Finance Minister Nirmala Sitharam made a exceptionally lucid and detailed public presentation – the first of three, the next two to follow in the coming weeks – of the government’s time-bound economic and administrative measures to counter India’s growth slowdown and turn things round. The Finance Ministry would clear all pending GST refunds within 30 days. Steps were announced to get the automotive industry up and running. Many of its problems had arisen from ambiguities and misunderstanding of items in the government’s regulatory framework. These had been removed following close consultations with the captains of industry. The tranche of promised reforms came under the following heads, Tax Relief: Surcharge on foreign and domestic portfolio investors to be abolished; Simplified KYC for FPIs which, since July, had withdrawn around $3.4 billion from the stock market; Separate cell to deal with startup tax issues; Government to release Rs 70,000 crore for the recapitalisation of PSU banks; banks to launch repo rate and external benchmark-linked loan products that will lead to reduced monthly installation payments; the capital infusion is expected to generate additional lending and liquidity in the financial system to the tune of Rs 5 lakh crore; to reduce harassment and bring greater efficiency, public sector banks will ensure mandated return of loan documents within 15 days of loan closure. Measures to increase lending, better transmission of rates, increased transparency; Improve fund flow, reduce stress in small businesses, improve, rationalise multiple definitions to smoothen decision making; Violation of CSR to be a civil, not a criminal offence, Review of Companies Act to remove the threat of prosecution;
The points made above, for reasons of space, are necessarily a broad summary of Finance Minister of Sithraman’s presentation at a media conference in New Delhi. A business newspaper’s front-page headline – ‘FM administers the first booster shock’, encapsulated stock market sentiment and sentiment across the broad spectrum of industry and commerce. It signalled intent to put things right with detailed exposure of what went wrong in the first place, the devil lying in the detail. The initial response in business circles has been one of optimism, even if cautiously expressed, since results on the ground over the next weeks, months and perhaps years will determine success or failure. The seeming end to the seeming spectacle of drift has been welcomed with visible relief.
India, UK platform must fit for purpose
The conversation between Prime Ministers Narendra Modi and Boris Johnson was complemented by meeting at the G7 meeting in France. Mr Johnson, his gaze on a post-Brexit world, was keen that India and Britain remain close partners. Mr Modi, ever the consummate politician, congratulated Mr Johnson on becoming UK Prime Minister, and for thrilling English victory in the third Test against Australia.
That said, it was important the Indo- British relationship is taken to the next level from its firm historical and cultural platform, Mr Johnson assured Mr Modi of Britain’s position that Kashmir was a bilateral issue for India and Pakistan to resolve. He apologised for the hooligan attack on the premises of the Indian High Commission in London by Pakistani and Khalistani demonstrators, promising better police protection in future. Similar behaviour marred Mr Modi’s last visit to London. On both occasions the Indian flag was burnt and Indian reporters, among them young women, set upon by these cowardly thugs.
There appears to be marked tendency among sections of the British political class that India is a made-to-measure punching bag. The Lancet’s reference to Kashmir in its recent editorial is a case in point. In a publication devoted exclusively to medicine, the reference of Kashmir transcends logic and morality, particularly as the war in Yemen is funded largely by British and American arms sales. Famine and disease, the worst in living memory, are their direct consequence.
The Indian diaspora in the UK, law abiding and revelling in the country’s level playing field, have been remarkably successful in almost every field of human endeavour. The numbers of Indian students travelling to the UK have jumped an exponential 42 per cent. This should be cause for rejoicing, not embarrassment that other immigrant communities lag far behind, and hence require continuous mollification in exchange for gratitude. The UK, London in particular, have been subjected to five major terrorist attacks in recent years. In none of these was there any detection of an Indian hand.
India as a soft state had frequently invited pity and ridicule, or at best a patronising nod. Aid Indian Consortiums are the past. India as hard state is the reality today. The sooner understood the better.
India, Bhutan bonds strengthened
It is India’s misfortune to have Pakistan as a neighbour, it is a blessing that, hundreds of miles eastwards she has Bhutan next door. The Manchu rulers in Beijing, in the 19th and early 20th centuries, eyed Tibet as China’s ‘palm,’ with ‘the five fingers’ of Ladakh, Nepal, Sikkim, Bhutan and the swath of territory known today as Arunachal Pradesh. Following the India-China conflict of 1962, New Delhi wisely abrogated the British legacy of Bhutan as a protectorate, recognizing it as fully sovereign, and endorsing its membership of the United Nations in 1970.
Based this sound foundation was put to the test in the summer of 2017 in India’s face-off with China at Doklan, situated at the tri-junction of Tibet-Bhutan-Sikkim, underscored Indian resolve to stand up to Chinese menaces. It was a measured reminder to Beijing that India this time was not the militarily unprepared nation of 1962, that war now carried grave political risks for China, not least in Tibet, where its presence is loathed by the native Tibetan population. The eventual peaceful outcome carried a message grasped by the the Association of South East Asian Nations, ASEAN, facing continuing pressure from Beijng in the South China Sea.
Against this canvas Prime Minister Narendra Modi fulfilled his promise to make an official visit to Bhutan on returning to power.
Mr Modi, an outstanding communicator, did not disappoint. Addressing students of the Royal University of Bhutan at the capital , Thimpu, with Bhutan’s Prime Minister, Lotay Tshering at his side, he said in eloquent English: ‘I want to tell you all – there is no better time to be young than now. The world today offers more opportunities than ever before. You have the power and potential to do extraordinary things...find your real calling and pursue it with full passion.’ He continued: ‘As Bhutan soars high in its endeavours, your 1.3 billion Indian friends will not just look on and cheer with pride and happiness. They will partner you, share with you, and learn from you.’ He went on to say the full gamut of cooperation between India and Bhutan, from power generation, education, space, digital payments, disaster management and much else were the new vistas of engagement. Referring to India’s space programme including the Chandrayaan-2 Moon mission, Mr Modi went on: ‘It is a matter of great happiness that young Bhutanese scientists will travel to India to work on designing and launching Bhutan’s own small satellite. I hope someday soon, many of you will be scientists, engineers and innovators.’ Mr Modi spoke of India-Bhutan cooperation in hydel-power as exemplary, ‘But the real source of power and energy of this relationship are our people,’ he said. At his departure, Mr Modi, much moved by the warmth of his reception, said, ‘Thank you Bhutan. It was a memorable visit. The affection I have received from the people of this wonderful nation can never be forgotten. There were many programmes I had the honour of taking part in. The outcomes of this visit will enhance bilateral ties.’ They must, and surely will.
