Chindia Alert: You’ll be Living in their World Very Soon
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The plight of these workers, many of whom have been walking for days without adequate food and water, has caused widespread anger in the country.
Train and bus services were shut during the lockdown and even though some have been restarted for migrants, many say they cannot afford the fare and are unsure if they will be accommodated on them due to social distancing norms.
Several have died in making the journey, including 16 migrants who were run over by a train while they were sleeping on the railway tracks.
Media caption Coronavirus: Heartbreaking scenes as India lockdown sparks mass migration
Ms Sitharaman also announced that workers would be able to use ration cards – usually only valid at village level – anywhere in the country regardless of where it was issued.
The ration cards usually entitle holders to subsidised food.
She added that the move towards portable cards would benefit nearly 670 million people and will be completed by March next year.
The government will also provide affordable housing for migrant labour by converting existing vacant government funded housing complexes, among other things.
The announcements on Thursday – the second tranche of a series of economic stimulus measures – were aimed at migrant workers, street hawkers, small traders and small farmers.
The full details of the economic package, which is equivalent to 10% of India’s gross domestic product, will be known in some days as the government is announcing a different tranche every day.
Ms Sitharaman’s announcements also included details of “special credit” to be provided to five million street hawkers who have been forced to cease working over the last month and a half.
To help farmers, the government also announced an emergency $4bn “working capital funding” which would benefit some 30 million small farmers to meet crop requirements in May and June
In March, India said it would provide around 1.7 trillion rupees in direct cash transfers and food security measures, mainly for the poor.
However, Mr Modi’s administration had been accused in some quarters of not having done enough.
US$2 trillion rescue package passes US Senate, heads to House
Malaysia’s king and queen in ‘self-quarantine’ after staff test positive
Police commandos in Sri Lanka hand out food to homeless people during a nationwide curfew against the spread of coronavirus. Photo: AFP
More than three billion people are living under lockdown measures as soaring death tolls in Europe and the US underlined a United Nations warning that the coronavirus, which has now infected nearly half a million people globally, threatens all of humanity.
The global death toll from the virus now stands at more than 21,000, with Spain joining Italy in seeing its number of fatalities overtake China, where the virus first emerged just three months ago.
“Covid-19 is threatening the whole of humanity – and the whole of humanity must fight back,” UN Secretary General Antonio Guterres said, launching an appeal for US$2 billion to help the world’s poor.
“Global action and solidarity are crucial. Individual country responses are not going to be enough.”
The G20 major economies will hold an emergency videoconference on Thursday to discuss a global response to the crisis, as will the 27 leaders of the European Union, the outbreak’s new epicentre.
The economic damage of the virus – and the lockdowns – could also be devastating, with fears of a worldwide recession worse than the financial meltdown more than a decade ago.
Here are the developments:
US$2 trillion rescue package passes US Senate
The US Senate passed the nation’s largest-ever rescue package late Wednesday, a US$2 trillion lifeline to suffering Americans, depleted hospitals and an economy all ravaged by a rapidly spreading coronavirus crisis.
The monster deal thrashed out between Republicans, Democrats and the White House includes cash payments to American taxpayers and several hundred billion dollars in grants and loans to small businesses and core industries. It also buttresses hospitals desperately in need of medical equipment and expands unemployment benefits.
The measure cleared the Senate by an overwhelming majority and was headed next to the House of Representatives, which must also pass it before it goes to President Donald Trump for his signature.
US President Donald Trump has voiced hope the US will be “raring to go” by mid-April, but his optimism appeared to stand almost alone among world leaders.
Unemployment benefit filings by Americans workers to surge to 3.3 million last week – the highest number ever recorded, the Labour Department reported on Thursday.
The normally routine report is at the front lines of the economic crisis caused by the outbreak, which has forced widespread closures of restaurants, shops and hotels, and brought airline travel to a virtual halt, prompting the stunning increase in people filing for benefits nationwide in the week ending March 21.
Nearly every state cited Covid-19 for the jump in initial jobless claims, with heavy impacts in food services, accommodation, entertainment and recreation, health care and transport, the report said.
Malaysia’s king and queen in quarantine after staff test positive
The official residence of Malaysia’s monarchy on Thursday confirmed seven of its staff have tested positive for Covid-19 and are currently receiving treatment at the Kuala Lumpur Hospital.
Malaysia’s king, Sultan Abdullah Sultan Ahmad Shah and queen, Tunku Azizah, have also been tested, but their results showed a clean bill of health, a spokesman for the Istana Negara said in a statement.
“Nevertheless, Their Majesties are now observing a 14-day self-quarantine, starting yesterday, ” he said.
Meanwhile, Prime Minister Muhyiddin Yassin, along with all federal ministers and their deputies, announced they will take a two-month pay cut, with the savings to be donated to Putrajaya’s Covid-19 fund.
The Prime Minister’s Office said the decision was made during a cabinet meeting and showed the government’s sincerity in helping those affected by the pandemic.
“The Covid-19 fund was launched on March 11 as part of the government’s efforts to help those who were affected by the disease outbreak,” the office said, adding that 8.5 million ringgit (US$1.97 million) has been collected, including government grants.
Malaysia on Wednesday announced a two-week extension of a national lockdown as part of stepped-up measures to contain the coronavirus outbreak.
The “movement control order,” which requires people to stay home and was originally set to expire on March 31, will now continue until April 14.
Moscow monitors people in coronavirus quarantine with 100,000 ‘under the skin’ surveillance cameras
Russia to ground international flights
Russia will halt all international flights from midnight on Friday under a government decree listing new measures against the coronavirus outbreak.
The decree published on Thursday orders aviation authorities to halt all regular and charter flights, with the exception of special flights evacuating Russian citizens from abroad.
The announcement came after Russia on Wednesday recorded its biggest daily spike in confirmed coronavirus infections so far, with 163 new cases for a total of 658 across the country.
Denis Protsenko, head doctor of Moscow’s new hospital treating coronavirus patients, told President Vladimir Putin that Russia needed to be ready for an “Italian scenario”, referring to what is now the hardest-hit country in the world in terms of deaths.
Singapore boosts stimulus package to 11 per cent of GDP
Singapore reported 52 new coronavirus cases on Thursday, taking its tally to 683 infections.
The health ministry said that out of the 52, 28 were imported while 24 were locally transmitted.
Drawing on national reserves for the first time since the global financial crisis to support an economy heading for recession, the additional spending will push up the government’s virus-related relief to almost S$55 billion, or 11 per cent of gross domestic product, Finance Minister Heng Swee Keat said in a speech in parliament Thursday. It also will widen the budget deficit for the financial year starting April 1 to 7.9 per cent of GDP, from a previous target of 2.1 per cent.
“This extraordinary situation calls for extraordinary measures,” Heng said. “We have saved up for a rainy day. The Covid-19 pandemic is already a mighty storm, and is still growing.”
Coronavirus: Italy’s slowing infection rate boosts case for lockdowns
26 Mar 2020
‘If you catch it, don’t spread it to others’, 1949 flu advice still applies to coronavirus pandemic
Imported cases rise in China
Mainland China reported a second consecutive day of no new local coronavirus infections as the epicentre of the epidemic Hubei province opened its borders, but imported cases rose as Beijing ramped up controls to prevent a resurgence of infections.
A total of 67 new cases were reported as of end-Wednesday, up from 47 a day earlier, all of which were imported, China’s National Health Commission said in a statement on Thursday.
The total number of cases now stands at 81,285.
The commission reported a total of 3,287 deaths at the end of Wednesday, up six from the previous day.
All of the new patients were travellers who came to China from overseas, with the mainland reporting no locally transmitted infections on Wednesday.
Fearing a new wave of infections from imported cases, authorities have ramped up quarantine and screening measures in other major cities including Beijing, where any travellers arriving from overseas must submit to centralised quarantine.
Coronavirus could become seasonal
There is a strong chance the new coronavirus could return in seasonal cycles, a senior US scientist said Wednesday, underscoring the urgent need to find a vaccine and effective treatments.
Anthony Fauci, who leads research into infectious diseases at the National Institutes of Health, told a briefing the virus was beginning to take root in the southern hemisphere, where winter is on its way.
“What we’re starting to see now … in southern Africa and in the southern hemisphere countries, is that we’re having cases that are appearing as they go into their winter season,” he said.
“And if, in fact, they have a substantial outbreak, it will be inevitable that we need to be prepared that we’ll get a cycle around the second time.
“It totally emphasises the need to do what we’re doing in developing a vaccine, testing it quickly and trying to get it ready so that we’ll have a vaccine available for that next cycle.”
There are currently two vaccines that have entered human trials -one in the US and one in China – and they could be a year to a year-and-a-half away from deployment.
British Columbia is testing for Covid-19 faster per head than South Korea
27 Mar 2020
Spain extends emergency by two weeks
Spain’s parliament has voted in favour of the government’s request to extend the state of emergency by two weeks that has allowed it to apply a national lockdown in hopes of stemming its coronavirus outbreak.
The parliamentary endorsement will allow the government to extend the strict stay-at-home rules and business closings for a full month. The government declared a state of emergency on March 14. It will now last until April 11.
Spain’s government solicited the two-week extension after deaths and infections from the Covid-19 virus have skyrocketed in recent days. Spain 47,600 total cases. Its 3,434 deaths only trail Italy’s death toll as the hardest-hit countries in the world.
The parliament met with fewer than 50 of its 350 members in the chamber, with the rest voting from home to reduce the risk of contagion.
Greece locks down Muslim towns
Greek authorities have quarantined a cluster of Muslim-majority towns and villages in the country’s northeast after several cases and a death from the new coronavirus in the area.
The area in Xanthi prefecture was placed in lockdown as of Wednesday evening as nine people in the region overall have tested positive for the virus over the past six days, civil protection deputy minister Nikos Hardalias told reporters.
“All residents have been temporarily confined at home. No exceptions are allowed,” Hardalias said.
The centre of the outbreak appears to be the small Pomak town of Ehinos, a community of about 2,500.
“Ehinos residents will be provided with food and medicine,” Hardalias said.
Police were deployed on Thursday on a bridge leading into town to enforce the lockdown, television footage showed.
One 72-year-old Ehinos man has died from the virus, local mayor Ridvan Deli Huseyin told Antenna television.
“It’s better to take some measures now than to cry about this later,” said Huseyin, the mayor of the local administrative centre of Miki.
The Pomaks are a Muslim group of Slavic origin who live mainly in neighbouring Bulgaria.
They make up part of Greece’s roughly 110,000-strong Muslim minority in the country’s northeast bordering Turkey.
Many of them work as migrant industrial workers in other European countries.
Economy seats go for business-class fares as travellers flee
27 Mar 2020
Colombia goes into lockdown, Chile extends schools closures
Countries across Latin America tightened measures on Wednesday to halt the spread of the deadly novel coronavirus, with more lockdowns, border closings and school closures as well as increased aid to the region’s poorest.
As cases of Covid-19 cases continue to rise – more than 7,400 and 123 deaths up to now – Bolivia and Colombia became the latest countries to impose a total lockdown, while Chile extended its schools closures until the end of April.
Brazil’s President Jair Bolsonaro has warned of possible “chaos” and the “looting” of supermarkets if state shutdowns ordered by the governors of Sao Paulo and Rio de Janeiro aren’t ended.
Bolsonaro, who has repeatedly scoffed at the severity of the deadly pandemic, had previously criticised the closing of schools and businesses in Sao Paulo and Rio states, two of the country’s most populous states.
Germany ramps up testing, approves huge bailout
Germany has boosted its coronavirus test rate to 500,000 a week, Christian Drosten, who heads the Institute of Virology at Berlin’s Charite University Hospital, said on Thursday, adding that early detection has been key in keeping the country’s death rate relatively low.
Drosten also highlighted Germany’s dense network of laboratories spread across its territory as a factor contributing to early detection.
The news came after Chancellor Angela Merkel’s government secured emergency spending, unlocking a historic rescue package designed to cushion the blow of the coronavirus pandemic.
A majority of lawmakers in the Bundestag voted on Wednesday to allow additional borrowing to combat the crisis, according to the legislature’s president. The Bundesrat, or upper house of parliament, will vote on Friday.
The extraordinary authorisation is part of a packet of legislation aimed at protecting German jobs and businesses. The new borrowing of €€156 billion (US$169 billion) is equivalent to half of the country’s normal annual spending.
The country, which tightened lockdown measures this week, has about 32,700 cases and more than 150 deaths.
Trump and Widodo back chloroquine treatment, but fake news is deadly
25 Mar 2020
Ukraine declares ‘emergency situation’
Ukraine on Wednesday declared a month-long “emergency situation” to slow the coronavirus outbreak, as the number of confirmed cases jumped to 113.
Ukraine has already closed schools, universities and public spaces to stem the spread of the disease, but the measures were due to expire at the beginning of April.
The emergency situation announced on Wednesday effectively extends existing measures for 30 days until April 24, a government spokesperson said.
“We are extending quarantine and imposing an emergency situation in Ukraine,” Prime Minister Denys Shmygal said.
Unlike an official state of emergency, the initiative announced by the prime minister does not have to be rubber stamped by both the parliament and president. Ukraine has confirmed 113 cases of Covid-19 and four deaths, according to official statistics.
Prince Charles tests positive for coronavirus
Mexican governor says poor are ‘immune’
The governor of a state in central Mexico is arguing that the poor are “immune” to the new coronavirus, even as the federal government suspends all non-essential government activities beginning Thursday in a bid to prevent the spread of the virus.
Puebla Governor Miguel Barbosa’s comment on Wednesday was apparently partly a response to indications that the wealthy have made up a significant percentage of Mexicans infected to date, including some prominent business executives.
Officials say three-quarters of Mexico’s 475 confirmed cases are related to international travel, and the poor do not make many international trips. Some people apparently caught the virus on ski trips to Italy or the United States. The country has seen six deaths so far.
“The majority are wealthy people. If you are rich, you are at risk. If you are poor, no,” Barbosa said of the coronavirus. “We poor people, we are immune.”
Barbosa also appeared to be playing on an old stereotype held by some Mexicans that poor sanitation standards may have strengthened their immune systems by exposing them to bacteria or other bugs.
There is no scientific evidence to suggest the poor are in any way immune to the virus that is causing Covid-19 disease around the world.
No agreement on ‘Wuhan virus’ name as G7 spars over infection source
26 Mar 2020
Japan belatedly bans entry from Europe, Iran
Japanese Prime Minister Shinzo Abe has established a task force under the country’s revised emergency law to deal with the global rise in coronavirus infections and deaths.
In Tokyo on Thursday, Abe said it was necessary for people to act as one to overcome what can be described as a national crisis.
Japan will ban entry from 21 European countries as well as Iran, to take effect from Friday, he added.
The country has already begun asking visitors and its nationals arriving from some countries in Southeast Asia, the Middle East and Africa to self-quarantine for 14 days.
Arrivals from a total of seven Southeast Asian countries and four in the Middle East and Africa are also asked to refrain from using public transport.
Similar steps are in place for visitors from China, South Korea, most of Europe and the United States.
Malaysia to lock down two communities to curb spread
Malaysia on Thursday announced that 3,570 residents in two communities in the country’s south will be placed under complete lockdown due to their high coronavirus infection rates.
Defence Minister Ismail Sabri Yaakob said in a statement that the residents in Kluang district of Johor state are banned from leaving home for two weeks beginning Friday, to enable the health authorities to conduct door-to-door screening.
The tough measure was taken after 73 per cent of the 83 infection cases found in the district were traced to the two small communities of Kampung Dato Ibrahim Majid and Bandar Baru Dato Ibrahim Majid.
Ismail said the residents cannot leave home, not even to buy food, as the welfare department will supply them with two weeks’ worth of food. All businesses must close and all access into the two areas will be sealed. The police and army have been deployed to ensure compliance.
The Australian government scrapped a time limit on haircuts following a backlash.
The government had imposed a rule on hairdressers and barbers on Tuesday that haircuts should take less than 30 minutes, as part of social distancing restrictions to deal with the coronavirus outbreak.
The restriction put around 40,000 hairdressers at risk, the Australian Hairdressing Council said in response.
“This decision is outrageous,” the council’s chief executive Sandy Chong said in a statement.
“Whilst many barbers can do a male haircut within that time frame, it really isn’t feasible for a majority of hairdressing salons.”
Australian Prime Minister Scott Morrison issued a statement Thursday saying the policy would be reversed with immediate effect.
But salons and barbers must still strictly observe new rules that there may only be one person per four square metres within the premises, Morrison said.
India unveils US$22.6 billion stimulus package
India’s government announced a 1.7 trillion rupee (US$22.6 billion) stimulus package, as it stepped up its response to the coronavirus pandemic.
The measures will include cash transfers as well as steps on food security, Finance Minister Nirmala Sitharaman said in New Delhi on Thursday, adding that the package will benefit migrant workers.
Asia’s third-largest economy joins countries from the US to Germany that have pledged spending to contain the economic fallout of the pandemic. India is on a total lockdown for three weeks from Wednesday in the world’s biggest isolation effort, as Prime Minister Narendra Modi seeks to prevent the virus from spreading locally.
The government will also provide an insurance cover of 5 million rupees to medical workers, Sitharaman said.
Image copyright GETTY IMAGESImage caption Many Indians face losing their income and some say they could starve
India has announced a $22bn (£19bn) bailout for the country’s poor to help counter the economic effects of the Covid-19 outbreak.
“We don’t want anyone to remain hungry, and we don’t want anyone to remain without money in their hands,” finance minister Nirmala Sitharaman said.
The package, which includes free food and cash transfers, was for “those who need immediate help”, she said.
She also said health workers would get medical insurance of up to $66,500.
Correspondents point out that this amounts to just 1% of India’s GDP – in stark contrast to the US and Singapore which are spending about 10% of their GDP on similar packages.
However, this could be just stage one, with similar packages set to be announced later, they added.
India’s economy was already in the midst of a severe slowdown before the country went into lockdown, shutting workplaces, factories and affecting millions of daily-wage and informal workers.
They form India’s vast informal sector, which constitutes a large part of its workforce. The lockdown and social distancing have left many of them with no viable means of getting any income, and many have expressed fears that they could starve.
Growth had slumped to 4.7% last month – the slowest pace in years – as a steep drop in manufacturing affected overall economic health.
Barclays said the total shutdown cost to India would be around $120bn, or 4% of the country’s GDP.
Ms Sitharaman, who is also the head of an economic task force announced by the prime minister, said that workers under an employment guarantee scheme would get a wage increment, and that recipients of other welfare schemes would also get benefits, like free gas cylinders instead of just subsidised ones.
NEW DELHI (Reuters) – India sought to boost growth in a federal budget on Saturday that raised spending on farms and expressways and offered cuts inpersonal taxes, but the measures fell short of market expectations and battered stocks.
Prime Minister Narendra Modi’s government is grappling with the country’s worst slowdown in a decade, with falling employment, consumption and investment ratcheting up the pressure to revive growth.
The government estimates growth this year to March 31 will slip to 5%, the weakest pace since the global financial crisis of 2008-09. It also warned an expected rebound the following year might entail a blow-out in fiscal deficit targets.
Finance Minister Nirmala Sitharaman, presenting the budget for the financial year beginning April 1, said 2.83 trillion rupees ($39.8 billion) will be allocated toward agriculture and allied activities, up 5.6 percent on the previous year.
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The funds will be deployed to help farmers set up solar power generation units as well as establish a national cold storage system to transport perishables.
Sitharaman also vowed to spend $50.7 billion in coming years on a federal water scheme to address challenges facing one of the world’s most water-stressed nations.
Agriculture accounts for near 15% of India’s $2.8 trillion economy and is a source of livelihood for more than half of the country’s 1.3 billion population.
Sitharaman announced a new personal tax system including cuts for those ready to give up a myriad of tax breaks. She also abolished payment of dividend distribution tax by companies to spur investment.
“People have reposed faith in our economic policy,” Sitharaman said to the thumping of desks in parliament. “This is a budget to boost their income and enhance their purchasing power.”
Opposition parties slammed the budget, saying it had failed to address the slowdown in consumer demand and investment. “The government is in complete denial that the economy faces a grave macro economic challenge,” said former finance minister P. Chidambaram.
But higher government spending has put pressure on public finances, prompting caution from rating agencies. Sitharaman said the fiscal deficit for the current year would widen to 3.8% of GDP, up from 3.3% targeted for the current year.
Gene Fang, associate managing director, sovereign risk at Moody’s, said: “India’s 2020/21 budget highlights the challenges to fiscal consolidation from slower real and nominal growth, which may continue for longer than the government forecasts.”
GOVERNMENT SPENDING
For fiscal 2020/21 Sitharaman set the fiscal deficit at 3.5 percent. Moody’s said India’s government debt is already significantly higher than the average for Baa-rated sovereigns, a product of persistent fiscal deficits.
To help finance government spending, Sitharaman set a target for selling stakes in state firms at 2.1 trillion rupees for 2020/21, more than three times the amount expected this year.
She said the government will sell a part of its holding in state-run Life Insurance Corp, the country’s biggest insurance company.
But many experts said the measures did not go far enough to address the slowdown and structural flaws.
“In a normal scenario this budget would have been considered as good providing tax benefit to the common man, corporate and focus on farmers’ incomes, but the situation required more,” said Vinod Nair, head of research at Geojit Financial Services in Kochi.
Indian shares slid to a more than three-month low after a special trading session on Saturday, dented by what analysts said was a lack of sufficient stimulus measures. The NSE Nifty 50 index .NSEI closed 2.5% lower while the benchmark S&P BSE Sensex .BSESN fell 2.4%
“Markets had very high expectations from the budget … these expectations have not been met,” said Deepak Jasani of HDFC Securities.
The government also announced higher duties on a host of imports from walnuts to phone parts. Taxes on imports of pre-assembled printed circuit boards were raised to 20% from 10% and there were new taxes on mobile phones ringers and display panels in a bid to boost local manufacturing.
In its annual economic report released on Friday the government predicted growth would rebound to 6.0% to 6.5% in the fiscal year beginning April 1.
Some economists say global trade tensions and the outbreak of coronavirus in China pose a new risk to economic recovery by hitting cross-border commerce and supply chains.
The Chief Economic Adviser, K Subramanian, disagreed with the idea of industry-specific incentives and argued for structural reforms in land and labour markets. Members of Prime Minister Narendra Modi’s economic advisory council sound inchoate, resorting to social media and opinion editorials to counter one another.
In essence, the quibble among the members of the economic team of Mr Modi and his government is not about whether India is facing an economic slowdown or not, but about how grave the current economic crisis is.
To put all this in context, it was less than just two years ago, in November 2017, that the global ratings agency Moody’s upgraded India’s sovereign ratings – an independent assessment of the creditworthiness of a country – for the first time in 14 years.
Image copyrightGETTY IMAGESImage captionSales of cars and SUVs have slumped to a seven-year low
Justifying the upgrade, Moody’s had then argued that the economy was undergoing dramatic “structural” reforms under Mr Modi.
In the two years since, Moody’s has downgraded its 2019 GDP growth forecast for India thrice – from 7.5% to 7.4% to 6.8% to 6.2%.
The immediate questions that arise now are: is India’s economic condition really that grim and, if yes, how did it deteriorate so rapidly?
To make matters worse, Finance Minister Nirmala Sitharaman presented her first budget recently with some ominous tax proposals that threatened foreign capital flows and dented investor confidence. It sparked criticism and Ms Sitharaman was forced to roll back many of her proposals.
Image copyright GETTY IMAGESImage caption In 2016, India withdrew 85% of all currency notes from the economy
So, it is indeed true that India is facing a sharp economic downturn and severe loss of business confidence.
The alarm over the economic condition is not merely a reflection of a slowdown in GDP growth but also the poor quality of growth.
Private sector investment, the mainstay of sustainable growth in any economy, is at a 15-year low.
In other words, there is almost no investment in new projects by the private sector. The situation is so bad that many Indian industrialists have complained loudly about the state of the economy, the distrust of the government towards businesses and harassment by tax authorities.
But India’s economic slowdown is neither sudden nor a surprise.
Behind the fawning headlines in the press over the past five years about the robustness of India’s growth was a vulnerable economy, straddled with massive bad loans in the financial sector, disguised further by a macroeconomic bonanza from low global oil prices.
India’s largest import is oil and the fortuitous decline in oil prices between 2014 and 2016 added a full percentage point to headline GDP growth, masking the real problems. Confusing luck with skill, the government was callous about fixing the choked financial system.
Media caption What is really happening with India’s economy?
This move destroyed supply chains and impacted agriculture, construction and manufacturing that together account for three-quarters of all employment in the country.
Before the economy could recover from the currency ban shock, the government enacted a transition to a new indirect taxation system of the Goods and Services Tax (GST) in 2017. The GST rollout wasn’t smooth and many small businesses initially struggled to understand it.
Such massive external shocks to the economy, coupled with a reversal in low oil prices, dealt the final blow to the economy. Millions of Indians started to lose their jobs and rural wages remained stagnant. This, in turn, impacted consumption, slowing down the economy sharply.
Not easy
The wobbly state of the economy has also thrown government finances in disarray: tax revenues are much below expectations.
On Monday, the government got a much-needed breather when India’s central bank announced a $24bn (£19bn) one-time payout for the cash-starved government. (This amount is more than the dividend paid by the central bank to the government in all five years of the Congress rule between 2009 and 2014.)
The solutions to the economic crisis are not easy.
Indian industry, fed and fattened with government protection through decades, is once again clamouring for tax cuts and financial incentives.
But it is not clear that such benefits will revive private sector investment and domestic consumption immediately.
For all the hype about the Make in India programme, hailed as the harbinger of the country’s emergence as a manufacturing power, India’s dependence on China for goods has only doubled in the past five years.
India today imports from China the equivalent of 6,000 rupees ($83; £68) worth of goods for every Indian, which has doubled from 3,000 rupees in 2014.
So, India is neither making goods for itself nor for the world.
Image copyright AFPImage caption India’s agrarian crisis is a major stumbling block
Ornamental tax and other fiscal incentives to specific industries are not suddenly going to make Indian manufacturers competitive and stop India’s addiction for affordable Chinese goods. If any, the trade spat between China and the United States only saw countries such as Vietnam and Bangladesh benefit and not India.
More currency or trade tariffs are not the solutions either. The central bank has lowered interest rates and there is some push to lowering the cost of capital for industry. But again, Indian industry will invest more only when demand for goods and services increases. And demand will increase only when wages increase, or there is money in the hands of people.
So, the only immediate solution for India seems to be to boost consumption through a stimulus given directly to people, in the classical Keynesian mould.
Of course, such a stimulus should be combined with reforms to boost business morale and confidence.
In sum, India’s economic picture is not pretty.
It is important for India’s political leadership to see this not-so-pretty picture and not hide behind rose tinted glasses. Prime Minister Modi has a unique electoral mandate to embark on bold moves to truly transform the economy and pull India out of the woods.
Image copyright GETTY IMAGESImage caption Mr Modi said he will not forgive Pragya Thakur
India is in full election mode: voting began on 11 April, and the final ballot will be cast on 19 May with results out on 23 May. Every day, the BBC will be bringing you all the latest updates on the twists and turns of the world’s largest democracy.
What happened?
Indian Prime Minister Narendra Modi has attended first ever press conference at the Bharatiya Janata Party (BJP) head office in Delhi – days before Indians take part in the final stage of voting.
But journalists were left disappointed as he did not take any questions, and instead largely talked about his government’s achievements.
“I have come to thank the country for blessing me. I have seen a lot of ups and downs but the country stayed with me,” he said.
Mr Modi also spoke of his pride in India’s democratic process and said he needs to show the world “how diverse our democracy is”.
Mr Modi was seated next to party president Amit Shah. He said he would not take questions because the press conference was Mr Shah’s.
Earlier, the prime minister said he would “never be able to forgive” those who have “insulted” Mahatma Gandhi.
Mr Modi’s statement comes after controversial Bharatiya Janata Party (BJP) politician Pragya Thakur called Nathuram Godse – the man who assassinated Mahatma Gandhi – a “patriot”.
Ms Thakur apologised after several leaders, including those from the BJP, criticised her.
“Such statements should be condemned. There is no place in society for such comments. She [Ms Thakur] may have apologised, but I will never be able to forgive her,” he said in an interview to News24 TV channel.
Why does this matter?
This is the first time Mr Modi has attended a press conference as prime minister while in India. Most of his press conferences have been on state visits to other countries and often involved little more than reading out an official statement.
He has given some one-on-one interviews to Indian media, though critics say that these have largely been tightly controlled and given to journalists seen as sympathetic to him. However in recent weeks he has given a flurry of interviews to several leading publications and television channels, including those that have been critical of him.
But if people were expecting a complete about-turn in his media policy this time, they would have been disappointed.
This caused some frustration among journalists on Twitter.
Also on Friday, a BJP candidate apologised for calling Gandhi’s killer a patriot
Image copyright GETTY IMAGES
What is happening?
Bharatiya Janata Party (BJP) politician Pragya Thakur has apologised after calling Nathuram Godse – the man who assassinated Mahatma Gandhi – a “patriot”.
Several political parties had criticised her comment and her own party demanded that she should publicly apologise.
“It was my personal opinion. My intention was not to hurt anyone’s sentiments. If I’ve hurt anyone, I do apologise. What Gandhi Ji has done for the country cannot be forgotten. My statement has been twisted by the media,” Ms Thakur said on Thursday evening.
She made the comment after actor-turned politician Kamal Haasan said Godse was India’s first Hindu “extremist” earlier this week.
Why does this matter?
The BJP as well as opposition parties immediately reacted to her comment, which also caused a storm on social media.
BJP spokesperson GVL Narasimha Rao said that the party does not agree with her statement, and asked her to publicly apologise.
The main opposition Congress party demanded an apology from Prime Minister Narendra Modi and said that the BJP should take “punitive action” against Ms Thakur.
Congress spokesperson Randeep Surjewala said that “insulting martyrs is in the BJP DNA” and that the “soul of the nation” has been hurt by her remarks.
Congress party leader Priyanka Gandhi also lashed out at the BJP.
Political analysts also say that her comments have put the BJP in a tough spot, since Mr Modi and BJP president Amit Shah defended their decision to field her as a candidate despite terror charges against her.
Her candidature caused outrage as she is an accused of involvement in a blast that killed seven people and injured 100 others. Ms Thakur denies all charges against her.
However, Ms Thakur’s comments do reflect the views of some right-wing Hindus who support the BJP and have long seen Gandhi as too moderate.
Godse, who shot Gandhi in the chest three times at point-blank range on 30 January 1948, was also an activist with nationalist right-wing groups, including those closely associated with the BJP.
Hindu hardliners in India accuse Gandhi of having betrayed Hindus by being too pro-Muslim, and even for the division of India and the bloodshed that marked Partition, which saw India and Pakistan created after independence from Britain in 1947.
On Thursday, a ruling party candidate called Gandhi’s killer a patriot
What happened?
Controversial Bharatiya Janata Party (BJP) politician Pragya Thakur made headlines again. This time it was for calling Nathuram Godse – the man who assassinated Mahatma Gandhi – a “patriot”.
Her comment was made in response to a statement by southern actor-turned politician Kamal Haasan who had said India’s first “extremist” was a Hindu”, referring to Godse.
His statement, made on Monday, was heavily criticised by the BJP, which accused him of indulging in “divisive politics” and filed a complaint against him with the Election Commission of India.
Why does this matter?
The BJP responded by criticising Ms Thakur and asking her to publicly apologise.
“BJP does not agree with this statement, we condemn it. Party will ask her for clarification, she should apologise publicly for this statement,” party spokesperson GVL Narasimha Rao told reporters.
Image copyright GETTY IMAGES
Ms Thakur has seen her fair share of controversy. Her candidature caused outrage as she is an accused of involvement in a blast that killed seven people and injured 100 others. On 18 April, she said that police officer Hemant Karkare had died in the November 2008 Mumbai terror attacks because she had “cursed” him. She was then banned from campaigning for 72 hours as a result.
A team led by Mr Karkare had arrested her for questioning in connection with the Malegaon blast.
During her campaign, she also said she was “proud” of her part in the demolition of the 16th Century Babri mosque. In 1992, right-wing Hindu mobs razed the mosque to the ground, claiming it was built on the site of a temple destroyed by Muslim rulers. The site, which is in the city of Ayodhya, has been a religious flashpoint for Hindus and Muslims for decades.
Campaigning ended in West Bengal a day before deadline
What happened?
The Election Commission (EC) told political parties to end their campaigning in West Bengal state, a day before the deadline in the wake of poll-related violence.
The campaign will end on Thursday at 10pm local time, and voting will be held on Sunday.
The decision comes after clashes broke out between the Bharatiya Janata Party (BJP) workers and protesters believed to be from the ruling Trinamool Congress (TMC) in Kolkata (formerly Calcutta) on Tuesday.
It happened during a roadshow of BJP chief Amit Shah. Several people were injured and vehicles were set on fire. A statue of renowned Bengali reformer Iswarchandra Vidyasagar was also vandalised in the clashes.
Both parties have accused each other of starting the violence.
Why does this matter?
Image copyright GETTY IMAGESImage caption Violence took place during BJP chief Amit Shah’s rally in Kolkata on Tuesday
The BJP welcomed the decision, saying it validated their argument that the state had “descended into anarchy” under the leadership of chief minister Mamata Banerjee.
Ms Banerjee said that the move was “undemocratic” and “it had insulted the people of Bengal”.
“Tomorrow, [Prime Minister Narendra] Modi has two meetings in Bengal. When he finishes, the campaigning also ends… Instead of punishing Amit Shah, the Election Commission has given a gift to the BJP,” she said.
Image copyright AFPImage caption Several people were injured and vehicles were set on fire during the violence
Both parties are locked into a fierce election battle to win most out West Bengal’s 42 seats. Ms Banerjee has ambitions of becoming the prime minister in case a nationwide coalition of regional parties wins enough seats.
The state has also become crucial for the BJP as it’s trying to expand its reach in the eastern state. It won only two seats in the 2014 election.
The BJP performed well in northern states like Uttar Pradesh and Rajasthan in 2014, but this time it’s expected to suffer loses against a coalition of regional parties and the main opposition Congress.
So the party is trying to make up for the losses in West Bengal.
On Wednesday, the TMC and the BJP accused each other of poll violence
Image copyright GETTY IMAGES
What happened?
The war of words between West Bengal state chief minister Mamata Banerjee and the governing Bharatiya Janata Party (BJP) intensified ahead of voting on Sunday.
The latest verbal duel comes after violence was reported during BJP chief Amit Shah’s roadshow in Kolkata (formerly Calcutta) on Tuesday.
Clashes broke out between BJP supporters and protesters who were holding “Amit Shah go back” posters.
Some people suffered minor injuries and a few vehicles were set on fire.
The BJP said the protest was “orchestrated” and called it an “attempt to strangulate democracy”.
Why does this matter?
The eastern state has become politically crucial for the BJP as it has intensified campaigning in the past few days.
And that has sparked a feverish electoral battle between the BJP and Ms Banerjee’s Trinamool Congress (TMC).
“What does Amit Shah think of himself? Is he above everything? Is he god that no one can protest against him?” Ms Banerjee said.
In reply, Mr Shah accused the TMC of not following democratic norms during elections.
“Have faith in the people of Bengal that they’d face the TMC goons,” he said.
Prime Minister Narendra Modi is scheduled to hold more rallies in the coming days, so one can expect more verbal fireworks from the two leaders.
On Tuesday, the saga of the morphed Mamata meme continued
What happened?
India’s top court stepped in to release an activist belonging to India’s governing Bharatiya Janata Party (BJP) who was sent to prison for sharing a doctored image of West Bengal Chief Minister Mamata Banerjee.
Priyanka Sharma was sentenced to two weeks in prison on 10 May after she shared a picture of Bollywood star Priyanka Chopra and her husband Nick Jonas at the Met Gala – but with Ms Banerjee’s head superimposed on to Chopra’s body.
Earlier the court had said Ms Sharma could be released only if she apologised to Ms Banerjee, but later waived this condition.
Why does this matter?
The battle for West Bengal in this general election has been absolutely bruising.
The BJP, led by Prime Minister Narendra Modi himself, has been campaigning hard for votes in the state. This has brought them toe-to-toe with the state’s feisty chief minister. The fact that voting for West Bengal’s 42 seats has been split across all nine phases of voting has meant that the battle has been long and drawn-out.
And with just one phase to go before voting finally ends, the gloves are well and truly off. The two parties have traded insults on the campaign stage, their workers have attacked each other, and the violence on the ground has intensified. And now the battle has spread to cyberspace as well.
The country’s finance minister Arun Jaitley jumped at news of Ms Sharma’s release to call Ms Banerjee a dictator.
Analysts say that this political row is so bitter because the BJP has clearly identified West Bengal as one of the states where they may be able to make gains this election. This becomes more important for the party in the context of their fight in the politically crucial state of Uttar Pradesh, which sends the most number of MPs (80) to parliament.
They are up against a powerful coalition of regional parties there, and many expect them to lose seats as a result.
And PM Modi said Rahul Gandhi should be ashamed of 1984 riots
What happened?
Prime Minister Narendra Modi said that main opposition Congress party chief Rahul Gandhi should be “ashamed of himself” over his colleague’s remark on the 1984 anti-Sikh riots.
Mr Modi was replying to a controversial statement made by Sam Pitroda, who is a strategist of the Congress party.
In his reply to a question about the Congress’ role in the riots, Mr Pitroda had said “so what?”.
“I don’t think so, this is also another lie, and what about 1984? You speak about what you [Mr Modi] have done in five years. It [the riots] happened in 1984, so what?” he said.
Mr Gandhi said he was “ashamed” of Mr Pitroda’s statement, and asked him to apologise.
Mr Pitroda later said his statement was “twisted” and he did not mean to hurt sentiments.
But Mr Modi said the Congress chief “must apologise”.
“I was watching that naamdar [the dynast] told his guru that he should be ashamed of what he said. I want to ask naamdar, you pretended to scold your mentor for what? Because he exposed what was always in the Congress’s heart, and in the discussions of the naamdar family? Because he made public a family secret? Naamdar, it is you who should be ashamed,” Mr Modi said.
Why does this matter?
The controversy matters because it comes days ahead of voting for the 13 seats in the northern state of Punjab.
The BJP, which has formed a coalition with regional Shiromani Akali Dal, is locked in a bitter electoral battle with the ruling Congress in the state.
Sikhs are a majority in the state and the 1984 riots is still an emotional issue for many of them.
More than 3,000 Sikhs were killed in 1984 after the assassination of former prime minister Indira Gandhi by her Sikh bodyguards.
They were angry at her decision to send the army into the Golden Temple – Sikhism’s holiest shrine – to flush out militants earlier in the year.
The killing of Mrs Gandhi, who belonged to the Congress, saw mobs attack and murder members of the Sikh community across the country.
And both parties appear to be trying to come across as pro-Sikh ahead of the vote on 19 May.
On Sunday, Delhi voted but not enthusiastically
Image copyright GETTY IMAGESImage caption Delhi’s voter turnout was lower than in 2014
What happened?
Sunday saw India’s capital Delhi vote along with several other states in the polls – the penultimate phase of the country’s mammoth general election.
Voters turned out to vote, but in fewer numbers than they did in 2014. The election commission said that around 60% of the capital’s registered voters had actually cast ballots, which was about a five percent drop from 2014.
Delhi Chief Electoral Officer Ranbir Singh expressed disappointment, saying that the turnout did not match expectations.
Why does this matter?
The election commission is right to be disappointed – it had run a series of campaigns in the city, encouraging more people to vote.
But it was not as though polling in Delhi was an entirely smooth process. Some voters complained that their names were missing from electoral lists even though they had all the necessary documents. There were also reports that around 1,200 Electronic Voting Machines (EVMs) had malfunctioned across the city, delaying the polling process.
The fact that Delhi became a three-cornered contest after the main opposition Congress and the Aam Aadmi Party (AAP), which controls the Delhi state assembly, failed to stitch up an alliance may also have put voters off. Many analysts believe that this failure will only split voters who were against prime minister Narendra Modi’s Bharatiya Janata Party (BJP) and effectively hand them victory.
So they may have decided to just stay home, and not bother queuing up in the blistering heat – it touched 40C on Sunday.
India is in full election mode: voting began on 11 April, and the final ballot will be cast on 19 May with results out on 23 May. Every day, the BBC will be bringing you all the latest updates on the twists and turns of the world’s largest democracy.
Ruling party candidate calls Gandhi’s killer a patriot
What is happening?
Controversial Bharatiya Janata Party (BJP) politician Pragya Thakur has made headlines again. This time it was for calling Nathuram Godse – the man who assassinated Mahatma Gandhi – a “patriot”.
Her comment was made in response to a statement by southern actor-turned politician Kamal Haasan who had said India’s first “extremist” was a Hindu”, referring to Godse.
#WATCH BJP Bhopal Lok Sabha Candidate Pragya Singh Thakur says ‘Nathuram Godse was a ‘deshbhakt’, is a ‘deshbhakt’ and will remain a ‘deshbhakt’. People calling him a terrorist should instead look within, such people will be given a befitting reply in these elections
His statement, made on Monday, was heavily criticised by the BJP, which accused him of indulging in “divisive politics” and filed a complaint against him with the Election Commission of India.
Why does this matter?
The BJP has responded by criticising Ms Thakur and asking her to publicly apologise.
“BJP does not agree with this statement, we condemn it. Party will ask her for clarification, she should apologise publicly for this statement,” party spokesperson GVL Narasimha Rao told reporters.
However, Ms Thakur’s comments do reflect the views of some right-wing Hindus who support the BJP and have long seen Gandhi as too moderate.
Godse, who shot Gandhi in the chest three times at point-blank range on 30 January 1948, was also an activist with nationalist right-wing groups, including those closely associated with the BJP.
Hindu hardliners in India accuse Gandhi of having betrayed Hindus by being too pro-Muslim, and even for the division of India and the bloodshed that marked Partition, which saw India and Pakistan created after independence from Britain in 1947.
Ms Thakur has seen her fair share of controversy. Her candidature caused outrage as she is an accused of involvement in a blast that killed seven people and injured 100 others. On 18 April, she said that police officer Hemant Karkare had died in the November 2008 Mumbai terror attacks because she had “cursed” him. She was then banned from campaigning for 72 hours as a result.
A team led by Mr Karkare had arrested her for questioning in connection with the Malegaon blast.
During her campaign, she also said she was “proud” of her part in the demolition of the 16th Century Babri mosque. In 1992, right-wing Hindu mobs razed the mosque to the ground, claiming it was built on the site of a temple destroyed by Muslim rulers. The site, which is in the city of Ayodhya, has been a religious flashpoint for Hindus and Muslims for decades.
Campaigning ends in West Bengal a day before deadline
What happened?
The Election Commission (EC) has told political parties to end their campaigning in West Bengal state, a day before the deadline in the wake of poll-related violence.
The campaign will end on Thursday at 10pm local time, and voting will be held on Sunday.
The decision comes after clashes broke out between the Bharatiya Janata Party (BJP) workers and protesters believed to be from the ruling Trinamool Congress (TMC) in Kolkata (formerly Calcutta) on Tuesday.
It happened during a roadshow of BJP chief Amit Shah. Several people were injured and vehicles were set on fire. A statue of renowned Bengali reformer Iswarchandra Vidyasagar was also vandalised in the clashes.
Both parties have accused each other of starting the violence.
Why does this matter?
Image copyright GETTY IMAGESImage caption Violence took place during BJP chief Amit Shah’s rally in Kolkata on Tuesday
The BJP welcomed the decision, saying it validated their argument that the state had “descended into anarchy” under the leadership of chief minister Mamata Banerjee.
Ms Banerjee said that the move was “undemocratic” and “it had insulted the people of Bengal”.
“Tomorrow, [Prime Minister Narendra] Modi has two meetings in Bengal. When he finishes, the campaigning also ends… Instead of punishing Amit Shah, the Election Commission has given a gift to the BJP,” she said.
Image copyright AFPImage caption Several people were injured and vehicles were set on fire during the violence
Both parties are locked into a fierce election battle to win most out West Bengal’s 42 seats. Ms Banerjee has ambitions of becoming the prime minister in case a nationwide coalition of regional parties wins enough seats.
The state has also become crucial for the BJP as it’s trying to expand its reach in the eastern state. It won only two seats in the 2014 election.
The BJP performed well in northern states like Uttar Pradesh and Rajasthan in 2014, but this time it’s expected to suffer loses against a coalition of regional parties and the main opposition Congress.
So the party is trying to make up for the losses in West Bengal.
TMC, BJP accused each other of poll violence
Image copyright GETTY IMAGES
What happened?
The war of words between West Bengal state chief minister Mamata Banerjee and the governing Bharatiya Janata Party (BJP) intensified ahead of voting on Sunday.
The latest verbal duel comes after violence was reported during BJP chief Amit Shah’s roadshow in Kolkata (formerly Calcutta) on Tuesday.
Clashes broke out between BJP supporters and protesters who were holding “Amit Shah go back” posters.
Some people suffered minor injuries and a few vehicles were set on fire.
The BJP said the protest was “orchestrated” and called it an “attempt to strangulate democracy”.
Why does this matter?
The eastern state has become politically crucial for the BJP as it has intensified campaigning in the past few days.
And that has sparked a feverish electoral battle between the BJP and Ms Banerjee’s Trinamool Congress (TMC).
“What does Amit Shah think of himself? Is he above everything? Is he god that no one can protest against him?” Ms Banerjee said.
In reply, Mr Shah accused the TMC of not following democratic norms during elections.
“Have faith in the people of Bengal that they’d face the TMC goons,” he said.
Prime Minister Narendra Modi is scheduled to hold more rallies in the coming days, so one can expect more verbal fireworks from the two leaders.
On Tuesday, the saga of the morphed Mamata meme continued
What happened?
India’s top court stepped in to release an activist belonging to India’s governing Bharatiya Janata Party (BJP) who was sent to prison for sharing a doctored image of West Bengal Chief Minister Mamata Banerjee.
Priyanka Sharma was sentenced to two weeks in prison on 10 May after she shared a picture of Bollywood star Priyanka Chopra and her husband Nick Jonas at the Met Gala – but with Ms Banerjee’s head superimposed on to Chopra’s body.
Earlier the court had said Ms Sharma could be released only if she apologised to Ms Banerjee, but later waived this condition.
Why does this matter?
The battle for West Bengal in this general election has been absolutely bruising.
The BJP, led by Prime Minister Narendra Modi himself, has been campaigning hard for votes in the state. This has brought them toe-to-toe with the state’s feisty chief minister. The fact that voting for West Bengal’s 42 seats has been split across all nine phases of voting has meant that the battle has been long and drawn-out.
And with just one phase to go before voting finally ends, the gloves are well and truly off. The two parties have traded insults on the campaign stage, their workers have attacked each other, and the violence on the ground has intensified. And now the battle has spread to cyberspace as well.
The country’s finance minister Arun Jaitley jumped at news of Ms Sharma’s release to call Ms Banerjee a dictator.
Humour, wit, sarcasm survive in a free society. They have no place in autocracies. Dictators laugh at people. They don’t like people laughing at them. Bengal, today is a case in point.
Analysts say that this political row is so bitter because the BJP has clearly identified West Bengal as one of the states where they may be able to make gains this election. This becomes more important for the party in the context of their fight in the politically crucial state of Uttar Pradesh, which sends the most number of MPs (80) to parliament.
They are up against a powerful coalition of regional parties there, and many expect them to lose seats as a result.
And PM Modi said Rahul Gandhi should be ashamed of 1984 riots
What happened?
Prime Minister Narendra Modi said that main opposition Congress party chief Rahul Gandhi should be “ashamed of himself” over his colleague’s remark on the 1984 anti-Sikh riots.
Mr Modi was replying to a controversial statement made by Sam Pitroda, who is a strategist of the Congress party.
In his reply to a question about the Congress’ role in the riots, Mr Pitroda had said “so what?”.
“I don’t think so, this is also another lie, and what about 1984? You speak about what you [Mr Modi] have done in five years. It [the riots] happened in 1984, so what?” he said.
Mr Gandhi said he was “ashamed” of Mr Pitroda’s statement, and asked him to apologise.
Mr Pitroda later said his statement was “twisted” and he did not mean to hurt sentiments.
But Mr Modi said the Congress chief “must apologise”.
“I was watching that naamdar [the dynast] told his guru that he should be ashamed of what he said. I want to ask naamdar, you pretended to scold your mentor for what? Because he exposed what was always in the Congress’s heart, and in the discussions of the naamdar family? Because he made public a family secret? Naamdar, it is you who should be ashamed,” Mr Modi said.
Why does this matter?
The controversy matters because it comes days ahead of voting for the 13 seats in the northern state of Punjab.
The BJP, which has formed a coalition with regional Shiromani Akali Dal, is locked in a bitter electoral battle with the ruling Congress in the state.
Sikhs are a majority in the state and the 1984 riots is still an emotional issue for many of them.
More than 3,000 Sikhs were killed in 1984 after the assassination of former prime minister Indira Gandhi by her Sikh bodyguards.
They were angry at her decision to send the army into the Golden Temple – Sikhism’s holiest shrine – to flush out militants earlier in the year.
The killing of Mrs Gandhi, who belonged to the Congress, saw mobs attack and murder members of the Sikh community across the country.
And both parties appear to be trying to come across as pro-Sikh ahead of the vote on 19 May.
On Sunday, Delhi voted but not enthusiastically
Image copyright GETTY IMAGESImage caption Delhi’s voter turnout was lower than in 2014
What happened?
Sunday saw India’s capital Delhi vote along with several other states in the polls – the penultimate phase of the country’s mammoth general election.
Voters turned out to vote, but in fewer numbers than they did in 2014. The election commission said that around 60% of the capital’s registered voters had actually cast ballots, which was about a five percent drop from 2014.
Delhi Chief Electoral Officer Ranbir Singh expressed disappointment, saying that the turnout did not match expectations.
Why does this matter?
The election commission is right to be disappointed – it had run a series of campaigns in the city, encouraging more people to vote.
But it was not as though polling in Delhi was an entirely smooth process. Some voters complained that their names were missing from electoral lists even though they had all the necessary documents. There were also reports that around 1,200 Electronic Voting Machines (EVMs) had malfunctioned across the city, delaying the polling process.
The fact that Delhi became a three-cornered contest after the main opposition Congress and the Aam Aadmi Party (AAP), which controls the Delhi state assembly, failed to stitch up an alliance may also have put voters off. Many analysts believe that this failure will only split voters who were against prime minister Narendra Modi’s Bharatiya Janata Party (BJP) and effectively hand them victory.
So they may have decided to just stay home, and not bother queuing up in the blistering heat – it touched 40C on Sunday.
BEIJING, Jan. 11 (Xinhua) — China is mulling tax reductions on a larger scale this year to bring down the burden on the real economy and improve market confidence, Minister of Finance Liu Kun has said.
Liu said in an interview on Thursday that the tax cut in the pipeline would be inclusive, simple and practical, and be implemented at an early date.
His remarks came on the heels of a new batch of tax breaks for small and micro firms, which comprised of lower tax rates, higher tax thresholds and favorable policies for investors of tech startups.
“Some 17.98 million businesses in China are covered by the inclusive tax reduction, accounting for more than 95 percent of the total corporate taxpayers and with 98 percent of them privately owned,” Liu said.
China will also step up efforts to push forward value-added tax reform for substantive tax cuts, implement special individual income tax deductions, and ease the business burden from social insurance payments, Liu said.
With intensive tax breaks, China is estimated to save a total of 1.3 trillion yuan (nearly 200 billion U.S. dollars) for market entities in 2018, outshining similar moves by any other countries in terms of scale and ratio to GDP.
While persisting in tax cuts, China will take bolder and more effective measures to implement proactive fiscal policy, Liu said.
“The fiscal expenditure will be improved moderately according to the economic situation and demand, and there will be a relatively substantial increase in the issuance of special-purpose local government bonds to support projects under construction and fix shortcomings,” Liu said.
China will make fiscal funds more effective and channel more capital into weak areas including poverty relief, agriculture, innovation and environmental protection, Liu said, adding that the general government spending would be cut by more than 5 percent.
Liu denied concerns about massive stimulus and stressed that the measures were counter-cyclical, aimed to strike a balance between stable growth and risk prevention, and would be more market-oriented and law-based.
China has assigned 1.39 trillion yuan worth of bonds to local governments, which Liu said would be used to finance the development of poor areas and major projects of railways, water conservation and rural revitalization.
Image copyright EPA
CHINDIA ALERT: You'll be living in their world, very soon 
Gandhi killer ‘patriot’ comment by BJP candidate draws outrage
India is in full election mode: voting began on 11 April, and the final ballot will be cast on 19 May with results out on 23 May. Every day, the BBC will be bringing you all the latest updates on the twists and turns of the world’s largest democracy.
Ruling party candidate calls Gandhi’s killer a patriot
What is happening?
Controversial Bharatiya Janata Party (BJP) politician Pragya Thakur has made headlines again. This time it was for calling Nathuram Godse – the man who assassinated Mahatma Gandhi – a “patriot”.
Her comment was made in response to a statement by southern actor-turned politician Kamal Haasan who had said India’s first “extremist” was a Hindu”, referring to Godse.
End of Twitter post by @ANI
His statement, made on Monday, was heavily criticised by the BJP, which accused him of indulging in “divisive politics” and filed a complaint against him with the Election Commission of India.
Why does this matter?
The BJP has responded by criticising Ms Thakur and asking her to publicly apologise.
“BJP does not agree with this statement, we condemn it. Party will ask her for clarification, she should apologise publicly for this statement,” party spokesperson GVL Narasimha Rao told reporters.
However, Ms Thakur’s comments do reflect the views of some right-wing Hindus who support the BJP and have long seen Gandhi as too moderate.
Godse, who shot Gandhi in the chest three times at point-blank range on 30 January 1948, was also an activist with nationalist right-wing groups, including those closely associated with the BJP.
Hindu hardliners in India accuse Gandhi of having betrayed Hindus by being too pro-Muslim, and even for the division of India and the bloodshed that marked Partition, which saw India and Pakistan created after independence from Britain in 1947.
Ms Thakur has seen her fair share of controversy. Her candidature caused outrage as she is an accused of involvement in a blast that killed seven people and injured 100 others. On 18 April, she said that police officer Hemant Karkare had died in the November 2008 Mumbai terror attacks because she had “cursed” him. She was then banned from campaigning for 72 hours as a result.
A team led by Mr Karkare had arrested her for questioning in connection with the Malegaon blast.
During her campaign, she also said she was “proud” of her part in the demolition of the 16th Century Babri mosque. In 1992, right-wing Hindu mobs razed the mosque to the ground, claiming it was built on the site of a temple destroyed by Muslim rulers. The site, which is in the city of Ayodhya, has been a religious flashpoint for Hindus and Muslims for decades.
Campaigning ends in West Bengal a day before deadline
What happened?
The Election Commission (EC) has told political parties to end their campaigning in West Bengal state, a day before the deadline in the wake of poll-related violence.
The campaign will end on Thursday at 10pm local time, and voting will be held on Sunday.
The decision comes after clashes broke out between the Bharatiya Janata Party (BJP) workers and protesters believed to be from the ruling Trinamool Congress (TMC) in Kolkata (formerly Calcutta) on Tuesday.
It happened during a roadshow of BJP chief Amit Shah. Several people were injured and vehicles were set on fire. A statue of renowned Bengali reformer Iswarchandra Vidyasagar was also vandalised in the clashes.
Both parties have accused each other of starting the violence.
Why does this matter?
The BJP welcomed the decision, saying it validated their argument that the state had “descended into anarchy” under the leadership of chief minister Mamata Banerjee.
Ms Banerjee said that the move was “undemocratic” and “it had insulted the people of Bengal”.
“Tomorrow, [Prime Minister Narendra] Modi has two meetings in Bengal. When he finishes, the campaigning also ends… Instead of punishing Amit Shah, the Election Commission has given a gift to the BJP,” she said.
Both parties are locked into a fierce election battle to win most out West Bengal’s 42 seats. Ms Banerjee has ambitions of becoming the prime minister in case a nationwide coalition of regional parties wins enough seats.
The state has also become crucial for the BJP as it’s trying to expand its reach in the eastern state. It won only two seats in the 2014 election.
The BJP performed well in northern states like Uttar Pradesh and Rajasthan in 2014, but this time it’s expected to suffer loses against a coalition of regional parties and the main opposition Congress.
So the party is trying to make up for the losses in West Bengal.
TMC, BJP accused each other of poll violence
What happened?
The war of words between West Bengal state chief minister Mamata Banerjee and the governing Bharatiya Janata Party (BJP) intensified ahead of voting on Sunday.
The latest verbal duel comes after violence was reported during BJP chief Amit Shah’s roadshow in Kolkata (formerly Calcutta) on Tuesday.
Clashes broke out between BJP supporters and protesters who were holding “Amit Shah go back” posters.
Some people suffered minor injuries and a few vehicles were set on fire.
The BJP said the protest was “orchestrated” and called it an “attempt to strangulate democracy”.
Why does this matter?
The eastern state has become politically crucial for the BJP as it has intensified campaigning in the past few days.
And that has sparked a feverish electoral battle between the BJP and Ms Banerjee’s Trinamool Congress (TMC).
“What does Amit Shah think of himself? Is he above everything? Is he god that no one can protest against him?” Ms Banerjee said.
In reply, Mr Shah accused the TMC of not following democratic norms during elections.
“Have faith in the people of Bengal that they’d face the TMC goons,” he said.
Prime Minister Narendra Modi is scheduled to hold more rallies in the coming days, so one can expect more verbal fireworks from the two leaders.
On Tuesday, the saga of the morphed Mamata meme continued
What happened?
India’s top court stepped in to release an activist belonging to India’s governing Bharatiya Janata Party (BJP) who was sent to prison for sharing a doctored image of West Bengal Chief Minister Mamata Banerjee.
Priyanka Sharma was sentenced to two weeks in prison on 10 May after she shared a picture of Bollywood star Priyanka Chopra and her husband Nick Jonas at the Met Gala – but with Ms Banerjee’s head superimposed on to Chopra’s body.
Earlier the court had said Ms Sharma could be released only if she apologised to Ms Banerjee, but later waived this condition.
Why does this matter?
The battle for West Bengal in this general election has been absolutely bruising.
The BJP, led by Prime Minister Narendra Modi himself, has been campaigning hard for votes in the state. This has brought them toe-to-toe with the state’s feisty chief minister. The fact that voting for West Bengal’s 42 seats has been split across all nine phases of voting has meant that the battle has been long and drawn-out.
And with just one phase to go before voting finally ends, the gloves are well and truly off. The two parties have traded insults on the campaign stage, their workers have attacked each other, and the violence on the ground has intensified. And now the battle has spread to cyberspace as well.
The country’s finance minister Arun Jaitley jumped at news of Ms Sharma’s release to call Ms Banerjee a dictator.
End of Twitter post by @arunjaitley
Analysts say that this political row is so bitter because the BJP has clearly identified West Bengal as one of the states where they may be able to make gains this election. This becomes more important for the party in the context of their fight in the politically crucial state of Uttar Pradesh, which sends the most number of MPs (80) to parliament.
They are up against a powerful coalition of regional parties there, and many expect them to lose seats as a result.
And PM Modi said Rahul Gandhi should be ashamed of 1984 riots
What happened?
Prime Minister Narendra Modi said that main opposition Congress party chief Rahul Gandhi should be “ashamed of himself” over his colleague’s remark on the 1984 anti-Sikh riots.
Mr Modi was replying to a controversial statement made by Sam Pitroda, who is a strategist of the Congress party.
In his reply to a question about the Congress’ role in the riots, Mr Pitroda had said “so what?”.
“I don’t think so, this is also another lie, and what about 1984? You speak about what you [Mr Modi] have done in five years. It [the riots] happened in 1984, so what?” he said.
Mr Gandhi said he was “ashamed” of Mr Pitroda’s statement, and asked him to apologise.
Mr Pitroda later said his statement was “twisted” and he did not mean to hurt sentiments.
But Mr Modi said the Congress chief “must apologise”.
“I was watching that naamdar [the dynast] told his guru that he should be ashamed of what he said. I want to ask naamdar, you pretended to scold your mentor for what? Because he exposed what was always in the Congress’s heart, and in the discussions of the naamdar family? Because he made public a family secret? Naamdar, it is you who should be ashamed,” Mr Modi said.
Why does this matter?
The controversy matters because it comes days ahead of voting for the 13 seats in the northern state of Punjab.
The BJP, which has formed a coalition with regional Shiromani Akali Dal, is locked in a bitter electoral battle with the ruling Congress in the state.
Sikhs are a majority in the state and the 1984 riots is still an emotional issue for many of them.
More than 3,000 Sikhs were killed in 1984 after the assassination of former prime minister Indira Gandhi by her Sikh bodyguards.
They were angry at her decision to send the army into the Golden Temple – Sikhism’s holiest shrine – to flush out militants earlier in the year.
The killing of Mrs Gandhi, who belonged to the Congress, saw mobs attack and murder members of the Sikh community across the country.
And both parties appear to be trying to come across as pro-Sikh ahead of the vote on 19 May.
On Sunday, Delhi voted but not enthusiastically
What happened?
Sunday saw India’s capital Delhi vote along with several other states in the polls – the penultimate phase of the country’s mammoth general election.
Voters turned out to vote, but in fewer numbers than they did in 2014. The election commission said that around 60% of the capital’s registered voters had actually cast ballots, which was about a five percent drop from 2014.
Delhi Chief Electoral Officer Ranbir Singh expressed disappointment, saying that the turnout did not match expectations.
Why does this matter?
The election commission is right to be disappointed – it had run a series of campaigns in the city, encouraging more people to vote.
But it was not as though polling in Delhi was an entirely smooth process. Some voters complained that their names were missing from electoral lists even though they had all the necessary documents. There were also reports that around 1,200 Electronic Voting Machines (EVMs) had malfunctioned across the city, delaying the polling process.
The fact that Delhi became a three-cornered contest after the main opposition Congress and the Aam Aadmi Party (AAP), which controls the Delhi state assembly, failed to stitch up an alliance may also have put voters off. Many analysts believe that this failure will only split voters who were against prime minister Narendra Modi’s Bharatiya Janata Party (BJP) and effectively hand them victory.
So they may have decided to just stay home, and not bother queuing up in the blistering heat – it touched 40C on Sunday.
Source: The BBC
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