it hosts BRICS nations in Goa.

BRICSFor Prime Minister Narendra Modi , the gathering of leaders from Brazil, Russia, India, China and South Africa offers an opportunity to highlight the threat he sees to Indian security from recent frontier clashes with Pakistan.

But across the summit table at a resort hotel, Chinese President Xi Jinping is unlikely to have much interest in casting Beijing's alliance with Pakistan into doubt.

The final summit declaration is expected to repeat earlier condemnations of "terrorism in all its forms", say diplomats and analysts, but avoid levelling blame over tensions between the nuclear-armed South Asian rivals.

Such discussions will make security a dominant issue at the eighth annual summit of the group, even as leaders also address core themes such as the global economy, financial cooperation and mutual trade.

"We will be looking at the global economic and political situation, and obviously terrorism is a very important part of that," Amar Sinha, the Indian foreign ministry official responsible for the BRICS file, told a pre-summit briefing.

NOT JUST A "JOLLY PARTNER"

Where Modi and Xi may see eye to eye, at least privately, is in a shared desire for Islamabad to restrain Islamist militants who, in Beijing's view, pose a threat to China's plans to build a $46 billion trade corridor that runs through Pakistan to the Arabian Sea.

"Contrary to the public messaging in Islamabad, China is not the perpetual jolly partner when it comes to its relations with Pakistan," said Michael Kugelman, a senior program associate at the Wilson Center in Washington who focuses on South Asia.

"With China's investments and economic assets growing in Pakistan, it's only natural that it would worry. All militants, whether 'good' or 'bad' as characterised by Pakistan, threaten stability and by extension China's economic interests."

In addition to launching what it described as cross-border "surgical strikes" against suspected militants in Pakistan, in response to a September 18 attack on an army base that killed 19 Indian soldiers, New Delhi has mounted a diplomatic offensive to isolate Islamabad.

Pakistan has denied any part in the attack on the Uri army base, near the de facto border that runs through the disputed territory of Kashmir. It also denies any "surgical strikes" took place, saying there was only border firing that is relatively common along the frontier.

Islamabad says India has exploited the incident to divert attention from its own security crackdown on protests sparked by the killing of a popular separatist militant leader.

EXPRESSIONS OF SUPPORT

After the Uri attack, India quickly won expressions of support from the West and from Russia+ , whose President Vladimir Putin will also hold a bilateral summit with Modi in Goa.

China, for its part, has shown public restraint.

Zhao Gancheng, director of South Asia studies at the Shanghai Institute for International Studies, said that China and Pakistan were paying close attention to security threats to the trade corridor.

"If Pakistan's security situation does not improve, it will obstruct some of these projects - especially infrastructure ones," said Zhao. "In this sense, cooperation on counter-terrorism is very close."

India has already engineered the collapse of a South Asian regional summit to have been hosted by Pakistan, and the Goa gathering will also feature an outreach session to countries from the Bay of Bengal region that could emerge as an alternative focus of regional cooperation.

WORKING GROUPS

BRICS leaders will support plans agreed by their national security advisers to create three working groups to cooperate on cyber security, counter-terrorism and energy security, said Sinha, the Indian foreign ministry official.

But diplomats and analysts say that India's long-held ambition of joining the Nuclear Suppliers Group, a club of nuclear-trading nations, is unlikely to progress at Goa with China yet to soften its blocking stance.

And, despite concerns about militancy within Pakistan, China has rebuffed India's calls for the United Nations to designate Maulana Masood Azhar, leader of the Jaish-e-Mohammed group that India blames for recent cross-border attacks, as a terrorist.

China recently extended a so-called "hold" on the designation by a further three months.

That reflects an evolving rivalry between the world's two most populous nations in which, under Modi, India is seeking to close huge economic and military gaps and is shifting away from traditional non-alignment and seeking a closer partnership with the United States.

At the same time, China is expanding its economic and strategic reach into the Indian Ocean region, with Xi visiting Bangladesh on Friday en route to Goa where he is expected to sign loans worth $24 billion.

"Overall, it will be an awkward summit," said Shashank Joshi, a senior research fellow at the Royal United Services Institute in London.

He added that, for India, "diplomatic isolation of Pakistan will be the most important objective."

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Agencies
August 6,2020

Mumbai, Aug 6: Former Reserve Bank of India governor Raghuram Rajan said on Thursday that overly focusing on what sovereign rating agencies think can take one's eyes off what needs to be done for the economy.

"It is also important to convince both domestic and international investors that after the crisis associated with the pandemic is over, we will return to fiscal responsibility over the medium term, and the government should do more to convince them of that," Rajan told the Global Markets Forum.

India was placed under one of the strictest lockdowns in the world in late March for more than two months to stem the spread of the coronavirus, but cases have continued to rise steadily since the government eased restrictions in June, stymieing hopes of an economic recovery.

The government has announced several initiatives to help the poor and small- and medium-size businesses, but actual cash outgo from the government's measures has been estimated at just about 1% of GDP.

Several attribute the fiscal prudence to fear of a downgrade after Moody's cut India's rating and outlook in early June followed closely by a change in outlook from Fitch.

The central bank on its part too has reduced the key lending rate by 115 basis points on top of the 135 bps last year and is widely expected to cut rates by another 25 bps later on Thursday.

"The RBI and government have certainly been cooperating, but it seems like it is elsewhere, the ball is in the government's court to do more," Rajan said.

He said the RBI needs to focus on whether credit is reaching the stressed areas of the economy and also if the viable firms were able to access credit and not the unviable ones.

"And I think that's where it has to focus its attentions, because resources, as you well know, are limited in India today."

Recently analysts, however, have cited the growing possibility the RBI may prefer to pause and cut rates only at its October meeting.

Government officials too have suggested the possibility of any more fiscal stimulus being announced, would only come in the second half of the fiscal year, once a recovery has taken root and coronavirus cases have peaked.

"What India should focus on at this point is protecting its economic capabilities, so that when it has dealt with the virus it can go resume activity in a reasonable way. That should be the focus," Rajan said.

"And if it does that, there is no reason why the rating agencies will not see that as an appropriate policy".

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News Network
April 4,2020

Kochi, Apr 4: France on Saturday evacuated 112

French citizens stranded in Kerala and Tamil Nadu in a special Air India flight, official sources said here.

The Embassy of France had made a request to the Kerala government to facilitate the journey of the French citizens stranded due to the lockdown announced by the central government to prevent the spread of novel coronavirus.

The French citizens, mostly tourists and those who came for Ayurvedic treatment, were brought here by the state tourism department 24 days ahead of their trip.

They underwent a medical examination before boarding the flight for Paris from Cochin International Airport at 08.13 am on Saturday, officials said.

The Air India flight was chartered by the French government for evacuating its citizens in various cities in India including Kochi, Bengaluru and Mumbai.

On Friday, Gulf nation Oman had evacuated its 46 citizens stranded in Kochi in an Oman Air flight.

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News Network
March 6,2020

Mumbai, Mar 6: Harried Yes Bank depositors rushed to ATMs to withdraw cash but faced multitude of problems including closed down machines and long queues, after the RBI placed the bank under a moratorium, capping maximum withdrawals at Rs 50,000 per account for a month.

Aggravating the problems of depositors were difficulties accessing the internet banking channel, which ensured that they can't transfer the funds online as well. At an ATM in south Mumbai's Horniman Circle, with the RBI headquarters overlooking it, the shutters were pulled down.

The guard on duty said the machine was non-operational before he reported to work late in the evening and he was ordered to shut it after 2200 hrs. In the residential area of suburban Chembur, one ATM was dispensing cash but had a long queue of anxious depositors.

One man said it was still possible to withdraw up to Rs 50,000 in multiple transactions from the machine.

However, another machine nearby had run dry within minutes of the RBI announcement, a woman said.

The regulatory actions, undertaken by the RBI and the government, came hours after finance ministry sources confirmed that SBI was directed to bail out the troubled lender.

For the next month, Yes Bank will be led by the RBI-appointed administrator Prashant Kumar, an ex-chief financial officer of SBI.

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