India’s Delhi Elections Shows The People Have Chosen The BJP: Pro PM Modi

(THIS ARTICLE IS COURTESY OF INDIA’S NDTV)

NEW DELHI: 

HIGHLIGHTS

  1. “BJP headed for a big victory”, predicted Yogendra Yadav
  2. Result reflects people’s anger with Delhi government: Yogendra Yadav
  3. His party Swaraj India also contested MCD polls

Delhi has made its preference for the BJP abundantly clear, Yogendra Yadav, the founder of Swaraj India, said today, predicting, before 9 am, “the BJP is headed for a big victory” in local elections. The result, said Mr Yadav, reflects the people’s anger with the government that is headed by Arvind Kejriwal – the men were part of the same Aam Aadmi Party till two years ago when Mr Yadav and another senior AAP leader Prashant Bhushan were evicted after taking on Mr Kejriwal.

The ballooning of the BJP in this election for three local corporations, Mr Yadav said, owes everything to Prime Minister Narendra Modi.  “People have ended up rejecting the CM (Chief Minister) and electing the PM,” he commented on NDTV.

Mr Yadav said his own Swaraj India does not expect much today. “This is a starting point, this is not our election to gain big seats, it was a foundational election,” he claimed.

Even before the counting of results began, Mr Kejriwal repeated electronic voting machines or EVMs for being rigged, a claim he first made when his party failed to win Punjab in February’s election, defying a massive campaign fronted by him and the forecast of exit polls.

Demonetisation Be Damned! The Indian Rupee Is On A Tear

(THIS ARTICLE IS COURTESY OF QUARTZ INDIA)

LOOK AT IT FLY

Demonetisation be damned! The Indian rupee is on a tear

March 17, 2017 Quartz India

It’s been a great week for the Indian rupee.

On March 16, at Rs65.41 per US dollar, the currency hit a one-year high against the greenback.

Much of the strengthening has to do with the ruling Bharatiya Janata Party’s (BJP) recent electoral wins in Uttar Pradesh and Uttarakhandand solid performances in two other states. The strong showing reflects just how well the party is positioned to sweep the next general elections in 2019 and hand Narendra Modi a second term as prime minister. Some of that magic is rubbing off on the markets.

“Since the start of the week, equity markets and the Indian rupee have rallied sharply in response to the strong performance of the main ruling party in recent state elections,” DBS Bank said in a March 16 report.

So far, the Indian currency has been the third-best performing in Asia in 2017. The rupee has gained 3.4% this year against the US dollar, only trailing the South Korean won and the Taiwanese Dollar.

Meanwhile, the US Federal Reserve’s interest rate hike on March 15—only the third since the economic crisis of 2008—hit the dollar. When the US dollar falls, capital outflows from emerging markets are restricted, thus strengthening local currencies like the Indian rupee.

The rupee’s strengthening comes after a free fall triggered by Modi’s move to demonetise 86% of the currency notes (by value) in November 2016. Initially it had been estimated that the currency ban would dent the GDP and take a toll on the economy.

In January, a Reuters poll of some 30 foreign exchange strategists had estimated that the Indian currency could see a record fall this year because of the currency ban. But India’s Central Statistical Office’s estimates show that the economy grew at 7% during the October-December 2016 quarter, and the rupee is holding strong.

One reason for the rupee’s surge is also that the macro-economic factors that influence a currency—inflation and current account deficit (CAD)—are looking good for India at the moment. While inflation is being restricted in its safe zone of sub 6%, India’s CAD (the excess of imports over exports) has also been falling.

What next

A strong rupee is good news for corporate India. Many firms hold debt in foreign currencies, so a fall in the exchange rate means their interest outgo will reduce. “Many Indian entities including short-term trade finance people remain unhedged for their offshore liability. They (companies) are likely to have gained from the rupee’s sharp rise in the last few days. At least, interest liability has reduced, adding to balance sheet gains,” Jayesh Mehta, country treasurer at Bank of America told the Economic Times.

However, the Reserve Bank of India (RBI) could soon step in to stabilise the rupee’s movement. Some reports suggest that the central bank already is buying dollars through public sector banks.

“The rupee appreciation, we feel is not sustainable and would revert to the range of Rs66-66.5 range, to begin with as the fundamentals do not warrant such unbridled enthusiasm,” a report by CARE Ratings said. “The outcome of the elections has been the main driving force. A strong rupee may not be good for our exports and the RBI is cognizant of the same.”

Why These Indian State Elections Matter To The Whole World

(THIS ARTICLE IS COURTESY OF CNN)

Why these Indian state elections matter to the whole world

Indian Prime Minister Narendra Modi during a roadshow in support of state assembly election party candidates in Varanasi on March 4.

New Delhi (CNN) India’s ruling political party has won a crucial state election, strengthening its ability to push through a development agenda in the world’s fastest growing major economy.

As vote counts trickled in from five state elections on Saturday, one result loomed large: that of central India’s Uttar Pradesh, home to more than 200 million people. The staggered five-week vote in that state alone marks the biggest election in the world in 2017.
Modi’s ruling Bharatiya Janata Party, or the BJP, looks poised to take about 75% of the 403 seats on offer in Uttar Pradesh.
The clear majority means the BJP will be able to form a state government without the help of other parties. In the previous Uttar Pradesh election, in 2012, the BJP won only 47 seats. 2017’s vote marks a significant endorsement for Prime Minister Narendra Modi, the leader of the BJP, and the face of its campaign across state elections.
Four other, smaller states declared results on Saturday: Punjab, Goa, Uttarakhand, and Manipur. In Punjab, India’s storied but declining Congress Party emerged victorious. The BJP took Uttarakhand and was vying for dominance in close races in Goa and Manipur as results continued to be firmed up.
The state elections are crucial at national level because each state nominates a proportional number of representatives to India’s upper house of parliament.
While the BJP has a clear majority in the lower house — won in 2014’s national vote — it is underrepresented in the upper house, which has stymied some of its reform proposals.

A referendum on Modi

According to Shailesh Kumar of the political risk consultancy Eurasia Group, the Uttar Pradesh result was a referendum on Modi.
“Voters largely support his policies. The win indicates that Modi’s efforts to tackle corruption were a far bigger draw than any negative consequence attributed to demonetization.”
“Demonetization” refers to a shock move in November when Modi recalled all 500 and 1,000 rupee currency notes.
The two high-value notes represented 86% of all cash in circulation in India. The surprise recall, and the subsequent release of new 500 and 2000 rupee notes, led to weeks of long queues at banks and ATMs across the country.
At the time, Modi said the recall was aimed at cracking down on corrupt hoarders of untaxed cash. A number of reputed global economists, included Harvard’s Lawrence Summers and Ken Rogoff criticized Modi’s move as excessive.
On the campaign in Uttar Pradesh last month, Modi refuted their criticisms by saying “hard work beats Harvard.”

Economy and tackling corruption still the focus for now

The results themselves are not a great surprise, but the margin of the BJPs win in Uttar Pradesh is greater than predicted.
However, even with the landslide win in Uttar Pradesh, Modi will still fall short of enough support in the parliament’s upper house, says Eurasia’s Kumar.
“Modi’s national focus will still be economic development with an added focus on corruption. Changes to economic policies will be through executive action and tweaks to regulations that do not require legislative approval.”
Modi is also expected to double down on his plans to improve infrastructure.
“He is now well positioned for 2019,” Kumar said, referring to the next national elections.

India shows faith in Modi — can he now deliver?

At a time of global anger against elected leaders, India’s state elections represent a vote of confidence for the country’s Prime Minister, as well as a much-needed boost of morale.
Modi had previously lost an important election in Bihar, a state which shares a similar voter base to Uttar Pradesh. Modi also suffered in recent months with the chaos and fallout from his demonetization move.
With a cutback in consumer spending and economic activity, economists had predicted a fall of as much as one percentage point in India’s growth rate.
However, in India’s most recent GDP figures released last month, quarterly growth had slowed only slightly to 7%, which meant India once again edged ahead of China as the world’s fastest growing economy.
While India is still seen as a developing nation, its size and speed of expansion underscore its massive importance to the global economy. According to the consulting group PwC, India accounts for about one-sixth of the world’s GDP growth.
With Modi now firmly ensconced in power until at least 2019, and perhaps further ahead, the focus will now shift to whether Modi can deliver on his promises of rapid development.

INDIA: UP Minister Accused In Gang Rape Of Mom And Teenage Girl Has Disappeared

(THIS ARTICLE IS COURTESY OF THE HINDUSTAN TIMES)

Airports across the country were on Friday alerted about the possibility of rape-accused UP minister Gayatri Prasad Prajapati trying to flee the country even as chief minister Akhilesh Yadav promised all help in the case.While the minister continues to elude police, a relative of the woman has said a UP Police officer who recorded the victim’s statement threatened to kill them.

Yadav and his Samajwadi Party are facing the heat over the missing minister as the state holds sixth round of voting on Saturday.

The case, the BJP said, was a pointer to the worsening law and order situation in Uttar Pradesh.

A letter of cancellation would soon be opened against Prajapati and all airports were alerted to prevent the 49-year-old from fleeing the country, official sources said.

A letter of cancellation is a technical term for alerting immigration authorities about the possibility of a suspect leaving the country.

The Sashastra Seema Bal, which guards Uttar Pradesh’s border with Nepal, too, was on an alert.

An FIR was recently registered against the minister for allegedly gang-raping a woman and molesting her daughter. The FIR was filed on the directions of the Supreme Court.

Read more

CM promises help

“The matter is in the Supreme Court…The government will fully cooperate and go by its order,” Akhilesh Yadav said to a question at a hurriedly convened press conference in Lucknow.

When his attention was drawn to a tweet by state BJP president Keshav Prasad Maurya that said Prajapati was hiding in the chief minister’s house, Yadav asked the mediapersons to check for themselves.

Prajapati is the SP’s candidate from Amethi, which voted on February 27.

‘Murder threat’

A relative of the woman allegedly raped by Prajapati and his aides alleged that a police officer who came to the All India Institute of Medical Sciences in Delhi to record the victim’s statement, threatened to kill them in a fake encounter.

In a complaint filed at the city’s Hauz Khas police station, the relative alleged that a DSP-rank officer on Thursday barged into the ward where the victim’s 16-year-old daughter is admitted and threatened them. The officer also snatched their mobile phones.

Read more

The victim’s daughter, who was also allegedly sexually assaulted by the minister, is being treated in a restricted ward of AIIMS.

“The lady officer pushed the girl who is undergoing treatment and pestered the mother to record the statement.

“When we objected to it, the officer threatened to get us killed in a fake encounter,” said the complainant, who claimed to be a cousin of the victim.

Delhi Police sources said a team went to AIIMS but found nothing to back the claims made in the complaint.

“We have received a complaint from them and it is being examined. In case something comes out in the investigation, we will register an FIR,” a Delhi Police officer said.

Deputy superintendent of police Amita Singh had recorded the statement of the victim and her daughter amid opposition by their family members at AIIMS.

tag