Africa, we stand by you, says President

The President of India, Shri Pranab Mukherjee addressed the Indian Community Reception in Accra, Ghana yesterday (June 13, 2016). 

Speaking on the occasion, the President said that his visit to Africa was to convey the message that India stands by Africa. He told the Indian community that India's partnership and friendship with Africa are abiding and enduring. India will continue to work with Ghana and other countries of the continent for mutual benefit and progress. 

The President said that the ten thousand strong Indian community in Ghana is a vibrant amalgam of individuals from different walks of life. Each one of them has a story to tell - that inspires others towards greater things and motivates an entire generation. Their contributions have, no doubt, been valued and appreciated by the friendly people of Ghana. He said that looking at the Indian Community in Ghana, the people of Ghana could see a microcosm of the Indian diversity and plurality. 

The President said that India's trade with Africa is over US$70 billion and investments about US$35 billion. The 3rd India-Africa Forum Summit in New Delhi in October last year provided a medium to long-term vision for India's cooperation with Africa. The Indian Diaspora in Africa will have an important role to play in accomplishing some of the objectives of this vision. 

He said that the efforts of the Indian Community in Ghana is complementing many foreign policy measures taken by the Government of India to assist the friendly countries in Africa, including Ghana. India has extended over US$400 million of concessional credit to Ghana in the last few years for various projects. EXIM bank is also providing funding for a railway project. India-Ghana bilateral trade has reached US$3 billion and Indian investments in this country are estimated at around US$1 billion. These giant strides would not have been possible without the active role of the Diaspora. They had become force multipliers of India's growing economic strength. The President thanked them for their commitment. 

The President congratulated all of them for making India proud through their contributions to the socio-economic development of Ghana. He called upon them to actively take part in various programmes which the Government of India has embarked upon such as Digital India; Stand-Up India; Start-Up India; Smart Cities; Swatch Bharat etc. 

India's May retail inflation hits near 2-year high on surging food prices

New Delhi : India's annual consumer price inflation INCPIY=ECI accelerated to a near two-year high of 5.76 percent in May, driven by surging prices of food products such as pulses and sugar, which could dampen hopes of a rate cut at least during the next monetary policy review in August.

After leaving rates unchanged last week, Governor Raghuram Rajan said the Reserve Bank of India, which has targeted inflation at 5 percent by March 2017, was looking for room to reduce interest rates, but there were concerns over upward pressure on food and commodity prices.

Economists polled by Reuters had expected annual consumer prices, which the RBI closely tracks to set its interest rate policy, to be up by 5.52 percent in May, compared with an upwardly revised 5.47 percent in April.

Food inflation picked up to 7.55 percent in May from an upwardly revised 6.40 percent in the previous month, as prices of vegetables, sugar and pulses rose between 11 percent and 32 percent from a year earlier.

Retail inflation has more than halved since November 2013, thanks to a crash in global commodity prices as well as subdued rural demand. It had hit 7.03 percent in August 2014.

Analysts fear an increase in the cost of petrol and diesel by more than 5 percent since May 1, and in prices of foods such as sugar and milk in the last month, could further heat up prices.

"While there are some seasonal factors at play, structural mismatches are also evident in the rise in protein inflation," said A. Prasanna, economist at ICICI Securities Primary Dealership.

"We stick to our call of no more rate cuts in this financial year."

The government has also hiked taxes by 0.5 percentage point on services such as telecoms, travel and eating out from June 1.

Monday's data comes on the heels of a 0.8 percent contraction in industrial production INIP=ECI in April.

Asia's third largest economy grew 7.9 percent in the quarter to March, outpacing China's 6.7 percent growth, and is projected to expand by around 7.75 per cent in the current fiscal year that started on April 1.

New Delhi expects good rainfall between June and September, after two years of drought, to boost growth and tame prices of food items that account for nearly half of the consumer price index.

The monsoon, which delivers 70 percent of annual rainfall, is critical for India's 263 million farmers and crops such as rice, cane, corn and cotton because nearly half of farmland lacks irrigation.


(Additional reporting by Rajesh Kumar Singh, Neha Dasgupta in NEW DELHI, Abhirup Roy in Mumbai; Editing by Douglas Busvine and Kevin Liffey)

Ghana seeks civil nuclear cooperation with India

Accra, Jun 13 (PTI) Ghana today sought India's cooperation in civil nuclear energy in an attempt to harness clean and sustainable energy to shift its energy mix which is at present focused on traditional energy sources.

The issue came up for discussion during the talks between President Pranab Mukherjee and his Ghanaian counterpart John Dramani Mahama today.

After the talks, the two sides signed three MoUs including the waiver of visa for diplomatic and official passports, establishment of a joint commission to periodically monitor various aspects of multidimensional relationship, and helping in training of Ghanaian Foreign services.

"In the new areas, it came for the first time...Ghanian President specifically mentioned that since India is leader in nuclear energy they want to look at having a civil nuclear cooperation with India," Secretary (Economic Relations) Amar Sinha said.

The two sides discussed new model of doing business on how to go beyond government to government and lines of credit modes of investment.

"They said they would want to cooperate with India to see if they can also use the nuclear energy route. They will examine what are the possibilities, what human and national resources are required," Sinha said.

They said it will be evaluated, discussed and then anything can be said on how to move ahead on the issue.

"They are signatory to COP 21 (Paris Climate deal) and want to move towards clean energy as present energy mix is based on fossil fuels," Press Secretary to President Venu Rajamony said. .

Saina clinches second Australian Open title

 Sydney, Jun 12 (PTI) Indian ace Saina Nehwal received a huge boost ahead of the Rio Olympics as she clinched her second Australian Open title after defeating China's Sun Yu in a thrilling three-game final of the Super Series badminton tournament here today.

The 26-year-old from Hyderabad eked out a 11-21 21-14 21-19 over the World No. 12 Sun in a fighting summit clash that lasted an hour and 11 minutes here.

London Olympics bronze medallist, Saina, who had beaten two world champions -- Thailand's Ratchanok Intanon (2013) and China's Yihan Wang (2011) in the quarterfinals and semifinals --, thus clinched her maiden title of the season and pocketed a cheque of USD 56,250.

It is Saina's second Australian Open victory, having clinched the title in 2014 as well. It ended a rather long title drought for the celebrated Indian, whose previous title before today was at the India Super Series in New Delhi in last year.

Saina had defeated Sun five times in the last five outings but she faced a tough challenge against the 22-year-old Chinese, who took just 18 minutes to wrap up the opening game at the Sydney Olympic Park.

Sun dished out a fast-paced game, which Saina failed to break initially. The Indian struggled with the length of the shuttle and committed a few unforced errors early on as the duo moved together till 4-4.

Saina missed a couple of points at the net and also hit wide to allow Sun a lead of 7-4. The Indian failed to connect and reach for a few returns which allowed Sun to extend the lead at 10-5. At the break, Sun lead 11-6 when Saina's backhand return failed to cross the net.

Two wide returns by Sun helped Saina narrow the gap but the Chinese kept engaging her in fast rallies, not allowing her to play her own game.

The Indian also faltered in judging the shuttle at the backline three times to see Sun lead 17-10.

With Sun covering the court well, the margin of error was nil for Saina and she eventually conceded the opening game after losing a video referral following a wide shot.

After changing sides, the second game started on an even-keel as the duo were locked 4-4 again. Sun used her deceptive shots to wriggle out of tricky situations and also covered the front court well to lead 6-4.

Saina grabbed a couple of points to draw level and with Sun sending the shuttle outside twice, the Indian led 10-8.

She entered the interval with a three-point lead when Sun hit the net.

The Chinese grabbed two quick points after the break but Saina continued to break the pace by playing few attacking shots and drawing the Chinese close to the net with deceptive strokes. The result was Saina leading 17-12.

With Sun hitting the net, Saina grabbed six game points and converted the first after the Chinese found the net again.

Stocks pricey, Sensex may correct to 26k by year-end: HSBC

Mumbai, Jun 12 (PTI) Recent market rally may have resulted in upward outlook revision by brokerages, but HSBC feels Indian equities are overpriced and Sensex is in for a correction, which may slump to 26,000 by the end of 2016.

"We expect the Sensex to correct to 26,000 by 2016-end.

This expectation is largely due to high valuations and expectations of risk aversion due to uncertainty related to some of the global events like European politics and the US Fed's move," HSBC Equity Strategist for Asia-Pacific Devendra Joshi told PTI here.

He added that on the domestic front, any poor distribution of the monsoon, estimated to be above normal this year, can be a deal-breaker.

Citing his conversations with foreign investors, the Hong Kong-based Joshi said there are also concerns surrounding the valuations in the country at present.

"We feel that the current valuations make India expensive and they will have to come down to increase investor interest," he said, adding that Indian equities are trading at over 17 times one-year forward earnings as against an earnings growth of around 14 times.

For investor interest to grow, the gap between the two numbers has to narrow, he emphasised.

The BSE's 30-share Sensex hit a 7-month high last week, prompting brokerage Ambit Capital to raise its year-end target to 29,500 by the end of the fiscal.

Morgan Stanley has a 'bull case target' of 30,000 by March 2017.

The Sensex closed at 26,635 on Friday, after a low of 22,494 on February 29.

On its contrary call, Joshi said HSBC had cut India to 'underweight' in May 2015 due to high expectations when everybody was gung-ho about the country. It revised up the outlook to 'neutral' last month.

Joshi acknowledged that there are positive factors at play, including a growth and reform-oriented dispensation and margin improvement.

He singled out inflation as a factor to watch out for, adding that any movement in the reading, which surprised on the upside in April, may lead to action by RBI with a bearing on investor confidence.

On the continuation of Governor Raghuram Rajan as the head of RBI, he said "the incumbent does command respect" but its calls on the country will not be affected much by turn of events on this front.

"He (Rajan) definitely adds to the investor confidence and would like to see him continue for the second term. But as for our call on India, it mainly depends on fundamental factors, including economic growth, earnings, valuations and investor holdings," Joshi said.

Rajan's current term is set to end in September and speculations are rife about his continuation in the post.

"Govt to take own course on 2nd term to RBI Guv"

Bengaluru, Jun 11 (PTI) Government would take its "own course" on giving a second term to Reserve Bank of India Governor Raghuram Rajan and deliberations and discussions in public domain would not decide it, Union Law Minister Sadananda Gowda said today.

Gowda also said he is not aware of the reported formation of a selection committee by the government to shortlist candidates for the post of RBI Governor.

"I am not aware of why the committee has been formed, and how the selection (of RBI Governor) will be done. I am really not aware," he told PTI here.

Gowda's response came when he was asked if setting up of the committee to shortlist candidates for RBI Governor's post meant that government would not give a second term to Rajan.

The Union government, as per some media reports, had formed a selection committee headed by Cabinet Secretary P K Sinha for shortlisting candidates for RBI Governorship.

The issue of giving a second term to Rajan has generated much debate in public domain after BJP MP Subramanian Swamy launched an attack against him and wrote to Prime Minister Narendra Modi to remove him.

Gowda, however, said the government has its ways and means to decide on whether Rajan should be given the second term as the RBI Governor or not.

"Deliberations and discussions in public domain will not decide the issue. The government has its own ways and means of how it should process it - whether to continue, not to continue (Rajan). The government will take its own course," he said.

Stepping up his campaign against Rajan, Swamy, in a letter to Modi, had urged him to "terminate" his services "effective immediately" or when his term ends in September because he was "mentally not fully Indian".

In yet another salvo at Rajan, Swamy had yesterday alleged that the former IMF chief economist had planted 'a time bomb' in the Indian financial system that will explode in December.

Swamy last month had also written yet another letter to Modi, seeking Rajan's ouster for keeping interest rate high.

Asked to comment on whether Rajan's discontinuance as RBI Governor would affect the Indian market and flow of foreign investments, Gowda said, "There are positive and negative talks, but how this (Rajan issue) has to be done properly, and for that reason they might have decided to take the feedback across the country.

India's Adani eyeing bid for SunEdison solar assets: CEO

The headquarters of SunEdison is shown in Belmont, California April 6, 2016.


Indian conglomerate Adani Group (ADEL.NS) is considering a bid for the local solar assets of U.S. SunEdison (SUNEQ.PK), the chief executive officer for Adani's renewable energy arm said on Friday.

Jayant Parimal, Adani Green Energy Ltd's CEO, told reporters in Mumbai that his company was deciding whether to bid after investment bankers appointed by the U.S. firm approached it to gauge interest.

SunEdison filed for bankruptcy in April after an ambitious growth plan and $12 billion in debts proved unsustainable.

That has cast doubt over its ability to take advantage of India's push into renewable energy, and analysts predict that SunEdison will sell a number of local solar and wind assets or seek equity partners for projects to raise capital.

SunEdison runs solar plants in India with capacities of about 450 megawatts (MW). It has another 800 MW of capacity under development and won a tender for a 500 MW plant in the southeastern state of Andhra Pradesh.

It is not immediately clear how much a bid for its solar assets would be worth.

Parimal said that Adani, which has interests in coal mining, oil and gas exploration and logistics, was targeting a solar generation capacity of 3,500 MW by April next year.

It is also building a solar panel manufacturing plant at Mundra in India's western Gujarat state where the parent company owns a huge port.

(Reporting by Promit Mukherjee; Writing by Tommy Wilkes; Editing by Keith Weir and Elaine Hardcastle)

Malabar Exercise kicks off close to South China Sea

 New Delhi, Jun 10 (PTI) India, Japan and the US today kicked off their marine war games, Malabar Exercise, close to the South China Sea as they focus on deeper military ties and greater interoperability amid rising tensions in the region.

The Indian Navy said that their ships Satpura, Sahyadri, Shakti and Kirch are participating in the 20th edition of the naval exercise in consonance with India's 'Act East Policy' and growing ties among the three countries.

The exercise will support maritime security in the Indo-Pacific region and benefit the global maritime community, the navy said.

The exercise assumes significance as it is being conducted close to South China Sea at a time when Chinese assertiveness in the region is a raging issue.

India and the US have regularly conducted the annual exercise since 1992. Since 2007, Malabar has been held alternatively off India and in the Western Pacific. Last year, it was conducted off Chennai and included participation of Japan.

While the harbour phase of the exercise started today at Sasebo, the sea phase in the Pacific Ocean will be held from June 14 to 17.

"The primary aim of this exercise is to increase interoperability amongst the three navies and develop common understanding of procedures for Maritime Security Operations," the statement said.

Indian ships participating in the exercise are from the Eastern Fleet and include INS Sahyadri and INS Satpura, indigenously built guided missile stealth frigates, INS Shakti, a modern fleet tanker and support ship, and INS Kirch, an indigenous guided missile corvette.

The US Navy will be represented by aircraft carrier USS John C Stennis (CVN 74), Ticonderoga class Cruiser USS Mobile Bay and Arleigh Burke class destroyers USS Stockdale and USS Chung Hoon, all carrying helicopters.

In addition, one nuclear-powered submarine, carrier wing aircraft and long-range maritime patrol aircraft will also participate in the exercise.

Japan will be represented by Hyuga, a helicopter carrier with SH 60 K integral choppers and long-range maritime patrol aircraft, besides other advanced warships for specific parts of the exercise.

Additionally, the Special Forces (SF) of the three navies will also interact during the exercise.

India plans expanded missile export drive, with China on its mind

 
India's Brahmos supersonic cruise missiles, mounted on a truck, pass by during a full dress rehearsal for the Republic Day parade in New Delhi, India, January 23, 2006

New Delhi : India has stepped up efforts to sell an advanced cruise missile system to Vietnam and has at least 15 more markets in its sights, a push experts say reflects concerns in New Delhi about China's growing military assertiveness.

Selling the supersonic BrahMos missile, made by an Indo-Russian joint venture, would mark a shift for the world's biggest arms importer, as India seeks to send weapons the other way in order to shore up partners' defences and boost revenues.

The government of Prime Minister Narendra Modi has ordered BrahMos Aerospace, which produces the missiles, to accelerate sales to a list of five countries topped by Vietnam, according to a government note viewed by Reuters and previously unreported.

The others are Indonesia, South Africa, Chile and Brazil.

The Philippines is at the top of a second list of 11 nations including Malaysia, Thailand and United Arab Emirates, countries which had "expressed interest but need further discussions and analysis", the undated note added.

A source familiar with the matter would only say the note was issued earlier this year.

New Delhi had been sitting on a 2011 request from Hanoi for the BrahMos for fear of angering China, which sees the weapon, reputed to be the world's fastest cruise missile with a top speed of up to three times the speed of sound, as destabilising.

Indonesia and the Philippines had also asked for the BrahMos, which has a range of 290 km and can be fired from land, sea and submarine. An air-launched version is under testing.

WARY EYE ON CHINA

Unlike Vietnam, the Philippines and Malaysia, India is not a party to territorial disputes in the South China Sea, a vital global trade route which China claims most of.

But India has an unsettled land border with China and in recent years has grown concerned over its powerful neighbour's expanding maritime presence in the Indian Ocean.

It has railed against China's military assistance to arch-rival Pakistan and privately fumed over Chinese submarines docking in Sri Lanka, just off the toe of India.

"Policymakers in Delhi were long constrained by the belief that advanced defence cooperation with Washington or Hanoi could provoke aggressive and undesirable responses from Beijing," said Jeff M. Smith, Director of Asian Security Programs at the American Foreign Policy Council in Washington.

"Prime Minister Modi and his team of advisers have essentially turned that thinking on its head, concluding that stronger defence relationships with the U.S., Japan, and Vietnam actually put India on stronger footing in its dealings with China."

India's export push comes as it emerges from decades of isolation over its nuclear arms programme.

It is poised to join the Missile Technology Control Regime (MTCR) after talks between Modi and U.S. President Barack Obama in Washington this week. BrahMos' range means it falls short of the 300 km limit set by the voluntary organisation.

India's accession to the MTCR may also strengthen its case for joining another non-proliferation body, the Nuclear Suppliers Group, a move China has effectively blocked. Both groups would give India greater access to research and technology.

BrahMos Aerospace, co-owned by the Indian and Russian governments, said discussions were underway with several countries on missile exports, but it was too early to be more specific.

"Talks are going on, there will be a deal," said spokesman Praveen Pathak.

India is still a marginal player in global arms exports. The unit cost of the missile, fitted on Indian naval ships, is estimated at around $3 million.

GETTING CLOSER TO VIETNAM

India has been steadily building military ties with Vietnam and is supplying offshore patrol boats under a $100 million credit line, its biggest overseas military aid.

This week Defence Minister Manohar Parrikar held talks with his Vietnamese counterpart General Ngo Xuan Lich in Hanoi and both sides agreed to exchange information on commercial shipping as well as expand hydrographic cooperation, the Indian defence ministry said in a statement on Monday.

A source at the defence ministry said India was hoping to conclude negotiations on the supply of BrahMos to Vietnam by the end of the year.

The Indian government is also considering a proposal to offer Vietnam a battleship armed with the BrahMos missiles instead of just the missile battery, the source said.

"A frigate integrated with the BrahMos can play a decisive role, it can be a real deterrent in the South China Sea," the source said, adding New Delhi would have to expand the line of credit to cover the cost of the ship.

Indian warships are armed with configurations of eight or 16 BrahMos missiles each, while sets of two or four would go on smaller vessels.

A Russian official said exports of BrahMos to third countries was part of the founding agreement of the India-Russia joint venture. Only now India had armed its own military with the BrahMos was there capacity to consider exporting, he added.

(Additional reporting by Douglas Busvine; Editing by Mike Collett-White)

Mexico backs Indian bid to join nuclear suppliers' non-proliferation body

President Enrique Pena Nieto drove PM Modi to dinner after bilateral talks. Mexico has supported India's bid for NSG membership

MEXICO CITY | Mexico supports India's efforts to join the Nuclear Suppliers Group (NSG), President Enrique Pena Nieto said on Wednesday, in a boost for Prime Minister Narendra Modi's diplomatic push to end his country's isolation over its nuclear arms program.

India's bid to join the NSG is due to be discussed at a plenary session of the 48-member group in Vienna on Thursday.

"Mexico recognizes India's interest in joining the Nuclear Suppliers Group," Pena Nieto said, with Modi at his side at the Mexican president's Los Pinos residence. "As a country we have a positive and constructive backing for this."

India is also poised to join the Missile Technology Control Regime (MTCR) after talks this week between Modi and U.S. President Barack Obama in Washington.

Both groups would give India greater access to research and technology, but China has so far blocked India´s accession to the NSG.

Mexico supported India's membership because of Modi's "commitment to the agenda of nuclear disarmament and non-proliferation," Pena Nieto said.

New Delhi's bid for full membership, if granted, would tip the balance of power in South Asia against its arch-rival Pakistan, whose own application has been backed by China, despite questions over its proliferation record.

Pena Nieto's support is a boost for Modi, but he must still win China's support to seal India's membership of the non-proliferation body. The NSG holds its annual meeting in South Korea later this month.

"I thank President Pena Nieto for his positive and constructive support for India's membership of the Nuclear Suppliers Group," Modi said at the end of a whirlwind week of global diplomacy in which he also won support from Switzerland.

Mexico's backing represents a historic policy shift for the country, which has held a firm position on nuclear disarmament and non-proliferation for decades.

One of Mexico's crowning diplomatic achievements was the 1967 Treaty of Tlatelolco, which declared Latin America and the Caribbean a zone free of nuclear weapons.

India made its formal bid for membership last month after winning a waiver in 2008 allowing it to trade in commercial nuclear technology.

Modi tacked on Switzerland and Mexico as extra stops on a five-country tour to seek their support.

(Reporting by Frank Jack Daniel; Editing by Simon Gardner, Clarence Fernandez and Paul Tait)