No reversal of economic reforms, will reverse rupee slide: Prime Minister Manmohan Singh

August 30, 2013

Prime_Minister

New Delhi, Aug 30: Prime Minister Manmohan Singh on Friday ruled out reversal of reforms or resorting to capital controls to rescue the sliding rupee, which he said fell on account of domestic as well as global factors.

Making a statement on the state of the economy in Parliament amid concerns over rapid depreciation of rupee, Singh said the country has to be ready for short-term shocks but the government will ensure that the fundamentals of economy remain strong.

"We are faced with challenges but we have the capacity to deal with them,", he said, while seeking support of all political parties in this situation.

Breaking his silence on the decline of rupee, he said there "may be short term shocks to our economy and we need to face them. That is the reality of the globalised economy, whose benefits we have reaped".

There is no question of reversing the policies just because there is some turbulence in capital and currency markets, he said, adding the "sudden decline in exchange rate is certainly a shock, but we will address this through other measures, not through capital controls or by reversing reforms".

Not satisfied with the Prime Minister's statement, the Opposition parties including BJP, AIADMK, Left and SAD later staged a walk-out in the Lok Sabha.

Pitching for more reforms, the Prime Minister said easy reforms of the past have been done but the difficult ones remain.

"We have the more difficult reforms to do such as reduction of subsidies, insurance and pension sector reforms, eliminating bureaucratic red tape and implementing Goods and Services Tax," he said.

"These are not low hanging fruit and need political consensus... We need to forge consensus on such vital issues. I urge political parties to work towards this end and to join in the government's efforts to put the economy back on the path of stable and sustainable growth," Singh said.

The Prime Minister attributed the sudden and sharp depreciation in rupee to various domestic and global factors like high current account deficit (CAD), US Federal Reserve plans to taper quantitative easing measures and tensions in Syria.

"... the rupee has been especially hit because of our large CAD and some other domestic factors. We intend to act to reduce the CAD and improve the economy," Singh said.

The deterioration in CAD, he said, has been mainly on account of huge import of gold, higher cost of crude oil imports and recently of coal.

Moreover, Singh said that exports have been further hit by collapse in iron ore shipments making "our CAD unsustainably large".

"Clearly we need to reduce our appetite for gold, economisz the use of petroleum products and take steps to increase our exports," the Prime Minister said, adding the government will take all possible steps to bring down CAD below USD 70 billion this fiscal.

The Prime Minister said the medium term objective of the government will be to reduce CAD to 2.5 per cent of GDP and the government will make all efforts to maintain "a macro economic framework friendly to foreign capital inflows to enable orderly financing of the current account deficit".

"... it is important to recognise that the fundamentals of the Indian economy continue to be strong," Singh said.

Emphasising that the country's overall public-debt to GDP ratio has been declining, he said India's external debt is only 21.2 per cent of GDP while short-term stands at 5.2 per cent.

"Our forex reserves stand at USD 278 billion, and are more than sufficient to meet India's external financing requirements," he said.

The rupee depreciation, he said, can be good for economy as it will help to increase the export competitiveness and discourage imports.

The foreign exchange markets, he regretted, have a notorious history of overshooting.

"Unfortunately, this is what is happening not only in relation to the rupee but also other currencies," Singh said, stressing that the value of a currency is determined by fundamental of the economy and the government is taking steps to improve them.

Referring to economic prospects, Singh said that even though growth has slowed down in recent quarters, it is expected to pick up.

"I expect growth in the first quarter of 2013-14 to be relatively flat, but as the effects of the good monsoon kick in, I expect it to pick up," he said.

"All in all, the macro-stabilisation process which should support the value of the rupee is under way. I expect that as the fruits of our efforts materialise, currency markets will recover," he said.

Regarding fiscal deficit, the Prime Minister said the government will do whatever is necessary to contain the fiscal deficit to be 4.8 per cent this year.

"The most growth friendly way to contain the deficit is to spend carefully, especially on subsidies that do not reach the poor, and we will take effective steps to that end," he said.

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News Network
January 18,2020

Kanpur, Jan 18: Kanpur has witnessed an Unnao-like incident as the out on bail accused in rape case attack the family members of the victim. The mother of the victim, who later died in the hospital, was brutally attacked by the accused. The accused reportedly attacked the victim's mother and her aunt on January 8.

The actual rape case goes back to 2018 when a group of men abducted a minor girl from her own society. The accused had reportedly raped her and also beaten up her mother.

A video of mother being beaten up reportedly went viral soon after.

The mother of the victim had reportedly filed a complaint against one of the accused for abducting and molesting her daughter two years ago at a tannery falling under jurisdiction of Chakeri police station. The main accused along with five others was booked under section 354 of the IPC (sexual assault of children) and sent to jail. Around two weeks ago, the accused got bail and on January 9 they attacked the deceased and her sister.

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News Network
May 21,2020

Bengaluru, May 21: The COVID-19-induced lockdown saw a spurt in crybercrimes in India with Kerala recording the highest number during the period, according to an analysis of IT security solutions provider K7 Computing.

The report analyses various cyberattacks within India during the pandemic and reveals that threat actors targeted the States with COVID-19-themed attacks aimed at exploiting user trust.

The sudden surge in the frequency of attacks witnessed from February 2020 to mid-April 2020 indicates that scamsters across the world were exploiting the widespread panic around coronavirus at both the individual and corporate level, the company said in a statement.

These attacks aimed to compromise computers and mobile devices to gain access to users confidential data, banking details and cryptocurrency accounts.

The key threats seen during this period ranged from phishing attacks to rogue apps disguised as COVID-19 information apps that targeted users sensitive data.

Phishing attacks were noticed more in Tier-II and Tier-III cities while the metros fared better.

Smaller cities saw over 250 attacks being blocked per 10,000 users.

Users from Ghaziabad and Lucknow seem to have faced almost six and four times the number of attacks, respectively, as Bengaluru users.

In Kerala, regions like Kottayam, Kannur, Kollam, and Kochi saw the highest hits with 462, 374, 236, and 147 attacks respectively, while the state as a whole saw around 2,000 attacks during the period, the highest thus far in the country.

This was followed by Punjab with 207 attacks and Tamil Nadu at 184 attacks, the statement said.

A majority of the recorded attacks were phishing attacks with sophisticated campaigns that could easily snare even the most educated users, it said.

These attacks were aimed at heightening users fears and creating a sense of urgency to take action.

The report noted phishing attacks where scamsters posed as representatives of the United States Department of the Treasury, the World Health Organisation, and the Centres for Disease Control and Prevention.

Users were encouraged to visit links that would automatically download malware on the host computer such as the Agent Tesla keylogger or Lokibot information-stealing malware, infamous banking Trojans such as Trickbot or Zeus Sphinx, and even disastrous ransomware.

Other attacks included infected COVID-19 Android apps like CoronaSafetyMask that scam users with promises of masks for an upfront payment; the spyware app Project Spy; and seemingly genuine apps that are infected with dangerous malware like banking Trojans such as Ginp, Anubis and Cerberus, it was stated.

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Agencies
January 22,2020

Kochi, Jan 22: The Left front government in Kerala on Monday decided to inform the Centre it would not cooperate with the updation of the NPR, saying there were fears among the public about the process and it has the "Constitutional responsibility" to alleviate them and ensure law and order.

A special cabinet meeting, chaired by Chief Minister Pinarayi Vijayan here, decided to inform the Registrar General and Census Commissioner under the Union Home Ministry that it was unable to cooperate with anything with regard to the updation of the NPR.

"The decision was taken as it was the Constitutional responsibility of the government to alleviate the fears of general public and ensure law and order situation in the state," a Chief Minister's Office release said.

However, the state would fully cooperate with the census procedures, it said.

The LDF government, which has been on a warpath against the Centre over the Citizenship Amendment Act, has last month stayed all activities related to updation of NPR, considering 'apprehensions' of public that it would lead to NRC in the wake of the controversial CAA.

"As the NPR is a process that leads to the National Register of Citizens (NRC), there is a sense of fear among the people that its implementation could lead to widespread insecurity", the CMO release said on Monday.

The experience of the state which had already compiled the NRC was an example for this, it added, in apparent reference to Assam.

Kerala had already stopped all procedures regarding the NPR updation, the release said adding there was also a report of the state police that the if the government went ahead with the procedures, it would adversely impact the law and order situation.

The district collectors have also informed the government that the Census procedures would be affected if the updation of the NPR was done along with it, the CMO release said.

The CPI(M)-led LDF government had recently convened a meeting of political parties and socio-religious organisations here on December 29 in the wake of the concerns among people in various stratas of the society, it said.

A special assembly session was convened and a resolution was passed requesting the Centre not to implement the CAA and the government had also approached the apex court against the law, it added.

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