Controversial Ayodhya verdict, protests cap eventful year

News Network
December 31, 2019

Dec 31: A high-octane Lok Sabha election campaign, a historic Supreme Court judgment settling the decades-old Ayodhya dispute and violent protests over the amended citizenship law – it was an eventful year for Uttar Pradesh.

Rape accusations against saffron-robed former Union minister Swami Chinmayanand and a life sentence for expelled BJP MLA Kuldeep Singh Sengar for the 2017 rape of a minor in Unnao brought the law and order situation in the state into sharp focus.

The ruling Bharatiya Janata Party swept Uttar Pradesh again in the Lok Sabha elections, pushing aside the Congress and the SP-BSP-RLD 'mahagathbandhan'.

Despite an aggressive campaign, followed with interest all over the country, UP’s opposition alliance could not make much of a dent. It won just 15 of the 80 parliamentary seats – Mayawati’s Bahujan Samaj Party got 10 and the Samajwadi Party five.

The BJP won 62 seats, down from 71 earlier, but increased its vote share from 42.63 per cent in 2014 to 49.6 per cent. The SP-BSP vote share dropped from 42.2 per cent in the last Lok Sabha polls to 37.3 per cent.

The Congress managed to win just one seat – its Raebareli bastion -- despite Priyanka Gandhi Vadra's appointment as the party general secretary in charge of eastern UP and her extensive campaign across the state. The biggest jolt came for the then Congress president Rahul Gandhi who lost his own Amethi stronghold.

In November, a five-judge Supreme Court bench pronounced verdict on the Ram Janmabhoomi-Babri Masjid land dispute in Ayodhya, allowing the construction of a temple at the contested site by a trust.

The Constitution bench headed by Chief Justice Ranjan Gogoi also directed the Centre to allot an alternative five-acre plot to the Sunni Waqf Board for building a new mosque at a "prominent" place in the holy town.

Later, the Supreme Court closed the doors on any further review of its 5-0 verdict, one of the most anticipated judgements in India's history.

In a case that triggered outrage and Supreme Court intervention, a 23-year-old law student accused former BJP MP Swami Chinmayanand of sexual abuse and rape.

A month later, after multiple twists and turns, Chinmayanand (72), who ran the trust that owned the college where the woman studied, was arrested. He was accused of misusing his authority for sexual intercourse, a charge short of rape.

The student was also arrested, on charges of extortion after the politician alleged that she was part of a conspiracy to extort money from him.

Apart from the Sengar episode, Unnao made news when a woman was set ablaze by five men, two of them accused earlier of raping her. She died later in Delhi.

The opposition kept targeting the Yogi Adityanath government over “rising” crime in the state, a charge trashed by it. The BJP government claimed there has not been a single communal riot during its tenure.

Another episode that provoked outrage was the gunning down of 10 Gond tribals in Sonbhadra’s Umbha village. They were allegedly attacked by a village head and his henchmen in an attempt to grab land. About 30 others were injured.

As the year drew to a close, violent protests broke out over the Citizenship Amendment Act, first at the Aligarh University Campus and a few days later in several districts after Friday prayers.

Police countered brickbats and arson with tear gas, rubber bullets and, in later admissions, by firing in “self-defence”.

About 20 people were killed during the protests, many of them due to firearm injuries. Human rights activists, however, allege a brutal police crackdown that targeted even those not involved in the protests.

Congress leader Priyanka Gandhi visited the state and the party has called for a judicial probe.

Midday meals served at schools also attracted controversy.

A video showed students at a school in Mirzapur being served just rotis and salt for their midday meal. Police initially booked the journalist who broke the story. Weeks later, a the staff at a primary school in Sonbhadra district was accused of diluting a litre of milk with a bucket of water to serve 80 children.

The bad press drowned out some feel-good stories from the state – like the staging of a Kumbh Mela that went off without a hitch and a groundbreaking ceremony for new projects, which the government claimed reflected a planned investment of Rs 65,000 crore.

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News Network
March 21,2020

Mar 21: India’s economy, already in the grip of a slowdown, is in for more pain after Prime Minister Narendra Modi appealed to citizens to stay at and work from home to curb the coronavirus outbreak.

The services sector, which accounts for about 55% of India’s gross domestic product, is poised to be the worst hit after Modi, in a late evening address on Thursday, urged citizens to go on a self-imposed curfew for a day and private companies to allow employees to work from home for longer. In the country’s vast informal sector, social-distancing measures could mean a dent to productivity and consumption because of job or pay losses.

“The impact of a partial lock-down or social distancing will be significant,” said Rahul Bajoria, a senior economist at Barclays Plc in Mumbai. “If there’s a widespread community outbreak, GDP could fall as low as 3.5% in the year starting April 1.”

Shrinking output may limit growth in an economy that’s already set to expand at an 11-year low of 5% in the current year to March 31. Before the virus outbreak, India had forecast growth to recover to 6%-6.5% in the next fiscal year. S&P Global Ratings and Fitch Ratings have already slashed their growth forecast by 50 basis points.

“The current social-distancing measures will severely impact airlines, hotels, malls, multiplexes, restaurants and retailers,” according to analysts at Crisil Ltd., the local unit of S&P Global. “Lower footfalls and occupancies, decline in business volume and sub-optimal operating efficiencies will impact cash flows of companies in these sectors,” wrote the analysts led by Chief Economist Dharmakirti Joshi.

The government will try to announce a relief package for virus-affected sectors as early as possible, Finance Minister Nirmala Sitharaman said Friday.

In a televised address, Modi advised all citizens to stay at home for a day on March 22, as he sought to stem the spread of the coronavirus -- cases of which are relatively low in India at about 200, compared with more than 200,000 infected people globally. His government also barred incoming flights for a week from that day, joining a growing list of countries effectively sealing their borders.

What Bloomberg’s Economists Say

We had only earlier this week lowered our GDP outlook to consider the direct impact of the local outbreak as confirmed virus cases exceeded 100 as of March 15 and the federal and state governments announced social distancing measures that have already started to crimp economic activity. We are now revising down our GDP estimate for 4Q fiscal 2020 to 3.3%, from our 3.5%.

-- Abhishek Gupta, India economist

For more, click here

“Consumption being the biggest component of GDP, a lock-down is bound to have a big impact on the economy,” said Devendra Kumar Pant, chief economist at India Ratings and Research, the local unit of Fitch. “Modeling uncertainty in any system will be very difficult, but one can say the slowdown could deepen or prolong further.”

Work From Home

While companies, including billionaire Mukesh Ambani-controlled Reliance Industries Ltd., are asking employees to work from home, the option isn’t feasible in India’s vast informal sector.

“The option to work remotely simply won’t exist for most,” said Shilan Shah, an economist with Capital Economics Pte. in Singapore.

As many households don’t have savings buffers, the government would probably have to back this up with large-scale cash handouts that reach the poorest, he said.

Work from home is posing implementation challenges for the manufacturing sector where workers are required to be physically present at the production sites. The services sector, such as banking and information technology, also needs employees to be present in offices as confidential data is used, according to industry group Federation of Indian Chambers of Commerce and Industry.

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News Network
February 3,2020

Bengaluru, Feb 3: India's manufacturing activity expanded at its quickest pace in nearly eight years in January with robust growth in new orders and output, a private survey showed on Monday, suggesting the economy may be getting back on firmer footing.

In response to the jump in sales, factories hired new workers at the fastest rate in more than seven years.

If sustained, the improvement in business conditions could point to a gradual economic recovery in coming months, as forecast by analysts in a Reuters poll last month, after growth slowed to a more than six-year low in the July-September quarter.

The Nikkei Manufacturing Purchasing Managers' Index , compiled by IHS Markit, jumped to 55.3 last month from 52.7 in December. It was the highest reading since February 2012 and above the 50-mark separating growth from contraction for the 30th straight month.

"The PMI results show that a notable rebound in demand boosted growth of sales, input buying, production and employment as firms focused on rebuilding their inventories and expanding their capacities in anticipation of further increases in new business," Pollyanna De Lima, principal economist at IHS Markit, said in a news release.

A new orders sub-index that tracks overall demand hit its highest level since December 2014 and output grew at its fastest pace in over seven and a half years, pushing manufacturers to hire at the strongest rate since August 2012.

Meanwhile, both input costs and output prices rose at a slower pace, indicating overall inflation may have eased after hitting a more than five year high of 7.35% in December, although probably not below the Reserve Bank of India's medium-term target of 4%.

That might keep the central bank, which cut its key interest rate by a cumulative 135 basis points last year, on the sidelines over the coming months.

"To complete the good news, there was also an uptick in business confidence as survey participants expect buoyant demand, new client wins, advertising and product diversification to boost output in the year ahead," added De Lima.

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News Network
May 7,2020

May 7: Accusing the BJP government in Karnataka of "medieval barbarism" and treating migrants as worse than "bonded labourers", CPI(M) general secretary Sitaram Yechury on Wednesday hit out at the state's decision to stop workers from returning to their homes in different parts of the country citing requirements of the construction sector.

The Karnataka government has withdrawn its request to the railways to run special trains to ferry migrant labourers to their home states, hours after builders met Chief Minister B S Yediyurappa to apprise him of the problems the construction sector will face in case they left.

"This is worse than treating them as bonded labour. Does the Indian constitution exist? Are there any laws in the country? This BJP state government is throwing us back to medieval barbarism. This will be stoutly resisted,” Yechury said in a tweet.

The railways is running Shramik Special trains to ferry to their home towns migrants who were stranded at their places of work during the lockdown.

So far, it has run more than 115 such trains.

The Principal Secretary in the Revenue Department N Manjunatha Prasad, who is the nodal officer for migrants, had requested the South Western Railways on Tuesday to run two train services a day for five days except Wednesday, while the state government wanted services thrice a day to Danapur in Bihar. However, later, Prasad wrote another letter within a few hours that the special trains were not required. Several migrants in the city were desperate to return home as they were out of jobs and money.

Yechury also lashed out at the central government over reports that it owed states and industry Rs 3 trillion and accused the centre of shifting the burden of fighting the pandemic to the state governments.

“While shifting the entire burden of fighting the pandemic on to the State governments, Modi government is not even paying their legitimate dues. After November 2019, Centre has not paid the GST compensation dues for the rest of the financial year, i.e., March 2020.

“Modi government has the right to loot while crores of people & States are left with nothing but the right to starve?,” he tweeted.

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