EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
8 EDITORIAL
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
A controversial inheritance
P.N. Bhagwati was Indias most inluential judge its time his legacy is revisited
Mending the rift
The international community must push
for a resolution of the Qatar crisis anuj bhuwania
T
he fact that Saudi Arabia, Egypt, Bahrain and the
ustice P.N. Bhagwati, who died
United Arab Emirates have handed over a list of
demands to the Qatari regime should, on the face J recently, at 95, is perhaps the
most inluential judge inde-
of it, indicate some progress in the impasse created pendent India has had. What In-
after they cut ties with Qatar. The list has not been oi- dira Gandhi is to Indian politics,
cially released, but is reported to include demands that Justice Bhagwati is to the Indian ju-
Qatar snap all but trade ties with Iran, end military co- diciary: their legacies have en-
operation with Turkey and shut down the Al Jazeera dured, having engineered a popu-
list democratisation based on
news network. It may be that many of the demands are
radical rhetoric, but at very heavy
only meant to be bargaining counters even U.S. Sec- costs to the institutions them-
retary of State Rex Tillerson, who has been running the selves.
backroom negotiation along with the Emir of Kuwait, One can see strong resonances
said they are very diicult for Qatar to meet. In any of Mrs Gandhis style in the Modi
case, such demands on the list may be more under- governments mode of functioning
standable if these countries complied with them as in their all or nothing friend or en-
emy view of politics, with com-
well. For example, in asking Qatar to disown ties with al- plete disregard for the autonomy
Qaeda and the Islamic State, Saudi Arabia, Bahrain and of institutions. Similarly, with con-
the UAE cannot ignore their own role in building up temporary standards of judicial be-
Sunni extremist groups across West Asia, sometimes in haviour, pronouncements pander-
partnership with Qatar. The UAE has a thriving business ing to the lowest common
relationship with Iran. And while the Saudi-led bloc denominator calling for the cow
to be declared the national animal,
may object to negative narratives and the platform
imposing the national anthem on
given to their dissidents on Al Jazeera and the other cinema-goers and imposing
news outlets named, it is unlikely that they will lean too thoughtless prohibition near na-
much on the internationally recognised news networks tional highways while simultan-
to close shop. The bulk of the demands, however, fo- eously displaying pusillanimity in
cusses on asking Qatar to enforce its own commitments institutionally vital cases against
from the 2014 Riyadh declaration of the Gulf Coopera- the Central government such as
Aadhaar, the Money Bill and the
tion Council (GCC) on ceasing support to extremist and
Delhi government cases. The very
terrorist groups. This indicates that a path is being condition of possibility of such
cleared for a resolution to the current crisis. The next playing fast and loose with the law
few days will be crucial in ensuring the outcome. are Justice Bhagwatis landmark in-
There are implications of this crisis that India and the terventions.
international community cannot aford to ignore.
While the action against Qatar is mainly political and Charting a way to power
Just as nationalism has now
nowhere close to the Saudi-led action on Yemen, where
emerged as the currency of con-
more than 10,000 people have already been killed, in temporary judicial populism, so-
both cases the muscle power of the regional bullies has cialist rhetoric was his path to
been allowed to prevail over a weaker nation. The treat- power. He was appointed to the Su-
ment of Qatar could well become the playbook for fu- preme Court in 1973 at the height of
ture diplomacy, which would lead to a further weaken- Mrs Gandhis ideological onslaught
ing of the international order, the rule of law and the UN on the judiciary, with her call for a
committed judiciary. The
system of conlict resolution. There are also signs that
Kesavananda Bharati judgment
this may be the precursor to a larger conlict with Iran.
This is a troubling scenario for the world, and for India
in particular with its commitment to build connectivity
and shore up oil reserves. The impact of any conlict in
the Gulf cannot be over-estimated, given Indias de-
Whos afraid of neutrinos?
pendence on oil supplies and remittances from some The India-based Neutrino Observatory would greatly advance scientiic research
eight million Indians based there. For New Delhi to con-
tinue to be as sanguine about the Qatar crisis as it ap-
peared to be a few weeks ago, when External Afairs
Minister Sushma Swaraj called it an internal matter of
the GCC, is no longer an option.
Ravi Kuchimanchi
In another court
W
hich one of us would not
have applauded Galileo in
K. Srikanth, Sai Praneeth and H.S. Prannoy January of 1610 when he
have transformed mens badminton in India trained his telescope for the irst
time on Jupiter and observed four
K
. Srikanth brought joy in two equal helpings. The dots alongside it? Within days he
24-year-old won back-to-back badminton titles in noticed that the dots seemed to be
going around Jupiter... they were its
the space of eight days, on Sunday adding the
four largest moons!
Australian Open title to the higher-rated Indonesia Today, very large telescopes
Open he had clinched on June 18. Success is not new to send us iconic images of distant
Srikanth, and in Sydney his domination of an elite ield galaxies and of faint remnants of
could be gauged from the fact that he dropped just one the light produced by the Big Bang.
game in ive matches. Even more heartening, he is part The light from the moons of Jupiter
of a cohort in Indian mens badminton, with the likes of was always falling on earth. It took a
telescope to detect it because it was
B. Sai Praneeth and H.S. Prannoy, who have been beat-
so feeble and could not be seen
ing elite players this season. For instance, Srikanth has with the naked eye. Interesting
upstaged the current World No. 1, Koreas Son Wan Ho, things, telescopes. They observe
twice in two weeks and raced past the reigning World something that is already there.
and Olympic champion, Chen Long, in Sundays inal at They do not produce what they
Sydney. He will be back in the worlds top 10 ranking observe.
this week, having also beaten World No. 4 and the top-
Just like light
most Chinese, Shi Yuqi, twice this year. In fact, Srik-
There are two other things that,
anth, who had overcome a bout of brain fever in July like light, can travel great distances
2014 to become World No. 3 a year later, has beaten all in the universe, and therefore can
the leading Chinese players. Praneeth, winner of the be usefully observed. The irst of
Singapore Open and the Thailand Open, is inally real- these are gravitational waves. Pre-
ising his potential. Interestingly, Praneeth holds a 5-2 dicted by Einsteins famous theory,
head-to-head record against Srikanth, and the latters these waves travel at the speed of
light and are produced when very
dream run is bound to increase his conidence of also
beating the best in the world. Prannoy, unbeaten in this
years Premier Badminton League and conqueror of the
legendary Lee Chong Wei and Chen Long in successive
LETTERS TO THE EDITOR
matches in the Indonesia Open this month, will also ex-
Power to punish
pect to strike it rich going ahead. In sum, Srikanth, Pra-
The privileges in legislative
neeth and Prannoy are on track for a potential podium institutions to protect the
inish in the World Championship in Glasgow in August. freedoms of speech and
With Saina Nehwal and P.V. Sindhu maintaining their expression in the House and
formidable challenge in the womens game, Indian bad- in ensuring that undue
minton now has a strong nucleus of the worlds best. inluence, pressure or
The biggest gain of late has been the consistency with coercion are not brought on
the legislature in the course
which the male shuttlers are delivering, with each be-
of its functioning were
lieving he has the game to outdo the other. This healthy constituted in the good old
competitiveness, coupled with the maturity and pa- days when sessions were
tience shown on the court of late, is paying dividends. conducted in the right spirit.
Srikanth has wisely refrained from being in attack mode But what is the situation
at will. Known for his powerful smashes, his current use now? In Parliament and our
Assemblies, crores are spent
of soft strokes and deft touches is proving very efective,
on unproductive sessions,
complementing the deep clearances from the back-
which defeat the very
hand corner. Pullela Gopi Chands role in the success of purpose of those privileges.
these players is well-known; Indonesian coach Mulyo Under these circumstances,
Handoyo too has clearly made an impact, especially in if our legislators had felt that
rallying the players to think clearly in the heat of a they were being defamed,
match. As a result, Indian shuttlers are no longer chok- they could have sought
ing against more illustrious rivals. Signiicantly, all the judicial remedy in their
individual capacity. This
leading overseas players today have lost to an Indian at
appears to be the era of
least once. On current form, at least a medal each from imposing a heavy
the mens and womens singles in this years World punishment for small
Championship is now a realistic expectation. mistakes in the guise of
mis-utilisation of the
CM
YK
NOIDA/DELHI THE HINDU
TUESDAY, JUNE 27, 2017
hibition, or prohibiting cow creating another dangerous
slaughter, or introducing uniform precedent.
civil code, or pursuing socialism Justice Bhagwati is also famous
would be immune to judicial chal-
lenge for violating the rights to
for his judicial improvisations.
Based on the idea that arbitrari-
equality and freedom. If this ness is the antithesis of inequality,
sounds rather familiar, it is because he introduced a new test to exam-
the Indian judiciary has implicitly ine violations of Right to Equality.
followed the logic of Justice Bhag- This test is however completely il-
watis dissenting opinion in recent logical, as constitutional scholar
years. In the Judges Transfer case,
he went on to explicitly support
H.M. Seervai demonstrated. Even
more famous is his pioneering
GETTY IMAGES
the appointment of judges based right to life jurisprudence in the
on their ideological predilections, Maneka Gandhi case. A negative
i.e., court packing for a committed right against the states illegal
judiciary. When the constitution- deprivation of any individuals life
had recently been delivered, in intermediate level and Public In- ality of the National Security Act, or personal liberty has since been
which the Supreme Court had terest Litigation (PIL) at the highest 1980, Mrs Gandhis successor stat- interpreted as a positive right to
dared to stand up to Mrs Gandhi level of the judiciary. For the part ute to MISA, was challenged, he got life, making it a receptacle for all
and had declared the Constitu- they played in this process, Pro- another chance to somewhat undo manner of socio-economic rights.
tions basic structure as un-amend- fessor Upendra Baxi later wrote the notoriety of the Habeas Corpus The only right it now seems to ex-
able even by her brute parliament- that the two judges remain vul- case, but he upheld this law as well. clude is the literal mandate of Art-
ary majority. In the aftermath of nerable to the charge of acts as le- In spite of such an appalling record icle 21. Another instance of care-
this judgment she superseded the gitimators of the emergency on civil liberties and such open less improvisation is his
three senior-most majority judges regime. servility to regimes in power, how unnecessary innovation of abso-
leading to their resignations, and did Justice Bhagwati acquire such a lute liability as a principle of liabil-
appointed Bhagwati and Krishna Moving to extremes heroic reputation? ity in cases of injury caused by in-
Iyer to the Supreme Court. Justice Bhagwati soon proved his herently hazardous industries.
Two key points deployed in Mrs loyalty to the Emergency regime Behind the PIL Needlessly trying to remove the
Gandhis mid-1970s attack on the much more directly: as part of the Much of Justice Bhagwatis fame few exceptions that the time-hon-
judiciary were the inaccessibility majority in ADM Jabalpur vs rests on his role in pioneering the oured principle of strict liability al-
of the legal system and its alien Shivkant Shukla, which upheld the PIL. In fact, PIL letter petitions lowed, once again Justice Bhagwati
British form. The responses were constitutionality of the draconian would initially be personally ad- was set on winning the tournament
also twofold: the expansion of legal Maintenance of Internal Security dressed to him, rather than the of competitive radicalism that his
aid and the injection of indigeneity Act (MISA), and declared that even court. This enabled him to sidestep vision of judgeship entailed, re-
in legal institutions, respectively. the right to habeas corpus would the then Chief Justices role in al- gardless of institutional costs. This
Legal aid was even declared part of not survive during the Emergency. locating cases, also leading to alleg- has been his most enduring legacy
the Emergencys lagship Twenty Justice Bhagwati was justly tar- ations of soliciting petitions. More as a role model for future judges: to
Point Programme. The two recent geted for his role during the Emer- enduringly, instead of grounding think of their judicial role instru-
judicial appointees, Justices gency after the 1977 elections. He the PIL in rules and principles, his mentally as social activists and not
Krishna Iyer and Bhagwati, enthu- soon moved to the other extreme, view of legal procedure as the en- mere jurists. A certain looseness of
siastically responded and penned and proved his loyalty to the Janata emy of justice meant that all as- legal language entered Indian ap-
successive reports proposing government by upholding its use of pects of procedure in PIL cases pellate judgments and radical rhet-
nyaya panchayats as the silver Article 356 against Congress-led were diluted, removing all checks oric became the path to power for
bullet solution to both the prob- Legislative Assemblies, a decision on judicial arbitrariness and mak- Indian judges. The value of careful
lems. The challenge of democrat- with disastrous consequences for ing it a juggernaut annihilating all judicial prose declined as idelity to
ising access to courts could have Indian federalism. He did another procedure. The dilution of locus law no longer mattered, what
been met through an expansion of somersault after Mrs Gandhi re- standi could have been grounded mattered was the show of ideolo-
legal aid. Instead the solution was turned to power in 1980. He was in some notion of representation gical commitment.
seen as creating parallel informal the only judge in the Minerva Mills standing. In its absence, most PILs Justice Bhagwatis legacy lives
institutions, diluting judicial pro- case to uphold her Emergency era are iled by citizens unconnected on. But it is high time we revisit it.
cedure by short-circuiting basic amendment immunising any stat- to any issue. In the Bandhua Mukti
principles of adjudication. These ute implementing a directive prin- Morcha case, he diluted eviden-
Anuj Bhuwania is a lawyer and an
visions of paternalistic deprofes- ciple from judicial review for viol- tiary standards in PIL cases to an anthropologist and the author of
sionalised indigenous justice ating Articles 14 and 19, thus giving extent that proved catastrophic in Courting the People: Public Interest
provided the basis for future devel- primacy to directive principles the long run. He also was the irst Litigation in post-Emergency India.
opments such as Lok Adalats at the over fundamental rights. Accord- judge to openly legislate in a PIL re- He teaches at South Asian University,
New Delhi
lowest level, tribunalisation at the ingly, a statute implementing pro- lating to inter-country adoptions,
heavy objects such as black holes serve muon neutrinos that are con- causes radioactivity and have com-
collide. Gravitational waves were tinuously produced in the pared it with the dangers of having
GETTY IMAGES/ISTOCKPHOTO
irst detected in September 2015 by atmosphere when cosmic rays a nuclear power plant or radioact-
the Laser Interferometer Gravita- strike the earth. Since every type of ive material in the neighbourhood.
tional-Wave Observatory (LIGO). As matter particle has an anti-matter This cannot be true since the neut-
the waves passed, LIGO measured partner particle associated with it, rinos, whether they are naturally
that they expanded and contracted there are also anti-neutrinos that occurring in the atmosphere or
the earth a tiny bit for a fraction of a the INO can observe. Anti-neutri- from the sun, or are emitted by far
second. The measurement told us nos also come in three lavours and away man made nuclear reactors
that the colliding black holes were can oscillate from one to the other. and sent in beams of neutrinos with
30 times the mass of the sun, 1.3 bil- biggest revolutions in our know- An important question in the mys- few GeV energy, are very feeble and
lion light years away, and during ledge of the laws of physics that gov- tery of trying to piece together the weakly interacting particles that we
the collision, the mass of three suns ern the universe. Raymond Davis laws of physics is: do anti-neutrinos cant even see or feel without the
just vanished to produce the en- and John Bahcall detected that only oscillate or lip their lavours at ex- help of an observatory. Beams of
ergy of the gravity wave that spread half the neutrinos that the sun was actly the same rate as neutrinos do, neutrinos are being sent to the
across the universe. However, LIGO emitting towards the earth were ac- or are there slight diferences in NOvA neutrino detector in the U.S.
did not produce the waves that it tually reaching us. their rates? In other words, do laws and to the T2K neutrino detector in
observed. The reason? As they travelled the of physics treat matter and anti- Japan every day. Moreover, being
They were produced by cataclys- distance from the sun to the earth, matter exactly the same way as far the lightest matter particles, the
mic events, and we wouldnt want the neutrinos were changing from as the neutrinos are concerned or neutrinos do not decay into any
to be anywhere near them, but ob- electron-neutrino type that the sun do they treat them diferently? other particles, as everything else
serving them through LIGO is like was emitting to muon-neutrino While the INO will not by itself is heavier so they are not like
receiving a postcard from that col- type, and thus escaping detection. provide an answer to this question, uranium which decays radioact-
lapsing, tragic part of the universe All the laws and forces of nature its measurements will by determ- ively into smaller atoms. All the INO
that even light cannot escape from. that we know of, other than gravita- ining the order of the neutrino would do is to provide the lens to
The only other particles that can tion, are described by what physi- masses and thereby help other observe neutrinos as they are too
zip through the universe at speeds cists call the Standard Model. It pre- neutrino experiments that are feeble or faint to be detected by the
very close to that of light are called dicted that neutrinos, which come already under way or being built in naked eye. It does not create a radi-
neutrinos. The biggest nuclear re- under three types or lavours tau- other parts of the world. The INO, ation hazard or put us in harms
actor that most life on earth derives neutrino, electron-neutrino and by observing the rates at which way. While we should ensure that
energy from is the sun. Like all nuc- muon-neutrino would not oscil- neutrinos and anti-neutrinos oscil- the tunnel is dug with proper envir-
lear reactors, in addition to giving late from one lavour to another. late, will make a substantial contri- onmental safeguards and the pro-
out energy (heat and light), the sun The discovery that they do meant bution to the quest to unravel the ject has various clearances, raising
also emits neutrinos. We have all that the Standard Model or the ba- secrets of the ultimate laws of phys- the spectacle of radiation hazards
seen sunlight. Can we also observe sic laws of physics had to be further ics. and comparing it with nuclear or
the billions of neutrinos the sun modiied. Thus, through the neut- thermal power plants is spreading
emits every second? rino detectors we are actually ob- Nothing to fear false fears and is unscientiic.
In the mid-1960s, when solar serving the fundamental laws of Unfortunately, some activists and
neutrinos were observed through physics at the cutting edge. political parties in Tamil Nadu have Ravi Kuchimanchi is the founder of the
the irst neutrino telescopes, it The proposed India-based Neut- made baseless allegations that the non-proit Association for Indias
quietly unleashed one of the rino Observatory (INO) aims to ob- INO, which is just like a telescope, Development (AID)
Letters emailed to letters@thehindu.co.in must carry the full postal address and the full name or the name with initials.
freedom of expression. The Madhya Pradesh How smart? not be fully correct (Last combined efort with no
legislature has enormous (Restricting protests, The editorial, Being wicket stand, June 26). superstar ego.
powers, but these should stiling descent, June 26). smart, and the Magazine That the Augean stables of Balasubramaniam Pavani,
not be at the expense of the While police iring is article, A less concrete the cricketing body need Secunderabad
liberty of critics. Criticism condemnable, she should solution? (both June 25) cleaning has been taken
must be taken by our have criticised the violent should be eye-openers to cognisance of and is under A shuttler to watch
representatives in the right incidents which led to many the oicials concerned. One the supervision of the Kidambi Srikanth has
spirit, who must try and see police personnel being only wishes that some of the Supreme Court. There may undoubtedly been in
whether any of those injured. She also tries to ideas, such as using raw data be a few setbacks to Indian devastating form of late,
levelled are right. justify the visits of on pedestrian movement cricket in the form of scalping many a famous
Constructive criticism is the Opposition political leaders and ensuring a base of Ramachandra Guha and name in the badminton
backbone of any democracy to protest sites. reliable civic services, are Anil Kumble stepping down circuit (Sport Srikanths
(Editorial Whose These are only for political ensured in the smart city but this does not mean its cup of joy overlows, June
privilege? June 26) gains. Has Ms. Hasan project. I am deeply the end. 26). His feats have given
T.S.N. Rao, forgotten how people were concerned about the lack of The silver lining is the way sports lovers plenty to cheer
Bheemavaram, Andhra Pradesh injured in police action in encroachment-free the Indian cricket team is about. Credit must also be
Darjeeling only because it is footpaths for pedestrians to progressing. We produce given to his mentor, Gopi
Dissent vs. violence happens to be an walk on safely, comfortably, great batsmen but always Chand, for the tough
Zoya Hasan conveniently Opposition-ruled State? and with dignity. The vision seem to struggle to groom grooming his academy
forgets to mention the Freedom of expression, for smart cities needs to be fast bowlers and quality gives. Consequently, players
violence resorted to by dissent and the right to done in consultation with spinners. As far as match such as Srikanth and
unscrupulous elements protest are essential in a those who live in these results are concerned, let us Prannoy are now hitting the
posing as farmers by democracy but people areas. be mature enough not to headlines as much as Saina
burning private properties taking the law into their B.R. Sant, link failures to Board Nehwal and Sindhu are.
and stoning buses with hands and subjecting Hyderabad politics. A word about Indian badminton is on the
passengers, but instead innocent people to womens cricket. Indian ascendance.
condemns the governments hardships should be Reforms in sport women have begun well in Vijai Pant,
action in imposing Section severely dealt with. To say that there has been a their World Cup campaign Hempur, Uttarakhand
144 of the CrPC and other M. Amarender Reddy, total failure in the by beating England a more letters online:
restrictions in Mandsaur, Secunderabad functioning of the BCCI may classic case of it being a www.hindu.com/opinion/letters/
A ND-ND
 EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

THE HINDU
TUESDAY, JUNE 27, 2017
NOIDA/DELHI

EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
OPED 9

The pathology of lynching An old new tax

There is blood at the root of the Hindutva movement whenever it refuses to see The new GST regime is a work in progress, it must be ixed urgently
Muslims and other minorities as fully Indian

Puja Mehra

Tabish Khair Sixteen years in the making, India is fi-

nally set to roll out the Goods and Ser-
I first heard the famous Billie Holiday vices Tax (GST) from July 1. Prime Min-
version of the song Strange fruit (1939) ister Narendra Modi will inaugurate the
quite late, as I had grown up in a small new indirect tax at the stroke of mid-
town of Bihar, where the choice of mu- night in Parliament, taking a leaf out of
sic was rather limited. I must have been Jawaharlal Nehrus book. A moment
in junior college then. By then I had comes, which comes but rarely in his-
read of the song, and the tragic history tory, when we step out from the old to

GETTY IMAGES/ISTOCKPHOTO
behind it; I still recall the tingling feeling new, Nehru had said while ringing in
as Billie Holidays powerful rendition lit- Indias independence. The two events
erally made my hair stand on end: are obviously not comparable non-
Southern trees bear a strange fruit, etheless, the GSTs introduction could
blood on the leaves and blood at the Battling the vigilantes: A protest at Jantar Mantar, New Delhi, in October 2015 against have been a rare transition, but is not.
root, the Dadri lynching SUSHIL KUMAR VERMA *
The GST, to be collected on
Black bodies swinging in the south- everything from matchboxes to gold,
ern breeze, of the country in the name of justice; other; the state is there to break the will touch everyone. A modern tax sys-
Strange fruit hanging from the poplar the mob has already condemned the endless cycles of personal, family and tem should be fair, uncomplicated,
trees. guilty because of who they are and group revenge that have been at the transparent and easy to administer. It soaps and washing soaps, but at 28% on vised the GST. The GST Council, made
Described by record producer Ahmet how they look; the authorities look the root of violence in all traditional societ- must yield revenues sufficient to cover detergents. Some moviegoers will pay up of Ministers from State and Central
Ertegun as the beginning of the civil other way, and later describe it as ies. That way lies chaos! Any govern- the cost of government services and 18% GST and, others, on the same governments, scrambled elements
rights movement, this powerful song simply a law and order breakdown. (It ment that fails to see this does India the public goods. Indias GST does not pass movie, 28%, depending on the price of from the current indirect taxation sys-
was written as a poem by Abel Meero- was just an argument over a train seat, greatest disservice possible, for it en- these tests convincingly. It is too com- cinema ticket not exactly the prom- tem into the GST, tinging the new with
pol, and first performed in public by his we were told after the recent lynching ables the hollowing out of governance plex. We must collect it at fewer and ised One nation, one tax. the old, guided by old habits, not
wife (a singer) in 1937. of a 17-year-old boy in Haryana.) in India, and hence the rise of anarchy. lower rates, and on more items. healthy appetite for reform.
Meeropol was writing about more There is no attempt to look at the lar- The GST has been fixed for more Status quo wins Status quo has strong appeal in real
than 1,500 African Americans (Black ger disease of hatred and prejudice be- A strange and bitter crop than 1,200 categories of goods and ser- The GST, as its being rolled out, is an life, Prime Minister Manmohan Singh
bodies) lynched by white American hind such incidents. Because, of Meeropols poem, as sung by Billie Holi- vices consumed in the country at outcome of a political process in which had said of the resistance to 1991s eco-
mobs around the turn of the 20th cen- course, as the first stanza of the song day (and, later, by singers like Sting, Di- 0.25%, 3%, 5%, 12%, 18% and 28%, along 29 States and seven Union Territories nomic reforms. Chief Economic Ad-
tury. In particular, he was reacting to a tells us, for there to be blood on the ana Ross and Annie Lennox), ends with with cesses to be imposed additionally agreed to give up their right to impose visor Arvind Subramanians summation
photo taken by Lawrence Beitler of the leaves, there also has to be blood at a memorable line: Here is a strange in some cases. The present taxation sys- sales tax on goods (VAT) and the Centre of the process that delivered the GST
lynching of Thomas Shipp and Abram the root. and bitter crop. tem has not been given the boot yet. gave up its right to impose excise and suggests that decades later, attitudes
Smith on August 7, 1930: these two There is blood at the root of the This image alludes to the longer con- Electricity, real estate and alcohol will services taxes. In the amended federal have not changed: On the GST, the
African Americans were accused, Hindutva movement whenever it re- sequences of such acts of vigilante remain in it, exempt from the GST. Pet- arrangement, they will each receive a political pressures from the States to
without any evidence, of murdering a fuses to see Muslims and other minorit- justice: it is not just the tragic break- roleum products will be in both sys- share of the GST collected nationally. keep rates low and simple were min-
white man and raping his companion, ies as fully Indian. In this sense, to lynch down of law in that particular instant; it tems, old and new, but with zero-rate Instead of every State imposing a tax, imal. The general desire is for the struc-
and they were lynched by a crowd of ra- a man on the suspicion (or, for that mat- is also the sowing of a bitter crop that GST. Over half the items will be taxed at they will sit together and decide what ture to mimic the complicated status
cists in front of the local police. ter, even the evidence) of eating beef is will return again and again. I shudder to 18% or 28% GST, the steepest rates in that tax rate should be. Individually, quo. There was insufficient concern for
the logical outcome of statements like think of the consequences of the bitter- the multi-rate structure. This skew viol- States see this as an erosion of their fin- the implied consequences for efficiency
Violence by vigilante groups those dismissing the Taj Mahal as not an ness of a minority population of 180 ates the basic principle of revenue col- ancial autonomy, even if Union Finance and simplification.
You can see the connections to the kind Indian building. There is no point pre- million people in India, more so as the lection: the lower the taxation rate, the Minister Arun Jaitley, the chief architect The lingering imperfections, and dis-
of murders of Muslims that have taken tending otherwise. And I suspect that it laws for which such lynchings are tak- higher the compliance. An opportunity of the consensus, described it as, the regard for economic principles, will
place recently in North India violence is not the so-called Hindutva loony ing place do not even represent the be- is lost to collect more tax revenues, states and Centre pooling their powers limit the GSTs transformational poten-
that, actually, also connects to a longer fringe that pretends otherwise; it is all liefs of the majority of Hindus. while at the same time, taking a little and sovereignty. tial. Small firms, unlike industry cham-
history of the murder of Dalits and ab- the others who refuse to countenance But that is the silver lining in our dark load off the consumers pocket. The constitutional guarantee that the bers and lobbies, are not vocal, and
origines by mobs of casteist Hindus. the true nature of the fruits hanging cloud, just as it was the silver lining in More than sound economic, or polit- Centre will fully reimburse the trans- therefore not easily heard. They are
Yes, I allude specifically to such viol- from our beautiful and historical Indian the tumultuous clouds of lynching in ical, logic, the GST seems driven by the itional losses did not fully address the concerned about the number of man
ence. The lynching of a (Muslim) police trees. the American south a century ago: Abel deciding authorities discretion. The States insecurities. The States insisted hours the new reporting requirements
officer by (Muslim) separatists in Srin- The problem with such blindness is Meeropol, the writer of Strange Fruit, GST rate for gold, a luxury good, is on keeping the GSTs rate structure as will extort. These should be taken on
agar is by definition a criminal act, and that it can end up hollowing out the rule was not an African American. He was lower than that for matchboxes. The close as possible to the old system. A board. The GST Council must show
its perpetrators will be prosecuted by of law and order. The Indian govern- Jewish and a socialist who believed in tax incidence is the same in the GST on GST regime resembling the old tax sys- sensitivity to transitional challenges. A
the government as required. But viol- ment has to act decisively and visibly order, equality and justice. He was environment-friendly hybrid vehicles tem cannot be a low, single-rate GST. hotline among its members, as an in-
ence by vigilante groups in the name of against lynching and mob violence be- moved not because he was Black, but and fossil fuel-guzzling SUVs. In the ex- The options narrowing to a delayed or stantaneous problem-solving mechan-
the law is another matter because it cause, if it fails to do so, it fails to gov- because he was human and humane. I tant system, the effective rate for guzz- an imperfect GST, the Centre chose to ism, may smoothen the transition. In-
seeks not just to attack the state but also ern. And if it fails to govern long believe that India contains many mil- lers is significantly higher than that for defer to the States collective opinion. creasing simplicity and reducing the
to circuitously involve it in its own de- enough, there might not be much left to lions of Abel Meeropols, and that they hybrids. This carbon tax on SUVs, The result: far from simple or neat, the complexities remains a promise made,
mise. govern. will make their voices heard. popular with politicians, is being with- new indirect tax is a multitude of rates, not kept.
These are the elements: rumour and Law and order are there to stop cit- drawn. cesses and exemptions.
hearsay lead to a mob breaking the law izens from inflicting justice on each Tabish Khairs latest novel is Jihadi Jane The GST will be imposed at 18% on So, politicians, not tax experts, de- Puja Mehra is a Delhi-based journalist

CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC

SINGLE FILE FROM ARCHIVES

An antidote to hate FIFTY YEARS AGO JUNE 27, 1967

When a dictionary has to be ignored

Potter provides an escape into a world Mr. Swaran Singh, Minister for External Affairs, advised agit-
that is full of wizards, and yet so human ated members of the Lok Sabha to-day [ June 26, New Delhi] to
ignore the etymology of Pakistan as given by the Oxford
Radhika Santhanam Dictionary. The Minister, who was answering a barrage of
Two decades later, the magic questions from Mr. A.B. Vajpayee and others, confirmed that
lingers on. On the 20th an- the dictionary had given the etymology of Pakistan as P
niversary of the release of standing for Punjab, A for the Afghan frontier, K for Kashmir
Harry Potter and the Philosoph- and istan for parts of Baluchisan where Muslims predomin-
ers Stone, social media is ated. Mr. Swaran Singh characterised the etymology as amaz-
awash with nostalgia. While ing and ridiculous on the face of it. We should brush it
adults reminisce about how aside and not devote too much attention to it, he said. Mr.
they acquired their irst Potter Swaran Singh said: We know Pakistan is a Persian word
WIKIMEDIA COMMONS

book, children trot to parties which means land of Pak., that is, The land of the pure. The
in long black robes and roun- way in which the Oxford Dictionary has given the etymology is
ded glasses. The Gryindor amazing. Earlier, Mr. Vajpayee asked whether the dictionary
versus Slytherin war has tran- had defined Pakistan as a country which included Kashmir
scended Hogwarts and and whether the publishers had done it under pressure from
entered cyberspace. But what the Pakistan Government.
explains this need not just for
children but also the most intelligent-sounding adults to utter A HUNDRED YEARS AGO JUNE 27, 1917
gibberish, try on droopy Sorting Hats, and wave around wands CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
that unleash no magic?
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
The last mails.
It is not as though the prose is classic. Descriptive in the CONCEPTUAL ABSTRACT The postal authorities [in Bombay] have recovered sixteen
most pedestrian way is how one writer put it. Neither is the Conditionality mail bags of the S.S. Mongolia [on June 26]. Of these six were
genre of fantasy iction new: from Catherine Fisher to Philip
Pullman and C.S. Lewis, bookshelves over the centuries have
Economics Good news on the Zika front picked up at Alibag, six on the Bunder, one out at sea, one at
Colaba and two were recovered by the Naval authorities. It is
been illed with tomes on witchcraft and wizardry. But under The imposition of strict expected that some more would be found. All mail bags of the
what genre can we clump the Potter series? School stories? conditions on borrowing People with a history of dengue infection may not steamer were on deck at the time of accident and as the vessel
Horror? Childrens iction? Adult iction? Romance? Mytho- countries by international necessarily be at a greater risk of Zika infection went down some of the bags which were light floated on sea
logy? lenders like the Interna- and were picked up or washed ashore. The contents of sixteen
Then theres Harry himself, a wimpy protagonist with tional Monetary Fund and R. Prasad may suggest that pregnant bags with the exception of newspaper packets which have
glasses and a scar, with no extraordinary powers (discounting the World Bank. Condi- Dengue has four virus women with previous ex- been reduced to rolls of pulp are in fairly good condition. After
the virtue of gallantry exhibited with the help of his friends, tionality is aimed at en- types (serotypes) that posure to dengue virus they have been dried at the Post Office they will be delivered
and what he inherited at birth). Harry Potter is not your typical couraging borrowing show distinct variation may have limited Zika to the addresses in due course.
macho hero: neither is he strikingly handsome like Malfoy nor countries to implement within themselves. While viremia [amount of virus]
remarkably intelligent like Hermione nor steadfastly loyal and serious structural reforms infection by one serotype and less tendency to have
unpredictable like Snape. Few rate him as their favourite that can improve their eco- results in a lifelong im- invasion of the central CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
character. nomy as well as their cred- munity against it, infec- nervous system, the au-
And yet here we are in the 21st century with a new literary itworthiness. Since inter- tion by a different one res- thors conclude. DATA POINT
idol: an unlikely hero who is as popular as was Sherlock national lending is tied to ults in an increased However, when the tests Results of another
Holmes or Hercule Poirot. fulfilling predetermined infectivity and more were carried out directly study carried out among
What works is perhaps precisely what critics think doesnt. conditions, it is believed severe clinical manifesta- on the macaques, they Zika-infected patients with
The Potter series may be a pastiche of styles, but that pastiche that conditionality can be tions. This kind of aggrav- produced completely dif- pre-existing dengue infec-
is delectable for most. Theres something for everyone: for the used as an effective tool to ation is called antibody- ferent results. tion also did not show in-
owl or elf-lovers, for the nerds, for the lovers of action, ro- enforce tough economic dependent enhancement Compared with creased infectivity or an
mance, and syrupy endings. The series contains all the ele- reforms. Critics have ar- (ADE). macaques that were not enhanced severity of Zika.
ments of stories that humans have ever told and cherished. gued that the conditions However, in the case of already infected with The results, published in
Unremarkable Harry could be any of us and that makes him re- for borrowing imposed on the Zika virus, people in- dengue, the four did not the journal Clinical Infec-
latable. Not to forget how well Rowling knows her characters countries are influenced fected with any of the four either show any increase tious Diseases, were based
and how well she makes us believe in a world that doesnt ex- primarily by politics, dengue serotypes are said in the amount of Zika on 65 patients with acute
ist. rather than any genuine to be at an increased risk virus. Neither did the dis- febrile illness (45 patients
Rowling also incorporates modern-day themes in her craft: intent to improve the bor- of infectivity and clinical ease worsen in them. positive for Zika and 20
racism, feminism, diversity. I remember a quiz that was popu- rowers economic manifestations due to patients positive for
lar once on Facebook: are you as feminist as Hermione? At a condition. ADE. Increased immunity dengue type-2) between
time when prejudice and hate are at their peak, for many Two studies published On the contrary, their pre- January and June 2016.
people, comfort comes from loating into a world that is full of recently have shown that vious exposure led to a re- The researchers found
wizards and yet so human, a world that is so alien and yet so CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC this is not true. The first duction in the amount of no difference in Zika viral
close to our hearts. The Potter series may not galvanise minds, one, published in Nature Zika virus and faster clear- load between those with
MORE ON
3
it might not make us literary experts. It might even be surpris- Communications, found ance. There were changes previous dengue infection
ing that many crave magic and fantasy in a world that is striv- THE WEB an enhancement of Zika in the immune systems and those without it. All
ing to be more secular, rational, and scientiic. Yet, the story of when tests were carried response but that did not Zika-infected patients re-
the boy who lived lives on and we can only guess why. When International crickets out on cells taken from lead to an increased covered after receiving re-
good triumphs over evil, we are all overjoyed, for thats ulti- latest rule explained four rhesus macaques infectivity. commended supportive
mately our hope for the world. http://bit.ly/CricICC with dengue immunity. Results from our work therapy.
CM A ND-ND
YK
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
8 EDITORIAL
EEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
A controversial inheritance
P.N. Bhagwati was Indias most inluential judge its time his legacy is revisited
Mending the rift
The international community must push
for a resolution of the Qatar crisis anuj bhuwania
T
he fact that Saudi Arabia, Egypt, Bahrain and the
ustice P.N. Bhagwati, who died
United Arab Emirates have handed over a list of
demands to the Qatari regime should, on the face J recently, at 95, is perhaps the
most inluential judge inde-
of it, indicate some progress in the impasse created pendent India has had. What In-
after they cut ties with Qatar. The list has not been oi- dira Gandhi is to Indian politics,
cially released, but is reported to include demands that Justice Bhagwati is to the Indian ju-
Qatar snap all but trade ties with Iran, end military co- diciary: their legacies have en-
operation with Turkey and shut down the Al Jazeera dured, having engineered a popu-
list democratisation based on
news network. It may be that many of the demands are
radical rhetoric, but at very heavy
only meant to be bargaining counters even U.S. Sec- costs to the institutions them-
retary of State Rex Tillerson, who has been running the selves.
backroom negotiation along with the Emir of Kuwait, One can see strong resonances
said they are very diicult for Qatar to meet. In any of Mrs Gandhis style in the Modi
case, such demands on the list may be more under- governments mode of functioning
standable if these countries complied with them as in their all or nothing friend or en-
emy view of politics, with com-
well. For example, in asking Qatar to disown ties with al- plete disregard for the autonomy
Qaeda and the Islamic State, Saudi Arabia, Bahrain and of institutions. Similarly, with con-
the UAE cannot ignore their own role in building up temporary standards of judicial be-
Sunni extremist groups across West Asia, sometimes in haviour, pronouncements pander-
partnership with Qatar. The UAE has a thriving business ing to the lowest common
relationship with Iran. And while the Saudi-led bloc denominator calling for the cow
to be declared the national animal,
may object to negative narratives and the platform
imposing the national anthem on
given to their dissidents on Al Jazeera and the other cinema-goers and imposing
news outlets named, it is unlikely that they will lean too thoughtless prohibition near na-
much on the internationally recognised news networks tional highways while simultan-
to close shop. The bulk of the demands, however, fo- eously displaying pusillanimity in
cusses on asking Qatar to enforce its own commitments institutionally vital cases against
from the 2014 Riyadh declaration of the Gulf Coopera- the Central government such as
Aadhaar, the Money Bill and the
tion Council (GCC) on ceasing support to extremist and
Delhi government cases. The very
terrorist groups. This indicates that a path is being condition of possibility of such
cleared for a resolution to the current crisis. The next playing fast and loose with the law
few days will be crucial in ensuring the outcome. are Justice Bhagwatis landmark in-
There are implications of this crisis that India and the terventions.
international community cannot aford to ignore.
While the action against Qatar is mainly political and Charting a way to power
Just as nationalism has now
nowhere close to the Saudi-led action on Yemen, where
emerged as the currency of con-
more than 10,000 people have already been killed, in temporary judicial populism, so-
both cases the muscle power of the regional bullies has cialist rhetoric was his path to
been allowed to prevail over a weaker nation. The treat- power. He was appointed to the Su-
ment of Qatar could well become the playbook for fu- preme Court in 1973 at the height of
ture diplomacy, which would lead to a further weaken- Mrs Gandhis ideological onslaught
ing of the international order, the rule of law and the UN on the judiciary, with her call for a
committed judiciary. The
system of conlict resolution. There are also signs that
Kesavananda Bharati judgment
this may be the precursor to a larger conlict with Iran.
This is a troubling scenario for the world, and for India
in particular with its commitment to build connectivity
and shore up oil reserves. The impact of any conlict in
the Gulf cannot be over-estimated, given Indias de-
Whos afraid of neutrinos?
pendence on oil supplies and remittances from some The India-based Neutrino Observatory would greatly advance scientiic research
eight million Indians based there. For New Delhi to con-
tinue to be as sanguine about the Qatar crisis as it ap-
peared to be a few weeks ago, when External Afairs
Minister Sushma Swaraj called it an internal matter of
the GCC, is no longer an option.
Ravi Kuchimanchi
In another court
W
hich one of us would not
have applauded Galileo in
K. Srikanth, Sai Praneeth and H.S. Prannoy January of 1610 when he
have transformed mens badminton in India trained his telescope for the irst
time on Jupiter and observed four
K
. Srikanth brought joy in two equal helpings. The dots alongside it? Within days he
24-year-old won back-to-back badminton titles in noticed that the dots seemed to be
going around Jupiter... they were its
the space of eight days, on Sunday adding the
four largest moons!
Australian Open title to the higher-rated Indonesia Today, very large telescopes
Open he had clinched on June 18. Success is not new to send us iconic images of distant
Srikanth, and in Sydney his domination of an elite ield galaxies and of faint remnants of
could be gauged from the fact that he dropped just one the light produced by the Big Bang.
game in ive matches. Even more heartening, he is part The light from the moons of Jupiter
of a cohort in Indian mens badminton, with the likes of was always falling on earth. It took a
telescope to detect it because it was
B. Sai Praneeth and H.S. Prannoy, who have been beat-
so feeble and could not be seen
ing elite players this season. For instance, Srikanth has with the naked eye. Interesting
upstaged the current World No. 1, Koreas Son Wan Ho, things, telescopes. They observe
twice in two weeks and raced past the reigning World something that is already there.
and Olympic champion, Chen Long, in Sundays inal at They do not produce what they
Sydney. He will be back in the worlds top 10 ranking observe.
this week, having also beaten World No. 4 and the top-
Just like light
most Chinese, Shi Yuqi, twice this year. In fact, Srik-
There are two other things that,
anth, who had overcome a bout of brain fever in July like light, can travel great distances
2014 to become World No. 3 a year later, has beaten all in the universe, and therefore can
the leading Chinese players. Praneeth, winner of the be usefully observed. The irst of
Singapore Open and the Thailand Open, is inally real- these are gravitational waves. Pre-
ising his potential. Interestingly, Praneeth holds a 5-2 dicted by Einsteins famous theory,
head-to-head record against Srikanth, and the latters these waves travel at the speed of
light and are produced when very
dream run is bound to increase his conidence of also
beating the best in the world. Prannoy, unbeaten in this
years Premier Badminton League and conqueror of the
legendary Lee Chong Wei and Chen Long in successive
LETTERS TO THE EDITOR
matches in the Indonesia Open this month, will also ex-
Power to punish
pect to strike it rich going ahead. In sum, Srikanth, Pra-
The privileges in legislative
neeth and Prannoy are on track for a potential podium institutions to protect the
inish in the World Championship in Glasgow in August. freedoms of speech and
With Saina Nehwal and P.V. Sindhu maintaining their expression in the House and
formidable challenge in the womens game, Indian bad- in ensuring that undue
minton now has a strong nucleus of the worlds best. inluence, pressure or
The biggest gain of late has been the consistency with coercion are not brought on
the legislature in the course
which the male shuttlers are delivering, with each be-
of its functioning were
lieving he has the game to outdo the other. This healthy constituted in the good old
competitiveness, coupled with the maturity and pa- days when sessions were
tience shown on the court of late, is paying dividends. conducted in the right spirit.
Srikanth has wisely refrained from being in attack mode But what is the situation
at will. Known for his powerful smashes, his current use now? In Parliament and our
Assemblies, crores are spent
of soft strokes and deft touches is proving very efective,
on unproductive sessions,
complementing the deep clearances from the back-
which defeat the very
hand corner. Pullela Gopi Chands role in the success of purpose of those privileges.
these players is well-known; Indonesian coach Mulyo Under these circumstances,
Handoyo too has clearly made an impact, especially in if our legislators had felt that
rallying the players to think clearly in the heat of a they were being defamed,
match. As a result, Indian shuttlers are no longer chok- they could have sought
ing against more illustrious rivals. Signiicantly, all the judicial remedy in their
individual capacity. This
leading overseas players today have lost to an Indian at
appears to be the era of
least once. On current form, at least a medal each from imposing a heavy
the mens and womens singles in this years World punishment for small
Championship is now a realistic expectation. mistakes in the guise of
mis-utilisation of the
CM
YK
NOIDA/DELHI THE HINDU
TUESDAY, JUNE 27, 2017
hibition, or prohibiting cow creating another dangerous
slaughter, or introducing uniform precedent.
civil code, or pursuing socialism Justice Bhagwati is also famous
would be immune to judicial chal-
lenge for violating the rights to
for his judicial improvisations.
Based on the idea that arbitrari-
equality and freedom. If this ness is the antithesis of inequality,
sounds rather familiar, it is because he introduced a new test to exam-
the Indian judiciary has implicitly ine violations of Right to Equality.
followed the logic of Justice Bhag- This test is however completely il-
watis dissenting opinion in recent logical, as constitutional scholar
years. In the Judges Transfer case,
he went on to explicitly support
H.M. Seervai demonstrated. Even
more famous is his pioneering
GETTY IMAGES
the appointment of judges based right to life jurisprudence in the
on their ideological predilections, Maneka Gandhi case. A negative
i.e., court packing for a committed right against the states illegal
judiciary. When the constitution- deprivation of any individuals life
had recently been delivered, in intermediate level and Public In- ality of the National Security Act, or personal liberty has since been
which the Supreme Court had terest Litigation (PIL) at the highest 1980, Mrs Gandhis successor stat- interpreted as a positive right to
dared to stand up to Mrs Gandhi level of the judiciary. For the part ute to MISA, was challenged, he got life, making it a receptacle for all
and had declared the Constitu- they played in this process, Pro- another chance to somewhat undo manner of socio-economic rights.
tions basic structure as un-amend- fessor Upendra Baxi later wrote the notoriety of the Habeas Corpus The only right it now seems to ex-
able even by her brute parliament- that the two judges remain vul- case, but he upheld this law as well. clude is the literal mandate of Art-
ary majority. In the aftermath of nerable to the charge of acts as le- In spite of such an appalling record icle 21. Another instance of care-
this judgment she superseded the gitimators of the emergency on civil liberties and such open less improvisation is his
three senior-most majority judges regime. servility to regimes in power, how unnecessary innovation of abso-
leading to their resignations, and did Justice Bhagwati acquire such a lute liability as a principle of liabil-
appointed Bhagwati and Krishna Moving to extremes heroic reputation? ity in cases of injury caused by in-
Iyer to the Supreme Court. Justice Bhagwati soon proved his herently hazardous industries.
Two key points deployed in Mrs loyalty to the Emergency regime Behind the PIL Needlessly trying to remove the
Gandhis mid-1970s attack on the much more directly: as part of the Much of Justice Bhagwatis fame few exceptions that the time-hon-
judiciary were the inaccessibility majority in ADM Jabalpur vs rests on his role in pioneering the oured principle of strict liability al-
of the legal system and its alien Shivkant Shukla, which upheld the PIL. In fact, PIL letter petitions lowed, once again Justice Bhagwati
British form. The responses were constitutionality of the draconian would initially be personally ad- was set on winning the tournament
also twofold: the expansion of legal Maintenance of Internal Security dressed to him, rather than the of competitive radicalism that his
aid and the injection of indigeneity Act (MISA), and declared that even court. This enabled him to sidestep vision of judgeship entailed, re-
in legal institutions, respectively. the right to habeas corpus would the then Chief Justices role in al- gardless of institutional costs. This
Legal aid was even declared part of not survive during the Emergency. locating cases, also leading to alleg- has been his most enduring legacy
the Emergencys lagship Twenty Justice Bhagwati was justly tar- ations of soliciting petitions. More as a role model for future judges: to
Point Programme. The two recent geted for his role during the Emer- enduringly, instead of grounding think of their judicial role instru-
judicial appointees, Justices gency after the 1977 elections. He the PIL in rules and principles, his mentally as social activists and not
Krishna Iyer and Bhagwati, enthu- soon moved to the other extreme, view of legal procedure as the en- mere jurists. A certain looseness of
siastically responded and penned and proved his loyalty to the Janata emy of justice meant that all as- legal language entered Indian ap-
successive reports proposing government by upholding its use of pects of procedure in PIL cases pellate judgments and radical rhet-
nyaya panchayats as the silver Article 356 against Congress-led were diluted, removing all checks oric became the path to power for
bullet solution to both the prob- Legislative Assemblies, a decision on judicial arbitrariness and mak- Indian judges. The value of careful
lems. The challenge of democrat- with disastrous consequences for ing it a juggernaut annihilating all judicial prose declined as idelity to
ising access to courts could have Indian federalism. He did another procedure. The dilution of locus law no longer mattered, what
been met through an expansion of somersault after Mrs Gandhi re- standi could have been grounded mattered was the show of ideolo-
legal aid. Instead the solution was turned to power in 1980. He was in some notion of representation gical commitment.
seen as creating parallel informal the only judge in the Minerva Mills standing. In its absence, most PILs Justice Bhagwatis legacy lives
institutions, diluting judicial pro- case to uphold her Emergency era are iled by citizens unconnected on. But it is high time we revisit it.
cedure by short-circuiting basic amendment immunising any stat- to any issue. In the Bandhua Mukti
principles of adjudication. These ute implementing a directive prin- Morcha case, he diluted eviden-
Anuj Bhuwania is a lawyer and an
visions of paternalistic deprofes- ciple from judicial review for viol- tiary standards in PIL cases to an anthropologist and the author of
sionalised indigenous justice ating Articles 14 and 19, thus giving extent that proved catastrophic in Courting the People: Public Interest
provided the basis for future devel- primacy to directive principles the long run. He also was the irst Litigation in post-Emergency India.
opments such as Lok Adalats at the over fundamental rights. Accord- judge to openly legislate in a PIL re- He teaches at South Asian University,
New Delhi
lowest level, tribunalisation at the ingly, a statute implementing pro- lating to inter-country adoptions,
heavy objects such as black holes serve muon neutrinos that are con- causes radioactivity and have com-
collide. Gravitational waves were tinuously produced in the pared it with the dangers of having
GETTY IMAGES/ISTOCKPHOTO
irst detected in September 2015 by atmosphere when cosmic rays a nuclear power plant or radioact-
the Laser Interferometer Gravita- strike the earth. Since every type of ive material in the neighbourhood.
tional-Wave Observatory (LIGO). As matter particle has an anti-matter This cannot be true since the neut-
the waves passed, LIGO measured partner particle associated with it, rinos, whether they are naturally
that they expanded and contracted there are also anti-neutrinos that occurring in the atmosphere or
the earth a tiny bit for a fraction of a the INO can observe. Anti-neutri- from the sun, or are emitted by far
second. The measurement told us nos also come in three lavours and away man made nuclear reactors
that the colliding black holes were can oscillate from one to the other. and sent in beams of neutrinos with
30 times the mass of the sun, 1.3 bil- biggest revolutions in our know- An important question in the mys- few GeV energy, are very feeble and
lion light years away, and during ledge of the laws of physics that gov- tery of trying to piece together the weakly interacting particles that we
the collision, the mass of three suns ern the universe. Raymond Davis laws of physics is: do anti-neutrinos cant even see or feel without the
just vanished to produce the en- and John Bahcall detected that only oscillate or lip their lavours at ex- help of an observatory. Beams of
ergy of the gravity wave that spread half the neutrinos that the sun was actly the same rate as neutrinos do, neutrinos are being sent to the
across the universe. However, LIGO emitting towards the earth were ac- or are there slight diferences in NOvA neutrino detector in the U.S.
did not produce the waves that it tually reaching us. their rates? In other words, do laws and to the T2K neutrino detector in
observed. The reason? As they travelled the of physics treat matter and anti- Japan every day. Moreover, being
They were produced by cataclys- distance from the sun to the earth, matter exactly the same way as far the lightest matter particles, the
mic events, and we wouldnt want the neutrinos were changing from as the neutrinos are concerned or neutrinos do not decay into any
to be anywhere near them, but ob- electron-neutrino type that the sun do they treat them diferently? other particles, as everything else
serving them through LIGO is like was emitting to muon-neutrino While the INO will not by itself is heavier so they are not like
receiving a postcard from that col- type, and thus escaping detection. provide an answer to this question, uranium which decays radioact-
lapsing, tragic part of the universe All the laws and forces of nature its measurements will by determ- ively into smaller atoms. All the INO
that even light cannot escape from. that we know of, other than gravita- ining the order of the neutrino would do is to provide the lens to
The only other particles that can tion, are described by what physi- masses and thereby help other observe neutrinos as they are too
zip through the universe at speeds cists call the Standard Model. It pre- neutrino experiments that are feeble or faint to be detected by the
very close to that of light are called dicted that neutrinos, which come already under way or being built in naked eye. It does not create a radi-
neutrinos. The biggest nuclear re- under three types or lavours tau- other parts of the world. The INO, ation hazard or put us in harms
actor that most life on earth derives neutrino, electron-neutrino and by observing the rates at which way. While we should ensure that
energy from is the sun. Like all nuc- muon-neutrino would not oscil- neutrinos and anti-neutrinos oscil- the tunnel is dug with proper envir-
lear reactors, in addition to giving late from one lavour to another. late, will make a substantial contri- onmental safeguards and the pro-
out energy (heat and light), the sun The discovery that they do meant bution to the quest to unravel the ject has various clearances, raising
also emits neutrinos. We have all that the Standard Model or the ba- secrets of the ultimate laws of phys- the spectacle of radiation hazards
seen sunlight. Can we also observe sic laws of physics had to be further ics. and comparing it with nuclear or
the billions of neutrinos the sun modiied. Thus, through the neut- thermal power plants is spreading
emits every second? rino detectors we are actually ob- Nothing to fear false fears and is unscientiic.
In the mid-1960s, when solar serving the fundamental laws of Unfortunately, some activists and
neutrinos were observed through physics at the cutting edge. political parties in Tamil Nadu have Ravi Kuchimanchi is the founder of the
the irst neutrino telescopes, it The proposed India-based Neut- made baseless allegations that the non-proit Association for Indias
quietly unleashed one of the rino Observatory (INO) aims to ob- INO, which is just like a telescope, Development (AID)
Letters emailed to letters@thehindu.co.in must carry the full postal address and the full name or the name with initials.
freedom of expression. The Madhya Pradesh How smart? not be fully correct (Last combined efort with no
legislature has enormous (Restricting protests, The editorial, Being wicket stand, June 26). superstar ego.
powers, but these should stiling descent, June 26). smart, and the Magazine That the Augean stables of Balasubramaniam Pavani,
not be at the expense of the While police iring is article, A less concrete the cricketing body need Secunderabad
liberty of critics. Criticism condemnable, she should solution? (both June 25) cleaning has been taken
must be taken by our have criticised the violent should be eye-openers to cognisance of and is under A shuttler to watch
representatives in the right incidents which led to many the oicials concerned. One the supervision of the Kidambi Srikanth has
spirit, who must try and see police personnel being only wishes that some of the Supreme Court. There may undoubtedly been in
whether any of those injured. She also tries to ideas, such as using raw data be a few setbacks to Indian devastating form of late,
levelled are right. justify the visits of on pedestrian movement cricket in the form of scalping many a famous
Constructive criticism is the Opposition political leaders and ensuring a base of Ramachandra Guha and name in the badminton
backbone of any democracy to protest sites. reliable civic services, are Anil Kumble stepping down circuit (Sport Srikanths
(Editorial Whose These are only for political ensured in the smart city but this does not mean its cup of joy overlows, June
privilege? June 26) gains. Has Ms. Hasan project. I am deeply the end. 26). His feats have given
T.S.N. Rao, forgotten how people were concerned about the lack of The silver lining is the way sports lovers plenty to cheer
Bheemavaram, Andhra Pradesh injured in police action in encroachment-free the Indian cricket team is about. Credit must also be
Darjeeling only because it is footpaths for pedestrians to progressing. We produce given to his mentor, Gopi
Dissent vs. violence happens to be an walk on safely, comfortably, great batsmen but always Chand, for the tough
Zoya Hasan conveniently Opposition-ruled State? and with dignity. The vision seem to struggle to groom grooming his academy
forgets to mention the Freedom of expression, for smart cities needs to be fast bowlers and quality gives. Consequently, players
violence resorted to by dissent and the right to done in consultation with spinners. As far as match such as Srikanth and
unscrupulous elements protest are essential in a those who live in these results are concerned, let us Prannoy are now hitting the
posing as farmers by democracy but people areas. be mature enough not to headlines as much as Saina
burning private properties taking the law into their B.R. Sant, link failures to Board Nehwal and Sindhu are.
and stoning buses with hands and subjecting Hyderabad politics. A word about Indian badminton is on the
passengers, but instead innocent people to womens cricket. Indian ascendance.
condemns the governments hardships should be Reforms in sport women have begun well in Vijai Pant,
action in imposing Section severely dealt with. To say that there has been a their World Cup campaign Hempur, Uttarakhand
144 of the CrPC and other M. Amarender Reddy, total failure in the by beating England a more letters online:
restrictions in Mandsaur, Secunderabad functioning of the BCCI may classic case of it being a www.hindu.com/opinion/letters/
A ND-ND
 https://telegram.me/TheHindu_Zone https://telegram.me/PDF4EXAMS
8 ISSUES AND INSIGHTS
>
MUMBAI | TUESDAY, 27 JUNE 2017 1

On the selling block, finally context. You follow a fairly rigid tender-
ing process to buy anything be it a
blanket or an aircraft. As the CMD, you
cant hire or fire. You are always under
leases but are not owned) but there is a
determinable value of the bilateral
rights, the landing and take-off slots,
the depreciated value of the aircraft and
> CHINESE WHISPERS

Some musings on the possible sale of Indias national carrier
people involved in the process. Reams
have been written on the subject and I
have no new gems to add but here are my
main takeaways from what I understood.
Sale of Air India seems a fait accom-
pli this time around. The ministry of
civil aviation and the ministers may
have some apprehensions but they dont
carry enough weight to be taken too seri-
ously. The employees may raise some
OUT OF THE BLUE objections but are unlikely to have the
heft to stall the juggernaut. The present
ANJULI BHARGAVA CMD may not be expressing his
thoughts on the subject but those privy
around. Even if the entire debt is waived
off, it will just be a temporary reprieve till
debt and accumulated losses pile up once
again. You waive debt off today but five
years down the line you will be back to
square one. Even if oil prices do not rise,
there is very little chance of Air India ever
making much money certainly not
enough to sustain its operations, buy air-
planes and function as other commer-
cial carriers do.
Airlines the world over is a highly
regulated business with many rules and
procedures and one where safety is
scrutiny be it the media, the politi-
cians, the bureaucracy or the employees.
You are always judged in hindsight and
every decision of yours can be ques-
tioned. In other words, you cant afford to
go wrong. If you go wrong or make the
wrong call, you are accused of corrup-
tion: the sceptre of enforcement directo-
rate, the CBI and various courts of en-
quiry loom large before you. The scrutiny
is endless and often conducted by those
who have no intimate knowledge of the
sector. You have virtually no authority
and the fear of making a mistake hounds
you constantly. Functioning like a CEO of
a commercial airline ought to is almost
finally the brand name. Be it fame or
notoriety, Air India is a known name Celebrating Eid
the world over.
Three, I dont personally think there is
much credence to the Tata story that
claimed that they were in talks with the
government for the carrier, but if it is true
the Tatas in my opinion really need to
examine if they need a new albatross
round their necks. A present board mem-
ber of one of the two airline ventures the
Tatas are already invested in told me that
the groups exposure to Vistara and
AirAsia India was already ~1,400 crore.
And its not as if either is showing any
signs of touching a break even. It may be
On Friday, none of the Bharatiya Janata

F
irst, the good news. A government
has finally made up its mind to
bite the Air India bullet. If the NDA
actually pulls this sale off, it will be one
of the biggest and toughest reforms that
I for one didnt think Id see happen in
my lifetime.
Last week, I happened to meet a few
to them say that he is privately con-
vinced this is the only way to go.
Let me say here that hes not the first
CMD with this view. I have met close to a
dozen chairman and managing directors
(CMD) of this airline over the years. CMD
after CMD has always told me the same
thing: the carrier is well beyond a turn-
paramount. Its typically a low-margin
business and very few airlines really
make a lot of money. To do that, you
have to run it with zero interference, let
the CEO or the guy in charge have a free
hand (even to make mistakes), think on
your feet and respond yesterday.
None of this is possible in the Air India
impossible. In most companies, the out-
put is more important than the process;
here it is the reverse.
Two, its not as if the airline is worth-
less as many tend to think. The real
estate value of properties owned by the
airline is much less than touted (lots of
the properties are disputed or on long
years before and theres a big if here
either of its investments pays off.
And if is the only certainty in India
as we all know. In the last few weeks,
many have been asking me whether the
sale of Air India is imminent and desir-
able. Desirable for sure, but imminent?
I suspect only one man has the answer.
Party leaders or union ministers attended
the iftar hosted by President Pranab
Mukherjee at the Rashtrapati Bhavan,
while Opposition leaders were present in
good numbers. On Eid day, BJP
spokesperson Shahnawaz Hussain and
Union Minister of State for Minority Affairs
Mukhtar Abbas Naqvi hosted Eid Milan at
their homes. Some of the union ministers
like Arun Jaitley attended the Eid

Better data needed on job scenario

celebrations at Naqvis house. However,
none of the senior Congress leaders, like
Ghulam Nabi Azad and Ahmed Patel,
organised Eid celebrations. In several parts
of India, devotees celebrated Eid by
wearing black armbands to protest the
As Indias economy evolves and modernises, it is essential for the country to design and implement a 21st-century labour market recent lynchings of Muslims.
assessment system that enables more relevant, timely and accurate analysis of the trends
ED mubarak
JOB BALANCE annual one across both urban and
rural areas, to estimate the number of
(Rise in non-farm jobs between 2011 and 2015 has more than compensated for the decline in farm jobs) employed and unemployed people is a
step in this direction.
EMPLOYMENT TOP FOUR SECTORS CONTRIBUTION TO NON-FARM JOBS Wages and incomes could be more
2011-13 2013-15 BETWEEN 2011 AND 2015 comprehensively measured and har-
monised with the consumption surveys.
Longitudinal studies can be carried out
2011 456 15.6 using a constant panel of households to
14.3
measure social mobility.
Time-use surveys are essential to
RAKESH MOHAN & ANU MADGAVKAR Decline in -26 capture how much work is obtained
17 9
farm jobs and how time is allocated, including
5.7

T
here are lies, damned lies, and
statistics, the 19th century
British Prime Minister Benjamin
Disraeli famously said. Today, his
description of questionable data may be
applied, somewhat facetiously, to
Indian labour statistics. The problem
is not that they are fake, but rather
that they give only a partial and some-
times inaccurate view of Indias job sit-
uation. Not surprisingly, the publica-
tion of these statistics has stirred up a
heated debate as to whether India is
undergoing a period of jobless growth.
At face value, Labour Bureau data
are quite alarming. Take a closer look,
however, and we find some significant
gaps. Quarterly surveys of enterprises
suggest that Indias labour market had
meagre growth in the range of 150,000
to 400,000 jobs each year from 2013 to
2016. But these surveys do not provide
an accurate aggregate national view.
Most enterprises have fewer than 10
employees, but the quarterly surveys
only track companies with more than
10; they make up less than two per cent
of the national total.
Annual surveys, conducted over a
larger base of households, suggest that
fewer than two million jobs are being
created annually. But that conclusion
misses a crucial change: a marked
Rise in non-
farm jobs 11
2015
All figures in million
Note: Years are financial years from April to March; thus 2011 is FY2011, from April 2010 to March 2011. Numbers may not sum due to rounding
Source: Labour Bureau; UN Population Division (medium variant); McKinsey Global Institute analysis
structural shift in the workforce away
from agriculture and towards the non-
farm sector, particularly construction,
trade, and transport. The data indi-
cate that employment in agriculture
may have shrunk by around 26 mil-
lion between 2011 and 2015, while non-
farm jobs appear to have risen by 33
million (exhibit).
That non-farm job growth outpaced
the decline in agricultural employment
is a positive sign. Yet, the data suggest
that the labour force participation rate
fell by three percentage points, from
55.4 per cent in 2011 to 52.4 per cent in
2015. These findings need further val-
idation, including by testing the sta-
tistical robustness, since falls in labour
force participation are not usually dis-
cernible over such short periods. Even
if labour participation is declining, we
22 33
463
Trade and
hospitality
need to understand more clearly why
that is the case. For example, it may
indicate that more young people have
stayed in education, or that more
women from households, once in
extreme poverty, are entering the mid-
dle class. Both of these are welcome
social developments rather than a sign
of labour market weakness.
As Indias economy evolves and
modernises, it is essential for the coun-
try to design and implement a 21st-cen-
tury labour market assessment system
that enables more relevant, timely, and
accurate analysis of the trends, which is
currently under active discussion in the
government under a task force on
employment data headed by NITI
Aayog Vice-Chairman Arvind
Panagariya. Moreover, India now needs
to focus on the quality of jobs, rather
1.6
-4.5
Construction Transport Education Rest
and health
than simply their quantity. A new paper
from the McKinsey Global Institute
argues that this should be done through
a new emphasis on gainful employ-
ment that encourages the creation of
better, safer, higher paid, and more pro-
ductive work. It is a more holistic way of
thinking about employment but we
need to be able to measure it.
New statistical tools we could intro-
duce include:
A full-fledged labour market emp-
loyment survey conducted on a quar-
terly basis, with a much larger sample
size, and validated by supplementary
data from enterprises, job search por-
tals, sales revenue, and tax-related
data systems of the government. The
recent announcement that NITI Aayog
will conduct a quarterly household
survey across urban areas, and an
across specific tasks, paid work, and
unpaid work. A long-overdue mod-
ernisation of occupational definitions
would be needed to reflect changes in
the job market.
Specific labour segments can be cov-
ered more deeply; for instance, an
annual higher education graduate sur-
vey could cover graduates of selected
disciplines.
State-of-the-art data collection
methodologies and surveying tools can
be deployed in the labour field, with
digitally enabled registration, data
recording, verification processes, and
speedy release of unit-level open data.
These are just some ideas for ways
to enhance our understanding of how
Indias labour market is changing.
Indians aspire to higher pay, better,
and more productive working condi-
tions, and safer, cleaner, and more
stimulating work. Better statistics are
an important starting point to achiev-
ing those aspirations.
Rakesh Mohan, a former executive director at
the IMF and deputy governor of the Reserve
Bank of India, is a distinguished fellow at
Brookings India and Senior Fellow at the
Yale Jackson Institute for Global Affairs.
Anu Madgavkar is a partner at the
McKinsey Global Institute
Eid celebrations also brought forth some
black humour. Delhi Chief Minister and
Aam Aadmi Party chief Arvind Kejriwal
(pictured) tweeted, Sabko Eid mubarak,
wishing everyone a happy Eid, in the
morning. Kapil Mishra, his estranged
comrade in arms, quoted Kejriwals tweet
to say: Aapko ED mubarak (wishing you
ED, or Enforcement Directorate). Mishra
has appeared before central investigating
agencies to allege various acts of
omissions and commissions by the
Kejriwal government in Delhi.
Over-regulation is dangerous
A former banker got a taste of red tape in
Delhi recently. At the national capital to
release his book, he wanted a separate
room for his wife at a members-only
institution. The rules of the institution did
not permit him to book a separate room
for his wife. A helpful manager suggested
he book a room for a guest. Left without
an option, the former banker checked in
his wife as a guest. So my wife is my
guest now, he remarked while explaining
the dangers of over regulation.

CONSUMER LIFE > LETTERS

Expectations falter Avert disaster It is quite ostensible that the six

MAHESH VYAS
Consumer sentiments declined by
nearly three per cent during the week
ended June 25. Last week the senti-
ments index had risen by 5.7 per cent
and before that it had fallen by a sim-
ilar measure. The consumer senti-
ments index has been bobbing with-
in a narrow range since May this year,
almost unsure of itself. This is unlike
big trends seen in the preceding
four months.
The index rose for three consecu-
tive months during October,
November and December fuelled by a
good kharif crop and great expecta-
tions from demonetisation. The
cumulative rise was a massive 7.7 per
cent, or a rate of 2.6 per cent per
month. Then, the index fell for the fol-
lowing three consecutive months from
January through March at the rate of
three per cent per month.
Compared to these big trends,
recent months have been docile. The
index did spike in April because of the
loan waiver announced in Uttar
Pradesh. But, although many states
have announced loan waivers follow-
ing Uttar Pradesh, the index has weak-
ened. It did not sustain its exuberance
even till the end of April.
Something is amiss.
Consumers seem to be losing confi-
dence that their future would be
brighter than their current economic
conditions. A greater expectation about
the future has been a constant factor in
Indian consumers. In the recent past
we seem to have always believed that
Achhe din aane wale hain. But, this
belief seems to be waning.
In the week ended June 25, the
index of consumer expectations was
3.5 per cent lower than the index of
current economic conditions. Since
both indices have the same base peri-
od in September-December 2015, it is
apparent that the expectations senti-
ments have worsened more than per-
ceptions of current conditions.
The labour participation rate and
the unemployment rate fell during
April and May. The small variations
of June are too insignificant to
signal any change in reality
During most of the past, expecta-
tions were higher than current condi-
tions. But during the last two weeks
the consumer sentiments index has
remained below the current conditions
index. While the Index of Consumer
Expectations (ICE) was 3.5 per cent
lower than the Index of Current
Conditions (ICC) in the week of June
25, it was 2.2 per cent lower in the pre-
ceding week.
In four of the past eight weeks, the
ICE has been lower than the ICC.
Besides, this current weakness of the
ICE is across rural and urban regions.
Rural India is stressed as prices of
agricultural commodities have been
depressed in recent times. While
several state governments have
announced handsome loan waivers,
prices of agricultural commodities
have not improved. Since it is severe-
ly depressed prices that negated all
the gains of a handsome kharif crop
of 2016, farmers are reluctant to sow
foodgrains enthusiastically during
this kharif season.
Acreage was higher by 9.3 per cent
by June 23, but the areas of stress are elements listed by him should be pres-
visible. Acreage under arhar is down With reference to No time for software ent in the insolvency and bankruptcy
by 70 per cent and moong is also down. testing now: GSTN chairman Navin council to fight against the risk of
Acreage under pulses is down by 33 Kumar (June 26), the news on the front organisational rout or any negative
per cent. The overall increase is large- page of Business Standard sent shivers externalities being borne out of the sys-
ly because of sugarcane and cotton. down my spine. I faced a similar situa- tem. A talented pool of legal profes-
Cane acreage has improved in tion in 1986 in the Bombay Custom sionals can expedite the process of
Maharashtra because of low base last House when the computer system was insolvency resolution through an over-
year and because prices are good. Sim- introduced. I was the collector of cus- arching regulatory oversight. As the
ilarly, cotton sowing is up in response toms and had to face the terrible situa- basic architecture appears to be sound,
to good demand. Both cane and cotton tion of failing software every now and it is only about a fool-proof implemen-
do not go through those dreaded cash- then leading to agitation by importers tation as recourse for managing default-
starved mandis that cannot pick up and exporters. All trade and industry ed cases of both big and small under
the inflow from farms. associations used to swoop down on the aegis of the Insolvency and
The monsoon was good during the me blaming the stoppage of work. I Bankruptcy Board.
first two weeks of the season but the managed to carry on temporarily with In contrast, the multiple rates under
third week wasnt very good. The manual processes but that was a much the GST may create arbitrage opportu-
monsoons onset in Kerala was well simpler situation than the goods and ing some mines to non-qualified seek- nities due to mis-classification, as ice
on time and its progress into the rest services tax (GST). If all the software ers. Wasnt it the duty of the officers to cream and yoghurt being a case in
of the country has been slow. But, fails, the input credit will stop and there detect, for example, a claimant not hav- point. The GST council needs to be reg-
Kerala and Karnataka received less will be mass protest. The chairman, ing the requisite net worth? There can be ulated by a unified Central Board of
than satisfactory rains. Navin Kumar, has said, We would have no defence available if a person has failed Taxes to triangulate between corporate
Understandably, given the loan loved to have a couple of months more to perform to the high standards expect- income tax and the GST. Furthermore,
waivers, farmers are happy about their before the roll out. The government ed from the senior-most officers. real-time reporting with minimal
current economic conditions, as their should give him two months and com- P Datta Kolkata errors, accountability and a dedicated
liabilities have been reduced. But, their menced the GST on September 1. There board with the right composition and
outlook still does not look good. is still time to avoid the disaster. Ease transition delegation of authorities can improve
In urban India, the labour partici- Sukumar Mukhopadhyay New Delhi load-bearing capacity. Otherwise, bro-
pation has stopped falling. But, it has Ajay Shahs article Beware of prema- ken architecture of the GST policy and
been so abysmally low at 40-41 per Time to introspect ture load bearing (June 26) conjectures administration may not be able to bear
cent for such a long time that it seems a greater likelihood of systemic failure the load of a rapid transition from the
to have evolved into a severe sense of With reference to Officers have been of fledgling systems while facing a old to the new indirect tax regime.
hopelessness in urban India. It is the made scapegoat for political failure new level of stress emanating from cas- Kushankur Dey Bhubaneswar
summer months of April, May and (June 25) featuring an excellent inter- es of insolvency and the goods and
June that witnesses a rush of new view with former coal secretary P C services tax (GST) roll-out. The argu- Letters can be mailed, faxed or e-mailed to:
graduates into the labour force. During Parakh (pictured), despite some con- ments centre on the justification of The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
this time, we expect labour participa- testable formulations it brought out the load-bearing capacity to the discre-
New Delhi 110 002
tion and unemployment to increase need for coordinated reform in all facets tion and stakes of officials involved in Fax: (011) 23720201 E-mail: letters@bsmail.in
simultaneously. of governance. It, however, left three the insolvency resolution and GST All letters must have a postal address and telephone
But, we saw the LPR and the unem- important questions unanswered. The implementation. number
ployment rate fall during April and first is that the change in the mine allo-
May. The small variations of June are cation process must have been a written > HAMBONE BY MIKE FLANAGAN
too insignificant to signal any change one from a minister/cabinet, unless of
in reality. course the offices supinely followed a
The fall in the all-India Index of verbal order in a matter of such import.
Consumer Expectations during the Why is it then not possible to identify
past two weeks seem to suggest that the responsible politician/s, as is the
the Indian economy is unable to deliv- citizens right to know?
er and that expectations are belied. The second is that even if there was a
written policy change from ministerial
The author is managing director and CEO, sources, why did not the senior officers
Centre for Monitoring Indian Economy P Ltd object to it in writing by citing cogent
reasons? The third is the issue of allocat-
 https://telegram.me/TheHindu_Zone https://telegram.me/PDF4EXAMS

>
OPINION 9
STAY INFORMED THROUGH THE DAY @ WWW.BUSINESS-STANDARD.COM.

Volume XXI Number 222

ILLUSTRATION BY AJAY MOHANTY
MUMBAI | TUESDAY, 27 JUNE 2017 funds rate should be much lower in this cycle, with few-
er hikes. Will the authorities recognise this or still be
wedded to the past? If the Fed were to follow a tight-
ening path consistent with its own forecasts then by

A questionable idea
early 2019, monetary policy will turn restrictive. Given
that monetary policy works with a lag of 12-18 months,
any mistake on the part of the Fed will take time to be
understood as well as to correct.
GSTs anti-profiteering clause should be reviewed Another issue facing the Fed is unemployment, or
rather the lack of it. At 4.3 per cent, US unemploy-

I
ndias transition to a new indirect tax regime from July 1 is not expect- ment is already 0.4 per cent below the Feds assessment
ed to be easy, even though it must be acknowledged that the roll-out of of the NAIRU (non-accelerating inflation rate of unem-
the goods and services tax, or GST, will yield many positive benefits for ployment). If growth continues, it is not unlikely that
the economy. But companies will have to undertake numerous major unemployment will slip below 4 per cent. If the Fed
changes to their processes. Compliance costs will hopefully fall at some stage, believes in its own NAIRU calculations, at some stage
the lack of labour market slack will cause a spike in
but the flawed final design of the GST has complicated the entire exercise. Nor
inflation. The authorities need to engineer a rise in
does the supportive infrastructure for the GST seem so robust that the private

The next US
unemployment to more sustainable levels. The prob-
sector can feel comfortable about the transition. As the chairman of the GST lem with this is that it is almost impossible to finesse
Network, Navin Kumar, told this newspaper, he would have loved to have a a rise in unemployment. You can almost never get just
couple of months more before the roll-out. The coding is not completely done a small pick up in unemployment; its dynamics are
as yet and will have to be exposed to high-volume usage almost immediate- such that it is almost impossible to control. In the post-

ly. Mr Kumar has frankly admitted that there is no time now for testing after
the code writing freezes.
Thus, companies preparing to manage the transition to the GST have a
lot to worry about. But perhaps the greatest concern is one that has been quite
unnecessarily inflicted by the government. One aspect of the new GST will
hang over companies heads like the sword of Damocles: The so-called anti-
profiteering clause. This will give the government the power to force com-
panies to pass the benefits of any cost savings under the new system to their
recession?
war era, in the US, whenever unemployment has
increased sustainably by 0.3 per cent, it invariably
overshoots, triggers a recession and rises much more.
How the Fed handles the current extremely low levels
of unemployment, and the need for normalisation
How the Federal Reserve handles the extremely low levels of will be a big test in the coming years. A rise in unem-
ployment can be a trigger for the next recession.
unemployment will be a big test in the coming years As for imbalances built up in this cycle, commercial
real estate comes top of mind. Given what is happen-

W
e are now in the eighth year of the ongoing
customers. Last week, the GST Council outlined how the anti-profiteering sys- economic expansion in the United States.
tem would work in practice. An authority would be constituted, headed by This is already the third-longest expansion
a secretary-level officer who will have the power to force a reduction in of the post-war era. Given how extended this cycle is,
inevitably some thought must now be given to when
prices or order companies to return money to their customers. It would also
and how this comes to an end. Business cycles have
be able to impose a penalty and even to order a company to be de-registered. not been abolished. We will invariably at some stage
These powers are prone to misuse. have a recession, required to cleanse the system of
The government has introduced the anti-profiteering clause in a bid to excesses and then start the cycle
check prices that may rise in the wake of the GST roll-out. Its concern over once again. A recession is not a triv-
prices is legitimate and the desire to rein in inflation is understandable. But ial matter for financial markets:
Earnings will decline and equities
it is also true that the anti-profiteering authority is a bad idea in principle
will move into a bear market, declin-
and will likely be a problem in practice. In principle, the government should ing by at least 20 per cent; bond mar-
not be interfering in the market to this degree; if a company feels it can raise ket spreads will widen and corpo-
prices, then unless it runs afoul of the competition law it should be rate defaults will spike. Recessions
allowed to do so. In practice, while the government has recognised that con- are not kind to investors. If the US
cerns over the anti-profiteering clause exist and has thus announced that markets decline by this magnitude,
it goes without saying that, all other
the authority is being set up for only two years, there is still far too much dis-
markets globally will fall as well.
cretion being provided. Given the authoritys composition, it appears that Many will fall even further and
the new outfit may not be fully equipped to prove profiteering. It, there- faster. A US recession is therefore a AKASH PRAKASH
fore, is likely to make unreasonable demands on industry. This is not, nat- big deal. When it comes, it will cause
urally, good news for companies. A rethink on how the authority should pain for all investors. Emerging
function is necessary. Markets have historically suffered the most.
Valuations are today at elevated levels across all mar-
kets. Any market reaction will be sharp and disrup-
tive given the lack of valuation support.
Given this, is a recession imminent? Should
ly brought to an end by some combination of the
Federal Reserve tightening monetary policy and an
unwinding of the excesses built up in the economy.
Given this framework, where are we on both these
triggers?
As for the Fed raising rates and tightening policy is
concerned, the process has already begun. Read the
latest Federal Open Market Committee (FOMC) state-
ment and it is quite clear that Janet
Yellen is determined to continue rais-
ing rates. Given the current low lev-
el of real rates, the economy can eas-
ily handle further hikes. Another
25-50 basis points of Fed tightening
should not derail the economic
expansion. The risk here is the esti-
mate of what is the real (inflation
adjusted) neutral Fed funds rate
the rate at which monetary policy is
neutral, neither providing stimulus
nor constraining economic growth.
Various academic studies indicate
that this real neutral rate has col-
lapsed over the last fifteen years.
Most studies indicate that from a level near 4 per cent
in the year 2000, the real neutral rate today is as low
as 0.4 per cent. These estimates have been made by
Federal Reserve research staff. The decline in the real
neutral rate is not unique to the US; even in the EU we
ing to Main Street retail and the structural challenges
faced by their business model, retail infrastructure,
especially malls, will be challenged. Commercial real
estate prices are already in real terms nearly 10 per cent
above their 2007 peak, having risen by more than 80
per cent since 2010. The stock of debt outstanding
here is nearly $4 trillion. If, as expected, vacancy rates
rise for offices, malls and other commercial properties
we could see stress. However, the banks have already
tightened lending standards, thus any bust should not
damage bank balance sheets beyond what they would
experience in a normal cyclical downturn.
Corporate debt levels are near peak, with compa-
nies using the low rates to refinance. Till rates rise,
pressure will not manifest as borrowing costs are so low
and access to credit so plentiful. We need to worry
once interest rates start moving up.
Consumer debt to disposable income is actually
very well contained, as mortgages continue to decline
led by falling homeownership. On the consumer side
the possible stress points are student loans and auto
loans. Student loans are at an all time high, with
default rates near 10 per cent. Auto loans are near
their previous peak, default rates have started inch-
ing up here as well.
While there are some imbalances, there does not
seem to be any catalyst for an imminent crisis.
It does not feel as if there will be a recession in the
US any time soon. We probably have another 12-18

Arrested development investors start worrying and battening down the

Congress-led Karnataka Assembly has set a disturbing precedent
hatches?
The reality is that economic expansions do not die
a natural death just from old age. There is no prede-
termined limit as to how long the economy can con-
have seen a sharp decline, with the neutral rate being
in fact negative. As inflation, growth and productivi-
ty have all declined, so has the neutral rate.
months before the economic cycle turns. However
once it does, be prepared for serious pain. Investors
have had a clear run for the last eight years, this peri-
If these estimates are correct, given how much low- od of smooth sailing is now coming to an end.
er the neutral rate is today, there is a real risk the Fed

T
he Congress party in Karnataka appears to be emulating the
Bharatiya Janata Party (BJP) at the Centre in its draconian
approach to free speech. The Speaker of the Karnataka Assembly,
K B Koliwad, has authorised a one-year jail sentence on two edi-
tors for writing critical and allegedly defamatory articles. This decision
reflects the kind of legislative overreach that sets dangerous precedents in
infringing constitutional guarantees of freedom of speech, not to forget an
unwritten foundational value of Indian democracy in accepting freedom
of the press. Equally disturbing is the fact that one of the two articles, which
was written in 2014 purportedly to defame Mr Koliwad even before he
was appointed Speaker, was brought before the House privileges commit-
tee when he was its chairman. Surely minimum propriety demanded that
he recused himself from hearing a case in the interests of impartiality. For
the complainant to be the adjudicator can scarcely be deemed legitimate
due process. The Speakers order exceeds the recommendation of the priv-
ileges committee. The second article in question was brought before the
privileges committee, under another Congress MLA on a complaint by a
BJP colleague this year, and was deemed 100 per cent defamatory. Both
rulings are deserving of unreserved censure.
Although the powers of privileges committees in Parliament and
Assemblies are fairly broad under the Constitution, their raison dtre is,
ironically, to protect freedom of speech in the House and to ensure that the
legislative business is not subject to coercion. How the two articles, defam-
atory or otherwise, met either of these criteria is not obvious. In the con-
text of this specific case, it is also difficult not to view an element of intim-
idation embedded in the imposition of jail sentences by the Assembly
resolution. As a letter from the Editors Guild of India points out, the priv-
ileges of the Assembly (as of Parliament) under which this action is taken
is not even codified. If individuals of the legislature feel that their repu-
tations have been affected, they are free to take the matter to court against
the journalists or publications and not act as complainant, prosecution and
judge, as they did in this case, the letter rightly states as it requests the
Assembly to withdraw its resolution.
The broader point to be made in the context of increasing intimidation
of the Fourth Estate is that elected representatives, whether in the states
or at the Centre, urgently need to acquire thicker skins. Criticism, howev-
er unfair, is part of the game for participants in an open democracy in which
there are checks and balances in reasonably robust libel laws. Beyond
that, perhaps MPs and MLAs would do well to understand the value of a free
press which offers real-time access to what people are thinking. Without
it, the susceptibility to missteps can be high as Indira Gandhi learned to
her cost in the electoral defeat she suffered in 1977. Mr Koliwad may have
regained his sense of self-worth with these orders, but his public reputa-
tion may take a little longer to recover.
tinue expanding. The economic expansion is normal- overshoots and makes a mistake. The peak in the Fed The writer is with Amansa Capital. Views are his own
Towards a clean energy workforce
T
he current median age in India is 27.6 years. (FTE) jobs. The project deployment lifecycle includes seven times greater potential in rooftop projects
Over the next 20-25 years, about 600 million business development, design and pre-construc- means that 238,000 people could be employed in
additional people will join the workforce. Many tion, construction and commissioning, and O&M. this segment. Another 58,000 workers will find jobs
of the sectors, which traditionally accounted for large These jobs are further segmented into technical, in utility-scale solar and 34,000 in wind energy.
employment, are now adding fewer jobs year-on-year. financial, legal and regulatory due diligence for busi- Decentralised energy also increases the potential
Employment in public sector enterprises has ness development, preparing engineering designs in for creating jobs locally, giving opportunities to local
decreased from a peak of 1.49 million in 2009-10 to the design phase, erecting mounting structures, entrepreneurs or for recruiting workers from near
1.23 million in 2015-16. In Coal India, one of the coun- wind towers, etc. during the construction phase, project sites. The construction phase of renewable
trys largest employers, average daily employment and regular O&M activities. Most jobs fall in the energy projects constitutes 80 per cent of the total job
has declined from 370,000 to 350,000 between 2010 semi-skilled and unskilled categories. potential, which could be locally sourced. Every
and 2014. Automation is going to hit annual job growth But there is a difference between FTE jobs and a state has potential for jobs in solar (maximum in
in almost all existing industries, whether agriculture, permanent workforce. This is because not all activ- Maharashtra, Uttar Pradesh, Karnataka, and
construction, textiles or IT. India needs new sources ities require a person to be employed throughout the Gujarat). Wind sector employment is concentrated
and new types of jobs. year. Many jobs are one-time, especially during the in seven states (Tamil Nadu, Gujarat, Rajasthan,
The future of jobs looks different from the past. initial three phases of the project deployment cycle Andhra Pradesh, Maharashtra, Karnataka, and
The shape of enterprises will change, requiring a where employees move from one project to anoth- Madhya Pradesh). A states share in total renewables
more nimble and mobile work- er, as each phase lasts for less employment, eventually, depends on its ambitions.
force. Many services will be than a year. O&M, by contrast, In addition, new jobs could be created to manu-
delivered through decentralised provides full-time jobs through facture solar photovoltaic modules, solar PV installa-
channels. And new industries the year. tion structures, wind turbines, towers, wind blades,
will need systems of lifelong What matters, ultimately, is etc. Existing manufacturing industries, which sup-
learning, in order to adapt to not just workers employed in ply balance of plant equipment (transformers, invert-
rapid changes in technology renewable energy but the poten- ers, cables and wires) for solar and wind plants will also
and create avenues for employ- tial size of a renewable energy provide employment to cater to the growing renew-
ment over the long run. workforce. In the latest CEEW- ables sector. We estimate that domestic solar module
Renewable energy is on a NRDC study, Greening Indias manufacturing could provide employment to anoth-
rapid growth trajectory in Workforce: Gearing Up for er 45,000 people, if India could increase annual mod-
India. Solar capacity increased
from less than 20 megawatts
INFLEXION POINTS Expansion of Solar and Wind
Power in India, we surveyed
ule manufacturing capacity to 17,000 Mw.
The employment potential in renewable energy
(Mw) in 2010 to above 12,000 ARUNABHA GHOSH & NEERAJ KULDEEP nearly 50 companies represent- (based on current targets) is just a glimpse. As the
Mw (March 2017). During this ing solar developers (both utili- sector expands, new employment segments will
period, annual deployment increased exponen- ty-scale and rooftop solar), wind developers, engi- emerge, such as renewable energy scheduling and
tially from 8 Mw in 2010 to 5,500 Mw in 2016. In neering, procurement and construction contractors forecasting, grid integration and balancing, ener-
fact, in the last three years, investments in the and solar manufacturers. To date, more than 56,000 gy storage, and re-powering and recycling of exist-
power sector have been primarily in renewables, people are employed in solar and wind (over 21,000 ing plants. The shape of enterprises is changing, as
accompanied by sharp falls in solar and wind tar- workers were added in 2016-17) energy sectors. In is the nature of jobs. Renewable energy could be at
iffs and increasing investor confidence. Annual 2017-18, another 25,000 people will join the industry. the forefront of new forms of job creation in India.
deployments are likely to increase further. Yet, lit- We estimate that 1.3 million FTE jobs will translate It will need greater attention to decentralised serv-
tle attention is given to the employment potential into a workforce of 330,000 people in project devel- ice provision, continuing skilling, and increasing
in renewable energy. opment over the next five years, if India achieved its ambitions for clean energy nationwide and with-
In February 2015, the Council on Energy, solar and wind energy goals. in each state.
Environment and Water (CEEW) and the Natural The greatest potential for the renewables work-
Resources Defense Council (NRDC) had projected force lies in smaller, decentralised projects. Per Mw, Arunabha Ghosh is CEO and Neeraj Kuldeep is Programme
that Indias 160,000 Mw of solar and wind targets rooftop projects create 24.7 jobs, compared to 3.4 Associate, Council on Energy, Environment and Water
would generate about 1.3 million full-time equivalent jobs in utility-scale solar and 1.27 jobs in wind. The (http://ceew.in). Twitter: @GhoshArunabha

Pakistans human face two spies whom she hilariously

BOOK REVIEW
VIKRAM JOHRI
Meena Menon, a former deputy editor
at The Hindu, is one of the few Indian
journalists to have reported from
Pakistan. She was based out of
Islamabad from August 2013 to May
2014 before being inexplicably expelled
from that country.
In Reporting Pakistan, Ms Menon
captures the dual nature of that coun-
trys polity and society: On the one
hand, deep similarities with India in
terms of culture and social milieu and,
on the other, grievous animosity bol-
stered by the Pakistan Armys nefari-
ous ways.
Ms Menon was not the first journal-
ist from The Hindu to report from
Pakistan. Before her, there were
Nirupama Subramanian and Anita
Joshua, and this unbroken line of
reportage helped her slip into
Islamabads social networks with ease.
She describes the capital as a sedate
city, even charming in parts, and largely
untouched by the violence roiling the
rest of the country.
It is not easy being a reporter in
Pakistan the media has few freedoms
and voices critical of the Army are rou-
tinely threatened. The Pakistan Taliban,
which wants to implement Sharia law in
the country, closely tracks news reports
and is quick to impart savage retribu-
tion for negative coverage, as Hamid
Mir of Geo TV brutally realised in 2014.
When the journalist is from India,
one would assume that she would be in
constant peril. Not so, Ms Menon reas-
sures us. It is true that she was tailed by
dubbed Beard and Chubby, but they
were harmless. She would hear stories
of how people she had met were ques-
tioned by the authorities about the
information she had sought.
But these were more irritants than
threats, and even her expulsion may
have been little more than a publicity
stunt. For one, it is very difficult to be a
real reporter in Pakistan. Most of the
information about things that truly
matter is controlled and selectively
leaks out, so there is little option but to
rely on the official sources. When you
do not have access to most parts of the
country, as Ms Menon did not due to
visa restrictions, it is hard to investigate
properly.
Even so, her sheer presence helped
Ms Menon understand the ground situ-
ation better. Especially revelatory is her
account of how Pakistan played down
evidence of its complicity in the 26/11
attack, the most chilling atrocity that
country has inflicted on us. Her
description of the case, which also
occupied that countrys courts, displays
a regrettable but expected lack of sin-
cerity on the part of the Pakistani
administration.
Ms Menons understated account
reinforces the sense of a failing society.
Minorities are discriminated against
Ms Menon writes movingly of the fate of
the Ahmadiyyas as well as of the Shias
and the Hindus. The Pakistan Taliban is a
growing presence, intent on establishing
its loathsome social rules. And the Armys
one-track antipathy for India risks dam-
aging the country permanently.
The book is not all grim, though.
Ms Menon can be very funny, as when
she describes her troubles with Urdu.
She repeatedly evokes the common
Pakistanis hospitality, and is often wel-
comed, rather than shunned, when she
reveals that she is Indian. Her accounts
of Islamabad parties reminded me
of the close-knit but exclusive Delhi cir-
cles that outsiders desperately seek to
penetrate.
It is the profiles that really lift the
book. In a strained media setup, the
magazine Criterion Quarterly provides
high-quality analysis of contemporary
events. Deeply critical of the ideology
of terror, the magazine is run by former
diplomat S Iftikhar Murshed. Reading
about him I could not escape the dis-
tinctly Indian impression that if he had
been a less important person, he may
not have been able to get away with
publishing such a magazine.
Ms Menon also visited Abida
Parveen at her Islamabad residence, a
place replete with homage to and mem-
ories of her popularity in India. Ms
Parveen spoke of her father, an expo-
nent of the Patiala gharana, and of her
abiding admiration for Indian artistes
like Pandit Jasraj and Ustad Amir
Khan. For her, Ms Menon writes,
India and Pakistan are one country.
But ultimately, you cannot escape
the overarching military presence in
every aspect of Pakistani politics. In
March 2014, Ms Menon profiled
Mama Qadeer Baloch, the leader of
the insurgency in Balochistan, for her
newspaper. The grand old man of
Balochi resistance had undertaken
the historic long march from Quetta
to Islamabad to protest the disappear-
ance of Balochi youth.
That profile would be the pride of
any journalist, but Ms Menon was
summoned by the external publicity
office. She recounts how the person
grilling her had highlighted a quote
from Mama Qadeer in which he had
denied that he received support from
Indias Research & Analysis Wing
(RAW). Despite the denial, the mere
mention of the agency was a sore
point with the powers-that-be, and
Ms Menon was asked to leave
Pakistan.
Reporting Pakistan is a delightful
read. Ms Menons fluid narration takes
the reader deep inside a country that,
despite occupying a lot of mind space in
India, is little known. Her book is an
earnest attempt at humanising and giv-
ing a face to a place that we normally talk
about only in reference to conflict.
REPORTING PAKISTAN
Meena Menon
Penguin
384 pages; ~599
 https://telegram.me/TheHindu_Zone
8 THINK
0
xyz
tuesday, june 27, 2017
Is WPI useful in India anymore?
Using just wholesale price index as deflator could distort real GDP. Price indices for all inputs and outputs would work better
Clean-up act
BARENDRA KUMAR BHOI
PMCs success with muni bonds may not be easy
P
rior to the introduction of
to replicate, but it can serve as a role model for the all-India Consumer
local bodies. Price Index, popularly
known as CPI combined
T
he municipal bond market in India is (rural plus urban), the Wholesale
Price Index (WPI) was the most use-
coming alive after prolonged hiberna-
ful price index in India. It measured
tion, with Pune Municipal Corporation the weekly rhythm of price move-
(PMC) raising 200 crore in the rst ment in the country.
tranche of a proposed 2,264-crore ofer, and list- Since 2009, WPI has been com-
ing the bond on BSE last week. The ten-year bond puted on a monthly basis, similar to
other price indices. The Reserve
ofer carrying a coupon of 7.59 per cent was over- Bank of India (RBI) primarily used
subscribed six times, raising hopes that future of- WPI ination for the formulation of
fers will be well-received. No doubt, the take-of of monetary policy under monetary
the municipal bond market is critical for Indias targeting framework as well as un-
der multiple indicator approach
large cities and towns to upgrade their creaking (MIA) although ination meas-
infrastructure, to accommodate a burgeoning ured by other indices was also mon-
population. The ability of municipal bodies to be itored/ analysed.
self-sustaining is also critical to the success of the Moreover, the Central
Statistics Oice (CSO)
Centres pet projects such as Smart Cities and AM-
has been predomin-
RUT (Atal Mission for Rejuvenation and Urban antly using WPI to de-
Transformation). After their recent proigacy ate GDP at current
with farm loan waivers and the absorption of prices to arrive at GDP
UDAY-related obligations, State government n- at constant prices.
Where only volume
ances have little headroom to fund long-gestation data are available, the
capital requirements for such projects. CSO uses WPI to convert volume to
Despite a crying need for it, the municipal bond value to arrive at GDP at current
market has had a rough passage ever since it rst prices.
agged of in the late nineties. Between 1997 and Effects of low WPI
2010, the city corporations of Ahmedabad, Nashik WPI ination does not receive as
and Bengaluru experimented with bond issues much attention as earlier for sev-
but barely managed to raise 1,400 crore. The fact eral reasons. Following the Urjit Pa-
tel Committee recommendations,
that these bonds were not tradeable and lacked
the RBI Act has been amended and
regulatory clarity made for poor investor re- flexible ination targeting (FIT) has
sponse. SEBIs detailed guidelines for the issue been put in place with CPI ination
and listing of municipal bonds in March 2015, cla- as the nominal anchor. During the
ried their regulatory status and rendered them period of transition from MIA to FIT,
at least WPI ination was men-
safer for investors. But with these new rules re- tioned along with CPI ination in
quiring municipal corporations to le a complete the monetary policy documents.
prospectus, obtain credit ratings, create an es- Under the FIT, as the RBI has been
crow account to segregate proceeds and appoint mandated to achieve price stability
measured in terms of CPI ination,
an independent agency to monitor end-use of the use of WPI ination has been
funds, apart from having positive net worth, the
bar was set too high for issuers. With SEBI recently
doing away with the net worth criterion and re-
placing it with the requirement of a revenue sur-
plus for three years, a few corporations are now
likely to make the cut.
Having said this though, it is doubtful if PMCs
Cant say that coal is a dying industry
success will immediately clear the decks for a
series of similar ofers by other local bodies. For Existing mines in Australia are inviting attractive bids, while new projects such as Adanis are weighed down by uncertainties
starters, the proceeds of this ofer are specically CLYDE RUSSELL
earmarked to fund PMCs project to provide 24X7
H
water supply and there is an elaborate structured eres a question for the
anti-coal lobby. If coal is
payment mechanism to service these bonds. dying, how come there
PMCs property and water tax collections, growing is an increasingly heated
at a brisk pace, will be deposited every month into bidding war going on for Rio Tintos
an escrow account towards servicing this debt. As coal mines in Australia?
Heres another question, this
city corporations go, PMC also has sound nan-
time for the pro-coal lobby. If coal
cials and is relatively well-run, which cannot be still has a viable long-term future as
said for most local bodies. It has managed to an energy source, how come the
steadily expand its revenue surplus in the last four worlds biggest planned new mine
years. In FY16, at 1,840 crore, its surplus was at is now hostage to whether the Aus-
tralian government decides to loan
nearly half its total income. It is these factors that it money?
have helped it secure a high investment grade rat- Reconciling these two questions
ing of AA plus for its bonds. But perhaps, as PMC may seem like a challenge but both
and other well-run local bodies like it taste market the battle for Rio Tintos existing
mines and the struggles of Indias
success, it will set an example for their peers to Adani to build its Carmichael pro-
clean up their act. Market forces may be the best ject neatly show where coal cur-
triggers to nudge Indias much-reviled local bod- rently nds itself. Rios mines in the
ies towards professional accounting and public Hunter Valley north of Sydney are
attractive to both Glencore and Chi-
accountability on their opaque workings.
nas Yancoal because they are likely
to be protable for the remaining
life of the pits, which is expected to
be around 20 years.
OTHER VOICES The Rio mines already have all the
necessary infrastructure, being
connected by rail to the major ex-
port harbour of Newcastle, the
worlds largest coal export port.
As Syrian war winds down, the region heats up They also have existing customers
The emergence of the Islamic State had the salutary efect of
uniting the disparate forces in that conict in a single
purpose: defeating and destroying the extremist group. It is
ironic then that as the prospect of that defeat now appears
within grasp, there is the equally likely prospect of a wider and LET TERS TO THE EDITOR
more dangerous ght over the future of Syria and the region, a
struggle that threatens to pit the West, particularly the US and
its regional allies, against Iran. TOKYO, 26 JUNE 2017 Gorkhaland: Unmerited demand
Regarding the editorial Trouble in
the hills (June 24), the indenite
agitation launched by the Gorkha
Janmukti Morcha (GJM) for a sep-
The Iran puzzle
arate Gorkhaland seems to be un-
One of the Obama administrations biggest diplomatic justied and has afected life in the
ambitions was to establish better relations with Iran. The most hills forcing tourists not to visit
important manifestation of that efort was a deal under which Darjeeling. This is bound to lead to
Iran agreed to curb its nuclear program in exchange for the a sharp fall in the State revenue.
lifting of economic sanctions. That momentary thaw now The interests of people of the
seems at risk. Partly this is a result of Irans barely concealed hills are of paramount import-
territorial and political ambitions. Partly of President Donald ance and cannot be ignored by the
Trumps fondness for Saudi Arabia. NEW YORK, 25 JUNE 2017 State Government. Smaller States
are favoured for smooth function-
ing and e-governance. But
whether there are enough
Upholding truth and trust in news grounds for bifurcation, and re-
Many would agree the consequences of disinformation, sources for the regions economy
misinformation and hate speech can be disastrous for to grow after bifurcation needs
communities and nations. Just what steps should be taken to critical survey. In the case of
safeguard societies, however, is a matter of considerable Gorkhaland, the move is not sus-
debate. Germany and Britain are among the nations looking at tainable. Tea estates alone cannot
legal measures to tackle this problem. Singapore too is generate the revenue needed to
preparing to introduce laws next year. The law must aim to get run a separate state. It is worth
the likes of Facebook, Google and Twitter to separate the wheat noting that Jharkhand was carved
out of Bihar, but even with more
from the chaf. SINGAPORE, 26 JUNE 2017
Published by N. Ram at Kasturi Buildings, 859 & 860, Anna Salai, Chennai-600002 on behalf of KASTURI & SONS LTD., and Printed by D. Rajkumar at Plot B-6 & B-7, CMDA Industrial Complex, Maraimalai Nagar, Chengleput Taluk, Kancheepuram Dist., Pin: 603209. Editor: Raghavan Srinivasan (Editor responsible for selection of news under the PRB Act).
CM
YK
completely done away with. All pro-
jections relating to ination are
currently done in terms of CPI.
As of now, WPI is predominantly
used for converting GDP/GVA at cur-
rent prices to the same at constant
prices. Several items of services sec-
tor GDP that are not included in the
WPI basket are deated by WPI to
compute real GDP of this sector. In
fact, the GDP deator, which is
dened as a ratio of GDP at current
prices to GDP at constant prices
multiplied by 100, closely tracks
WPI ination.
The GDP deator, which is often
argued as the true indicator of ina-
tion, has been at the focal point of
discussion while analysing the real
GDP growth in India during the re-
cent period. The sharp decline in
the GDP deator and
the dramatic decline
in WPI ination coin-
cided. This contrib-
uted signicantly to
real GDP growth in In-
dia notwithstanding
modest rise in produc-
tion during recent
years. Compilers of
GDP argued that fall in the input
prices has led to large value addi-
tion and hence high GDP growth in
real terms. However, ground realit-
ies have been somewhat less optim-
istic, particularly in the manufac-
turing sector.
New WPI computation
While the base year of the current
GDP series is 2011-12, the base year
for the WPI series has till recently
been 2004-05. Since April 2017, this
anomaly has been overcome follow-
ing revision in the base year of WPI
from 2004-05 to 2011-12 to align it
with the base year of other macroe-
conomic indicators. The new base
2011-12 is already ve years old. The
next revision of base year is being
discussed. In this context, a general
for the high-quality thermal coal
used to generate electricity, includ-
ing utilities in Japan, which have
preferred long-term supply agree-
ments to the more volatile spot
shipments that are more character-
istic of deals to sell to major import-
ers China and India.
In some ways the Rio mines up
for sale are insulated from the
downturn in global coal demand
expected over the next 30 years, be-
cause they supply fuel to customers
who are likely to be among the last
to switch of coal-red generators,
assuming renewables do eventu-
ally succeed in killing of the pollut-
ing fuel. Acquiring an existing asset
is likely far more attractive to a
company such as Glencore than de-
veloping new mines, with the asso-
ciated capital costs and inevitable
opposition from environmental
groups.
Glencore raised its ofer for Rios
Hunter Valley mines to $2.675 bil-
lion in cash on June 23, making its
bid some $225 million more than
Yancoals proposal. Rio said it
would study the revised Glencore
ofer.
Still in demand
It may seem incongruous to envir-
onmentalists that there is a bidding
Send your letters by email to bleditor@thehindu.co.in or by post to Letters to the Editor, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.
industries there, its progress is no
better than Bihar.
It will be good if the agitation is
immediately withdrawn and an
amicable solution is discussed.
Jayant Mukherjee
Kolkata
Banks in a tight spot
This refers to New dynamics at
work in credit policy by RK
Pattnaik and Jagdish Rattanani
(June 26). The formation of MPC
has given a new dimension to the
policy initiatives of RBI, till now
the prerogative of the RBI Gov-
ernor. The decline in GDP growth
post-demonetisation along with
the declining trend in ination
could have inuenced MPC mem-
ber Ravindra Dholakia to push for
a 50-basis point rate cut.
No doubt from the short-term
perspective it appears logical. But
considering that domestic invest-
ment is not picking up, and the un-
certainty surrounding the impact
Measuring services inflation High time we had an index for it BLOOMBERG
suggestion would be to switch over
to the chain-based method.
A One of the striking features of
the new WPI series is that the item
level averaging is being done by us-
ing geometric mean, instead of the
arithmetic mean used earlier. This
is as per international best practice
and similar to the practice adopted
for the CPI. Data available for the
overlapping period with old base
and new base indicate that the WPI
ination as per new base is consist-
ently lower than the same as per the
old base. Several reasons are re-
sponsible for this outcome. The
geometric mean itself has signic-
antly moderated WPI ination, be-
sides other factors such as change
in the composition of basket,
weighting diagram, and so on.
Moderation of WPI as per revised
base has pushed up real GDP/GVA
considerably during recent years.
To remove the inuence of scal
policy, indirect taxes have been ex-
cluded from the quotations used to
compute new WPI. This will make
the new WPI conceptually closer to
Viable still A Rio Tinto coal mine REUTERS
war for something that has been de-
clared a dying industry, but there is
still a medium-term future for coal,
and Glencore and Yancoal are try-
ing to prot from that.
The International Energy Agency
(IEA) said in its medium-term coal
market report in December that it
still expects growth in coal demand
up to 2021, albeit at a considerably
slower rate.
The rise in coal demand is likely
to be driven by India and Southeast
Asia, according to the IEA, with top
consumer China actually using less
by 2021 than in 2015. The IEA expects
of GST on ination, other mem-
bers of MPC would have voted
against a rate cut, preferring in-
stead a wait and watch ap-
proach. The fact that the earlier
rate cuts were not fully passed on
by banks to the end client might
have also inuenced their de-
cision. The problem banks face of
stressed assets along with paucity
of capital has put them in a tight
spot with little or no scope for
credit expansion to fuel growth.
Overall, banks are going through a
consolidation phase now.
Srinivasan Velamur
Chennai
PSU banks cross-merger
Following the merger of ve asso-
ciates with the parent State Bank
of India very recently and strong
political will demonstrated by the
government, consolidation
among public sector banks has
now gained momentum. Cross-
merger, however, is not an easy
https://telegram.me/PDF4EXAMS
the producers price index. Exclud-
ing excise duty from the computa-
tion of WPI has also partly contrib-
uted to lower WPI ination during
recent years, which in turn has
pushed real GDP up to some extent.
A high-level Technical Review
Committee has been set up to dy-
namically review periodically the
articles to be included/ excluded
from the revised basket. Moreover,
the new WPI series is computing
food ination a combination of
products and articles. Improve-
ment in the compilation of WPI is
unlikely to address the problems
with the GDP deator and its efects
on GDP computation.
Shift to double deflation
A better way to estimate GDP accur-
ately is to deate input and output
prices through separate indices,
popularly known as double dea-
tion. Unfortunately, several devel-
oping countries such as China and
India use single deation method
to compute real GDP/GVA as separ-
ate indices for input and output are
global coal demand to be 5.636 bil-
lion tonnes of coal equivalent in
2021, up from 5.4 billion in 2015,
equating to an average annual
growth rate of 0.6 per cent, down
from 2.5 per cent over the decade to
2015.
Like all forecasts, the IEAs estim-
ates can be undone by changing cir-
cumstances, and it does appear to
be the case that renewable energy
sources such as solar and wind are
making faster than initially expec-
ted inroads, especially in India.
Unpredictable situation
Its this mounting uncertainty that
is making it hard for Adani to get its
planned 25-million-tonne-a-year
Carmichael mine in Queensland
state to a stage where it can actually
start construction.
While the Indian conglomerate
has taken what it termed a nal in-
vestment decision on the $4 billion
mine, its also likely that it wont go
ahead unless support from Aus-
tralias federal government is
forthcoming.
Specically Adani wants close to
$1 billion in loans from the govern-
ment to build some 400 km (240
miles) of new rail track to link the
mine to the planned export port.
Adani has already secured an un-
proposition as even the smallest
public sector bank now has total
business of around 2 lakh crore
with a fairly large network, requir-
ing many administrative and tech-
nical issues to be sorted out.
For a sound, strong and vibrant
banking system, the country cer-
tainly needs to look at having a
small number of bigger banks, in-
stead of large number of smaller
banks that pose a risk to the sys-
tem. A beginning can, therefore,
be made in the direction by identi-
fying the large (balance sheet size
of 6 lakh crore and above), me-
dium (3 lakh to 6 lakh crore)
and small banks (less than 3 lakh
crore) and merging the small
banks with their bigger cousins so
that the merged entity gains geo-
graphical reach to acquire a pan-
India presence, achieve economies
of scale, and enjoy a host of other
benets.What we need is ve to six
big and strong banks of the size of
SBI or even larger, to take on the fu-
CHENNAI
BusinessLine
TUESDAY JUNE 27 2017
not available. When output prices
move relatively faster than the in-
put prices, the single deation
method overestimates GDP/GVA
and vice versa.
In order to ensure accuracy, it is
high time to discard the single de-
ation method to estimate GDP/
GVA by using WPI as a deator. What
is therefore needed is to compute
both input and output price indices
for each sector and adopt double
deation method at the earliest as
suggested by the System of Na-
tional Accounts (SNA) 2008 the
standard compilation manual of
the IMF for the estimation of GDP.
Separate services sector input/out-
put price indices are required to de-
ate services sector GDP for which
WPI is anyway not appropriate. The
attention of authorities concerned
is called for, to resolve issues relat-
ing to the GDP deator in India, as
WPI has lost some of its usefulness.
The writer is former Principal Adviser
and Head of the Monetary Policy
Department, RBI
disclosed agreement with the
Queensland state government that
is believed to lower the burden of
royalty payments, especially in the
mines early years of operation.
Even if the federal government
does lend the money, the Adani
mine appears to be on somewhat
shaky ground, given that its inten-
ded export market of India has a
government with a stated policy
goal of cutting coal imports to zero.
While Australian governments
have in the past assisted with infra-
structure projects, the Adani mine
was supposed to be proof that the
private sector could pull of a major
project with only supportive gov-
ernment regulation and not cash.
There is still a good chance that the
federal government will pony up
the cash for Adani.
But Carmichael may also be the
last of its kind, with a well-funded
environmental campaign against
the mine and ongoing questions
about its viability. Its hard to see
any commercial bank being willing
to fund a massively costly coal pro-
ject in the future.
But oddly enough, the travails of
getting a new coal project of the
ground probably makes the jost-
ling over existing mines more
likely. REUTERS
ture challenges including funding
cross-border acquisitions.
Srinivasan Umashankar
Nagpur
Promoting UPI
Referring to UPI for whom? (June
26), Atal Pension Yojana, which
went online recently would be a
game-changer if wide publicity is
given for making monthly pay-
ment through BHIM. As rural-
based population is mostly on the
move for agricultural work or for
social compulsions, clubbing and
advertising payments of pension
while sending alerts in advance on
mobile will boost Atal scheme as
well as BHIM.
Good publicity for PMJJBY and
PMSBY via mobile alerts and re-
quest to use BHIM to enroll for
these insurance schemes in June
to avail of their full benet will be
ideal.
NK Bakshi
Ahmedabad
ISSN 0971 - 7528
. ..... .... ...CH-X
 https://telegram.me/TheHindu_Zone https://telegram.me/PDF4EXAMS

CHENNAI

BusinessLine
TUESDAY JUNE 27 2017 THINK 9

Selling online
GST rules for e-com operators and suppliers
Less transparency in economic policy
AJAY SRIVASTAV
behalf, provisions of TCS do not Finance Ministry and Reserve Bank publications no longer explain in detail, the official view on the economy
apply to such transactions.
The actual suppliers can claim nificance, as it promotes confid-
GST MASTERCLASS the credit of the TCS by e-com- ence in the policy regime. The ob-
merce operators. TCS deposited by jective of any economic policy can

I
n e-commerce, firms owning the operator into the government be defined as maximising the eco-
or managing the buy-sell account will be reected in the nomic well-being of the house-
platform are known as oper- cash ledger of the registered sup- holds in an economy. In modern
ators and those listing their plier. This can be used by the sup- economic situations, it implies
goods/services for sale are termed pliers at the time of discharge of CHARAN SINGH minimising deviation of ination
suppliers. GST has made elaborate tax liability. from its optimal rate, and real out-

T
provisions to bring both under The supplier who has supplied he monetary policy of put from its natural rate.
the tax net. the goods or services through the June 2017 threw up an A drying up of information in
Flipkart is an e-commerce oper- operator shall claim credit, in his interesting develop- this context is a matter of con-
ator because it facilitates external electronic cash ledger, of the ment. The RBI Governor cern.
firms to sell goods through their amount collected and reected in announced that members of the
platform. Pepperfry, which sup- the statement of the operator. Monetary Policy Committee Letting people know
plies furniture through its own The GST Network would match (MPC) had refused an invitation The communication policy is ex-
website, would also be considered the details of supplies and the from the Ministry of Finance for a pected to cover four broad cat-
an e-commerce operator. amount collected as furnished by private briefing. Why was the min- egories of issues interpretation
The e-commerce operator is re- e-commerce operator with the istry attempting to engage with of economic conditions including
quired to collect (i.e. deduct) an corresponding details of outward the members of MPC? What did it recent developments, content of
amount calculated at the rate of 1 supplies furnished by the con- want to share with the MPC which policy decisions, strategy and out-
per cent of the net value of taxable cerned supplier. was not already available in the look for the future.
supplies out of the consideration Where the details of outward public domain? In earlier years, publications
paid or payable to the actual sup- supplies furnished by the oper- The answer probably is the oi- from the Government and the RBI
Running dry Information flow from the government
plier of goods or services in re- ator do not match with the corres- cial analysis of the data. Why was would bolster the communica-
spect of supplies of ponding details fur- this analysis not put out in the tions policy for the benefit of eco-
goods and/or services nished by the public domain, but instead par- nomic agents in the country. theses, but very little by way of a arated from the FSR, but was a ence and respectability in both
made through such This is Part 8 of a series supplier, the discrep- celled aside for sharing behind These publications ensured ana- review of the Indian economy. shadow of its traditional size and quality and quantity despite host-
operator. to introduce readers to ancy shall be commu- closed doors with a few elite lytical rigour, high degree of Probably, finance ministry eco- quality. ing a large number of foreign-
The amount so de- GSTs intricacies. The nicated to both policy makers? transparency and a rationale for nomists wanted to cover the gap, The research-based Report on based economists, many of them
ducted/collected is previous part appeared persons. The fact of the matter is that policy formulation which pro- though belated, and provide a Currency and Finance was the pride non-resident Indians, at globally
called Tax Collection on June 26. To sell online there is no longer a robust com- moted more informed decision commentary on the Indian eco- of RBIs research department. This competitive rates.
at Source (TCS). The 1- through the e-com- munications policy; besides, by businesses. The market be- nomy, exclusively to the MPC report, after nearly 70 years of The Indian economy is passing
per cent TCS seems to be intro- merce portals, a firm has to re- there is inadequate economic re- nefited from regular communica- members. It would be more ap- publication, seems to have been through a great transition. First, it
duced for control purposes, for gister as normal tax payer under search emanating from oicial tion from oicial sources. propriate to restore the sanctity of discontinued unceremoniously. A is the fastest growing economy of
identifying suppliers who would GST and file all returns. This has to and institutional sources. However, in recent years, with the Survey to its earlier avatar and similar story holds true for other the world and therefore is an im-
pay the balance GST. The supplier be done even if a firm is exempted In India, both the RBI and the the world passing through a very share with the general public the research-based publications from portant country for economic
can take credit of the TCS paid by from registration on account of Centre have departed from their uncertain economic period, com- oicial interpretation of eco- the research wing of the RBI, elab- analysis.
the e-commerce operator. low turnover. decades-long convention of put- munications policies and oicial nomic developments in the previ- orating on oicial interpretation Second, ever since the new gov-
Even composition traders are ting forth their interpretation of publications have undergone a ous year. of economic development. ernment took over, three years
Source code not allowed to sell goods through economic data in the public do- significant change, albeit silently. The RBI, too, has been experi- In earlier years, regular feed- ago, there has been a paradigm
The time/intervals at which the e- the e-commerce portals. This pro- main. menting not only with its docu- back from readers and analysts shift in economic policy. The
commerce operator should make vision will keep the small firms While the RBIs hitherto de- Losing sheen ments and statutory publications. was sought in improving the RBI earlier government had its rules
such deductions is earlier of the not registered with the GSTN out tailed reports have become a pale Traditionally, the Survey has been a The Annual Report of the RBI has publications. in the socialistic pattern of society
two events: (i) the time of credit of of the e-commerce business, version of what they used to be, rich source of information for been shrinking and silent on These days more pertinent is- while the current regime does not
any amount to the account of the The TCS mechanism will in- the Finance Ministrys Economic economic analysts and oicials. many pertinent issues of the eco- sues probably engage institu- carry any such baggage.
actual supplier of goods and/or crease the compliance burden of Survey has become an overly the- The Survey, released a day before nomy such as non-performing as- tional economists. In such a transition, communic-
services; (ii) the time of payment e-com operators as they will have oretical tract; it no longer reects the Union Budget, provides the of- sets. ations policy through publica-
of any amount in cash or by any to maintain tax collection records, the view of the government on ficial interpretation of economic The analysis is getting brief and Falling short tions seems worsening, when it
other mode to such supplier. furnish them to the Government economic developments and developments in the previous statistical appendix shorter. The specialised, and fully funded should have been more transpar-
An electronic commerce oper- every month and undertake policy. Was the MPC sought out to year. The other statutory document, institution of the RBI, Centre for ent to promote confidence in the
ator can sell goods and/or services reconciliation. provide some oicial insights that However, in the past few years, Report on Trends and Progress of Advanced Financial Research and new policy regime. The uncertain
on his own behalf. However, it should have been part of the Sur- the Survey has been lacking in Banking (RTPB) has been through Learning (CAFRAL), was set up in and tense economic environment
would be treated as any other The writer is from the Indian Trade vey? direction. some interesting changes. Two 2011 to serve as a knowledge hub is not conducive to growth.
form of supply of goods and/or Service. The views are personal. Globally, in recent years, espe- The last Survey, released in Janu- years ago, RTPB became invisible, of the country, being inaugurated
services and chargeable to tax ac- Adapted from his book, The GST cially after the Great Financial ary 2017, was more like a research- having been submerged into the by the then Prime Minister. The writer is a professor of
cordingly. Since the goods and/or Nation: A Guide for Business Crisis, the communications policy based conference volume with Financial Stability Report (FSR). However, research output from economics and social sciences at
services are supplied on his own Transformation of governments has assumed sig- tentative propositions and hypo- Last year, the RTPB was finally sep- CAFRAL has not gained promin- IIM-Bangalore

All you wanted to know about...
B On the final leg of his
three-nation foreign trip,
Prime Minister Narendra
Modi is to pay a working visit
to the Netherlands today.
Modi would hold talks with
the Dutch Prime Minister
Mark Rutte in The Hague,
besides calling on the King of
the Netherlands.
entities that hike rates inordin-
ately, citing GST as the reason, will
be checked by this body.
The Anti-Profiteering Rules,
2017 lay down details about the
selection of the members of the
NAA and the other committees
that will assist the NAA in invest-
LOKESHWARRI SK igating the complaints, the pro-
cedure to be followed in investig-
SLATE ations and the powers given to
the authority.
ity will be relevant only in the
transition phase.
Why is it important?
Many countries that have adop-
ted GST such as Singapore and
Australia witnessed a spurt in in-
ation after implementation. Re-
tail ination in Australia, for in-
stance, spurted from 1.9 per cent
in the year before GST to 5.8 per
cent in the year when the tax was
be selected, they have to formu-
late the rules to determine profit-
eering and then listen to com-
plaints. It appears that quite
some time will pass before these
rules are efectively used in the
country.
Why should I care?
If a super-market you frequent is
selling you grocery at a higher
price stating that it is due to GST,
BusinessLine
TWENTY YEARS AGO TODAY
june 27, 1997
Reliance ushers corporate democracy
Reliance Industries has announced the issue of bonus
shares in the ratio of one equity share for every share held.
The ratio was announced by the Chairman, Mr. Dhirubhai
Ambani, at the companys annual general meeting. The
ratio was recommended by the board which met at the
same venue after seeking the shareholders view on it. The
bonus issue would have to be approved by an EGM as it was
not part of todays AGM resolutions. I am delighted to
announce that after due consideration of your views and
deliberations, the board of directors of the company has

B The united Oppositions

Presidential
candidate
Meira
Kumar is
expected to
file her
nomination
today. Kumar was the first
woman Speaker of the
country during the UPA
regime. A former diplomat,
Kumar is the daughter of the
late Dalit icon Jagjivan Ram.
B Optical and data networking
products company Tejas
Networks is to make its stock
market debut today. The issue
price is fixed at the higher end
of the price band of 250-257
per share. Its initial public
ofer, which was
oversubscribed 1.88 times,
was open for subscription
from June 14-16.
B LG is expected to add two
more smart-
phones in the G6
series the G6 Pro
and G6 Plus
today. . LG G6 Pro
is expected to be
priced at about
46,441, while the G6 Plus will
be priced approximately
58,055. In comparison, the
G6 is priced at $729 or
46,470.
B The Andhra Pradesh
government is to present the
first ever Annual MSME
Awards, in an efort to
encourage entrepreneurship,
employment generation and
economic growth in the State.
As many as 20 awards under
various categories will be
given. The awards will be
presented by Chief Minister N
Chandrababu Naidu. June 27
is also the International day
for MSMEs.
E ven as businesses, big and
small, burn the midnight oil
getting ready for the GST, con-
sumers also need to get used to
the bevy of terms that form part
of this tax regime. One term
thrown around frequently these
days is anti-profiteering.
What is it?
As the name suggests, these rules
prevent entities from making ex-
cessive profits due to the GST.
Since the GST, along with the in-
put tax credit, is eventually expec-
ted to bring down prices, a Na-
tional Anti-profiteering Authority
(NAA) is to be set up to ensure that
the benefits that accrue to entit-
ies due to reduction in costs is
passed on to the consumers. Also,
easy
ACROSS
01. Bend knee in worship or
respect (9)
05. Sorrowful (3)
07. Type of lily, wakerobin (4)
08. Contrite (8)
10. With pleasant or high relish
(8)
11. Takes advantage of (4)
13. Portray (6)
15. Drink together familiarly (6)
18. Adult leveret (4)
19. Diplomatic form (8)
22. Practise play (8)
23. Fizzy water (4)
24. Terminate (3)
25. Emotional thought (9)
SOLUTION: BL Two-way Crossword 879
ACROSS 1. Minute 4. Shrunk 9. Nonsuit 10. Rhino 11. Flew
12. Boss 13. Elk 15. Near 16. Firm 19. Aid 21. Earl 22. Trot
24. In bud 25. Portico 26. Nature 27. Relief
DOWN 1. Manifestation 2. Nankeen 3. Tour 5. Hardship
6. Utile 7. Knock spots of 8. Stood 14. Calendar 17. Martini
18. Graph 20. Debut 23. True
Once the registered entity,
which has profiteered il-
legally, is identified, it
can be asked to one, re-
duce prices if it has hiked
prices too much and ,
two, if price reduction
due to GST has not been
passed on to customers, to return
to the customer the sum equival-
ent to the price reduction along
with 18 per cent interest from the
date the higher sum was collec-
ted. The authority can impose
penalty on the profiteer or cancel
its registration.
The rules however do not lay
down the formula based on
which the extent of profiteering
can be determined. This task has
been left to the NAA. The Author-
DOWN
01. Bestowed, allowed (7)
02. Substantives (5)
03. Hell, the lower world (6)
04. Lose footing (4)
05. Partners boy child (7)
06. Fruit from palm (5)
09. Seat in a boat (5)
12. Opening of river, bottle etc
(5)
14. Very thirsty (7)
16. Weight for stabilising vessel
(7)
17 . Incarceration (6)
18. Heroin (5)
20. Old woman (5)
21. Roman war god (4)
rolled out. Malaysia was able to
avoid a similar surge in
ination by efectively
implementing anti-
profiteering rules. A for-
mula was laid down
wherein the net profit
margin in the period
preceding GST was compared to
the post-GST margins to see if in-
ordinate gains had gone to the
bottom-line. Gains were determ-
ined after taking in to account the
suppliers cost, costs incurred for
furthering business, market con-
ditions and other relevant issues.
The Centre is also thinking
along similar lines. But it is way
behind schedule in forming the
rules. The Authority is yet to be
formed, the committees have to
bl two-way crossword 880
you can file a complaint to the
anti-profiteering authority. Simil-
arly if you are aware that the cost
recommended bonus in the ratio of 1:1, Mr. Ambani told
the shareholders who had earlier suggested several ratios
including 1:1, 2:1, and 3:5. The AGM, according RIL oicials,
of your toothpaste has moved was attended by over 3,000 shareholders, out of its total
lower, but your grocery-wallah shareholder strength of 26 lakhs. This is the third issue of
tries to pull a fast one on you by bonus shares by Reliance after it went public in 1977 and
selling it to you at the old price, first in the past 14 years. The first issue of bonus share was
you know whom to complain to. in 1980 and second in 1983, both in the ratio of 3:5.
This is a tool that the Centre Dhirubhai does it again
needs to wield efectively to keep In a gesture quite typical of his AGMs, Mr. Dhirubhai
prices under check and ensure Ambani finalised the ratio of RILs bonus issue after a brief
that businesses do not pocket all board meeting at the AGM. Mr. Ambani, who gained form
the gains. with each minute of the twenty-third AGM, said at the start
that the bonus ratio would be decided after hearing
The bottomline shareholders expectations. While most of investors lauded
Profit is fine, profiteering is not. Mr. Ambanis plan, there were sceptics, one of whom said it
Dont let someone profiteer at was a ploy to please investors. If that is what you wish to
your expense. think, then go ahead, a visibly agitated Dhirubhai
retorted. The main concern of shareholders was that the
A weekly column that puts the fun ratio must be one that benefits them, at the same time
into learning reducing the price to a level afordable to the public.
not so easy
ACROSS with the people within it (9)
01. Clung with feet in order to make DOWN
a bob in church (9) 01. Admitted Edward, who perhaps
05. Stated one had left, not being rang ahead (7)
happy (3) 02. Words that reveal the sisters
who have swallowed nothing
07. The cuckoo-pint provides spirit
with a head (4) (5)
08. Being remorseful, author puts 03. Be sure to find it out in hell (6)
X in sex appeal (8) 04. Journey may be taken before
10. Showing discrimination, it may the fall (4)
be pleasant to the palate (8) 05. Walks all over boy that came
11. Takes advantage of you and me with present partner (7)
with exceptional sprint starts 06. Notable times in history one
(4) takes out (5)
13. Show how it was non-u due to 09. Long form marked by
Ancient Briton (6) surveyors (5)
15. Associate intimately with the 12. Voicelessly say its where the
Honourable Robert? Wrong! river meets the sea (5)
(6) 14. It quietly got ones back up,
18. Raised as an irrelevancy from a being so thirsty (7)
leveret (4) 16. Laboratory returned the final
19. Diplomatic etiquette upsets balancing weight (7)
troop passing before the 17. Strange ways of joining up what
Colonel (8) poets stone walls dont make
22. Try being an actor (8) (6)
23. Party returned in South Africa 18. With sense, its plain its a piece
may make a splash (4) of gymnasium equipment (5)
24. Eventually find oneself with this 20. Give credit to an individual old
up (3) woman (5)
25. Feeling of being despatched 21. Disfigures the planet (4)

CM . ..... .. .....CH-X
YK
 https://telegram.me/TheHindu_Zone
8 THINK
0
xyz
tuesday, june 27, 2017
Is WPI useful in India anymore?
Using just wholesale price index as deflator could distort real GDP. Price indices for all inputs and outputs would work better
Clean-up act
BARENDRA KUMAR BHOI
PMCs success with muni bonds may not be easy
P
rior to the introduction of
to replicate, but it can serve as a role model for the all-India Consumer
local bodies. Price Index, popularly
known as CPI combined
T
he municipal bond market in India is (rural plus urban), the Wholesale
Price Index (WPI) was the most use-
coming alive after prolonged hiberna-
ful price index in India. It measured
tion, with Pune Municipal Corporation the weekly rhythm of price move-
(PMC) raising 200 crore in the rst ment in the country.
tranche of a proposed 2,264-crore ofer, and list- Since 2009, WPI has been com-
ing the bond on BSE last week. The ten-year bond puted on a monthly basis, similar to
other price indices. The Reserve
ofer carrying a coupon of 7.59 per cent was over- Bank of India (RBI) primarily used
subscribed six times, raising hopes that future of- WPI ination for the formulation of
fers will be well-received. No doubt, the take-of of monetary policy under monetary
the municipal bond market is critical for Indias targeting framework as well as un-
der multiple indicator approach
large cities and towns to upgrade their creaking (MIA) although ination meas-
infrastructure, to accommodate a burgeoning ured by other indices was also mon-
population. The ability of municipal bodies to be itored/ analysed.
self-sustaining is also critical to the success of the Moreover, the Central
Statistics Oice (CSO)
Centres pet projects such as Smart Cities and AM-
has been predomin-
RUT (Atal Mission for Rejuvenation and Urban antly using WPI to de-
Transformation). After their recent proigacy ate GDP at current
with farm loan waivers and the absorption of prices to arrive at GDP
UDAY-related obligations, State government n- at constant prices.
Where only volume
ances have little headroom to fund long-gestation data are available, the
capital requirements for such projects. CSO uses WPI to convert volume to
Despite a crying need for it, the municipal bond value to arrive at GDP at current
market has had a rough passage ever since it rst prices.
agged of in the late nineties. Between 1997 and Effects of low WPI
2010, the city corporations of Ahmedabad, Nashik WPI ination does not receive as
and Bengaluru experimented with bond issues much attention as earlier for sev-
but barely managed to raise 1,400 crore. The fact eral reasons. Following the Urjit Pa-
tel Committee recommendations,
that these bonds were not tradeable and lacked
the RBI Act has been amended and
regulatory clarity made for poor investor re- flexible ination targeting (FIT) has
sponse. SEBIs detailed guidelines for the issue been put in place with CPI ination
and listing of municipal bonds in March 2015, cla- as the nominal anchor. During the
ried their regulatory status and rendered them period of transition from MIA to FIT,
at least WPI ination was men-
safer for investors. But with these new rules re- tioned along with CPI ination in
quiring municipal corporations to le a complete the monetary policy documents.
prospectus, obtain credit ratings, create an es- Under the FIT, as the RBI has been
crow account to segregate proceeds and appoint mandated to achieve price stability
measured in terms of CPI ination,
an independent agency to monitor end-use of the use of WPI ination has been
funds, apart from having positive net worth, the
bar was set too high for issuers. With SEBI recently
doing away with the net worth criterion and re-
placing it with the requirement of a revenue sur-
plus for three years, a few corporations are now
likely to make the cut.
Having said this though, it is doubtful if PMCs
Cant say that coal is a dying industry
success will immediately clear the decks for a
series of similar ofers by other local bodies. For Existing mines in Australia are inviting attractive bids, while new projects such as Adanis are weighed down by uncertainties
starters, the proceeds of this ofer are specically CLYDE RUSSELL
earmarked to fund PMCs project to provide 24X7
H
water supply and there is an elaborate structured eres a question for the
anti-coal lobby. If coal is
payment mechanism to service these bonds. dying, how come there
PMCs property and water tax collections, growing is an increasingly heated
at a brisk pace, will be deposited every month into bidding war going on for Rio Tintos
an escrow account towards servicing this debt. As coal mines in Australia?
Heres another question, this
city corporations go, PMC also has sound nan-
time for the pro-coal lobby. If coal
cials and is relatively well-run, which cannot be still has a viable long-term future as
said for most local bodies. It has managed to an energy source, how come the
steadily expand its revenue surplus in the last four worlds biggest planned new mine
years. In FY16, at 1,840 crore, its surplus was at is now hostage to whether the Aus-
tralian government decides to loan
nearly half its total income. It is these factors that it money?
have helped it secure a high investment grade rat- Reconciling these two questions
ing of AA plus for its bonds. But perhaps, as PMC may seem like a challenge but both
and other well-run local bodies like it taste market the battle for Rio Tintos existing
mines and the struggles of Indias
success, it will set an example for their peers to Adani to build its Carmichael pro-
clean up their act. Market forces may be the best ject neatly show where coal cur-
triggers to nudge Indias much-reviled local bod- rently nds itself. Rios mines in the
ies towards professional accounting and public Hunter Valley north of Sydney are
attractive to both Glencore and Chi-
accountability on their opaque workings.
nas Yancoal because they are likely
to be protable for the remaining
life of the pits, which is expected to
be around 20 years.
OTHER VOICES The Rio mines already have all the
necessary infrastructure, being
connected by rail to the major ex-
port harbour of Newcastle, the
worlds largest coal export port.
As Syrian war winds down, the region heats up They also have existing customers
The emergence of the Islamic State had the salutary efect of
uniting the disparate forces in that conict in a single
purpose: defeating and destroying the extremist group. It is
ironic then that as the prospect of that defeat now appears
within grasp, there is the equally likely prospect of a wider and LET TERS TO THE EDITOR
more dangerous ght over the future of Syria and the region, a
struggle that threatens to pit the West, particularly the US and
its regional allies, against Iran. TOKYO, 26 JUNE 2017 Gorkhaland: Unmerited demand
Regarding the editorial Trouble in
the hills (June 24), the indenite
agitation launched by the Gorkha
Janmukti Morcha (GJM) for a sep-
The Iran puzzle
arate Gorkhaland seems to be un-
One of the Obama administrations biggest diplomatic justied and has afected life in the
ambitions was to establish better relations with Iran. The most hills forcing tourists not to visit
important manifestation of that efort was a deal under which Darjeeling. This is bound to lead to
Iran agreed to curb its nuclear program in exchange for the a sharp fall in the State revenue.
lifting of economic sanctions. That momentary thaw now The interests of people of the
seems at risk. Partly this is a result of Irans barely concealed hills are of paramount import-
territorial and political ambitions. Partly of President Donald ance and cannot be ignored by the
Trumps fondness for Saudi Arabia. NEW YORK, 25 JUNE 2017 State Government. Smaller States
are favoured for smooth function-
ing and e-governance. But
whether there are enough
Upholding truth and trust in news grounds for bifurcation, and re-
Many would agree the consequences of disinformation, sources for the regions economy
misinformation and hate speech can be disastrous for to grow after bifurcation needs
communities and nations. Just what steps should be taken to critical survey. In the case of
safeguard societies, however, is a matter of considerable Gorkhaland, the move is not sus-
debate. Germany and Britain are among the nations looking at tainable. Tea estates alone cannot
legal measures to tackle this problem. Singapore too is generate the revenue needed to
preparing to introduce laws next year. The law must aim to get run a separate state. It is worth
the likes of Facebook, Google and Twitter to separate the wheat noting that Jharkhand was carved
out of Bihar, but even with more
from the chaf. SINGAPORE, 26 JUNE 2017
Published by N. Ram at Kasturi Buildings, 859 & 860, Anna Salai, Chennai-600002 on behalf of KASTURI & SONS LTD., and Printed by D. Rajkumar at Plot B-6 & B-7, CMDA Industrial Complex, Maraimalai Nagar, Chengleput Taluk, Kancheepuram Dist., Pin: 603209. Editor: Raghavan Srinivasan (Editor responsible for selection of news under the PRB Act).
CM
YK
completely done away with. All pro-
jections relating to ination are
currently done in terms of CPI.
As of now, WPI is predominantly
used for converting GDP/GVA at cur-
rent prices to the same at constant
prices. Several items of services sec-
tor GDP that are not included in the
WPI basket are deated by WPI to
compute real GDP of this sector. In
fact, the GDP deator, which is
dened as a ratio of GDP at current
prices to GDP at constant prices
multiplied by 100, closely tracks
WPI ination.
The GDP deator, which is often
argued as the true indicator of ina-
tion, has been at the focal point of
discussion while analysing the real
GDP growth in India during the re-
cent period. The sharp decline in
the GDP deator and
the dramatic decline
in WPI ination coin-
cided. This contrib-
uted signicantly to
real GDP growth in In-
dia notwithstanding
modest rise in produc-
tion during recent
years. Compilers of
GDP argued that fall in the input
prices has led to large value addi-
tion and hence high GDP growth in
real terms. However, ground realit-
ies have been somewhat less optim-
istic, particularly in the manufac-
turing sector.
New WPI computation
While the base year of the current
GDP series is 2011-12, the base year
for the WPI series has till recently
been 2004-05. Since April 2017, this
anomaly has been overcome follow-
ing revision in the base year of WPI
from 2004-05 to 2011-12 to align it
with the base year of other macroe-
conomic indicators. The new base
2011-12 is already ve years old. The
next revision of base year is being
discussed. In this context, a general
for the high-quality thermal coal
used to generate electricity, includ-
ing utilities in Japan, which have
preferred long-term supply agree-
ments to the more volatile spot
shipments that are more character-
istic of deals to sell to major import-
ers China and India.
In some ways the Rio mines up
for sale are insulated from the
downturn in global coal demand
expected over the next 30 years, be-
cause they supply fuel to customers
who are likely to be among the last
to switch of coal-red generators,
assuming renewables do eventu-
ally succeed in killing of the pollut-
ing fuel. Acquiring an existing asset
is likely far more attractive to a
company such as Glencore than de-
veloping new mines, with the asso-
ciated capital costs and inevitable
opposition from environmental
groups.
Glencore raised its ofer for Rios
Hunter Valley mines to $2.675 bil-
lion in cash on June 23, making its
bid some $225 million more than
Yancoals proposal. Rio said it
would study the revised Glencore
ofer.
Still in demand
It may seem incongruous to envir-
onmentalists that there is a bidding
Send your letters by email to bleditor@thehindu.co.in or by post to Letters to the Editor, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.
industries there, its progress is no
better than Bihar.
It will be good if the agitation is
immediately withdrawn and an
amicable solution is discussed.
Jayant Mukherjee
Kolkata
Banks in a tight spot
This refers to New dynamics at
work in credit policy by RK
Pattnaik and Jagdish Rattanani
(June 26). The formation of MPC
has given a new dimension to the
policy initiatives of RBI, till now
the prerogative of the RBI Gov-
ernor. The decline in GDP growth
post-demonetisation along with
the declining trend in ination
could have inuenced MPC mem-
ber Ravindra Dholakia to push for
a 50-basis point rate cut.
No doubt from the short-term
perspective it appears logical. But
considering that domestic invest-
ment is not picking up, and the un-
certainty surrounding the impact
Measuring services inflation High time we had an index for it BLOOMBERG
suggestion would be to switch over
to the chain-based method.
A One of the striking features of
the new WPI series is that the item
level averaging is being done by us-
ing geometric mean, instead of the
arithmetic mean used earlier. This
is as per international best practice
and similar to the practice adopted
for the CPI. Data available for the
overlapping period with old base
and new base indicate that the WPI
ination as per new base is consist-
ently lower than the same as per the
old base. Several reasons are re-
sponsible for this outcome. The
geometric mean itself has signic-
antly moderated WPI ination, be-
sides other factors such as change
in the composition of basket,
weighting diagram, and so on.
Moderation of WPI as per revised
base has pushed up real GDP/GVA
considerably during recent years.
To remove the inuence of scal
policy, indirect taxes have been ex-
cluded from the quotations used to
compute new WPI. This will make
the new WPI conceptually closer to
Viable still A Rio Tinto coal mine REUTERS
war for something that has been de-
clared a dying industry, but there is
still a medium-term future for coal,
and Glencore and Yancoal are try-
ing to prot from that.
The International Energy Agency
(IEA) said in its medium-term coal
market report in December that it
still expects growth in coal demand
up to 2021, albeit at a considerably
slower rate.
The rise in coal demand is likely
to be driven by India and Southeast
Asia, according to the IEA, with top
consumer China actually using less
by 2021 than in 2015. The IEA expects
of GST on ination, other mem-
bers of MPC would have voted
against a rate cut, preferring in-
stead a wait and watch ap-
proach. The fact that the earlier
rate cuts were not fully passed on
by banks to the end client might
have also inuenced their de-
cision. The problem banks face of
stressed assets along with paucity
of capital has put them in a tight
spot with little or no scope for
credit expansion to fuel growth.
Overall, banks are going through a
consolidation phase now.
Srinivasan Velamur
Chennai
PSU banks cross-merger
Following the merger of ve asso-
ciates with the parent State Bank
of India very recently and strong
political will demonstrated by the
government, consolidation
among public sector banks has
now gained momentum. Cross-
merger, however, is not an easy
https://telegram.me/PDF4EXAMS
the producers price index. Exclud-
ing excise duty from the computa-
tion of WPI has also partly contrib-
uted to lower WPI ination during
recent years, which in turn has
pushed real GDP up to some extent.
A high-level Technical Review
Committee has been set up to dy-
namically review periodically the
articles to be included/ excluded
from the revised basket. Moreover,
the new WPI series is computing
food ination a combination of
products and articles. Improve-
ment in the compilation of WPI is
unlikely to address the problems
with the GDP deator and its efects
on GDP computation.
Shift to double deflation
A better way to estimate GDP accur-
ately is to deate input and output
prices through separate indices,
popularly known as double dea-
tion. Unfortunately, several devel-
oping countries such as China and
India use single deation method
to compute real GDP/GVA as separ-
ate indices for input and output are
global coal demand to be 5.636 bil-
lion tonnes of coal equivalent in
2021, up from 5.4 billion in 2015,
equating to an average annual
growth rate of 0.6 per cent, down
from 2.5 per cent over the decade to
2015.
Like all forecasts, the IEAs estim-
ates can be undone by changing cir-
cumstances, and it does appear to
be the case that renewable energy
sources such as solar and wind are
making faster than initially expec-
ted inroads, especially in India.
Unpredictable situation
Its this mounting uncertainty that
is making it hard for Adani to get its
planned 25-million-tonne-a-year
Carmichael mine in Queensland
state to a stage where it can actually
start construction.
While the Indian conglomerate
has taken what it termed a nal in-
vestment decision on the $4 billion
mine, its also likely that it wont go
ahead unless support from Aus-
tralias federal government is
forthcoming.
Specically Adani wants close to
$1 billion in loans from the govern-
ment to build some 400 km (240
miles) of new rail track to link the
mine to the planned export port.
Adani has already secured an un-
proposition as even the smallest
public sector bank now has total
business of around 2 lakh crore
with a fairly large network, requir-
ing many administrative and tech-
nical issues to be sorted out.
For a sound, strong and vibrant
banking system, the country cer-
tainly needs to look at having a
small number of bigger banks, in-
stead of large number of smaller
banks that pose a risk to the sys-
tem. A beginning can, therefore,
be made in the direction by identi-
fying the large (balance sheet size
of 6 lakh crore and above), me-
dium (3 lakh to 6 lakh crore)
and small banks (less than 3 lakh
crore) and merging the small
banks with their bigger cousins so
that the merged entity gains geo-
graphical reach to acquire a pan-
India presence, achieve economies
of scale, and enjoy a host of other
benets.What we need is ve to six
big and strong banks of the size of
SBI or even larger, to take on the fu-
CHENNAI
BusinessLine
TUESDAY JUNE 27 2017
not available. When output prices
move relatively faster than the in-
put prices, the single deation
method overestimates GDP/GVA
and vice versa.
In order to ensure accuracy, it is
high time to discard the single de-
ation method to estimate GDP/
GVA by using WPI as a deator. What
is therefore needed is to compute
both input and output price indices
for each sector and adopt double
deation method at the earliest as
suggested by the System of Na-
tional Accounts (SNA) 2008 the
standard compilation manual of
the IMF for the estimation of GDP.
Separate services sector input/out-
put price indices are required to de-
ate services sector GDP for which
WPI is anyway not appropriate. The
attention of authorities concerned
is called for, to resolve issues relat-
ing to the GDP deator in India, as
WPI has lost some of its usefulness.
The writer is former Principal Adviser
and Head of the Monetary Policy
Department, RBI
disclosed agreement with the
Queensland state government that
is believed to lower the burden of
royalty payments, especially in the
mines early years of operation.
Even if the federal government
does lend the money, the Adani
mine appears to be on somewhat
shaky ground, given that its inten-
ded export market of India has a
government with a stated policy
goal of cutting coal imports to zero.
While Australian governments
have in the past assisted with infra-
structure projects, the Adani mine
was supposed to be proof that the
private sector could pull of a major
project with only supportive gov-
ernment regulation and not cash.
There is still a good chance that the
federal government will pony up
the cash for Adani.
But Carmichael may also be the
last of its kind, with a well-funded
environmental campaign against
the mine and ongoing questions
about its viability. Its hard to see
any commercial bank being willing
to fund a massively costly coal pro-
ject in the future.
But oddly enough, the travails of
getting a new coal project of the
ground probably makes the jost-
ling over existing mines more
likely. REUTERS
ture challenges including funding
cross-border acquisitions.
Srinivasan Umashankar
Nagpur
Promoting UPI
Referring to UPI for whom? (June
26), Atal Pension Yojana, which
went online recently would be a
game-changer if wide publicity is
given for making monthly pay-
ment through BHIM. As rural-
based population is mostly on the
move for agricultural work or for
social compulsions, clubbing and
advertising payments of pension
while sending alerts in advance on
mobile will boost Atal scheme as
well as BHIM.
Good publicity for PMJJBY and
PMSBY via mobile alerts and re-
quest to use BHIM to enroll for
these insurance schemes in June
to avail of their full benet will be
ideal.
NK Bakshi
Ahmedabad
ISSN 0971 - 7528
. ..... .... ...CH-X
12 hindustantimes
e sta b l i s h e d i n 1 9 24
Noroomfor
misogynyhere
Gender cannot be a factor in
securing hotel accommodation
T
here is hardly a hotel anywhere in the world which
does not tell the customer that rights of admission
are reserved. But, even so, the policy followed by a
Hyderabad hotel which states that locals, single
ladies and unmarried couples are not allowed is a bit
of stretch, not to mention misogynistic.
This came to light when a single woman
traveller was denied a pre-booked room
by the hotel. The hotel seemed to think that turning the woman
out on to the street was the better option than giving her a room.
And in a nasty twist to the whole tale, it would appear that this
policy was driven by the police asking the administration to not
provide rooms to single women as the area was unsafe. This is
astounding given that it is the duty of the police to make sure that
all areas are safe and that women are not restricted on this count.
This, however, is not the first time that hotels have discrimi-
nated on what can only be called moral grounds. Such discrimi-
natory policies are never openly stated but are practised never-
theless. The bias against single women extends far beyond
hotels. In many attacks on women, the response of both the
police and society is to question why she was out alone at night
the suggestion being that women should always be accompanied
by a man or not go out at night. Single women also face unneces-
sary harassment and discrimination when trying to find accom-
modation, the assumption being that a single woman will
encourage male visitors to come as though this were a crime.
Women across the world are opting to stay single, travel inde-
pendently and carve out their own space both in the personal and
public sphere. This is a choice not a deviation. In India, still a
largely patriarchal society, a single woman beyond a certain age
is considered someone left on the shelf, an object of contempt or
pity. This goes against an aspirational generation of Indians who
want to engage with the world on their own terms. The single
woman traveller is a big segment of the hospitality industry. For
that reason, if nothing else, hotels should do away with these dis-
criminatory policies. And the police should do its job instead of
making things worse for women than they already are.
Iraq could emerge as a
model modern Arab state
Baghdadmustadheretoitsdemocratic,
non-sectarianwaystoinspireWestAsia
T
he Iraqi city of Mosul this week celebrates its first Eid free
of the oppressive rule of the Islamic State (IS) in three
years. IS announced its existence from ramparts of the
600-year-old Grand al Nusri mosque in Mosul. In keeping with
the IS nihilistic tendencies, its retreating fighters blew up the
famous leaning minaret of the mosque. Kurdish troops have
begun a similar process of driving out IS from its present capital
of Raqqa, across the border in Syria. IS is now a shadow of its
former self, and few doubt, including the self-styled caliphates
leadership, that the endgame is well under progress.
These developments would hopefully lead West Asia and, in
particular, the Arab world to contemplate what lessons they can
draw from IS short but brutal life. The Iraqi government should
remember that IS fighters were initially welcomed with open
arms by the Sunni inhabitants of Mosul because of their anger at
the corrupt, pro-Shia regime of the then prime minister Nouri
al-Maliki. The present ruler has shown himself to be less sectar-
ian in his policies, but addressing the sensibilities of Iraqs Sunni
Arab and Kurdish minorities will determine whether IS will not
reappear in a new avatar. Prime Minister Haider al-Abadi is an
expert on transportation and connectivity, both political and
economic, should be what the policies of a post-IS Iraq should be
about.
Christian Europe underwent nearly a century of slaughter
before it accepted the concepts of modern secularism. The Arab
Islamic world need not follow that path. But the past dichotomy
of secular dictators and religious monarchies has shown itself to
be a failure. Of all the countries coming out of the present round
of violence and political instability, Iraq is probably the only one
that could emerge as the model for a new modern Arab state
democratic, republican, federal and non-sectarian that West
Asia needs for its future.
R. N. I. No. 503/57 POSTAL REG. No. DL(ND)-11/6058/2015-16-17 Licensed to post without prepayment LICENCE NO. U(C)-113/2006-08 Air surcharge: Raipur and beyond by Rail or Road - Re 5/-, Ahmedabad, Bangalore, Coimbatore, Chennai, Cochin, Goa, Hyderabad, Khajuraho, Mumbai, Trivandrum, Visakhapatnam, Vijayawada and beyond by Rail or Road - Rs. 10/-
Printed & Published by SHARAD SAXENA for and on behalf of HT Media Ltd. 18-20, Kasturba Gandhi Marg, New Delhi-110001 and printed at HT Media Ltd. Presses at Plot No.-8, Udyog Vihar, Greater Noida, Distt. Gautam Budh Nagar. (UP). Pin-201306, B-2, Sector 63, Noida, Distt. Gautam Budh Nagar. (UP),
incidentally
GOPALKRISHNA GANDHI
The state of fear and fearlessness
The Emergency is the poison that tells us that its
antidote courage exists right in our grasp
T
hese last days of June, back in
1975, were a torment.
Indira Gandhi, an unbelieva-
blypowerfulwomanof58,hadgot
PresidentFakhruddinAliAhmed
to declare a state of national
EmergencyonJune25nightthatyear,onthe
ground of internal disturbance. Within
ourtake hoursoftheproclamation,shehadputalmost
every single Opposition leader of weight in
jail,cuttheelectricpowerlinestomajornews-
papers, gagged the press from making any
comment,andletlooseinIndiasair invisible
but asphyxiating fumes of fear, abject fear.
StalwartOpposition leaders like Jayapra-
kashNarayan,MorarjiDesai,AtalBihariVaj-
payeeandLalKrishnaAdvaniwerejoinedin
jail by some Congressmen who dared to dis-
sent, like Chandrashekhar and Mohan
Dharia.IndiraGandhiturnedovernightfrom
IndiasprimeministertoIndiasdictatorwith,
standingbyher,hersonandalterego,Sanjay
Gandhi.Thousandsacrossthecountry,politi-
cians and non-politicians, were jailed under
the open-ended provisions of preventive
detention.Andthousands,hundredsofthou-
sandsmore,wereleft inholydreadofsimilar
preventive arrests.
Preventiveofwhat?Whatwastheinternal
disturbance?
U P H I L L TA S K
n Uttar Pradesh Chief Minister Yogi Adityanath, Lucknow
Will Adityanath be able to
fulfil BJPs poll promises?
Overcoming Uttar Pradeshs financial constraints will be a
challenge and also a test of his administrative skills
SUNITA
ARON
R
ecently Mulayam Singh Yadav was
asked to comment on the perform-
ance of the Yogi Adityanath govern-
ment in Uttar Pradesh. He declined
saying he preferred to wait for six months.
Thats because Yadav belongs to the genera-
tion that neither celebrated nor condemned
the performance of a government before it
completed six months in office.
TheBJPhadmadetallpollpromises in UP,
the execution of which will require leader-
ship skills as the CM heads a raw team.
Recently in an informal chat, he shared his
ambitious plans and projects in various sec-
tors, especially health and education.
The CMs blueprint, likely to be
announced on the 100th day, might lay out
the direction his government embarks on,
besides the populist measures like the anti-
Romeo squads, triple talaq and cow slaugh-
ter that have already been announced.
Law and order is the Adityanath govern-
ments Achilles heel. Caste conflicts have
intensified, and two major communities feel-
ing marginalised are the Muslims and Dalits,
which forms 40% of the states population.
The BJP has tried to assuage the senti-
ments of lower castes by nominating a Dalit
innervoice
IMAGINATION CAN BE GIVEN
WINGS TO MAKE US REACH
OUR TARGETS
Rajasthan Patrika Pvt. Ltd., Sector-V, Phase-IV-E, Near Bambala Pulia, Opp. M.P.S. School, Pratap Nagar, Jaipur (Rajasthan).
Board: (011)23361234 Editorial: (011)66561234 Extn. 1254, 1268 Circulation: (011)66561111 Advertising: (011)66561389 Fax: (011)66561270.
Editor, Delhi: NARDEEP SINGH DAHIYA
comment
For two years preceding, Indira Gandhis
Congress had its back to the wall in Gujarat
and Bihar where youth were demanding an
ousterofthestategovernmentandacompre-
hensive change in the character of politics,
with the iconic Jayaprakash leading the stu-
dents movement in Bihar. At the core of the
protest was a clear sense that Indira Gandhi
was becoming an autocrat, who encouraged
sycophancy like that of the Congress presi-
dent who said India is Indira.
Power was slipping away from her and,
intolerable to her,thesame powerinformal
butindisputablewasswarmingtoJayapra-
kash.Hismovementagainstcorruption,mis-
governanceandauthoritarianismtouchedso
vital a chord, first in Bihar and then beyond,
with the people of India that he came to enjoy
countrywide the sentiment Gandhi had pub-
licly expressedforhim:Adoration.Andhere
mein ek prakash went the opening cry, fol-
lowed by a full throated Jayaprakash! Jaya-
prakash!
When leading a procession against the
Bihargovernmentlathisraineddownonhim
inPatnaonNovember4,1974,breakingtwoof
his ribs and an elbow, JP fell vowing I will
teach this government a lesson. The Con-
gress lost the June 1975 elections in Gujarat,
withaunitedOppositiongovernmentreplac-
SUBHANKAR CHAKRABORTY/HT
as President of India, but the Dalits are not
amused as some claim that Kanshi Ram
rejected a similar offer on the plea that he did
not need a post that silences him.
Of all the BJP governments, Kalyan
Singhs first stint in early 1990s is remem-
bered as the partys best rule. Singh had
taken four concrete steps to display his
resolve first, action was taken against two
criminals, Raghuraj Pratap Singh and
Mukhtar Ansari; second, the revival of the
Chunar cement factory, coupled with revival
plans for UPTRON and Scooters India; third,
copying was made a cognisable offence; and
fourth, goons were paraded in market places.
In West UP the traders, including the Mus-
lims, hailed Singhs action against criminals
in every district. However, he lost this good-
will in his second term when he shook hands
with same criminals to save his government.
Many saw some glimpses of the Singh
regime in Yogis government when he
brought in many first timers as ministers.
Though the CM is optimistic about the rad-
ical changes that the people will notice soon,
he will have to prioritise given UPs financial
constraints constraints that will multiply
after farm loans are waived.
The challenge will be to implement the
promises made in the partys manifesto. Yogi
Adityanath comes out as a young mahant
ready to prove his administrative skills.
The coming years will tell if he remains a
mahant or becomes a manager, and a suc-
cessful one at it. As they say, a leader capable
of managing UP well can run India too.
saron@hindustantimes.com
n
PP Wangchuk
Thequalityofourabilitytoimagineisawon-
derful trait that enables us to do whatever
we want. In fact, imagination makes us
dreamandaspireforallthegoodthingsoflife
that may not pass our way otherwise.
Allgreatmeninhistoryweremenofimag-
ination.Imaginationhelpedthemdoproper
planning and carry out the steps needed to
access their needs.
Imagination acts as a sort of catalyst to
make you realise your dreams. Albert Ein-
HINDUSTAN T IMES, NEW DEL H I
n Indira Gandhi turned overnight from Indias
prime minister to Indias dictator FILE
ing the heartily disliked Congress Chiman-
bhai regime. A nationwide railway strike
threatenedtoclogthecountrysarteriesThen
came the denouement : The Allahabad High
CourtunseatedIndiraGandhion an election
petition charging electoral malpractice and
the S C upheld the high court ruling.
The 21-month-long night of the national
Emergency that followed saw, among other
horrors, the Constitutions draconian 42nd
Amendmentwhichmadeanyamendmentby
Parliament immune from judicial review.
Amar Akbar Anthony is a
symbol of a tolerant India
The 1970s Hindi film is a cultural marker of a time when
there were no gangs looking for people to lynch
SIDHARTH
BHATIA
A
mar Akbar Anthony, that great
entertainer from the 1970s, has
completed 40 years. The movie is a
staple on television and despite its
period feel, has travelled well over the dec-
ades a few minutes spent watching it are
sure to produce a laugh or two.
There is nostalgia for the songs but we
also remember a different India. In a very
unique way, Amar Akbar Anthony, more
than many other films of the time, is a cul-
tural marker of that India an India with-
out terrorism and when no gangs roamed
about looking for people to lynch.
IndiahadjustcomeoutofanEmergency,
but even at the height of state power and
coercion, no one dictated what one could
eat. Indeed, the central message of AAA is
the very Indian quality of tolerance, for our
fellow citizens whichever religion or faith
they may belong to. In his own style of
inspired silliness, and without preaching to
anybody, Manmohan Desai wrote an ode to
secularism. The phrase Amar Akbar
Anthony is now shorthand for unity in
diversity, even in these fraught times.
The story of AAA is fairly well known.
Three brothers are left behind in a park by
their father and when he doesnt return,
are adopted by three families of different
faiths. One grows up to be a cop, another a
singer and the third the owner of a country
liquorbar.Theirmotherhasgoneblindand
their father, originally a driver, is now a
successful smuggler. Throughout the film,
they come face to face with the others with-
out knowing their relationship. The audi-
ence is in on the secret and enjoys the dia-
logues, which are full of innuendo and ref-
erences to bhais and baaps, but it is not till
the end that the characters realise they are
one big family.
Early on in the story, the three brothers
donate blood which flows directly into their
MORE OFTEN THAN NOT, THE
MUSLIM CHARACTER IN HINDI
FILMS TODAY IS ASSOCIATED
WITH TERRORISM SOMETIMES
DIRECTLY (SARFAROSH),
SOMETIMES SLYLY (A
WEDNESDAY).
steinhadsaid,Imaginationisthepreviewof
lifes coming attractions. He had also said
thathewaslikeanartisttodrawfreelyupon
his imagination. He was convinced that
imagination was more important than
knowledge because knowledge is limited,
imagination encircles the world.
We imagine many things, and for those
brief moments, the things happening in our
lives are as real as seeing a movie. Even
PabloPicassohadsaid:Everythingyoucan
imagineisreal.Therefore,weshouldnotbe
satisfied in living within the limitations of
TUESDAY, J UNE 27, 2 017
TheEmergencyishateful,ishatedandwill
always be.
And yet, today, 42 years on, may one har-
bour a contrarian view about it? We are not
under an Emergency, and so why not?
ThenationalEmergencyof1975-1977isthe
poison that tells us that its antidote exists,
right in our grasp courage. And thatknowl-
edge is a gift that it has given us.
Thanks tothe misuseofthe Constitutions
emergency powers, the country was awak-
ened to removing those powers by the 44th
Amendment Act. Recent experience has
shown,thebillssageobjectsexplained,that
thefundamentalrights,includingthoseoflife
andliberty, granted to citizens by the Consti-
tution are capable of being taken away by a
transientmajority.Itis,therefore,necessary
to provide adequate safeguards against the
recurrenceofsuchacontingencyinthefuture
and to ensure to the people themselves an
effectivevoiceindeterminingtheformofgov-
ernment under which they are to live.
In the future, it says far-sightedly.
That future where the people them-
selvesmustguardtheircivilanddemocratic
rightsfrombeing takenawayby a transient
majority, in a democratic republic is the
present moment. It is now.
AstateofEmergencyis,atitscore,astateof
fear. That state does not have to be pro-
claimed. It can just come to be.
Gopalkrishna Gandhi is distinguished professor of
history and politics, Ashoka University
The views expressed by the author are personal
mothers bloodstream. Much later, she
recovers her eyesight when two sparks of
light travel from lamps (diyas) near an idol
of Saibaba of Shirdi. Not to be missed is the
remarkable coincidence of a qawwali being
sung to Saibaba by her son Akbar.
There were murmurs of protests at the
time about a Muslim singing to an idol, but
nothing came of it. Similarly, some Cathol-
ics had objected to the portrayal of
Anthony, played by Amitabh Bachchan, as
a bootlegger and drinker but after the inter-
vention of some priests, that controversy
too died down. The drunk Christian was a
familiar stereotype of films of the time.
Muslims were usually shown as kind-
hearted Rahim chachas or dissolute and
romantic nawabs and their beloveds who
exclaimed hai Allah after every other line.
But they were all uniformly gentle.
The genre of Muslim socials or Islami-
cate themes, as academics would have it
were hugely popular in the 1950s and 60s.
In the 1970s, we had the loyal Sher Khan in
Zanjeer and the blind Imaam Saheb in Sho-
lay. The benign Muslim remained with us
till much later, after which he gradually
faded into the sunset.
In the post-1990s phase, filmmakers dis-
covered newer audiences, in India and
among the large Indian diaspora all over
the world. These audiences had a different
view of India, which was driven by nostal-
gia not for Indian diversity but for Indian
tradition in the garb of modernity.
The 90s saw monumental economic and
social changes the rath yatra, the fall of
the Babri Masjid and the horrific riots in
Bombay and elsewhere created new narra-
tives; the Muslimwas now no longer seen in
the same light as earlier. More often than
not, the Muslim character in Hindi films
today is associated with terrorism some-
times directly (Sarfarosh), sometimes slyly
(A Wednesday).
Equally, there are Muslim victims of ter-
rorism and brave officials who fight it. The
modern Muslim or indeed a normal Mus-
lim is missing in action.
There is much to criticise in the hokey
stereotyping of the past and Amar Akbar
Anthony is as hokey as they come but
one cant fault the messaging.
Every now and then one reads of a possi-
ble remake of Amar Akbar Anthony. Given
the record of remakes, one shudders at
what the outcome will be, but perhaps, just
to evoke a different India and its core val-
ues, a reprise of Amar Akbar Anthony may
not be such a bad idea. It will at the very
least tell the young Indians that India was
not always like it is today.
Sidharth Bhatia is a journalist and commentator
and founder editor of the www.thewire.in
The views expressed are personal
our means. We should use our faculty of
imaginationtolivethewaywewant.Maybe,
one day, your dreams that began with an
imagination are realised.
After school education, I had nothing but
wildimaginethatonedayIwillendupbeing
awriter.Readingbooksandmeetingauthors
gave wings to my imagination. That gave
wayto hopes, and hopes turned intoreality.
(Inner Voice comprises contributions from our read
ers. The views expressed are personal)
n innervoice@hindustantimes.com
 https://telegram.me/TheHindu_Zone https://telegram.me/PDF4EXAMS

THE TRIBUNE
08 OPINION CHANDIGARH | TUESDAY | 27 JUNE 2017

THE TRIBUNE Urban transport in doldrums

established in 1881 A holistic approach needs to be taken
Sushma Ramachandran like bicycle or auto rickshaws fill the

Media under pressure gap in many areas but these are not

T
HE resignation of Uber Ceo devoid of hazards.
Travis Kalanick has sent rip- In the planning of smart cities,
Wrong forums, questionable tactics ples globally as the billion- Urban Development Minister Venka-
dollar unicorn has a presence iah Naidu thus needs to take up this

T
HINGS are certainly going downhill when the media itself in over 80 countries. The worries now
becomes the news. The latest instance comes from Karnataka. being expressed are that the aggres-
Throw aside the linguistic kid gloves and what emerges is that sive growth plans of founder-owner
the Karnataka Assembly Speaker sentenced two journalists to prison Kalanick may not be matched by
after adjudging that their articles against two fellow MLAs were scur- those now coming to steer the compa-
rilous. A few weeks ago, an economic intelligence agency had raided a ny. This is the normal pattern for
TV channel consistently critical of the Central Government on an accu- start-ups as founders have more pas-
sation that hangs by a thin thread and did not merit the disproportion- sion for growth while those who come
al response. In Indias Maoist zone, journalists are sandwiched between later seek to stabilise the enterprise
security forces and insurgents. But none of it has happened overnight. and slow down unbridled expansion.
In India, muzzling of the media has been haphazard and fitful. The Uber, of course, is no ordinary start-
impact was largely borne by people without a banner and connec- up. Described as the most valuable
company in the world, its valuation is
tions. The censoring has not been limited to news but has extended
pegged at 69 billion dollars and from
to inconvenient documentaries and books. Otherwise those lament-
being the poster boy of unicorns, or
ing India being downgraded in the World Press Freedom Index may ventures with a billion-dollar valuation,
examine why was the country at a low position of 133 during the sup- it is now being termed a "decacorn".
posedly liberal regimes. In India where Uber has not only
If the fall by three slots reflects the animus generated by the Modi been an aggressive player in many
governments reordering of social priorities, the sentencing by the major cities, it spawned a worthy com-
Karnataka Assembly Speaker opens up an entirely new but avoidable petitor in the homegrown Ola compa-
chapter in the relationship between two pillars of the state. The right ny. Taxiforsure, another early entrant,
to try and sentence journalists for defamation vests entirely with courts was swallowed up by Ola which took
after a fair trial. Implied in this function is the assumption that an an early lead over the US-based giant.
impartial and trained judge hears both sides and adjudicates in accor- Now the two companies are battling
dance with the law. The MLAs were neither disinterested parties nor for the Indian market which is esti-
mated to be the third biggest after
were they trained officers of the court. What the Karnataka duo did was
China and North America. And it may
bad journalism. As has been the case with lynching - instance justice
be worth 7 billion dollars by 2020,
being meted out on the streets - the remedy lay elsewhere and not in according to projections made by the
taking action under privileges that are not even codified. If the Assem- Softbank group.
bly does not revoke its sentencing, it would be guilty of having con- The entry of Ola in 2010 and Uber in
tributed to the shrinking of critical faculties in public space. It would 2013 has led to a revolution in urban
also lend itself to the notion that India reserves a heavy hand for those transport in this country. From being
inclined to question the policies and politics of the government. confined to either overcrowded buses
or overpriced taxis, the urban traveller
now has access to a relatively inexpen-
sive mode of travel. Only Mumbai till
STUCK: Personalised transport vehicles have been given greater importance in
development priorities.
selves as well as family and friends,
ensures these cabs are the mode of
choice for those who can afford them.
The cab-sharing facility has also
brought down the cost to extremely
affordable levels. The comfort level is
bound to be enhanced by the ousting
of Kalanick and those close to him.
Their sexist and misogynist com-
ments as well as the attitude towards
Apart from improving the bus system which is the basic mass
transport need of most towns and cities, it is equally critical to find
space for those who walk and cycle.
.
been to manufacture more comfort-
population could be living in cities by
strikes could affect business.
The cab aggregators, however, are
just one element of the urban trans-
port scenario which continues to
remain dismal. Few major cities have
efficient mass transport systems.
Mumbai, Kolkata and Chennai have
suburban rail systems and Delhi has
its metro. But these are all becoming
more and more crowded as migration
issue on a priority basis. Personalised
transport vehicles seem to have been
given greater importance in the
development process, whether these
are two-wheelers or passenger cars.
Ratan Tata made the Nano purported-
ly for families that were riding on
motorbikes. A better idea would have
able and fuel-efficient buses so that
many families could have travelled
safely to their destinations. Not only
that, dedicated bus lanes are impera-
tive to enable the mass transport sys-
tems to move faster, as is being done
in cities all over the world.
The urgency of finding urban trans-
port solutions is highlighted by pro-
jections that nearly 50 per cent of the
the year 2050. Apart from improving
bus systems which are the basic mass
transport need of most towns and
cities, it is equally critical to find
space for those who are walking and
cycling. Road construction nowadays
makes no space for the bulk of the
people who are pedestrians or
cyclists. Ensuring adequate curb
space for the walker and creating spe-
cial biking lanes must be part of the
concept of the smart cities being
devised for the future.
A holistic approach to the entire
issue of urban transport needs to be
taken right now as this is time when
the government is looking at the
entire concept of urbanisation in tan-

Towards 'smart cities' now had cabs available at affordable

prices for the middle classes.
The other plus point for these cabs
Poor governance holds back progress is the ease of travel for women.
Despite the horrific incident of rape
the rape victim in this country were
major factors in the push for their exit
by Uber investors.
The issue of higher compensation to
the drivers remains a point of strain
from rural areas continues to make
these metropolitan centres bigger by
the day. Metros are rolling out in oth-
er cities too but their reach so far is
limited as compared to the Capital
dem with technological develop-
ments. Mass transport needs of the
people need to be integrated into the
smart cities concept. These will have
to include the basic needs of the

T
HIRTY more cities have been added to the list of smart cities, by an Uber car driver and despite sev- between the cab aggregators and their which has an extensive network. pedestrians and cyclists along with
taking the number to 90. The fresh list includes Shimla, Jam- eral instances of molestation by Ola partners, but this will have to be The basic bus networks, on the oth- bus utilities that are far cheaper to set
mu, Srinagar and Dehradun from this region. Inclusion in the cab drivers, the cab aggregators are ironed out by the companies con- er hand, have been grossly neglected up than the metros. The bleak state of
list does not in itself mean an automatic grant of funds, improvement still considered the safest mode of cerned. The cab drivers were clearly in most cities. Bigger cities like Delhi, city transport systems will have to be
in living conditions or a better delivery of services. Barring a handful travel for women in urban areas. Uber being compensated by both compa- Mumbai and Calcutta have large bus rectified, however, not just in the
of success stories from cities like Pune, Surat and Jaipur, failure or and Ola are reported to have stepped nies at a much higher level earlier in a systems even though these are not selected smart cities but in all towns
tardy progress is the norm. Instead of releasing funds, politicians add up their vigilance in hiring drivers as bid to grab a higher market share. able to keep pace with a growing throughout the country. One can only
a result of these incidents. Bonus payments are now tapering off, urban population. The second-tier hope that Mr. Naidu takes the oppor-
to the burden of municipalities by regularising illegal colonies.
Besides, the fact that there is a GPS but the aggregators will need to cities and smaller towns, on the other tunity now to put things in motion
The Centre has floated a Rs 50,000-crore Smart Cities Mission to
facility in each cab which can be ensure that their partner drivers do hand, are grappling with both paucity rapidly to resolve the chaos of urban
develop 100 smart cities in five years. Under the mission, the rest of the accessed by women customers them- not remain dissatisfied as repeated and quality of buses. Other vehicles transport today.
money has to come from the private sector and the states. It requires
the levy of user charges and empowerment of municipalities. Private
sector participation can happen only if the return on capital invested
is adequate. State governments are reluctant to devolve more powers
and funds to the local bodies which stand debilitated after the abolition
of octroi. Central financial support under the JNNURM (Jawaharlal
Nehru National Urban Renewal Mission-2005-14) was contingent on
In 5 mins, Governor's ADC
both the state government and the urban local bodies committing to Col Dilbag Dabas (Retd) them advised. Only the Brigade Com- took 10-15 minutes each in the Gover- is always a next time.' Later, we had
specific reforms in urban planning, finance and management. Amrut mander told me to listen to my heart nor's chamber. I was the seventh. Gov- tea with the Governor, and went our
(Atal Mission for Rejuvenation and Urban Transformation), a successor
of the JNNURM, has also made funding conditional on reforms.
Besides the dithering on reforms, poor governance and politics of
populism have come in the way of cities turning smart. Punjab is a
I T was October 1980, I was a young
artillery Captain posted in Ladakh.
After my tenure in the high-alti-
tude area, I was posted to Nasik. After
about a week, a signal came from the
and take a decision. I knew where my
heart was. I sounded my wife, who
told me to believe in myself and go.
'Generally smart, handsome young
officers are selected as ADC'. She shot
ernor KC Abraham - an old Gandhian
in his mid-eighties, wearing a spotless
white kurta, white mundu (Kerala
dhoti) and sporting a white angavas-
tram - asked: 'Captain Dabas, in the
separate ways. Within four days, I was
back to Ladakh.
There was no word from the AHQ
for almost two weeks. I prepared
myself for Nasik. While being dined
case in point. Leave aside giving more funds to the local bodies or con- Army Headquarters (AHQ), directing back, 'If you hadn't been handsome, I past nine years you have dealt with out, a signal was received from the
tributing a matching grant to avail Central funds, the previous Akali me to report in ceremonial attire to wouldn't have married you! Just go.' and led disciplined soldiers. Here, in AHQ - 'Capt DS Dabas, ADC desig-
Dal-BJP government diverted funds meant for developing Amritsar, Raj Bhavan, Hyderabad, for an inter- While serving in a high-altitude Raj Bhavan, and also outside, the nate to the Governor of Andhra
Jalandhar and Ludhiana as "smart cities" to finance its populist schemes view for the post of ADC to the Gover- area, we are not expected to be in our civilians you deal with may not have Pradesh to report to Raj Bhavan
ahead of the elections. As a BJP minister at the Centre, Venkaiah Naidu, nor. I was neither on the panel for ADC ceremonial attire. My Sam Browne, the same degree of honesty and disci- Hyderabad by 21 Nov 1980 FN'.
has pointed out, the Badal government did not hire experts/profession- deputation nor had I volunteered for peak cap and medals were in my vil- pline. How will you handle it?' 'Sir, as During handing/taking over, the
als for the local bodies as part of the Smart Cities Mission even though it, and hence was not obliged to go for lage and there was not enough time to long as I remain honest and disci- outgoing ADC quipped: 'Just five
the Centre was to provide money for that. Whether things would change the interview. But I decided to seek collect them and reach Hyderabad in plined to my job, I foresee no problem minutes with the old man and you are
with a change in the regime remains to be seen. advice from my seniors. time. A friend posted in an artillery in performing my administrative and here! Any Kerala connection, or did
'You will remain cut-off from the regiment based at Secunderabad, ceremonial duties.' The Governor you pull strings?' 'I have no Kerala
defence fraternity for long', 'you will with matching physique, came to smiled, the conversation was over. connection, I am a Jat from Rohtak,
Thought for the Day forget gunnery', 'there is too much help. I reached Secunderabad, bor- My interview took about five min- and yes I pulled, but not strings, I
protocol there', 'after that high-flying rowed his attire, dressed up and utes. The candidates gave me a sym- pulled my confidence.'
The city is not a concrete jungle, it is a human zoo. lifestyle, you will find it difficult to reported to Raj Bhavan. pathetic look. The outgoing ADC even He shook my hand and wished me
Desmond Morris adjust to regimental life'.most of The interview started. The first six consoled me: 'Cheer up, Dabas, there luck.

letters to the editor

Population control
The June 22 edition had a report
Poverty drives youth to kill self, 4 sib-
lings on the front page and Indias
population to surpass Chinas by
2024, says UN on the back page. Both
are so closely connected. There can be
nothing more tragic than reading
about parents losing five children,
but having seven children does pose
difficult questions. Where is the plan-
ning with respect to population con-
trol and what is the government
doing about it? There are vast levels
of unemployment in the country, but
does no political party have the guts
to come out with a critical agenda con-
cerning population control?
LT GEN JS DHILLON (RETD), VIA EMAIL
Latent satire
A sedition brief by Harish Khare
(June 23) was a wonderful treatise.
Jingoism in the country has infest-
ed into the domain of sports viewer-
ship for quite some time now,
thanks to the channel walas. It
was equally bemusing that some
could not decipher the latent satire
in the article.
MANJITINDER SINGH JOHAL, LUDHIANA
Please behave yourself reeling under an economic crisis
This is in reference to the editorial and on the other so much of taxpay-
Please behave (June 24). The ers money went down the drain as
unprecedented ruckus in the Pun- a full session was lost without much
jab Assembly speaks volumes of the discussion on crucial legislative
degeneration of Indian politics. The matters. Shouldnt there be a law
unsavoury disruption of the House preventing lawmakers from troop-
proceedings and the repressive ing down to the well of the House?
eviction of lawmakers are sure to How is that considered an accept-
undermine our democratic institu- able way to voice opposition?
tions. The ugly situation could have VP BANSAL, PATIALA
been avoided had the Chief Minis-
ter and the Speaker behaved in a
more responsible manner. Both the Dont arouse sentiments
Opposition and the government Apropos Summon Capt, AAP MLAs
should shun political acrimony and tell Akal Takht (June 25), it is disap-
conduct themselves with parlia- pointing that the AAP leadership has
mentary restraint and decorum. sought the intervention of the Akal
Else, it will amount to the betrayal Takht. AAP had strongly condemned
of public trust. the Panthic agenda of the Shiromani
DS KANG, HOSHIARPUR Akali Dal during the elections. Turban
is not just a religious symbol, but a
cultural legacy. What happened in the
Expect better from MLAs Punjab Assembly is condemnable but
Please behave (June 24) aptly cannot be used to arouse Sikh senti-
laments the shameful state of ments to disturb peace in the state.
affairs witnessed in the Punjab Either the Speaker should have
Assembly. It appears that the Oppo- adjourned the Assembly or AAP legis-
sition parties, in a bid to regain lost lators should have walked out. Both
political ground, are bent upon failed in maintaining the sanctity of
obstructing the business of the the House.
House. On one hand the state is RS BRAR, LUDHIANA
Budget mum on salaries
The budget presented by the Capt
Amarinder Singh government is
silent on the salaries of newly recruit-
ed employees and implementation of
the Sixth Pay Commission. Only a
new recruit who is drawing a fraction
of the salary than his counterparts for
doing the same amount of work can
understand the agony. The CM should
remain true to his election promise.
JATIN MITTAL, BUDHLADA
Tough posers
The irony is hard to miss. The front
page of the June 25 edition had a
report on a new international air-
port being given the go-ahead in
Greater Noida at a cost of Rs 20,000
crore, and another on the Maha-
rashtra government waiving off Rs
34,000-crore farm loan. This implies
that an airport could have been
built for free had Maharashtra not
gone for this waiver? Similarly,
many hospitals and educational
institutions in rural areas could
have been upgraded with this mon-
ey. Is it not the solemn duty of the
borrower to balance his needs and
paying capacity while taking the
loan? How come every farmer in
this country is so poor that he cant
pay back his loan? Is en masse
waiver any solution?
Till about a few years ago, before
the era of minimum support price
(MSP), free electricity, old age pen-
sion and Atta-Dal schemes, etc, our
elders had been feeding the nation
without any loan waivers and sui-
cides. At the end of the day, it will be
the politicians and not farmers who
will benefit from this vicious cycle of
en masse farm loan waivers.
DALBIR SINGH DHALIWAL, MOHALI
Take killers to task
Those who killed 16-year-old
Junaid of Khandawali village in
Faridabad district must be given
exemplary punishment. It is quite
shocking how Junaid and three of
his friends were brutally attacked
by 15-20 youths apparently over
seat sharing in a Mathura-bound
train, when the real cause behind
the murderous assault was rumours
of beef eating by the four. This kind
of mob frenzy along communal
lines can prove to be extremely dan-
gerous for social harmony.
Can we allow anti-social elements
to take the law into their hands and
then go scot-free in the name of reli-
gion? It was heart-rending to see
Junaids wailing mother pointing
out how irrational hatred had
snatched her adolescent son away
from her.
RAJ BAHADUR YADAV, FATEHABAD
MoD ways must change
Reading the well-articulated article
Fighting a flawed Army by Lt Gen
OP Kaushik (retd), it is evident that
bureaucrats are deciding and domi-
nating the promotion policy of senior
Army officers. How can these people,
who have no exposure to the Army
way of life, decide the future of senior
officers? Most such bureaucrats have
20-25 years of service whereas the
Generals have active service spanning
32-35 years.
The Defence Minister also has no
exposure to the Army way of working
and goes perforce, it appears, by what-
ever the officers recommend.
Let us have someone at the top of
the defence department who has some
exposure to the Armys ways.
COL JASPAL SINGH (RETD), LUDHIANA

Letters to the Editor, typed in double space, should not exceed the 200-word limit. These should be cogently written and can be sent by e-mail to: Letters@tribuneindia.com
 https://telegram.me/TheHindu_Zone
THE TRIBUNE
CHANDIGARH | TUESDAY | 27 JUNE 2017
Normalising the
killing of Muslims
Apoorvanand
T
There is a HIS is no country for Mus-
lims. Or, now India has
programming of turned into a country
where they have to be care-
the Hindu ful: about the way they look, the
subconscious bag in which they carry their
necessities, the aroma of their food
which seeks to which stinks in the nostrils of their
Hindu neighbours, they have to be
rationalise each mindful of how their names sound.
killing like this: Are they carrying cameras? Do
their identity cards carry Urdu
that we do not inscription? They can be spies. Do
their men look handsome or their
kill them for women beautiful? Then they must
being Muslims, be out to lure our girls or trap our
boys. Are they illiterate? Then they
we are forced to would be fundamentalist. Are they
well educated and technologically
kill because of savvy? Then they must be trained
outraged, hurt, in the modern terror techniques.
Are they poor and filthy, making
violated this country unclean? There are
sensibilities. The ten thousand reasons to suspect
and hate a Muslim and feel scared
killer seeks to of their presence; which then
becomes a legitimate reason to pre-
shift the emptively strike at them.
criminality to It can only be metaphoric that on
a train that begins its journey from
the victim. the Capital of India, three brothers,
who are Muslims and that is not a
co-incidence, returning home with
gifts for their biggest festival Eid
are lynched by a mob for being what
they are: Muslims. Media reports
that the killing happened due to
some misunderstanding, that the
mob thought that they were carry-
ing beef with them. This under-
standing results from a program-
ming of the Hindu subconscious
which seeks to rationalise each
killing like this: that we do not kill
them for their being Muslims, we
are forced to kill because of out-
raged, hurt, violated sensibilities.
We are violated when we feel that
they are insufficiently nationalist,
that they do not show deference to
the motherland the way we want
them to, that they steal our women,
that they eat just to mock us, they
build their prayer houses to show
their affluence, that they celebrate
the victory of Pakistan.
The killer always seeks to shift its
criminality to the victim. It was he
who was responsible for the provo-
cation. He, the killed, the mur-
dered, is responsible, for how can
an innately non-violent species as
Hindus commit violence!
There are several excuses to kill a
Muslim: while reading a book of his-
tory my blood starts boiling at what
the books tells me about what
Aurangzeb did to Hindus, or at the
treatment of Padmini by Allauddin
Khilji, even if it is fiction, and I assault
the first Muslim who crosses my
path. Some historical injustice to my
ancestors for which I seek revenge,
and since I cannot travel back in time,
I can only settle my score with the
Muslim who lives in my times, who in
a way is my neighbour.
Muslims are asked to under-
stand. Understand that this is all
of their making. That they have
called for it. Also, that these
killings are not for real. They are
only symbolic acts. So, it is not a
on this day... 100 years ago
Lahore,wednesday, june 27, 1917
War Work for Women in India.
WE welcome the news that the women's branch of the War
and Relief Fund, Bombay, is opening "an employment
bureau for women"-meaning British women. The object of
the bureau is to prevent any waste of energy and good will
which women held up in India have at their disposal. The
report says: "A certain number of women have degrees or
training and experience of various kinds, and these are eas-
iest to place, but the bureau attempts to meet the needs of
all women willing to do emergency war work. The bureau
made known its existence to all banks, big firms, colleges
and schools less than a month ago and set a notice to clubs,
hotels and all places where women were likely to see them.
The response from both sides has been unexpectedly good."
The success of this experiment is beneficial not merely to
the women concerned but to the system of work in banks,
and in industrial and commercial establishments.
Imperial Trade and the Indian market.
THE Times of India deserves to be congratulated on the issue
of a special supplement to its daily edition of the 22nd
instant. It is devoted to a discussion of the Imperial trade
after the war and of the scope that India offers for its devel-
opment. It follows in some respects the lines of the trade sup-
plement issued by the great London journal; and this may or
may not also be its permanent feature as in the case of its
English contemporary. But its practical utility is undoubted
even as a casual issue and is widely appreciated by all friends
of India's economic advancement.
A member of the Muslim community takes a selfie after offering namaz on Eid
at Red Road in Kolkata on Monday. PTI
real man, a real woman, a real
child, a real husband, a real broth-
er, a real wife or a real daughter
who is killed, it is an abstraction
called a Muslim who has come in
the line of the eruption of the long-
suppressed Hindu feeling. It is the
collateral effect of the empower-
ment of the Hindus in 2014.
The Muslims are told not to make
much of these sporadic incidents.
Soft hearted Hindus are asked not
to feel bad. This is what a gentle-
man had to say after reading this
report: Ok, first of all Hindus
needs to stop apologising for such
incidents, such things happen in a
big country like ours and also keep
in mind Muslim countries are much
worse. Secondly, Muslims should
understand and adjust to the reali-
ties of living in India. Jai Hind.
So, bad, horrible Muslim countries
become a defence for what Hindus
do here to their compatriots.
Jai Hind! is what Muslims are
asked to chant: to save Hindus
from an embarrassment of being
seen as killers or apologists of
killers. Also to show that they bear
no ill will towards Hindus after
such acts. Further, to declare to the
world that there was a slight misun-
derstanding: Hindus, in fact, carry
no ill feelings towards Muslims.
The police interestingly tries to
secularise the event: no, it had
nothing to do with beef, it was only
a fight over sharing of seats. The
Muslim brothers were stubborn
enough to refuse vacating the seat
they were occupying. This again is
a metaphor: how can a Muslim be
so audacious as to remain seated
while a Hindu is standing before
him? That too after 2014?
After all, were not we generous
enough to allow them to live amidst
us? How can they forget that and
start taking this as an entitlement?
This is what the village elders and
youth of Atali told us when we were
talking to them about the burning
and looting of the Muslim houses.
They were angry with the ungrate-
ful Muslims that they had won
from the court their right to build a
mosque on their land. Hindus
thought that a mosque in a village
can be a source of conflict, a place
for meeting of outsider Muslims
and god knows what kind of con-
spiracies or a den for terrorists.
quick crossword
ACROSS 23
1 Make sore by rubbing (5) 24
8 Be lenient with (2,4,2) 25
9 Greater in scope (5) 26
10 A decline in status (8) 27
11 Hidden store (5)
12 To stitch (3) DOWN
16 Postpone indefinitely (6) 2 Cause of worry (8)
17 Introduced from 3 Firm starting position (8)
abroad (6) 4 Sour-tempered (6)
18 Flow back (3) 5 Wary (5)
OPED
Landless labour fighting
for a bare minimum
Commercialisation of agriculture has brought even common land
under cultivation, depriving landless labourers of land for grazing or
firewood. Recent agitations point to their heightened desperation.
Sukhpal Singh and
Shruti Bhogal
A
GITATIONS by farm-
ers for debt waiver in
many states have
drawn attention to the ailing
agricultural sector and the
economic crisis being faced
by farmers across the country.
There is no doubt to the criti-
cality of these issues being
addressed. However, there
exists a section of people with-
out public voice landless
labourers who often remain
oppressed, succumbing to
deprivation. The state of Pun-
jab, hailed for food grain pro-
duction, is tainted by the
Muslims should pray at home or go socio-economic woes of its
outside the village. rural labourers.
Atali incidentally is a village The recent agitations by rural
adjacent to Ballabhgarh where
this lynching is said to have taken
landless labourers that spread
across villages of Punjab to
place on the moving train. The name a few, Jhaloor, Baupur
attack on Muslims in Atali had tak- and Gowara point towards
en place three years back. Every- the heightened desperation of
thing is normal now, most of the
Muslims have moved out, those
this section. In 2008, landless
labour in over two dozen vil-
who live there have accepted sub- lages of Mansa, Sangrur and
jugation, which is called adjust- Bathinda undertook mass agi-
ment in civilised parlance. tations for homestead land that
The Indian police is helpless as turned violent. Despite assur-
usual: it is honest enough to admit ances from the previous state
that it saw and his brothers being government, these labourers
attacked but the sheer size of the continue to be deprived of their
crowd was a deterrent for it to act. basic rights of living. Eight
What about the co-passengers? years later, the struggle of the
Are we to believe that it was an landless labour persists, fight-
issue between the assailants and ing for their land rights.
the victims? That it was a clash in Landless labour is a vital fac-
which no other passenger saw his tor of agricultural production;
or her role? Or, they got scared their productivity and earnings
because one of the attackers had a being an important determi-
knife with him? nant of the level of economic
Still Hindus claim superiority prosperity. Despite their indis-
above all other religions and pensability, they continue to
nations: they hate, abhor others, be suffer silently, leading a life of
they Muslims or Christians or poverty and pauperisation.
Africans, attack and kill them when Like farmers, they too are
they feel safe enough to do so, and indebted especially to land-
what better way than to form the lords or other non-institutional
anonymity of a crowd to do this? sources. But their ongoing fight
We are not unique in harbouring is not for monetary support. It
hatred for others. But why we do is for physical, mental and
not have examples like the Ameri- financial security, in the form of
cans of Portland who came forward land for farming and shelter, as
to defend the dignity of Muslim per their right under the Land
women travelling with them when Consolidation Act, 1961.
they were being abused? Two of Commercialisation of agri-
the interveners were killed. And culture has brought even the
yet we claim that we are brave, that common land (shamlat) and
we are compassionate. other fallow land under cultiva-
One needs to realise that such tion. As a result, the landless
killings are different from killing labourers are deprived of land
by terror outfits. These are acts by for grazing their animals,
common people like us, who have obtaining firewood and even
not been trained to kill. These acts for natures call. They have
are imminently preventable or can been forced to sell off their live-
be stopped midway. If such stock, which was a major sup-
killings happen, it is only because port. Moreover, modernisation
we allow them on our behalf. We of the agricultural sector
relish them without soiling our through capital intensive tech-
hands. We want them. nologies has reduced employ-
Muslims would be asked to ment elasticity, making labour
account for their deeds on the day of of this sector redundant.
Qayamat. Hindus have no such fear. A survey by the Department
Is this the cause for increasing of Economics and Sociology of
criminalisation of the Hindu souls? Punjab Agricultural University,
Ludhiana, found that over 90
The writer is a Professor of per cent of paddy and 70 per
Hindi in Delhi University. cent of wheat are harvested
su do ku
YESTERDAYS HARD
SOLUTION
Across 8 1
1 Carbon copy, 6 Stow,
10 Shine, 11 Harbinger,
12 Features, 13 Notes,
15 Unaided, 17
Lumbago, 19 Consent,
5 8
21 Contact, 22 Rival, 24
Unnerved, 27 6 4 5
Extensive, 28 Louse, 29
Salt, 30 Implicitly.
Down
1 Cast, 2 Raise Cain, 6 9
3 Overt, 4 Cohered, 5
Perusal, 7 Tight, 8
Wordsworth, 9
3 5
Cinnamon, 14 Cut
corners, 16 Dwelling, 7 4
18 As a result, 20
Tourism, 21 Conceal,
23 Vital, 25 Relic, 26
4 2
Rely.
Yesterdays solution
Gardening tool (5) 6 English Romantic poet (5)
Impetuous (8) 7 Stupid (5) 6 3 1 4 5 7 2 9
7 5 9 8 3 2 1 4
Light purple (5) 12 Diocese (3)
Means of saving time (5,3) 13 Spiders trap (3) 4 8 2 9 1 6 3 5
Answer (5) 14 Consist of (8) 1 4 7 2 9 3 6 8
15 Unexpected financial
8 2 5 1 6 4 7 3
gain (8) 3 9 6 5 7 8 4 2
19 Nonsense (6)
9 1 4 6 2 5 8 7
20 Transitory stage (5)
5 7 8 3 4 1 9 6
21 Christmas song (5)
22 A wind instrument (5) 2 6 3 7 8 9 5 1
https://telegram.me/PDF4EXAMS
Capital intensive farm
technologies have reduced
employment opportunities for
agricultural labour. AFP
with combine harvesters. This
points to the shrinking of
labour employment. Out of a
total workforce of 99 lakh in
Punjab, 35.6 per cent are
engaged in agricultural sector,
either as cultivators (20 lakh) or
agricultural labourers (15 lakh).
Our field survey, Status of
Agricultural Labour in Punjab
(2017), reveals that labourers
find work for merely two
months in a year in the agricul-
tural sector. Moreover, alterna-
tive employment opportunities
in rural areas are unpromising.
Punjabs economy has been
unable to exhibit developmen-
tal transition of human
resource, in which the surplus
labour from agricultural sector
progresses or is pulled into the
industrial sector and further on
into the service sector. As a
result, much of the labour
movement from agricultural
sector to industrial is of push
type due to non-availability of
work. The report of the Punjab
State Farmers Commission,
Status of Farmers Who Left
Farming (2008), reveals that
about 2 lakh small farmers left
farming during 1991-2001. A
large number ended up joining
the pool of oppressed and
deprived labour.
Considering that agriculture
sector is a livelihood generator
for the majority of our popula-
tion, the problem of unem-
ployment would continue to
grow, unless there is a growing
industrial or service sector to
absorb the rural spills. Unfor-
tunately, the situation of
labourers in the industrial sec-
tor of Punjab is no better. This
is particularly true in the post-
liberalised era, as the industri-
al sector too is struggling due
to viability issues. About
19,000 industrial units shut
down in Punjab between 2007
and 2015. As a ripple effect, the
labourers have been left job-
less and forced to take up mea-
gre work for survival. Resul-
tantly, the income and
consumption of this section is
minimal, leading to further
impoverishment.
In Punjab, of the total 6,926
9 SUNRISE:
1 4
4 7
7 Ludhiana
8 7
1 Sirsa
calendar
June 27, 2017, Tuesday
8 Vikrami Samvat 2074
6
Shaka Samvat 1939
Aashadh Shaka 6
7
Aashadh Parvishte 13
5 Hijari 1438
9 Shukla Paksha Tithi 4,
1 up to 8.01 pm
Harsh Yog up to 11.23 am
3 Aashle Nakshatra up to 7.58 pm
Moon enters Leo sign
2 Mussoorie
at 7.58 pm.
4 TEMPERATURE IN OC
09
suicide cases during 2000-2010,
43 per cent were of agricultural
labourers. Of these, about 59
per cent were an outcome of
heavy debt burden. The pro-
portion of suicide victims
among labourers is as high as
that among farmers (18 sui-
cides/lakh workers). However,
the women of this section are
more severely affected as the
proportion of labour women
among suicide victims is dou-
ble (17%) that of farm women
(8%). Recently, the state gov-
ernment announced debt waiv-
er of small farmers; however,
the labourers who continue to
be under severe economic
stress remained unaddressed.
The uplift of this section
requires a comprehensive
approach. To begin with, their
legal entitlements need to be
fulfilled. In the villages of Bhat-
tiwal Kalan, Mander Kalan,
Jhaneri and Kular Khurd in
Sangrur, and Bina Heri and
Surajpur in Patiala, landless
labourers have set an example
by leasing-in one-third of the
common property land for joint
farming. This model has been
successfully working since
2008 in Benra village, and since
2014 in Balad Kalan, Ghara-
chon, Jhaneri and Batriana vil-
lages of Sangrur. Replicating it
across the state can assure the
much needed security.
However, a permanent solu-
tion lies in implementation of
measures like rural industrial-
isation, agro-processing and
development of rural infra-
structure. This will have trick-
le-down effects. Ensuring
effectiveness and enhance-
ment of minimum wages and
allotting one-third of the com-
mon property land as plots of
150 yards to landless labour
families for house construction
is vital for their sustenance.
The Land Ceiling Act, 1972,
stipulates maximum permissi-
ble irrigated land owning of 7
hectares. There is a need to dis-
tribute/lease-out surplus land,
on nominal rates, among land-
less labourers and resource-
poor cultivators. In addition,
like small farmers, this section
also needs debt waiver, particu-
larly from non-institutional
debt, for they too are victims of
prolonged indebtedness.
The destitution of labour
class exemplifies an apathetic
society. They continue to lan-
guish in a perpetual state of
weakness and vulnerability.
Today, when a major focus of
public discourse is on Sab ka
Vikas (development of all),
labourers sweat for fulfilment
of their basic necessities.
Sukhpal Singh is head and
Shruti Bhogal teaching
assistant at the Department
of Economics and Sociology,
PAU, Ludhiana.
forecast
SUNSET: TUESDAY 19:29 HRS
WEDNESDAY 05:22 HRS
Sunny Partly Cloudy Cloudy Rainy Foggy
CITY MAX MIN
Chandigarh 35 27
New Delhi 35 31
PUNJAB
Amritsar 36 26
Bathinda 39 29
Jalandhar 35 27
Patiala
35
37
28
27
HARYANA
Ambala 36 26
Bhiwani 38 28
Hisar 36 28
Karnal 35 25
38 28
HIMACHAL PRADESH
Dharamsala 28 18
Manali 23 11
Nahan 28 17
Shimla 21 15
Solan 25 19
JAMMU & KASHMIR
Jammu 37 26
Leh 29 12
Srinagar 28 15
UTTARAKHAND
Dehradun 33 21
23 15
Nainital 22 16
 https://telegram.me/TheHindu_Zone https://telegram.me/PDF4EXAMS

16 THE ECONOMIC TIMES The Edit Page THE ECONOMIC TIMES | BENGALURU | TUESDAY | 27 JUNE 2017

The World Bank needs to reinvent itself and match the pace of GoIs economic narrative
High Provisioning:
No Pain, No Gain
Trust in India banks integrity supreme concern
What India Can Lend the Bank mers prosperity.
The RBI has reportedly asked banks to make steep incre- The growth story in these countri-
es is illustrative for India. It also
ases in the provisioning for bad loans that are referred to helps that the world markets are buo-
bankruptcy courts. This might appear tough: the banks
will have to find something like an additional . 50,000 cro-
yed by Indias democracy nurtured
growth trajectory revved up by re- Zorba the
cent bold economic initiatives such
re this year and a like amount next year, at a time when
they, for the most part, make losses, meaning they will ha-
as the goods and services tax (GST).
No wonder, the tsars of the US econo-
Buddha
TVSN Prasad my are toasting Modi, and these co-
ve to find fresh capital. It might also appear to hinder the OSHO

P
bad loan restructuring exercise. However, setting aside rime Minister Narendra
resources to cover possible losses would serve to reinfor- Modis itinerary in his cur-
ce trust in Indian bankings integrity and the security of rent trip to Portugal, the
untries are eager for enhanced trade
and cooperation. An increased glo- The traditional concept of
bal footprint is essential for Make in man was that of a materialist
India and Indias service sector ini- or spiritualist, moral or immo-

United States and the Net-
depositors savings. Clearly, the banking regulator ma- herlands reveals a telling
kes this the overriding concern. We concur. economic pattern. In their 2009 pa-
A sensible way out for the banks is to sell their bad lo- per, The Role of the Structural
Transformation in Aggregate Pro-
ans to asset reconstruction companies, private equity or ductivity (goo.gl/pb4BBm), econo-
vulture funds at a discount and get an immediate fix on mists Margarida Duarte and Diego
Restuccia analysed Portugals
how much loss they make and how much provisioning
catch-up with the US economy. The
would be called for. This is superior to the banks trying to studys conclusions hold promise for
invoke the bankruptcy code themselves and going thro- India and other countries seeking to
join the club of advanced economies.
ugh the two-year or so process of get-
The employment generation achi-
ting a revival package approved and eved by the US in manufacturing and
implemented or seeing the company services, along with the correspon-
ding productivity rises from 1870 to
through liquidation. Crisil, based on
1956, was achieved proportionately
an assessment of embedded value in by Portugal in only 39 years from 1956
the top 50 NPA cases, estimates that a to 1995. Accumulation of technology,
knowledge and learning from the ex-
60% haircut would be needed on these
perience of other countries helped
loan assets. This is smaller than the late-starters such as Portugal.
100% provisioning that banks would be required to make Make in India resonates with
Portugals story and validates GoIs
in cases of attempted liquidation. Banks must get addi-
steps to further increase the foot-
tional capital to underwrite the impact of a haircut, or of print of services sector in India, par-
higher provisioning pending asset reconstruction. The ticularly in IT, more so in the context
of changing policies of the US for In-
government can infuse fresh capital in the banks it owns
dian companies based there.
directly or create a holding company for state-owned The Netherlands, the third count-
banks that can leverage its own capital to raise resources ry Modi is visiting, presents a classic
case of agricultural productivity
that can be used to capitalise the banks. Or the govern-
triggered, export-driven, job-led
ment can allow the banks to raise capital from the mar- growth, showcasing how Holland
kets, allowing its stake to be diluted. managed to overcome its own Dutch
disease riding on increasing far-
The need is to allow all factor markets to function pro-
perly, so that the valuation of companies up for liquida-
tion would improve and, thereby, reduce the banks pro-
visioning requirement. Resolving the bad debt problem
The bank should not miss the bus in India, hosting
involves some inescapable pain. one-sixth of the worlds population and currently on a
resolute policy push, that is so very central to its remit
tiatives.
Bankable
Global economic institutions need to
be part of this emerging and exciting
economic saga. They also should
swiftly move to consolidate the pro-
mise India holds not only for itself,
but also for the developing world that
looks to India for leadership. Against
this backdrop, Modis visit to the US
also brings into focus the potential
role of another Washington-based
institution the World Bank, given
its Bretton Woods mandate.
Apprehensions of its fast-eroding
relevance are a constant refrain in
the banks corridors, given the decli-
ning dependence of emerging count-
ries on its money. The space for plain
vanilla-type of lending to lay ro-
ads or build infrastructure is inde-
ed shrinking with increased access
to fiscal resources, and the narrative
shifting to minimum government
and maximum governance. The
emphasis is on building an ecosys-
tem that enables and incentivises
private capital to create assets and
provide services.
The World Bank needs to reinvent
itself and match the pace of the eco-
nomic narrative of Indias govern-
ment to build this ecosystem to leve-
rage market liquidity for solid re-
sults. This is not to discount bank-
FILE PHOTO
ral person, sinner or saint. A
divided man is miserable. He is
Put its finger on the pulse again neither healthy nor whole; the
other half that has been denied
supported success stories inclu- Pune municipal bonds point out the will go on taking revenge. It
ding in India but to underline the imminent need to scale this up. will find ways and means to
fact that the bank should not miss the The banks credit guarantees co- overcome the part you have
bus in India, hosting one-sixth of the uld also help untangle the farm loan imposed upon yourself. You
worlds population and currently on waiver conundrum to provide head
will become a battleground,
a resolute policy push, that is so very room to commercial banks to raise there will be civil war. Only a
central to its remit. market resources and reschedule fulfilled tree will flower. Man is
Given the challenges that punctu- their contingent liabilities upto a po- yet to flower. The new man will
ate Indias economic landscape, it int, where fiscal space opens up with
be earthy and divine, worldly
cannot get more interesting in terms overall growth. Simultaneously, the and other-worldly. The new
of policy. Stranded assets abound bank can help strengthen the credit man will accept his totality
from non-performing assets (NPAs) access along with risk mitigation in and he will live it without any
of banks, and the ultra mega power the farm sector and help expand the
inner division, without getting
plants to farm loan waivers. India is Micro Units Development and Refi- split. With the new man will
grappling with these issues with its nance Agency (MUDRA) and Star- come a new world, because the
own customised solutions, such as tup India initiatives for job creation new man will perceive in a
the asset recovery companies, re- and technology incubation.
qualitatively different way. He
scheduling liabilities and outright These prescriptions are part of a will live a totally different life.
writeoffs. difficult puzzle and are easier said He will be a mystic, poet and
than done. But the World Banks in- scientist all at once.
Some Innovation struments have proved their levera-
My concept of the new man
It is an ideal situation for the bank to ging potential in the Latin American is that he will be Zorba the
display its problem-solving skills credit crisis and elsewhere. Indias Greek and he will also be
with its AAA-backed partial risk gu- current initiatives present a historic Gautama the Buddha. The
arantees, coupled with the Interna- opportunity to the bank to reinvent
new man will be Zorba the
tional Finance Corporation (IFC) itself by adapting to a strategic role. Buddha. He will be sensuous
and the Multilateral Risk Invest- In his pathbreaking book, Thin- and spiritual in the body,
ment Guarantee Agency (MIGA) king, Fast and Slow, Nobel Laureate yet with a great conscious-
risk mitigation instruments to redu- Daniel Kahneman refers to the pro-
ness, a great witnessing.
ce financing costs to give these NPA pensity of substituting a difficult qu- Religion failed because it was
companies room to meet contractual estion with a simpler one. Instead, too other-worldly. It neglected
obligations and improve operations the bank would do well to deploy in- this world. To neglect this
to recover. novative instruments that can furt- world is to neglect your own
Partial credit instruments can help her decisive policies of GoIs double- roots. Science has failed
municipal governments raise bonds digit growth, rather than choosing because it neglected the other
that can help increase their public ac- the easier and slower path of vanilla world, the inner, and you
countability and provide much-nee- lending. cannot neglect the flowers. We
ded resources to build smart cities. now need a new humanity in
The recent encouraging results of the The writer worked at the World Bank which religion and science
become two aspects of one
human being. And art will be
the bridge. Thats why I say

Lynch Mobs Threaten US: Changing Attitudes

MEMES THE WORD that the new man will be a
mystic, a poet and a scientist.

This Nations Future Two years after the US Supreme Court directed states to recognise
same-sex marriages, support for allowing gays and lesbians to marry
legally is at its highest point in over 20 years of Pew Research Centers
polling on the subject. By a margin of nearly two-to-one (62% to 32%),
Chat Room
Lynch mobs have come to threaten not just lone lives but the
It is not the sins more Americans now say they favour allowing gays and lesbians to
vitality of the nation itself. This cannot continue and the
I have committed
marry than those who say they are opposed... Modi Strikes
trend must be put down. Political leaders must make it absolu- New High: Public support for same-sex marriage
tely clear that they themselves and the governments they lead that I regret, % who- allowing gays/lesbians to marry legally the Right Note
will not tolerate mob frenzy whipped up in whatever name, but those which Oppose Favour Apropos Protecting an Invest-
ment (Jun 26). The onus of
and that they put the unity of the people, social peace, law and I have had no 2007
saving India-US relations does
order above all other considerations. Failure to discharge this 54 32 37 62
opportunity to 2017 not solely rest with the former.
duty would vitiate the conditions required for society to func- commit. America will also equally lose
tion and the economy to prosper. Support, by generation out if not more if it continues
Mirza Ghalib to adopt protectionist policies.
Last Saturday, a mob harassed four Muslim youths, all sib- Poet
% who favour allowing gays/lesbians to marry legally
India must play its cards right
Source: Pew Research Center

lings, travelling on a train from Delhi to Mathura after a bit of 2007 2017 and negotiate to be an equal
Eid shopping, yanked off their skull caps, called them beef-ea- partner in growth rather than
ters and anti-nationals and assaulted be seen as a freeloader
them with knives, resulting in the death Trump, for example, had
53 74 42 65 34 56 24 41 complained about India along
of one and the hospitalisation of the rest. Millennial Gen X Baby Boomers Silent Generation with other countries while
(born after 1980) (65-80) (46-64) (28-45)
Their village in Haryana observed Eid pulling out from the Paris
wearing black arm bands. A major Mus- climate deal. Modi has already
set the ball rolling in his
lim organisation has cancelled its sche-
meeting with top CEOs, in-
duled Eid gathering to which high-ran- viting US companies to invest
king members of the government had be- MODI-TRUMP MEET Citings in India.
en invited. Meanwhile, in West Bengal, three youths were be-

The New Art of the Deal

BHOLEY BHARDWAJ
aten to death on the suspicion they were involved in
smuggling cattle to Bangladesh. These events follow in the wa- Managing Mumbai

ke of a series of violent attacks by armed mobs on people su-

spected of storing beef or transporting cattle for slaughter. Strategy Make Crop
Many Indians worship the cow and abhor the thought of ea- companies will eventually go where- crucial to the US for staying on the
Cover A Must
ting its meat. Yet many other Indians do not, including a great SAIKAT CHAUDHURI
ver they can find talent to stay compe- leading edge of industrialising tech- Apropos Farm Loan Waivers
many Hindus. Imposing ones own dietary preferences on titive, India, if it charts its course nology and innovation, the real secret Digital disruption is another Disrupt the Fisc (Jun 26). The
others, on pain of death, violates individual liberties and de- carefully, in the long run will not be to the USs greatness. form of disruption. In that rising fiscal deficit due to
adversely affected by H-1B visas. The On the issue of trade surplus with sense, theres a lot we can learn farm loan waivers needs a
mocratic rights guaranteed by the Constitution. best move for Modi will be to simply the US, India is a lightweight, with from past disruptions. Disrup- long-term solution. In case of
Systematic violation of such rights to target minorities wo- take all Trumps negotiating leverage only $24-billion trade surplus, compa- tions happen from time to ti- corporate defaults, debt
uld lead to schism and violence, damaging Indias multicultu- Vinod Dham off on the H-1B visa issue and avoid red with the mammoth surplus of me. Each one has its unique fla- restructuring
ral tradition and robbing it of the fruits of economic reform. any confrontation on this subject. $347 billion with China. Indias sur- vour, and this one happens to is a way out,
In fact, the prime minister should plus has only started rising during be based on digital technologi- but who will
This week, Indian Prime Minister highlight to the president that In- this decade as US and India have esReinventing yourself and cover the
Narendra Modi is in the United States dian information technology (IT) begun to get closer. how you transform in the face default of
to meet with the new US president, players, led by Infosys, have already Modi should remind Trump, that of these challenges there is farmers?
Donald Trump. Before becoming started making adjustments to their unlike China, he has taken a free no one answer or right answer. False and
Can other leaders trump the Portuguese president, Trump was a successful H-1B needs. For example, they have market approach to US technology I think that manufacturing is illogical
premiers Indian repast for Modi? businessman and television persona- stopped applying for H-1B visas for players selling in India. Amazon, going to enter a new age. Were commitments to waive off
lity. He is the first US president witho- employees with lower levels of Uber, Google, Facebook and now moving to automation. Were farm loans during electionee-
ut prior governmental or military experience and are in the process of Apple, enjoy a free market access to moving into smart factories. ring aggravates the problem.

When India is on the experience.

Trump had a stunning victory in a
bitterly fought election, using the
campaign slogan Make America
completely halting applications for
employees with less than four years
of experience.
In addition, Infosys has announced
India. Over time the trade between
the two countries will find an accep-
table balance.
On the topic of the Paris Climate
This is the advantage that the
advanced economies have be-
cause not everybody can be in
the services sector. Whether in
Lack of warehouses, market
accessibility, proper pricing
mechanism, information
asymmetry and low penetra-

High Table Menu Great Again. He has portrayed him-

self as an excellent deal maker, high-
lighted by the fact by the book he
If Indians can get home food these days in places as far away co-authored, The Art of the Deal. To
make better deals than his predeces-
as Buenos Aires or Irkhutsk which even has two only-ve- sor, Trump has been reversing some of
getarian restaurants there is no reason Portugal cannot the policies of former US President
dish out authentic desi fare for the first Indian prime mini- Barack Obama.
ster to ever arrive on its shores. After all, Portugal now has a For example, supported by Republi-
can Congressmen and senators, he is
reputation to defend as one of the culinary hot spots of the
world and a favourite of Michelin star aficionados. Not that
leading the efforts towards replacing
the Affordable Care Act (Obamacare)
our PM has such gourmet predilections, but he must have with the American Healthcare Act. He
been pleasantly surprised at the Indian repast laid out by his has withdrawn the US from the Trans-
Pacific Partnership (TPP) to make
Portuguese counterpart, coincidentally of part-Goan ori- bilateral deals with each nation. He
gin. Tadka dal and saag kofta accompanied by the appropria- has pulled the US out of the Paris
tely hued saffron rice must have hit the spot, not to mention Climate Agreement, and is willing to
Indian rajma and makai instead of a vegetarian version of participate if he is allowed to negotia-
te better terms for the US.
the local kidney bean stew called feijoada. Paneer, or cottage Trump has been in office for less
cheese must have been diplomatically omitted given the un- than six months. His administration
certainty of whether Indians got it from the Persians or the is going through a steep learning
curve. As Modi prepares to meet him
Portuguese traders based in Bandel on the Hooghly.
for the first time, he should be acutely
At the White House state banquet for the then-PM Dr Man- aware of Trumps personality and
mohan Singh in 2009, the Obamas had red lentil soup ma- tactics.
sur dal with fresh cheese, roasted potato dumplings with Trump, according to The Art of the
that it would hire 10,000 Americans
over the next two years and set up four
innovation hubs in the US. Infosys is
Change Agreement, Modi should keep
the higher ground and ignore the USs
accusations. India is by far the smal-
3D printing form or otherwise,
we will have manufacturing. It
might be smart manufactu-
tion of crop insurance are
other factors of farm distress.
Compulsory crop insurance
building a tech hub in Indianapolis lest of the four largest CO2 emitters in ring and a lot of robots in the- can be a long-term solution.
that will create 2,000 jobs. This will go the world and is ranked 128th based on re, but we will need people to
a long way in supporting Trumps the largest emission per capita. The do that. I absolutely think its SANJAY TIWARI
theme of adding jobs in the US. US, on the other hand, is ranked way necessary to move to that level. Hisar
Once the two sides are on a firm up at the top at No. 12. India has only Germany has something cal-
footing, they can find a way forward to
both protect the American workers
recently started focusing on growing
its GDP and has over 300 million
led Industry 4.0. A number of
firms are moving in that direc- For A Stellar
and also continue a system that is people, equivalent to the entire popu-
lation of the US, living without access
tion. Smart factories are a big
priority thats mandated by
Vice President
to energy. Germany. All these big manu- This refers to Time to Talk
Modi should go into meetings on this facturing powers are looking about the Vice-President (Jun
trip with Trump with no expectations, to really strengthen and ad- 26). With both NDA and UPA
other than to meet and greet each vance and move to the next le- coalitions on a collision cour-
other. The US and India have a mutual vel. Its not possible to predict se for electing the president,
need to strengthen their bilateral ties the future and where things chances of a consensus candi-
to address the growing threat of are headed. Its more impor- date for the position of vice
terrorism worldwide. Also, as Chinas tant to track whats going on president have receded a bit.
military capabilities are growing at and adapt. You have to be good One hopes that the choice will
an unprecedented speed, the USs at deciding, Heres when I use be a liberal and widely known
recognition of the geopolitical realiti- organic, heres when I use personality for the key posi-
es of assertive China will help it look partnerships, heres when I tionafter all a stalwart like
at India through a wide angle lens. use acquisitions. And you ha- late Dr S Radhakrishnan was
Meanwhile, India should manage ve to be good at implementing the first VP.
its relations with the US thought- them, so you really have to in-
fully and avoid creating unnecessary novate innovatively. YG CHOUKSEY
FILE PHOTO

Deal, states that one of his key mant- ripples. Pune

tomato chutney, chickpeas and okra, and pumpkin pie. Will
ras is to use your leverage. Trump From: Disruptors Need to
the current incumbent trump that menu or the Portuguese could use the H-1B visa issue as levera- The writer is Executive Managing Continue Innovatingor Be
Letters to the editor may be addressed to

one for this Indian PM at their working dinner? ge for discussions with Modi. Since US Embracing the idea of India Director, Indo-US Venture Partners Disrupted editet@timesgroup.com