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Mar 31, 2010

India & World

Content:
  1. Manmohan Singh's three-day visit to Saudi Arabia
  2. 3,500 pilgrims from India take part in Kachchatheevu festival

Brief Description:

Manmohan Singh's three-day visit to Saudi Arabia

  1. India signs extradition treaty and a few other agreements with Saudi Arabia
    • India and Saudi Arabia have vowed to jointly combat terrorism and money laundering as they signed an extradition treaty and several agreements to raise their cooperation to a strategic partnership covering security, economic, energy and defence areas. The extradition treaty enhances existing security cooperation and will help in apprehending wanted persons in each other's country.
    • Prime Minister Manmohan Singh and Saudi King Abdullah signed the Riyadh Declaration outlining the contours of a new era of strategic partnership between the two countries. Both sides emphasised the importance of strengthening the strategic energy partnership in line with the Delhi Declaration of 2006, including meeting India's increasing requirement of crude oil supplies and identifying areas of new and renewable energy.
    • India and Saudi Arabia also signed four other agreements relating to transfer of sentenced persons, cultural cooperation, memorandum of understanding between Indian Space Research Organisation and King Abdulaziz City for Science and Technology for cooperation in peaceful use of outer space and joint research and information technology.
  2. Analysis
    • Prime Minister Manmohan Singh's three-day visit to Saudi Arabia, though long overdue, ended on a high note. As a result of his discussions with the top leadership here for the past three days, both India and Saudi Arabia have agreed to upgrade their relationship to "strategic partnership.The Prime Minister said the strategic partnership would cover issues relating to security, cooperation in dealing with terrorism and arrangements for information and intelligence sharing.
    • Dr. Singh and King Abdullah bin Abdul-Aziz covered substantial ground and managed to pin down specific areas for further collaboration. Determined to go beyond their traditional buyer-seller energy relationship, the two leaders opened up a much wider common agenda, including such exciting areas as outer space, renewable energy, and advanced computing.
    • Four years after King Abdullah made a pioneering visit to India, the vision of a comprehensive political, security, and economic relationship, anchored in the Riyadh Declaration signed during Dr. Singh's visit, now stands firmly established. The Riyadh Declaration, which came four years after the 2006 Delhi Declaration, said the two leaders noted that tolerance, religious harmony and brotherhood, irrespective of faith or ethnic background, were part of the principles and values of both countries.
    • The Prime Minister's visit to Saudi Arabia, which is not only the world's largest oil producer but also a regional heavyweight, is also likely to leave its stabilising imprint on other areas in West Asia. These include the neighbouring oil rich countries of the Gulf Cooperation Council (GCC), which are encountering serious security challenges.
    • Significantly, the visit has added a prominent security dimension to bilateral ties. Saudi Arabia and India fully appreciate that they are common victims of terrorism. They are both targeted by the forces of global jihad, entrenched in the rugged mountain ranges on either side of the Afghanistan-Pakistan border. If Mumbai was India's terror nightmare, Riyadh too faced a string of devastating bombings in 2003, when al Qaeda operatives blew up prominent residential compounds. Saudi Arabia continues to remain in the cross-hairs of the al Qaeda in the Arabian Peninsula (AQAP), which operates out of neighbouring Yemen.
    • The signing of an extradition treaty during Dr. Singh's visit therefore needs to be welcomed as a major breakthrough. From an Indian perspective, there is now hope that outfits like the Lashkar-e-Taiba (LeT), whose operatives reportedly visit Saudi Arabia for various purposes, will be captured by Saudi authorities and sent to face the law in India.
    • Further, the shared focus on safeguarding the "sovereignty and independence" of Afghanistan must be welcomed.
    • In a visit that otherwise went so well, New Delhi's hardly concealed interest in seeking Riyadh's "good offices" to moderate Pakistan's behaviour has struck a jarring note. The suggestion appeared quite unnecessary as serious discussions on the Pakistan situation are expected to be integral to the fast-developing India-Saudi security relationship. By overtly drawing Saudi Arabia into the India-Pakistan equation, the United Progressive Alliance government has needlessly opened itself to the charge of diluting the principle of bilateralism that has, by virtue of a national consensus, governed New Delhi's engagement with Islamabad.(-ve)
    • the Shura Council – Saudi parliament
  3. Controversy -BJP wants Manmohan, Tharoor to explain remarks on Saudi Arabia
    • The latest controversy over Shashi Tharoor's remarks,the junior minister's reference to Saudi Arabia being a "valuable interlocutor for [India]" as assigning Riyadh a mediatory role between New Delhi and Islamabad.
    • 'Interlocutor' means a person or entity or country involved in a conversation. And the Minister of State for External Affairs was clearly talking about the value of Saudi Arabia as a dialogue partner for India on the subject of Pakistan.
    • The Bharatiya Janata Party indicated that it would ask Prime Minister Manmohan Singh and his Cabinet colleague Shashi Tharoor to "explain" what they meant by saying India should talk to Saudi Arabia about Pakistan-inspired terrorism.
    • Was this the start of the end of bilateralism in India-Pakistan dialogue?
  4. Riyadh 'worried' about Pakistan situation
    • While terming Pakistan a "friendly country," Saudi Arabia on Sunday said it was "worried" about the prevailing situation and spread of extremism there and appealed to political leaders in Pakistan to unite and meet the challenges.
CAG Weekly
(Current Affairs & GK)
By Om Prakash (goldy sir)

read more © 2010 www.upscportal.com

Mar 3, 2010

Budget Highlights

-
Minimum Alternate Tax up from 15% to 18% on book profits

- Fiscal deficit pegged at 5.5% of GDP

- I-T dept to notify simple two-page Saral 2 form for individuals for current year

- Personal income tax: Nil for income up to Rs 1.6 lakh, 10% for income bet Rs 1.6 -5 lakh

- Personal income tax: Income between 5-8 lakh: Tax at 20%

- Personal income tax: Above Rs 8 lakh, tax at 30%

- Professionals with Rs 15 lakh income need account audit

- Partial rollback of excise duty relief on large cars

- To provide subsidy in cash instead of bonds for fertiliser, oil

- Customs duty on gold, platinum imports raised to Rs 300 from Rs 200

- Service tax to GDP ratio is 1%

- Net revenue gain of Rs 43,500 cr from customs, excise proposal

- Direct tax proposals result in Rs 26,000 cr loss; indirect tax yield Rs 45,000 cr gain

- News agencies exempt from service tax

- Some services hitherto not taxed would be brought under the purview of new Service Tax

- Service Tax rates unchanged at 10%

- No import duty on some equipment in road projects

- Cut in duty for photovoltaic units

- External commercial borrowing will be available for food storage industries

- Clean energy cess on domestic, imported coal

- Peak customs duty remains unchanged at 10%

- Central excise on LED lights halved to 4%

- Agricultural seeds exempt from service tax

- Full excise cut on electric cars

- For solar mission, solar power generating units rates are to be reduced by 5%

- Cut on personal tax rates means saving of Rs 50,000 for income up to Rs 8 lakh

- Partial rollback of excise duty relief on large cars

- Peak excise duty hiked from 8% to 10%

- Market borrowing were up to 3,45,000 cr. Enough to meet credit need of private sector

- Duties on smoking and non-smoking tobacco products up

- Excise duty on large cars, SUVs, multi utility vehicles hiked

- Petroleum products: basic excise duty of 5% crude, 7.5% on diesel & petrol; 10% on other products

- Structural changes in excise duties of tobacco, propose to extend excise duty

- Revenue loss of Rs 26,000 cr on a/c of direct tax proposals

- Surcharge for companies reduced to 7.5%

- Due to direct taxes, result in a revenue loss of Rs 26,000 cr

- Threshold limit for TDS applicability to be rationalised

- Extended scope of presumptive taxes up to Rs 40 lac

- Real estate sector now gets 5 years for completion instead of 4 years before

- To boost tourism investment, offers investment linked tax deductions

- Addl Rs20,000 deduction available for investment in infra bonds

- Reduces current surcharge of 10% on domestic comp to 7.5%

- Automation of excise, service tax already rolled out

- FY11 market borrowing pegged at Rs 3.45 lakh cr

- Govt to set up apex level Financial Stability and Development Council

- FY13 fiscal deficit seen at 4.1%

- Fiscal deficit seen at 4.8% in FY12

- Allocates Rs 1,900 cr for UID project

- Planned expenditure up 15% over 2009-10

- Increase in non-planned exp up only 6%

- Total exp proposed up 8.7% over 2009-10, to Rs 11 lakh cr

- Taskforce to counter problems in Maoist affected areas. Adequate funds will be allocated

- Allocation to Defence over Rs 147,000 crore

- Technology advisory group to be set up under Nandan Nilekani

- Smart card extended to NREGA

- RBI to dole out more banking licences: Pranab

- Sign language training centre for hearing impaired

- Rs 4,500 cr for program of social justice, sr citizens, backward classes, handicapped

- Rs 100 cr allocated for women farmers

- Exclusive skill dev prog in textile and garment sector

- Rs 48,000 cr for Bharat Nirman plan

- Asks state govt to contribute for social security to workers in unorganised sector

- Infra stocks spurt on higher allocation

- To allocate Rs 22,300 cr to Health Ministry

- Allocates Rs 100 cr for new pension scheme, to benefit 100,000 low income citizens

- Khadi institutes get Rs 400 cr

- GOI sign $150 mn deal with ADB for implementing Khadi programme

- Rajiv Awas Yojana now ready' gets Rs 1,270 cr for FY11

- Rs 7300cr in 2011 for backward sections

- GST, Direct Taxes Code from April 2011

- Housing loan: 1% interest subvention scheme extended, allocation Rs 700 cr

- Urban dev allocation up more than 75% to Rs 5400 cr

- Allocates Rs 1,200 cr for drought mitigation

- Indira Awas Yojana: allocation up by Rs 10,000 cr

- NMDC, SVJN stake sale to fetch Rs 25,000 cr in FY10

- NREGS gets Rs 40,100 cr in FY11

- Rs66,1000 cr allocateds for rural development in FY11

- IIFCL disbursements at Rs 9000 cr by March 2010

- School education outlay for FY11 at Rs 31,000 cr

- States to get Rs 3,675 cr for primary education at rural level

- To set up coal regulatory authority

- Spending on social sector at Rs 137,000 cr

- Rs 25,000 cr allocated to develop rural infrastructure

- Growth to exceed 7.2% in this fiscal

- Final FY10 GDP figure maybe higher than estimate of 7.2%

- To set up National clean energy fund

- Plan outlay for Renewable energy ministry up 61%

- Power allocation doubles to Rs 5,100 cr

- To set up 5 more mega food park projects

- Allocation for road tansport Rs 19,894 cr

- Farm loan repayment extended by 6 months

- ECB to be available for cold storage

- To provide Rs 400 cr to boost farm output in eastern India

- Timely repayment of crop loans: subvention raised from 1% to 2%

- Govt is committed to growth of SEZ to promote exports

- Proposes allocation of Rs 200 cr for climate-resilient agricultural program

- Extend 2% interest subvention for exports for another year

- FY11 capital for PSU banks at Rs 16,500 cr

- Extends interest subvention of 2% for handloom, handicrafts for 1 more yr

- Propose new bill to address problems in corpoate sectors

- Will augment assistance to RRBs to strengthen rural sector

- RBI may give license to some more private sector players and NBFCs

- Rs 1,900 cr addl capital in four PSU banks

- Ownership and control clearly defined in FDI policy

- To discuss Kirit Parikh report in due course

- Subsidy for fertiliser sector to increase farm productivity

- Govt to raise Rs 25,000 cr this year to meet cap expenditure requirements

- GST and DTC can be introduced in April 2011

- Steps to reduce public debt, paper to be presented in 6 months

- Signs of food inflation going to non-food items

- Need to review stimulus, move to fiscal consolidation

- Double digit food inflation in 2009

- Export figures encouraging; pvt investments can be expected

- Concerned over emergence of double digit food inflation

- 18.9% growth rate in manufacturing sector in 2009

- Final figure may be higher if earnings in last quarters are strong

- Need to make recovery

- Growth slows down to 6% in Q3 vs 7.9% in Q2 this fiscal

- Focus shifts to non-governmental actors

- 3rd challenge: relates to problems in government system

- 2nd challnge: harden economic growth to make dev more inclusive

- 1st challenge: quickly revert to higher GDP growth path of 9%, cross double digit growth

- Economy is in a better position than a year ago, however, challenges remain

- Uncertainity was there on account of delay in monsoon, concerns about production and food prices

- Pranab Mukherjee starts announcing Union Budget

- Bond yields steady ahead of Budget


Source: BS News

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