'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
March 27,2020

Mumbai, Mar 27: The Reserve Bank of India (RBI) on Friday lowered the key repo rate by 75 basis points to 4.4 per cent in a bid to arrest the economic slowdown amid coronavirus (COVID-19) outbreak.
The reverse repo rate now stands at 4 per cent, down by 90 basis points, said RBI Governor Shaktikanta Das adding this has been done to make it unattractive for banks to passively deposit funds with the central bank and instead lend it to the productive sectors.
The six-member monetary policy committee (MPC) met on March 24, 25 and 27 and voted 4:2 in favour of the repo rate reduction. The MPC also decided to continue with the accommodative stance as long as it is necessary to revive growth and mitigate the impact of COVID-19 on the economy while ensuring that inflation remains within the target.
"The need of the hour is to shield the economy from the pandemic," said Das. "We need to mitigate the impact of coronavirus, revive economic growth and provide financial stability."
Repo rate is the rate at which a country's central bank lends money to commercial banks, and the reverse repo rate is the rate at which it borrows from them.
The RBI Governor further said that the economic growth and inflation projection will be highly contingent depending on the duration, spread and intensity of the pandemic.
"Global economic activity has come to a near standstill as COVID-19 related lockdowns and social distancing are imposed across a widening swathe of affected countries. Expectations of a shallow recovery in 2020 from 2019's decade low in global growth have been dashed," said Das.
"The outlook is now heavily contingent upon the intensity, spread and duration of the pandemic. There is a rising probability that large parts of the global economy will slip into recession," he said.
However, the RBI has injected liquidity of Rs 2.8 lakh crore via various instruments equal to 1.4 per cent of GDP. "Along with today's measures, liquidity measures equal to 3.2 per cent of GDP. The RBI will take continuous measures to ensure liquidity in the system."
The RBI governor has said that all banking institutions can offer a three-month moratorium on all loans for a period of three months. The RBI has also allowed banks to restructure the working capital cycle for companies without worrying that these will have to be classified as a non-performing asset (NPA).
The three-month moratorium will permit banks to avoid a large onset of NPAs during the 21-day lockdown and keep their books healthy.
Das said banks and other financial institutions should do all they can to keep credit flowing to economic agents facing financial stress on account of the isolation that the virus has imposed.
"Market participants should work with regulators like the RBI and the Securities and Exchange Board of India (SEBI) to ensure the orderly functioning of markets in their role of price discovery and financial intermediation," he said.

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News Network
January 18,2020

New Delhi, Jan 18: Asha Devi, the mother of the 2012 Delhi gang-rape victim, on Saturday slammed senior lawyer Indira Jaising for her suggestion that she should forgive her daughter's rapists.

"Who is Indira Jaising to give me such a suggestion? The whole country wants the convicts to be executed. Just because of people like her, justice is not done with rape victims," Asha Devi said here.

"Cannot believe how Indira Jaising even dared to suggest this. I met her many times over the years in Supreme Court, not even once has she asked for my well being and today she is speaking for the convicts. Such people earn their livelihoods by supporting rapists, hence rape incidents do not stop," she added.

Asha Devi further accused Jaising of using "the garb of human rights" to make a living.

'People like her keep earning money under the garb of human rights. I do not need her suggestions... Just because of people who think like her incidents like rape keep happening, she is a disgrace to women," she said.

Earlier yesterday, Indira Jaising, through a tweet, had urged Asha Devi to forgive the perpetrators and had used the example of Congress interim president Sonia Gandhi, who had forgiven Nalini, one of the convicts who was given the death penalty by the courts.

"While I fully identify with the pain of Asha Devi I urge her to follow the example of Sonia Gandhi who forgave Nalini and said she did not want the death penalty for her. We are with you but against the death penalty," Jaising's tweet read.

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News Network
January 1,2020

Jan 1: Two army personnel were killed in a gunfight with heavily-armed Pakistani infiltrators along the Line of Control (LoC) in Jammu and Kashmir's Rajouri district on Wednesday, officials said.

The infiltrators were intercepted in the Khari Thrayat forest when they were trying to sneak into India from Pakistan-occupied Kashmir (PoK), they said.

"Two army soldiers martyred during cordon and search operation in Nowshera sector. The operation is still in progress and further details are awaited," Jammu-based Indian Army Public Relations Officer (PRO) Lt Col Devender Anand said in a statement.

The search operation was launched following information about the movement of suspected terrorists, the officials said.

The infiltrators opened fire on the troops and during a fierce gunfight, the two soldiers were killed, they said.

The officials said a massive operation is on in the area.

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