Wednesday, August 28, 2019

Trumping Trump’s unpredictability, makes India-US ties win-win

Given US President Donald Trumps unpredictability, India has been well prepared to meet and match his every mood, whether on trade or on Kashmir, as the successful conclusion and outcome of Prime Minister Narendra Modi's meetings with his show.




Even before his meeting with PM Modi in Osaka on the sidelines of the G20 in June, President Trump had taken to Twitter to vent irritation over India hiking its tariffs on US agricultural and industrial imports in retaliation to the US raising the tariff on steel and aluminium imports from India. “Unacceptable”, said the president, demanding that the tariffs be withdrawn.


Having realised by now the US President’s unpredictability, India has been going for meetings with him well prepared, and preferring to look at the larger picture in ties rather than getting bogged down with his utterances.

In a pointer to the burgeoning trade ties and just how mutually beneficial the relationship is — India-US bilateral trade reached $142 billion in 2018, witnessing a sevenfold increase since 2001 — and is expected to jump to $500 billion in five years.

Thus, rather than taking umbrage at the president’s testy language, Indian officials have been working with their US counterparts behind the scenes to soothe over the ruffles in ties.
And it has worked. For in his meeting with PM Modi in Biarritz, France, on the sidelines of the G7, President Trump did not mention his irritation over any trade issue. 

Being a hugely successful businessman, the US president understands the language of buy and sell and profit well, and anything that benefits his country is always a good thing.

On Kashmir, President Trump gave India some tense moments when he said in July that he would like to meditate on the issue and that PM Modi had suggested this to him during their Osaka meeting. India denied that PM Modi ever said such a thing and stressed that Kashmir is a bilateral matter.

India is now well prepared to tackle the US president’s unpredictable utterances. New Delhi now says just enough to convey its message, without going into any kind of quibbling over the wordings of what Trump has said, and prefers to work with US administration officials who know just how important the ties are.

Since Trump would be happy with anything that stands to benefit his country, India has already promised to buy more shale oil, with $4 billion worth of imports already in the pipeline. Indian ventures in the US are also creating jobs in the US. A CII report last year said that Indian companies have created more than 113,000 jobs in the US and invested nearly $18 billion in the country.

In the defence arena too, India has managed to soothe over US concerns over purchase of Russian S-400 Triumf missile systems. India’s defence purchases from the US, which stand at $ 18 billion since 2008, are set to rise with New Delhi lining up defence deals worth $10 billion over the next few years, which would obviously please the US president.

India has already bought C-17 and C-130J transport planes, the P-8i maritime reconnaissance aircraft, Harpoon missiles, Apache and Chinook helicopters and M777 howitzers. India is set to buy 10 more of the state-of-the-art P-8 aircraft, armed with Harpoon missiles and torpedoes, and more MH-60 Romeo helicopters and Apache attack helicopters.

These deals are beneficial to the US, and the president understands this well. So, when the two leaders met in Biarritz, there was affability in the air, and the US president voiced confidence in India’s ability to manage Kashmir, and most importantly Pakistan.

It is not just India that has been studying the US president’s moves. Pakistan Prime Minister Imran Khan had tried his luck too during his meeting with Trump on July 22 in Washington. With his country having virtually nothing to offer in terms of business and relying heavily on US aid, Imran Khan had taken to flattery and played the Afghan card to win over the US president and made him utter his offer to mediate on Kashmir.

Pakistan thought it was victory, and hoped to build on it. But it has come to nought.

Source: Trusted Online News Portals in India

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Tuesday, August 27, 2019

Cabinet may relax FDI in retail, okay ordinance to roll back FPI surcharge

The Union Cabinet in its meeting on Wednesday would take up proposals to relax foreign direct investment (FDI) in various sectors, including single-brand retail and digital media, as announced by Finance Minister Nirmala Sitharaman in her maiden Budget last month.



The liberal FDI regime is expected to attract foreign players to invest in the country which is facing a slowdown.

Seeking to make India more attractive FDI destination globally, Sitharaman had said that government would examine suggestions of further opening up of FDI in aviation, media (animation) and insurance sectors in consultation with all stakeholders.

The cabinet chaired by Prime Minister Narendra Modi may also consider approving an ordinance to roll back surcharge on foreign portfolio investors (FPIs). Sources said it had been decided to take ordinance route to scrap the higher surcharge.

In a sort of mini-Budget which included a flurry of measures to boost the economy, Finance Minister had last Friday announced rolling back the enhanced surcharge from long-term and short-term capital gains on FPIs thus returning to pre-Budget status.

The Budget proposal subsequently approved by Parliament raised surcharges on super-rich having annual taxable income more than Rs 2 crore. The surcharge of 25 percent was levied on those having taxable income between Rs 2 crore and 5 crores, and 39 percent on those with taxable income over Rs 5 crore.

While raising the levy, the government included all the individuals and association of persons (AOPs) under the purview of the enhanced surcharge. Since many foreign portfolio investors (FPIs) are structured as an association of persons (AOPs), limited liability partnerships and trusts, the higher surcharge applied to them.

Hit by the additional tax burden, the FPIs started pulling out money from the markets creating a negative sentiment. With massive capital outflow triggered by the levy, the government came under pressure and held a meeting with FPIs and domestic institutional investors to understand their concerns. Following the consultation, it decided to scrap the tax move.

Markets have responded positively to the surcharge roll-back with both BSE Sensex and NSE Nifty 50 indexes surging more than 2% on Monday, the first working day after the much-awaited announcement.

Source: Trusted Online News Portals in India

Wednesday, August 7, 2019

सुषमा स्वराज के निधन से स्तब्ध और दुखी हूं : रघुवर दास

झारखंड के मुख्यमंत्री रघुवर दास ने आज कहा कि पूर्व विदेश मंत्री एवं भारतीय जनता पार्टी (भाजपा) की वरिष्ठ नेता सुषमा स्वराज जी के निधन से वह स्तब्ध और दुखी हैं।
श्री दास ने यहां अपने शोक संदेश में कहा, “सुषमा जी ने अपना पूरा जीवन राष्ट्रसेवा को समर्पित किया। उनकी कमी हमें सदैव महसूस होगी। ईश्वर दिवंगत आत्मा को शांति प्रदान करे और उनके परिवार को यह दुःख सहन करने की शक्ति दे।“
उल्लेखनीय है कि पूर्व विदेश मंत्री सुषमा स्वराज का दिल्ली के अखिल भरतीय आयुर्विज्ञान संस्थान (एम्स) अस्पताल में मंगलवार की रात को निधन हो गया। वह 67 वर्ष की थीं। उनके परिवार में पति स्वराज कौशल और एक पुत्री बांसुरी स्वराज हैं।
वह लंबे अरसे से बीमार चल रही थीं और उनका किडनी ट्रांसप्लांट भी हुआ था। श्रीमती स्वराज को कल रात करीब दस बजे हृदयाघात के बाद एम्स में लाया गया, जहां डॉक्टरों ने उन्हें वेंटिलेटर पर ले कर बचाने का प्रयास किया लेकिन उनके शरीर ने साथ नहीं दिया।