Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
The PAGEs (see Tabs, above) attempt to make the information more meaningful by putting some structure to the information we have researched and assembled since 2006.
LONDON (Reuters) – The United Kingdom’s COVID-19 death toll surpassed 47,000 on Tuesday, a dire human cost that could define the premiership of Boris Johnson.
The Office for National Statistics said 42,173 people had died in England and Wales with suspected COVID-19 as of May 15, bringing the UK total to 47,343 – which includes earlier data from Scotland, Northern Ireland, plus recent hospital deaths in England.
A death toll of nearly 50,000 underlined Britain’s status as one of the worst-hit countries in a pandemic that has killed at least 345,400 worldwide.
Johnson, already under fire for his handling of the pandemic, has had to defend his top adviser Dominic Cummings who drove 250 miles from London to access childcare when Britons were being told to stay at home to fight COVID-19.
One Johnson’s junior ministers, Douglas Ross, resigned on Tuesday in protest. Johnson has stood by Cummings, saying the aide had followed the “instincts of every father”.
The government says that while it may have made some mistakes it is grappling with the biggest public health crisis since the 1918 influenza outbreak and that it has ensured the health service was not overwhelmed.
Unlike the daily death toll published by the government, Tuesday’s figures include suspected cases and confirmed cases of COVID-19, the respiratory disease caused by the novel coronavirus.
But even these figures underestimate the true number of deaths.
In March, Britain’s chief scientific adviser said keeping deaths below 20,000 would be a “good outcome”. In April, Reuters reported the government’s worst-case scenario was 50,000 deaths.
Disease experts are watching the total number of deaths that exceed the usual for amount for the time of year, an approach that is internationally comparable.
The early signs suggest Britain is faring badly here too.
Excess deaths are now approaching 60,000 across the UK, ONS statistician Nick Stripe said, citing the latest data – a toll equivalent to the populations of historic cities like Canterbury and Hereford.
SYDNEY (Reuters) – The Australian government said on Friday it would meet a week ahead of schedule to decide whether to ease social distancing restrictions, as the numbers of new coronavirus infections dwindle and pressure mounts for business and schools to reopen.
Australia has reported about 6,700 cases of the new coronavirus and 93 deaths, well below the levels reported in the United States and Europe. Growth in new infections has slowed to less 0.5% a day, compared to 25% a month ago.
Prime Minister Scott Morrison said it was imperative to lift social distancing restrictions as early as possible as 1.5 million people were now on unemployment benefits and the government forecast the unemployment rate to top 10% within months.
“We need to restart our economy, we need to restart our society. We can’t keep Australia under the doona,” Morrison said, using an Australian word for quilt.
Morrison’s government has pledged spending of more than 10% of GDP to boost the economy but the central bank still warns the country is heading for its worst contraction since the 1930s.
With less than 20 new coronavirus cases discovered each day, Morrison said state and territory lawmakers would meet on May 8 – a week earlier than expected – to determine whether to lift restrictions.
“Australians deserve an early mark for the work that they have done,” Morrison told reporters in Canberra.
Australia attributes its success in slowing the spread of COVID-19 to social distancing restrictions imposed in April, including the forced closures of pubs, restaurants and limiting the size of indoor and outdoor gatherings.
Morrison said 3.5 million people had downloaded an app on their smartphones designed to help medics trace people potentially exposed to the virus, though the government is hoping for about 40% of the country’s 25.7 million population to sign up to ensure it is effective.
Cabinet will also decide next week how to restart sport across the country, the prime minister said.
The government says any resumption of sport should not compromise the public health, and recommends a staggered start beginning with small groups that play non-contact contact sport outdoors.
The recommendations suggests Australia’s National Rugby League (NRL) competition may not get permission to restart its competition as soon as many in the sports-mad country would like.
WASHINGTON (Reuters) – President Donald Trump said on Wednesday he believes China’s handling of the coronavirus is proof that Beijing “will do anything they can” to make him lose his re-election bid in November.
In an interview with Reuters in the Oval Office, Trump talked tough on China and said he was looking at different options in terms of consequences for Beijing over the virus. “I can do a lot,” he said.
Trump has been heaping blame on China for a global pandemic that has killed at least 60,000 people in the United States according to a Reuters tally, and thrown the U.S. economy into a deep recession, putting in jeopardy his hopes for another four-year term.
The Republican president, often accused of not acting early enough to prepare the United States for the spread of the virus, said he believed China should have been more active in letting the world know about the coronavirus much sooner.
Asked whether he was considering the use of tariffs or even debt write-offs for China, Trump would not offer specifics. “There are many things I can do,” he said. “We’re looking for what happened.”
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“China will do anything they can to have me lose this race,” said Trump. He said he believes Beijing wants his Democratic opponent, Joe Biden, to win the race to ease the pressure Trump has placed on China over trade and other issues.
“They’re constantly using public relations to try to make it like they’re innocent parties,” he said of Chinese officials.
He said the trade deal that he concluded with Chinese President Xi Jinping aimed at reducing chronic U.S. trade deficits with China had been “upset very badly” by the economic fallout from the virus.
A senior Trump administration official, speaking on condition of anonymity, said on Wednesday that an informal “truce” in the war of words that Trump and Xi essentially agreed to in a phone call in late March now appeared to be over.
The two leaders had promised that their governments would do everything possible to cooperate to contain the coronavirus. In recent days, Washington and Beijing have traded increasingly bitter recriminations over the origin of the virus and the response to it.
However, Trump and his top aides, while stepping up their anti-China rhetoric, have stopped short of directly criticizing Xi, who the U.S. president has repeatedly called his “friend.”
Trump also said South Korea has agreed to pay the United States more money for a defense cooperation agreement but would not be drawn out on how much.
“We can make a deal. They want to make a deal,” Trump said. “They’ve agreed to pay a lot of money. They’re paying a lot more money than they did when I got here” in January 2017.
The United States stations roughly 28,500 troops in South Korea, a legacy of the 1950-53 Korean War that ended in an armistice, rather than a peace treaty.
Trump is leading a triage effort to try to keep the U.S. economy afloat through stimulus payments to individuals and companies while nudging state governors to carefully reopen their states as new infections decline.
Trump sounded wistful about the strong economy that he had enjoyed compared with now, when millions of people have lost their jobs and GDP is faltering.
“We were rocking before this happened. We had the greatest economy in history,” he said.
He said he is happy with the way many governors are operating under the strain of the virus but said some need to improve. He would not name names.
Trump’s handling of the virus has come under scrutiny. Forty-three percent of Americans approved of Trump’s handling of the coronavirus, according to the Reuters/Ipsos poll from April 27-28.
But there was some good coronavirus news, as Gilead Sciences Inc said its experimental antiviral drug remdesivir was showing progress in treating virus victims.
Trump has also seeking an accelerated timetable on development of a vaccine.
“I think things are moving along very nicely,” he said.
At the end of the half-hour interview, Trump offered lighthearted remarks about a newly released Navy video purportedly showing an unidentified flying object.
“I just wonder if it’s real,” he said. “That’s a hell of a video.”
Hardline politicians want president to fulfil promise to overhaul constitution to reflect the self-ruled island’s political reality
A petition calls for two referendums on the issue – proposing it either be replaced with a new one or revised
The push for constitutional change could lead to a cross-strait conflict. Photo: Handout
Taiwanese President Tsai Ing-wen is under growing pressure from the hardline camp to push for constitutional change to reflect the self-ruled island’s independent status – something observers say could provoke a cross-strait conflict.
With Tsai due to be sworn in for a second four-year term next month after a landslide victory in January’s election, hardline pro-independence politicians want her to fulfil a 2015 campaign promise: to overhaul the constitution so that it reflects Taiwan’s political reality. The process has been stalled since Tsai’s first term, which began in 2016.
Leading the charge is the Taiwan New Constitution Foundation, a group formed last year by a Tsai adviser and long-time independence advocate Koo Kwang-ming.
The foundation launched a petition at the end of March calling for two referendums on the constitution – proposing that it either be replaced with a new one or revised.
The existing constitution was adopted when Kuomintang leader Chiang Kai-shek and the KMT fled to Taiwan and set up an interim government in 1949 following their defeat by Mao Zedong’s communists in mainland China.
Drawn up in 1947, the constitution still puts the mainland and Mongolia under the Republic of China jurisdiction – Taiwan’s official name for itself. In reality, its jurisdiction extends only to Taiwan and its outlying islands of Penghu, Matsu and Quemoy, which is also known as Kinmen.
Taiwan’s constitution was adopted when KMT leader Chiang Kai-shek fled to the island in 1949. Photo: Handout
“We have garnered more than 3,000 signatures from the public for the first phase of initiating the proposals to hold two referendums asking the president to push for constitutional change,” Lin Yi-cheng, executive director of the Taiwan New Constitution Foundation, said on Wednesday.
He said they would propose that voters be asked two questions in the referendums: “Do you support the president in initiating a constitutional reform process for the country?”
And: “Do you support the president in pushing for the establishment of a new constitution reflecting the reality of Taiwan?”
“We’re ready to send the two referendum proposals to the Central Election Commission on Thursday,” he said.
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Under Taiwan’s Referendum Act, the process for holding a referendum involves three stages: a proposal, endorsement and voting.
Lin said there should be no problem for the commission to approve the proposal stage since they had gathered far more than the minimum 1,931 signatures needed under the act.
The endorsement stage requires a minimum of 290,000 signatures, and if the referendum is held, they will need at least 5 million votes.
Lin said if the process went smoothly, he expected a referendum could be held in August next year, allowing time for review and making the necessary arrangements.
He said if the referendum questions got enough public support, Tsai would need to deal with the issue.
Tsai Ing-wen visits a military base in Tainan earlier this month. The pressure for constitutional change creates a dilemma for the president. Photo: AFP
Tsai’s Democratic Progressive Party government has been tight-lipped over the constitutional change issue, which Beijing sees as a move for the island to declare formal independence from the mainland.
Beijing considers Taiwan a wayward province that must be returned to the mainland fold, by force if necessary, and it has warned Tsai against declaring formal independence.
A DPP official said the foundation’s push would put Tsai in a difficult position.
“If she ignores the referendums, she will come under constant pressure from the hardline camp, and if she seriously considers taking action and instituting a new Taiwan constitution, she will risk a confrontation with Beijing, the consequence of which could be a cross-strait conflict,” said the official, who requested anonymity.
On Tuesday, Zhu Fenglian, a spokeswoman for the mainland’s Taiwan Affairs Office, warned the island against holding any referendum on constitutional revision, saying it would be doomed to end in an impasse and would ultimately fail.
“It will only push Taiwan towards an extremely dangerous abyss and bring disasters to Taiwanese compatriots,” she said.
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But according to Wang Kung-yi, a political science professor at Chinese Culture University in Taipei, Tsai should not be too worried about the hardline camp move.
“The hardline camp has been marginalised greatly in the past several years as reflected by the poor showing in the legislative elections in January,” Wang said, adding that he expected Tsai to continue her relatively moderate cross-strait policy of not sharply provoking the mainland.
City at centre of outbreak finally able to declare itself clear of disease after months in lockdown and thousands of deaths
Risk of infection remains, however, with some patients testing positive for coronavirus that causes disease without showing symptoms
Ferries and other public transport services resumed in Wuhan last week. Photo: Xinhua
The city of Wuhan, the initial epicentre of the coronavirus pandemic, no longer has any Covid-19 patients in hospital after the last 12 were discharged on Sunday.
Their release ended a four-month nightmare for the city, where the disease was first detected in December. The number of patients being treated for Covid-19, the disease caused by a new coronavirus, peaked on February 18 at 38,020 – nearly 10,000 of whom were in severe or critical condition.
“With the joint efforts of Wuhan and the national medical aid given to Hubei province, all cases of Covid-19 in Wuhan were cleared as of April 26,” Mi Feng, a spokesman for the National Health Commission said on Sunday afternoon.
The announcement came only one day after the city discharged the last patient who had been in a severe condition. That patient also was the last severe case in Hubei province.
The last patient discharged from Wuhan Chest Hospital, a 77-year-old man surnamed Ding, twice tested negative for Sars-CoV-2, the virus that causes Covid-19, and was released at noon on Sunday.
“I missed my family so much!” Ding told Changjing Daily.
Another unidentified patient exclaimed as he left the hospital: “The air outside is so fresh! The weather is so good today!”
Wuhan faced a long journey to bring its patient count down to zero.
The city of 11 million, the capital of Hubei province and a transport hub for central China, was put under a strict lockdown on January 23 that barred anyone from entering or exiting the city without official approval for 76 days until it was officially lifted on April 8.
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Residents were ordered to stay in their apartments as the city stopped public transport and banned private cars from city streets. As the epidemic worsened, more than 42,000 medical staff from across the country were sent to the city and to Hubei province to help ease the burden on the local health care system.
Wuhan was the hardest hit city in China, accounting for 50,333 of the 82,827 locally transmitted Covid-19 cases recorded in China. More than 4,600 died in the country from the disease.
On March 13, the city reported for the first time that there were no new suspected cases of the infection, and five days later there were no confirmed cases.
The number of discharged patients bottomed out at 39.1 per cent at the end of February, gradually climbing to 92.2 per cent by last Thursday.
“Having the patients in the hospital cleared on April 26 marks a major achievement for the city’s Covid-19 treatment,” the Wuhan Health Commission said in a statement.
However, having no severe cases in hospital does not mean all the discharged patients will require no further treatment as they may still need further care.
“Clearing all the severe cases marks a decisive victory for the battle to safeguard Wuhan,” health minister Ma Xiaowei told state broadcaster China Central Television on Saturday.
“Some patients who have other conditions are being treated in specialised hospitals. It has been properly arranged.”
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Ten patients aged between 42 and 85 who have been declared coronavirus-free are still in intensive care at the city’s Tongji Hospital where they are being treated for kidney problems and other complications arising from Covid-19. Some still need ventilators to help them breathe.
These 10 patients are under 24-hour care, with 190 nurses on four-hour rotations. There are other patients in a similar condition in two other hospitals in Wuhan, according to the Hubei Broadcasting and Television Network.
However, the discharge of the last batch of Covid-19 patients does not mean that the risk of infection is gone.
The city reported 20 new cases of people testing positive for Sars-CoV-2, the official name for the coronavirus that causes the disease, but who do not yet show symptoms.
There are 535 such carriers under medical observation. Past data shows some of these asymptomatic carriers will develop symptoms, and so will be counted as Covid-19 patients under China’s diagnosis and treatment plan.
China’s coronavirus infection curve has flattened out with about 694 imported cases of Covid-19 on top of about 800 locally transmitted ones now under treatment.
The national health commission spokesman warned that people still need to be on high alert as the virus is continuing to spread around the globe, with no sign yet of a slowdown.
“[We] must not drop our guard and loosen up. [We] must discover cases in time and deal with them quickly,” Mi said, citing the continued pressure from cases imported by people returning from overseas.
“The next step will be to implement the requirements of the central government and continue to guard against imported cases and a rebound of domestic transmitted cases.”
Image copyright GETTY IMAGESImage caption An empty stretch of the road and Delhi Police barricades to screen commuters during lockdown, at Delhi Gate on April 16, 2020 in New Delhi, India.
India has eased some restrictions imposed as part of a nationwide lockdown to curb the spread of the coronavirus.
Most of the new measures are targeted at easing pressure on farming, which employs more than half the nation’s workforce.
Allowing farms to operate again has been seen as essential to avoid food shortages.
But some other measures announced last week, will not be implemented.
This includes the delivery of non-essential items such as mobile phones, computers, and refrigerators by e-commerce firms – the government reversed its decision on that on Sunday.
And none of the restrictions will be lifted in areas that are still considered “hotspots” for the virus – this includes all major Indian cities.
Domestic and international flights and inter-state travel will also remain suspended.
So what restrictions are being eased?
Most of the new measures target agricultural businesses – farming, fisheries and plantations. This will allow crops to be harvested and daily-wagers and others working in these sectors to continue earning.
To restore the supply chain in these industries, cargo trucks will also be allowed to operate across state borders to transport produce from villages to the cities.
Essential public works programmes – such as building roads and water lines in rural areas – will also reopen, but under strict instructions to follow social distancing norms. These are a huge source of employment for hundreds of thousands of daily-wage earners, and farmers looking to supplement their income.
Banks, ATMs, hospitals, clinics, pharmacies and government offices will remain open. And the self-employed – such as plumbers, electricians and carpenters – will also be allowed to work.
Some public and even private workplaces have been permitted to open in areas that are not considered hotspots.
But all businesses and services that reopen are expected to follow social distancing norms.
Who decides what to reopen?
State governments will decide where restrictions can be eased. And several state chief ministers, including Delhi’s Arvind Kejriwal, have said that none of the restrictions will be lifted in their regions.
Mr Kejriwal said the situation in the national capital was still serious and the decision would be reviewed after one week.
India’s most populous state, Uttar Pradesh, will also see all restrictions in place, as will the southern states of Andhra Pradesh, Telangana and Karnataka.
The southern state of Kerala, which has been widely acknowledged for its success in dealing with the virus, has announced a significant easing of the lockdown in areas that it has demarcated as “green” zones.
This includes allowing private vehicular movement and dine-in services at restaurants, with social distancing norms in place. However, it’s implementing what is known as an “odd-even” scheme – private cars with even and odd number plates will be allowed only on alternate days, to limit the number of people on the road.
TAIPEI (Reuters) – Taiwan waded into the hotly contested politics of the Pacific on Wednesday, donating face masks and thermal cameras to its four diplomatic allies there to combat the coronavirus in a region where China is challenging traditional power of the United States.
The small developing nations lie in the highly strategic waters of the Pacific, dominated since World War Two by the United States and its friends, who have been concerned over China’s moves to expand its footprint there.
Democratic Taiwan has faced intense pressure from China, which claims the island as its territory with no right to state-to-state ties, and is bent on wooing away its few allies.
Taiwan has only 15 formal allies left worldwide after losing two Pacific nations, the Solomon Islands and Kiribati, to China in September.
Beijing has ramped up its diplomatic push into the Pacific, pledging virus aid and medical advice.
In its own aid programme, Taiwan has donated 16 million masks to countries around the world.
“We are a very small country, so it’s easier for us to work with Taiwan than mainland China,” Neijon Edwards, the Marshall Islands ambassador to Taiwan, told Reuters at the donation ceremony in Taipei.
China has been too overbearing, she added.
“It’s pressing too much, and it’s been trying to come to the Marshall Islands, several times, but up to this time we haven’t even opened the door yet.”
While the masks presented at the ceremony are going to Taiwan’s Pacific allies, all its 15 global allies are sharing the thermal cameras.
“Today’s ceremony once again shows that Taiwan is taking concrete actions not only to safeguard the health of Taiwanese people but also to contribute to global efforts to contain COVID-19,” said Foreign Minister Joseph Wu.
Though Pacific Island states offer little economically to either China and Taiwan, their support is valued in global forums such as the United Nations and as China seeks to isolate Taiwan.
China has offered to help developing countries including those of the Pacific, and many see Chinese lending as the best bet to develop their economies.
But critics say Chinese loans can lead countries into a “debt trap”, charges China has angrily rejected.
The debt issue was a serious problem and would only lead to the spread of Chinese influence regionwide, said Jarden Kephas, the ambassador of Nauru.
“They will end up dominating or having a lot of say in those countries because of the amount of debt,” he told Reuters, wondering how the money could ever be repaid. “We are not rich countries.”
State-owned carrier’s chief says it wouldn’t be ‘morally acceptable’ to stop flying to the country, and it will stand with its ‘Chinese brothers and sisters’
Dozens of airlines have cancelled or reduced services to the nation amid the virus outbreak, including two East African rivals
Ethiopian Airlines says it will continue flying to China. The routes are among its most profitable. Photo: Shutterstock
Ethiopian Airlines, Africa’s largest and most profitable carrier, will continue flying to China despite growing pressure for it to suspend services to the country as
Dozens of airlines around the globe have cancelled or reduced their services to cities in the world’s second-largest economy amid fears over the outbreak. Its East African rivals Kenya Airways and RwandAir have both suspended flights to China until the outbreak is contained.
But Ethiopian Airlines chief executive Tewolde GebreMariam said the carrier would not abandon the routes, which are among its most profitable.
Tewolde told media over the weekend that the airline had been flying to China since 1973 and it would not be ethical to suspend flights to the country.
“It will not be morally acceptable to stop flying to China today because they have a temporary problem,” he said, adding that the airline would stand with its “Chinese brothers and sisters”.
His remarks came days after Kenyan President Uhuru Kenyatta put pressure on the Ethiopian government – which wholly owns Ethiopian Airlines – to halt flights to China, citing the need to curb the spread of the virus into the East African region.
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The airline has bucked a trend that has seen major airlines – from the United States to Europe and Asia – staying away from Chinese airspace as governments around the world move to keep the deadly virus from their borders. The pneumonia-like illness has so far
in mainland China since the outbreak began in Wuhan in December, with cases reported in more than 20 other countries worldwide.
Speaking during a visit to Washington last week, Kenyatta – who is keen to court both China and the US – insisted that Kenya’s decision to suspend flights from Guangzhou to Nairobi was not political.
He said most African countries had weak health systems that would make it harder to handle the outbreak, so preventing its spread – even if through extreme measures such as grounding flights – was the only option.
“Our worry as a country is not that China cannot manage the disease. Our biggest worry is diseases coming into areas with weaker health systems like ours,” Kenyatta said while addressing members of US think tank the Atlantic Council.
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But Ethiopian Airlines said it would continue flying to Beijing, Shanghai, Guangzhou, Chengdu and Hong Kong and was taking measures to protect staff and passengers. Ethiopia receives about 1,500 visitors from mainland China every day.
According to Tewolde, if the airline halted its Chinese services, China and Africa would be completely disconnected.
“No one in Ethiopian Airlines would like to see this,” he said. “We have to take maximum precautions, but stopping flights is not one of them.”
He added: “Even if we stop flying, people will continue to come to Ethiopia through Singapore, Malaysia, Europe. The transmission of the disease will be dangerously hidden … British Airways stopped flying to China for its economic reasons. But Chinese carriers are flying to the UK.”
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In a separate statement, the carrier said China was “one of the strongest and one of the oldest markets for Ethiopian Airlines”.
“We have been connecting the great Chinese nation with the entire continent of African for almost half a century and it is our growth strategy,” the airline said, adding that it would continue operating in the five cities in compliance with international aviation and health guidelines.
Aside from seeking to shore up revenues, analysts noted that the airline was under tight state control, and Ethiopia would be reluctant to do anything that might harm its strong bilateral ties with China.
Ethiopia is among the nations on the continent with the highest number of Chinese immigrants. Most of them are workers involved in the construction of infrastructure projects including ports, railways, dams, bridges and malls. Those projects have been financed with billions of dollars in loans from China – Ethiopia is reportedly among the biggest recipients of Chinese lending in Africa.
Last year, China was forced to restructure Ethiopia’s debt after the latter edged closer to defaulting on a loan from Beijing for its standard gauge railway.
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Ethiopia, Algeria, Angola, Nigeria and Zambia together accounted for nearly 60 per cent of all Chinese workers on the continent at the end of 2017, according to a study by Johns Hopkins University.
Ethiopia is also a major recipient of direct foreign investment from China.
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.”
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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.
Li Keqiang tells senior officials to step up efforts to channel water from Yangtze River to arid regions
Impact of pollution and rising population has prompted increased efforts to improve efficiency and supply
A cement plant on the banks of the Yangtze in Chongqing. The authorities are now trying to stop further development along the river. Photo: Reuters
China needs to divert more water to its arid northern regions and invest more in water infrastructure as shortages get worse because of pollution, overexploitation and rising population levels, Premier Li Keqiang has said.
China’s per capita water supplies are around a quarter of the global average. With demand still rising, the government has sought to make more of scarce supplies by rehabilitating contaminated sources and improving efficiency.
Water remained one of China’s major growth bottlenecks, and persistent droughts this year underlined the need to build new infrastructure, Li told a meeting of senior Communist Party officials on Monday. An account of the meeting was published by China’s official government website.
Local government bonds should be “tilted” in the direction of water infrastructure, he said, and innovative financing tools were also needed.
He also called for research into new pricing policies to encourage conservation.
Li said China’s water supply problems had been improved considerably as a result of the South-North Water Diversion Project, a plan to divert billions of cubic metres of water to the north by building channels connecting the Yangtze and Yellow rivers.
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He said opening up more channels to deliver water to regions north of the Yangtze River Delta would support economic and social development and optimise China’s national development strategy, according to a summary of the meeting on the government website.
China is in the middle of a wide-reaching programme to clean up the Yangtze River, its biggest waterway, and put an end to major development along its banks.
Chinese Premier Li Keqiang inspects an empty reservoir during a visit to Jiangxi province last week. Photo: Xinhua
Local governments have been under pressure to dismantle dams, relocate factories and even ban fishing and farming in ecologically fragile regions.
But experts say the ongoing campaign to divert the course of the Yangtze to other regions is still causing long-term damage to the river’s environmental health.
Many cities that had polluted their own water sources had drawn replacement supplies from the Yangtze, exceeding the river’s environmental capacity, said Ma Jun, founder of the Institute of Public and Environmental Affairs, which monitors water pollution.
Beijing already relied on diversion channels from the Yangtze to supply 70 per cent of its water, but had done little to improve conservation or reduce per capita consumption, which was higher than many Western countries, he said.
“[Diversion] has caused so much suffering and needs so many dams to keep up supply, and that has impacted biodiversity,” he said.
CHINDIA ALERT: You'll be living in their world, very soon 