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Exports fall in four years of Modi govt, in 2017 export-to-GDP ratio was lowest since 2005

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Exports fall in four years of Modi govt, in 2017 export-to-GDP ratio was lowest since 2005

Exports of goods to Japan and countries in Africa and Latin America dropped over the four years of Narendra Modi government and grew at single digits to other regions, an IndiaSpend analysis of government data has found.

In yet another blow to Modi government’s propaganda of all round progress, the analysis found that in contrast to its performance in this aspect, the 10 years of the two United Progressive Alliance (UPA-1 and UPA-2) administrations saw 11 percent to 33 percent growth in India’s merchandise exports. Services exports are excluded from this analysis because they are limited to certain geographies because of trade agreements, said IndiaSpend.

Moreover, this decline cannot be attributed to the global trend. The growth rate of goods traded across the world grew 3 percent over the four years to 2018 and grew by 3.3 percent (2009 to 2013) – according to International Monetary Fund.

Various experts attributed the Indian export decline to domestic factors, such as demonetisation, a new goods and services tax (GST) and a new bankruptcy code, said IndiaSpend.

Merchandise exports to China grew between 2014 and 2018 but at less than 1 percent while imports grew at 11 percent; during 10 years of UPA rule, exports to China grew 13 percent and imports 30 percent.

India’s exports to Africa between 2014 and 2018 dipped by 4.22 percent and imports increased 1 percent; during 10 years of UPA rule, exports to Africa increased 22 percent and imports 59 percent.

Overall Indian imports of merchandise grew by 1.6 percent to $465 billion over this period.

India’s exports-to-gross-domestic-product (GDP) ratio at 11.44 percent in 2017 was the lowest since 2005, according to the International Monetary Fund (IMF) Outlook Report 2018.

High trade deficit

Slowing exports and increase in imports (an average annual increase of 1.6 percent from 2014-15 to 2017-18) has pushed the trade deficit from $137 billion in 2014-15 to $162 billion in 2017-18, the highest since 2012-13.

“We are facing serious headwinds at a time when the global economy post 2008 had become extremely fragile,” commerce minister Suresh Prabhu was quoted as saying in The Indian Express on 18 June, 2018.

India’s trade openness – the sum of exports and imports to GDP – was 27 percent in 2016, according to the IMF database, compared to an all-time high of 43 percent in 2012.  Trade openness is an indicator of the economy’s participation in global trade.

“The first of the policy moves was the unique demonetisation experiment,” Ruchir Sharma, chief global strategist at Morgan Stanley, wrote in The Times of India on 4 October, 2017.

“The second was the goods and services tax, which was supposed to bring India in line with global standards but instead added typically Indian layers of complexity. These policies disrupted local businesses, including exporters. Imports have surged to meet consumer demand, widening the trade deficit and cutting into GDP growth.”

The view was echoed by economists Dharmakirti Joshi, Adhish Verma and Pankhuri Tandon. “The implementation of the goods and services tax and associated glitches have had an impact, particularly on small and medium enterprises – evident in low export growth in gems and jewellery, textiles, and leather sectors,” they wrote in a report for Crisil, a ratings agency.

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Air India sacks Phuket-Delhi flight pilot after failing drug test

Air India has terminated the Phuket-Delhi flight pilot after a confirmatory test found a psychoactive substance following the August 4 incident.

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Air India has terminated the employment of the pilot-in-command of a Phuket-Delhi flight after he tested positive for a psychoactive substance.

The pilot was in command of flight AI2379, which was travelling from Phuket to Delhi on August 4 when the aircraft suddenly lost altitude over Odisha. The incident left 24 passengers injured.

Air India said the termination was in line with its zero-tolerance policy regarding safety violations and regulatory requirements.

Air India terminates pilot with immediate effect

In a statement, the Tata-owned airline said the pilot-in-command had tested positive for a psychoactive substance.

The airline said that, considering its zero-tolerance approach to violations related to safety, fitness and regulatory requirements, the pilot’s employment had been terminated with immediate effect.

Air India also said it continues to cooperate fully with the investigation into the incident and has provided access to relevant operational, maintenance and technical records.

What happened on the Phuket-Delhi flight?

According to the preliminary findings of the Aircraft Accident Investigation Bureau (AAIB), the Airbus A320 was carrying 145 people when it experienced the near-simultaneous loss of all three hydraulic systems while cruising at around 36,000 feet.

The technical failure resulted in the autopilot disconnecting and triggered a brief stall warning. The aircraft subsequently lost altitude, resulting in injuries to 24 passengers.

The preliminary report also noted that the pilot tested non-negative for a psychoactive substance in a confirmatory test.

However, the report did not establish that the pilot’s drug-test result caused or contributed to the hydraulic system failure or the subsequent loss of altitude.

AAIB recommends action over psychoactive substance finding

The AAIB described the confirmation of psychoactive substance use as a serious concern and recommended that the Directorate General of Civil Aviation (DGCA) take appropriate action against the pilot on priority.

The investigation into the technical and other aspects of the incident is still underway.

The preliminary report also noted that the co-pilot was flying the aircraft when the incident occurred and attempted to bring the situation under control.

Air India said safety remains its highest priority and that its pilots undergo training, proficiency checks, medical examinations and other regulatory assessments in accordance with applicable requirements.

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India offers forensic DNA support to identify Nepal flood victims

India will make forensic laboratory facilities available for DNA profiling of first-degree relatives of people missing after Nepal’s August 26 flash floods.

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India has offered forensic laboratory support to help identify people who remain missing after the devastating flash floods in Nepal.

The Ministry of External Affairs (MEA) said central and state forensic laboratories in India will make their DNA profiling facilities available for first-degree biological relatives of people missing after the August 26 flash floods in Nepal.

DNA samples can be provided by relatives in India

According to the MEA, first-degree biological relatives living in India can have their biological samples collected and DNA profiles prepared.

The relatives can include a person’s father, mother, son, daughter or sibling. DNA profiling can be carried out at Central Forensic Science Laboratories (CFSLs), State Forensic Science Laboratories (SFSLs), laboratories of the National Forensic Sciences University (NFSU), and NABL-accredited laboratories with DNA profiling capabilities.

The initiative is intended to support Nepal’s ongoing process of identifying mortal remains recovered after the flash floods.

DNA profiles to be compared with unidentified remains

The MEA said the DNA profiling may use Autosomal STR DNA profiling, as advised by Nepal Police, subject to the technical requirements communicated by the Nepali authorities.

Once prepared, DNA profiles and the preliminary information required by Nepalese authorities can be sent to Nepal Police by email for comparison with DNA profiles obtained from unidentified mortal remains.

The Indian Embassy in Kathmandu will also facilitate coordination, with copies of the DNA profiles to be shared with the embassy for this purpose.

Nepal flood death toll rises

The death toll from the flash floods has risen to at least 1,259, according to Nepalese authorities, after rescue workers recovered additional bodies from affected areas.

More than 12,000 people have been rescued, while around 5,000 people remain missing as search and rescue operations continue.

The flash floods, which followed an ice-rock avalanche near the Nepal-Tibet border, caused extensive destruction across towns and villages in northern and central Nepal.

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PM Modi hails ISRO after successful GSLV-F17 launch, calls it proud moment

PM Modi congratulated ISRO after GSLV-F17 successfully launched EOS-05, calling the achievement a proud moment for India.

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Prime Minister Narendra Modi on Friday congratulated the Indian Space Research Organisation (ISRO) after the successful launch of the GSLV-F17 rocket carrying the EOS-05 Earth observation satellite, describing the achievement as a proud moment for the nation.

The GSLV-F17 lifted off at 2:55 a.m. IST from the Satish Dhawan Space Centre in Sriharikota, Andhra Pradesh. The EOS-05 satellite was subsequently placed into its designated sub-geosynchronous transfer orbit.

PM Modi praises ISRO’s growing capabilities

In a post on X, PM Modi said the successful mission reflected the excellence, innovation and expanding capabilities of India’s space sector.

He also highlighted the growing partnership between ISRO and Indian industry, saying it was strengthening India’s space programme and expanding capabilities across the wider space ecosystem.

The prime minister described the successful launch of GSLV-F17 carrying EOS-05 as another outstanding achievement by ISRO and a matter of national pride.

EOS-05 strengthens earth observation capabilities

According to the report, EOS-05 is India’s first-ever imaging satellite from geosynchronous orbit. The satellite is designed to provide continuous observation of the country from an altitude of nearly 36,000 km above Earth.

The mission is expected to strengthen India’s earth observation capabilities and support advanced imaging and observation applications.

ISRO Chairman Dr V Narayanan expressed satisfaction with the mission, saying the satellite was precisely injected into its intended orbit.

Mission Director Thomas Kurian described the launch as a significant milestone for the GSLV programme. He said it was the 19th flight of the GSLV and noted that EOS-05 is the heaviest satellite the launch vehicle has placed into a geosynchronous transfer orbit or sub-GTO orbit.

GSLV-F17 launch vehicle details

The GSLV-F17 stands 51.7 metres tall and has an approximate liftoff mass of 420.5 tonnes.

Science and Technology Minister Jitendra Singh also congratulated the ISRO team following the successful mission. He described EOS-05 as a state-of-the-art Earth observation satellite capable of advanced imaging across visible, infrared, multispectral and hyperspectral bands.

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