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Page 1

NATIONAL PORTAL OF INDIA

A GLINT OF INDIA
(Courtesy: http://india.gov.in)
PM Modi Launched Sansad Adarsh Gram Yojna

Prime Minister Narendra Modi Launched Sansad Adarsh Gram Yojna on the birth anniversary of Jaiprakash
Narain(JP). The BJP has always been respect towards JP. Three years ago LK Advani launched his last Rath
Yatra against corruption on JPs birth anniversary from his native village, Sitab diara in Bihar.
By launching this scheme on 11 October, Modi is paying huge tribute to Jaiprakash Narain(JP). More so, as
it comes from a man who is leading the first non-Congress government, with a majority of his own.
JPs name is anathema to Congress but Modi has designed the Sansad Adarsh Gram project in a completely
bi-partisan way, for all 750 Lok Sabha and Rajya Sabha MPs, it will be very difficult to either, disassociate
or overtly criticise the initiative.
The scheme is unique and transformative as it has a holistic approach towards development. It envisages
integrated development of the selected village across multiple areas such as agriculture, health, education,
sanitation, environment, livelihoods etc.
Far beyond mere infrastructure development, SAGY aims at instilling certain values, such as peoples
participation, Antyodaya, gender equality, dignity of women, social justice, spirit of community service,
cleanliness, eco-friendliness, maintaining ecological balance, peace and harmony, mutual cooperation, selfreliance, local self government, transparency and accountability in public life, etc in the villages and their
people so that they get transformed into models for others.
MPLAD funds to benefit model villages

The 65-page outline for the Sansad Adarsh Gram Yojana, released by Prime Minister Narendra Modi, in the
presence of Rural Development Minister Nitin Gadkari, requires MPs to identify one village with a
population of 3,000-5,000 in the plains and 1,000-3,000 in the hills within a month for convergence of
existing schemes for socio-economic development of the area.
MPs can choose any village except their own or their spouses. There is no other criterion.
MPs are expected to facilitate a village development plan, motivate villagers to take up activities and use the
Rs.5-crore MPLAD fund to fill gaps for funds besides mobilising additional resources especially from
Corporate Social Responsibility in sewage and water supply schemes.
The activities and outcomes will cover broad development indicators such as health, nutrition and education
through organising immunization drives, improving mid-day meal schemes, improving Aadhaar enrolment,

Page 2

setting up smart schools with IT-enabled classrooms and e-libraries, improving panchayat infrastructure
under schemes such as MNREGA and Backward Regions Grants Fund.

Page 3
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Ministry of External affairs

Maritime Challenges before India in the 21st Century
The strategic analyst community in India, and also abroad, often complains of India being a sea-blind
country despite its long coastline and a large number of islands. It is, in that sense, interlaced with our
colonial past when, indeed, our maritime memory was erased by the Raj. During the British period, the
Indian Ocean was reduced to a British Lake being controlled by the Royal Navy commander based in
Singapore; this was accompanied by the destruction of Indian shipping industry, as well as the shipping
sector itself, as a result of deliberate policy of discrimination by the then British rulers. It is of a piece of the
tragic history of Indias colonisation.
That is why the development of capabilities for addressing the maritime challenges for India is of a piece of
Indias emergence as an important player in global affairs. And, it is part of the narrative of our freedom
struggle when Indias maritime capabilities were projected as a vehicle for the spread of Indian civilisation
and for the country to be known as the golden bird or soney ki chidiya. Let me just add that the ancient
name of India is Jambudweep meaning the island of jamun (black berry) tree.
Indian coastline is 7516.6 kms of which the mainland peninsular coastline is 5, 422.6 kms. It has 1,197
island territories. Following Indias ratification of the UN Convention on the Law of the Sea (UN CLOS)
and the adoption of appropriate domestic laws, an area of 2.013 million square kilometres of Exclusive
Economic Zone in addition to 155,889 km of territorial waters are Indias area of exclusive use; following
Indias submission before the UN Commission on the Limits of the Continental Shelf, a further addition of
another approximately 1.2 million km makes the total sea area almost equal to our land area of 3.3 million
km.
India shares maritime border with more countries than on its land borders the Maldives, Sri Lanka,
Myanmar, Indonesia, Thailand, Pakistan and Bangladesh; it has an unresolved maritime border dispute with
Pakistan but, even, where borders are delimited there are frequent instances of illegal fishing due to lack of
clarity about the precise alignment, arrest of fishermen, arms-smuggling, including terrorist infiltration,
human-smuggling and drug-trafficking. India's Maritime Military Strategy, issued by the Indian Navy in
2007, identified the Indian Ocean Region along with its chokepoints and its international shipping lanes
which are located close to the peninsular coastline and pass through its island chains, as the primary area of
interest and includes, amongst secondary areas, the southern Indian Ocean Region, the Red Sea, the South
China Sea and the East Pacific Sea.
Page 4

The Indian Ocean littoral, an area of primary importance for Indian maritime agencies, hosts one third of the
worlds population in about one quarter of the worlds landmass; it is rich in minerals reserves and for
having 31% of the gas reserves and other oil reserves, precious minerals such as uranium, tin, gold and
diamonds. Its littoral comprises countries with extreme diversities in economic circumstances and political
stability including some becoming either failed or failing states or having failed regions within them; these
factors have caused acute forms of terrorism, including the Jihadist variety, gun-running, human-trafficking,
smuggling and other type of criminal activity. The IOR is the locus of 70% of the worlds natural disasters.
An offshoot of globalisation, namely, the IT revolution and the empowering of the non-state actors,
combined with weakened nation states, has created a situation in parts of the littoral which the security
analysts describe as the phase of post-Westphalian Long War or of irregular or asymmetrical warfare
which requires a different kind of military doctrine for conflict management. The weakened state and
multilateral institutions, combined with the surge of the technology, have brought in new factors into global
security dynamics, such as quality of governance, science and technology, especially IT and bio-technology
and skewed economic growth leading to environmental unsustainability, competition for access to natural
resources such as food, water and energy and the impact of their inter-linkages on the security dynamics.
The end of the Cold War has also led to the weakening of the formal alliance systems and development of
interest-driven cooperation amongst nations. The current phase is also witnessing the emergence of Asian
powers, especially China, which is bringing in its own dynamics especially as it is considered by the West as
not yet coopted into the global system.
In the non-traditional security threats, characterising the 21st century, are endeavoured to be addressed by
the Ministry of Earth Sciences, set up in 2006. It is responsible for development of technology for
exploitation and exploration of marine resources, weather services, climate change and geo-hazards,
including tsunamis and vulnerability mapping for the purpose; it underlines the need for improving the
quality of services provided for each of these activities which require considerable international
collaboration. Its further major scientific role is oceanographic studies where it has significant partnership
with the International Oceanographic Commission.
This gives the opportunity to India to be diplomatically active amongst the littoral countries. One approach,
of course, is to strengthen the regional governance organisations like IORA (Indian Ocean Rim Association)
and the IONS (Indian Ocean Naval Symposium). Besides, a proactive approach for perception management
needs to be developed in the littoral through leveraging our national media, and IT-enabled outreach
programmes such as the pan-African e-network project. The need to address the challenges of the growing
influence of the states in foreign affairs necessitates the strengthening of the role of MEAs public

Page 5

diplomacy division. Special capacity-building efforts are needed for our maritime agencies for handling the
challenges of non-traditional threats to the region.
The diplomatic environment in the 21st century is undergoing rapid change due to globalisation and other
accompanying factors and the, consequent, rapid expansion in the number and the variety of international
actors, empowered by ICT and the social media, extending much beyond the traditional NGOs to include the
more amorphous civil society groups. There is the resurgence of the traditional geopolitical agenda as the
nation states compete for power, resources and, even, territory. There is expansion of regulatory diplomatic
agendas which have been expanded by the global financial crisis regulatory banking, for example - and the
whole host of other issues which can be handled only through more effective multilateral governance: these
agendas are an outcome of this phenomenon which is likely to endure into the future.
In short, the efforts required for these challenges need to be based on the whole-of-the-government approach
and somewhat different kind of institutional thinking an effort which institutions such as the Central
University of Rajasthan are geared well enough to undertake.
Source: (lecture by Ambassador (Retd) Yogendra Kumar at Central University of Rajasthan Ajmer)

Page 6
You will be provided current affairs on various important topics on a weekly basis.
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Ministry of External Affairs
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India And The World
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In The News
Science and Technology
Burning Issues (Editorials From Different Newspapers)
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Planning Commission of India

Storage Status of 85 Important Reservoirs of the Country as on
October 16, 2014
The Water Storage available in 85 important reservoirs of the country as on October 16, 2014 was 116.246
BCM which is 75% of total storage capacity of these reservoirs. This storage is 87% of the storage of
corresponding period of last year and 99% of storage of average of last ten years. . The present storage
position during current year is less than the storage position of last year and also less than the average
storage of last ten years.
Central Water Commission monitors live storage status of 85 important reservoirs of the country on weekly
basis. These reservoirs include 37 reservoirs having hydropower benefit with installed capacity of more than
60 MW. The total storage capacity of these reservoirs is 155.046 BCM which is about 61% of the storage
capacity of 253.388 BCM which is estimated to have been created in the country.
REGION WISE STORAGE STATUS

NORTHERN REGION
The northern region includes States of Himachal Pradesh, Punjab and Rajasthan. There are 6 reservoirs in
this region having total storage capacity of 18.01 BCM. The total storage available in these reservoirs is
13.82BCM which is 77% of total storage capacity of these reservoirs. The storage during corresponding
period of last year was 90% and average storage of last ten years during corresponding period was 78% of
storage capacity of these reservoirs. Thus, storage during current year is less than the corresponding period
of last year and also less than the average storage of last ten years during the corresponding period.
EASTERN REGION
The Eastern region includes States of Jharkhand, Odisha, West Bengal and Tripura. There are 15 reservoirs
in this region having total storage capacity of 18.83 BCM. The total storage available in these reservoirs is
14.80 BCM which is 79% of total storage capacity of these reservoirs. The storage during corresponding
period of last year was 88% and average storage of last ten years during corresponding period was 79% of
storage capacity of these reservoirs. Thus, storage during current year is less than the corresponding period
of last year and equal to the average storage of last ten years during the corresponding period.
WESTERN REGION
The Western region includes States of Gujarat and Maharashtra. There are 22 reservoirs in this region
having total storage capacity of 24.54 BCM. The total storage available in these reservoirs is 18.86BCM
which is 77% of total storage capacity of these reservoirs. The storage during corresponding period of last
year was 89% and average storage of last ten years during corresponding period was 81% of storage
capacity of these reservoirs. Thus, storage during current year is less than the storage of last year and also
less than the average storage of last ten years.

Page 7

CENTRAL REGION
The Central region includes States of Uttar Pradesh, Uttarakhand, Madhya Pradesh and Chhattisgarh. There
are 12 reservoirs in this region having total storage capacity of 42.30BCM. The total storage available in
these reservoirs is 34.67 BCM which is 82% of total storage capacity of these reservoirs. The storage during
corresponding period of last year was 89% and average storage of last ten years during corresponding period
was 65% of storage capacity of these reservoirs. Thus, storage during current year is less than the storage of
last year but better than the average storage of last ten years.
SOUTHERN REGION
The Southern region includes States of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu. There are 30
reservoirs in this region having total storage capacity of 51.37 BCM. The total storage available in these
reservoirs is 34.09BCM which is 66% of total storage capacity of these reservoirs. The storage during
corresponding period of last year was 79% and average storage of last ten years during corresponding period
was 80% of storage capacity of these reservoirs. Thus, storage during current year is less than the
corresponding period of last year and also less than the average storage of last ten years during the
corresponding period. States having better storage than last year for corresponding period are Chhattisgarh
and Tamil Nadu. States having equal storage than last year for corresponding period are Jharkhand and
Karnataka. States having lesser storage than last year for corresponding period are Himachal Pradesh,
Punjab, Rajasthan, Odisha,West Bengal, Tripura, Gujarat, Maharashtra, Uttar Pradesh, Uttarakhand,
Madhya Pradesh, Andhra Pradesh and Kerala.
(Source: Press Information Bureau Government of India Ministry of Water Resources)

Page 8

NATIONAL EVENTS
Justice Handyala Lakshminarayana Swamy Dattu as the new CJI
Hours after being sworn in as the 42nd Chief Justice of India at the Durbar Hall of Rashtrapati
Bhavan, Justice Handyala Lakshminarayana swamy Dattu pledged to be a common mans judge on
the Bench.
The 63-year-old Chief Justice was sworn in by President Pranab Mukherjee. He will serve for 14
months and retire on December 2, 2015.
Asked about the changes in the Supreme Court over the years, the CJI said the workload had
increased tremendously and many sensitive cases were being filed now. Justice Dattu is presiding
over the Bench monitoring the 2G spectrum scam.
187th Gunners Day celebrated: 28 Sep 2014
28th September is being celebrated as Gunners Day. It has a special significance in the annals of the
history of the Regiment of Artillery as the first Indian Artillery Unit, 5 (Bombay) Mountain Battery
equipped with 2.5 inch RML Gun, was raised on this momentous day in 1827. The Regiment
celebrates the occasion every year as Gunners Day.
Artillery was first used in India in the 14th Century by the Bahmani Kings during the Deccan War
against Vijaynagar Kingdom. A force multiplier throughout the Mughal Period, and later during the
reign of the Marathas, Hyder Ali, Tipu Sultan and the Sikhs under Maharaja Ranjit Singh, artillery
has eternally been an arm to reckon with.
The Regiment proved its mettle also during the operations of 1947-48, 1962, 1965, 1971 and 1999.
After the Kargil conflict, Artillery has acquired further prominence and with its vast array of
weapons, it is acknowledged as an significant Arm of Decision.
Special sitting to hear bail plea of Jayalalithaa
The Karnataka High Court decided to hear the bail application of AIADMK general secretary
Jayalalithaa, When the matter was first taken up by a vacation bench in the forenoon, G. Bhavani
Singh, the Special Public Prosecutor in the trial court, told Justice Rathnakala that as there was no
official communication that he had been appointed prosecutor in the appeal too, it would not be
proper for him to represent the State.
The judge said as representation on the prosecution side was necessary; the matter could wait for the
appointment of a prosecutor.
She then adjourned the application to, even as Ms. Jayalalithaas lawyers submitted that a
prosecutors presence was not necessary as the trial court sentence was less than 10 years. The judge

Page 9

observed that Ms. Jayalalithaas side could approach the High Court Registry if it wanted the case
heard before October 6.
In the meantime, the government also issued a notification appointing Mr. Singh as the Special
Public Prosecutor for the appeal.
Trial in a hurry at the cost of truth not justice: SC
A one-day court hearing and acquittal by evening of all accused in a dowry death case has led the
Supreme Court to say that speedy or rather trial in a hurry does not always mean justice to the
wronged.
A 20-page judgment written by Justice M.Y. Eqbal held that speed should not be at the cost of the
court abandoning the search for truth.
The verdict comes at a time when a debate is raging about the huge backlog of cases in subordinate
courts and the need to fast-track trial proceedings.
The case deals with the suicide of Renukaben Maheshbhai Patel from Mehsana district in Gujarat,
married for two years and mother of an infant girl. In her dying declaration, she recounted her inlaws harassment. They were subsequently charged with abetment of her suicide and dowry death.
The initial trial lasted a total of nine days in the sessions court. The entire examination and crossexamination of witnesses in court was completed in a day.
PM launches 'Swachh Bharat' challenge
In his bid to make 'Swachh Bharat' a people's movement, Prime Minister Narendra Modi initiated a
chain by inviting nine eminent personalities including cricket icon Sachin Tendulkar, Congress
leader Shashi Tharoor, industrialist Anil Ambani along with several actors to spread awareness on
cleanliness.
The Internet-savvy Prime Minister appeared inspired by the ALS Ice Bucket Challenge, which had
gone viral in recent months, as he asked the celebrities to nominate nine more people to join the
campaign and hoped that the chain would continue.
Modi also administered a pledge to thousands of people, including schools children and government
employees at Rajpath for remaining committed to cleanliness to make the country clean.
"I will remain committed towards cleanliness and devote time for this...I will neither litter nor let
others litter," pledged all those present at a function to mark the launch of "Swachh Bharat" (Clean
India) mission at India Gate by the Prime Minister.
"I have invited nine people and asked them to come to public places and work towards a Clean India.
I ask them to invite nine more people too...I am sure these nine people will do the work and each
will invite nine more people to form a chain and clean the country," Modi said.

Page 10

The original ice bucket challenge where such a chain was created online was designed to raise funds
for amyotrophic lateral sclerosis also known as Lou Gehrigs Disease and motor neurone disease,
which is a global viral phenomenon.
Clash between security forces & militants in J&K
A gunfight broke out between security forces and militants in a village in Pulwama district of south
Kashmir, police said.
Security forces launched a search operation in Chursoo area of Pulwama district following
information about presence of militants there, a police spokesman said.
He said militants opened firing on advancing security forces, which retaliated leading to the
encounter.
Intermittent of exchange of firing was going on but so far there are no reports of any casualties on
either side, the spokesman added.
ISRO will launch IRNSS 1C on Oct 10
ISRO will launch the third of seven series of satellites to put in place Indias own navigation system
on par with US Global Positioning System (GPS) from the spaceport of Sriharikota on October 10.
The Indian Regional Navigational Satellite System (IRNSS) 1C satellite would be launched on the
28th flight of Indias PSLV-C26 from the Satish Dhawan Space Centre at Sriharikota, some 100 km
from Chennai.
As part of its aspirations to build a regional navigational system equivalent to GPS of the US, ISRO
plans to send seven satellites to put in place the IRNSS.
The first two satellites in the series, IRNSS 1A and IRNSS 1B were launched from Sriharikota on
July 1 2013 and April 4 this year respectively.
Being developed by India, IRNSS is designed to provide accurate position information service to
users in the country as well as the region extending upto 1,500 km from its boundary, which is its
primary service area.
Centre govt notifies life-long visa for PIOs
Well before Prime Minister Narendra Modi returns home, the government has moved, with unusual
swiftness, to implement his promise of life-long visas to Indian-Americans.
The Union home ministry notified changes to the Persons of Indian Origin (PIO) scheme to make the
PIO cards valid for the duration of the card holders lifetime instead of the existing 15 days.
The ministry also exempted them from registering with the police if their stay in India exceeds 180
days.

Page 11

During his US visit Modi had, at Madison Square Garden, promised to ease visa problems for PIO
card holders, to merge the PIO and Overseas Citizens of India (OCI) scheme and to make it simpler
for foreigners who marry Indians to get the PIO/OCI cards.
A home ministry official told HT that the government had begun the process to finalise changes to
the Citizenship Act.
The UPA had first announced their intention to amend the citizenship law in 2011 but the initiative
lost steam soon after.
Marital rape is offensive to morality and liberty: court
Additional Sessions Judge Dr. Kamini Lau denied bail to a man accused by his wife of raping her,
subjecting her to unnatural sex and also taking her nude photographs.
The man, on the other hand, claimed he had been implicated by his wife as she wanted to create a rift
in the family.
Noting that the woman had been married for only eight months now, the court said, The physical
and psychological damage caused to the complainant, a young girl married for hardly eight months,
on account of this abusive relationship is unimaginable and hence calls for no indulgence to the
accused whose application for grant of bail is hereby dismissed.
Under the Indian Penal Code, sexual intercourse or sexual acts by man with his own wife, the wife
not being under 15 years of age, is not rape.
In India, marital rape is not covered by the ordinary rape laws and is a form of non-criminal
domestic violence. Also, explanation to IPC Section 375 which provides that sexual intercourse or
sexual acts by man with his own wife, the wife not being under 15 years of age, is not rape; in fact
exempts spouses from prosecution except in cases of legal separation. Some cases, however, are in
fact covered by the ordinary laws relating to assault and unnatural sex/ sodomy as in the present case,
for use of violence to claim sex is clearly not acceptable.
Marital rape is offensive to morality and liberty and any kind of sexual perversity requires to be
exposing, addressing and condemning, said Dr. Lau deprecating the existing legal situation in the
country, Dr. Lau said.
ISRO Upgrading Indian rockets for future Mars missions
After the stunning success of its very first shot at Mars, the Indian Space Research Organisation
(ISRO) will need to take those capabilities forward, despatching bigger, and more advanced
spacecraft in the years to come. That, in turn, requires rockets that can carry such probes on the first
leg of their journey and place them in orbit around Earth.
For its first attempt with the Mars Orbiter, ISRO turned to the Polar Satellite Launch Vehicle
(PSLV), a rocket with an impeccable track record. Initially, it seemed that this launcher would not be
powerful enough for the task and every aspect of the mission had to be carefully optimised in order
to make that possible, according to V. Adimurthy, the space agency's senior adviser for

Page 12

interplanetary missions. He led a study team whose 2011 report laid out how India could send probes
to the Red Planet.
For future missions, ISRO will have to turn to the Geosynchronous Satellite Launch Vehicle (GSLV)
and GSLV Mark III that can lift much heavier spacecraft than the PSLV. The former, equipped with
an indigenous cryogenic stage, had its first successful flight only in January this year. An
experimental launch of the Mark III, with a non-functional cryogenic upper stage, is to take place
shortly. (The rockets operational cryogenic engine and stage are still under development.

Page 13
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INTERNATIONAL
US will help India to develop three smart cities
In a boost to India's 100 smart city programme, the US will help India in developing three such cities
apart from joining hands with civil society and authorities to provide clean water and sewage
facilities in 500 cities in the country.
The three cities are Allahabad, Ajmer and Visakhapatnam.
This announcement was made after the talks between Prime Minister Narendra Modi and US
President Barack Obama. The Indian government plans to develop 100 smart cities and in this regard
an allocation of Rs 7,060 crore was proposed in the Union Budget.
Winding up his whirlwind five-day US visit on 30th september, Prime Minister Narendra Modi
"thanked" America and called his trip a highly "successful and satisfactory".
Afghanistan U. S. signed security pact to let troops stay
Afghanistan and the United States signed a security pact to allow U.S. forces to remain in the
country past the end of year, ending a year of uncertainty over the fate of foreign troops supporting
Afghanis as they take over responsibility for the countrys security.
Afghan, American and NATO leaders welcomed the deal, which will allow about 10,000 American
troops to stay in the country after the international combat mission ends on December 31.
Former Afghan President Hamid Karzai had refused to sign it despite U.S. threats of a full
withdrawal in the absence of legal protections for American forces. U.S. officials have said that the
delay in the deals signing does not affect plans for next year.
President Ashraf Ghani Ahmadzai, who was sworn into office a day earlier, told a crowd assembled
at the presidential palace in the capital Kabul for the signing ceremony that the agreement signalled a
fundamental shift for the positive in the countrys relations with the world.
This agreement is only for Afghan security and stability, he said in comments broadcast live on
state television. These agreements are in our national interest. The Bilateral Security Agreement
will pave the ground for Afghanistan to take control, he added.
Australia to launch airstrikes in Iraq
Australias prime minister said that the nations air force will launch airstrikes against Islamic State
targets in Iraq.

Page 14

The announcement has been widely anticipated since six F/A-18F Super Hornet jet fighters were predeployed to the United Arab Emirates in response to a formal request from the United States for
specific contributions to the international coalition.
The seven cabinet ministers who make up the governments National Security Committee approved
the deployment after an official request was received from Iraq overnight.
Two unarmed Australian air force planes an E-7A Wedgetail surveillance and communications jet
and a KC-30A refuelling plane joined operations over Iraq from the al-Minhad Air Base outside
Dubai for the first time in support roles.
The Australian deployment also includes a 200-strong ground force, including special forces, to
advise security forces inside Iraq, plus 400 air force personnel.
Tensions broke out in Hong Kong
Fresh scuffles broke out between Hong Kong pro-democracy protesters and opponents of the weeklong demonstrations, reigniting concerns that the Chinese-controlled city's worst unrest in decades
could take a violent turn.
The protests have been largely peaceful since police fired tear gas at crowds demanding Beijing
grant Hong Kong the unfettered right to choose its own leader. But the mood turned ugly at the most
volatile protest site, in the teeming suburb of Mong Kok where some criminal gangs are suspected to
be based.
Police intervened to prevent a violent escalation, but a rowdy crowd of around 2,000 filled a major
intersection and the atmosphere was highly charged as police in riot gear tried to keep them under
control.
Hurricane Simon formed off Mexico's Pacific coast
Hurricane Simon formed off Mexico's Pacific coast, bringing further heavy rain and strong swells to
Baja California, which was battered by heavy rains last month.
The U.S. National Hurricane Center said Simon was about 445 km south-southwest of the southern
tip of Baja California, which suffered record damage from hurricane Odile in September.
Simon, with maximum sustained winds of 120 kph was moving toward the west-northwest and
expected to continue in that direction before weakening and turning away from the coast.
Odile hit the popular beach resorts of Baja California two weeks ago, stranding thousands of tourists
and knocking out power.

Page 15

China tests Dongfeng nuclear missile
China has flight-tested an upgraded version of its 10,000-km range Dongfeng missile which could
reach most of the U.S. and European cities, days before its National Day on October 1, 2014 to
demonstrate its nuclear capability, media reports said.
The Peoples Liberation Army launched a Dongfeng-31B on September 25 from the Wuzhai Missile
and Space Test Centre also known as the Taiyuan Satellite Launch Centre in Shanxi province, Hong
Kong-based South China Morning Post reported quoting U.S. media reports.
The first flight-test of an upgraded mobile intercontinental ballistic missile in the lead up to National
Day aimed to show the world that China was reinforcing its nuclear deterrent, it quoted military
experts as saying.
The DF-31B is an upgraded version of the DF-31A and the launch was at least the second time the
PLAs Second Artillery Corps had tested a DF-31 missile in the past three months.
The mobile missiles are designed specifically for travel over rugged terrain and in difficult road
conditions.

Page 16
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ECONOMY
Healthy inflation declines are not enough: RBI Governor
As the Reserve Bank of India (RBI) gets ready to announce its fourth quarter bi-monthly monetary
policy review on September 30, the usual expectations from the market for an interest rate cut are
surprisingly muted.
The surprise element lies in the fact that whatever data that are available in the public domain would
seem to suggest a softer interest rate regime. According to this view, the RBI has, after a very long
time, a favourable environment to lower the benchmark repo rate, which has remained at 8 per cent
for the greater part of the year.
The broad macro-economic indicators have generally been positive even though one lead indicator
the index of industrial production (IIP) continues to remain erratic.
Most significantly, inflation data for August both retail and wholesale have delivered big,
pleasant surprises. Retail inflation based on the consumer price index (CPI) has declined by almost a
full percentage point from July from close to 8 per cent to just above 7 per cent.
RBIs monetary policy statement
The key take-away from the Reserve Bank of Indias fourth bi-monthly monetary policy statement,
released on 30 September is the central banks projections on the economys revival, a key element
on the agenda of the Modi government. The RBI did not raise its growth projection for 2014-15,
retaining it at the pre-elections level of 5.5 per cent, thereby, refusing to buy into the sharp surge in
business sentiment and consumer confidence that its own surveys are capturing.
Quelling all hopes of a quick turnaround of the economy, it said, the momentum of activity across
the economy is yet to stabilise and that the monsoon deficiency will dampen agricultural growth,
which, in turn, will spill over to the rest of the economy as lower demand for the farm sectors
produce.
Business expectations of corporates for the third quarter, surveyed by the RBI, are at a eleven-quarter
high, it said in its monetary policy report, ascribing the upbeat sentiment to the formation of a stable
government at the Centre and the greater certainty about the policy environment, improvement in
twin deficits, buoyant foreign capital inflows, a stable exchange rate and improved financial market
conditions.
Microsoft announced its 'Windows 10' Operating System
Microsoft Corp. announced its 'Windows 10' Operating System to replace the largely unpopular
Windows 8, skipping a number to mark a leap toward unifying the way people work on tablets,
phones and traditional computers.

Page 17

Microsoft is restoring some of the more traditional ways of doing things and promises that Windows
10 will be familiar for users regardless of which version of Windows they are now using. For
instance, the start menu in Windows 10 will appear similar to whats found in Windows 7.
Govt. refuses to bow to U.S. pressure on IP regime
The Modi Government denied that the reference to Intellectual Property Rights (IPR) in the joint
statement from U.S. President Barack Obama and Prime Minister Narendra Modi, was an outcome
of the U.S. arm-twisting. The U.S. consent to discussion of IPR issues through the bilateral
mechanism is a re-affirmation of Indias stand that issues need bilateral discussion and not unilateral
action, a Department of Industrial Policy and Promotion (DIPP) clarification said.
The clarification further said the bilateral mechanism agreed to for discussing IPR disputes Trade
Policy Forum (TPF) was put in place by the UPA Government in March 2010 through a US-India
statement, was signed by the then Commerce Minister and his U.S. counterpart. We have not
submitted to the U.S. or yielded ground. We have reiterated that the U.S. should not act
unilaterally, Industry Minister Nirmala Sitharaman.
The joint statement, the DIPP clarified, in fact merely reiterates the position India has held since
2010 this consistent position being that the IPR legal regime in India is fully TRIPS compliant
and that issues to be discussed have to be taken up in bilateral forums like TPF. India has
consistently refused to be subjected to unilateral action, the clarification added.
Retail sector to benefit from REITs
The entry of real estate investment trusts (REITs) in the Indian market is expected to infuse a large
dose of liquidity into the cash-strapped commercial real estate sector and could be a game changer.
In India, of the estimated 350 million square feet of Grade A office space valued at around $6570 billion concentrated in the major urban centres, about 80-100 million sq. ft is estimated to be
eligible for REITs in the next 2-3 years, valued at about $15-20 billion, according to KPMG in India.
Apart from these, there are a host of other commercial properties such as shopping centres, retail
malls, among others, which are eligible for REITs.
Retail malls in particular had seen developers rush in and churn out malls all over the country, but
the rising vacancy rates following the economic slowdown saw a slowdown on the supply of mall
space. An improvement in consumer sentiment now is good news for organised retail.
RBI Going beyond interest rate changes
Entirely in line with expectations, the Reserve Bank of India in its fourth bi-monthly monetary policy
review did not change the policy repo rate, which remains at 8 per cent.
The main determinant of monetary policy has been to get a handle on inflation. This has been very
well articulated by the RBI Governor both through the policy statements and outside. In fact, this
time the Governor had amply made it clear that a rate cut was out of the question given the inflation

Page 18

scenario. The RBI has not only explained why a rate cut was not possible this time but has also more
than hinted as to why there might not be any change for quite sometime.
The pause may well extend to the greater part of 2015. The reason, of course, is inflation. While the
RBI is fairly confident of reaching its target of 8 per cent retail inflation by January, 2015, it is far
less certain about its medium-term target of 6 per cent by January, 2016. The central banks views on
the glide-path for inflation are the same. However, the risks to attaining the 6-per cent target by
January, 2016, remain even though they have lessened compared to August. As to why achieving a 6
per cent inflation target by January, 2016, may be so difficult, the RBI Governor explained that lots
of things can happen in the world.
The present softening of commodities prices, especially of oil now trading below $100 a barrel
might not last indefinitely. Food prices may spike. The impact of the recent monsoons has not been
assessed fully.

Page 19

SCIENCE AND TECH

Whale shark found washed ashore at Panambur
A 10-ft-long whale shark was found washed ashore at the Panambur beach. The whale shark, among
the largest fish species in the world, is commonly found in deep seas around the Lakshadweep
Islands, and it, probably, is the first incident of a whale shark found washed ashore at Panambur.
An average whale shark is around 30 feet in length and weighs around 9,000 kg.
Preterm birth kills most children under 5 years in India
Of the 6.3 million deaths in children under the age of five years, nearly 52 per cent of deaths during
2000-2013 occurred during the neonatal period (0-27 days after birth). Preterm birth complications,
pneumonia and intrapartum-related complications have been found to be the three main causes of
death in children globally.
According to Li Liu from the Institute of International Programs and the first author of the paper,
there will be 4.4 million deaths in children younger than five years even in 2030 if the present trend
continues.
In 2013, India, Nigeria, Pakistan, the Democratic Republic of Congo and China together accounted
for half of deaths in the world in children aged under five years, and 52.5 per cent of all neonatal
deaths. In the case of India and Pakistan, the three leading causes were preterm birth complications,
pneumonia and intrapartum-related complications.
Measles will be the Target after eliminating polio
An ambitious drive to eliminate or control a host of diseases, including measles, which affects lakhs
of people and leave many killed every year will be launched, Health Minister Harsh Vardhan said.
Dr. Vardhan said the government was already working towards eliminating measles by 2015 and
Rubella, also known as German measles, and Kala-azar or black fever by 2015.
It also aims to eliminate parasitic disease Filaria by 2015 and Leprosy at district level by 2017.
We got rid of Smallpox in 1977 and Polio in 2014. There is no reason why we cannot finish others,
he said during a press conference.
Dr. Vardhan said the government has called a meeting of health secretaries from across the country
on October 9 in this regard, following which a nationwide programme will be launched regarding
elimination of such diseases and others.

Page 20

India should increase Coverage of antenatal care: WHO
In 2013, globally, preterm birth complications were responsible for 15 per cent (0.96 million) of
deaths in children under five years of age. It is a leading cause of death in neonates (0-27 days after
birth). According to WHO, about 15 million babies are born preterm (before 37 completed weeks of
gestation) every year. Such births are seen both in the developed and developing countries.
India ranks first in the list of 10 countries that account for 60 per cent of all preterm births; the U.S.
is ranked sixth in the list.
India has little more than 50 per cent of antenatal care coverage. So in order to face the issue of
premature births, low birth weight babies and stillbirths, the first aspect is to increase the coverage of
antenatal care, Dr. Flavia Bustreo, Assistant Director General at WHO told this Correspondent.
During antenatal care, health workers can detect whether progress of foetal growth is happening
normally, pregnant mothers nutrition is good or look out for any other complications.
Virtual breast will improve cancer detection
A Computer-generated 3D virtual breast software, that mimics the intricacy of the real organ, could
improve cancer detection, scientists say.
Many medical professionals encourage women to get mammograms, even though the tests are
imperfect at best: only a minority of suspicious mammograms actually lead to a cancer diagnosis,
researchers said.
Researchers have used a different type of test, ultrasound elastography, to pinpoint possible tumors
throughout the body, including in the breast.
It uses imaging to measure the stiffness of tissue, and cancer tissues are stiff, said Jingfeng Jiang, a
biomedical engineer at Michigan Technological University.
Those images can be breathtakingly clear: In one elastograme the tumour is as different from normal
breast tissue as a yolk is from the white in a fried egg. However, not all images are that precise.
Ultrasound elastography could be an excellent screening tool for women who have suspicious
mammograms, but only if the results are properly interpreted, researchers said.
HIV pandemics genesis in the 1920s was in Kinshasa: scientists
A perfect storm of urban change that began in 1920s Kinshasa led to the catastrophic spread of
HIV across Africa and into the wider world, according to scientists who used genetic sequencing and
historical records to trace the origins of the pandemic.
Though the virus probably crossed from chimpanzees to humans in southern Cameroon years earlier,
HIV remained a regional infection until it entered the capital of what is now the Democratic
Republic of the Congo (DRC).

Page 21

From the 1920s until 1960, the pandemic HIV strain there were others that fizzled out spread
from Kinshasa, crossed borders to other nations, and ultimately landed on distant continents. It has
infected nearly 75 million people worldwide to date.
Indo-Russian venture breaks new ground
When Mikhael and Sergei were students together at Dauria, a back of beyond region in Russias
trans-Baikal region bordering region, little would they have imagined that they would team up with
Indians, who also came out from smaller towns, to launch satellites.
The two Russians from a region known for crystal blue lakes and seasons divided between
unremitting snow for half the year and rolling meadows for the remainder, next met at the Physics
Olympics which Mikhail Kokorich won. It was when they were selected for admission at
Novosibirsk University that they sensed their destinies were interlinked, narrates Sergei Ivanov, in a
dapper suit while taking time off to talk on his cell phone with his companys offices in the Silicon
Valley and Munich.
The Indians too Raghu Das, D. S Govindrajan and Sachida Padhi chose career paths that
differed from the usual trajectory of scientists\managers settling down to a life of security with
Indian Space Research Organisation (ISRO) or one of the corporate heavyweights that are
contributors to its space launches.
Gene plays important role in Monarch butterfly's migration
The 3,000 mile or 4,800 km mass migration of Monarch butterflies in North America is one of the
insect world's fantastic feats, with millions embarking on the arduous journey from as far north as
Canada down into Mexico and the California coast each autumn.
Scientists who scoured the genome of these colorful insects offered new insight into this annual
airborne adventure. They pinpointed a single gene related to flight muscle efficiency that plays a
major role in the Monarch butterfly's migration.
The study published in the journal Nature, also identified the gene behind the butterfly's striking
orange-and-black coloration.
"I find it amazing that these little butterflies live for months and fly thousands of miles to perform
this annual migration," said one the researchers, University of Chicago professor of ecology and
evolution Marcus Kronforst..
The number of migrating Monarchs has plummeted in recent years. Dr. Kronforst said while an
estimated one billion Monarch butterflies migrated to Mexico in 1996, that number stood at about 35
million this past winter. Threats to them include habitat loss due to human activities, pesticides that
kill milkweed and climate change, experts say.
While mainly a North American species, Monarch populations also can be found in Central America,
South America and elsewhere. Those outside North America do not migrate.

Page 22

The researchers carried out genome sequences on 92 Monarch butterflies from around the world
including non-migratory ones as well as on nine butterflies from closely related species. To study the
genetic basis for migration, they compared the genetic blueprint of migratory Monarchs to those that
do not migrate.

Page 23
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SPORTS
Yogeshwar Dutt wins gold in Asian games
Yogeshwar Dutt ended Indias 28-year-old wait for a wrestling gold medal in the Asian Games by
emerging champion in the mens freestyle 65kg category at the Dowon Gymnasium in Incheon.
The Indian, an Olympic bronze medallist, put on a stupendous show in winning 3-0 against
Zalimkhan Yusupov of Tajikistan in the title clash.
Mary Kom gets gold
M.C. Mary Kom, popularly known as "Magnificent Mary" won the first ever boxing gold for India at
the 17th Asian Games in Incheon on October 1, 2014. The five-time World Champion has punched
her way to earn 13 yellow metals so far in her illustrious career.
Boxer Sarita has offered unconditional apology for her emotional

outburst: AIBA
Facing the prospect of a ban, Indian boxer L. Sarita Devi offered an unconditional apology for
refusing to accept her bronze medal during the Asian Games presentation ceremony, the
International Boxing Association (AIBA) has said.
The Head of the Indian Mission at the Incheon Asian Games 2014 Mr Adille J Sumariwalla has
forwarded to the President of the International Boxing Association Dr Ching-Kuo Wu, a letter of
apology of Woman boxer Sarita Laishram Devi (57-60kg) who had refused to receive the bronze
medal at the Award Ceremony for the 17th Asian Games, the AIBA said in a statement.
Mrs Devi expressed an unconditional apology for her emotional outburst at the ceremony,
writing that I regret and apologise. Such an incident will never reoccur in the future, it added.
A disconsolate Sarita had refused to accept her bronze medal during the medal ceremony to protest
her controversial semifinal loss to South Korean Jina Park. Sarita (60kg) had lost the bout despite
dominating the proceedings.
Men's hockey team regain gold, India jump to ninth place
The Indian men's hockey team regained the gold medal after a gap of 16 years while the women's
4x400m relay team also picked up gold as India added four medals to jump to the ninth position in
the overall standings in the 17th Asian Games in Incheon.
The men's hockey players hogged the spotlight with the thrilling victory over arch-rivals Pakistan to
ensure a berth in the 2016 Rio Olympics.

Page 24

It turned out to be a mixed day for Indian volleyball teams as the men's team defeated Thailand 3-1
in the 5th-8th place classification match after the women suffered a 0-3 reverse to Hong Kong to
finish 8th in the competition.
Indian men, women retain kabaddi gold medals at Asiad
For a change, the Indian mens kabaddi team encountered things they hadnt in 14 years at the Asian
Games. They had won gold in the last six editions since the sport made its debut in Beijing in 1990.
But in the mens final, Iran had little respect for the sports kings.
The Indian men had to sweat and slog for a 27-25 victory for the gold a little after its women
defeated Iran 31-21 to finish with a happy double which took it to the eighth spot in the medals table.
Suddenly, Jasvir Singh, one of Indias top raiders, looked mediocre. The fitter and stronger Iranians
exposed him, trapping him twice. And, with Ajay Thakur also caught, India appeared set to lose its
hold over the event.
India finishes on 8th position in Asiad
India ended its 17th Asian Games campaign at the eighth spot on the medals tally, a drop of two
positions from the previous edition of the mega-event which drew to a close here.
India signed off with 57 medals -- 11 gold, 10 silver and 36 bronze. The tally dipped considerably
compared to the 2010 edition in Guangzhou, China.
In 2010, the country had ended sixth with 65 medals -- 14 gold, 17 silver and 34 bronze.
As expected China ended their campaign on top claiming 342 medals. The Chinese contingent
walked away with 151 gold, 108 silver and 83 bronze medals.
Hosts South Korea finished a distant second with 234 medals -- 79 gold, 71 silver and 77 bronze.
They were followed by the Japanese, who notched up 200 medals, including 47 gold, 76 silver and
77 bronze.
Sharapova wins China Open
Maria Sharapova outlasted Petra Kvitova 6-4, 2-6, 6-3 to win the China Open and return to No. 2 in
the rankings.
The fourth-seeded Sharapova won her fourth title of the year and first since capturing her fifth Grand
Slam title at the French Open in June.
With the win, shell jump over Simona Halep and Kvitova to the No. 2 spot in the rankings, behind
Serena Williams. Just five months ago, the Russian was one defeat away from dropping out of the
top 10 for the first time since 2011.

Page 25

Kvitova, the reigning Wimbledon champion, fell short of earning her second title in as many weeks.
She beat Eugenie Bouchard to win the Wuhan Open.

Page 26

IN THE NEWS (PERSONS)

Ashraf Ghani
Ashraf Ghani Ahmadzai has been sworn in as Afghanistans new President, replacing Hamid Karzai
in the countrys first democratic transfer of power since the 2001 U.S-led invasion toppled the
Taliban.
He became President of Afghanistan in a peaceful transition after a six-month election season that
ended with marathon negotiations that gave the newly created position of chief executive to his
challenger Abdullah Abdullah.
Afghanistan has now experienced its first-ever peaceful power transition in its history as outgoing
President Hamid Karzai transfers power to the new President Ashraf Ghani Ahmadzai.
Mr. Karzai had been Afghanistans only leader since 2001.
Oprah Winfrey and Harry Belafonte
Oprah Winfrey and performer-activist Harry Belafonte were among those honoured at Harvard
University at its annual celebration of African American culture.
The universitys Hutchins Center for African and African American Research presented its annual
W.E.B. Du Bois Medals to eight people at the ceremony. Other recipients included British architect
David Adjaye, civil rights hero U.S. Rep John Lewis; 12 Years a Slave director Steve McQueen,
Greys Anatomy and Scandal creator Shonda Rhimes, and movie producer Harvey Weinstein.
The medal has been awarded since 2000 and is Harvards highest honour in the field of African and
African American Studies. Ms. Winfrey also accepted a posthumous award for author and poet Maya
Angelou, whom she has called a mentor.
Martin Perl
Martin Perl, a Nobel Prize-winning physicist from Stanford University who discovered a subatomic
particle known as the tau lepton, has died at age 87.
The university said the retired professor, one of two American scientists who shared the Nobel Prize
for physics in 1995, died at Stanford Hospital.
At the time Perl discovered the tau lepton, many physicists doubted the particle that would turn out
to be a heavyweight cousin of the electron existed. He eventually proved them wrong using a new
kind of accelerator in which electrons and positrons course in opposite directions and collide.

Page 27

Selected Editorials of Importance

Issues of surrogacy
With a range of alternative medical solutions to childlessness becoming available, surrogacy has emerged as
one route for many couples. While some countries have banned the practice, commercial gestational
surrogacy, in which a woman is paid to have a baby to whom she has no genetic link, has caught on in
countries such as Mexico and India. After the first surrogate delivery in India in June 1994, India has
steadily emerged as an international destination. Relatively inexpensive medical facilities, know-how in
reproductive technology, and the availability of women, largely from poor socio-economic situations and
who are willing to take up the task, have aided the growth. Today there are thousands of clinics in India that
offer such services. From what was generally confined to close relatives or friends in altruistic mode, the
network has become extended, with payment of money to surrogate mothers becoming the norm. Services
are even being advertised. Such commercialisation of motherhood has raised ethical, philosophical, and
social questions and raised fears of the exploitation of women as baby-producers, and the possibility of
selective breeding. In several instances, complications have arisen regarding the interests and rights of the
surrogate mother, child, and intending parents. Yet, there are no clear legal provisions in place yet. The
Indian Council of Medical Research in 2005 issued guidelines for the accreditation, supervision and
regulation of surrogacy clinics, but those remain on paper. An expert committee drafted the Assisted
Reproductive Technologies (Regulation) Bill, 2010.
The Union government is now set to table in Parliament the Assisted Reproductive Technologies
(Regulation) Bill 2013. Letting single parents and foreign nationals to have children through surrogates in
India is one issue in focus. The question relating to the citizenship of children born through an Indian
surrogate and claimed by a foreign couple is one outstanding issue. Unscrupulous or mismanaged agencies
could wreak havoc with lives. Many surrogacy agencies claim they are offering a legitimate service but in
truth they operate in a grey area. The absence of appropriate legal provisions to ensure that surrogate
mothers, who often enter into loosely drafted agreements with commissioning parents, do not become
vulnerable is a serious issue. Right now, the surrogate mother could find herself with a child she did not plan
for, should the clients change their mind. On the other hand, the big worry of the intending parents would be
that the baby may not be handed over to them. A comprehensive regulatory framework and binding legal
provisions could bring order to the field, but the larger moral question whether human reproduction should
be commercialised would still remain.
(Courtesy: The Hindu)
MGNREGA much exploited, will go ahead with tweak: Govt

Amidst opposition in several quarters to its plan to tweak the rural job scheme, NDA government asserted
that it would go ahead with MGNREGA reforms as it charged that the flagship programme of the previous
UPA regime was allowed to be exploited for purely partisan purposes.
The tendencies of acquiring easy money and using government funds for political party promotion could be
curbed only when a spirited team of genuine and unbiased individuals is asked to look into the question of
reforming MNREGA, the government said.

Page 28

Citing various studies and excerpts of CAG reports on MGNREGA, it added, What is urgently required is a
thorough review of the scheme by independent organisations and individuals, essentially those who so far
have never been involved with MoRD (Ministry of Rural Development) schemes.
A note prepared by the Nitin Gadkari-led MoRD said, Unless an extremely likely network of interests is
not broken, the real picture will not emerge.
Excerpts of CAG reports and critical studies, including those done during the UPA regime and presented at
a conference called by the government, are an eye opener. These reports rarely find mention in MoRD
documents.
These reports are testimony to the fact that the scheme was allowed to be exploited for purely partisan
purposes in states like Andhra Pradesh, it said.
The governments reiteration of its stand comes two days after several leading economists urged Prime
Minister Narendra Modi to not dilute the provisions of the rural employment guarantee programme, which
provides economic security to millions of poor.
However, the ministry said it was necessary for the scheme to be converted into a popular movement aimed
at zero-unemployment in villages.
HamaraGaon-HamaraRojgar!HamaraVikas!, or similar slogans may inspire villagers to use the scheme
to evolve a collective vision for their village and, in the process, eradicate unemployment completely.
Unless this spirit is successfully inculcated, the scheme will continue to be yet another government
programme where money is doled out. Since anyway it is easy money, all participating agencies and
individuals consider nothing wrong in seeking personal benefits out of the same, the ministry said.
The government said in spite of clear evidence of rampant corruption at various places, the scheme
continues to be presented as a successful scheme.
This perhaps is due to a solid network of vested interests involving political party functionaries,
government officials, NGOs, research institutes and experts desirous of milking the scheme to their
advantage, it said.
Stating that the scheme has earned quite a bad name, the note said that under it there was lack of
genuinely demand-driven implementation mechanism (and) non-transparent functional structure.
Also, it noted, there was absolute lack of collectively thought-out development projects leading to complete
delink between requirements of the village and the activities carried out under the scheme.
The ministry said that being part of a right-based framework, the scheme could also be effectively linked
with skill development.
(Courtesy: The Indian express)

Page 29

Respite on inflation
The fall in consumer price index inflation to 6.46 per cent in September is significant for more reasons than
one. First, it is the lowest inflation number since the start of the new CPI series from January 2012. Second,
this is the fourth successive month when CPI inflation has ruled below 8 per cent, which is the Reserve Bank
of Indias target for January 2015. The latest drop, from 7.73 per cent in August, is indeed rather sharp and
takes the inflation rate closer to the RBIs 6 per cent target for January 2016. Third, the decline has taken
place notwithstanding a somewhat deficient south-west monsoon and poorly distributed rainfall, both
spatially as well as temporally. This probably suggests that the fall we are seeing is real. The fact that
inflation based on the wholesale price index has dipped to 2.38 per cent in September a 59-month low
is only further confirmation of what appears a clear trend.
It is another matter, however, whether the RBI believes that inflationary pressures have receded enough to
justify interest rate cuts. The central bank may well take the position that the current decline is not structural,
but flows out of the base effect of higher inflation during this time last year. But there is one thing the RBI
must take into account: global crude prices, which have touched about $85 a barrel (Indian basket) from the
over $105 levels three months back. This, along with a stable rupee, has enabled oil marketing companies to
reduce retail petrol prices and possibly repeat the same for diesel in the coming days. The impact of this in
tempering the publics inflationary expectations is not small. The RBI also cannot be oblivious to a
developing global bear market in most agri-commodities, which again provides reasonable insulation from
renewed inflationary pressures back home.
It is an opportune time for the Centre and the RBI to engage in a dialogue on a monetary policy framework
that balances inflation control with growth promotion objectives. Ideally, it is the Centre that should specify
an inflation target for the RBI; at the same time, the latter should have the full freedom to set interest rates or
employ other monetary measures to achieve the same. Now, it is the RBI that decides on both the inflation
target as well as policy rates without really factoring in growth concerns. We have clearly reached a point
where industrial growth at 0.4 per cent should worry our policymakers more than retail inflation at below
6.5 per cent, and possibly heading lower. The Centre must use the opportunity from falling world crude
prices to rationalise fuel subsidies and show its seriousness about fiscal consolidation. This, by itself, should
give the RBI sufficient reason to show greater monetary accommodation.
(Courtesy: Business line)

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