IIP remains in negative zone; contracts 0.7 pc in August

New Delhi, Oct 10 (PTI) Remaining in the negative for the second month in a row, industrial production contracted by 0.7 per cent in August due to slump in manufacturing, mining and capital goods segments.

The factory output, measured by movement in Index of Industrial Production (IIP), had slipped to 8-month low of (-)2.49 (revised) in July on account of declining output in manufacturing and capital goods sectors.

The IIP slump in August is lower than July.

On cumulative basis, the factory output in April-August contracted by 0.3 per cent, compared to growth of 4.1 per cent in the year-ago period.

The official data released today showed the manufacturing sector, which constitutes over 75 per cent of the IIP index, contracted by 0.3 per cent in August as against 6.6 per cent expansion in the same month last year.

The capital goods output registered a steep decline of 22.2 per cent in the month, against a growth rate of 21.3 per cent in last year.

The data revealed that mining activities shrunk by 5.6 as in August this year as against a growth of 4.5 in August 2015.

Power generation remained almost flat (0.1 per cent) in compared to an expansion of 5.6 per cent in the year ago period.

Output of consumer durables registered a growth of 2.3 per cent while growth in non-durables segment was almost flat.

Overall, consumer goods production recorded a growth 1.1 per cent in August compared to 6 per cent a year ago.

In terms of industries, seven out of 22 industry groups in the manufacturing sector have shown negative growth during August year-on-year.

Some important items showing high negative growth during the current month include cable, rubber insulated, sugar machinery, woollen carpets, gems and jewellery, and rice.

Some important items that have registered high positive growth include fruit pulp, air conditioner, instant food mixes, ship building and repairs, scooter and mopeds, stainless/alloy steel and boilers.

Lashker-e-Taiba suffered maximum damage in surgical strikes

Baramulla/New Delhi, Oct 9 (PTI) Pakistan-based terror outfit Lashker-e-Taiba(LeT) suffered the maximum damage in the cross-LoC surgical strikes on terror launch pads carried out by Indian army with assessment reports of radio intercepts indicating that around 20 of its militants were killed.

The assessment reports available from Indian army field units which included radio conversations between various Pakistani formations showed maximum damage was inflicted on LeT, a banned terror group, at Dudniyal launch pad in Pakistan-occupied-Kashmir, opposite to Kupwara sector of North Kashmir, according to sources in the know of details of the recent surgical strikes.

The sources said today that five teams culled out from the army division in the area were tasked to destroy launch pads of terror groups located at Kail also known as Kel and Dudniyal.

In a well calibrated operation, which started on the intervening night of September 28 and 29, Indian army moved across the LoC and smashed four launch pads that were under the guard of a Pakistani post located 700 metres from the LoC.

The sources said that the terrorists were not expecting an action by the Indian army and therefore were taken by surprise.

The terrorists, mainly belonging to the LeT, were seen running towards the Pakistani post when they were killed by the Indian troops, according to the assessment reports.

Ready to give befitting reply to sub-conventional threats:Raha

Hindon Air Base, Oct 8 (PTI) Amid frequent ceasefire violations by Pakistan and terror attacks in Kashmir, IAF chief Arup Raha today asserted that the armed forces are prepared to give a befitting reply to sub-conventional threats and any other challenge facing the country.

The Air Chief Marshal said that the armed forces "are there to deliver and they are doing the job" as he refused to comment on the political slugfest over the cross-LoC surgical strikes on terror camps.

His remarks came on a day when the Indian Air Force celebrated its 84th Foundation Day with a spectacular air display at Air Force Station Hindon in Uttar Pradesh's Ghaziabad district, 30 kms from here.

For the first time, India's indigenous Light Combat Aircraft performed stunts at the air show, amid loud cheers from the audience.

In his customary address at the celebrations, Raha said, "World is in a flux today. Terrorists attacks in Uri and Pathankot show the troubled times we live today."

In his message on official Facebook page of the IAF Indian Air Force, Power to Punish launched today, the Air Force chief said the force is operating some of the most modern weapons and equipments and the air warriors exercise ceaseless vigil of skies.

"We continue to train to take up any threat and are fully prepared to undertake any challenge in most befitting manner," Raha said.

Asked later about increasing threat from Pakistan, he said the armed forces are well prepared to take on any sub- conventional threats.

Sub-conventional threats refers to proxy war that Pakistan indulges in against India through the use of terrorists.

Raha said that terrorists can always get better but the armed forces can neutralise them.

"With each incident, the forces are getting smarter and learning new lessons." he said.

Replying to a query on the political war of words over the surgical strike, Raha said "the armed forces are there to deliver and they are doing the job".

Finance Minister Shri Arun Jaitley chaired the Commonwealth Finance Ministers’ Meeting as well as the Governing Council Meeting of the BRICS Contingent Reserve Arrangement (CRA), both held at IMF Headquarters in Washington D.C. yesterday

In presence of FM, Standard Chartered Bank and Bank of Baroda signed an MoU on Commonwealth Small States Trade Finance Facility to make available up to US $100 million of incremental trade finance over a period of three years; India also pledged £1,022,100 to Commonwealth Fund for technical cooperation.
The Union Finance Minister Shri Arun Jaitley chaired the Commonwealth Finance Ministers’ Meeting held at IMF Headquarters in Washington D.C. yesterday. During the meeting, two important issues- the ‘Economics of Climate Change and Financing Climate Adaptation and Mitigation’; and ‘International Taxation-a Commonwealth Conversation around the Panama Papers’ were discussed and deliberated. In the presence of the Finance Minister, Shri Arun Jaitley, the Standard Chartered Bank and Bank of Baroda signed an MoU on Commonwealth Small States Trade Finance Facility. This finance facility is expected to make available up to US $100 million of incremental trade finance over a period of three years. During the meeting, as part of the voluntary contributions, India also pledged £1,022,100 to Commonwealth Fund for technical cooperation.

The Finance Minister Shri Arun Jaitley also chaired the Governing Council Meeting of the BRICS Contingent Reserve Arrangement (CRA). While addressing the gathering, the FM announced that the CRA is now operational and BRICS member central banks are fully ready to carry out the transactions. Members welcomed the proposal to formalize the setting up of a network of central banks research units that will support the working of BRICS CRA. At the meeting, the Finance Minister also extended invitation to attend BRICS Finance Ministers and Central Bank Governors meeting to be held in Goa later this month.

The Finance Minister attended the G-20 Finance Ministers and Central Bank Governors Working Dinner where discussions centered around the global outlook, key risks for the global and national economies and the proposals made by the Global Forum and the Financial Action Task Force to improve implementation of the beneficial ownership standard.

During the course of the day, the Finance Minister Shri Jaitley also held a number of bilateral meetings with British Secretary of State, US Treasury Secretary, Finance Minister of Bhutan, Finance Minister of Bangladesh, and CEO of Japan Bank for International Cooperation (JBIC). The bilateral trade and investment ties were the focal point of each of these meetings for ensuring greater economic cooperation.

On the side-lines of the Fund Bank meetings, Mr. Shaktikanta Das, Secretary, Department of Economic Affairs (DEA) also participated in a panel discussion organized by Morgan Stanley, to deliberate upon the ‘Cyclical and Structural Progress in the Emerging Market Economies’, wherein Shri Das spoke about the fiscal consolidation and economic reform path being undertaken in India.

The Finance Minister Shri Jaitley is currently on an official tour to Washington D.C. to attend the Annual Meetings of the International Monetary Fund and the World Bank and other associated meetings. He is accompanied by Dr.Urijit Patel, Governor, RBI, Mr. Shaktikanta Das, Secretary,Economic Affairs, Dr. Arvind Subramanian, Chief Economic Advisor and other officials.

Sensex trips 115 pts as profit-booking persists

Mumbai, Oct 6 (PTI) The market continued to feel the ripple effect of lingering Brexit worries and a lacklustre Europe as the Sensex slumped 115 points, dragged down by a rush by investors to book profits in recent outperformers.

Realty, power and banking counters saw much of the losses as investors felt that the recent rally is "overdone".

Globally, it was a mixed picture. While Europe was off to a lower start, the rest of Asia closed higher mirroring an overnight rally in the US on an unexpected services sector pick-up and signs of a revival in oil prices.

"As markets take a pause ahead of earnings season, Brexit fears and shaky European markets continue to send shock waves.

Yesterday's US ADP report lent a positive bias early in the day, but market will wait for Friday data to recalibrate its expectations for a December US rate hike," said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services.

The 30-share index lost 114.77 points, or 0.41 per cent, to close at 28,106.21. The gauge had lost 114 points yesterday taking cues from a subdued Europe over talk of withdrawal of ECB stimulus measures and on a wave of profit-booking.

The 50-share NSE Nifty remained listless too and ended down 34.40 points, or 0.39 per cent, at 8,709.55.

In the Sensex pack, NTPC plunged the most by 2.42 per cent, followed by Cipla 2.30 per cent. Others that ended up in the red include M&M, Power Grid, ICICI Bank, SBI, Infosys and Dr Reddy's, falling by up to 1.90 per cent.

A total of 22 scrips in the Sensex team ended lower. Only 8 advanced.

Realty sector took the maximum hit as it fell 1.48 per cent, followed by power (1.18 per cent), healthcare (0.99 per cent) and IT (0.87 per cent).

Sentiment took a knock after selling picked up towards the fag end of the session, particularly in realty, power, banking and healthcare stocks, as investors rushed to lock in profits.

Broader markets were no better, with the mid-cap and small-cap indices falling 0.56 per cent and 0.48 per cent, respectively.

Foreign portfolio investors (FPIs) purchased shares worth a net Rs 243.00 crore yesterday, showed provisional data.

Key Asian indices such as Hong Kong's Hang Seng and Japan's Nikkei firmed up by up to 0.69 per cent. Chinese market was closed for a public holiday.

Elsewhere, in Europe, UK's FTSE slumped 0.34 per cent, Paris CAC 0.33 per cent and Germany's DAX 0.36 per cent.

Parrikar rules out release of footage of surgical strikes

Agra/New Delhi, Oct 6 (PTI) Defence Minister Manohar Parrikar today ruled out releasing the video footage of the army's surgical strikes across the LoC and questioned the "loyalty" of those who "doubt" the forces.

Describing the cross-LoC operation as "100 per cent perfect surgical strike", he said the borders of the country are secure under the Narendra Modi government.

Parrikar's remarks at a function organised by the BJP in Agra to celebrate the strikes came a day after Prime Minister Modi had reportedly cautioned against hysteria over the army action at a meeting of the cabinet yesterday.

Parrikar warned that one has to remain vigilant against "certain elements who do not owe their loyalty to the country completely".

"No one had doubted bravery of our forces ever, but for the first time recently some people are doubting," he said, maintaining that he would not like to take names.

Referring to a news report by a TV channel in which a Pakistani police officer has purportedly admitted that surgical strikes did happen, Parrikar said, "There is now no more reason to release video or to give any proof." 

Asserting that the operation was 100 per cent successful, he said there was no casualty on the Indian side in the attack and doubted whether even big countries had such a success in their surgical strikes.

At the briefing of the Ministry of External Affairs, its spokesperson Vikas Swarup also brushed aside demands for release of the video footage, which the army was said to have submitted to the government.

"What the government puts out or not is determined solely by national security and will continue to be so. I have nothing more to say," he said.

Swarup added that it is usual to see Pakistan's reaction of denial of terrorism sponsored from its soil against its neighbours.

"Elimination of Osama bin Laden and Mullah Mansoor was met with similar denials. But we all know the truth," he said.

He said the counter-terrorism operation on September 29 (surgical strike) was to neutralise an imminent threat of terrorists ready to be launched from across the LoC.

The Indian Army was given a task which it carried out with surgical precision. The desired result has been obtained.

The intended message has been conveyed, he said.

Meanwhile, Parrikar said that many ex-servicemen have shown willingness to fight on the border if required.

"Some ex-servicemen wrote to me and said that they are ready to fight on the border if need arises. I salute them," said the minister, adding, "our nation carries the heart and courage to carry this task out." 

He also said the forces and citizens will have to be vigilant against "frustrated" terrorists who will try and attack because of the "shame" they have been put to as a result of the surgical strikes.

Surgical strikes:Army hands over clips to govt, debate over its release

New Delhi, Oct 5 (PTI) The Army has handed over to the government video clips of the cross-LoC surgical strikes as per laid down procedure, Union Minister Hansraj Ahir said today, amid a growing chorus that evidence of the operation on terror launch pads in PoK be made public.

Ahir, the Minister of State for Home, said there is a process for putting such issues in perspective which was duly followed by the Army as well as the government.

Separately, Kiren Rijiju, also a MoS for Home, said everyone should have faith in the government and allow the Army to take its own call.

"The laid down procedure has been followed. The DGMO briefed (about the surgical strikes). It was not the Defence Minister nor the Prime Minister and not the Home Minister. It was the DGMO who briefed (the media). That was the right thing to do and they (Army) did it.

"There was a time when written documents were submitted.

Now the times have changed. Now clips are given and the clips have been given," Ahir told reporters.

The statements by Ahir and Rijiju came amid demands that government release the footage of Army's recent surgical strikes on terror launch pads in Pakistan-occupied Kashmir.

"Have faith in the government and leave it to the Army," Rijiju told reporters here when asked about the demand for release of proof of the surgical strikes by the Army.

A political slugfest erupted yesterday over the surgical strikes with Mumbai Congress chief Sanjay Nirupam calling it "fake", provoking stinging criticism from BJP even as his own party said it "totally dissociates" from his remarks.

As the government mulled options on the issue of release of the video footage of the surgical strikes, a debate raged with BJP leader Subramanian Swamy favouring putting out an edited version of the video on the operation while most experts spoke against it.

Rejecting the demand, the BJP attacked some Congress leaders and AAP chief Arvind Kejriwal for raising questions over the strikes and accused them of giving a handle to Pakistan to advance its false propaganda.

The Congress, on its part, insisted that it never questioned the authenticity of the strikes but steered clear of the demand, including from within its own ranks, for the release of evidence, saying it would give appropriate advise in the best interest of national security if consulted by the government.

Swamy, a Rajya Sabha member, said anybody questioning the operation should prove prima facie evidence to support his allegation but added that an video should be released following a newspaper report today that gave details of the operation.

"I think they should edit the video of the logistics value of it and show the other part, showing explosions, the dead body... they have got in the video. So all these parts can be released," he said.

Former army chief Gen V P Malik slammed those questioning the credibility of the strikes saying, "The video should not be released just because some stupid people have sought so." 

He told PTI it was "utter nonsense" that people are asking the army to prove the operation and wondered what is wrong with the political class.

India slams Pak for blocking Indo-Afghan trade

Brussels, Oct 5 (PTI) Hitting out at Pakistan for blocking Indo-Afghan trade via Attari border for "political reasons", India today said nations cannot become "walls" aborting trade and culture that is as old as written history.

Asserting that the "fangs of terrorism" recognise no borders, Minister of State for External Affairs M J Akbar said, "peace is essential to development; terrorism is anathema to development." 

Addressing a meeting here on 'Regional Integration and Prosperity' at the Brussels Conference on Afghanistan, Akbar said, "The scale of terrorism and violence unleashed against Afghanistan is of a magnitude that simply does not allow for easy project implementation, efficient delivery of assistance or the rapid inflow of investments into an economy that has huge resources and obvious potential".

He stated that the international community "must ensure security" if it wants stability and economic development in Afghanistan. "We cannot underline 'must' often enough. We abandon this duty at our own risk." 

India has offered a special facility at the Attari border for Afghan products coming to India via Pakistan, he said at the meet also attended by Afghan President Ashraf Ghani.

"Unfortunately, this access has been blocked for political reasons by Pakistan. Nations cannot become walls aborting a trade and culture that is as old as written history, and as powerful as the lore etched in common memory," he said amid heightened Indo-Pak tensions.

Akbar said, however, India will continue to work with Afghanistan for assured and reliable access for Afghanistan's products to India's markets through land, sea and air.

"The full utilisation of Afghanistan's transit rights as a member of WTO will enable greater prosperity. Those who deny transit hurt Afghanistan's economy, with negative resonance for our larger region," Akbar said in an apparent reference to Pakistan.

Talking about India's support for increasing connectivity with Afghanistan, Akbar said, "An exciting and innovative future is taking shape through the recent trilateral India- Iran-Afghanistan agreement in Tehran in May 2016, which makes Chahbahar into a hub for immense economic opportunity".

Asserting that New Delhi's commitment to Afghanistan is abiding, he said it is India's cherished desire to work with the people and government of "one of our closest friends" towards peace, stability and progress in Afghanistan and in the wider region.

India has dedicated its efforts and resources into bilateral cooperation with Afghanistan, with improvements of internal capabilities and provision of year-round regional connectivity, Akbar said.

"We have already completed significant development projects including scientific water management through dams and infrastructure projects like highways, worth over USD 2 billion. We have recently committed to USD 1 billion more.

This is the essence of Prime Minister Narendra Modi's 'neighbourhood first' policy," Akbar said.

International Buddhist Conclave-2016 opens its sessions in Sarnath Uttar Pradesh

The International Buddhist Conclave-2016, which was officially inaugurated on 02^nd October, 2016 in New Delhi, opened its sessions in Sarnath, Uttar Pradesh, the heartland of Buddhist pilgrimage today.

The opening session was addressed by Dr. Mahesh Sharma, Minister of State (Independent Charge) for Tourism & Culture. Shri Om Prakash, Tourism Minister, Govt. of Uttar Pradesh, Tourism Secretary Shri Vinod Zutshi, Shri Navneet Sehgal, Principal Secretary, UP Tourism and Commissioner Varanasi.  H.E. Assoc. Professor Chavanee Tongroach, Vice Minister of Tourism & Sports, Govt. of the Kingdom of Thailand, Mr. Macio Favilla, Executive Director, World Tourism Organization (UNWTO) and Mayor of Varanasi amongst others attended the opening session of the conclave. 

Delivering his opening remarks, Dr. Mahesh Sharma said, “India is the seat of Spiritual Tourism and that Government of India & Government of Uttar Pradesh are committed to develop the Buddhist Circuits. He also stated that Sarnath will be made the hub of Buddhist Tourism in India and efforts will be made to bring in Air, Rail and Road connections from Sarnath to various Buddhist sites in India”. 

Dr. Sharma further outlined the Ministry of Tourism’s investment in tourism infrastructure for development of Buddhist Circuit in India under its Swadesh Darshan Scheme and stated that an amount of Rs. 132.17 crore have been sanctioned till date. He further added that for Uttar Pradesh, the Ministry of Tourism is in the verge of sanctioning an amount of Rs.99.97 crore this year for infrastructure development of Buddhist Circuit covering Saravasti, Kapilvastu, Kushinagar.

RBI surprises with rate cut; home, auto loans to cost less

New Delhi, Oct 4 (PTI) Home, auto and corporate loans may get cheaper as the new RBI Governor Urjit Patel-led panel today marked its debut policy review with a surprise 0.25 per cent rate cut -- lowering borrowing cost to 6-year low, which the industry lauded as a pre-Diwali gift.

In independent India's first collective interest rate setting decision, the 6-member Monetary Policy Committee, which has three members nominated by the government and the rest from the Reserve Bank, lowered repo rate to 6.25 per cent from 6.50 per cent.

First in six months, today's cut came amidst big clamour for easing rates especially after the departure of former Governor Raghuram Rajan, who was often accused by some sections, including those from the ruling BJP, of stifling growth by keeping rates too high.

The repo rate, at which RBI lends to banks, was 6.25 per cent in November 2010. It peaked to 8.5 per cent in October 2011.

Within minutes of the RBI policy announcement, the government welcomed the rate cut saying it will boost liquidity and help achieve 8 per cent GDP growth.

"The Government has announced several measures to cool food inflation pressures, especially with regard to pulses.

These measures should help in moderating the momentum of food inflation in the months ahead. This has opened up space for policy action, as indicated in the third bi-monthly monetary policy statement," Patel said in the fourth bi-monthly monetary policy review for 2016-17.

RBI's current rate cut along with reduction in small savings rates by the government will encourage banks to pass on the benefit to the borrowers, he said.

"The easy liquidity conditions engendered by the Reserve Bank s operations should also enable the smooth transmission of the policy action through various market segments," he said.

Following the rate cut, the BSE benchmark Sensex closed up by 91 points at 28,334.55.

Finance Secretary Ashok Lavasa said the RBI policy will boost liquidity in the system and both the RBI and government are in sync with the inflation target.

"On the whole, this is a decision which will go down well with all sections of the economy," Lavasa said.

When asked if banks will pass on rate cut, he said: "It depends on the banks. Banks also decides based on market sentiment".

Welcoming the rate cut as a 'pre-Diwali' gift, industry players hoped that banks would pass on the benefits and boost consumer sentiments in the ongoing festive season.