"Support India's Objectives, But Concerned About Kashmir Situation": US

Agencies
October 22, 2019

Washington, Oct 22: The US on Tuesday said while it supports India's development agenda behind scrapping special status to Jammu and Kashmir under Article 370 of the Constitution, it was concerned over the current situation in the Valley.

It said it was closely monitoring the situation in Jammu and Kashmir following India's decision to scrap special status and divide the state into two Union Territories on August 5.

The Indian government has argued that its decision on Article 370 was driven by a desire to increase economic development, reduce corruption and uniformly apply all national laws in Jammu and Kashmir, particularly in regard to women and minorities, Acting Assistant Secretary of State for South and Central Asia Alice G Wells told Subcommittee on Asia, the Pacific, and Nonproliferation of the US House Foreign Affairs Committee.

"While we support these objectives, the US State Department remains concerned about the situation in the Kashmir Valley, where daily life for the nearly eight million residents has been severely impacted since August 5," Ms Wells said in a statement submitted to the Congressional subcommittee a day before the hearing on "Human Rights in South Asia: Views from the State Department and the Region".

The US State Department, she said, has closely monitored the situation in Jammu and Kashmir following India's decision on August 5.

"While conditions in Jammu and Ladakh have improved, the Valley has not returned to normal," Ms Wells said, adding the State Department has raised concerns with the Indian government regarding detentions of residents and political leaders, including three former chief ministers of Jammu and Kashmir.

"We have urged Indian authorities to respect human rights and restore full access to services, including internet and mobile networks," she said.

Postpaid mobile service has been restored in the Valley, but internet access remains intermittent, Ms Wells said.

She said both foreign and local journalists have extensively covered developments in Jammu and Kashmir, but many have faced challenges in access and reporting due to security restrictions.

"While exact figures are difficult to ascertain, we understand several thousand people have been detained over the past two months, although many have subsequently been released," the top US diplomat said.

According to government sources, hundreds remain in detention - many without charges - under the Public Safety Act, which allows for administrative detention of up to two years, Ms Wells said.

Welcoming actions by India to improve the situation and address local grievances, she said the Home Ministry recently said statehood will eventually be restored to Jammu and Kashmir, reaffirming what Prime Minister Narendra Modi announced in his Independence Day speech on August 15.

The US, she said, also encourages the Indian government to follow through on its commitment to hold assembly elections in the state at the earliest opportunity. Some local political leaders were released earlier this month, a trend Ms Wells said she hopes will continue.

Government offices, primary schools, and colleges are open, although student attendance remains low, she said.

The Indian Supreme Court, Ms Wells said, is planning to hear petitions related to Kashmir on November 14 and the Jammu and Kashmir High Court is reviewing cases.

"While these steps are positive, they are incremental, and we continue to press India to restore everyday services, including SMS and internet communications, as swiftly as possible," she said.

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News Network
July 14,2020

Brasilia, Jul 14: Brazil has reported new 20,286 coronavirus cases in last 24 hours taking the country's total to 1.8 million, Sputnik reported citing the health ministry.

The country's death toll has increased by 733 in the same period of time. The death toll from the infection has touched 72,833.

Over 1.1 million people have recovered from COVID-19 in Brazil since the start of the epidemic in the country, according to the health ministry.

Brazil has the second-highest coronavirus death toll, it is surpassed only by the United States.

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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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News Network
April 26,2020

Apr 26: The Chinese city of Wuhan, where the global coronavirus pandemic began, now has no remaining cases in its hospitals, a health official told reporters on Sunday.

"The latest news is that by April 26, the number of new coronavirus patients in Wuhan was at zero, thanks to the joint efforts of Wuhan and medical staff from around the country," National Health Commission spokesman Mi Feng said at a briefing.

The city had reported 46,452 cases, 56% of the national total. It saw 3,869 fatalities, or 84% of China's total.

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