Archive for ‘India alert’

15/08/2015

Modi’s Independence Day Speech – The Numbers – WSJ

Indian Prime Minister Narendra Modi’s second Independence Day speech on Saturday morning was peppered with numbers – most measuring the success of initiatives launched since he took office, and others earmarking targets that he hopes the country will reach in the future.

English: Image of Narendra Modi at the World E...

English: Image of Narendra Modi at the World Economic Forum in India (Photo credit: Wikipedia)

Here are some of the figures that Mr. Modi used in his one-and-a-half hour long speech at Delhi’s iconic Red Fort.

1.25 billion Indians

It was hard to keep count on the number of times Mr. Modi invoked the unified power of India’s 1.25 billion people during his speech. “This is Team India, a team of 125 crore Indians. This is the team that makes our nation and take our nation to new heights,” he said in the first few minutes, using the Indian unit, crore, for 10 million. Mr Modi said that advancements made by his government in the 15 months since he took office as prime minister, were the “achievements of Team India.” He even set a target for the team: to make India a developed nation by 2022, the year that India celebrates 75 years of independence from British rule.

425,000 toilets

All schools should have toilets with separate amenities for girls, Mr. Modi said during his speech last year, setting a one-year deadline for the target. In his address on Saturday, Mr. Modi declared that 425,000 toilets had been built in over 200,000 Indian schools in the past year. It wasn’t immediately possible to verify this claim. According to India’s federal human resource development ministry, by 2014, about 91% and 85% of government-run schools had separate toilets for girls and boys respectively.

2 million cooking-gas subsidies

Since January, 2 million Indians have forfeited their cooking-gas subsidies–offered to all households–under a campaign called “Give It Up.” The initiative, launched by the federal ministry of petroleum and natural gas, urged affluent Indians to give up the perk—amounting to about $4 on every cooking-gas cylinder—if they could afford to. The government hopes the plan will make gas available as a clean energy for the millions who still rely on firewood and biomass for cooking. The poorest section of Indian society receives only 15 percent of this subsidy, according to a 2014 report by Council on Energy, Environment and Water, a Delhi-based non-profit. On Saturday, a website for the campaign, givitup.in, showed that 2,101,977 people had voluntarily surrendered the subsidy.

170 million bank accounts

Mr. Modi said his push to widen access to financial services for the poor through a program called Pradhan Mantri Jan Dhan Yojana—or the Prime Minister’s People Money Scheme, announced in his Independence Day speech last year, had shown progress. He said 170 million new bank accounts have been opened under this program and that the total amount deposited in the accounts amounts to 200 billion rupees ($3.07 billion.) The amount reflects “the richness of the poor,” he said. The government said in April that 135 million new bank accounts were opened in the eight months since the scheme launched.

65 billion rupees

That’s the amount of unaccounted, or “black money,” sitting in international accounts held by tax-avoiding Indians that has been declared to authorities in the past two-and-a-half months, Mr. Modi said. In July, following new legislation aimed at combating tax avoidance, and combating so-called “black money,” the government opened up a three-month window for law breakers to disclose their foreign assets and incomes, pay due taxes and settle the steep penalties imposed for evading taxes, to avoid prosecution. The punishment for stashing “black money” to evade taxes is 10 years in prison.

18,500 villages

Despite a number of ongoing campaigns, Mr. Modi didn’t shy away from setting another target: to provide electricity to 18,500 villages that don’t have power supply in the next 1,000 days.

via Modi’s Independence Day Speech – The Numbers – WSJ.

15/08/2015

Modi Uses Independence Day Speech to Hit Out at ‘Termite-Like’ Graft – India Real Time – WSJ

At the end of a week in which Prime Minister Narendra Modi failed to push broad measures aimed at boosting the economy through Parliament, the Indian leader sought in an Independence Day address to draw attention to his efforts to make the machinery of government more efficient and less corrupt.

In a 90-minute speech delivered from the ramparts of New Delhi’s Red Fort on Saturday, Mr. Modi didn’t focus on sweeping policy changes or big, new plans. Instead, he spoke of trying to enforce change in the Indian government bureaucracy, a system he characterized as riddled with “termite-like” graft and inertia and accustomed to inordinate delays.

“What government doesn’t make big declarations?” Mr. Modi said. “The test is whether we are able to implement the promises we make. We have stressed a new work culture.”

Under attack from political opponents who have tried to portray him as pro-business and anti-farmer, Mr. Modi didn’t once mention his “Make in India” campaign to encourage foreign and domestic investors to set up factories in India, nor did he directly address weeks of opposition protests that stalled a major tax overhaul in Parliament.

via Photos: Modi Uses Independence Day Speech to Hit Out at ‘Termite-Like’ Graft – India Real Time – WSJ.

13/08/2015

Politics Gets in the Way of Modi’s India Overhaul – India Real Time – WSJ

Political calculations and parliamentary gridlock are putting the brakes on Prime Minister Narendra Modi’s already-incremental plans for economic revitalization 15 months after Indian voters gave him an overwhelming mandate for change.

Following nearly a month of partisan bickering, lawmakers ended a parliamentary session on Thursday without passing a centerpiece of Mr. Modi’s agenda—a constitutional amendment to replace a thicket of differing state taxes with a more business-friendly nationwide levy.

 

The Indian leader, worried about political opposition and a backlash from rural voters, also effectively abandoned efforts to win approval for another development measure—legislation that would have made it easier for the state to acquire land for infrastructure and industry, government officials, some ruling party and opposition lawmakers said.

Mr. Modi shot to prominence with a landslide electoral victory and impassioned vows during visits to world capitals to reset India’s economy. But blocked by the opposition and reluctant to take risky political steps, his liberalization project is languishing.

“The slowdown in the reform momentum has taken away the type of optimism we saw when Modi was elected in 2014,” said Chua Han Teng, an India specialist at London-based BMI Research. “It hurts investor confidence.”

via Politics Gets in the Way of Modi’s India Overhaul – India Real Time – WSJ.

12/08/2015

India’s Smartphone Market Is Booming – Especially at the Low End – India Real Time – WSJ

Xiaomi Corp., which announced Monday that its some of its phones are now being assembled at a factory in India, isn’t the only Chinese smartphone maker with its eye on the subcontinent.

With the Chinese economy slowing and demand for smartphones picking up in India, Chinese handset makers including Lenovo Group Ltd.0992.HK +1.70%, Huawei Technologies Co. and Gionee Communication Equipment Co.  are looking to produce and sell more phones in the world’s second-most-populous nation.

But Indian consumers prefer cheaper phones than their Chinese counterparts. Roughly half of smartphones sold in India for the three months ended in June cost less than $100. In China, these low-end smartphones accounted for about 20% of the market over the same period, according to research company International Data Corp. IDC predicts the average selling price of Indian smartphones will fall to $102 in 2018 from $135 in 2014.

The $100 Galaxy J1 and other inexpensive handsets drove sales for Indian smartphone market-leader Samsung Electronics Co.005930.SE 0.00%, helping to increase its share of sales to 23% of the smartphones sold during the quarter ended June 30. In other markets, including China, sales are driven by its flagship Galaxy S6 and Galaxy S6 Edge, which sell for around $600 and $700, respectively, in the U.S.

Smartphone penetration is growing rapidly. While Internet penetration levels in India resemble China’s numbers from six years ago, smartphone penetration is only four years behind, according to a Credit Suisse report. The skyrocketing growth has even caught the attention of Apple Inc.AAPL -5.49%, which recently started offering financing to make its iPhones more accessible to Indians.

That might be bad news for smartphone manufacturers who operate on already razor-thin margins, but it’s potentially good news for Indian consumers and the Indian economy.

It also helps explain why contract manufacturing giant Foxconn says it intends invest billions of dollars setting up factories in India, and why Xiaomi recently announced its first made-in-India smartphone, the $107 Redmi 2 Prime. Changes to tax rules now make it cheaper to manufacture electronics in India. It also shortens the supply chain, meaning phone-makers can get their products to consumers faster and reduce inventory costs.

via India’s Smartphone Market Is Booming – Especially at the Low End – India Real Time – WSJ.

10/08/2015

5 Things to Know about Foxconn’s Overseas Ambitions – WSJ

Foxconn, Apple Inc.’s major assembler, has signed a preliminary deal with India’s Maharashtra state to invest $5 billion in factories and research facilities in coming years. But the company, officially known as Hon Hai Precision Industry Co., has a history of making ambitious statements and floating investment ideas that haven’t materialized. Here are five things to know about Foxconn’s overseas ambitions.

Deutsch: Foxconn Logo

Deutsch: Foxconn Logo (Photo credit: Wikipedia)

1 India isn’t its first billion-dollar bet

In 2011, Foxconn agreed to invest $12 billion in Brazil to create a new supply chain that it had hoped will generate jobs. But four years later, Foxconn’s investment in Brazil has been much smaller than the pledged amount. It is still struggling to improve the manufacturing operations at its plants for iPhones and iPads there citing its inefficient labor force. The company has also been in talks for a new plant investment in Indonesia for years.  The Indonesian government once said that Foxconn would invest up to $10 billion, but plans remain in limbo due to political snags.

2 Why India?

While China remains the world’s largest smartphone market by shipments, India has the biggest growth potential for the next 5 years, says Bernstein analyst Mark Li. India recently raised taxes on mobile phones imported to the country to 12.5% from 6%, spurring global handset makers to look at ways to manufacture devices locally.

3 Sign of shift in manufacturing to India from China?

Analysts say it is unlikely that India will overtake China to become the company’s main production base in the next few years as China has an well-established supply chain ecosystem. India still lacks good infrastructure and favorable tax and labor policies, making it a less attractive destination for tech manufacturing.

4 Foxconn Chairman Terry Gou always aims for the best deal

The agreement with the Indian government is non-binding. Foxconn Chairman Terry Gou usually gives a rosy picture about the company’s potential investments when he negotiates with government officials. But only a few investment plans materialize as he wants favorable terms including big tax incentives and free land that most governments can’t accommodate.

5 Foxconn seeks other investment opportunities in India

The company and Chinese e-commerce giant Alibaba Group Holding Ltd. are in talks to jointly invest about $500 million in Snapdeal.com, a five-year-old Indian e-commerce startup. The deal would give Foxconn a retail foothold in India where it has experienced booming demand for smartphones. Foxconn is also setting up a new production site for Chinese smartphone maker Xiaomi Corp. in India.

via 5 Things to Know about Foxconn’s Overseas Ambitions – WSJ.

10/08/2015

China’s Xiaomi to Make Smartphones in India – India Real Time – WSJ

Chinese smartphone maker Xiaomi Corp. will begin manufacturing phones in the southern Indian state of Andhra Pradesh, according to the state’s highest elected official.

A tweet from the verified account of N. Chandrababu Naidu, the state’s chief minister, said Xiaomi would announce the move today.

Xiaomi’s move follows Taiwanese contract manufacturer Foxconn’s announcement Saturday that it plans to spend $5 billion on factories and research and development in the western state of Maharashtra. Foxconn, known officially as Hon Hai Precision Industry Co. assembles Apple Inc. iPhones and as well as most of Xiaomi’s phones. Foxconn has a plant in Andhra Pradesh.

The Indian government amended its customs rules recently to make it more attractive to make electronic goods in India, as it seeks to boost manufacturing, create jobs and reduce reliance on expensive imports from China.

via China’s Xiaomi to Make Smartphones in India – India Real Time – WSJ.

07/08/2015

Where You Can and Can’t Eat Beef in India – India Real Time – WSJ

The treatment of cows, animals considered sacred by India’s Hindu majority, has long stirred political controversy in the country –and now conservatives, emboldened by the first year of the Hindu nationalist government, are stepping up their campaign to protect them.

In many Indian states, the slaughter of cows is already illegal, making it difficult to buy, sell, and, as a result, eat, beef.

Some conservative Hindus want Indian Prime Minister Narendra Modi and his Bharatiya Janata Party government to enact a federal law banning cow slaughter. They are “encouraged to be aggressive under the Modi regime and this is to be expected,” said Swaminathan S. Anklesaria Aiyar, an Indian specialist at the Cato Institute in Washington.

 

The party argues that protecting the animal is in line with India’s constitution, which includes language calling for the prohibition of the slaughter of cows.

In Maharashtra, where killing the animal is illegal, a new law in March banned the possession of beef and also the slaughter of bulls and bullocks. Running afoul of the new law can lead to a jail term of up to five years or a fine of up to 10,000 rupees ($156) or both.

The amendment was passed by the state government in 1995 and received the president’s nod in March.

In the same month, the state assembly of Haryana passed a bill containing stricter punishments for the animal’s slaughter. It is still waiting for the president’s approval, a senior official at the state’s animal husbandry department said.

States such as Uttar Pradesh, Andhra Pradesh and Punjab, which are at the heart of India’s buffalo meat industry, have also imposed complete bans on killing cows. The practice is outlawed in the capital city of Delhi. Other major states with bans include Bihar, Tamil Nadu, Madhya Pradesh, Himachal Pradesh, Karnataka and Orissa.

In Gujarat, Mr. Modi’s home state, India’s Supreme Court upheld the state’s law that prohibits killing of cows, bulls and bullocks in 2005, overturning the decision of the Gujarat High Court that ruled against a blanket ban on bull and bullock slaughter. But in 2011, sentences for people caught killing cows were increased from six months to seven years.

West Bengal, which has a higher than average population of Muslims, is slightly more lenient and allows the killing of cows if they are “fit-for-slaughter.”  A senior official in the animal husbandry department in Assam said that such a certificate would also permit the slaughter of cows in that state but usually only during the Islamic religious festival of Eid.

Overall, 24 of India’s 29 states–including the newest state of Telangana–have imposed penalties  and restrictions of varying degrees on the slaughter of cows and other cattle.

Meanwhile, in the southern state of Kerala, where beef dishes are popular and which has a larger than average proportion of Christians, there is no statewide legislation restricting cow slaughter.

And the northeastern states of Arunachal Pradesh, Meghalaya, Mizoram, Nagaland and the territory of Lakshadweep also have no legislation banning or prohibiting slaughter of cows and other cattle.

Rajnath Singh, India’s home minister, failed to persuade Parliament to pass nationwide legislation banning the slaughter of cows in 2003 when he was agriculture minister. “The moment I rose to present the bill in the Parliament, there was an uproar and the bill couldn’t be passed,” he said in a speech in March.

This time, however, Mr. Singh said the government will do everything in its power to ban cow slaughter in the country. But BJP’s success in getting such a legislation cleared by the Parliament is not guaranteed as it is short of a majority in the upper house.

via Where You Can and Can’t Eat Beef in India – India Real Time – WSJ.

30/07/2015

India hangs Yakub Memon for 1993 Mumbai bomb blasts | Reuters

India hanged Yakub Memon on Thursday for his role in the country’s deadliest bombings, which killed 257 people in Mumbai in 1993, after the Supreme Court threw out his final plea for a stay of execution.

Memon was convicted as the “driving spirit” behind the serial blasts in India’s financial capital Mumbai, then known as Bombay. He spent two decades in jail before going to the gallows on his 53rd birthday in a jail Nagpur.

The execution drew wide public support but has stirred controversy about whether the punishment adequately reflected the help Memon gave authorities in solving the crime.

Critics question whether Memon’s death serves India’s larger interests, saying it sends the wrong message to potential collaborators with justice agencies.

In the days before his execution, it emerged that Memon had helped Indian intelligence crack the case and establish a link to neighbour and arch-rival Pakistan over the bombings.

“It’s extremely sad that India has gone ahead, we had been hoping India will now call for a moratorium,” said Meenakshi Ganguly, South Asia director for Human Rights Watch.

“But it’s very welcome that now there seems to be a growing debate around this in India.”

In a dramatic sequence of events, a Supreme Court panel held an unprecedented hearing in the early hours of Thursday, before rejecting Memon’s last-ditch plea for a 14-day delay in execution. Several previous pleas had also been rejected.

Police consider Memon’s brother, “Tiger” Memon, and mafia don Dawood Ibrahim to be the masterminds behind the attacks, intended to avenge the destruction of an ancient mosque by Hindu zealots in 1992. Both men remain in hiding.

Memon’s body was released for burial in Mumbai, with police deployed in riot gear to guard against possible street protests and security tightened at the family home.

via India hangs Yakub Memon for 1993 Mumbai bomb blasts | Reuters.

29/07/2015

Why the Punjab Police Station Attack Was Waiting to Happen – India Real Time – WSJ

Six people were killed and at least seven injured in the Indian province of Punjab on Monday after gunmen dressed in military uniforms opened fire at a bus station and later turned their weapons on a police post.

According to Indian officials, security forces killed three of the attackers; three police officers also were killed in the violence in Gurdaspur district, which is close to the Pakistani border. The death toll could have been much higher; five bombs were reportedly found on train tracks nearby.

Many Indians and South Asia analysts, myself included, have feared for some time an eruption of the sort of violence that unfolded Monday. Reasons include:

* With most international troops out of Afghanistan, numerous militants that had been fighting foreign forces in Afghanistan could be looking for new targets—and might see ones in neighboring India.

* There was a resurgence in 2014 of anti-India militant leaders who had been quiet in recent years. These include Masood Azhar, head of the Jaish-e-Mohammed group, whose voice was heard in a recorded broadcast last year at an anti-India rally in Pakistan. Mr. Azhar had threatened to assassinate Narendra Modi if he became prime minister.

* The India-Pakistan relationship is at one of its lowest points in years. The Pakistani military controls its country’s relations with India, and army leaders are fundamentally opposed to the idea of peace with New Delhi. Mr. Modi’s conservative, Hindu nationalist government sees no reason to pursue full-fledged talks with Pakistan’s civilian government, which is more sympathetic to reconciliation but lacks the power to pursue it. This fraught environment offers useful pretexts for attacks.

It is not yet clear who staged Monday’s assault; some Indian officials have alleged the involvement of Lashkar-e-Taiba, the Pakistani anti-India group responsible for the 2008 terror strikes on Mumbai. Lashkar-e-Taiba is known to have ties to the Pakistani security establishment. Notably, Islamabad has condemned the attack—a goodwill gesture made with the knowledge that, whoever staged the attack, someone in India would invariably accuse Pakistan.

Although Punjab province is close to the tense Kashmir region, terror attacks are unusual in Punjab. In decades past, it has been a hotbed of separatist—and at times violent—activity led by Indian Sikhs, though this movement—which many Indian commentators believe is supported by Pakistan’s intelligence service—has been quiet in recent years (grievances of the past, however, remain entrenched, I was told repeatedly while in Punjab last year). Some Indian commentators have questioned whether Monday’s attack marks a “revival” of the movement. Others wonder if Pakistani terrorists are simply opening new fronts beyond Kashmir.

If India concludes that the attack originated in Pakistan, the subcontinent could be in for some very turbulent times. Mr. Modi is not likely to be as restrained in the face of Pakistani provocations as his predecessor Manmohan Singh was.

Whoever was behind the attack, Monday’s death toll reminds us that amid talk of al Qaeda affiliates and Islamic State wreaking havoc across the Middle East and North Africa, South Asia’s subcontinent remains a dangerous–and nuclear-armed—place.

via Why the Punjab Police Station Attack Was Waiting to Happen – India Real Time – WSJ.

29/07/2015

GIFT, the Indian Smart City That Would Cost $23,500 a Person – India Real Time – WSJ

Two 29-story steel-and-glass office buildings rise above a dusty wasteland in the Indian state of Gujarat, the most conspicuous sign of progress on an ambitious project conceived by the man who is now India’s prime minister, Narendra Modi.

More than seven years ago, Mr. Modi, at the time the state’s top elected official, decided to push the construction of an entirely new city—dubbed the Gujarat International Finance Tec-City, or GIFT—about a 40-minute drive from Ahmedabad, the historic commercial hub here.

More In Smart Cities

Is India Ready for Narendra Modi’s ‘Smart Cities’?

The if-you-build-it-they-will-come idea was to create a magnet for banks, securities firms and information-technology companies akin to Canary Wharf in London or La Defense outside Paris. But construction work has moved slowly and few private enterprises have signed up. Of the two office towers, the first is about 50% occupied and the second one is empty.

Critics say the undertaking’s halting progress is a cautionary tale as Mr. Modi’s federal administration moves ahead with plans for 100 “smart cities,” which, among other things, would use technology to improve public services such as waste disposal and save energy.

Ramakant Jha, managing director of the company building the city, says that offices and retail stores and other businesses at GIFT will help create one million direct and indirect jobs. The city will also have homes, allowing employees to walk to work, and social infrastructure like a school, hospital and malls.

With central air-conditioning in all buildings, filtered tap water and municipal waste collection (a rarity in urban India), GIFT, as planners envision it, would be far more advanced than existing Indian cities.

But all this comes at a cost. If 100,000 people live in a city, the cost of building the city’s infrastructure comes to around $23,500 per person. In comparison, India’s gross national income per capita is around $1,600, according to the World Bank.

via GIFT, the Indian Smart City That Would Cost $23,500 a Person – India Real Time – WSJ.

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