Rajan says no to second term; Industry terms it nation's loss

 Mumbai/New Delhi, Jun 18 (PTI) Buffetted by political attacks coupled with unending speculation over his continuance, RBI Governor Raghuram Rajan on Saturday said no to a second term in the post, a surprise decision the industry and opposition parties termed as nation's loss.

Ruing that his work on containing inflation and cleaning up books of the banks was "yet to be completed", Rajan said, "While I was open to seeing these developments through, on due reflection, and after consultation with the government, I want to share with you that I will be returning to academia when my term as Governor ends on September 4, 2016." 

Speculation has been rife over whether Rajan, former IMF Chief Economist known to have predicted the 2008 global financial crisis, would get a second term after BJP leader Subramanian Swamy launched a no-holds barred attack on him recently accusing him of destroying economy with his hawkish stance on interest rates.

Swamy had also questioned whether Rajan was "mentally, fully Indian" as he holds a US Green Card, among other allegations.

53-year-old Rajan, who took charge as RBI Governor in September 2013 with a three-year term, had also ruffled feathers in the saffron camp with his outspoken views on issues like intolerance and his remarks about India being 'one-eyed king in the land of blind'.

While Finance Minister Arun Jaitley called for restraint in public criticism in the wake of Swamy's attacks, BJP President Amit Shah said the newly-nominated MP's remarks were his personal opinion.

Answering questions on another term for Rajan, Prime Minister Narendra Modi had said that this "administrative subject" should not be an issue of interest to the media and it "will come up only in September".

In his letter to colleagues, 53-year-old Rajan, appointed by the previous UPA Government in September 2013, said he "will, of course, always be available to serve my country when needed".

Decision of Rajan, who was called a rockstar central banker, immediately set off speculation about his successor and the impact it could have on stock and bond markets when they open on Monday morning.

Jaitley, who had earlier steadfastly refused to discuss in public the issue of a second term for Rajan, welcomed his decision saying he respects it and said the government appreciates his good work.

A decision on successor to Rajan would be announced shortly, he said. .

UK backs India's NSG bid; offers 'firm support'

 London, Jun 17 (PTI) British Premier David Cameron has assured Prime Minister Narendra Modi of the UK's "firm support" for India's NSG membership bid, a boost to the country ahead of the nuclear trading club's crucial meeting next week.

Cameron confirmed Britain's backing for India's membership of the 48-nation Nuclear Suppliers Group (NSG) in a telephone call to Modi yesterday.

A Downing Street spokesperson said, "The Prime Minister spoke to the Indian Prime Minister Narendra Modi about India's application for membership of the Nuclear Suppliers Group, a group of nuclear supplier countries that works together to prevent nuclear proliferation by controlling the export of materials, equipment and technology that can be used to manufacture nuclear weapons." 

"The Prime Minister confirmed that the UK would firmly support India's application. They agreed that in order for the bid to be successful it would be important for India to continue to strengthen its non-proliferation credentials, including by reinforcing the separation between civil and military nuclear activity," the spokesperson said.

The two leaders also took stock of UK-India ties in their telephonic conversation.

"They agreed that the UK-India relationship was going from strength to strength, including through the recent visit of the Duke and Duchess of Cambridge (Prince William and wife Kate)," the spokesperson said.

India's case for NSG membership is also being strongly pushed by the US, which has written to other members to support India's bid at the plenary meeting of the group expected to be held in Seoul on June 24.

While majority of the elite group backed India's membership, China along with New Zealand, Ireland, Turkey, South Africa and Austria were opposed to India's admission.

China maintains opposition to India's entry, arguing that it has not signed Nuclear Non-Proliferation Treaty (NPT).

China wants NSG membership for its close ally Pakistan if NSG extends any exemption for India.

India has asserted that being a signatory to the NPT was not essential for joining the NSG as there has been a precedent in this regard, citing the case of France.

The NSG looks after critical issues relating to nuclear sector and its members are allowed to trade in and export nuclear technology. Membership of the grouping will help India significantly expand its atomic energy sector.

India has been reaching out to NSG member countries seeking support for its entry. The NSG works under the principle of consensus and even one country's vote against India will scuttle its bid.

India believed its own independence was incomplete so long as its brethren in Africa continued to suffer oppression by foreign masters, says President

The President, Shri Pranab Mukherjee and the President of the Republic of Namibia, Mr. Hage Geingob, at the delegation level talks, at State House, in Windhoek, Namibia on June 16, 2016.

The President of India, Shri Pranab Mukherjee addressed the members of Parliament of the Republic of Namibia today (June 16, 2016) in Windhoek. 

Speaking on the occasion, the President said the India-Namibia relationship has been built on the firm foundation of mutual trust and understanding. Our two nations are bound by our common experience of colonial rule and the struggle of our people for freedom. India believed that its own independence was incomplete so long as its brethren in Africa continued to suffer oppression by foreign masters. India was proud to stand shoulder to shoulder with the leaders and people of Namibia in their liberation struggle. We were among the first nations to raise the question of Namibian independence in the UN. It was India that inscribed on the agenda of the UN General Assembly in 1946 the problem of colonial oppression and racial discrimination in South Africa and Namibia. The first ever SWAPO Embassy abroad was established in New Delhi in 1986 and it was this move by India that started the chain of diplomatic recognition by other countries and the inevitability of Namibia’s independence. Diplomatic relations with independent Namibia were established right from the moment of its independence. 

The President said Namibia’s commitment to democracy and the success of its national reconciliation programme has made it a role model for Africa. We, in India, admire Namibia's transformation into a vibrant, peaceful and fast progressing nation. We appreciate the vision of President Geingob in introducing the 'Harambee Prosperity Plan'. India stands ready to extend any assistance that Namibia may require for achieving the 'Harambee Prosperity Plan's socio-economic objectives. India would also be happy to partner with Namibia in the implementation of "Vision 2030" through inclusive development and capacity building. 

The President said India remains committed to a strong development partnership with Namibia in the South-South framework. We will continue to extend all possible assistance for human resource development and capacity building in Namibia. India’s expertise in IT and digital technologies, agriculture and dairy development can be utilized to further cement our economic partnership. We look forward to more students and officials from Namibia coming to India, availing the scholarships and training programmes offered by our Government. 

Founding President of Namibia Sam Nujoma also attended the address of President Mukherjee to the joint session of the Namibian Parliament. 

Sensex slumps 201 points on global weakness

Mumbai, Jun 16 (PTI) Fresh global economic worries once again reflected in Indian stocks with benchmark Sensex staggered to slump 200.88 points to finish 26,525.46 after bank of Japan kept the monetary-easing policies unchanged and Brexit worries.

The overnight hefty short-covering gains amid SBI merger consent with subsidiaries as well as new aviation policies approved by cabinet were shortlived as investor sentiment once-again back to tenterhooks following revival of fresh global uncertainties.

The BOJ inaction on stimulus after its two-day monetary-policy review led Asian markets tumble across the region, with Japan Nikkei 225 index falling 3.05 per cent lower.

While European equities rattled following US Federal Reserve trimmed the year-2016 growth forecast 2 per cents from 2.2 per cent after its two-day huddle, even as the central bank signalled slower approach on raising interest rates, in the midst of Brexit concerns.

US Chairwomen Janet Yellen statement Britain June23 referendum on whether the country will stay in the EU was a factor to look for with vulnerabilities in the global economy remain.

The domestic stock momentum characterized weakness relating global downtrend, though recovered from its over 400 points downfall during intra-day owing to bouts of stock specific value buying and Metal segment, while recapturing over 200 points during the close.

The BSE Sensex opened lower at 26,686.03 and tanked to low of 26,314.91 before ending at 26,525.46, showing a loss of 200.88 points or 0.75 per cent. Yesterday the gauge had gained 330.63 points.

The 50-issue NSE Nifty also dropped 65.85 points or 0.80 per cent to conclude at 8,140.75.

Barring Metal counters, selling was led by Telecom, Banks, Capital Goods, Finance, Industrials, Realty and Energy sectors. While secondline including midcap and smallcap shares also incurred losses. .

Thai PM arrives; to hold talks with Modi tomorrow

New Delhi, June 16 (PTI) Thai Prime Minister Prayut Chan-o-cha arrived here today on a three-day visit with an aim to depeen bilateral cooperation in areas of trade and investment, defence, security and tourism.

Chan-o-Cha will have extensive talks with Prime Minister Narendra Modi tomorrow during which both sides are likely to explore ways to expand maritime security cooperation, deal with threat of terrorism and boost trade.

There are indications that both leaders will discuss the situation in the South China Sea.

The Thai Prime Minister is accompanied by his spouse Naraporn Chan-o-cha and a high-level delegation comprising several cabinet ministers, senior officials and a 46-member business delegation.

Chan-o-Cha's, who arrived on his first visit here as Prime Minister, was received at the airport by Minister of State for Home Kiren Rijiju.

"India's excellent relations with Thailand are an important and integral component of India's strategic partnership with ASEAN. India's 'Act East' policy is complemented by Thailand's 'Look West' policy in bringing the two countries closer," the External Affairs Ministry said in a statement.

Modi will host lunch in honour of his Thai counterpart tomorrow. The Thai PM will also call on Vice President M Hamid Ansari.

Chan-o-Cha is expected to deliver a speech at the business event hosted by FICCI, CII and ASSOCHAM on 17 June. The India- Thailand Joint Business Forum will hold its first meeting during the visit and make recommendations for boosting trade ties between the two countries.

He will visit Bodhgaya on Saturday before returning to Thailand.

"India and Thailand have strong economic synergies and the diversifying profile of growing bilateral trade and investment reflects the growth and maturity of the interaction between the two economies," said MEA.

Issues related to the proposed Free Trade Agreement between the two countries are likely to figure in talks. The volume of current annual bilateral trade between the two countries is nearly USD 8 billion and both sides are keen to expand it further.

Earlier Prime Minister Yingluck Shinawatra had paid a State visit to India in January 2012 and was the Chief Guest for the Republic Day celebrations.

Maritime security cooperation between the two countries countries in the Indian Ocean is already "very strong", said Secretary (East) in the Ministry of External Affairs Preeti Saran, adding ways to further enhance it may be explored during the talks.

Thailand has shown interest in joint ventures in defence production and procurement of defence platforms from India.

My visit to Africa is part of India’s grand strategy towards Africa, says President

The President, Shri Pranab Mukherjee inspecting the Guard of Honour, on his departure from the Abidjan International Airport, Cote d’Ivoire on June 15, 2016.The President of India, Shri Pranab Mukherjee addressed a Business Forum organized by the Centre for Promoting Investments into Côte d'Ivoire and the Confederation of Indian Industry yesterday (June 15, 2016) in Abidjan, Cote d’Ivoire. 

Speaking on the occasion, the President said his visit to Africa was part of a grand strategy towards Africa. The Vice President of India recently visited Morocco and Tunisia. The Prime Minister would be visiting some other countries in Africa shortly. 

The President reminded that India during the 3rd India-Africa Forum Summit held in New Delhi last year announced concessional credit of 10 billion US dollars to African countries over a five year period - along with grant assistance of 600 million U.S. dollars. The Prime Minister of India has initiated number of measures such as Digital India, Make in India, Skill India etc. which open up new areas of cooperation among nations, particularly developing countries. 

The President said India and Cote d’Ivoire are exploring new areas of friendship, cooperation and investment. A regional office of EXIM Bank has been opened in Abidjan which will facilitate the process. 

At the Business Forum event, exchange of two MoUs also took place. The first MoU was between CII and CEPICI to enhance cooperation between the Chambers of Commerce of the two respective countries. The other MoU was between the private companies Tata from India and Sutra from Cote d’Ivoire to reinforce the existing transport fleet by import of 500 buses manufactured by Tata. 

Fed keeps interest rates unchanged, signals fewer future hikes

 The U.S. Federal Reserve kept interest rates unchanged on Wednesday and signaled it still planned to raise rates twice in 2016, though it said slower economic growth would crimp the pace of monetary policy tightening in future years.

The central bank's decision to stick with its 2016 rate path, however, appeared shakier, with six of its 17 policymakers projecting just one increase this year. Only one Fed policymaker had done so when economic forecasts were last issued in March.

A sharp slowdown in U.S. hiring in May had fueled doubts about the strength of the labor market going into the Fed's two-day policy meeting. Fed Chair Janet Yellen acknowledged the need to see clear signs of economic strength before lifting rates.

"We do need to make sure that there's sufficient momentum," Yellen told a news conference.

The Fed also said the economy would grow only 2 percent this year and in 2017, 0.1 percentage point lower than previously forecast for each year.

It also cut its longer-term view of the appropriate federal funds rate, its benchmark lending rate, by a quarter point to 3 percent and indicated it would be less aggressive in raising rates after the end of this year.

Yellen was not clear on whether a rate increase could come at the next policy meeting in late July or whether the central bank would wait for a slew of firmer data as it headed into its September meeting.

Clinton wins final primary, set for poll battle with Trump

 Washington, Jun 15 (PTI) Hillary Clinton today crushed her rival Bernie Sanders in the Democratic party's last presidential primary here in the US capital, setting the stage for an epic race against controversial Republican opponent Donald Trump in November.

Clinton, 68, a former Secretary of State and a former Senator from New York, is the first women to become a presidential candidate of a major political party in US electoral history.

Clinton received 78.9 per cent of the votes while Sanders could garner only 21.1 per cent.

The result heralds the start of an epic race to the White House between Clinton and brash real estate tycoon Trump who celebrated his 70th birthday today.

"We just won Washington, DC ! Grateful to everyone who voted," Clinton tweeted though Sanders is yet to drop out of the race as the two met today.

Clinton secured enough delegates to clinch the Democratic presidential nomination last week, but Sanders declined to drop out and pledged to give every voter a chance to decide between the two candidates.

Sanders privately met Clinton at the Capital Hilton, just after she won the final contest on the Democratic calendar.

The meeting came as the Vermont senator has begun signalling that his campaign is soon to close, though Sanders' aides say he is not expected to immediately endorse Clinton.

"Sanders and Secretary Clinton met in Washington...and had a positive discussion about how best to bring more people into the political process and about the dangerous threat that Donald Trump poses to our nation," said Michael Briggs, Sanders' spokesman, in a statement.

"Sanders congratulated Secretary Clinton on the campaign she has run and said he appreciated her strong commitment to stopping Trump in the general election," it said.

It added that the two discussed a variety of issues where they are seeking common ground: substantially raising minimum wage; real campaign finance reform; making health care universal and accessible and making college affordable and reducing student debt.

"Sanders and Clinton agreed to continue working to develop a progressive agenda that addresses the needs of working families and the middle class and adopting a progressive platform for the Democratic National Convention," the statement said.

Clinton now has 2,800 delegates out of 4,763 delegates.

Sanders has 1,832 delegates in his kitty.

Ending the primary elections on a winning note puts the former first lady on a sound footing ahead of the general election in November and the Democratic Party's convention in Philadelphia in July.

Govt unveils civil aviation policy, scraps 5/20 norm

 New Delhi, Jun 15 (PTI) In a major reform of the aviation sector, government today scrapped the 5/20 overseas flying norm for domestic carriers in its new civil aviation policy while capping fares at Rs 2,500 for one-hour flights and imposing a "small levy" on passengers towards regional connectivity fund.

The new policy which got approval from the Union Cabinet was aimed at ease of doing business for airline operators, and "affordable, convenient and cheaper" travel for fliers at large, Civil Aviation Minister Ashok Gajapathi Raju told the media.

As part of the policy, the ministry will come out with initiatives to develop new airports, separate regulations for helicopters and measures to boost skill development in the aviation sector.

Airlines will also get tax incentives for operating on unserved routes under the regional connectivity scheme.

The government has scrapped the decade-long controversial 5/20 norm and now any domestic airline can fly overseas provided they deploy 20 planes or 20 per cent of their total capacity for domestic operations.

There has been a high decibel debate over the continuance of 5/20 norm--whereby only local airlines having at least five years of operational experience and a fleet of minimum 20 aircraft are allowed to fly overseas.

About the decision to scrap the rule, Union minister Ravi Shankar Prasad said, "A questionable legacy has been thrown into the dustbin." 

Amid concerns over an earlier proposal to auction additional bilateral rights, the government has also decided that a final call on additional rights would be taken by a committee headed by the Cabinet Secretary.

The new measures are expected to benefit about 220 millions passengers in the next five years. .

India lauds the spirit of the citizens of Cote D'ivoire for swiftly pursuing national reconciliation and uniting to look forward to better days, says President

The President of India, Shri Pranab Mukherjee received Key and Parchment of city of Abidjan from Mr. Robert Beugré Mambé, Governor of Abidjan today (June 15, 2016). The Key presentation is a symbolic conferment of Honorary Citizenship of Abidjan. Honorary Citizens are members of Committee of Wise Men of City advising effective functioning of the administration of the City. 

Speaking on the occasion, the President said as the world's largest democratic and secular Republic, India sees the city of Abidjan as a melting pot of diverse ethnicities and religions. He was happy that Abidjan, after suffering extensive damage during the recent civil war, has regained its past splendour. Today, it is, once again, a symbol of national unity and solidarity and has developed into an important commercial hub. India lauds the spirit of the citizens of Cote d'Ivoire for swiftly pursuing national reconciliation and uniting to look forward to better days. 

The President said that he accepted the honorary citizenship bestowed by city of Abidjan in the name of the people of India – and as a valued symbol of the friendship of the people of Cote d’Ivoire and people of India. 

Along with presentation of the keys of the city of Abidjan, President Pranab Mukherjee was conferred the Honorary citizenship of the city of Abidjan. The President was invited to join the community of traditional DOUGBO CHIEFS with the distinction of being for them an advisor. In this context he was offered clothing to match the status. This cladding comprised of a large traditional loincloth with a light outfit underneath matching shoes, a special cap, with a bracelet, traditional necklace, a cane representing his authority and a fly-whisk. Each of these elements plays a specific role in within the function of a traditional Leader. With this novel status, he was conferred a new name: ASSI TO which means the path, the way, the example.