S&P: India risks losing investment grade rating

June 12, 2012

Standard_and_Poor

New Delhi, June 12: In an unprecedented broadside at the UPA-II government's style of functioning, global rating agency Standard and Poor's (S&P) on Monday pointed to the operational roles of Congress president Sonia Gandhi and “unelected” Manmohan Singh as Prime Minister for the current economic impasse and threatened to downgrade India's sovereign credit rating to ‘speculative' from the lowest notch of ‘investment' grade.

In its report, ‘Will India be the first BRIC fallen angel,' S&P said: “Slowing GDP growth and political roadblocks to economic policy-making could put India at the risk of losing its investment grade rating” and pointed out that the crux of the current political problem in going forward with economic liberalisation was the nature of leadership within the Central government and not “obstreperous” allies or an “unhelpful” Opposition.

Having scaled down India's rating outlook to ‘negative' from ‘stable' in April this year, the S&P report, authored by its credit analyst Joydeep Mukerji, highlighted that the Congress was divided on economic policies, and there was substantial opposition to any serious liberalisation. It pointed to the division of roles between a politically “powerful” Congress president and an “appointed” Prime Minister as having “weakened the framework for making policy, in our view.”

“Moreover, paramount political power rests with the leader of the Congress, Sonia Gandhi, who holds no Cabinet position, while the government is led by an unelected Prime Minister Manmohan Singh, who lacks a political base of his own,” it said.

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News Network
January 2,2020

Kolkata, Jan 2: In what could spark fresh tensions between West Bengal Chief Minister Mamata Banerjee and the BJP-led centre, the Union Ministry of Defence on Wednesday rejected her state's tableau proposal for the Republic Day parade on January 26.

"The tableau proposal of West Bengal government was examined by the expert committee in two rounds of meetings. The tableau proposal of the West Bengal government was not taken forward for further consideration by the committee after deliberations in the second meeting," the ministry said in its statement.

Twenty two proposals comprising 16 states and union territories and six ministries and departments have been shortlisted for the parade. The shortlist was compiled from as many as 56 tableau proposals - 32 from states and union territories and 24 from various ministries and departments - received by the central government.

"The expert committee examines the proposals on the basis of theme, concept, design and visual impact before making its recommendations. Due to time constraints arising out of the overall duration of the parade, only a limited number of tableaux can be shortlisted for participation in the parade," the statement read, adding that West Bengal was shortlisted for the 2019 Republic Day parade through a similar process.

"The rejection of the West Bengal tableau for the Republic Day parade is discriminatory. It has been done because West Bengal has been opposing the centre's CAA (Citizenship Amendment Act) and the NRC (National Register of Citizens) plans," Trinamool Congress MP Saugata Roy told news agency.

"West Bengal is known to be living state as far as culture, including arts, music and other things are concerned. So obviously, this is a discriminatory step taken by the central government against West Bengal," Mr Roy added.

The Trinamool Congress-led Bengal government is at loggerheads with the central government over several issues, and the expanding presence of the BJP in the eastern state ahead of the 2021 assembly elections has further intensified their rivalry.

Mamata Banerjee has repeatedly said that she will not allow Bengal to be a part of the proposed nationwide National Register of Citizens, an assertion that the BJP claims is proof of her minority appeasement strategy. Last month, a four-member delegation of Trinamool Congress politicians that visited BJP-ruled Uttar Pradesh to meet families of those killed in violent protests against the Citizenship Amendment Act were stopped by police personnel at the Lucknow airport.

The BJP leadership has now decided to launch a campaign blitzkrieg in West Bengal to counter what it claims is the Trinamool's "misinformation programmes" against the amended citizenship law and reach out to refugees. Protests across the country have currently put the party on the backfoot.

The Citizenship Amendment Act, for the first time, makes religion the test of citizenship in India. The government says it will help minorities from three Muslim-dominated countries get citizenship if they fled to India because of religious persecution before 2015. Critics say it is designed to discriminate against Muslims and violates the secular principals of the Constitution.

Brazilian President Jair Bolsonaro will be the chief guest at the Republic Day celebrations.

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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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Agencies
February 5,2020

New Delhi, Feb 5: Days after a gunman opened fire in Delhi's Shaheen Bagh, the epicentre of anti-CAA movement, YouTuber Gunja Kapoor was detained at the protest site on Wednesday after she was caught covertly filming the protests in a burqa.

Kapoor runs the channel ‘Right Narrative’ on YouTube and her pinned tweet on Twitter says she is followed on the microblogging site by PM Narendra Modi.

According to police, the protesters turned suspicious after Kapoor asked them "too many questions". She was caught by some of the women protesters after they identified her as the popular YouTuber. The incident led to a commotion at Shaheen Bagh, the epicentre of protests against the Citizenship Amendment Act (CAA), a senior police official said.

She was taken to Sarita Vihar police station where her identity was ascertained, police said.

The incident sparked outrage on social media. Many took to Twitter to question why Kapoor was at the protest in disguise. Others expressed concern about her motives at secretly filming the protests.

Meanwhile, praises flew in for the women of Shaheen Bagh who can be seen defending Kapoor from angry protesters after she was caught.

This is not the first time that a right wing social media activist has landed in trouble in Shaheen Bagh where residents and other women and children have been sitting in protest for nearly two months since the passing of the contentious Citizenship Amendment Act 2019 in December last year.

In January, Deepa Sharma had posted videos online about the "traumatic" experience she had when she was allegedly heckled and harassed by Shaheen Bagh protesters. While the woman's claim could never be verified, other pieces of rampant fake news aimed at delegitimising and villainising protesters has taken social media by storm.

From doctored videos of women protesters allegedly accepting they were paid Rs 500 to attend protests to alleged fights over biriyani and anti-India sloganeering, trolls on social media seem to be working overtime to taint the ongoing protests.

The latter, however, show no signs of giving up. In fact, as Delhi nears elections on February 8, protesters have arranged for music performances by eminent artists, including pop celebrity Prateek Kuhad, till February 7.

Sit in protests take place 24x7 with women showing up in thousands to spend the night and sing songs of protest. And with polls around the corner, the protests have become an active part of political discourse with Aam Aadmi Party's Manish Sisodia expressing his support for the protesters at a recent press conference.

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