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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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Zomato delivery boy killed in hit-and-run accident in South West Delhi

DCP (South West) Surendra Choudhary said that the deceased has been identified as Harendra, a resident of RK Puram.

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Zomato delivery boy killed in hit-and-run accident in South West Delhi

In an unfortunate incident, a 27-year-old Zomato delivery man was killed after being hit by an unknown vehicle while crossing the road in South West Delhi. After the accident, the vehicle fled the scene, which occurred on Monday at around 2:45 a.m. 

DCP (South West) Surendra Choudhary said that the deceased has been identified as Harendra, a resident of RK Puram. The Zomato delivery was rushed to Safdarjung Hospital but was declared dead on arrival. Reportedly, he is survived by his wife and their 6-month-old son.

Following the incident, Kishangarh police station received a PCR call reporting an accident on the Outer Ring Road, under the footbridge near the DDA Flats gate in Munirka. When the police reached the scene, they found that the victim, who was crossing the road, had been hit by an unknown vehicle that had fled. Despite being taken to the hospital, he was declared dead on arrival. The victim was employed as a delivery boy with Zomato.

A preliminary inquiry led to the identification of the offending vehicle by the police. Reportedly, a case has been registered under Section 281 (1) and Section 106 (1) of the Bharatiya Nyaya Sanhita (BNS). Currently, the post-mortem of the deceased is underway.

DCP (South West) Surendra Choudhary said that Harendra is survived by wife and their six-month old son. Choudhary added that the victim’s father is working in DDA as a fourth grade employee. The DGP further asserted that the team has identified the offending vehicle and that the accused will be nabbed soon. 

Earlier in August, a cycle rider died on the spot when a speeding Mercedes hit him from behind and fled. The incident took place in Delhi’s Ashram area. The victim was identified as Rajesh. His body was found on the side of the road and his cycle was flung about 150 metres ahead. Later, the Delhi police had seized the vehicle and the accused has been detained.

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CBI files chargesheet in RG Kar case, says Sanjay Roy raped, murdered doctor

The investigation agency did not mention the charge of gang rape, indicating that Roy alone committed the crime.

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CBI files chargesheet in RG Kar case, says Sanjay Roy raped, murdered doctor

The CBI (Central Bureau of Investigation) has filed a charge sheet against Sanjay Roy in the RG Kar Hospital rape and murder case. Roy has been charged with the rape and murder of a trainee doctor inside the hospital on August 9.

The CBI in its charge sheet filed before a special court in Kolkata said Roy, who was working as a civic volunteer with the local police, allegedly committed the crime on August 9 when the victim had gone to sleep in the seminar room of the hospital during a break.

The investigation agency did not mention the charge of gang rape, indicating that Roy alone committed the crime. The trainee doctor had been raped and murdered inside the hospital’s seminar room. Reportedly, she had gone to the room to rest amid her marathon shift at the hospital after midnight. Her body was found the next morning by a junior doctor.

As per her post-mortem report, the victim had been raped and murdered. Her autopsy revealed 25 internal and external injuries to her body.

The civic volunteer was seen in CCTV footage entering the seminar room at 4.03 am on August 9. It was noted that he came out of the room after around half an hour. During investigation, the Kolkata police also found the man’s Bluetooth headphones at the crime scene.

Roy was subjected to a lie-detector test after the CBI took over the case. IN the lie-detector test, Roy claimed innocence. He further claimed when he entered the seminar hall, the woman was already unconscious.

When questioned why he didn’t inform the police about the incident, he said he was in a state of panic after seeing the woman in an injured state. The investigation agency reportedly said he was trying to mislead the investigators. Roy had also claimed that he was being framed.

Meanwhile, the CBI has also arrested the former principal of the RG Kar Medical College and Hospital, Dr Sandeep Ghosh, for allegedly trying to mislead the parents of the victim and tampering with evidence.

The former principal had allegedly tried to pass off the murder as a suicide. Sandeep Ghosh also made the victim’s parents wait for three hours before allowing them to see the body. The CBI has also arrested a local police officer. Reportedly, he was also allegedly involved in corrupt practices, including selling unclaimed corpses.

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Maldives first in India’s Neighbourhood First policy, says PM Narendra Modi

Prime Minister Narendra Modi also announced India’s decision to provide critical financial assistance to the Maldives to help it recover from an ongoing economic downturn.

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Prime Minister also announced India’s decision to provide critical financial assistance to the Maldives to help it recover from an ongoing economic downturn.

Prime Minister Narendra Modi on Monday reaffirmed the Maldives pivotal role in India’s Neighbourhood First policy and SAGAR (Security and Growth for All in the Region) vision during a meeting with Maldivian President Mohamed Muizzu. Both the leaders discussed deepening bilateral ties after a period of strained relations between the nations.  

Narendra Modi said that India and Maldives relations are centuries old. He added that India is Maldives’ nearest neighbour and close friend. He further asserted that Maldives holds an important position in India’s neighbourhood policy and SAGAR vision. India has always played the role of first responder for Maldives, he mentioned.

Maldives president Muizzu, who arrived in New Delhi on Sunday, is on his first state visit to India since assuming office last November. President Mizzu’s visit comes amid efforts to mend relations while navigating an ailing economy back home.

Ties between India and the Maldives have been fraught ever since Muizzu won the presidency on an India Out campaign and directed the eviction of Indian troops from the island nation. Recently, he has toned down his anti-India rhetoric, but New Delhi remains wary of his pro-China leanings.

Despite these aforesaid challenges, both leaders expressed a commitment to enhancing their relationship. Prime Minister Modi stressed on India’s role in supporting the Maldives during times of crisis. The Prime Minister stated that both countries have adopted a shared vision of a comprehensive economic and maritime security partnership.

He added that development partnership is an important pillar of India-Maldives relations. He added that INdia has always given preference to the priorities of the people of Maldives. 

Furthermore, the Prime Minister also announced India’s decision to provide critical financial assistance to the Maldives to help it recover from an ongoing economic downturn.

He said that this year, SBI did a rollover of 100 million dollars of the Treasury Bench of Maldives. According to the needs of Maldives, a 400 million dollars and Rs 3000 crores currency swap agreement was also signed.

Notably, the economic cooperation extends to infrastructure development as well. PM Modi and Muizzu virtually inaugurated the redeveloped Hanimaadhoo International Airport, a project supported by India. Other agreements include Introduction of Rupay card in Maldives by India, both the nations discuss opening of Indian consulate in Addu, and Maldivian consulate in Bengaluru, India hands over 700 social housing units built with its support to Maldives.

In addition, India will roll over a $50 million Treasury Bill for another year to provide essential budgetary relief to the Maldivian government. India and Maldives are also set to start talks on a Free Trade Agreement.

Maldives President Muizzu extended gratitude to PM Modi for the financial support and acknowledged that India has always stood by the island nation in its time of need. He further invited PM Modi to visit the Maldives. He announced a new comprehensive vision document that will include development, maritime security, trade partnerships, energy projects, health.

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