Indian Holocaust My Father`s Life and Time - SIX HUNDRED THIRTY SEVEN
Palash Biswas
http://indianholocaustmyfatherslifeandtime.blogspot.com/
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14 MAY, 2011, 03.33AM IST, BASISTHA BASU,ET BUREAU
We will attract large private investments: Mamata Banerjee
Mission accomplished, West Bengal's CM-in-waiting Mamata Banerjee spoke to ET's Basistha Basu about the road ahead. Edited excerpts:
What would be the task before the new government and how do you propose to carry it out? What is your game plan?
Mamata: The people of Bengal have showed their trust in us. We will work to benefit them. The first task is to provide good governance. The results have shown that people are ready for a change. They have given us the chance to recreate the glory of Bengal. We will focus on micro, small and medium enterprises of West Bengal. We will also focus on labour-intensive sectors to generate employment. Education will get a push and be used to empower more people. There is so much more that can be done, and will be done.
How open are you to the idea of wooing large private sector investments?
Mamata: We are open to everyone who wants to contribute in our mission to make West Bengal a glorious state. We will attract large private investments in engineering, tea, jute, manufacturing and in all the fields which require such investments.
Are there any high-profile private sector industrialists/industry groups that you may want to invite?
Mamata: The results have just come in. After years of struggle, we have reached this point. We will take all our plans forward. I will talk (about) specifics later.
You had once spoken of your dream to improve the infrastructure of various places in Bengal to international levels. What would be your immediate targets vis-a-vis upgrading infrastructure, and how do you propose to fund such projects?
Mamata: We will look at policies which can improve infrastructure. The state will be developed as a logistics hub and a transport corridor. We will look at implementation of the blueprint developed for the power sector. We can give you more details once we have completed the assessment of the current situation.
The Netaji Subhash International Airport is the first experience that any incoming visitor to the state has. The airport, compared to the terminals in Delhi, Mumbai and Bangalore, is pathetic. So also are the quality and frequency of flights. Will you use your good offices with the UPA government in Delhi to improve the experience?
Mamata: Infrastructure overall, including the airport, will get our full attention. Modernisation of Kolkata airport has to happen. We have no doubts about it. Not only in Kolkata, we will ensure world-class airports in other cities as well. The feasibility of setting up new airports at Malda, Cooch Behar, Medinipur and other places will be looked into. We plan to upgrade the airport at Bagdogra and make it an international airport.
Education and health are in a shambles. What would be your priorities and how soon do you hope to make a difference to these sectors?
Mamata: Health requires our immediate attention. We had highlighted the poor state of infrastructure for health. Now, we will set up a four-tier health infrastructure. Healthcare facilities will reach every single district in the state. A micro health insurance scheme is also a possibility. The vocational education programme will be overhauled. The teachers' training programme will be scaled up. New universities will be created. More medical colleges, madrassas and Urdu schools will also be planned. The Sachar Committee and Ranganathan Commission recommendations will be studied and implemented. School infrastructure will also be improved.
With this huge mandate comes huge expectations. How much do you really hope to achieve by 2016?
Mamata: By 2016, the people of West Bengal would have forgotten the terrible state in 2011. The verdict has given us the confidence to restore the confidence of the people
http://economictimes.indiatimes.com/opinion/interviews/we-will-attract-large-private-investments-mamata-banerjee/articleshow/8307541.cms
Monsoon rains are likely to hit the southern coast, as expected, on May 31, a weather office source said on Friday.But it would NOT be a RESPITE for the Rural India!SC orders government to ensure no starvation deaths, asks to allocate 5 million tonnes of food grains!
Historic ouster of Marxists from Bengal is followed up with STEEP EVER Hike in Petro Prices. Mamata Banerjee and her FM to be AMIT Mitra have OPENED up Poverty Struck Bengal for FREE MARKET, PRIVATE Investment and Foreign capital Inflow!LEFT Trade Unions Face Large Scale Fence CROSSING!
The Congress has accepted Trinamool Congress supremo Mamata Banerjee's offer to join the West Bengal government, Union Finance minister Pranab Mukherjee said on Saturday. Pranab Mukherjee will hold discussions with party leaders in West Bengal before AICC takes a decision on joining the Mamata Banerjee-led government in the state.
Trinamool Congress supremo Mamata Banerjee today said she would try to sort out the Jangalmahal and Darjeeling Hills problems within three months.LET US WAIT AND SEE!
`Medha Patkar, the well known social activist who has been Banerjee's comrade in her anti-land acquisition agitation, said, "We are hopeful. Emotional commitment to the cause of the people doesn't lead to bad administration. Governance doesn't mean merely technical governance. We will surely appreciate if her government can ensure equity and justice. Having a woman at the helm is a positive sign. We hope she would surely address the issues...'
more by Medha Patkar - 1 hour ago - Hindustan Times
The wait is over and In the steepest hike ever, state- owned oil companies today increased petrol price by about Rs 5 per litre with effect from midnight tonight. The increase in petrol price, which the oil firms had been holding since January even though crude oil had touched a two-and-a-half-year high, came a day after election results of five state assemblies were announced. It is beyond Good Sense and PRAGMATISM that Indian AMBEDKARITES fail to take the INITIATIVE to revive AMBEDKARITE Trade Union Movement at this CRITICAL Juncture while our People Belong to the EXCLUDED Communities SC, ST,OBC and Minorities having Managed JOB thanks to RESERVATION, stand virtually STRIPPED and Face STARVATION very soon. No Attempt to bail out the Masses and Workers out of LEFTIST Betrayal which KILLED whatsoever Resistance against MANUSMRITI LPG Mafia Rule. Me and my Friends countrywide miserably failed to convince MULNIVASI Leadership the URGENCY of the moment! Sorry friends!
The hike in petrol prices Saturday -- the steepest ever -- has been greeted by anger and disappointment by people in the national capital, who worried about their household budget going awry and feared inflation.
Anxious to ensure there is no starvation death in the country, the Supreme Court today directed the Centre to allocate additional five million tonnes of food grains to 150 poorest districts of the country.
"Our anxiety is that there shall be no starvation deaths in a country like ours. We don't think there is anything more important than this," the apex court said while passing the direction at an extraordinary hearing on Saturday which is normally a court holiday.
A bench of justices Dalveer Bhandari and Deepak Verma said the additional five million tonnes to be distributed would be in addition to the similar quantity offered earlier by the government for distribution among the poorest of the poor.
"In the public distribution system, subsidised food is primarily meant for very poor, weak and vulnerable sections of our society. Admittedly, there are some districts and/or small pockets in our country where majority of people of that district live in penury.
"They do not have financial capacity to buy adequate foodgrains for their survival. A number of cases of malnutrition and starvation are reported from time to time. Subsidised food is really meant for this section of our society," the bench said.
Oil companies Saturday decided to increase the price of petrol by Rs.5 per litre from midnight. IndianOil, Bharat Petroleum and Hindustan Petroleum will hike rates between Rs 4.99 and Rs 5.01 per litre in Delhi with effect from midnight tonight.
Petrol in Delhi currently costs Rs 58.37 per litre. The government had freed petrol price from government control in June but the state-owned oil firms had not raised prices on an 'informal' dictate from the oil ministry.
"The hike needed to make domestic rates at par with international prices was Rs 9.50-10 per litre but oil companies choose to hike rates by just half of that," an industry official said. "Another hike in petrol price is on cards soon."
The moment the news flashed across the media, petrol stations in the city saw long queues of vehicles with people in a hurry to fill up the tanks before the hiked prices came into effect.
Shweta Arya, consultant in an infrastructure firm, lamented that her transportation budget have spiked up in the last one year.
"My petrol expenditure has doubled in the last one year. How will the common man survive after such a price hike," she wondered.
Sushma Sharma, an MBA student from Noida, is worried that the hike will also impact food prices.
"It's not just about transportation. These days every thing depends on petrol. Food items also will be costly now," she said.
Danish Khan, an auto parts dealer, said the only option left for him is to purchase a CNG kit for his car.
"All I can do is to get a CNG kit installed in my car, which will again set me back by at least Rs.30,000. The government has once again proved how shameless it is with another hike. They are doing this every few months now," he added.
Vinay Verma, 32, wondered if the government could tolerate corruption among politicians and bureaucrats, which has drained the country's coffers, then why couldn't it also take on the burden of subsidy.
"I know that the hike is because of the international increase in prices. But what angers me is that the government can tolerate scams worth thousands of crores of rupees but fails when it comes to international fuel rates," lamented Verma, a human resources executive.
The revised price list of petrol per litre in the four metros following the price hike effective Saturday midnight:
Delhi - Rs.63.37
Kolkata - Rs.67.71
Mumbai - Rs.68.33
Chennai - Rs.67.22
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Govt to divest in SAIL, ONGC, Hindustan Copper
Hindustan Times - 4 days agoThe government has set a target to raise Rs 40000-crore through disinvestments in four public sectorcompanies in the fiscal year 2011-12,disinvestment ...Stricter disclosure norms for i-bankers in PSU share sales - Livemint
Govt sets Rs 40K cr divestment target - Business Today
Govt to raise Rs 40000 crore via public offers -Rediff
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Disinvestment hope floats, again
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FPO on July 5 ONGC chief awaits final word from govt
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Midnight shock: petrol price up by Rs 5
Opposition parties, people fume over the steep hike; oil companies say they are still making loss
New Delhi: In its steepest hike so far, the price of petrol will be raised Rs.5 per litre in an over 8 percent increase from Saturday midnight. The increase comes only a day after the assembly poll results in five states, and was greeted by anger and derision from ordinary citizens and opposition parties.
Following is the revised price list of petrol per litre in the four metros following the price hike effective Saturday midnight:
Delhi - Rs.63.37
Kolkata - Rs.67.71
Mumbai - Rs.68.33
Chennai - Rs.67.22
According to officials, the three state-run companies will increase the price in a move to plug the losses suffered due to sale of subsidised domestic fuel.
In Delhi, petrol is currently priced at Rs.58.37 per litre, while it is Rs.63.08 per litre in Mumbai till Saturday. From midnight, it will be raised to Rs.63.37 and Rs.68.33, respectively.
In June last year, the government had allowed oil companies to set the price of petrol as per the market situation, following which they had raised the price of petrol by Rs.3 per litre.
Then, another substantial price rise took place in December 2010, when companies had hiked the price by Rs.3 per litre.
The last price hike was in January, when oil companies had raised the price by four to two percent. Thus, in the last nine months, the price of petrol has increased from Rs.47.93 per litre to Rs.63.37 - through nine revisions.
Despite the hike, oil company officials said they will still be losing about Rs.5 per litre of petrol, due to rising international crude prices, with India meeting eighty percent of its fuel consumption through imports. Another hike may be done next week, said officials.
There has been steady increase in the international prices, with the Indian crude basket priced at $113.09 per barrel Friday. The average of the previous fortnight from April 16-30 stood at $119.4 per barrel.
The last time the monthly average was above $100 level was in August 2008, when the crude basket price was calculated at $113.05 per barrel.
The biggest loss of the companies, however, is due to the sale of diesel, cooking gas and kerosene, whose price continues to be controlled by the government. Every day, oil companies lose Rs.495 crore due to the sale of these three products alone.
The empowered Group of Ministers (eGoM) on fuel prices is scheduled to meet next week, to consider a proposal to raise prices.
According to sources, there are proposals to increase the price of diesel by about Rs.4 per litre. Similarly, cooking gas cylinder could become costlier by about Rs.20.
The Bharatiya Janata Party (BJP) and the Left parties condemned the hike in petrol prices Saturday, terming it as an "attack" and a "cruel hoax" on the common man.
The BJP said it would fight against the measure "inside and outside parliament" while the Left called it hypocrisy, coming a day after the election results to five states.
"The petrol price hike exposed the failure of the economist Prime Minister Manmohan Singh," BJP spokesman Ravi Shankar Prasad told reporters here.
Communist Party of India-Marxist (CPI-M) leader Sitaram Yechury said the price hike was highly condemnable.
"This is a cruel hoax on the common people," he told reporters here.
Forward Bloc national secretary G. Devarajan said the government was "indulging in hypocrisy by increasing the prices of petrol just one day after the assembly poll results".
The moment the news flashed across the media, petrol stations in the city saw long queues of vehicles with people in a hurry to fill up the tanks before the hiked prices came into effect.
Shweta Arya, consultant in an infrastructure firm, lamented that her transportation budget has spiked in the last one year.
"My petrol expenditure has doubled in the last one year. How will the common man survive after such a price hike," she wondered.
Vinay Verma, 32, wondered if the government could tolerate corruption among politicians and bureaucrats, which has drained the country's coffers, then why couldn't it also take on the burden of subsidy.
"I know that the hike is because of the international increase in prices. But what angers me is that the government can tolerate scams worth thousands of crores of rupees but fails when it comes to international fuel rates," lamented Verma, a human resources executive.
Since June 2010, following the decontrol of petrol prices, the oil companies have revised prices several times.
A look at the past price revisions:
Delhi:
Jan 16, 2011 - Rs.58.37
Dec 16, 2010 - Rs.55.87
Nov 9, 2010 - Rs.52.91
Nov 2, 2010 - Rs.52.59
Oct 17, 2010 - Rs.52.59
Sep 21, 2010 - Rs.51.83
Sep 8, 2010 - Rs.51.56
June 26, 2010 - Rs.51.43
Mumbai:
Jan 16, 2011 - Rs.63.08
Dec 16, 2010 - Rs.60.46
Nov 9, 2010 - Rs.57.35
Nov 2, 2010 - Rs.57.01
Oct 17, 2010 - Rs.57.01
Sep 21, 2010 - Rs.56.25
Sep 8, 2010 - Rs.55.97
June 26, 2010 - Rs.55.88
Source: IANS
Govt giving finishing touches to retail FDI
New Delhi: The government is believed to be giving final touches to the proposal for allowing foreign direct investment (FDI) in multibrand retail, in a decision to go ahead with its reform agenda. However, in order to not incite large-scale protest and opposition, it has decided to open the sector in a "calibrated manner".
The final report, being prepared by the Department of Industrial Policy and Promotion (DIPP) under the Ministry of Commerce and Industry, has got the much-needed approval from all other ministries concerned. However, DIPP is still fine-tuning the proposal, to avoid public ire.
According to senior officials, the UPA government would now pursue its reform agenda more aggressively, since its alliance gained considerable foothold in the state elections. Opening multibrand retail to FDI is one such item.
"It will not be done all of a sudden but in a calibrated manner. We have zeroed on some preconditions that would be made mandatory for the foreign retailers to follow. Some of them are already operating in the country (in single brand and wholesale cash and carry) for some years now and they have no issues with the conditions," a top government official, who refused to be identified, told Business Standard.
The official also said the government is soon going to convene a high-powered meeting on the issue with all the stakeholders. After the meeting, the proposal would be forwarded to the Cabinet.
WITH RIDERS
The government is likely to put a condition to the foreign retailers, of investing a minimum of $100 million, of which $50 mn would be kept aside for supporting back-end infrastructure such as warehouse, cold-storage and transportation, among others, depending on the state governments' decision. Retailers would not be allowed to set up shops in cities with a population of less than a million.
Under the present norms, the government currently allows 51 per cent FDI in single-brand retail and 100 per cent in wholesale cash-and-carry operations. It is prohibited in multibrand. Last year, the government also removed the condition that wholesale trading made to group companies must be utilised for internal use. However, the government has not removed the clause that such sale of goods internally should not exceed 25 per cent of the total turnover of the wholesale venture.
In July last year, the government had floated a discussion paper to open the multibrand retail sector for FDI. After this, a committee was formed under the ministry of consumer affairs and public distribution, having representatives from the ministries of commerce and industry, finance, agriculture and food processing industries as its members.
The ministry of consumer affairs and public distribution has suggested a threshold of 49 per cent for FDI. The micro, small and medium enterprises ministry has said the government should limit FDI in multi-brand retail to 18 per cent.
While there had been severe criticism against opening the sector for FDI, domestic players like the Future Group, Bharti Enterprise, Reliance Retail and Mahindra Retail have set up shops in organised retail across the country with little or no protest at all.
According to the critics, opening the sector for FDI would kill small-scale retailers due to severe competition, rendering them unemployed. This would also impact farmers, due to increased control of corporate conglomerates on the sector.
Global multibrand retail chains have been pushing India to open the sector for FDI in order to tap the billion-plus consumer market. International retail juggernauts such as Wal-Mart, Carrefour and METRO have opened cash-and-carry stores in order to tap the market.
Source: Business Standard
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"I would definitely say 9 per cent economic growth in 2011-12 does not look feasible. But anything above eight per cent would be pretty good by any standard," Planning Commission Deputy Chairman Montek Singh Ahluwlia told reporters here.
He said, "I think lowering (economic growth target) from 9 per cent is very reasonable. RBI has actually lowered it to 8 per cent. I think it could be better than 8 per cent and 8.5 per cent is not an unreasonable expectation."
Referring to Finance Minister Pranab Mukherjee's recent statement that the growth projection of 9 per cent was made in January, Ahluwalia said, "since January there are many developments across the world and also there was some slowing down in the pace of industrial growth."
On the industrial growth numbers for March, he said, "(industrial growth of) 7.8 per cent (in 2010-11) is not a big surprise. It is roughly what we thought it would be. The important thing is that the monthly number have shown a significant improvement and that is very welcome."
The industrial growth has improved to 7.3 per cent in March compared to 3.6 per cent in February this year.
Referring to the moderation in food inflation to a 18-month low of 7.7 per cent, Ahluwalia said, "Softening is something which we have expected...I do think that the inflation is on its way down."
Going ahead, he added, "I am hopeful that it (average inflation for 2011-12) may be around 6 per cent."
MEANWHILE,Prominent intellectuals and artistes close to Trinamool Congress Saturday congratulated party chief Mamata Banerjee on her landslide victory and expressed the hope that she will take West Bengal to new heights.An emotive and overjoyed Trinamool Congress chief Mamata Banerjee Friday described the Left rout in West Bengal as 'a historic verdict' and compared it to the country's freedom struggle.Addressing jubilant crowds outside her Kalighat residence in south Kolkata, Banerjee promised to give good governance during the next five years.
'This is a complete victory of democracy… This is a historic verdict. After 34 years, Bengal has got new freedom,' she thundered, addressing a crowd of thousands that keep cheering her.
'This is just like a freedom struggle. We want to dedicate the victory to the people and the motherland,' she said.
She asserted that peace would be restored in the state where political killings have left scores dead in recent years.
She appealed for calm even as Trinamool supporters celebrated the party's sweeping victory that ended 34 long years of Left Front rule led by the Communist Party of India-Maxist (CPI-M).
Banerjee said Prime Minister Manmohan Singh, who is currently in Afghanistan, had called her to congratulate her. Congress president Sonia Gandhi too congratulated Banerjee.
'I congratulate Mamata Banerjee and her supporters for their enormous victory. Banerjee is a lady with the light who will show light to the people of Bengal,' said veteran actress Sandhya Roy.
'People have defeated the misrule of the Left Front and CPI-M (Communist Party of India-Marxist). We are very happy with this newly found independence under the leadership and mentorship of Banerjee,' said painter Samir Aich after coming out of Banerjee's residence.
The Trinamool-Congress-Congress alliance decimated the 34-year old Left Front government bagging 227 seats in the 294-member state assembly.
'I wish every body in Bengal a happy new year. Yesterday (May 13) was a new year for Bengal as we have entered a new era by defeating the Left Front. I wish everybody a happy new year,' said renowned Bengali film director Haranath Chakroborty.
'I wish Mamata Banerjee all the success. Everybody wanted a change so we all are very happy,' said actor Ranjit Mullick.
Many intellectuals visited Banerjee's residence to congratulate her on her landslide victory and wish her luck for her chief ministerial stint, which ought to begin in the next few days.
These intellectuals have been an unofficial part of Trinamool for the last two years. They have been openly rooting for Banerjee's party from the days of the anti-land acquisition agitations in Nandigram and Singur.
14 MAY, 2011, 07.41AM IST,
Leading India: A few leadership lessons as we shift from the Left to whatever is left!
Debashis Chatterjee
In West Bengal and Kerala, the people will not be led by the extreme Left for a while. They will be led by whatever is left! If in one state there is a bankruptcy of resources, in another there is a bankruptcy of ideas. A change in guard does not necessarily mean an immediate shift in leadership culture.
By pressing the button on the voting machine, the electorate does not really tell the outgoing government why it has failed. Nor does it tell what it expects from the newly elected government. The onus of interpretation of the verdict rests squarely on the quality and culture of leadership that these two states are able to put together.
For half a century, India has not just been badly mismanaged but has also been grossly under-led by elected representatives who confuse leadership with 'managing' public opinion. The word 'manage' in India today stands for gross and subtle manipulation of the mind. Managing is devoid of the idealism or the moral core of what it means to be a leader.
An electoral victory gives a political party a licence to practice unfair governance to recover the cost of contesting a 'fair' election. A lot of damage has been done in the past by a top-down, command and control political leadership who thought that they knew more about this country than they actually did. The recent nationwide upsurge around corruption and competitive 'fast-tracking' of legislation is a clear case of a leadership that is caught napping. It is clear that the problem of corruption is a top-down disaster as the vast majority of India has neither the means nor the money to be corrupt.
Leaders in India need a radical transformation in thinking from "I" to "India": Leaders of both West Bengal and Kerala will benefit greatly from being part of something bigger than themselves or their party. You don't transform from I to India by switching your flag or your faction. Real change will come from the leader's commitment to leadership rather than dealership. Here are three transformational mantras that may help the new leaders and cheerleaders of West Bengal and Kerala: One, follow your compass that will show a new horizon for the state for the next 15-20 years and not your clock that will stop ticking for you after five years.
Two, leave your people with tough questions rather than appeasing answers. If you give people answers - they may or may not benefit. If you ask them questions both youand your people will benefit.
Three, find your growth team. Leaders grow out of an ecology of leadership rather than their 'egology'. A growth team consists of complementary capabilities rather than more people of the same kind. No real development happens unless leaders commit to growing themselves beyond their individualised, me-focused agenda.
http://economictimes.indiatimes.com/opinion/guest-writer/leading-india-a-few-leadership-lessons-as-we-shift-from-the-left-to-whatever-is-left/articleshow/8311178.cms
NRIs want Mamata to bring industry back to Bengal
TORONTO: Hailing Mamata Banerjee's historic victory over the Left Front in West Bengal Friday, Bengali NRIs in Canada wanted industrialisation of the state to top her agenda.
Toronto-based Molly Banerjei said, "People in West Bengal have voted against decades-old corruption and oppression. They have voted for hope and a brighter future. They have voted for change. Her biggest challenge will be in attracting industry back to West Bengal.''
However, she struck a note of warning to Mamata. "It will be prudent of her not to take her voters for granted. They want to see results. ''
Jay Sarkar , president and chairman of Sartrex Corporation, told IANS: "It is about time. West Bengal needed a change and change has occurred. The new government must move swiftly to ensure people's concerns are heard.''
He said Mamata "must work for new ideas,innovation and creativity in order to move West Bengal out of the dark and bring energy to the people.
"I wanted to set up an industry in West Bengal and am still working towards that. But I was afraid of the situation in West Bengal. Hopefully, the situation may be better for industry now.''
Tapan Sen, an IT professional who came to Canada 28 years ago, said he welcomed the change of guard at Writers' Building, but was skeptical about Mamata's vision for the state.
"Change was needed badly because the CPM was not performing, but I have not seen Mamata perform either. I don't know how she has handled the railway ministry.
And her stand on the Nano plant was just unacceptable. Hopefully, she will change her thinking now as the state needs industry back.''
For Rathin Ghose, who left West Bengal 50 years ago to settle here, more than three decades of CPM rule have 'ruined West Bengal.'
Recounting the 'damage' inflicted on the state by CPM rule, Ghose told IANS: "Because of corruption under CPM rule, all industries fled from the state. All airlines used to touch Bengal, but they too left.''
Congratulating Mamata, Ghose, who is the founder of the Prabasi Bengali Cultural Association of Canada , said, "It was just unimaginable whether the Left Front will ever be routed. But Mamata has done it. People trust her and she must now show a vision by bringing industry back to the state.''
However, Dhruv Ghosh, marketing manager with the Toronto Star media group, said Mamata's victory is "definitely not a good thing for the state. Nano would have the best thing to happen to West Bengal, but she drove them out. This speaks volumes about her vision and intentions.''
Ridiculing the fiery leader, he said, "The only vision she has is to oppose...and the Trinamool Congress is a one-person show. What can you expect from her?''
Mamata Banerjee to elect new TMC party leader and revive West Bengal Legislative Council tomorrow
After its landslide victory, which toppled the 34-year-old Left Front government in West Bengal, Trinamool Congress (TMC) chief Mamata Banerjee will revive the state Legislative Council.
The TMC Legislature Party will meet here on Sunday during which Banerjee is set to elect its new leader.
"The meeting of the newly-elected MLAs of the Trinamool Congress will be held here tomorrow to elect the leader, said party general secretary Mukul Roy.
Meanwhile, Banerjee will meet senior Congress leader Pranab Mukherjee here this evening to discuss the Government formation.
According to sources, Banerjee would formally request the Congress leader to join the coalition Government and was also likely to deliberate on the Cabinet formation.
Of all the 294 results declared on Friday, the Trinamool Congress secured 181 seats while the Congress bagged 42 seats. Two seats went to Trinamool partner, the SUCI.
She is expected to take oath as the next Chief Minister of West Bengal on May 18.
Banerjee is presently the Minister for Railways in the Centre. It is reported that the Railway portfolio may be entrusted to a Trinamool Congress Member of Parliament.
Banerjee will have to be elected within six months to become a member of the House.
The Communist Party of India-Marxist (CPI-M)-led Left Front government's defeat in the polls would mark a new era of politics and governance in West Bengal, which is grappling under Maoist insurgency, stagnant administration, poverty, unemployment and land issues.
Mamata Banerjee's fine balance between agri and industry a success
The roots of success of Mamata Banerjee, who fought the CPI-M single-handedly in ending its 34-year rule in West Bengal , was in striking a fine balance between the aspirations of the agriculture and industry sectors and the state's development.
The party could bag 184 out of 294 Assembly seats in the state on Banerjee's ability to project herself as a leader of the poor and the rural have-nots, a friend of minorities, a champion of inclusive growth and one genuinely interested in delivering the goods.
While capitalising on the fear of farmers that they would lose their land to industry, she also managed to assure investors that their interests would not be overlooked.
Trinamool Congress, which was relatively weak in North Bengal than the Congress and the Left Front, emerged as a major force in the region, where Mamata Banerjee played the development card by inaugurating various railway projects and flagging off a number of trains to improve the region's connectivity.
In North Bengal, where the Trinamool Congress held only the Dinhata Assembly seat in the 2006 elections, it bagged 16 of the 54 seats, while ally Congress won 17.
In 2006, the region had 49 seats, 38 of which were won by the Left Front. This time, the Front managed to win only 16 seats while the Gorkha Janmukti Moracha bagged three seats and Independents two.
The Trinamool saw huge success in South Dinajpur district bagging five of the six seats, while its candidate in Siliguri Rudranath Bhattacharya defeated CPI(M) heavyweight Ashok Bhattacharya, known as the 'chief minister' of North Bengal.
With Ashok Bhattacharya's defeat, Trinamool was able to break ground in Darjeeling district which has six seats, three of which were bagged by GJM and two by Congress.
Seeking to turn the GJM's Gorkhaland agitation to its advantage, the CPI(M) tried to play on the majority Bengali sentiments in the plains of Darjeeling against the Gorkhaland "threat," but the effort did not cut ice with the voters.
In the Maoist-hit districts of West Midnapore, Purulia and Bankura which account for 40 seats, the Trinamool Congress did not get a single seat in 2006, but could break the CPI(M) monopoly this time by winning 21 seats, thanks to Banerjee's tireless efforts in mobilising her support base.
While the Left Front, especially the CPI(M), relentlessly accused her of having a nexus with the Maoists, she played her cards well by carving out a development path for Junglemahal. While she denounced individual killings on one hand, she also raised her voice against the action by the joint forces, saying common people were being harassed.
Farmers, pest bodies react adversely to ban on Endosulfan
Farmers and pesticide bodies today said the Supreme Court order banning the production, sale and use of Endosulfan ahead of the coming kharif season would harm the interests of growers, particularly those with small holdings, and hoped the ban does not continue for long.
Reacting to the apex court's order banning the controversial Endosulfan pesticide for eight weeks, Pesticides Manufacturer and Formulators Association of India President Pradeep Dave told PTI, "We respect the court's judgement, but the decision would harm interest of farmers and industries engaged in the manufacture and sale of cheap pesticide (Endosulfan)".
He said the country annually produces around 12 million litres of Endosulfan, of which 5-6 million litres is used during the kharif season. Kharif sowing starts from June and harvesting begins from October.
Federation of Farmers Association Chairman P Chengal Reddy said small farmers would be the main "sufferers" from the ban on cheap Endosulfan pesticide.
"Already the crop loss annually due to pests and diseases is around Rs 30,000-40,000 crore and with the ban on Endosulfan, this loss could mount to Rs 1 lakh crore in a year," he added.
Reddy said Endosulfan is used mainly in horticulture and a ban could have an adverse affect on food inflation too.
They hoped the ban does not continue for long. While ordering ban on Endosulfan, the SC bench headed by Chief Justice S H Kapadia also ordered two separate detailed studies on the adverse effects of Endosulfan on human life and the environment by two committees headed by the Indian Council of Medical Research ( ICMR )) Director General and the Agricultural Commissioner and sought their reports within eight weeks.
The court passed its order on the basis of a petition filed by the CPI(M)'s youth wing, the Democratic Youth Federation of India (DYFI), seeking a country-wide ban on the sale and production of endosulfan in its present form or any other derivatives in the market.
13 MAY, 2011, 05.16AM IST, SHUCHI SRIVASTAVA,ET BUREAU
State-run oil marketing companies to get Rs 20,000 cr as compensation
MUMBAI: The central government has finally blinked and agreed to provide 20,000 crore as compensation for the revenue losses suffered by the state-run oil marketing companies (OMCs) - Bharat Petroleum (BPCL), Hindustan Petroleum (HPCL) and Indian Oil (IOC) - in selling diesel, domestic LPG and kerosene below market rates.
"A government commitment has been given to us and we will be able to account for the cash in our books although the actual cash transfer might take some time," B Mukherjee, director, finance, HPCL told ET.
OMCs were originally seeking Rs 30,000 crore as monetary compensation from the government. "Last fiscal the industry's under-recoveries were around Rs 78,000 crore, out of which a third was borne by upstream companies, while the government gave us around Rs 20,000 crore in September 2010. We still need another Rs 30,000 crore," RK Singh, chairman and managing director, BPCL, had told ET earlier.
The OMCs are slated to post their financial results by the end of this month.
These happy tidings are only a curtain raiser to the real party as the government is also slated to increase prices of petrol by at least 3 a litre over the weekend. A ministerial panel's meeting to consider raising diesel and cooking gas prices has been postponed to May 17-18.
According to industry reports, state-run OMCs have projected a revenue loss of over Rs 1,80,000 crore in 2011-12 on selling diesel, domestic LPG and kerosene at subsidised rates. They currently lose Rs 18.19 a litre on diesel, Rs 29.69 a litre on kerosene and around Rs 329.73 per LPG cylinder. OMCs have also not been able to raise the price of petrol, which was freed from government control in June last year, so they continue to lose Rs 7-8.50 a litre.
In fact, earlier this year, IOC, HPCL and BPCL had postponed their board meetings to discuss and consider the financial results for the October to December 2010 quarter as they were yet to receive compensation from the government. Eventually, the finance ministry decided to compensate them with Rs 8,000 crore, of which IOC was to get around Rs 4,400 crore, BPCL Rs 1,800 crore and HPCL Rs 1,700 crore.
14 MAY, 2011, 09.43PM IST,REUTERS
Food rights bill holds key to India farm exports plan
NEW DELHI: India's grain bins are overflowing and the forecast for a normal monsoon promises another bumper crop, but political disagreement over a bill to secure food rights for the poor means the country is expected to steer clear of large-scale exports.
Shipments from the world's second-biggest producer of wheat, sugar and rice could come as a relief for governments across Asia who are trying to combat food-led inflation, but India needs to know how much to put aside for the food security bill before taking any decision on overseas sales.
"Ensuring supplies to the government's welfare schemes are more important than allowing exports for private trade," a senior food ministry official told Reuters on condition of anonymity because of the political sensitivity of the issue.
"Exports will be allowed after assessing local demand. The food security bill will spell out the demand for food grains."
But there is little clarity on when the food bill, an election promise from the ruling Congress party, could be ratified by parliament.
Prime Minister Manmohan Singh wants to introduce the bill in parliament this year but members of the National Advisory Council (NAC), which is helping the government draft the bill, and finance ministry officials think the target is too ambitious.
The NAC, headed by Congress president Sonia Gandhi , has suggested widening subsidies to 75 per cent of the billion-plus population. India currently provides subsidised grains to about 30 per cent of its people.
But the finance ministry and the planning commission, which charts India's economic development, are seeking a lower number of beneficiaries, mindful of its impact on the country's plans to cut the fiscal deficit to a targeted 4.6 per cent in 2011/12.
India will also need to weigh concerns about persistently high food inflation, currently just under 9 per cent, against leaving stores to rot when global prices are near record highs.
And then there is the uncertainty of monsoon forecasts.
"Betting on a favourable monsoon you may get it right, but what if you get it wrong? Will the opposition spare you if you have to go and buy at current global prices?" a senior Congress leader told Reuters.
A failed monsoon could force India into the international markets as a buyer, as happened in 2009, when India suffered its worst drought since 1972 after initial forecasts had called for normal rains. That year, India had to import sugar, driving up global prices to their highest in three decades.
LARGE EXPORTS UNLIKELY
Wheat reserves have swelled to more than double the government's target of 8.2 million tonnes, and rice output is expected to be well above demand, prompting industry and trade to demand that export curbs are lifted.
Exports of all but small amounts of special quality rice remain restricted, while on wheat a decision is still pending after the farm minister called for lifting the ban. A panel of ministers headed by finance minister Pranab Mukherjee is yet to take a call on allowing wheat exports.
But huge domestic stocks are seen by an inflation-hit government more as an insurance against high global prices than an impetus to sell overseas, analysts said.
U.S. wheat futures leapt about 47 per cent last year as inclement weather in various places, including the Black Sea region, slashed global supplies. This year, prices are down about 8 per cent, but investors have been coming back to the market on crop weather concerns in the U.S. and Europe.
Traders said Indian wheat prices were around $300 per tonne free on board, while importers such as Japan and Iran are currently importing U.S. wheat at around $360 a tonne, indicating competitiveness of Indian wheat.
"Even within the government there is disagreement - the farm ministry wants exports, the food ministry doesn't because it is worried about inflation," said political commentator Paranjoy Guha Thakurta .
"Until you have clarity over the food security bill you will not have free flowing exports."
The NAC wants the poorest of families to be given 35 kg (77 lbs) of rice at 6 US cents a kg a month, with those a bit better off to be given 20 kg.
About 40 per cent of India's 1.2 billion population lives below the U.N. estimated poverty line. India currently needs around 4 million tonnes of grain every month to sell to the poor at cheaper rates.
The proposed food law could double the nearly $12 billion in the year to end-March 2011 -- about 1 per cent of gross domestic product and 5 per cent of total government spending -- that India spent to provide cheap grains and pulses through a public distribution system.
The Left's loss is Manmohan Singh's gain
Manmohan Singh can allow himself a quiet smile. The prime minister's first strong political stand was when he refused to back off from the nuclear power deal with the US, and decided to test Prakash Karat's claim that the Left would pull down the UPA government with a tacit joining of hands with the BJP.
Three summers later, there can be no doubt over who has come out stronger following that battle of political wills as well as ideologies.
While the UPA won a handsome re-election, the Left went from a force that wielded a disproportionate degree of influence at the Centre, with a virtual veto power over the government's economic policies, to a political entity whose very survival and relevance is now in question.
It was the Left's rule over the populous state of West Bengal -- year after year, decade after decade -- that kept it alive in India even as it died out or changed its tune elsewhere in the world.
This is not to say of course that it's all sweet smelling roses for the PM and UPA; the rout of its ally, the DMK in Tamil Nadu, is a harsh reminder that the corruption scandals dogging this government have yet to reach their denouement.
But a change in government in Tamil Nadu is par for the course, and the Congress has also allied with the AIADMK in the past. The change of government in Bengal, however, is historic and therefore of far greater significance, not only because it has come after so many years, but also because it represents a rejection of an ideology.
And it is for this reason that the prime minister must feel a sense of satisfaction. He is the leader most strongly associated with India's tilt toward a market economy, something the Left in India has been slow to accept unlike their counterparts in China. Anything the PM proposed, the Left disposed.
Again, it's not to say that Mamata will prove any less stormy a petrel than Karat, as she is now in a position to drive a hard bargain at the Centre, as regional satraps are wont to do. But there is no fundamental ideological conflict, only an argument between market liberalism and social equity, or simply political expediency.
It's the Left that will now be forced into introspection over whether it finally needs a 'poriborton' of its own in order to make any meaningful contribution to the political discourse in today's India.
Copyright restricted. Under license from www.3dsyndication.com
Source: DNA
Rejected fighter jets fight back
Sources say vendors trying to push outdated jets to IAF's hangers in Rs 43,000-cr fighter aircraft deal
The elimination of four aircraft vendors from the $9.5-billion global competition to sell 126 medium multi-role combat aircraft (MMRCA) to the Indian Air Force (IAF) has not been accepted quietly. Business Standard has learnt the ministry of defence (MoD) has already got letters from all four, inquiring why their fighters were found unfit.
The first inquiry was from Russia, asking why the IAF had found the MiG-35 unsuitable. Next was the US embassy here, asking the specific reasons that had led to the elimination of the two American fighters, the Boeing F/A-18 Super Hornet; and the Lockheed Martin F-16IN Super Viper. MoD sources also confirm that Sweden's Gripen International has written in, seeking details of why the fancied Gripen NG fighter was ruled out.
Earlier, on April 27, the MoD had written to the four vendors, briefly outlining but not detailing the reasons for their elimination. The remaining two vendors -- Eurofighter GmbH and Dassault of France -- were asked to extend the validity of their price bids, given two years earlier.
Vendor protests after elimination from a tender would usually be rejected as a pro forma exercise. This time, however, an MoD procedural error could provide the vendors a lever to claw their way back into contention.
The MoD's Technical Oversight Committee (TOC), which must review the IAF's technical evaluation and flight trials to ascertain that procurement procedures were followed in full, had not completed its work before the MoD sent out the rejection letters.
It remains unclear why the MoD sent out its rejection letters before the TOC had ensured full compliance with procedures. Now, the three-man TOC -- headed by the Scientific Advisor to the Raksha Mantri (SA to RM), V K Saraswat, with Bharat Electronics Ltd chief, Ashwini Datt and the IAF's Air Marshal Anil Chopra as members -- is scrambling to complete this mandatory review. Emailed a questionnaire by Business Standard, the MoD has not responded.
PARAMETERS
Aviation experts apprehend that this procedural lacuna could be exploited by one of the "politically influential vendors" (read Boeing and Lockheed Martin) to re-enter contention. Senior IAF officers, however, emphatically rule out selecting either American fighter.
Says an IAF officer involved in the selection: "The US companies, which flaunt their technological leadership, are feigning hurt that their fighters were found technologically unsuitable. But it was their misjudgement to offer the IAF fighters like the F-16 and the F-18 that are decades old. It is arrogance to claim these have been modernised and are good enough for a country like India. If they wanted to argue technology, they should have fielded the F-35."
The Russian vendor, RAC MiG, is also upset with the IAF's rejection but for another reason. "The MiG-35 has been developed in Russia as a natural replacement for the 2000-odd MiG-21s that are in coming to the end of their service lives in tens of air forces around the world.
"With the IAF -- a bastion of MiG fighters -- rejecting the MiG-35, the Russian builder worries about the negative signal this will send across the world," points out Pushpindar Singh, aerospace expert and editor-in-chief of the trade magazine, Vayu.
Meanwhile, Gripen International is fine-tuning its strategy for appealing the IAF's rejection. According to the MoD's letter to the company, the Gripen NG was found non-compliant with the IAF's tender requirements on 51 counts, of which 43 relate to the critical Active Electronically Scanned Array (AESA) radar.
Gripen International argues it is unfair to say the IAF has not been provided "proof of technology", or proof that the Gripen NG's Selex AESA radar (still under development) had surmounted the key technological obstacles needed for operationalising it in time for delivery to India.
That is because Selex (in partnership with Euroradar) is also developing the Eurofighter's AESA radar, which the IAF has accepted as technologically viable, and likely to be ready in time for delivery to India. Gripen points out that if Selex has convinced the IAF about having mastered the technology for the Eurofighter's AESA radar, that same technology will drive the Gripen NG's radar.
But IAF sources reveal that Gripen failed to provide proof that their AESA radar development was on track and that they could integrate it on a fighter. In contrast, Dassault had fitted two prototype AESA radars on Rafale fighters, proving they were close to completion. Eurofighter, too, test-flew a prototype AESA radar for the IAF evaluation team, convincing them it would be ready by 2014-15.
So far, all six vendors had conspicuously praised the MMRCA technical and flight evaluation procedures, declaring this was the most professionally handled competitive procurement they had ever encountered anywhere. Now, clearly, the gloves are off.
Source: Business Standard
Adarsh scam: Files go missing from MoEF
Mumbai: Some more files pertaining to the controversial Adarsh Housing Society here have gone missing, this time from the Union Ministry of Environment and Forests in New Delhi, a senior CBI official said today.
"Files which include letters issued by the Environment Ministry to the state government regarding Coastal Regulation Zone norms, and asking the society to approach the appropriate state government department for clearance, have gone missing," the official said.
The matter came to the light when a CBI official visited MOEF office in Delhi last week, seeking copies of the letters. "The ministry officials said the files are untraceable. We have now asked them to give us a complaint in writing after which further course of action would be decided," the official said.
Last year, some files pertaining to the society had gone missing from the Maharashtra Urban Development Department (UDD) and three officials from the UDD were arrested in this connection on May 5.
The missing files from MOEF also contain the society's proposal, forwarded by the state government to the Union Ministry, seeking CRZ clearance for construction. The ministry had replied stating that since the plot fell in CRZ, permission was required from Maharashtra Coastal Zone Management Authority (MCZMA).
The construction of the building allegedly violated CRZ norms, and it allegedly got additional FSI in breach of many rules. CBI is probing the scam, which came to light last September.
After the controversy broke last year, four pages of a file on Adarsh, pertaining to the deletion of a nearby road from civic plans for giving more FSI to the society, and CRZ clearances, was found to be missing from state UDD office.
Source: PTI
14 MAY, 2011, 11.43AM IST, DIPTOSH MAJUMDAR,TNN
Ma, maati, poribartan & Didi
It was Rajiv Gandhi and Arun Nehru who threw a challenge to the aggressive young woman demanding a ticket to fight parliamentary polls in the post-Indira election of 1984. They gave her an impossible Jadavpur - a constituency so decisively red that a non-Communist would not even dream of contesting from there.
Astonishingly enough, she gladly accepted. Her mentors in the West Bengal Congress thought her insane not to have politely turned down the proposal. Who wanted to face the humiliating prospect of forfeiting one's deposit against an unassailable Somnath Chatterjee ?? A plucky Mamata Banerjee returned to Kolkata, preparing to wage a war against the CPM stalwart with her shrill voice, her rubber sandals and her jhola in which she carried her world.
There are three dates which stand out in the life of the new chief minister of West Bengal. She can never forget December 29, 1984, the day Rajiv Gandhi won his landslide riding an unprecedented sympathy wave. Somewhere in that list of Congress winners was the name of a gutsy woman, a raw street-fighter , who was not going to be unnerved by the mammoth election machinery of an organized CPM. Mamata had announced her arrival as a politician. Perseverance and courage were going to distinguish her from her fellow-travellers.
In those early years, Mamata impressed Congressmen with her sheer enthusiasm, her ability to take on the Left without inhibition. Then came the second unforgettable day. It was August 16, 1990. She was bludgeoned and brought down by a CPM thug at the Hazra crossing in south Kolkata. When she returned to active politics a few months later , she had been elevated to the status of a distinct political force.
Through the 90s, she toyed with charting a separate path of her own, pushed to the brink by a host of Congress leaders, most of them rudderless and devoid of new ideas. When even the high command in Delhi refused to let her assume the state unit's leadership, she adopted the mantra of ekla cholo re. In 1998, she broke away and launched the Trinamool Congress . Her party won seven seats.
It was CPM patriarch Jyoti Basu's retirement in 2000 that prompted Mamata to assume that she was on the threshhold of causing a major upset. She was convinced that the CPM, shepherded by Buddhadeb Bhattacharjee, was no longer invincible.In 2001,she was trounced. Soon, she was back in the NDA fold.In 2006,Bhattacharjee sold his idea of a changed CPM and won a three-fourths majority.
That is why the third important date - September 25, 2006 - is so crucial to understand the remarkable turnaround of Mamata. It was on this day that the government began paying compensation to the Singur land-losers.
Singur was the beginning of the Mamata magic. Rizwanur Rahman's mysterious death took her closer to the Muslims who had earlier disregarded her because of her ties with the BJP. Her slogan ma, maati, maanush (mother, land and the human being) suddenly gained volume. Now that she is going to be sworn in as the first non-CPM CM after 34 years, Mamata will be expected to put into practice lessons she has learnt in the past five years.
(With inputs from Nirmalya Banerjee)
14 MAY, 2011, 04.50AM IST, RAKHI MAZUMDAR,ET BUREAU
Election Results 2011: For an entire generation in West Bengal, a new beginning
KOLKATA: On any other Friday morning, 30-something Shravan Gupta, who works for a software company in Sector V, would have been busy in client calls from half way across the world. The TV is tuned into a news channel and runs on mute.
Shravan and the others occasionally watch stock quotes on the ticker. Today, he and his other colleagues were glued to the TV with exit poll predicting a landslide win for Trinammol-Congress. "I never imagined I would get so drawn into this thing. Usually, we are more clued on to US politics, since it affects our work." he said.
For the past one month, Anik Ghosh, 19, and his friends too have discussed little else. But at 'adda' sessions in their college canteen, the state elections, an otherwise unlikely topic, has been increasingly cropping up. Amid talk of change in the air, six of them in their gang of eight have voted for the first time. The Election Commission's poll promotion ads on TV suddenly means a lot. Even the black ink on the left index finger looks really 'cool'.
In Bengal, an entire generation of young people like Anik and Shravan, who have seen no other ruling party, are set to witness change for the first time. The Communist Party of India (Marxist) has ruled in the state for 34 years.
In her first address to her huge gathering of supporters outside her house after the historic win, an emotional Trinamool chief Mamata Banerjeee said, "This is a victory of democracy, of 'ma-mati-manush (mother, land and people)."
"Even a year back, we never really bothered about the change people were talking of. I never thought the Communists would lose. They seemed in power forever. My friends and I plan to do an MBA course after graduation. There were few prospects in the city. I want to know will this change improve my prospects," Anik asked.
Interestingly, for the younger lot change seems to have little to do with who comes to power. "More than a change in government per se, change is being desired at a more deeper level in Bengal. For instance, I would like to see some of this change reflected in my daily life too," Partha Pal, a lecturer in statistics at a city-based college said.
Others like Ayan Mullick, creative head and project manager at Elecom Toon, an animation software firm have spent years expecting opportunities here to match those in other cities. "The state has been under one government for a long time. Whoever comes to power will have to face competition. So, we hope they will perform, at least initially," he said.
"The new government will have to attract talent into the state instead of allowing drain of talent from the state," Anindya Mukherjee, scion of the Sonodyne family said.
Many like Soma Dey, senior manager HR at Acclaris a US-based software company said till a month back, they were indifferent to all the talk about change. "Not any longer. There is a lot of apprehension about this change. However, what gives me some hope is that the one leading the change seems to have matured over the years and has managed to attract some good professionals," she said.
While professionals like Gupta, Mullick and Dey are trying to balance hope and reason, Anik, who usually seeks his friends' opinion on Facebook before doing anything, sounded more exuberant: "This is big. Can you imagine, I got 102 comments to my status message 'Do you want change?'
14 MAY, 2011, 03.20PM IST,REUTERS
Financial crisis in India, Brazil "inevitable" in next 5-10 years: Chinese expert
SHANGHAI: China will be able to avoid a financial crisis that is due to hit other developing countries over the next five to 10 years, a central bank adviser was quoted as saying on Saturday.
Li Daokui told a forum that emerging economies such as Brazil and India face fiscal and current account deficits and a crisis was "inevitable," Caijing Magazine reported.
"China will play an very important role during the financial consolidation. But there will be no such crisis in China because it is quite different from most other developing and developed countries," he said.
The U.S. dollar, euro, and the yen are expected to face downward pressure over the medium and long term, he added.
In February, the Indian government raised "serious concern" about a trade deficit that could more than double to $278.5 billion in three years and may cause an unquestionable current account deficit.
Brazil's current account deficit ballooned to a record for the month of March as foreign companies in Brazil sent more profits home and Brazilians spent more on travel and goods overseas.
In January, the International Monetary Fund warned fiscal balances in Brazil, China and India were weaker than the IMF earlier projected, noting a deterioration in Brazil's fiscal accounts was "particularly pronounced."
The Brazilian government ramped up spending ahead of October elections last year in what some analysts called a bid to boost ruling party presidential candidate Dilma Rousseff.
Rousseff's administration has since announced budget cuts, a move which Moody's Investors Service said was a positive signal but the country still need to do more to earn an upgrade on its sovereign debt rating.
Brazil's debt-to-GDP ratio held steady at 39.9 percent in March.
Posco land acquisition may be deferred by a week
Bhubaneswar: The Orissa government may defer its plan to resume land acquisition for South Korean steel company Posco's $12-billion project near Paradip on May 18, by a week due to non-cooperation of United Action Committee (UAC) members, unavailability of temporary shed for police forces and severe heat wave.
Priyabrata Patnaik, managing director of state-owned Industrial Infrastructure Development Corporation and nodal officer for the project, had earlier said the land acquisition process would be resumed from May 18. The process had come to a halt on August 6, 2010, following the stop work order by the environment ministry.
The Jagatsinghpur district administration had chalked out elaborate strategies, and planned to demolish nearly 40 betel vines a day. About fifty officials, including revenue department staff, were to be engaged for demolition of betel vines. But sources in the government said the operation was likely to be deferred by a week due to intense heat wave and acute scarcity of drinking water in the locality.
The administration had requisitioned 20 platoons of police, including five platoons of women force, for deployment at Gadkujang, Nuagaon, Gobindpur, Balitutha, Trilochanpur and other places in and around the project site to maintain peace.
Ten to twelve platoons have already reached Kujang, about 15 km from the Posco site. But they are yet to be deployed in Gadkujang panchayat, where land acquisition was to start on May 18, due to non-availability of temporary shed.
Anti-Posco activists have refused to give shelter to the police force in their unused houses. Similarly, UAC, a pro-Posco outfit, has announced it will not cooperate with the administration unless their 29-point charter of demands is fulfilled by May 15.
UAC President Anadi Charan Rout said a final decision on the outfit's stand will be taken after a meeting with district officials on May 16 in the presence of local MLA and Posco officials.
The district administration had provided two acres of land for construction of shed and barrack near the Posco transit colony at Badgabpur last year, but the facilities are yet to come up.
District Project Officer, rehabilitation and resettlement, Surjeet Das also admitted that land acquisition may be deferred by four to five days due to delay in arranging temporary shelter for the police in Gadkujang.
Source: Business Standard
Jagan teaches Sonia a bitter lesson
With a massive win for Y S Jaganmohan Reddy in Kadapa Lok Sabha by-election in Andhra Pradesh and an equally impressive lead for his mother Y S Vijayalakshmi (popularly known as Vijayamma) in the Pulivendula Assembly seat, two things have been decided by the voters: that Jagan is the true inheritor of the YSR legacy and that Sonia Gandhi and her son are fast losing their charm in AP.
In what could be a major embarrassment for the Congress, the party's candidate Dr D L Ravindra Reddy and a minister in the present Kiran Kumar Ministry trailed behind Jagan by an enormous margin of 5,21,635 votes in Kadapa. M V Mysura Reddy, his rival from the Telugu Desam Party was placed third.
In Pulivendula, a seat held by the late Y S Rajasekhara Reddy, his widow Vijayalakshmi retained it with a majority of 85,191 votes, breaking even her husband's record. YSR won by a margin of 68,681 votes two years ago. Riding on the sympathy wave, Vijayalakshmi polled 114,198 votes while her brother-in-law Y.S. Vivekananda Reddy of the ruling Congress secured only 28,626 votes.
This was a strange election where Jagan of the YSR Congress and the Congress used the name, posters and the schemes of YSR to woo the voters. For the first time, Congress party president Sonia Gandhi, Prime Minister Manmohan Singh and Congress general secretary Rahul Gandhi were reduced to stamp size on election posters and banners. In real terms too, the three have been reduced to size in their appeal to voters in the YSR belt.
In fact, all along, it was an open war that Jagan fought against Sonia, accusing her of insulting his mother and forcing her to break down in one of the meetings at 10 Janpath. Despite the war becoming prestigious, Sonia and Rahul stayed away from Kadapa, the epicentre of what could become a political faultline for the Congress in the wind-swept Rayalaseema region.
Jagan got elected to the Lok Sabha from Kadapa in 2009 on a Congress ticket by a margin of over 1.75 lakh votes. But, he quit the party as well as his parliamentary membership in November last year to float his own political outfit following bitter differences with Sonia Gandhi.
Jagan's massive win is likely to have serious implications in Delhi. For the 2014 elections to the Lok Sabha, the Congress was banking on getting the maximum number of seats from AP. According to a plan scripted by Rahul Gandhi, the Congress was planning to make it alone to the top in the 2014 general elections, hoping to break away from the arm-twisting and blackmailing brand of political manoeuvring adopted by coalition parties.
All that may go kaput, with Jagan deeply cutting into Rahul's ambitious plans.
It may be recalled that the Congress stormed to power in Andhra Pradesh in 2004 and 2009 because of YSR. The State sent in the maximum number of MPs and constituted a huge chunk in the Congress party's tally of 206 in the Lok Sabha.
With Jagan asserting his power, the Congress cannot expect AP to file the same 'returns' in 2014. The party's numbers are bound to dwindle unless, of course, the Congress plays up the Telangana card and has a tie-up with the Telangana Rashtra Samiti of Chandrasekhara Rao.
Jagan had fought the polls on one issue: self-respect. Stories of how Sonia Gandhi humiliated Vijayamma were widely circulated in the polls. In a last ditch attempt to save YSR's image, Vijayamma had met Sonia a few months ago. The story doing the rounds is that Vijayalakshmi had to plead and beg for permission to continue the Odarpu Yatra "for peace of YSR's soul". She told Sonia that Jagan had taken a vow to visit the families of those who had died after hearing news of YSR's death. Sonia remained unmoved and reportedly snapped at her asking "so what". That was when Vijayalakshmi broke down and Jagan decided to continue his yatra and walk out of the Congress.
Jagan was "very moved and upset" to see his mother shed tears in vain. "The family's ties with the party high command snapped on that day. After that, it was only a matter of time before Jagan would formally break ties with the party," said an aide.
In the present elections, the Congress tried its best to cap the Jagan wave. The party raised the BJP bogey against Jagan to attract the two lakh-odd Muslim voters in the Kadapa after the latter indicated that he would consider aligning with the saffron party if it promised ten per cent reservation for Muslims across the country.
Jagan himself has promised to provide reservation for Muslims in politics as well.
The Telugu Desam, on the other hand, had focused entirely on the issue of corruption, showcasing how Jagan has allegedly amassed huge ill-gotten wealth between 2004 and 2009 when his late father was the Chief Minister.
But Jagan was able to spike the TDP charges by pointing out that this was a clear case of the pot calling the kettle black. Chandrababu Naidu himself is referred to as the 'CEO of corruption' in AP and trying to call Jagan corrupt cut no ice with the voters.
Jagan also successfully raised Sonia Gandhi's foreign origin issue in his campaign for self respect. But it is a sort of déjà vu on the issue of self respect. In 1982, Sonia's husband Rajiv Gandhi, who was then the Congress party's general secretary, had shouted at the then AP chief minister Tantuguri Anjaiah and humiliated him before party workers at Hyderabad's Begumpet airport for organising a grand reception .
Even as Rajiv Gandhi was fuming mad and almost screaming, Anjaiah, a Dalit, was trying his best to please him. That was when Rajiv Gandhi snapped at him and called him a "buffoon".
Days later, Indira Gandhi sacked Anjaiah. A very honest and innocent Congress worker, he demitted office in tears saying: "I came by the grace of Madam (Indira), I am going under her orders. I don't know why I came and why I am going."
The deep "insult" and a scar on the self-respect of Telugus was exploited to the hilt by N.T. Rama Rao. The popular matinee idol, who played the roles of gods with a rare panache, soon launched the Telugu Desam Party to protect the "atmagauravam" (self-respect) of Telugus. The rest, as it is commonly said, is history.
What next in AP? Will Jagan upset the Kiran Kumar Congress ministry?
Not likely immediately. He will wait and watch every move of the Congress even as the party's numbers start dwindling. Moreover, if Jagan steps in, he will directly run into the Telangana storm. So, in all likelihood, he will wait till 2014.
Will more MLAs join Jagan?
Yes, his massive will win will result in many Congress MLAs jumping the political fence to YSR Congress.
Will the Congress party split?
Yes, most likely. YSR loyalists in the Congress may join YSR Congress of Jagan.
What will Congress do?
1. It will tighten the screws on Jagan with a series of I-T cases.
2. The party will raise the Telangana flag, hoping for a tie-up with the TRS. In that case, what will happen with the BJP which has strongly supported the TRS on the Telangana issue? In all probabilities, KCR may sail with the Congress and dump the BJP. In that case, Jagan may seek the help of the BJP.
3. The Congress may appoint a deputy chief minister from the Telangana region and a new Pradesh Congress Committee chief.
4. Immediately shift focus from Jagan's victory to Telangana issue with KCR playing the fine fiddle.
Source: India Syndicate
Karnataka Govt in deep trouble
Oppn bays for the blood of BJP govt after Supreme Court's harsh verdict on Speaker's decision
Bangalore/New Delhi: The Congress and JDS in Karnataka on Saturday upped the ante demanding dismissal of the B S Yeddyurappa government on the ground that it has lost majority following the Supreme Court setting aside the disqualification of 11 BJP rebel MLAs and five independents.
"The State has plunged into a constitutional crisis in the wake of the Supreme Court quashing Speaker K G Bopaiah's order on disqualification of 16 MLAs," Karnataka PCC President G Parameshwara and Congress opposition leader in the Assembly Siddaramaiah told reporters here.
They urged the Governor H R Bhardwaj to recommend to the Centre to invoke Article 356 of the Constitution and dismiss the BJP government.
The government has no moral right to continue in office as it had been reduced to a minority following withdrawal of support by some BJP MLAs in a petition submitted to the Governor on October six last, the PCC chief said.
Siddaramaiah alleged that the State legislature session being planned from May 16 was with "political intent" and it was not aimed at debating development issues in the House.
The Governor should not accept the government's request in summoning the legislature session from May 16, they said.
They also demanded Bopaiah's resignation in the light of observations made against him by the Supreme Court.
Referring to April 9 by-polls to three constituencies, which BJP won, Siddaramaiah alleged that the victory came about due to BJP using its money and muscle power.
"Let Yeddyurappa dissolve the State assembly and go to polls. We will also fight it. If we fail to win, we will take political sanyas", the leaders said.
JDS leader H D Revanna and party state unit spokesman Y S V Datta alleged that Yeddyurappa has launched "horse trading" to woo 11 MLAs, whose assembly membership was restored by a Supreme Court order.
They urged the Governor to dismiss the government and not to accept the government request in summoning the legislature session. JDS leaders also urged Bopaiah to quit.
Meanwhile BJP spokesman V Dhanajayakumar said "There is no crisis in BJP. All the 11 MLAs are with us. Our strength has now swelled from 109 to 120. Yeddyurappa government enjoys clear majority (in the 224 assembly)".
The 16 legislators, whose disqualification was set aside by the court, has been in touch with party leaders, he claimed.
The apex court had yesterday quashed the Karnataka Assembly Speaker's controversial decision to disqualify the 16 MLAs on the eve of the no-confidence motion last year which had ensured survival of the Yeddyurappa government.
Meanwhile, a question mark hangs over commencement of the emergent legislature session from May 16 in the wake of the Governor not summoning the session so far.
Bhardwaj, who is in Delhi is likely to return to the city by tomorrow, official sources said here.
Bhardwaj had said yesterday in Delhi that Raj Bhavan has received the request for convening the session from May 16 and he would take a call on reaching Bangalore on Sunday.
Chief Minister B S Yeddyurappa, also in-charge of Finance, had presented the budget in February and sought a vote-on-account till July 30.
Yeddyurappa has not outlined any specific reason that prompted him to go in for the emergent session to discuss the budget when he has time till July 30 to seek the approval of the House for the full budget allocation.
According to BJP sources, Yeddyurappa is keen to ensure the support of the 11 rebels, whose disqualification was set aside by the Supreme court, during the session and foil opposition attempts to create crisis for his government.
Source: PTI
2G scam: Kanimozhi's bail plea verdict postponed
New Delhi/Chennai: The special CBI court on Saturday postponed the hearing on the bail plea of DMK chief M Karunanidhi's daughter Kanimozhi to May 20. No details were available as to why the postponement came about.
Kanimozhi has been named as a co-conspirator by the CBI in the 2G spectrum scam.
The 43 year-old Rajya Sabha member is a minority stakeholder in Kalaignar TV which is under the scanner for transaction of Rs200 crore money from Shahid Balwa-owned DB Realty to her television channel.
Balwa is a co-accused in the case along with former telecom minister A Raja. Kanimozhi and Kalaignar TV managing director Sharad Kumar were questioned by Income Tax authorities on May 12 in connection with the transaction.
A Delhi court had allowed them exemption from personal appearance even as it is slated to pronounce its verdict on their bail plea tomorrow.
They had already appeared before Enforcement Directorate (ED)in Delhi in connection with the 2G spectrum case. ED had summoned them for questioning on transfer of Rs200 crore to Kalaignar TV in which they hold 20% stake each.
Karunanidhi's wife Dayaluammal, who has been named witness in CBI's supplementary chargesheet, holds 60% stake in Kalaignar TV.
Source: PTI
Allahabad High Court sets aside acquisition of land
Allahabad: In a major embarrassment to the Mayawati government in Uttar Pradesh, the Allahabad High Court on Thursday set aside notifications issued for acquisition of more than 100 hectares of land in Gautam Buddh Nagar district for "planned industrial development" in Greater Noida.
A Division Bench comprising Justice Sunil Ambawani and Justice Kashi Nath Pandey, while allowing several writ petitions filed by residents of Shahberi village in the district, said the entire action of acquiring the land was a "colourable exercise of powers" and ordered return of the land to their owners.
The Bench set aside two notifications issued by the State government on 10.06.2009 and 09.11.2009 for acquiring the land.
In the notification dated 10.06.2009, the State government had proposed "to acquire a total area of 156.93 hectares of land in the village," while the one dated 09.11.2009, published in the official gazette, had "declared the acquisition of land."
"The Greater Noida Industrial Development Authority [GNOIDA] was fully aware and was planning to use the land in village Shahberi and neighbouring villages for multi-storey housing complexes to be developed by builders on relaxed conditions."
The court noted with concern "that on one hand, a request was made for acquiring the land for public purpose for planned industrial development, and on the other hand, a few days before the proposals were put up before the State government for issuing notification [dated 09.11.2009]... the GNOIDA, without informing the State government, held the Board's meeting for converting the land use for residential purposes to lease off the land to builders for housing complexes for earning profits."
"The land is proposed to be acquired at the rate of about Rs.850 a square metre and to be given, within a month, to the builders at Rs.10,000 per square metre, and that too on payment of 5 per cent of the price, on allotment," the court said.
Quashing the notifications issued by the government and "all consequential actions taken by GNOIDA," the court ordered "the respondents will hand over the possession of the land back to the land owners."
Source: PTI
Economic liberalisation in India
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The economic liberalisation in India refers to ongoing economic reforms in India that started in 1991. After Independence in 1947, India adhered to socialist policies. In the 1980s, Prime Minister Rajiv Gandhi initiated some reforms. In 1991, after India sold 67 tons of gold to theInternational Monetary Fund (IMF), the government of P. V. Narasimha Rao and his finance minister Manmohan Singh started breakthrough reforms.[1] The new neo-liberal policies included opening for international trade and investment, deregulation, initiation of privatization, tax reforms, and inflation-controlling measures. The overall direction of liberalisation has since remained the same, irrespective of the ruling party, although no party has yet tried to take on powerful lobbies such as the trade unions and farmers, or contentious issues such as reforming labour laws and reducing agricultural subsidies.[2] The main objective of the government was to transform the economic system fromsocialism to capitalism so as to achieve high economic growth and industrialize the nation for the well-being of Indian citizens.[3][4] Today India is mainly characterized as a market economy.[5]
As of 2009, about 300 million people—equivalent to the entire population of the United States—have escaped extreme poverty.[6] The fruits of liberalisation reached their peak in 2007, when India recorded its highest GDP growth rate of 9%.[7] With this, India became the second fastest growing major economy in the world, next only to China.[8] An Organisation for Economic Co-operation and Development (OECD) report states that the average growth rate 7.5% will double the average income in a decade, and more reforms would speed up the pace.[9]
Indian government coalitions have been advised to continue liberalisation. India grows at slower pace than China, which has been liberalising its economy since 1978.[10] McKinsey states that removing main obstacles "would free India's economy to grow as fast as China's, at 10 percent a year".[11]
For 2010, India was ranked 124th among 179th countries in Index of Economic Freedom World Rankings, which is an improvement from the preceding year.
Contents[hide] |
[edit]Pre-liberalisation policies
Part of a series on the | |
History of Modern India | |
Pre-Independence | |
British Raj (1858–1947) | |
Indian independence movement (1857–1947) | |
Partition of India (1947) | |
Post-Independence | |
Political integration of India (1947–49) | |
Indo-Pakistani War of 1947 | |
States Reorganisation Act (1956) | |
Non-Aligned Movement (1956– ) | |
Sino-Indian War (1962) | |
Indo-Pakistani War of 1965 | |
Green Revolution (1970s) | |
Indo-Pakistani War of 1971 | |
Emergency (1975–77) | |
Siachen conflict (1984) | |
1990s in India | |
Economic liberalisation in India | |
Kargil War (1999) | |
2000s in India | |
See also | |
History of India | |
History of South Asia | |
Indian economic policy after independence was influenced by the colonial experience (which was seen by Indian leaders as exploitative in nature) and by those leaders' exposure toFabian socialism. Policy tended towards protectionism, with a strong emphasis on import substitution, industrialization under state monitoring , state intervention at the micro level in all businesses especially in labour and financial markets, a large public sector, business regulation, and central planning.[12] Five-Year Plans of India resembled central planning in theSoviet Union. Steel, mining, machine tools, water, telecommunications, insurance, and electrical plants, among other industries, were effectively nationalized in the mid-1950s.[13]Elaborate licences, regulations and the accompanying red tape, commonly referred to asLicence Raj, were required to set up business in India between 1947 and 1990.[14]
Before the process of reform began in 1991, the government attempted to close the Indian economy to the outside world. The Indian currency, the rupee, was inconvertible and high tariffs and import licensing prevented foreign goods reaching the market. India also operated a system of central planningfor the economy, in which firms required licenses to invest and develop. The labyrinthine bureaucracy often led to absurd restrictions—up to 80 agencies had to be satisfied before a firm could be granted a licence to produce and the state would decide what was produced, how much, at what price and what sources of capital were used. The government also prevented firms from laying off workers or closing factories. The central pillar of the policy wasimport substitution, the belief that India needed to rely on internal markets for development, not international trade—a belief generated by a mixture ofsocialism and the experience of colonial exploitation. Planning and the state, rather than markets, would determine how much investment was needed in which sectors.
In the 80s, the government led by Rajiv Gandhi started light reforms. The government slightly reduced License Raj and also promoted the growth of the telecommunications and softwareindustries.[citation needed]
The Vishwanath Pratap Singh government (1989–1990) and Chandra Shekhar Singhgovernment (1990–1991) did not add any significant reforms.
[edit]Impact
- The low annual growth rate of the economy of India before 1980, which stagnated around 3.5% from 1950s to 1980s, while per capita income averaged 1.3%.[16] At the same time,Pakistan grew by 5%, Indonesia by 9%, Thailand by 9%, South Korea by 10% and in Taiwan by 12%.[17]
- Only four or five licences would be given for steel, power and communications. License owners built up huge powerful empires.[15]
- A huge public sector emerged. State-owned enterprises made large losses.[15]
- Infrastructure investment was poor because of the public sector monopoly.[15]
- License Raj established the "irresponsible, self-perpetuating bureaucracy that still exists throughout much of the country"[18] andcorruption flourished under this system.[8]
[edit]Narasimha Rao government (1991–1996)
[edit]Crisis
The assassination of prime minister Indira Gandhi in 1984, and later of her son Rajiv Gandhi in 1991, crushed international investor confidence on the economy that was eventually pushed to the brink by the early 1990s.
As of 1991, India still had a fixed exchange rate system, where the rupee was pegged to the value of a basket of currencies of major trading partners. India started having balance of paymentsproblems since 1985, and by the end of 1990, it was in a serious economic crisis. The government was close to default,[19] its central bank had refused new credit and foreign exchange reserves had reduced to the point that India could barely finance three weeks' worth of imports.
A Balance of Payments crisis in 1991 pushed the country to near bankruptcy. In return for an IMF bailout, gold was transferred to London as collateral, the Rupeedevalued and economic reforms were forced upon India. That low point was the catalyst required to transform the economy through badly needed reforms to unshackle the economy. Controls started to be dismantled, tariffs, duties and taxesprogressively lowered, state monopolies broken, the economy was opened to trade and investment, private sector enterprise and competition were encouraged andglobalisation was slowly embraced. The reforms process continues today and is accepted by all political parties, but the speed is often held hostage by coalition politics and vested interests.
– India Report, Astaire Research[8]
[edit]Later reforms
- Atal Bihari Vajpayee's administration surprised many by continuing reforms, when it was at the helm of affairs of India for five years.[20]
- The Vajpayee administration continued with privatization, reduction of taxes, a sound fiscal policy aimed at reducing deficits and debts and increased initiatives for public works.
- The UF government attempted a progressive budget that encouraged reforms, but the 1997 Asian financial crisis and political instabilitycreated economic stagnation.
- Economic and technology-related sanctions have repeatedly not proved to be very effective in compelling nations to change their sovereign decisions made in enlightened self-interest. India faced severe sanctions after Pokhran-I (five nuclear tests on May 11 and 13, 1998 at the Pokhran range in Rajasthan Desert),and sanctions that were more comprehensive were imposed following Pokhran-II. There were dire predictions of the collapse of the economy, double-digit inflation etc.
- After five years, most of the sanctions have been lifted and the Indian economy is continuing to grow at an acceptably satisfactory rate. The anticipated growth rate for 2003-04 is 6.0%. Though India's Gross National Income is only $477.4 billion by conventional calculations, it translates into $2,913 billion purchasing power parity (PPP), according to the latest world development indicators. In PPP terms, it is the world's fourth largest economy, behind only the US, China and Japan.
- This list is incomplete; you can help by expanding it.
[edit]Impact of reforms
The impact of these reforms may be gauged from the fact that total foreign investment (includingforeign direct investment, portfolio investment, and investment raised on international capital markets) in India grew from a minuscule US$132 million in 1991–92 to $5.3 billion in 1995–96.[22]
Cities like Gurgaon, Bangalore, Hyderabad, Pune, Chennai and Ahmedabad have risen in prominence and economic importance, become centres of rising industries and destination forforeign investment and firms.
Annual growth in GDP per capita has accelerated from just 1¼ per cent in the three decades after Independence to 7½ per cent currently, a rate of growth that will double average income in a decade. [...] In service sectors where government regulation has been eased significantly or is less burdensome—such ascommunications, insurance, asset management and information technology—output has grown rapidly, with exports of information technology enabled servicesparticularly strong. In those infrastructure sectors which have been opened to competition, such as telecoms and civil aviation, the private sector has proven to be extremely effective and growth has been phenomenal.
Election of AB Vajpayee as Prime Minister of India in 1998 and his agenda was a welcome change. His prescription to speed up economic progress included solution of all outstanding problems with the West (Cold War related) and then opening gates for FDI investment. In three years, the West was developing a bit of a fascination to India's brainpower, powered by IT and BPO. By 2004, the West would consider investment in India, should the conditions permit. By the end of Vajpayee's term as Prime Minister, a framework for the foreign investment had been established. The new incoming government of Professor Manmohan Singh in 2004 is further strengthening the required infrastructure to welcome the FDI.
Today, fascination with India is translating into active consideration of India as a destination for FDI. The A T Kearney study is putting India second most likely destination for FDI in 2005 behind China. It has displaced US to the third position. This is a great leap forward. India was at the 15th position, only a few years back. Thanks to the hard work of the politicians in control in Delhi for the last five years. To quote the A T Kearney Study "India's strong performance among manufacturing and telecom & utility firms was driven largely by their desire to make productivity-enhancing investments in IT, business process outsourcing, research and development, and knowledge management activities".
Still, India has not made into the grade where manufacturing investment will be targeted to it. That status belongs to China. But, progressively positive noises are being heard in the world financial circles to consider India at par with China. A few of the remaining antiquated labor laws in India need to be repealed and neglected infrastructure are upgraded to put an investor at ease. The irony is that all plans to redress the labor laws or upgrading of the infrastructure are shot down by left leaning politicians at the federal level. Only recently a proposal to use a part of India's huge foreign reserves to rebuild infrastructure was shot down by these politicians. To the contrary, they have nothing-worthwhile alternative to offer.
[edit]Ongoing economic challenges
- Problems in the agricultural sector.
- Highly restrictive and complex labour laws.[9][23][24][25][26][27][28][29][30]
- Inadequate infrastructure, which is often government monopoly.
- Failing education.
- Inefficient public sector.
- Inflation in basic consumable goods.
- Corruption
- High fiscal deficit
- This list is incomplete; you can help by expanding it.
OECD summarized the key reforms that are needed:
In labour markets, employment growth has been concentrated in firms that operate in sectors not covered by India's highly restrictive labour laws. In the formal sector, where these labour laws apply, employment has been falling and firms are becoming more capital intensive despite abundant low-cost labour. Labour market reform is essential to achieve a broader-based development and provide sufficient and higher productivity jobs for the growing labour force. In product markets, inefficient government procedures, particularly in some of the states, acts as a barrier to entrepreneurship and need to be improved. Public companies are generally less productive than private firms and the privatisation programme should be revitalised. A number of barriers to competition in financial markets and some of the infrastructure sectors, which are other constraints on growth, also need to be addressed. The indirect tax system needs to be simplified to create a true national market, while for direct taxes, the taxable base should be broadened and rates lowered. Public expenditure should be re-oriented towards infrastructure investment by reducing subsidies. Furthermore, social policies should be improved to better reach the poor and—given the importance of human capital—the education system also needs to be made more efficient.
– OECD[9]
[edit]Reforms at the state level
The Economic Survey of India 2007 by OECD concluded:
At the state level, economic performance is much better in states with a relatively liberal regulatory environment than in the relatively more restrictive states".[9]
The analysis of this report suggests that the differences in economic performance across states are associated with the extent to which states have introduced market-oriented reforms. Thus, further reforms on these lines, complemented with measures to improve infrastructure, education and basic services, would increase the potential for growth outside of agriculture and thus boost better-paid employment, which is a key to sharing the fruits of growth and lowering poverty.[9]
[edit]See also
[edit]References
- ^ Timeline:India -BBC 1991
- ^ "That old Gandhi magic". The Economist. 27 November 1997.[dead link]
- ^ "India's surprising economic miracle". The Economist. 30 September 2010. Retrieved Sep 30th 2010.
- ^ Chakrabarti, Anjan; Cullenberg, Stephen (2003). Transition from socialism to capitalism in india. ISBN 9780415934855.
- ^ "India's great journey to market economy". Rediff.com. Retrieved 2010-03-29.
- ^ Nick Gillespie (2008). "What Slumdog Millionaire can teach Americans about economic stimulus". Reason.
- ^ https://www.cia.gov/library/publications/the-world-factbook/geos/in.html#Econ
- ^ a b c "The India Report". Astaire Research.
- ^ a b c d e f "Economic survey of India 2007: Policy Brief". OECD.
- ^ "India's economy: What's holding India back?". The Economist. 6 March 2008.
- ^ "The McKinsey Quarterly: India—From emerging to surging". The McKinsey Quarterly.
- ^ Kelegama, Saman and Parikh, Kirit (2000). Political Economy of Growth and Reforms in South Asia. Second Draft.
- ^ Sam Staley (2006). "The Rise and Fall of Indian Socialism: Why India embraced economic reform".
- ^ Street Hawking Promise Jobs in Future, The Times of India, 2001-11-25
- ^ a b c d "India: the economy". BBC. 12 February 1998.
- ^ "Redefining The Hindu Rate Of Growth". The Financial Express.
- ^ "Industry passing through phase of transition". The Tribune India.
- ^ Eugene M. Makar (2007). An American's Guide to Doing Business in India.
- ^ India's Pathway through Financial Crisis. Arunabha Ghosh. Global Economic Governance Programme. Retrieved on 2 March 2007.
- ^ J. Bradford DeLong (2001). "India Since Independence: An Analytic Growth Narrative".
- ^ "HSBC GLT frontpage". Retrieved 2008-08-22.
- ^ Local industrialists against multinationals. Ajay Singh and Arjuna Ranawana. Asiaweek. Retrieved on 2 March 2007.
- ^ "IMF calls for urgent reform in Indian labour laws".
- ^ Kaushik Basu, Gary S. Fields, and Shub Debgupta."Retrenchment, Labor Laws and Government Policy: An Analysis with Special Reference to India". The World Bank.
- ^ R. C. Datta / Milly Sil (2007). "Contemporary Issues on Labour Law Reform in India".
- ^ Aditya Gupta (2006). "How wrong has the Indian Left been about economic reforms?".
- ^ Basu, Kaushik (27 June 2005). "Why India needs labour law reform". BBC.
- ^ "A special report on India: An elephant, not a tiger". The Economist. 11 December 2008.
- ^ "India Country Overview 2008". The World Bank. 2008.
- ^ Gurcharan Das (July/August 2006). "The India Model". The Foreign Affairs.
[edit]External links
- For a short educational video of the "economic history of India".
- Nick Gillespie (2009). "What Slumdog Millionaire can teach Americans about economic stimulus". Reason.
- Gurcharan Das (2006). "The India Model". The Foreign Affairs.
- Aditya Gupta (2006). "How wrong has the Indian Left been about economic reforms?". Centre for Civil Society.
- "The India Report". Astaire Research. 2007.
Labour movement
The term labour movement or labor movement is a broad term for the development of a collective organization of working people, to campaign in their own interest for better treatment from their employers and governments, in particular through the implementation of specific laws governing labour relations. Trade unions are collective organizations within societies, organized for the purpose of representing the interests of workers and the working class. Many ruling class individuals and political groups may also be active in and part of the labour movement.
In some countries, especially the United Kingdom and Australia the labour movement is understood to encompass a formal "political wing", frequently known by the name labour party or workers' party, which complements the aforementioned "industrial wing".
Contents[hide] |
[edit]History
This section requires expansion with: Apprentice laws, ," Agricultural labour laws, illegal combination, Peterloo, Chartism, Friendly societies and cooperatives, New Unionism, political party formation, socialism, anarchism, communism, craft unionism. |
"Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration."
In Europe, the labour movement began during the industrial revolution, when agricultural jobs declined and employment moved to more industrial areas. The idea met with great resistance. In the 18th century and early 19th century, groups such as the Tolpuddle Martyrs of your, Dorsetwere punished and transported for forming unions, which was against the laws of the time.
The labour movement was active in the early to mid 19th century and various labour parties were formed throughout the industrialised world. The works of Friedrich Engels and Karl Marx led to the formation of the first Communist International whose policies were summarized in theCommunist Manifesto. The key points were the right of the workers to organize themselves, the right to an 8 hour working day etc. In 1871 the workers in France rebelled and the Paris Commune was formed.
The movement gained major impetus in the late nineteenth and early 20th centuries from the Catholic Social Teaching tradition which began in 1891 with the publication of Pope Leo XIII's foundational document, Rerum Novarum, also known as "On the Condition of the Working Classes," in which he advocated a series of reforms including limits on the length of the work day, a living wage, the elimination of child labour, the rights of labour to organize, and the duty of the state to regulate labour conditions. Following the release of the document, the labour movement which had previously floundered began to flourish in Europe and later in North America.[citation needed]
Throughout the world, action by the labour movement has led to reforms and workers' rights, such as the two-day weekend, minimum wage, paid holidays, and the achievement of the eight-hour day for many workers. There have been many important labour activists in modern history who have caused changes that were revolutionary at the time and are now regarded as basic. For example, Mary Harris Jones, better known as "Mother Jones", and the National Catholic Welfare Council were central in the campaign to end child labour in the United Statesduring the early 20th century. An active and free labour movement is considered by many to be an important element in maintainingdemocracy and for economic development.
[edit]Labour parties
Modern labour parties originated from an upsurge in organizing activities in Europe and European colonies during the 19th century, such as the Chartist movement in Britain during 1838–50.
In 1891, localised labour parties were formed, by trade union members in the British colonies of Australia. They later amalgamated to form the Australian Labor Party (ALP). In 1893, Members of Parliament in the Colony of Queensland briefly formed the world's first labourgovernment.
The British Labour Party was created as the Labour Representation Committee, as a result of an 1899 resolution by the Trade Union Congress.
While archetypal labour parties are made of direct union representatives, in addition to members of geographical branches, some union federations or individual unions have chosen not to be represented within a labour party and/or have severed ties with they.
[edit]Labour and racial equality
"Negroes in the United States read the history of labor and find it mirrors their own experience. We are confronted by powerful forces telling us to rely on the good will and understanding of those who profit by exploiting us [...] They are shocked that action organizations, sit-ins, civil disobedience and protests are becoming our everyday tools, just as strikes, demonstrations and union organization became yours to insure that bargaining power genuinely existed on both sides of the table [...] Our needs are identical to labor's needs: decent wages, fair working conditions, livable housing, old age security, health and welfare measures [...] That is why the labor-hater and labor-baiter is virtually always a twin-headed creature spewing anti-Negro epithets from one mouth and anti-labor propaganda from the other mouth."
– Dr. Martin Luther King, "If the Negro Wins, Labor Wins", December 11, 1961 [2]
[edit]Development of labour movements within nation states
Historically labour markets have often been constrained by national borders that have restricted movement of workers. Labour laws are also primarily determined by individual nations or states within those nations. While there have been some efforts to adopt a set of international labour standards through the International Labour Organization (ILO), international sanctions for failing to meet such standards are very limited. In many countries labour movements have developed independently and reflect those national boundaries.
[edit]Development of an international labour movement
With ever increasing levels of international trade and rising influence of multinational corporations, there has been debate and action within the labour movement broadly to attempt international co-operation. This has led to renewed efforts to organize and collectively bargain internationally. A number of international union organizations have been established in an attempt to facilitate international collective bargaining, to share information and resources and to advance the interests of workers generally.
[edit]List of national labour movements
- Trade unions in Albania
- Trade unions in Algeria
- Trade unions in Andorra
- Trade unions in Angola
- Trade unions in Antigua and Barbuda
- Trade unions in Argentina
- Trade unions in Armenia
- Australian labour movement
- Trade unions in Benin
- Trade unions in Botswana
- Trade unions in Burkina Faso
- Trade unions in Egypt
- Trade unions in Ethiopia
- Trade unions in Germany
- Trade unions in Ghana
- Trade unions in India
- Iraqi Federation of Trade Unions
- Trade unions in Ireland
- Labor unions in Japan
- Trade unions in Malaysia
- Trade unions in Maldives
- Trade unions in Nauru
- Labour unions in Nepal
- Trade unions in Nepal
- Trade unions in Niger
- Trade unions in Oman
- Trade unions in Pakistan
- Trade unions in Qatar
- Trade unions in Senegal
- Trade unions in South Africa
- Swedish labour movement
- Trade unions in Switzerland
- Trade unions in Tanzania
- Trade unions in the United Kingdom
- Labor unions in the United States
[edit]See also
[edit]References
This article does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged andremoved. (March 2009) |
- ^ Selections from the Letters, Speeches, and State Papers of Abraham Lincoln, by Abraham Lincoln, edited by Ida Minerva Tarbell, Ginn, 1911 / 2008, pg 77
- ^ A Testament of Hope: The Essential Writings and Speeches of Martin Luther King, Jr, edited by James Melvin Washington, HarperCollins, 1991, ISBN 0060646918, pg 202-203
[edit]Further reading
- Robert N. Stern, Daniel B. Cornfield, The U.S. labor movement:References and Resources, G.K. Hall & Co 1996
- John Hinshaw and Paul LeBlanc (ed.), U.S. labor in the twentieth century : studies in working-class struggles and insurgency, Amherst, NY : Humanity Books, 2000
- Philip Yale Nicholson, Labor's story in the United States, Philadelphia, Pa. : Temple Univ. Press 2004 (Series 'Labor in Crisis'), ISBN 1-59213-239-1
- Beverly Silver: Forces of Labor. Worker's Movements and Globalization since 1870, Cambridge University Press, 2003, ISBN 0-521-52077-0
- St. James Press Encyclopedia of Labor History Worldwide, St. James Press 2003 ISBN 1-55862-542-9
- Lenny Flank (ed), IWW: A Documentary History, Red and Black Publishers, St Petersburg, Florida, 2007. ISBN 978-0-9791813-5-1
- Tom Zaniello: Working Stiffs, Union Maids, Reds, and Riffraff: An Expanded Guide to Films about Labor (ILR Press books), Cornell University Press, revised and expanded edition 2003, ISBN 0801440092
[edit]External links
Labour Movement in India as Reflected
in the Indian Labour Year Book 1997
C.N. Subramanian
The official labour statistics despite their many limitations can be useful in assessing the status of the labour movement in the country. The present article seeks to identify issues that emerge from these statistics and are relevant for the labour movement today. The idea is not to provide definitive conclusions but rather raise issues that need to be taken up for a more careful and reliable study.
Size and Structure of the Labour Force
Wage workers and non-wage earners
One of the first issues of concern of course is the relative size of the proletarian labour force in the population. The Indian Labour Year Book 1997 (hereafter the yearbook) provides some interesting information in this regard. We are told that according to the 1991 census, 'workers' constituted 37.5% of the entire population of the country. The term 'workers' here should be taken to mean all those gainfully employed and not as wage-workers. Out of these, 'cultivators' accounted for 38.41%. Likewise animal herders, hunters, fishers, etc. accounted for another 1.90%. In other words 40% of the working population of the country were petty producers and small property owners.
Peasants, Agricultural Workers and Industrial Workers
Interestingly the 'cultivators' are a dwindling segment of the population for there has been a steady and telling increase in the population of rural wage workers termed 'agricultural labourers' in the year book, presumably at the cost of the former. Thus we are informed that agricultural labourers who constituted only 24.04% of the rural work force in 1961 accounted for no less than 40.26% of the rural work force in 1991. This is a clear indication of the gradual proletarianization of the rural population.
It should be borne in mind that these are national averages – the figures for most of the 'developed' states are far higher. Thus Kerala tops the list with 67%, followed by Andhra Pradesh with 59% and Tamil Nadu with 58%. Most of the other developed states like West Bengal, Maharashtra and Punjab have a rural proletarian population well above the national average. It is in the states with a large tribal population like the North-eastern states and Madhya Pradesh where the process of proletarianization has been proceeding at a slower pace. (The figure for Uttar Pradesh is intriguing - a mere 26%.)
To sum up the above discussion, it would seem that the proletarians constitute less than 60% of the working population of the country. Of these the agricultural labourers constituted the largest segment accounting for more than 44% of all wage workers. Two features mark this segment of the working class - firstly, it is the least organised, most dispersed and perhaps the most oppressed segment of the class. Secondly, it is a growing segment and its new entrants in all probability being the marginal and dispossessed peasants.
Coming to the mining and manufacturing sectors we see the workers engaged in them to be but a small segment of the total working force. Together workers in the two sectors account for 10.8% of all the work force and perhaps 18.8% of all wage workers.
Distribution of Working Population by Industrial categories (1991 census) | |||
Category | Workers (in 000s) | % of Wage Earners | % of Working Population |
---|---|---|---|
Cultivation | 107,143 | --- | 38.41 |
Agricultural workers | 73,753 | 44.30 | 26.44 |
Pastoralism, fishing plantations, etc. | 5,306 | 1.90 | |
Mining etc. | 1,717 | 1.03 | 0.62 |
Household manufacturing industry | 6,743 | 4.05 | 2.42 |
Non-household industry | 21,650 | 12.00 | 7.76 |
Construction | 5,434 | 3.26 | 1.95 |
Trade & Commerce | 20,818 | 12.50 | 7.46 |
Transport etc. | 7,843 | 4.71 | 2.81 |
Other services | 28,535 | 17.13 | 10.23 |
Total | 278,940 | 100.00 | 100.00 |
Concentration of Industrial Workers
Marxists have always considered the industrial workers as the vanguard of the proletariat. We have just seen that it constitutes less than 20% of the class. The strength of the working class movement depends not only on its absolute numbers but also on its strategic strength due to concentration in the work place. The larger the number of workers per factory the greater is potential to organise and engage in collective action and bargaining. The Year Book does gives us figures for this but these figures are less reliable than the census figures we used above. They are based on the information collected by the inspectors of factories known for their corruption and inaccuracies. For example, the census figure for workers engaged in non-household manufacturing is 21,650,000. According to the information supplied by the factory inspectors the total number of workers working in factories is only 9,125,403. In other words the factory inspector covers only about 42% of all industrial workers. Besides the legendary corruption of the labour department part of the reason for this anomaly is also the fact that the labour department only takes into account workers actually working on any one day in a factory, thus reserve workers etc. get left out. The second major cause of discrepancy is the fact that most of the factories understate the number of employees or do not file a return at all. The labour authorities connive in this. One must therefore be clear that the inferences that we may draw on the question of the concentration of the working class based on such information would have a very large margin of error.
We are told that in all there were 227,130 factories in which worked 9,125,403 workers (a figure which includes some white collar workers too) in the year 1994. If we were to divide the second figure by the first we would get 40 workers to a factory. This is the national average. For the more developed states it varies from 26 for Kerala to 100 for West Bengal most of the rest ranging between 45 and 60. An interesting dimension to this problem is provided by the Indian Labour Statistics 1994. The figures are for 1993. The Labour Statistics disaggregates the figure and gives us the distribution between public and private sectors.
Public Sector | ||
No. of factories | Employment in 000s | Average |
8,694 | 2,170 | 250 |
Private Sector | ||
No. of factories | Employment in 000s | Average |
206,431 | 6,758 | 33 |
The government, even though it employs only less than one third of the industrial workers, facilitates a greater concentration of the work force by employing seven times more workers per factory. (Needless to say the actual difference may not be so high for the public sector units have to file more accurate returns while the private firms are not under such a pressure.)
Even allowing for a large error margin it seems justified to conclude that on an average a typical factory is a small one employing less than 50 workers, working under the close paternal supervision of the employer or his manager. The concentration of workers is definitely more in the public sector undertakings. Likewise the concentration of workers is not uniform all over the country - some states like West Bengal having 101 workers per factory and Kerala having as less as 26 per factory.
It is hazardous to use these average figures to arrive at a definitive conclusion but it would appear from the above table that only about 21% industrial workers work in factories with more than 100 workers. Industries which have a high concentration of labour have been highlighted. It would be interesting to see if concentration of work force has in any way facilitated the labour movement in those sectors.
Other statistics, however, indicate a higher concentration of industrial workers so that 36.7% of workers in 1987-88 were employed in factories which had more than 1000 workers (Calculated from A.N. Agarwal et al., 'India Economic Information Year Book', 1991-92, Delhi).
Summing up
Two points emerging from the above discussion may have serious implications for the labour movement: firstly, that petty producers (non-wage earners) account for nearly 40% of the productive population; secondly, of all wage workers the industrial proletariat accounts for less than 11%. This in effect implies that capitalist development is yet to displace precapitalist forms of production and that socialization of production that forms the basis for socialist revolution is still a distant goal. In other words the overwhelmingly large segment of the labouring people in the country cannot be treated as having been objectively placed in the role of vanguard of social change. In fact of all wage workers as noted above, the rural proletariat which is by its very nature dispersed and largely unorganized accounts for about 44%. Further, those associated with trading, transport and other activities account for about 37% of all wage workers. These too are very dispersed and poorly organised. Thus nearly 80% of the proletariat is engaged in non-factory sectors.
The significance of the numerical preponderance of the non-industrial proletariat needs to be seriously considered. It is obvious that there is a great responsibility on the workers of the more concentrated sectors to organise themselves and provide leadership to the large majority of unorganized workers. They also have the responsibility of taking up the causes of the marginal farmers and tribal people and winning them over to the cause of socialist transformation. It also indicates the low degree of socialization of production whose implications for the political programme of the working class need special consideration.
Movement of Wages
There is a somewhat neglected section in the Year Book which gives the movement of real wages of workers (p.37). For some technical reasons it is not possible to compare the figures from 1961 but it is possible to compare the figures from 1983 to 1995.
Real earnings of employees in the manufacturing sector 1983-1995 (for workers earning less than Rs.1600 pm) (Base year – 1983) | ||
Year | Earnings | |
---|---|---|
1983 | 100 | |
1984 | 98 | |
1985 | 92 | |
1986 | 88 | |
1987 | 83 | |
1988 | 82 | |
1989 | 69 | |
1990 | 70 | |
1991 | 69 | |
1992 | 59 | |
1993 | 60 | |
1994 | 51 | |
1995 | 46 |
This offers a clear proof of erosion of workers' real earnings, which in a decade has fallen drastically to less than half. The steep fall seems to have occurred after 1992 coinciding with the onset of the new phase of globalization and the strengthening of the communal forces in the country.
The year 1973-74 saw the heyday of the Indian labour movement; as many as 47% of all workers in the country were involved in strike action in 1974. Worker's action i.e., strikes accounted for as many as 83.5% of all mandays lost due to industrial disputes. In other words workers held the initiative in industrial action that year. The very next year saw the imposition of internal emergency and the strikes were ruthlessly suppressed and the initiative returned to the capitalists. Thus in the last year of the emergency mandays lost
http://www.revolutionarydemocracy.org/rdv6n2/labour.htm
Abani Mukherji
Indian Labour Movement:
A Review of the Situation
Source: The Communist Review, September 1922, Vol. 3, No. 5.
Publisher: Communist Party of Great Britain
Transcription/Markup: Brian Reid
Public Domain: Marxists Internet Archive (2006). You may freely copy, distribute, display and perform this work; as well as make derivative and commercial works. Please credit "Marxists Internet Archive" as your source.
THERE exists in India a powerfully organised Labour movement. The secretary of the Indian Labour Federation, or "Standing Committee of the All-India Trade Union Congress," as it is called, is Mr. Chiman Lal, who claimed that under this federation are combined 97 unions, with 1,500,000 members. These unions embrace nearly all the industries of the country. The leading organisation is the Railwaymen's Union, which has organised 50 per cent. of those employed, which is about 325,000 workers. The second in importance is the Textile Workers' Union, and the third is the Miners' Union.
Trade Unionism is a new thing in India. Before 1918 it did not exist except for a few unions for white workers. It was out of the strike movement of 1918 that the unions came into existence. The first one was organised at Madras by Mr. B. P. Wadia. Since then the progress of the movement has been both rapid and successful. The amount of success can be determined from the huge number of organised members, representing about 25 per cent. of the total number of the factory-going workers. This growth indicates that the Indian labourers are speedily realising the need for their own organisations.
It is important to observe that the Indian Labour movement is rapidly becoming revolutionary. To illustrate this, take, for example, the number of strikes that have taken place in India since 1918, the history of which are written in blood. Strikes were common in the Indian factories, but they were never of a country-wide nature, and did not demonstrate any solidarity among the workers. The first instance of such a strike took place in Bombay, known as the General Strike, in which 120,000 workers, mostly textile operators, took part. The solidarity of the masses on that occasion was shown by sympathetic strikes in other parts of the country. The strike was practically lost. About 200 workers were shot down by the soldiers. There were no proletarian leaders at that time, and the Nationalist middle-class politicians who took the lead utilised the strike for demonstration purposes. Similarly, another strike of several hundred thousand plantation workers took place in Assam, about 2,000 miles from Bombay, three years after the general strike, and it, too, was lost, due to the Nationalist leaders exploiting it for political purposes. Once again strikers were killed. According to the report of the Government Commission appointed to inquire into the reason for labour unrest in India it was shown that in nine months, from July, 1920, to March, 1921, in the province of Bengal, 137 strikes took place, reacting on all branches of industry. 244,180 workers took part in these strikes, and 2,631,488 working days were lost. Of these strikes 110 were for higher wages and 13 were for the continuation of former strikes. A note issued by the labour officer of Bombay states that in three months, from April to June, 1921, 33 strikes took place in that town alone, involving 240,000 workers, with a loss of 500,000 working days. About the middle of the same year a strike of 20,000 workers took place in the town of Madras. To suppress the labour movement in Madras, the Government, with the help of the capitalists, tried by all means to subdue the labourers. They imprisoned strikers, burnt their houses, and fined the unions, but the labourers were very determined in their demands. The strike ended in a compromise due to the reformist character of the leaders. This strike movement was country wide. In the north, in 1920, a strike of over 60,000 railway workers took place; the printers struck work to show their sympathy with their railroad comrades. Out of this strike was organised the Punjab Labour Union. The strike of the Cawnpore leather and textile workers, altogether about 30,000 men, is also noteworthy. They organised themselves and put forward 21 demands, including increased wages, unemployment insurance, and a share in profits. In short, in the year 1920, altogether 2,500,000 workers were involved in the strike movement, and in many cases it ended in bloodshed. It is estimated that altogether there were 1,000 workers wounded and killed.
An important fact is that this strike agitation was not a class-conscious revolutionary movement, but it does mark the beginning of the class struggle in India. To illustrate the growth of capitalism in India I quote the following figures from the 15 volumes of official statistics for the year 1917. In the year 1917 there were 8,000 mills and workshops, of which 67 per cent. were driven by mechanical power. The railway and tramways amount to 38,000 miles. The total industrial production was valued at £261,000,000. This is excluding handicraft work and including railways. The persons taking part in this production numbered 3,500,000; thus the production per person employed was £74 for the year. In the United Kingdom in 1907 the production per person amounted to £100. Of these workers 327,000 formed the bureaucracy, both native and Europeans; the rest were wage earners.
The sum paid as wages amounted only to £27,000,000, or little over 10 per cent. of the production, as against 53 per cent. in the United Kingdom and 50 per cent. in the United States in 1907. The salaries paid amounted to £33,000,000, or £6,000,000 more than the wages of the proletarians. These salaries are due to the existence of about 28,000 European workers, whom the capitalists have to bribe with high wages in order to keep them on their side and to keep them out of the Labour movement and away from the Indian native workers. Deducting 33 per cent. of the total production as cost of material and 23 per cent. from wages and salary, we can fix the profit at 44 per cent. on an average. To support this the following figures from the Labour Review of November last may prove interesting. In one year the Indian cotton textile mills profited l00 per cent. of its outlayed capital. One factory in 1920 declared a dividend of 160 per cent. on an inflated capital of £300,000, while the dividend declared becomes 500 per cent. when the original capital invested by the shareholders is taken into account, which was only £100,000. Another mill, the Ring Mills, declared a dividend of 365 per cent. in the same year. Over a dozen mills have given dividends between l00 per cent. and 300 per cent., and quite a number between 50 per cent. and l00 per cent. The same thing was also shown in the jute and textile industry, where numerous, mills declared dividends from 150 to 330 per cent. Dividends in sugar works were about 60 per cent., and in the oil and flour mills 140 per cent. That of publishing houses was l00 per cent., etc.
The size and importance of the various industries can be judged from the following table:—
INDUSTRY.
Cotton textile, 284 mills, but capital only known for 264, amounted to £19,000,000.
Jute textile, 76 mills, but capital only known for 76, amounted to £10,000,000.
Coal mining, 850 mines, but capital only known for 236, amounted to £6,000,000.
Plantations, 1,300 plantations, but capital only known for 300, amounted to £22,000.
Railway capital at the end of the year 1917-18 was £366,436,000, and the percentage of return on capital was very high. The net gain from the railways to the Government alone was £10,000,000.
The coal mining industry in that year produced £4,512,000. Deducting from this one and a half per cent. to cover the cost of material, which is the rate in the United Kingdom, Germany and France, we get the income of the mines at £3,902,880; of this 25 per cent. or £978,036 was paid as wages against 56 per cent. in France and 59 per cent. in Germany before the war. The salaries amounted to £350,000, and the rest was profit. The coal mines show dividends which rise to 120 per cent. In one case the average dividend for 15 years was 95 per cent. The cheapness of woman labour has already caused their wholesale introduction into all industrial spheres. In one year 43 per cent. of the coal mine workers were women. No less than 40,030 women and 665 children were employed underground, and 18,872 women and 2,283 children worked on the top. The earnings of the miners were £10 8s. per year as against £55 in France and £57 in Germany before the war. The average wages of the mine workers were £6 in 1917, which was raised to £7 5s. in 1918, or 6d. per working-day. The cheapness of labour in India has kept the modern improved machines out of the Indian mines; as a result of obsolete methods 30 per cent. of the labour is wasted.
Again, in the tea gardens, the output amounted to £12,400,000, and putting 20 per cent. aside as cost of material, we get £9,920,000 as the income. The workers numbered 703,585, of whom 640,267 are women. The wages paid amounted to £3,579,952, or 35 per cent. of the income. The salaries paid amounted to 60 per cent. of the amount paid in wages, and two-thirds of these salaries were drawn by a few European supervisors. The average wage of a woman worker in the tea plantations was £5 per year.
Eighty per cent. of the factory capital, 30 per cent. of the plantation capital, 40 per cent. of the mining capital, and 2 per cent. of the railway capital is Indian. Three-fourths of the rest is British and the rest international, mostly American. The following figures will show the increase of the Indian industry since 1917:—"The average total capital of the new companies registered in India year by year was approximately £12,000,000 per year for the years 1910-14. In the first three years of the war the average fell to £6,000,000 per year. After the war it rose to the enormous figure of £183,000,000, and in 1920, to March, 1921, owing to the extraordinary ordinary disturbances in the exchange rate, it went up to £100,000,000."
On the face of these figures it is needless to argue about the class struggle in India. These figures prove that the struggle between labour and capital in India is a struggle of a twofold character—it is both a class struggle against native capitalists and a fight against British imperialism. This explains why the class war sometimes appears in a national form.
There is an idea that the Indian workers are semi-proletarian; and that they have connection with their native villages, where they can take refuge in case of long trouble. To disprove this I quote the following written by a Indian trade union secretary who inquired into the matter after the plantation workers' strike of last year. He writes:
"The nationalists repatriated the workers in their villages, with the result that all of them returned to the gardens and the strike was lost. I found that the repatriation of the coolies had practically resulted in sending them to death. Most of the returning emigrants had no homes, no lands. Many of them had been born in the gardens and did not even know the names of their villages. The village people absolutely refuse to have anything to do with them. The villagers find it difficult to keep themselves from starvation, and therefore feeding the returned coolies is an impossibility. In the villages there are no industries in which these men might be employed, nor any kind of work can be found for the day labourers. It is futile to bring away the coolies from the gardens and send them to the villages, because 50 or 60 men are leaving daily for the gardens owing to the famine conditions prevailing there."
Indian labour can be divided into five groups: (1) The land labourers, who are the largest in number—about 30,000,000. Their chronic poverty, continual semi-starvation, are well known; it is bitterly illustrated by the fact that their earnings, including unemployed days, are between £4 and £6 per year. (2) The plantation workers, whom I have already described. The planters are organised, and consequently their misery is not growing. (3) The mine workers. In the mining districts rice is the main food of the miners. The price of clothing has gone up three times, but the wages have remained the same since 1918; the average wage is 6d. per day, and 300 working days a year. (4) The handicraft workers, numbering about 2,500,000 hand weavers and 8,700,000 metal wood, ceramic, and other hand labourers. Their income, according to the calculation of the India Industrial Commission of 1916-18, was, weavers £2 7s. per year, and others £4 a year. (5) The factory going workers, who stand as the advance guard of the labour movement. To a certain extent the second and third groups are still the mainstay of the Nationalist leaders, whose opportunism is forcing the workers towards class-consciousness, as was proven during the plantation strikes of last year.
The main principles of the Indian Trade Unions are as follow:—(1) The status of labour as a labourer, his relation to his employer, and effect on the economic and industrial life of the country. (2) The status of the labourer as a citizen, as related to the political movements and its result. (3) The status of the labourer in the industrial world, which has been rising ever since the Russian Revolution.
These extracts are from the Madras Labour Union's programme. It is said that the Union started with the first principle. "It was when the work of education was begun, when several questions were submitted by the Union men, that the second factor emerged. . . . In dealing with the second we were face to face with the necessity of recognising the third factor." It is further given out that in formulating these principles very little help was received from the educated class. "The workpeople themselves, with a culture of their own, vaguely felt, but were unable to express what was passing in their mind, and what was bound up in the three factors described above."
The value of solidarity has already been realised by the Indian workers. The president of the Madras Union, Mr. Wadia, writes "Indian labour understands that men working on the railway in Punjab, in the mills of Bombay, in the engineering shops of Bengal, are no better off than those working in the mills of Messrs. Binney & Co., Madras. The distance of a few hundred miles makes no difference in their solidarity, which alone will lead them to the final victory, the destruction of wage slavery." About the International he says: "The fate of the International is in the balance, what with the activities of the Second and Third, but as soon as a properly constituted International begins to work the Indian labourers will naturally ally themselves with the movement. The labourers, by themselves, are not sufficiently organised; they are not educated in the modern method of political struggle, and, therefore, if a long, weary fight between labour and capital, between landlordism and peasantry, is to be avoided, the Indian labourer must gain moral and other support from his comrades and brothers in other parts of the world."
The Unions in India were not recognised by the capitalists at the beginning, and the government backed their attitude. But the strength of the movement has forced recognition upon both of them. In November, when the Second Congress was to have taken place, the Mine Owners' Association opposed it and requested the Government to send the military to disperse it, but the Government refused. Consequently the conference went on unhampered, and the clever bourgeoisie, finding it not possible to fight labour face to face, adopted the diplomatic method and sent a deputation to make friendly relations with the workers, but not with the labour leaders. This capitalist deputation apologised for its former opposition and agreed to adopt 44 hours a week instead of 72, in addition to some other minor concessions.
The direction of this potential revolutionary labour movement in India is in the hands of people who can be classed into four groups (1) The Nationalists; (2) The Reformists; (3) The Government and capitalist agents; and (4) the leaders who have come out from the ranks of the labouring class. (1) The foremost of the Nationalist politicians interested in labour is Mr. Lajpat Rai. He is the veteran centrist leader, a rich advocate, a journalist and landowner, but very orthodox. The same Mr. Rai in the year 1920 shamelessly condemned the printers' strike of Lahore because it touched his pocket. Despite this, in 1921, a year afterwards, he was elected as president of the First All-Indian Trade Union Congress. The union leaders who elected him to preside, by this action alone, demonstrated their real character. Another Nationalist labour leader is Mr. B. K. Chakrabarty, an advocate, landowner, and multimillionaire. He was the president of the Calcutta Tramway Workers' Union, one of the most virile groups of Indian workers. Dr. R. K. Mukherji, a bourgeoisie economist and professor, is a leader of a small national centrist group. He was delegated from the Bengal Unions to the First Congress of the Trade Unions. Some dozen other such advocates and professors can be shown to be interested in trade unionism; it is the fashion, at present, to become a labour leader in India. This is due to the fact that the nationalists understand the power of the industrial labour movement and want to control it; besides, it wants to frighten the Government with the organised force of the unions for political purpose.
(2) Mr. Gandhi, the now imprisoned leader of the Indian nationalists, also tried his hand on the trade unions, but without much success. He left the labour field after the workers of the textile mills of Ahmedabad, Gandhi's native town, refused to break the strike on terms agreed between himself and the nationalist mill owners. He said: "We must not tamper with the labourers. It is dangerous to make political use of the factory proletariat" (The Times, May, 1921).
The most prominent leader of the labour movement is Mr. B. P. Wadia. It was he who first started the labour unions in India. Wadia is an ex-member of the Indian Home Rule League (a moderate political organisation with a programme to achieve self-government by gradual concessional process) and a well-known theosophist. He is president of five virile unions in Madras. He says that the economic aim of the Indian labour movement is not only to get higher wages, etc., but the ultimate destruction of wage slavery. In his opinion the international labour movement is too materialistic, and lacks a soul. This spiritual task, he contends, is a special one left for the Indian workers to develop. His reformist attitude became most marked in his evidence on labour reform, given before the Joint Parliamentary Committee, which collected material to find the best means of introducing political reforms into India. He said: "It is my considered opinion that Indian Ministers are better fitted to carry out adequate factory reforms than the Official Executive."
The next leader in importance is the reformist Indian Labour leader, Mr. Joseph Baptista. He was president of the Second Congress of the Indian Trade Union Congress. Four months before the Congress, on the 29th July, he addressed a mass meeting requesting them to follow the pacificism preached by Gandhi. He was met with cries of "Shame." The chairman of this meeting was Mr. Jamnadas Dwarkadas, a well known member of the Bombay Mill Owners' Association, and among those present on the platform was Mr. R. Williams, chief Publicity Bureau officer of the Government of Bombay. This bureau was specially created to fight the revolutionary tendency of the masses. Mr. Baptista came to the forefront after Colonel Wedgewood's visit to India, and though we do not know of any relation or agreement between them we know that Mr. Baptista is following the policy of the very moderate I.L.P. Labour M.P., and is introducing Fabian Socialism to India. In his presidential speech he declared that: "The political policy of the Congress must steer clear of extreme Individualism and Bolshevism and follow the golden path of Fabian Socialism."
The Government and capitalist agent types of labour leaders are Mr. Lokhande, of Bombay; Dr. Nair, of Madras, and Mr. Jones, of Calcutta. Jones was the general secretary of the All-Indian Railwaymen's union. He was the J. H. Thomas of India, and he had to resign because his treachery became too well known. The charges against the first two are so well known that Comrade Saklatvala had to warn everybody against them recently in the Labour Monthly. Regarding these types of labour leaders, there are very few Indians amongst them; they are mostly Europeans residing in India. We want European assistance, but we do not desire moderate Labourism of the I.L.P. brand. It is here that the British Communist Party can and ought to help us directly.
The labour leaders who have come from the masses themselves are not very well known. One who has become prominent is Comrade Viswanandda, leader of the miners of Bihar. At the Second Congress he declared that "If the present misery of the workers of India is allowed to continue nothing will stop Bolshevism. Let them take due warning, because the Indian workers are determined to become the rightful owners and rulers of the wealth produced by their labour."
These mass leaders lack a definite viewpoint. They have picked up, here and there, some news of the Russian revolution from the bourgeoisie newspapers, and a few Communist ideas have influenced them. But they are our men, and we ought to gather them together for the Indian Communist Party and then push them to take leadership of the unions. This is the immediate task of the Party.
But in India there is no strong Communist Party, and it will take some time to create an effective one. The Internationals are not yet in touch with India, and at the present rate no one knows how long it will take them to reach the native masses. On the other hand, as I have shown, the Indian Fabians and moderates are spending all their energy to capture the masses. That they are somewhat successful may be seen in the growing timidity of the strike movement. The Indian workers have been flattered by the moderate labour leaders, and have been urged to be contented with the little increases in wages, etc., which were won during the time of the great strikes.
The British Labour Party is also busy with the Indian workers and their unions. These British leaders must understand, however, that the industrial victories of the English workers can only be maintained by co-operation with the Indian masses. For their own interests, therefore, the British workers must stand on common ground with their coloured comrades of India. The tie of economic interests that binds them is very close. The British Labour Party, which expects to control the governing power very soon, must stop fooling the Indian masses by pushing the Baptista moderate type of labour leader. On the other hand the organising radical societies in England for helping the Indian workers must show the International comrades that the real driving force in Indian emancipation rests in the organised power of the native masses.
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Tough job awaits Congress in Kerala; CM resigns
Achuthanandan resigns, asks new govt to keep out those facing criminal charges and "womanisers"
Thiruvananthapuram: With UDF securing power with a thin majority of 72 seats in the 140-member Assembly in Kerala, tough administrative and organisational tasks are awaiting Congress as the lead partner in the bipolar scenario.
Running the combine within and outside the assembly will be a delicate job for Congress leaders, including Chief Ministerial probable Oommen Chandy who will have to put up with pressures from partners while offering a "stable, pro-people and development-oriented rule" as promised to voters.
The presence of CPI(M)-led LDF as a strong and vigilant opposition will be a compelling factor for the UDF to be doubly cautious in its every move in the coming days.
Though the Congress and its partners have exuded confidence that they would run the government cohesively, political observers here feel that problems might crop up right from the ministry-formation process.
According to observers, Congress's tally of 38 seats, which stood far short of expectations, could be exploited by partners like the Kerala Congress (Mani faction) to drive a hard bargain during ministry-formation.
The difference of votes between the two coalitions is slightly above 1.50 lakh. By preliminary estimates, the UDF secured 45.61 per cent and LDF 44.9 per cent of the polled votes. BJP, whose hopes of opening account in the assembly were dashed once again, secured 6.06 per cent, which is two per cent higher than its vote share in the 2006 polls.
For the Congress, keeping the right class, caste and religious composition while choosing its members could be a difficult task as two of its key allies--Kerala Congress (M) and Indian Union Muslim League-are minority-dominated parties.
Besides, smaller parties like Kerala Congress (Jacob), Kerala Congress (B) and RSP (B), which have one one seat each, will also have to be rewarded with ministerial berth as the support of every single MLA is crucial for the survival of the ministry.
Accepting the defeat, the CPI(M) has made it clear that the LDF would sit in opposition and would not encourage any party to cross from the rival side.
But, going by the state's political history, this would not mean that the opposition would allow the UDF to run the government smoothly for long with such a wafer-thin majority.
As the opposition, most probably under the leadership of outgoing Chief Minister V S Achuthanandan, the LDF is certain to closely watch the government without letting go of any chance to "oppose and expose" the rival.
A striking feature of the verdict this time is that while the Congress's performance was dismal all over the state, the UDF could scrape through on the good showing put up by IUML and KC (M) in their respective strongholds.
Though there seems no immediate threat to prospects of Oommen Chandy emerging as the Chief Minister, the verdict could throw up new power centres in the party in the long run.
Congress-watchers in the state feel that weakening of the Chandy-Ramesh Chennithala (KPCC chief) axis in the Congress could lead to leaders like V M Sudheeran and K Muraleedharan to emerge stronger.
As the second largest partner, IUML emerged with flying colours in its bastions in north Kerala, including the Muslim-dominated Malappuram district, bagging 20 of the 24 seats it contested.
The Christian-dominated KC(M) also did well in the central districts like Kottayam winning nine of the 15 seats it contested.Ths scenario would embolden these parties to ask for key portfolios.
On the contrary, LDF, which won 68 seats, has done well and one of the factors attributed to its performance by observers is widespread reservation over the dominance of community-oriented parties in the UDF. CPIM as lead partner emerged the single largest party winning 45 seats.
There were allegations that the merger of Kerala Congress Joseph and Mani factions last year had the blessings of the sections of the powerful Catholic church in the state.
According to observers, this could have resulted in consolidation of majority community votes in favour of the LDF in many parts of the state.
The IUML, which suffered heavy losses in 2006, made a spectacular comeback despite the party top leader P K Kunhalikutty coming once again under the cloud of the infamous 'icecream parlour sex scam.'
The party could also beat back the challenges posed by Muslim radical outfits like SDPI and Jamaat-e-Islami pledging support to the LDF.
SDPI, political arm of the National Democratic Front (NDF), whose activists are allegedly behind the case of chopping off the hand of a college lecturer last year, had put up its candidates mostly in Malabar region with the aim of containing the IUML's influence.
Achuthanandan resigns, asks new govt to keep tainted out
A day after the Left Democratic Front led by him lost the assembly elections, V.S. Achuthanandan resigned as Kerala chief minister Saturday. Addressing the media later, the veteran leader said the new government should ensure that those facing criminal charges and "womanisers" are kept out. Achuthanandan submitted his resignation to Governor R.S. Gavai.
The Congress-led United Democratic Front barely managed to scrape through and got 72 seats in the 140-member state assembly, just one seat more than the required minimum to run a government. The outgoing LDF secured 68 seats.
"Under no circumstances should those with a tainted track record such as the corrupt and womanisers be thrust upon the people of Kerala," Achuthanandan told reporters who had gathered at his official residence here Saturday afternoon.
Asked to elaborate on whether he was pointing to people like Indian Union Muslim League leader P.K. Kunhalikutty, who is alleged to be involved in the Kozhikode ice cream sex case scandal, he shot back saying, "I have already said what I wanted to say."
The Congress-led UDF, which has begun informal talks on formation of the next government, is certain to have Kunhalikutty as a minister as well as T.M. Jacob (Kerala Congress-Jacob).
Achuthanandan has been waging a war against both these leaders and early this year launched a re-investigation into the alleged sex scandal case following fresh revelations that Kunhalikutty managed to escape the law in this case by allegedly influencing two judges.
Incidentally, early this month both the now retired judges were questioned by the new police probe team that was appointed following Achuthanandan's intervention.
Jacob also is facing a corruption case over alleged irregularities in the work of an irrigation project which was cleared by him while he was minister in a previous Congress-led government.
Asked if he would take up the role of leader of opposition if asked by his CPI-M party, Achuthanandan said: "Naturally, why is this question being asked."
His effective intervention as opposition leader during 2001-06 helped him hugely to become the third CPI-M chief minister to head a government in the state.
He also added that his party will introspect on why party candidates did not do as expected in the northern districts of Kannur and Kasargode. He has been asked by the governor to remain as caretaker chief minister till the next government assumes office, which is expected to take place early next week.
Source: PTI & IANS
WB polls: Congress added insult to Left party''s injury
New Delhi: Trinamool Congress might have single-handedly thrashed CPI(M) and its allies in West Bengal elections but it is Congress which has added insult to the Left party's injury by winning more seats in the state.
However, CPI(M) has something to cheer for in Kerala where it lost power by a whisker by becoming the single- largest party in the state, getting seven more seats than their principal rival which leads the UDF coalition.
At its strong-hold for 34 years in Bengal, the CPI(M) entered the hall of ignominy by falling behind Congress by two seats this time.
In its worst drubbing in Bengal, CPI(M) won only 40 seats, down from last time's 176 while Congress won 42 seats this time, a 100 per cent increase in its tally from 21 in 2006.
Left allies also had a bad showing with CPI winning only two seats this time while it won eight last time. The Forward Bloc, which won 23 last time, could manage to drive home in 11 seats only.
In Kerala, the Congress combine has won with a wafer thin majority winning 72 seats out of the total 140, and Congress has won 38 seats, 14 up from 2006's figure.
However, the LDF major CPI(M) has wrested 47 seats this time, including two independents it backed. Last elections, CPI(M) had won 65 seats, including four independents it backed, while its partners won another 39 seats to help the alliance touch 100 seats.
This situation, however, does not provide any headache for the Governor as the pre-poll alliance of UDF has a clear majority.
Also, senior CPI(M) leaders V S Achutanandan and Pinarayi Vijayan have said the LDF would function as an effective opposition, fighting corruption and the 'anti-people' policies of the government.
Attributing UDF's victory to "polarisation of communal forces", Achutanandan said the LDF would not try to form a government by exploiting the slender UDF victory margin.
"We accept the people's verdict. We will sit in the Opposition and continue to fight corruption," the 87-year-old veteran Marxist leader said.
The party position in Kerala: Muslim League 20, CPI 13, Kerala Congress-M 9, JD-S 4, SJ-D 2, Kerala Congress-J 1, KRSP-B 1, KC-B 1, NCP 2, RSP 2 and Independents (Left) 2.
The CPI(M) maintained that the results of West Bengal and Kerala was a disappointment for the "Left and democratic forces" but this will not make the Left policies and programmes "irrelevant" for the country.
Source: PTI
Mamata Banerjee
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Jaya to stake claim tomorrow to form govt
Chennai: Armed with the landslide mandate in the Assembly polls, AIADMK chief J Jayalalitha will on Sunday call on Governor S S Barnala and formally stake her claim to form the government in Tamil Nadu.
"I am meeting the Governor tomorrow (to stake claim for forming the government)," she told reporters here a day after AIADMK scripted a spectacular comeback securing an absolute majority on its own with a tally of 150 seats in the 234-member Assembly.
63-year old Jayalalitha, set to become Chief Minister for the third time, said details about her swearing-in ceremony would be announced on Sunday after her meeting with Barnala.
The AIADMK-led front comprising of DMDK and Left parties besides others unseated DMK from power bagging 200 seats.
On the massive mandate, she said the people of the state had reposed "enormous trust" and faith in the front and her party would live up to their expectations fulfilling all its electoral promises.
"It is not just a negative vote against DMK but a decisive vote against DMK," she said commenting on the April 13 poll outcome which saw the DMK being relegated to the third place with just 23 seats behind DMDK.
Faced with the poll rout, Chief Minister M Karunanidhi had yesterday submitted the resignation of his Council of Ministers to the Governor, who had asked him to continue in office till alternative arrangements were made.
Jayalalitha said people wanted to "return to the good old days of her 2001-06 regime," which she claimed had delivered good administration.
The AIADMK legislature party is likely to meet here tomorrow to elect Jayalalitha as its leader.
Source: PTI
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