Home » Posts tagged 'india' (Page 5)

Tag Archives: india

India’s Farmers Plan Mass March to the Nation’s Parliament as Agrarian Crisis Reaches “Civilization Proportions”

October 31, 2018

India’s Farmers Plan Mass March to the Nation’s Parliament as Agrarian Crisis Reaches “Civilization Proportions”

With over 800 million people, rural India is arguably the most interesting and complex place on the planet. And yet it is also one of the most neglected in terms of both investment and media coverage. Veteran journalist and founder of the People’s Archive of Rural India P. Sainath argues that the majority of Indians do not count to the nation’s media, which renders up to 75 percent of the population ‘extinct’.

According to the Centre for Media Studies in Delhi, the five-year average of agriculture reporting in an Indian national daily newspaper equals 0.61 percent of news coverage, while village-level stories account for 0.17 percent. For much of the media, whether print or TV, celebrity, IT, movements on the stock exchange and the daily concerns of elite and urban middle class dwellers are what count.

Unlike the corporate media, the digital journalism platform the People’s Archive of Rural India has not only documented the complexity and beauty of rural India but also its hardships and the all too often heartbreaking personal stories that describe the impacts of government policies which have devastated lives, livelihoods and communities.

Rural India is plagued by farmer suicides, child malnourishment, growing unemployment, increased informalisation, indebtedness and an overall collapse of agriculture. Those involved in farming and related activities are being driven to migrate to cities to become cycle rickshaw drivers, domestic servants, daily wage labourers and suchlike.

Hundreds of thousands of farmers in India have taken their lives since 1997 and many more are experiencing economic distress or have left farming as a result of debt, a shift to (GM) cash crops and economic liberalisation. According to this report, the number of cultivators in India declined from 166 million to 146 million between 2004 and 2011. Some 6,700 left farming each day. Between 2015 and 2022 the number of cultivators is likely to decrease to around 127 million.

…click on the above link to read the rest of the article…

India Yet To Figure Out Way To Pay for Iranian Oil Imports

October 15, 2018

India Yet To Figure Out Way To Pay for Iranian Oil Imports

India hasn’t worked out yet a payment system for continued purchases of crude oil from Iran, Subhash Chandra Garg, economic affairs secretary at India’s finance ministry, said on Friday.

India’s Oil Minister Dharmendra Pradhan has conveyed the message that his country would continue to buy Iranian oil to some extent, Garg told CNBC TV18 news channel, as quoted by Reuters.

Recent reports have it that India has discussed ditching the U.S. dollar in its trading of oil with Russia, Venezuela, and Iran, instead settling the trade either in Indian rupees or under a barter agreement.

India is Iran’s second-largest single oil customer after China and was expected to cut back on Iranian oil purchases, but it is unlikely to cut off completely the cheap Iranian oil that is suitable for its refineries.

India wants to keep importing oil from Iran, because Tehran offers some discounts and incentives for Indian buyers at a time when the Indian government is struggling with higher oil prices and a weakening local currency that additionally weighs on its oil import bill.

But the United States continues to insist that it expects Iranian oil buyers to bring their purchases down to zero.

Earlier this week, Indian officials said that they hoped India could secure a waiver from the United States, because it has significantly reduced purchases of Iranian oil. Late last week, the United States hinted that it was at least considering waivers.

Meanwhile, Special Representative for Iran Brian Hook is currently touring India and Europe to discuss U.S. foreign policy toward Iran, the U.S. Department of State said on Thursday.

Special Representative Hook and Assistant Secretary of State for Energy Resources Francis R. Fannon are will be meeting with Indian government counterparts for consultations.

“During this trip, Special Representative Hook will engage our allies and partners on our shared need to counter the entirety of the Iranian regime’s destructive behavior in the Middle East, and in their own neighborhoods,” the State Department said.

Food, Justice, Violence and Capitalism

October 9, 2018

Food, Justice, Violence and Capitalism

In 2015, India’s internal intelligence agency wrote a report that depicted various campaigners and groups as working against the national interest. The report singled out environmental activists and NGOs that had been protesting against state-corporate policies. Those largely undemocratic and unconstitutional policies were endangering rivers, forests and local ecologies, destroying and oppressing marginalised communities, entrenching the corporatisation of agriculture and usurping land rights.

These issues are not unique to India. Resistance against similar practices and injustices is happening across the world. And for their efforts, campaigners are being abused, incarcerated and murdered. Whether people are campaigning for the land rights of tribal communities in India or for the rights of peasant farmers in Latin America or are campaigning against the fracking industry in the UK or against pipelines in the US, there is a common thread: non-violent protest to help bring about a more just and environmentally sustainable world.

What is ultimately fuelling the push towards the relentless plunder of land, peoples and the environment is a strident globalised capitalism, euphemistically termed ‘globalisation’, which is underpinned by increasing state surveillance, paramilitary-type law enforcement and a US-backed push towards militarism.

The deregulation of international capital movement (financial liberalisation) effectively turned the world into a free-for-all for global capital. The ramping up of this militarism comes at the back end of a deregulating/pro-privatising neoliberal agenda that has sacked public budgets, depressed wages, expanded credit to consumers and to governments (to sustain spending and consumption) and unbridled financial speculation. In effect, spending on war is in part a desperate attempt to boost a stagnant US economy.

…click on the above link to read the rest of the article…

India Defies US, Signs $5.4BN Arms Deal With Russia Amid Promises Of Closer Ties

October 6, 2018

India Defies US, Signs $5.4BN Arms Deal With Russia Amid Promises Of Closer Ties

In what amounts to Russia’s latest act of defiance against the US and its Western allies, and a sign that India is slowly moving away from the US sphere of influence, New Delhi has signed a $5.4 billion deal for the delivery of five S-400 weapons systems, one of Russia’s most advanced anti-aircraft weapons, RT reported. The deal risks provoking more sanctions against Russia from the US. The arms deal was finalized at a summit involving Indian Prime Minister Narendra Modi and Russian President Vladimir Putin in New Delhi.

Because of the purchase, India now risks being sanctioned under Washington’s Countering America’s Adversaries Through Sanctions Act, which prohibits the purchase of arms from Russia. After his meeting with Modi, Putin said during a joint press conference that Russia would work with India to boost bilateral cooperation in the UN, Shanghai Cooperation Organization and the G20. Putin added that the two countries would coordinate counter-terrorism efforts, and the two leaders also signed a deal on space cooperation, with Modi saying that he hoped Russia would help India send astronauts into space by 2022.

The two countries also plan to cooperate on counter-terrorism efforts in Syria, as well as the status of the Iran nuclear deal. Russia has always “stood shoulder-to-shoulder with India in the energy sector and our goals,” Putin said.

The arms deal was signed during a period of increased trade between Russian and India, with total trade exceeding $9 billion last year. That figure is expected to rise as the two countries hope to encourage cross-border investment. By 2030, Putin said, he hopes to increase trade to $30 billion and investments by $15 billion.

…click on the above link to read the rest of the article…

In Shock Move, India Nationalizes Giant Shadow Bank At Center Of Market Rout

October 1, 2018

In Shock Move, India Nationalizes Giant Shadow Bank At Center Of Market Rout

One week after we reported that India’s NPL crisis finally erupted after IL&FS, a major shadow bank at the heart of India’s economy defaulted in one day on three debt payments, India’s government announced on Monday that it would immediately seize control of a shadow lender whose defaults have caused widespread upheaval at mutual funds.

The nationalization is virtually unprecedented: the nation’s corporate affairs ministry has sought to take control of a company on just two prior occasions, and only followed through once, with Satyam Computer Services in 2009. A bid by the government to take control of debt-laden realty firm Unitech in late 2017 was stalled by the Supreme Court after the move was challenged.

According to Bloomberg, officials ousted Infrastructure Leasing & Financial Services Ltd.’s entire board and a new six-member board will meet before Oct. 8, the National Company Law Tribunal said on Monday. India’s richest banker Uday Kotak and ICICI Bank Chairman G.C. Chaturvedi will be part of the proposed board, which will elect a chairperson themselves.

An AAA-rated entity for decades, over the last few years IL&FS, saw an increase in its debt levels. The situation worsened in the last two months with both the parent company and its subsidiaries defaulting on a number of repayment obligations. Banks and insurance companies have the largest exposure to IL&FS.

For India to resort to such a dramatic move, the panic must have been palpable: the nationalization, which unfolded within the span of a hectic day in Mumbai, underscores the government’s concern about IL&FS’s defaults spreading to other lenders in the world’s fastest-growing major economy.

…click on the above link to read the rest of the article…

“Historic Judgment” As India’s Nationwide Biometric ID Database Ruled Constitutional

September 28, 2018

“Historic Judgment” As India’s Nationwide Biometric ID Database Ruled Constitutional

As the march toward a cashless (and privacy-less) society accelerates forward, a new high watermark has been reached.

India first introduced its concept for a nationwide biometric ID database more than 7 years ago, which they touted as a necessary “social welfare” program to assist the millions of India’s unbanked, streamline welfare distribution and reduce corruption. At the time, Brandon Turbeville reported on the plan for Activist Post.

Yet, although the justification for the billion person database is the increased ability to accurately disperse social welfare benefits, it will not be just the Indian government’s social welfare programs that have access to and utilize the UIDAI. Indeed, even before the program has been completed, major banks, state/local governments, and other institutions are planning to use the UIDAI for identification verification purposes and, of course, payment and accessibility.

As Aaron Saenz of the Singularity Hub writes:

Yet the UID is going to be used for much more than social welfare programs. The UIDAI is in discussion with many institutions (banks, local/state governments, etc.) to allow them to use the UID as a means of identity verification. These institutions will pay the UIDAI some fee to cover costs and generate revenue. There seems to be little doubt that once it is established, the UID will become a preferred method (if not the preferred method) of identification in India.

Saenz also sees the eventuality of the UIDAI program becoming a means of payment and accessibility. He continues:

Ultimately, I wouldn’t be surprised if the UID, with its biometric data, could be used as a means of payment (when linked to a bank account), or as an access key to homes and cars. Purchase a meal with your fingerprint and unlock your door with the twinkle in your eye. Similar results could be expected in other nations that adopted biometric identification systems.

…click on the above link to read the rest of the article…

India & the Emerging Market Crisis

September 27, 2018

India & the Emerging Market Crisis

India’s financial markets are in the throes of this Emerging Market crisis. The Mumbai-based Infrastructure Leasing & Financial Services (IL&FS) is an over 30-year-old infrastructure lending giant that claims to have helped develop and finance projects worth $25 billion in Asia’s fastest-growing economy. The company recently defaulted on debt payments because it ran out of cash. This is illustrating what we have been warning about. As interest rates rise and the dollar, the first casualty will be the Emerging Markets (EM). Because interest rates were driven to absurdly low levels in Europe and the USA, those who need yield ran off to the EM field.

Central Banks cannot manage the economies anymore. We live in a porous global economy. The Fed buying back 30-years bonds to lower real estate loan yields was absurd. The false assumption was that only American owned such debt. But the dollar is the reserve currency. That meant that more than 40% of such debt resided outside the USA. Central Banks can no longer manipulate the economy using the demand side economic models. They drove capital rushing into the EM sector desperate for yield – especially state operated pension funds.

This is why we have a serious debt crisis on our hands. The greenback is STILL going to press higher against the rupee. Just look at the pattern. This is NOT an isolated high. We are looking at a significant rally still on the horizon for the dollar.

India’s NPL Crisis Erupts: A Major Shadow Bank Defaults On Three Debt Payments

September 23, 2018

India’s NPL Crisis Erupts: A Major Shadow Bank Defaults On Three Debt Payments

IL&FS Investment Managers, a unit of India’s Infrastructure Leasing & Financial Services (IL&FS) – an Indian infrastructure development and finance company and one of the nation’s largest “shadow banks” – which announced three debt defaults on Friday, said on Saturday morning its Managing Director Ramesh Bawa had resigned as managing director and chief executive officer as a management exodus begins. The company’s independent directors – Renu Challu, Surinder Singh Kohli, Shubhalakshmi Panse and Uday Ved – had also submitted their resignation papers.

The company first defaulted on commercial paper, then on short-term borrowings known as inter-corporate deposits according to Bloomberg. It has also failed to pay Rs 4.5 billion ($62 million) in ICDs to government-backed lender Small Industries Development Bank of India.

As we noted on Friday, IL&FS revealed a series of three defaults on its non-convertible debt obligations and inter-corporate deposits.

With the meltdown of IL&FS in motion, another unit, IL&FS Transportation Networks, reported that its chief financial officer, Dilip Bhatia, was demoted to chief strategy officer, for the goal of divestment of assets. The regulatory filing said Bhatia would relinquish his responsibilities as CFO with immediate effect, and the company will search for a replacement.

The shockwaves spread further on Friday, when IL&FS Financial Services, another unit of the IL&FS group, said its managing director and chief executive had resigned.

Why is this important? IL&FS’s outstanding debentures and commercial paper account for 1% and 2% respectively, of India’s domestic corporate debt market as of March 31, according to Moody, while its bank loans made up about 0.5% to 0.7% of the entire banking system loans.

And while bad loans in the Italian banking system have received a ton of attention from investors, India is not far behind and India’s economic recovery is built on an even shakier foundation.

…click on the above link to read the rest of the article…

“Volatility Erupts”: India Rocked By Biggest Market Plunge In 4 Years

September 21, 2018

“Volatility Erupts”: India Rocked By Biggest Market Plunge In 4 Years

Update: IL&FS has confirmed it is unable to service its obligations in respect of interest payment of the Non-Convertible Debentures, which was due on September 21, 2018.

The fear of contagion has spread across the banking sector and up into India’s sovereign risk, now at 18-month highs…

* * *

Turmoil broke out in a relatively stable corner of the global market overnight, when “volatility erupted” in India’s stock market on Friday, after plunges in Yes Bank and Dewan Housing Finance set off an exodus from financial shares and slammed the broader stock market. Yes Bank sank to the lowest level since 2016, losing 30% of its value in one day, after India’s banking regulator refused to extend the tenure of the lender’s chief executive officer,” while Dewan tumbled 43% for its steepest loss on record, Bloomberg reported.

“IL&FS’ problem and Yes Bank’s issues are impacting every financial stock in the market,” A K Prabhakar, head of research at IDBI Capital Market Services Ltd., said by phone. “Leveraged positions are being reduced.”

As a result, the benchmark S&P BSE Sensex plunged, swinging from a 1% gain to a drop of as much as 3% – its wildest intraday move in more than four years – before closing with a 0.8% loss.

Friday’s declines showed that even India is becoming increasingly sensitive to the recent shockwave across the EM space, and that investors remain jittery about Indian financial shares after the recent default by Infrastructure Leasing & Financial Services shook confidence in the sector.

The IL&FS downgrade and default may have nudged investors to avoid potential collateral damage in other financial stocks.

“Downgrades are a serious possibility” for non-bank financial companies, Aneesh Srivastava of IDBI Federal Life Insurance Co. said.

…click on the above link to read the rest of the article…

Major Currencies All Over The World Are In “Complete Meltdown” As The $63 Trillion EM Debt Bubble Implodes

September 5, 2018

Major Currencies All Over The World Are In “Complete Meltdown” As The $63 Trillion EM Debt Bubble Implodes

The wait for the next global financial crisis is over. Major currencies all over the planet are in a “death spiral”, many global stock markets are crashing, and economic activity is beginning to decline at a stunning rate in quite a few nations. Over the past 16 years, the emerging market debt bubble has grown from 9 trillion dollars to 63 trillion dollars. Yes, you read that correctly. Now that emerging market debt bubble is imploding, and as a result emerging market currencies all over the globe are in “complete meltdown”. In fact, at least 20 different currencies have fallen by double-digit percentages against the U.S. dollar so far in 2018, and nobody is quite sure what is going to happen next.

You may be tempted to think that this must be a good thing for the United States since the value of the U.S. dollar has been rising, but it is not.

During the “boom years”, trillions of dollars were borrowed by emerging market economies, and a high percentage of those loans were denominated in U.S. dollars. Now that their currencies are crashing, it is going to take much more local currency to service those U.S.-denominated debts, and a whole lot of them are going to start going bad.

That means that many financial institutions here in the United States and over in Europe are going to end up holding enormous piles of bad debt, and the losses could potentially be astronomical.

The dominoes are starting to fall, and even the mainstream media is admitting that what we are facing is really bad. For example, the following comes from a CNBC article entitled “The emerging market crisis is back. And this time it’s serious”…

…click on the above link to read the rest of the article…

Economic Doom Returns: Emerging Market Currencies Collapse To Record Lows As Global Financial Chaos Accelerates

September 1, 2018

Economic Doom Returns: Emerging Market Currencies Collapse To Record Lows As Global Financial Chaos Accelerates

After a little bit of a lull, the international currency crisis is back with a vengeance. Currencies are collapsing in Argentina, Brazil, India, Turkey and other emerging markets, and central banks are springing into action. It is being hoped that the financial chaos can be confined to emerging markets so that it will not spread to the United States and Europe. But of course the global financial system is more interconnected today than ever before, and a massive wave of debt defaults in emerging markets would inevitably have extremely serious consequences all over the planet. It would be difficult to overstate the potential danger that this new crisis poses for all of us. Emerging market economies went on an unprecedented debt binge over the past decade, and a high percentage of those debts were denominated in U.S. dollars. As emerging market currencies collapse, it is going to become nearly impossible to service any debts denominated in U.S. dollars, and that could ultimately mean absolutely enormous losses for international lenders. Our system tends to do fairly well as long as everybody is paying their debts, but once the dominoes begin to tumble things can get messy really quickly.

Let’s start our roundup today with India. While India is currently not in as bad shape as some of the other emerging markets, the truth is that they could get there pretty rapidly if they keep going down this path.

On Thursday, concerns about rising oil prices drove the Indian rupee to a brand new all-time record low…

The Indian rupee fell to a record low on Thursday morning, following a declining trend all year — which economists attributed to rising oil prices, broader emerging market concerns, and strong month-end dollar demand.

…click on the above link to read the rest of the article…

Mapping The Countries Shutting Down The Internet The Most

August 30, 2018

Mapping The Countries Shutting Down The Internet The Most

With President Trump raising the threat rhetoric over conservative bias among the giant US megatech firms, it is worth remembering that when it comes to curbing dissent and freedom of expression, some governments take the drastic step of shutting down the internet.

Across the world, as Statista’s Niall McCarthy notes, internet shutdowns and deliberate slowdowns are becoming more common and they generally occur when someone (usually a government) intentionally disrupts the internet or mobile apps to control what people do or say.

According to Access Now data reported by Vice News, India has the most shutdowns of any country by a huge distance – 154 between January 2016 and May 2018. By comparison, second-placed Pakistan only had 19 shutdowns during the same period.

You will find more infographics at Statista

In many countries, flicking the off switch on the internet is a preemptive or reactive measure in response to mass or potential unrest.

Egypt’s 2011 revolution and the failed Turkish military coup of 2016 are prime examples.

This is also true in India to a certain extent where internet access is cut off due to political turmoil, protests and military operations.

Shutdowns are even known to occur in certain regions to prevent cheating during examinations. Recent cases include a 45-day internet shutdown in Darjeeling in West Bengal due to political demonstrations and protests from activists seeking a separate state while Nawada in Bihar experienced a 40-day shutdown due to communal clashes.

Given how important the internet has become, limiting access to it can have financial consequences. In India, the huge number of shutdowns and their length, are getting very expensive. A report by The Indian Council for Research on International Economic Relations (ICRIER), found that 16,315 hours of intentional internet downtime between 2012 and 2017 has cost the Indian economy $3.04 billion.

US, Iran Clash in Hormuz Strait: Not an Improbable Scenario

July 8, 2018

US, Iran Clash in Hormuz Strait: Not an Improbable Scenario

The US remains adamant in its desire to cut Iran’s oil exports to zero, even if it hurts importing countries. America’s secondary sanctions on firms dealing with Iran would “snap back” on August 6 for trade in cars and metals and on November 4 for oil and banking transactions. The “wind down” period varied between 90 and 180 days is intended to allow entities to end businesses in Iran. There will be no waivers. India, China and Turkey are the oil importers expected not to succumb to US pressure.

Brian Hook, the State Department’s director of policy and planning, said “Our goal is to increase pressure on the Iranian regime by reducing to zero its revenue from crude oil sales.” The US has already approached Saudi Arabia on the subject of increasing exports to compensate for the reduction of Iranian oil on the world market.

The goal is to hit Iran’s economy against the background of ongoing protests inside the country. Last July, John Bolton openly called for regime change in Tehran. He was not national security adviser at the time but nothing makes believe he has changed his views since then.

Iran’s President Hassan Rouhani warned the United States about consequences. He said shipments from other countries would be disrupted if Iranian oil exports were suspended. Qassem Solaimani, the commander of the Al Quds Force in the Revolutionary Guards, joined him to confirm that his country will block oil shipments through the Hormuz Strait if the US administration stops Iranian oil exports. Mohammad Ali Jafari, the commander of the Islamic Revolutionary Guard Corps, said that “either all can use the Strait of Hormuz or no one.”

…click on the above link to read the rest of the article…

Turkey and India Have Leverage in Trump’s Iran Sanction War

July 2, 2018

Turkey and India Have Leverage in Trump’s Iran Sanction War

Both India and Turkey have said they will defy President Trump’s call for them to stop buying Iranian oil once the U.S. reapplies sanctions in November. That isn’t really news.

Both of them defied the Obama administration in 2012, albeit in different way. Turkey changed its banking rules to monetize gold and used its gold reserves as a means to launder Iranian oil payments for third parties through its banking system.

India bypassed cutting off Iran from the U.S. dollar by beginning a goods-for-oil swap program.

Today, however, the geopolitical background is far different. Today, Iran can and does list its oil for sale in Shanghai’s futures market payable in Chinese Yuan. Turkey can recycle its Yuan it receives from its large trade deficit with China to up its purchases of Iranian oil if need be.

But, more importantly, both India and Turkey have geopolitical freedoms they didn’t have in 2012. I have covered the Turkey angle on this at length. India, on the other hand, I haven’t.

Iran has become Turkey’s biggest oil importer.

Turkey, a NATO ally, is dependent on imports for almost all of its energy needs. In the first four months of this year, Turkey bought 3.077 million tons of crude oil from Iran, almost 55 percent of its total crude supplies, according to data from Turkey’s Energy Market Regulatory Agency (EPDK).

President Recep Tayyip Erdoğan last year said Turkey was looking to raise the volume of its annual trade with Iran to $30 billion from $10 billion.

And it doesn’t look like this will change with Trump’s sanctions.

With President Erdogan winning re-election he now goes into the NATO Summit with Trump on July 11-12th with a lot of leverage. Erdogan has openly courted Russia on energy supplies.

…click on the above link to read the rest of the article…

India Central Bank Intervenes As Rupee Crashes To Record Low

June 28, 2018

India Central Bank Intervenes As Rupee Crashes To Record Low

Just weeks after Urjit Patel, Governor of the Reserve Bank of India, wrote an op-ed in the FT warning that should the US maintain its current pace of monetary policy tightening, it could have serious repercussions for the global economy, it is…

It was the first time this tightening cycle that a prominent foreign central banker has accused the Fed of stirring trouble for emerging markets, with its ongoing tightening, and specifically, the balance sheet reduction coupled with the Treasury debt issuance surge, to wit:

Global spillovers did not manifest themselves until October of last year. But they have been playing out vividly since the Fed started shrinking its balance sheet. This is because the Fed has not adjusted to, or even explicitly recognised, the previously unexpected rise in US government debt issuance. It must now do so.

Patel’s advice? Immediately taper the tapering, or rather, the Fed should “recalibrate its normalisation plan, adjusting for the impact of the deficit. A rough rule of thumb would be to reduce the pace of its balance-sheet contraction by enough to damp significantly, if not fully offset, the shortage of dollar liquidity caused by higher US government borrowing.”

Incidentally, the various pathways described by Patel were conveniently laid out by Deutsche Bank’s Aleksandar Kocic two weeks ago, and which we explained in “Why The Soaring Dollar Will Lead To An “Explosive” Market Repricing.”

And Patel’s warnings are coming true as The Fed’s actions are impacting India as much – if not more – than anywhere else.

The Indian rupee slumped to an all-time low as a resurgence in crude prices and the emerging-market selloff took a toll on the currency of the world’s third-biggest oil consumer.

…click on the above link to read the rest of the article…

Tag Archives: india

Content

Post categories

Economic Links

Energy/Resource Links

Environmental Links

Geopolitical Links

Liberty Links

News Links

Other Links

Survival Skills

Post Archives by Category

Post navigation

Latest Posts