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Business and
Economy
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The
Federal Cabinet approved foreign
direct investment (FDI) of up to
51% in retail business. However,
they did not open up investments
for companies that ran multiple
brands and did not promise if and
when that may open up either.
Opening up retail is
sensitive to the communists who
support the Government. Communists
think that investments in retail
will wipe out traditional
businesses that do not form their
support base. However, are still
philosophically against capitalism
and they think that capitalists
will profiteer on India’s poor.
The Government opened up 100% FDI
in infrastructure areas like
airports, gas pipeline
construction, power trading,
exploration for diamonds,
distillation, brewing potable
alcohol, industrial explosives,
and hazardous chemicals. It also
abolished requirements to seek
Government approval for projects
away from urban areas. On the
agriculture side, it will allow
100% FDI in and processing and
warehousing of rubber and coffee
but disallows any investment in
coffee and rubber plantations.
Several multi-national companies (MNCs)
have already set up modern labs
and have completed preliminary
analysis of potential sites to
mine for gold and diamonds. They
are sought a “prospecting
license” from the Karnataka
Government.
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Citing strong performance of the agriculture
sector, the Reserve Bank of India
(RBI) has increased the Gross
Domestic Product (GDP) growth rate
from 7%-7.5& to 7.5%-8%. This
is the second time that the RBI
has increased its growth estimate
this year. However, the guard
against inflation, the RBI
increased the so-called repo rate
by 25 basis points to 6.5% and
reverse repo to 5.5%. The repo
rate is the rate at which banks
deposit their excess funds with
the RBI and reverse repo is the
rate at which RBI deposits its
funds with banks for short periods
of time. The repo rate is used as
tool to control cash liquidity.
This is the four reverse repo rate
increase in the last 15 months and
the highest it has been in 3 years.
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Democracy,
Politics and Judiciary
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In
a far-reaching verdict, the
Supreme Court has indicted Bihar
Governor Buta Singh for his
“undue haste” to recommend the
“drastic and extreme”
dissolution of the Bihar assembly.
It also chided the Federal
Government for accepting the
recommendation without
verification. The SC observed that
Singh’a report contained
“fanciful assumptions” which
could be destructive of the
democracy. The SC also said that
it couldn’t be a spectator to
the “subversion of the
Constitution.” After elections
in Bihar last year, a hung
Assembly let to the ouster of Lalu
Prasad Yadav’s Rashtriya Janata
Dal, after three terms in power,
as a clear winner. Singh, a
veteran Congressman, did not give
the party that won the largest
number of seats, the Janatha Dal
(U), the chance to form the
Government as required by the
Constitution. In his report, Singh
said that he suspected that
assembly members might be bribed
to support a new Government. The
SC said that this suspicion is
based on prejudice and that the
Federal Government should have not
accepted this report without due
diligence. Although the court had
ruled the unconstitutional nature
of the dissolution, it could not
stop the reelections in Bihar as
the process for this exercise was
well underway. The SC called the
implementation of the Sarkaria
Commission on federalism and for a
policy that would ensure that
non-politicians and eminent people
would be posted to gubernatorial
positions and not ex-party men.
Federal Cabinet members were
non-committal on the verdict even
as the communists, allies of the
Government, wanted Singh to be
dismissed. The opposition party
wanted Manmohan Singh to be sacked
for misleading the President and
United Progressive Alliance (UPA)
Chairperson Sonia Gandhi to be
held “accountable” for the
coalition decision. Confident of
his position, Singh struck a
defiant note saying that he will
“take the salute (the Republic
Day salute on Jan 26) in Patna.”
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The National Human Rights Commission (NHRC) has
reported that despite strong laws
and political will, weak police
implementation and overburdened
judiciary has resulted in a USD 8
billion flesh trade in South Asia.
The study says that over 50% of
the 450000 women and children
trafficked every year in
Asia-Pacific region is from South
Asia. They noted that increased
trafficking from Nepal,
Bangladesh, and Sri Lanka has made
this trade more valuable than
narcotics. Trafficking in states
bordering other countries,
especially the North Eastern ones
have reached alarming proportions.
They warned that India is becoming
a favorite child-sex destination
and unlike Thailand or Sri Lanka,
the issue is not being discussed
or policed well. Beach boys, shack
owners, and former victims of
pedophiles source child victims in
Goa, Kerala, and Tamil Nadu. An
interesting outcome of the study
is that married men living with
their families are more likely to
abuse trafficked girls than those
who are not with families.
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Hot Topics |
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FDI
in India |
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Recent
Supreme Court verdicts |
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Human
Rights Violation |
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IIsc
Terrorist Attack |
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Peace
process in Srilanka |
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Election
in Nepal
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Featured
Analyses |
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The Saga of the Jemaah Islamiah |
Indonesia has continuously been
embarrassed by the terror acts of a
handful of terrorists from the
Jemaah Islamiah (JI), a group with
definite Indonesian origins and made
up mostly by members of Indonesian
nationality. |
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Will Kashmir go the way of Aceh? |
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A
Cry for Help |
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Watch
the Dragon |
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Cage
This "Tiger" |
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Dalits
in India |
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Was
Jinnah a Secularist? |
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Burying
the Howitzer? |
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Smoking
Out Smoking |
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The
French Non |
Featured Edits |
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Pakistan
and the gas pipeline |
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Umbilical
connectivity and societal change |
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Blasts
in India, Afghanistan |
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Central
culpability |
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Cautious
opening up
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Is
a breakthrough possible? |
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Beyond
the composite dialogue |
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Reversing
the tide in Darfur |
Inscription |
South Indian Inscriptions
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Ancient Indian
dynasties documented their
administration, significant
developments, grants, and milestones
as inscriptions in temples. The
Archaeological Survey of India (ASI)
has documented these inscriptions
from 1886.
These pages
contain inscriptions from Pallava,
Chola, Pandya, Western Chalukya,
Eastern Chalukya, Rashtrakuta,
Hoyasala, Vijayanagara, Vishnukundin,
Kakatiya, Reddi, Vaidumba, Chinda,
Eastern Ganga, Gajapathi, Kalchurya,
Qutb-Shahi of Golkonda, and Moghul,
dynasties. |
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Terrorism,
Defense and Security
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Pakistan
President Pervez Musharraf has
confirmed the presence of
“foreigners” in Damadola, the
village bombed by CIA Predator
drones. It also appears that the
CIA has developed or cultivated
intelligence assets (spies) with
the Pakistani Inter-Services
Intelligence (ISI) organization.
It also appears that many former
ISI operatives are in the CIA pay
and report directly to Washington.
Reportedly, these assets tipped
off the CIA, which prompted the
Hellfire missile attack. The
Pakistani Federal Cabinet is
speaking in conflict tones with
the Prime Minister saying that no
terrorists were killed while his
President and other Cabinet
members maintaining that there
were terrorists. However, even
after 10 days, no bodies have been
recovered from the site. It is not
known if al Qaeda operatives or
CIA operatives removed the 13 (not
18 as reported earlier) bodies.
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European
Human Rights investigator and
Swiss Senator Dick Marty said that
the United States systematically
used torture through third parties
as a weapon against captured
Taliban fighters and suspected
terrorists. Although he did not
have clinching evidence on the
presence of secret torture cells
in Europe, there is strong
suspicion that the US may have
used Romania, Poland, Ukraine,
Kosovo, Macedonia, and Bulgaria as
places to host these centers.
Marty said that the European Union
knew about this strategy but
decided to turn a blind eye to
this “dirty work.” In a report
to the 46-nation council in
Strasbourg, he said that over 100
people have been “abducted,
deprived of their liberty and
transported to different
destinations in Europe, to be
handed over to countries in which
they have suffered degrading
treatment and torture.” The
Washington Post had initially
broken the story about the
existence of secret torture
prisons in Europe and the US has
neither confirmed nor denied their
existence. Supporters of the US
and its allies in the Iraq War
said that Marty’s report was
full of inconsistencies and “has
more holes than a Swiss cheese.”
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The Bangalore police two more suspected
Lashkar-e-Toiba (LeT) operatives
in the city and retrieved several
bombs and “incriminating
documents.” The activists were
carrying, tin bombs, carrier
bombs, detonators, and a
country-made revolver. The
arrested individuals were in
constant touch with other
suspected operatives in custody
and attended several meetings
organized by the LeT. So far, six
suspected operatives are in police
custody.
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Neighbors
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Norwegian
Minister for International
Development Erik Solheim met with
Sri Lankan President Mahinda
Rajapakse to bring the Government
and the rebel Liberation Tigers of
Tamil Eelam back to the peace
process. The Government has
already said that they will not
restart the civil war nor will
they react to the escalation of
violence by the LTTE. As Solheim
was heading to meet the elusive
LTTE chief Vellupillai Prabakaran,
about 2000 strong protestors led a
march up to the point of control
dividing the rebel-held and
Government held areas to protest
the alleged killing of Tamils.
They crowd burnt an effigy of
Rajapakse but Government troops
refused to be drawn in. The LTTE
said that they did not instigate
this protest but this is an issue
of serious concern to the Tamils
and would feature in their talks
with Solheim.
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Despite heavy opposition and protests, Nepal’s
King Gnanendra seems intent on his
local elections scheduled for
February 8. A 7-party alliance has
called the elections a “sham”
and decided to boycott the
elections. The Government has
removed curfew in most of the
country but clamped new
prohibitory orders in some parts.
Post-paid cell phones became
operational but Indian and Kazakh
joint venture service providers
were not allowed to operate. A
bundh (shutdown of businesses) is
scheduled for January 26 to
protest against “repressive”
measures of the Government
including curfews, prohibitory
orders on rallies, and
disconnection of phone services.
The Government had requested the
opposition to desist from rallies
in sensitive areas so Maoist
terrorists do not use this
opportunity to infiltrate and
implement terrorist attacks; the
opposition largely ignored this
request leading to large-scale
detentions and arrests. The
monarchy dismissed a
democratically elected Government
to assume overwhelming power to
fight the Maoist uprising in the
country.
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World
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After
four successive liberal
Governments, Canada has elected
the conservatives to power.
Strained US-Canada relations,
party scandals, and two years of
inconclusive investigations
spurred a desire for change.
Conservative leader Stephen Harper
convinced voters that he closer to
the Center and emphasized
tax-cutting and cleaner Government
than abortion and gay rights. In a
fractured vote, the conservatives
won 36% of the votes but still
short of a majority. They showed
strong support across the board
but more so in rural and sub-urban
areas. Harper is a major supporter
of the US in the Iraq war and
opposes the Kyoto Protocol on
climate control, which Canada has
already signed and ratified.
Several Indian-Canadians
were elected to the Parliament.
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After a space of 51 years, Saudi Arabian King
Abdullah bin Abdul-Aziz al Saud is
visiting India for a 4-day visit.
Defying protocols, the Prime
Minister received him at the
airport. India and Saudi Arabia
will be signing three Agreements
on combating terrorism, preventing
double-taxation, and promoting
investments. Saudi Arabia with the
largest oil reserves supplies
about 25% of India’s 1.9 million
barrels a day usage. Accompanied
by a large entourage, the Abdullah
will be the Chief Guest at the
Republic Day parade.
Coincidentally, Abdullah visited
China and signed similar
Agreements with that country
before his trip to India. A large
expatriate Indian community lives
in and Haj pilgrims visit Saudi
Arabia.
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