Business & Economy

• Indian Finance Minister P. Chidambaram has said that the Government will simplify the controversial Fringe Benefit Tax (FBT) but not withdraw it. This is a half cheer for businesses that feel penalized for legitimate business expenses. However, it is not clear what this simplification would mean in implementation terms. Presently, bookkeeping and accounting overheads are affecting the bottom-line of companies.

• Indian companies continued their onward march with several technology and BPO companies announcing large growth in their profits. Infosys with 3%, Mphasis by 26%, and iGate by 100% led the good news. One sore point was the volatility of the Indian rupee against the dollar. In the last two months, the rupee had collapsed against the dollar but regained unnaturally fast.

• In the largest order in Indian aviation history, Air India has placed a USD 11 billion order with United States major Boeing. Ordering 23 Boeing 777s including several that extended ranges. This procurement will allow Air India to become more economical through the creation of direct routes to the United States. Air India currently has a 41 aircraft fleet and this order will replace its ageing 747s. Boeing said that India and China would drive the growth of its business and committed to a regional maintenance, repair, and overhaul facility.

Democracy, Politics and Judiciary

• The Federal Human Resources Minister Arjun Singh has said that the Federal Cabinet will proclaim an ordinance that the Aligarh Muslim University will be a minority institution. The Allahabad High Court and the Supreme Court earli9er had deemed that the AMU couldn’t be a minority institution since the Government funds it. The Indian Constitution explicitly prohibits minority status for institutions that receive Government aid. Legal experts point out that the AMU, which was formed by a Government law in 1920, cannot claim minority status just because it deals with Islamic studies.

Environment  and Health

• Six of the world's largest polluting countries will create a multi-million dollar fund to encourage mining and power industries to develop and use cleaner technologies to combat climate change. The Asia Pacific Partnership on Clean Development and Climate between United States, Australia, Japan, China, South Korea, and India, met for the first time to respond to climate change challenges. These countries are responsible for half of the world's greenhouse gases from burning fossil fuels. Green groups charge that the countries are trying to subvert the Kyoto protocol. The US and Australia have refused to sign that accord. In the meanwhile the US said that it would not oppose Australia's proposed sale of uranium to China as long as they had safety processes to safeguard the consignment. Australia has nearly half of the world's uranium.

• Turkey struggled to cull its poultry population even as the dreaded H5N1 strain of the bird flu virus disease seen heading westwards into Europe. About 15 deaths have been reported in Turkey due to this disease and more in the rural areas may be unreported. In the first reported case of bird to human transmission of the H5N2 strain, Japan announced 77 cases with mild symptoms. Health officials that the H5N1 strain was not found and the chances of this virus spreading is slim. The H5N2 is not contagious between humans

• The Government has cleared a proposal that will allow Ayurvedic experts to teach in 10 American Universities. The herbal medicine market is estimated to be USD 40 billion

Neighbors

• In an interview with The Hindu, Nawab Akhbar Khan Bugti, the Baloach tribal leader who is under siege by Pakistan troops and in rebellion against Pakistani rule, called Pakistani President Pervez Musharraf a liar. Refuting the President's claim that Baloach rebels received aid from India, he said that the weapons they use were the ones supplied to them by the Inter Services Intelligence (ISI) during the fight against Soviet occupation in Afghanistan. The Pakistani President had earlier accused India of providing "financial support" and "support in kind" to the Baloach rebels and claimed to have proof of this support. Remnant weapons from the Soviet war are freely available at bargain prices. Speaking from Dera Bugti, Bugti said that the use of excessive force by Pakistan has so far killed 43 and injured 161 civilians; thousands by other estimates. India has strategic interests in Baloachistan as the planned Iran-Pakistan-India pipeline is to pass through this region. Bugti said that they would continue to attack present and future pipelines as long as their tribe were repressed and did not get a fair share of revenues. The simmering low-intensity conflict escalated when Pakistan launched a major offensive in defensive using helicopter gun ships, combat planes, and artillery in response to a rocket attack on the Pakistani President. The rocket attack itself is a response to what Baloach say is Pakistani high-handedness. In the latest case, a Baloach doctor was gang-raped by Pakistani soldiers and the officials refused to take any action against the criminals. Pakistan has a history of fighting the Baloach clans; in 1973 insurgency, 3000 army and 5000 insurgents and innumerable civilians lost their lives. The region has never truly integrated with Pakistan.