Other Briefings
What the Largest Democracy Means to the Oldest Democracy
Nov. 6 – With Obama having been elected the 44th President of the United States what needs to be seen is whether the world's oldest democracy (US) and the world's largest democracy (India) can work together for a common good and global development?
Key issues that will impact India-US relations revolve around Pakistan, China, terrorism, nuclear issues and trade. Obama supporters expect him to sustain his relationship with India, while viewing his relationship with China as the most important US relationship in Asia.
“Your extraordinary journey to the White House will inspire people not only in your country but also around the world,” Dr. Singh told Obama, reported the Hindu.
PM Tells India Inc Not to Cut Jobs
Nov. 4 – While assuring Indian companies that the government would take affirmative steps to reign in the global meltdown, Prime Minister Manmohan Singh requested industry leaders not to cut jobs in the near future. In order to prevent a drastic slowdown the government has already cut reserve requirements of banks and duties on aviation fuel and steel.
Recent changes taken to shore up the economy also had their effect on the Indian rupee which rose by the most in a decade. The rupee climbed 1.7 percent to 48.645 a dollar at the 5 p.m. close in Mumbai, according to data compiled by Bloomberg. That is the biggest advance since Jan. 19, 1998.
India and China Agree to Work Together to Cope with Financial Crisis
Oct. 30 – Indian Prime Minister Manmohan Singh said during an interview that India and China have agreed to work together to deal with the financial crisis, reports the Indian Express.
Mr. Singh was recently in Beijing to attend the Asia-Europe (ASEM) Summit that brought together world leaders to discuss the steps to be taken to address the effects of the global credit crisis. It was the first time that a high-ranking official from India would attend the summit.
On the sidelines of the event, Mr. Singh had meetings with German Chancellor Angela Merkel, Chinese President Hu Jintao, President of Mongolia Nambaryn Enkhbayar, President of Bulgaria Georgi Parvarov, in addition to Italian and Vietnamese Prime Ministers Romano Prodi and Nguyen Tan Dung.
Indian Apparel Exporters Forced to Lay Off Workers
Oct. 30 –Indian apparel exporters have been forced lay off workers as export demand from United States and European garment stores slowdown due to the global credit crisis.
?Among the U.S. stores with European branches, Steve & Barry's and Mervyns have declared bankruptcy. Pacific Sunwear closed 150 stores while Lane Bryant, Fashion Bug and Catherines are deciding to cut out 150 outlets. In addition, Foot Locker is also removing 140 stores while Ann Taylor has decided to slash 117 outlets. ??Some of the United State’s top garments retailers have decided to scale back operations. These include: Eddie Bauer, Cache, Talbots, J Jill, Gap Inc, Foot Locker, Goodbye Levitz, Home Depot, Macy's, Pep Boys, J C Penney, Lowe and Office Depot.
WTO Chief: No Financial Plan without Emerging Economies
Oct. 30 – The World Trade Organization’s (WTO) Director-General says that there can be no new agreement on the world’s financial order without the cooperation of emerging economies like India, China, Brazil, Indonesia and South Africa.
“As Europe and North America face an economic slowdown, the Emerging Economies of Brazil, India, Mexico, China, Egypt, Indonesia and South Africa continue to grow and they continue to grow in large measure because of trade….In this ever more interconnected world, prosperity in India, China, Brazil is very much in Washington's interest.” Lamy said in a speech he made at Stanford University on October 27 and posted on the WTO website.
The emerging economies are significant to the United States because exports are contributing to GDP. On annualized basis, export and slowing imports contributed 2.9 percent of the U.S. GDP.
India’s House Panel: Companies Must Be Charged More for Court Cases
Oct. 28 – India’s parliamentary standing committee on Law and Justice is proposing that the Supreme Court and High Courts charge higher fees for corporations settling disputes while fees those who are poor and illiterate should be levied, reports The Times of India.
In a scenario when the judicial system is clogged by the huge number of cases, preference to corporate cases that too on minimum court fees may amount to taking away the time meant for the common man, the Committee's chairman E M S Natchiappan told The Times India.
"Early hearing and disposals of cases by the courts in corporate cases only delay the cases of ordinary citizens as they take valuable court time within minimum court fees, therefore, there is a strong case for a differential court fee for the corporate sector," said Natchiappan.
Singh Assures Parliament that India will Tide over Temporary Slowdown
Oct. 23 – Like most nations, India is not an insular economy, it will be affected by the global economic meltdown. Reaffirming his stance, that India's strong fundamentals will prevent it from going under, Prime Minister Manmohan Singh sought to convince foreign investors and the Indian people that although India will face a temporary slowdown, the economy will return to faster growth when the situation stabilises. Singh's statement came to parliment just after the Reserve bank of India cut its key short-term lending rate by one percent to eight percent. The prime minister also promised that inflation would come down in the next two months.
Japan-India Strenghten Bilateral Ties; Pledge Investments, Energy Security and Free Trade
Oct. 22 – Enroute to the Asia-Europe summit to be held in Beijing later this week, Indian prime Minister Manmohan Singh is visiting his Japanese counterpart Taro Aso. The two countries are seeking ways to deepen investments in defence, science and technology and energy security. Both also hope to sign a free trade agreement by the end of this year, boosting bilateral trade to US$20 billion by 2010. Ties between the two nations are already strong, with approximately 30 percent of all of Japan's foreign aid being directed towards India.
Japan will aid India with a US$4.5billion soft loan (the biggest-ever amount Tokyo has provided for a project overseas) to improve the 1468-km Mumbai-Delhi Industrial Corridor project. Manmohan Singh also encouraged Japan to grab a piece of India's nuclear pie, following opening up of the lucrative energy sector. Talks between India and Japan have recently been stalled by tariff negotiations and Japan's tight regulations on generic Indian drugs.
