India's income inequality has doubled in 20 years!India suspended its decision to allow overseas retailers including Wal-Mart Stores Inc. (WMT) to open supermarkets, dealing a blow to Prime Minister Manmohan Singh’s efforts to boost foreign investmen

India's income inequality has doubled in 20 years!India suspended its decision to allow overseas retailers including Wal-Mart Stores Inc. (WMT) to open supermarkets, dealing a blow to Prime Minister Manmohan Singh's efforts to boost foreign investment and end a policy paralysisalleaged by India Incs.But  Govt won't suspend allowing 100% FDI in single brand retail, says report!

Parliamentary panel finalises Lokpal draft, 3 Congress MPs dissent!Team Anna rejects parliamentary panel's recommendations on Lokpal Bill!
As I have been constantly writing the Brahaminical Hegemony and Political Class are UNITED Rock solid to Sustain LPG Mafia Zionist, Manusmriti Rule with Parliamentary Gallery Show to woo respective Votebank. Mamata Banerjee gained most as she gets Rs 8,500 thousnad Crore for Junglemahal Development. The Centre is so generous to meet her demand that she announced DA for State Governement employees! And Kapil Sibal gets BJP support but with rider!Direct tax code to come into force in April 2012: Pranab Mukherjee

Central assistance as Special Plan for Bengal proposed: Government

Indian Holocaust My Father`s Life and

Time - SEVEN HUNDRED SIXTY EIGHT

Palash Biswas

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The Parliament Standing Committee on Lokpal adopted its final draft on Wednesday, but with 16 dissent notices. Among them, three were Congress MPs, led by a close Rahul Gandhi aide.Meanwhile,Parliament deadlock is finally over after the government suspended its decision to bring 51 per cent Foreign Direct Investment (FDI) in multi-brand retail. Parliament functioned for the first time in the 2011 winter session!

Government is going ahead with its decision to allow 100 per cent FDI in single brand retail as it has escaped the opposition fury. "100 per cent FDI in single brand retail was not a subject matter of any opposition or agitation," a senior minister said. Earlier, Finance Minister Pranab Mukherjee announced that the government has decided to suspend its decision allowing 51 per cent FDI in multi-brand retail, which had kept Parliament paralysed for nine days. "The statement made by the Finance Minister was very specific -- 'the decision to permit 51 per cent FDI in multi-brand retail trade is suspended till a consensus is developed through consultations amongst various stakeholders'," the minister said. Meanwhile, the CPI(M) has made it clear that there can be "no consensus" on the issue as long as it was part of the stakeholders. However, the minister said that the government had not given up on multi-brand retail and would bring it back much before its term ends in 2014.
The HinduA scene at a wholesale market in Delhi, the government's decision to allow FDI in retail was put on hold after an all-party meeting passed a resolution to suspend the move till a consensus was reached, both houses resumed the winter session after a logjam on FDI in retail, in New Delhi on Wednesday. Photo: V.V. Krishnan

Leading retail stocks make gains despite govt move on FDI

Updated on Wednesday, December 07, 2011, 21:42 * 691    Tags: retail FDI,  retail stocks,  stock markets

* Mumbai: Shares of some the leading retail companies ended with gains at the BSE on Wednesday despite the government move put its decision to allow FDI in multi-brand retail on the backburner till a consensus is evolved on issue. Kishore Biyani-led Future group's Pantaloon Retail (India) settled 6.30 percent higher at Rs 198.15 on the BSE. Similarly, shares of Provogue (India) jumped 6.44 percent to close at Rs 25.60. Others like Koutons Retail climbed 2.31 percent, and Vishal Retail went up by 0.79 percent. However, retailers like Trent and Shoppers Stop ended with losses. Tata Group's retail venture Trent shed 1.26 percent and Shoppers Stop tanked 4.26 percent. The government announced suspension of its decision to allow FDI in retail, bringing Parliament back to business after nine days of logjam. The breakthrough in the standoff came at an all-party meeting this morning where the government made the offer to put on hold the Cabinet decision to allow 51 percent FDI in multi-brand retail and the Opposition agreed to it. Disappointed by the government decision to put FDI in multi-brand retail on hold, India Inc today described the move as "highly regressive". "Postponing the decision of allowing FDI in retail till the total consensus is reached led to last half an hour of selling on the bourses," Bonanza Portfolio Senior Research Analyst Shanu Goel said. In the broader market, BSE benchmark Sensex ended with a gain of 71.73 points at 16,877.06. PTI

FDI in multi-brand retail only after consensus, says Pranab

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Opposition, traders upbeat; India Inc cries foul
NEW DELHI, DEC. 7:
Pushed to a corner by the 10-day stalling of Parliament by the Opposition parties and dissent from its key allies, the DMK and the Trinamool Congress, the Government on Wednesday suspended its November 24 decision to allow 51 per cent FDI in multi-brand retail.
At an all-party meeting, the Finance Minister, Mr Pranab Mukherjee, said the Government would move a proposal in Parliament on Thursday stating, "The decision to permit 51 per cent FDI in multi-brand retail will be suspended till a consensus is developed through consultations with various stakeholders."
However, 100 per cent FDI in single brand retail may find its way through. The Government is likely to formally notify the Cabinet decision shortly, official sources said.
The existing FDI cap on FDI in single-brand retail is 51 per cent.
Till Tuesday, both the BJP and the Left were firm that they would only settle for a roll-back and not a 'hold-back'. However, on Friday, they agreed to end the impasse saying that the Government had assured them that no decision would be taken in this matter till a consensus was reached with all the stakeholders.
The BJP expressed "happiness" over the ending of the logjam in Parliament. "I welcome the Government's decision to respect public sentiments. Bowing to public sentiments should not be seen as the Government's defeat, but as the strengthening of democracy," said BJP leader, Ms Sushma Swaraj, Leader of the Opposition in the Lok Sabha.
CPI(M) leader, Mr Sitaram Yechury, said "We are happy that this time the Government has yielded without waiting for the washout of the entire Parliament session." He said his party is also demanding a ban on forward trading in commodities, a rollback of petrol prices and the release of excess foodgrains in Government stocks.
Traders, too, were upbeat. "The decision has established the supremacy of the political leadership over the bureaucracy," Mr Praveen Khandelwal, Secretary-General of the Confederation of All-India Traders, said. But, India Inc, which had hailed the FDI decision as a step ahead in the reforms process, was despondent.
"The decision is deeply disappointing… It is a highly regressive move," said Mr Harsh Mariwala, President, Federation of Indian Chambers of Commerce and Industry.
Mr Chandrajit Banerjee, Director-General, Confederation of Indian Industry (CII), said the decision would send a wrong signal to investors. "FDI in multi-brand retail is an important reform agenda and offers India a great opportunity," he added.
"It's a clear case of a missed opportunity that will dent the country's image as a global investment destination," said industry lobby, Assocham.
aditi.n@thehindu.co.in
Keywords: FDI, Retail, Parliament, consus, pranab
http://www.thehindubusinessline.com/industry-and-economy/marketing/article2695481.ece?homepage=true

India's income inequality has doubled in 20 years!

Inequality in earnings has doubled in India over the last two decades, making it the worst performer on this count of all emerging economies. The top 10% of wage earners now make 12 times more than the bottom 10%, up from a ratio of six in the 1990s.

Moreover, wages are not smoothly spread out even through the middle of the distribution. The top 10% of earners make almost five times more than the median 10%, but this median 10% makes just 0.4 times more than the bottom 10%.

"The main driver has been an increase in wage inequality between regular wage earners-contractual employees hired over a period of time," says the Organisation for Economic Cooperation and Development (OECD) in a new report on inequality in the developed world and emerging economies. "By contrast, inequality in the casual wage sector-workers employed on a day-to-day basis-has remained more stable," the report said.

South Africa is the only emerging economy with worse earnings inequality, but it has halved this number since the last decade. "The combination of marked spatial divides, persistently high shares of informal sector jobs and disparities in access to education accounts for much of the widespread variation in earnings from work in the EEs," the report said.

Wage inequality has driven more general income inequality in the country. India has got more unequal over the last two decades-India's Gini coefficient, the official measure of income inequality, has gone from 0.32 to 0.38, with 0 being the ideal score. In the early 1990s, income inequality in India was close to that of developed countries; however, its performance on inequality has diverged greatly since then, bringing it closer to China on inequality than the developed world.

There is evidence of growing concentration of wealth among the elite. The consumption of the top 20% of households grew at almost 3% per year in the 2000s as compared to 2% in the 1990s, while the growth in consumption of the bottom 20% of households remained unchanged at 1% per year.

In comparison, the income of the bottom 20% of households in China grew at double the rate in the 2000s as compared to the 1990s, while the increase for the top 20% of households was much slower. In Brazil, household incomes have been growing faster among the poorest households than among the richest for the last two decades.

Of all the emerging economies, India has by far the highest proportion of informal employment, by any national or international measure. "In India...informal employment includes a disproportionate number of women, home-based workers, street sellers and workers sub-contracted by firms in the formal sector," the OECD report said.

India spends less than 5% of its GDP on social protection schemes as compared to Brazil's more than 15%. Its tax revenue as a proportion of GDP is under 20%-the lowest of all emerging economies, and just half that of developed countries.

Direct tax code to come into force in April 2012: Pranab Mukherjee

Finance Minister Pranab Mukherjee on Wednesday expressed the hope that the Direct Taxes Code ( DTC), which seeks to modernise tax laws in the country, will come into force from April 1, 2012.

"The proposed Direct Taxes Code brings together the policy initiatives on direct taxes. It is slated to come into force from the next financial year," he said while addressing an international conference on 'Tax and Equality'.

In a bid to modernise the tax system, the governmenthas proposed to replace the Income Tax Act, 1961, with a new legislation.

With regard to indirect tax reforms, the minister said, "We are moving toward an economy-wide, generalised value-added tax system of Goods and Service Taxes (GST) at all levels in the country."

While giving details of the tax reforms being pursued by the Indian government, Mukherjee also called for greater international cooperation to deal with the menace of tax evasion and black money.

"Tax evasion undermines the intended benefits of a progressive tax policy," the minister said, adding, "Resolution of these issues requires international cooperation and alignment of tax systems for better cross-border compliance."

Quoting global financial integrity report, Mukherjee said annual illicit outflows from emerging economies and developing countries average between $725 to $810 billion.

The Indian government, Mukherjee said, has adopted a four-pronged strategy to deal with the issues of tax evasion and black money.

The strategy includes joining the global crusade against black money and creation of a legislative and institutional framework to deal with illicit money.

Although the strategy has started showing results, Mukherjee said, "The complexity of cross-border transactions is on the rise and presents a serious challenge to tax administrators in practicing and bringing equality."

"The opacity of tax systems in some of the jurisdictions is adding to the challenges. There has been some movement on these issues in response to the initiative by the G-20. We need to pursue this to its logical end," he added.

Referring to tax reforms within the country, Mukherjee said India has been pursuing them in a gradual manner.

The tax reforms, he added, are aimed at rationalisation of tax rates, broadening of the tax base, special focus on sunrise areas like transfer pricing and international taxation, and strengthening of the tax information exchange network.

The government, he added, was also focusing on providing better taxpayer services, a reduction in the cost of compliance and focused enforcement in the case of high net worth individuals.

The progressive personal income tax policy, Mukherjee said, has resulted in a ten-fold increase in revenue collections, which went up from USD 8.62 billion in 1996-97 to USD 87 billion in 2010-11.

"More importantly, the composition of our tax revenues has altered significantly in favour of direct taxes, which now account for nearly 60 per cent of our tax revenues," he added.

Stunning Discoveries in Science
Kepler-22b: NASA confirms 'super-Earth' that could hold life
Spinning around its star some 600 light years away, it's 2.4 times the Earth, it orbits its Sun-like star every 290 days.

• Gigantic diamond planets in Milky Way?
• Fastest-rotating star spins at 600 km/second
• Early earth vulnerable to catastrophic glaciation
• India through Global eye
• India most disappointing among BRIC nations: Goldman's O'Neill
• India's record on productivity, FDI & reform has been the most disappointing, the chairman of Goldman Sachs Asset Management O'Neill said.

• Expect India's GDP at 5-6% in FY13: Jim Walker
• Indian market rally led by global cues: Ved
• 'Mkt rally won't last without global support'

• Defence Technology & India
• Project Heli-Teli: IAF gets eye in the sky to foil 26/11 like terror strikes
• They carry advanced sensors to enable live video footage from the scene of an incident to control centres on the ground.

• Facelift for 2 Mirage 2000 jets in Riviera
• IAF to order 20 more Hawk AJTs
• Indian Army eyeing own 'mini' air force

• States: Politics & Growth
• Double bang from Cairn & JSW: Overnight crorepatis in Barmer
• Mularam who sold land at Rs 4 lakh/acre has enough cash to splurge on SUVs, TVs, ACs, washing machines, and trips to Goa.

• Nitish Kumar is about governance
• History and logic both favour UP's division
• Kerala parties for new Mullaperiyar dam

http://economictimes.indiatimes.com/news/politics/nation/fdi-in-retail-as-politicos-stay-at-crossroads-bureaucrats-present-an-ignorant-picture/articleshow/11012934.cms

India suspended its decision to allow overseas retailers including Wal-Mart Stores Inc. (WMT) to open supermarkets, dealing a blow to Prime Minister Manmohan Singh's efforts to boost foreign investment and end a policy paralysisalleaged by India Incs.As I have been constantly writing the Brahaminical Hegemony and Political Class are UNITED Rock solid to Sustain LPG Mafia Zionist, Manusmriti Rule with Parliamentary Gallery Show to woo respective Votebank. Mamata Banerjee gained most as she gets Rs 8,500 thousnad Crore for Junglemahal Development. The Centre is so generous to meet her demand that she announced DA for State Governement employees! And Kapil Sibal gets BJP support but with rider!

However, the drama continues to Cover Up the Anti People Legislation and Policy Making, persecution and Repression, EXCLUSION and Ethnic Cleansing!Team Anna rejects parliamentary panel's recommendations on Lokpal Bill!
On the other hand,Tamil Nadu Chief Minister J.Jayalalithaa Wednesday requested Prime Minister Manmohan Singh for financial assistance of Rs.25,000 crore, additional supply of power and restoration of kerosene allocation for public distribution system (PDS).

The government on Wednesday said it has proposed to provide central assistance as a Special Plan to West Bengal for development of the backward regions of the state.

"The government has proposed to provide central assistance as a Special Plan for West Bengal under the state component of Backward Regions Grant Fund (BRGF) to address the development needs of backward regions of the state through focused projects," Minister of State for Planning Ashwani Kumar said in a written reply to the Lok Sabha.

He said proposals have been received from various state governments in the recent past for special packages and assistance. The states who had made such requests include Uttar Pradesh, Bihar, Punjab, Tamil Nadu, Jammu & Kashmir, Odisha, Goa, Rajasthan and West Bengal.

"State-specific, need-based special dispensations have been made as and when warranted through existing programme/schemes under annual/Five-Year Plans," Kumar said.

The minister said in the recent past, the Union government has provided assistance in the form of Special Plans for Bihar and Odisha under the BRFG, to Jammu & Kashmir under the Prime Minister's Reconstruction Plan and under other initiatives to the Bundelkhand region of Uttar Pradesh and Madhya Pradesh.

West Bengal Chief Minister Mamata Banerjee had sought a special financial package of Rs 1,900 crore from the Centre soon after coming to power in the state.

In October, she met Prime Minister Manmohan Singh and sought a moratorium for at least three years on repayment of loans by the state, keeping in view its financial condition.
Indian government will not suspend its decision allowing 100 percent foreign direct investment (FDI) in single-brand retail, a government source said, even as the government put on hold a move to allow 51 percent FDI in multi-brand retail.

"The opposition parties have not opposed 100 percent FDI in single brand retail. So there is no ambiguity," a cabinet minister, who declined to be named, told reporters on Wednesday.

Earlier, finance minister Pranab Mukherjee told lawmakers the government had decided to suspend the decision to permit 51 percent FDI in multi-brand retail trade, until there was a consensus among various stakeholders.

A parliamentary standing committee examining the Lokpal bill has finalised its draft amidst growing dissent from members, including three Congress MPs. The report is likely to be tabled in parliament on Friday, sources said.

The three congress members who dissented, asking for inclusion of group C employees under the Lokpal are Deepa Dasmunshi, PT Thomasand Meenakshi Natarajan.

Rejecting the parliamentary panel draft, Anna Hazare said the government was not serious about fighting corruption.

Panel chairman Abhishek Singhvi said the issue of bringing the prime minister under the Lokpal has been left to Parliament. He also said the many dissenting notes given by members on various issues would be reflected in the report.

Rashtriya Janata Dal (RJD) leader Lalu Prasad Yadav, meanwhile, opposed giving constitutional status to the Lokpal, demanding reservation for dalits, backward castes and the minorities in all panels of the Lokpal.

However, sources said there was general agreement in the panel that the Lokpal should have constitutional status.

Meanwhile,the Bharatiya Janata Party on Wednesday supported the government's view on objectionable content on the social networking sites but said Kapil Sibal's way of approaching the issue is not right.

"We condemn if some distortion has taken place on such sites. No political party would approve distortion of images of public figures on the social network sites," said BJP leader SS Ahluwalia.

But he said that "Sibal's way of regulating them is not okay".

Karat stops short of 'Thank you, Didi' - BJP feelers after 'joke' J.P. YADAV * New Delhi, Dec. 6: Prakash Karat today came close to thanking Mamata Banerjee, not for defeating the Buddhadeb Bhattacharjee government but for thwarting the Manmohan Singh government. "Will be very happy if she hijacks our issue," the CPM general secretary said in reply to a question whether Mamata had snatched the Left's plank on foreign direct investment in retail. After the pat — presumably in jest — came the prod. "I think Trinamul should not be satisfied with abeyance (of the FDI decision). They should argue for complete cancellation of the decision," Karat said, releasing a booklet on FDI in retail. If Mamata is willing to oblige him, what Karat said after that should make the chief minister cringe, given her allergy to the BJP and the years of toil to bury her one-time association with the NDA. "We will unite with all other forces opposed to it (FDI in retail)," the CPM leader said. Since the BJP is at the forefront of the Opposition forces against FDI, Karat's statement would seem to include the NDA spearhead as well. It is not clear which will be more anathema to Mamata — being advised by Karat on how to make his party "very happy" or being clubbed in public with the forces that once cost her dear. However, as always in matters related to the CPM, the Bengal chief minister may relish the flip side. Karat has now publicly acknowledged, in a lighter vein or otherwise, Mamata's role in persuading the government to rethink the FDI decision. Unwittingly or otherwise, he has also vacated the anti-reforms space to Mamata. This effectively means that Karat has anointed the leader of the Bengal government as the de facto opposition leader as well, leaving the still-crestfallen Bengal unit of his party officially unemployed. The CPM boss went on to praise the BJP for changing its position on economic reforms. "It's good. I am very happy more and more parties understand the reality. I hope they (BJP) will take a re-look at their position (on the pension bill)." Digging in his heels on the eve of the all-party meeting on FDI, Karat claimed the government's move to "suspend" the FDI decision was a ploy to push it through the backdoor and vowed not to allow it. "We want complete cancellation of the policy. If the government thinks they can manoeuvre and bring this back, they are mistaken. We will unite with all other forces opposed to it," the CPM general secretary said. Any relationship with the BJP is a core ideological issue for the CPM. Karat's intention to join hands with all forces, including the BJP, is believed to reflect the party's desperation given its depleted strength at the Centre. Leaders close to Karat sought to justify his stand, saying that aligning with the BJP for a larger cause was a prudent tactical line. A CPM leader said: "The biggest danger before the country is the neo-liberal policy being followed by the present government. What is wrong in co-ordinating with the BJP to stop the government from taking measures that will impact the livelihood of the poor?" However, it remains to be seen how the Bengal unit, yet to recover from the desertion of minorities, will view such a sentiment. Party insiders said the CPM was chalking out its strategy in close co-ordination with the BJP. The Left was not in favour of stalling Parliament indefinitely, but it would not shy away from backing the BJP till a rollback assurance was given to Parliament, they said.

More stories in Front Page

• Learn from Mayawati, says NDFB-P  • Repairs? Shell out bad road levy  • Dalits roll over Brahmin food  • Excavation nod to ancient treasures  • Deadlock cloud as govt resists rollback  • Dalma blind hunt for Kishan aide  • Raj zeroes in on flyover opposed by Lata  • BJP feelers after 'joke'  • Haldia Petro downgraded

http://www.telegraphindia.com/1111207/jsp/frontpage/story_14848951.jsp

HANDLE WITH CARE - FDI in retail is India's bargaining chip

Diplomacy: K.P. Nayar

* How incredibly weak is India's collective memory! Eighteen years ago, Manmohan Singh, then finance minister in P.V. Narasimha Rao's government, gave his assent to entreaties from the ministry of external affairs, just across the road from his office, to allow foreign investment in retailing. And Prime Minister Rao cleared the file after it was approved by the foreign investment promotion board, which was then part of his office. The approval opened the way for what was falsely heralded at that time as the beginning of a retail revolution and in the way Indians shop. No one held Parliament hostage in 1993 when Rao, in his inimitably quiet style — some would say he was surreptitious — allowed two foreign firms to collectively invest 66 per cent in India's first retail joint venture with overseas equity participation. There were hardly any negative ripples in the media, and praise for the decision was in abundance. Granted, there was only Doordarshan in those days and the print media had not proliferated the way it has today. Agreed, the decision was not as sweeping in its scope as the United Progressive Alliance government's latest decision to allow 51 per cent foreign direct investment in multi-brand retail and 100 per cent in single-brand retailing. But in a comparison of scale, for a country which had gingerly embarked on economic liberalization in 1991, the opening of Germany's Nanz supermarkets in India, starting with New Delhi only two years later, was a much bolder initiative than last month's decision by UPA II. Or maybe, it would be more accurate to describe last month's decision as one approved by the Union cabinet at the instance of a dominant faction of the Congress and some constituents of the UPA. The Rao government's initiative to allow Nanz AG of Germany and Marsh Supermarkets Inc of the United States of America to become equal partners with Goetze India, an Escorts Group company, and to launch the country's first supermarket chain did not evoke any strong protest because it was not an economic decision. It was essentially a diplomatic initiative. Helmut Nanz, the patriarch of the Nanz family, owners of the supermarket chain which carried the family name and several other businesses, is an acknowledged supporter of some of Germany's well known philanthropic, cultural and volunteer organizations. For many years, he was also India's honorary consul in Stuttgart, the city which headquarters Mercedes-Benz. In his well-researched book, The 21st Century Ambassador: Plenipotentiary to Chief Executive, Kishan S. Rana, a retired Indian diplomat who had the reputation of being a hard taskmaster in South Block, describes Helmut Nanz as an "exceptional person" for his work for India in Stuttgart. When the Berlin Wall fell and Europe became caught up in a whirlwind of change, Rao concluded that unified Germany would best serve as India's closest partner on the Continent in an emerging new global scheme of things. At a time when some European governments were writing off India as a basket case with foreign exchange reserves adequate for only a few weeks, Rao and the then German chancellor, Helmut Kohl, the architect of his country's reunification, forged an alliance that in retrospect dwarfs India's often overstated friendship with the United States of America in its statesman-like perspicacity. These days, when New Delhi is content to bask in symbolic gestures with little substance — such as the first state dinner at Barack Obama's White House for an Indian prime minister — it is easy to forget the many firsts that Rao and Kohl created at a time when India was anything but the flavour of the international community. With Rao's grasp of history and his conviction that past events can be the compass to the future, he asked P.N. Dhar — who once headed Indira Gandhi's office to create the first "Indo-German Consultative Group" in 1992 modelled on the Königswinter kreis, an Anglo-German group set up after World War II — to repair their bilateral relations. Today, India has such groups with several countries, but when Kohl responded by nominating Ulrich Cartellieri, then chief executive of Deutsche Bank, to work with Dhar on an Indo-German partnership, it was a pioneering initiative in India's difficult post Cold War readjustment in international relations. Around the same time, Kishan Rana, who became ambassador to Germany, made a big catch: he persuaded Horst Teltschik, Kohl's foreign policy adviser who later joined the board of automobile giant BMW, to become India's honorary consul in Munich. New Delhi did not have its own consulate general in Munich then. Soon enough, among other things, India's exports to Germany grew faster than that to any other hard currency area at that time. In those days, export was for India what indigestion is to digestion. The point of this long narrative in the current context is that when Helmut Nanz recognized the potential of India's retail market — then valued at an estimated Rs 4,000 billion — and wished to make a foray into it, India enabled him to do so as a gesture of thanks for his services and to prove to Germany, its emerging partner in a revitalized relationship, that the Rao government was serious about its new initiatives, many of which would earlier have been seen as heresy in India. Of course, the FIPB's approval for the Nanz venture came with severe restrictions, which have governed similar ventures at various stages since: prohibition of the sale of foreign branded products, the requirement of local procurement and so on, but all the same, it was a critical first step on the road to liberalizing India's retail business. But what is persuading the UPA cabinet to now decide that it must accede to longstanding demands by Wal-Mart, Tesco, Carrefour and other foreign retail chains to be let into India's potentially lucrative domestic market for a long haul? It is difficult to believe that several years after shedding their 'obstructionist' Leftist partners, the Congress leadership of the government has suddenly been overcome by a desire to create jobs, help farmers or bring goods of daily use to consumers at a low price. After all, ministers who enthusiastically argued for FDI in the retail business following the November 24 decision, have arguably never lost much sleep over the staggering figures of suicides in rural India from grinding poverty. It is also unlikely that they expect the country's 'mall generation' to flock to polling booths in 2014 to vote the Congress back to power in gratitude for sanctioning more fun shopping in their cities. What is more likely is that this generation will wear T-shirts emblazoned with Anna Hazare slogans to slick mall pubs but not bother to queue up to vote on election day. For some time, the argument has gained ground among sections of the government that the nuclear deal with the US is now a non-starter. Indeed, Japan's nuclear disaster and the economics of gas prices since 2009 have rendered Indian projections of a sweeping expansion in nuclear generating capacity in the next two decades largely redundant. The argument among these sections of the government is that the hurt to the US as a result of the UPA government's inability to deliver any promised business to America's nuclear industry and create jobs at Westinghouse or GE has been compounded by the principled position of the defence minister, A.K. Antony, that he will not be swayed by any consideration other than merit in awarding the huge contract for medium multi-role combat aircraft. American firms were eliminated from the race as a result. The prime minister's instincts as a decent human being and his loyalty to the values that have shaped his upbringing and his career outside politics are understandable in the context of the November 24 decision. He believes that George W. Bush and America treated India with decency and respect: the same cannot be said, after all, about how Bush treated his closest ally, Britain's Tony Blair, summoning him "Yo, Blair" and ordering him about at a Group of Eight summit in Saint Petersburg in 2006, oblivious to an open microphone on the table. Or the way Bush massaged the neck of the German chancellor, Angela Merkel, at the same summit in violation of the United Nations diplomatic guidelines on sexual harassment. But diplomacy is not about decency or feeling. It is about interests that those in charge are mandated to protect and advance. Yes, if Bush was good to India, say "Thank you," and move on. There is no room for sentiment. The hard question that UPA ministers should ask themselves is what India is getting from the US, the United Kingdom or France in return for letting their supermarket chains into the country's retail market at a time when their economies are windswept and caught in grave uncertainties. Entry into the retail market is one of the most valuable bargaining chips on India's diplomatic table. It should not be converted into a free pass for multinational corporations and given away without getting tangible concessions in return. Once again, India must learn from China instead of trying to compete with Beijing with predictable results.

http://www.telegraphindia.com/1111207/jsp/opinion/story_14846114.jsp

Dalits roll over Brahmin food

K.M. RAKESH

* Devotees roll over banana leaves with leftover food at the Kukke Subrahmanya Temple. Picture by Vartha Bharathi Bangalore, Dec. 6: A state-run temple in BJP-ruled Karnataka has lifted a ban on a ritual in which backward castes roll on banana leaves with food leftovers of Brahmins believing they will be "blessed", sparking an outcry. Groups representing lower castes, academicians and social activists have described the decision by the authorities of the Kukke Subrahmanya Temple to revivemade snana (bath in leftovers) as abominable and uncivilised. Over 3,000 people have gone through the ritual at the centuries-old temple in Sullia, 480km from Bangalore, since the ban was lifted last week. It was clamped earlier this year because of a similar outcry. The state minister for temple endowments, V.S. Acharya, has voiced support for the 700-year old ritual, which some of the faithful believe can even cure skin diseases. But faced with the growing clamour against the ritual from people and the Opposition in the Assembly, the government today asked the social welfare department to submit a report in four days explaining what led the authorities at the shrine to lift the ban. Temple officials said they had done so because of "pressure" from devotees ahead of a festival. But the turnaround has outraged academicians, social activists and a section of political leaders, who believe the practice is the most abhorrent system of worship since the ban on bettala seve (nude worship) almost a decade ago. In that ritual, naked women sought blessings on a special day, the parade attracting international media and TV crew to film the events at the Devi Renukamba temple at Chandragutti in Shimoga, around 250km from Bangalore. The practice was banned in 2002 after a furore. But few have dared to defy the leftover ritual as openly as they had opposed the nude worship. A backward class leader who protested at the Subrahmanya temple when the ritual was being held recently was thrashed by a mob. But the assault on K.S. Shivaramu, president of the Karnataka State Backward Classes Awareness Forum, has become a rallying point for those demanding the ban should be imposed again. Social activist and backward class leader G. Rajashekar said it was high time the government put its foot down. "These practices humiliate the lower castes, even though many of whom blindly consider them sacrosanct." Priests have not been as categorical. Vishwatheertha, a senior seer of the Pejawar Mutt of a Brahminical order of southern Karnataka, appeared to play safe, declaring he was neither for nor against the ritual. But he is under pressure from several quarters to build opinion for stopping the ritual. Academicians have been unequivocal in their condemnation. Bangalore University vice-chancellor N. Prabhu termed the practice as being demeaning to human dignity. The varsity's students have launched a campaign to spread awareness against such "barbaric" practices.

http://www.telegraphindia.com/1111207/jsp/frontpage/story_14848695.jsp

Foreign retail call after UP polls

JAYANTA ROY CHOWDHURY

* New Delhi, Dec. 6: The government is likely to notify foreign direct investment in retail once the elections in Uttar Pradesh are over. However, to build up a countervailing power to the foreign retailers and also satisfy "ultra-nationalistic" allies, the government will work with farmers' co-operatives to get them associated with retail. Top sources said the government remained convinced that FDI in retail was the only way forward to bust the inflation genie but felt it should wait after the coming phase of state elections were over. With Mayawati and the BJP joining Mamata Banerjee in an all-out attack against FDI in retail, the government decided to delay the notification, which would allow the foreign retailers to come in, so that it did not create a controversy before the elections. Meanwhile, the Centre wants to use the time to educate and bring around public opinion in favour of the move. Assembly elections to Uttar Pradesh, India's most populous state, are seen as crucial to the political fortunes of the ruling Congress alliance, which wants to re-emerge as a major force in the state. Officials said the decision to allow FDI in retail was taken not to appease any lobby within or without India, but because of a detailed study done by a committee headed by India's chief economic adviser Kaushik Basu. The study said the best way to curb rising food prices would be to usher in a food retail revolution which foreign retailers could help to build up. "Big Indian retailers have been around for the last decade or so, but unfortunately they do not seem at all keen to build the kind of cold chain which is needed to get far… refrigerated storage, fleets of refrigerated trucks, trains and aircraft. They do not have the know-how needed to run their business profitably … the result is that most Indian supermarket chains are bleeding, while foreign retailers abroad are making profits despite an economic slump in the West," finance ministry officials said. Expertise counts The study said FDI in retail would bring in experts in the field, who would facilitate investment in cold chains and bring in modern storekeeping practices that allow the best use of shelf space. It will create a win-win situation for retailers, farmers and consumers. Studies abroad show that competition among supermarket chains have kept inflation down despite trying financial times. British retailer Sainsbury in October gave away coupons to customers to make up for the difference in value of their groceries if it had been cheaper at rivals Asda or Tesco. Farmer co-operatives However, to take care of complaints that retailers such as Walmart and Tesco tend to squeeze farmers, the government is planning to encourage farmers' co-operatives to join the retail revolution by either using their co-operative producing power to dictate prices to supermarkets or by joining the fray with competing retail supermarkets. Gujarat dairy farmers have been extremely successful in milk and milk produce marketing using the brand Amul, a household name in India. Officials feel such co-operatives can become retailers. Mother Dairy, run by dairy farmers' co-operatives, had entered food retailing by launching the Safal brand of outlets, which now number 400 plus. However, the retailer got limited success as it did not invest in a cold chain and rather depended on buying from "mandis" or markets. "The idea is to get strong farmers' co-operatives to join the retail revolution, either on their own or through joint ventures, and to get them to build rival cold chains or even join hands in setting up regional or national cold chains," officials said. Co-operative chains such as the UK's The Cooperative Group and Australia's Westfarmers have been extremely successful. Westfarmers, which started out as a co-operative of western Australian farmers and transformed into a limited company, is Australia's largest private employer.

http://www.telegraphindia.com/1111207/jsp/business/story_14848268.jsp

FDI will await consensus

AARTI DHAR
GARGI PARSAI
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The HinduA scene at a wholesale market in Delhi, the government's decision to allow FDI in retail was put on hold after an all-party meeting passed a resolution to suspend the move till a consensus was reached, both houses resumed the winter session after a logjam on FDI in retail, in New Delhi on Wednesday. Photo: V.V. Krishnan

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Does India really need this?Bihar MPs forced to miss Parliament proceedingsTwo Bills introduced in Lok SabhaOnly rollback acceptable: KaratThe retail counter-revolutionFDI in multi-brand retail: States could be the deciding factorDMK too opposes FDI in retail tradeFDI decision aimed at distracting Parliament: NDA

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Under intense pressure from some of its own allies and the entire Opposition, the government on Wednesday announced suspension of its decision to allow Foreign Direct Investment in retail, and immediately thereafter Parliament was back to work, after nine days.

Normal functioning of Parliament had been stalled ever since the Cabinet decided to allow 51 per cent FDI in multibrand retail, with some UPA allies, primarily the Trinamool Congress and the DMK, and the entire Opposition, demanding a complete rollback. The impasse finally ended on Wednesday morning at an all-party meeting, where the government announced its intention to put the Cabinet decision on hold until after all stakeholders were consulted.

Soon after, Finance Minister Pranab Mukherjee made the announcement in the Lok Sabha. He explained that the stakeholders were political parties and Chief Ministers without whose involvement this decision "cannot be implemented." "It can never be implemented without involving the States."

Leader of the Opposition Sushma Swaraj welcomed the announcement. "The government has bowed to the wishes of the people. To bow before the will of the people is not defeat. It is strengthening of democracy."

After the statement by the Leader of the House, Speaker Meira Kumar disallowed the adjournment motions moved by the BJP, the Left and the BSP. The BSP members were dissatisfied and staged a walkout.

The House then took up question hour for the first time since the winter session began on November 22.

In the Rajya Sabha, as soon as a similar statement on the government's intention was made by Commerce and Industry Minister Anand Sharma, Leader of the Opposition Arun Jaitley wanted a clarification on who the "stakeholders" would be. Sitaram Yechury (CPI-M) said the State governments and political parties should be included in the consultation process.

Mr. Sharma said the stakeholders would include States and political parties.

A BSP member said his party wanted a complete rollback of the FDI policy, and staged a walkout along with all MPs of his party.

Earlier, at the all-party meeting convened by Mr. Mukherjee the Opposition agreed to the government proposal of suspending the FDI in retail until "consensus" emerged. All the parties, including the TMC and the DMK, agreed to support the resolution and allow the House to function.

Keywords: FDI in retail, foreign investment, retail sector, Indian economy

http://www.thehindu.com/news/national/article2694359.ece?homepage=true

1. FDI in retail: Govt approves Rs 8750-cr financial package for West ... ‎ Economic Times - 1 hour ago NEW DELHI: After heeding to West Bengal Chief Minister Mamata Banerjee'sdemand on FDI in retail, the Centre today gifted her with a special package of Rs ... Mamata Banerjee gets Rs 8750 cr bailout after FDI hit‎ Hindustan Times Tracking Mamata Banerjee‎ India Today Post FDI fiasco, Centre tries to appease Mamata with R 8750 cr bailout‎ Daily Bhaskar Moneycontrol.com - IBNLive.com all 52 news articles »

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2. No loss of face in decision to pause FDI in retail: Congress ‎ Hindustan Times - 1 hour ago Answering queries, he said FDI in retail was "definitely a good idea". ... minister talking to party chief and West Bengal Chief Minister Mamata Banerjee. ... Video: Roll back FDI or face adjournment motion, says Sharad Yadav NewsX No loss of face in decision to pause FDI in retail: Congress‎ Economic Times UPA govt to try keep its FDI option open‎ Indian Express Manoramaonline - Rediff all 39 news articles »

   * Indian Express

3. Retail FDI put in cold storage, says Mamata Banerjee ‎ Times of India - 3 days ago Finance minister Pranab Mukherjee gave a commitment to West Bengal chief minister and Trinamool boss Mamata Banerjee not to go ahead with the decision until ... Video: FDI retail policy on hold: Mamata Banerjee NewsX Mamata Banerjee claims retail FDI put on hold, government mum‎ India Today FDI in retail: Mamata Banerjee puts the agenda on hold‎ Economic Times Daily News & Analysis - NDTV all 1205 news articles »

   * India Today

4. Govt suspends FDI in retail, Left says it's a rollback, Parliament ... ‎ NDTV - 10 hours ago Mamata Banerjee, the government's biggest ally, indeed owns responsibility for forcing the U-turn on FDI in retail. First, the Trinamool chief made it clear ... FDI: Trinamool to keep 'eye' on Pranab's statement‎ Indian Express FDI truce brings Parl back in action‎ indiablooms Karat stops short of 'Thank you, Didi'‎ Calcutta Telegraph Business Standard - IBNLive.com all 307 news articles »

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5. We have our problems and I have to take a stand for the public:Mamata ‎ The Hindu - 4 days ago Ms. Banerjee, however, said that she was willing to discuss the FDI issue again with her ... File photo of West Bengal Chief Minister Mamata Banerjee . ...

   * The Hindu

6. TMC not to support govt on FDI: Mamata ‎ Business Standard - 5 days ago ... course of future action in Parliament over the issue of foreign direct investment(FDI) in the retail sector, TMC supremo Mamata Banerjee on Friday said ... FDI row: PM Manmohan Singh speaks to Mamata Banerjee, seeks her ...‎ Times of India FDI in retail: Not in favour of toppling government, says Mamata ...‎ Economic Times Mamata Banerjee rejects PM call to support FDI issue‎ TruthDive IBNLive.com - IANS all 394 news articles »

   * IANS

7. Kirana shops cheer FDI in wholesale, not retail ‎ Hindustan Times - 2 hours ago The corporate leaders expressed their disappointment as the FDI in multi-brand ... Top government sources said Trinamool Congress chief Mamta Banerjee had ...

8. FDI-MEETING 3 ‎ IBNLive.com - 10 hours ago ... up by the Finance Minister with West Bengal Chief Minister Mamata Banerjee. ... said, "The decision to permit 51 per cent FDI in retail trade has been ...

9. PM to blame for logjam in parliament over FDI in retail : CPI ‎ Hindustan Times - 1 day ago The veteran CPI leader criticised Trinamool Congress supremo Mamata Banerjee'sstatement that the Centre would suspend its decision on FDI in retail till a ... PM responsible for parliament logjam: Gurudas Dasgupta‎ Economic Times Nothing short of a rollback will do: Left‎ The Hindu all 19 news articles »

   * IndiaEduNews.net

10. FDI in retail: Opposition accepts govt's formula, Parliament ... ‎ NDTV - 12 hours ago It was with that sentiment and after ally Mamata Banerjee expressed her inability to support the government on FDI in retail that it changed its mind; ...

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  Moneycontrol.com - ‎1 hour ago‎
  The government has managed to eke out a minor victory in the entire FDI in retail saga. Sources have told CNBC-TV18's economic policy editor Siddharth Zarabi that the notification on single-brand retail will be done in due course. ...
  

  Govt has finally realised its mistake: BJP over FDI suspension

  Daily News & Analysis - ‎2 hours ago‎
  Place: New Delhi | Agency: PTI Expressing "happiness" over ending of logjam in Parliament on the FDI in retail issue, BJP Wednesday said the government has finally "realised its mistake". "Now they (government) have realised their mistake. ...
  

  India must exert its bargaining power on foreign supermarkets

  The Guardian - ‎2 hours ago‎
  The Indian government's reversal of its decision to allow foreign direct investment (FDI) in retail has, at least temporarily, halted the arrival of the world's biggest retailers like Tesco, Walmart and Carrefour who have been eyeing the lucrative ...
  

  India Inc says FDI suspension disappointing, regressive

  NDTV - ‎3 hours ago‎
  Domestic retailers, who expected an influx of capital, have seen their stock prices fall over the past few days. Indian firms are in dire need of capital for expansion. Parliament has got back to business for the first time in the Winter Session, ...
  

  Parliament logjam ends but govt bends on FDI

  Hindustan Times - ‎3 hours ago‎
  PTI The deadlock in Parliament over the government's decision to allow foreign direct investment (FDI) in the retail sector ended on Wednesday after an all-party meeting passed a resolution to suspend the move till consensus is reached. meeting said ...
  

  FDI in retail: Holding it back 'highly regressive', says India Inc

  Times of India - ‎3 hours ago‎
  The government today announced suspension of its decision to allow FDI in retail, bringing Parliament back to business after nine days of logjam. NEW DELHI: Disappointed by the government's decision to put foreign direct investment (FDI) in multi-brand ...
  

  Decision to put on hold FDI move no setback: Shukla

  Hindustan Times - ‎3 hours ago‎
  PTI Government's decision to put on hold FDI in retail is not a setback for it and a final call will be taken after a consensus is evolved, Minister of state for parliamentay affairs Rajiv Shukla said on Wednesday. "...We had to break the (Parliament) ...
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  By Mail Today, IndiaToday, Updated: 07/12/2011
  

  Who is tracking Mamata Banerjee?

  Tracking Mamata Banerjee was an occupation that took most of Prime Minister Manmohan Singh and finance minister Pranab Mukherjee's time last week.
  The West Bengal chief minister was could not be reached when the PM tried to call her previous Monday while her partymen blocked Parliament over FDI in retail.
  
  He then called her colleague and minister of state Sudip Bandopadhyay in the evening, asking him: "Where is Mamata?" A sheepish Bandopadhyay responded by saying she was in a "remote" corner called Howrah. "I know where Howrah is. I also know that it is the twin city of Kolkata, not some remote corner," an exasperated PM said. He then asked Bandopadhyay to have Mamata call him.
  
  The call never came and the finance minister was requested to speak to her in person. Mamata did not meet Mukherjee, who had to finally communicate the important decision of putting FDI in retail on hold to her over the phone.
  
  
  Source: http://www.indiatoday.in
  
  
  7 DEC, 2011, 07.10AM IST, REUTERS
  

  Distress in core India industries drives reform hopes

  MUMBAI: India's power, telecoms and aviation sectors, core to sustaining the country's growth, are in various states of crisis. That may prove a good thing, if it forces government to act.
  
  Regulations in all three industries have kept prices low and brought power, cellphone service and even air travel to millions of Indians for the first time. The same policies have left many operators battered by losses, debt, and plunging share prices.
  
  The recent debacle over foreign supermarkets -- India announced that it would allow entry to the likes of Wal-Mart Stores Inc before putting the plan on hold in the face of intense political opposition -- underscores the difficulty of pushing through reforms in the world's largest democracy.
  
  Conditions in all three sectors are likely to worsen before improving, said Saurabh Mukherjea, head of equities at Ambit Capital in Mumbai.
  
  "You'll probably see some big-ticket defaults before things start getting better and you'll need the government of India to get back to work before things start getting better," he said.
  
  Power, telecoms and airlines are capital-intensive sectors that attracted heavy investment when the regulatory environment was more favourable and global capital was plentiful and cheap.
  
  That has left India crowded with more than a dozen cellular carriers, loss-making airlines with too many planes and billions of dollars of investments in a power sector made uneconomic by high global prices of coal and low domestic tariffs.
  
  Many investors once keen on India's long-term growth have had enough as global and domestic economic conditions worsen, making Indian stocks among the world's worst performers of 2011.
  
  Despite passenger growth of nearly 20 percent, shares in India's three listed airlines are down between 62 and 72 percent in 2011. The index of power stocks is down 32 percent even as electricity demand far outstrips supply.
  
  Crisis has historically been a spur for New Delhi to act. Reforms that would improve conditions in telecoms, aviation and power are less polarising than the move to allow global players into multibrand retail and there are recent glimmers of hope for operators in all three industries.
  
  

  "I think out of all this we'll see some positive change, because the change only comes when the crisis is at its highest point," said David Cornell, a director in Mumbai for UK-based fund manager Ocean Dial. "Have we got to the point of maximum crisis yet? Perhaps not."

  
  

  HAVING IT BOTH WAYS The plight of liquor baron Vijay Mallya's Kingfisher Airlines, scrambling to keep creditors at bay as it tries to raise equity, is an example of the gap between India's industrial aspirations and the problem of how to pay for them.

  
  Taxes make jet fuel in India 60-70 percent more costly than the global average, but fares are cheap as loss-making state-run Air India sells tickets below cost, prompting others to respond.
  
  

  In a letter to the prime minister, a copy of which was released to the media here, Jayalalithaa said: "I request you to kindly sanction an additional financial assistance of Rs.25,000 crore for development projects for Tamil Nadu partly as grant and partly as loan."

  
  

  She noted that the "judicious use" of this package in various projects would help accelerate national growth.

  
  

  Citing the reduction in supply of power to the state since March 2011, Jayalalithaa requested the prime minister "to look into the issue and direct the central generating stations to keep up their power supply commitment to Tamil Nadu".

  
  

  Reminding Manmohan Singh of her earlier request for additional allocation of 1,000 MW from the central pool due to unexpected delay in commissioning of new power projects under the central sector, Jayalalithaa requested him to consider the request on priority basis.

  
  

  Referring to the reduced allocation of kerosene - to 44,580 kilo litres per month from June 2011 onwards from earlier levels of 52,806 kilo litres - Jayalalithaa said there was no prior discussion with the state government on the supply cut.

  
  She requested restoration of the older kerosene allocation to the state and five percent increase in supplies from the April 2011 levels.
  
  

  Government's decision to keep FDI in retail on hold will not impact Indo-US relationship, a senior US envoy said on Wednesday.

  
  

  "This is in an internal issue and an issue of the Indian society. The Indo-US relationship is vibrant, strategic and long term. No single decision will impact the relationship," the newly appointed US Consul-General in Kolkata, Dean Thompson, told members of the Bengal National Chamber of Commerce and Industry.

  
  

  However, Thompson wished to see more private sector dynamism.

  
  US-based retail major Walmart was among other retail chains who are eyeing the Indian USD 400 billion retail market. Thomson said next year a few US delegations would be coming to India to forge greater trade ties. He said bilateral trade between the countries had grown significantly in the last few years.
  
  Kapil Sibal's move for online media screening: Why censor Facebook when you don't censor Sunny Leone, asks BJP leader
  Questioning Kapil Sibal's move, a BJP leader has wondered why the government is not censoring Sunny Leone on Bigg Boss.
  
  Bharatiya Janata Party's (BJP) young leader Anurag Singh Thakur wonders why the government wants to censor social media like Facebook when it is not "censoring Sunny Leone", an Indo-Canadian porn star who is a rage on the popular television show "Bigg Boss".
  
  "Why do they want to censor Facebook, when they don't censor Sunny Leone," Thakur asked a day after communications and IT minister Kapil Sibal advocated screening of inflammatory oroffensive content on social networking sites.
  
  "Thousands of children are searching for her on internet and getting connected to porn sites," Thakur said on the sidelines of a conference on effective legislatures organised by PRS Legislative Research.
  
  Congress leader and Lok Sabha MP Shashi Tharoor, who had Tuesday "rejected" censorship for socal media, however, said that after an expostulation from his colleague Kapil Sibal he felt some restriction was needed as Indian politics and society was not as mature as in the West.
  
  "I talked to Kapil Sibal, he told me that there were inflammatory images of gods, goddesses, prophets. When I saw those, I felt there is a problem. Free speech in India is not the same as in the West," he said at the conference.
  
  "If certain people see these images, it can cause violence, we don't have a democracy so mature that we can ignore such things. So certain amount of restraint is necessary," he said.
  
  "Inflammatory communal incitement is like a match at a petrol pump, why should we do that?"Tharoor argued, adding in good measure, however, that he was against censorship.
  
  Contradicting him, Thakur said social media was a platform for common expression and should be allowed to grow and become mature.
  
  "Social media should be given time to get mature," said Thakur, adding that it should be left to the social media to create ways of removing objectionable content.
  
  "There are options like watermarking," he said.
  
  Sibal had on Tuesday said the government will not allow social networking sites to host "objectionable" content and will take steps to screen and remove these.
  Ahluwalia compared the government's move to ask the social networking sites to block objectionable content with the way it treated yoga guru Baba Ramdev when he protested the black money issue in Delhi earlier in the year and was asked to give a declaration on ending the agitation.
  
  Observing that Sibal raised a valid point, the BJP leader said that the government should instead bring the regulation that it planned for these social network sites to Parliament for discussion. "We will give our views then," said Ahluwalia.
  
  

  Stating that the constitution granted complete freedom of speech, Ahluwalia said the social networking sites should not promote pervert pictures or hurt religious sentiments of people.

  
  
  Rejecting the recommendations of parliamentary panel on Lokpal Bill, Team Anna on Wednesday claimed that they will not have any impact on corruption and will instead dismantle the existing anti-graft mechanism.
  "I think the recommendations of the (Parliamentary) Standing Committee, whatever they are, the Lokpal which is coming, I don't think this will have any impact on corruption. On the contrary, it is likely to dismantle whatever exists in the name of anti-corruption in this country," activist Arvind Kejriwal said.
  Claiming that the Standing Committee proposes to divide CBI into three parts, Kejriwal said the move will cripple the investigating agency.
  "So by taking excuse of Anna andolan rather than strengthening the anti-corruption system, they seem to further weaken whatever exists," he said.
  Asked whether Anna Hazare will go ahead with his proposed fast, he said it was for the Gandhian to take a call. "As far as fast is concerned, it is Anna who is going to decide."
  "All that I can say is we are committed till the end for a strong Lokpal Bill," he added.
  Kejriwal was of the view that it was "extremely difficult" at this stage to say anything because Standing Committee's recommendations were not final.
  "The government can accept or go further than that. So let's wait and watch and only then we will be able to tell what form," he said.
  07/12/2011
  

  Parliament logjam over FDI ends after all-party meet

  The deadlock in parliament over the government's decision to allow foreign direct investment (FDI) in retail ended Wednesday after an all-party meeting passed a resolution to suspend the move till consensus is reached.

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  Leaders of political parties coming out the meeting said parliament would function and they had agreed on the government's decision to suspend foreign investment in retail.
  Wednesday is the first day when parliament is expected to function normally since the winter session began Nov 22.
  Both houses were adjourned every single day of the session. In the first few days, the protests were over price rise and the demand for a separate state of Telangana but once the cabinet approved 51 percent FDI in multi-brand and 100 percent in single brand retail as party of crucial reforms, some ruling allies as well as the opposition strongly protested the decision.
  On Saturday, Mamata Banerjee, chief of Trinamool Congress that is a key ally of the United Progressive Alliance (UPA) government and is strongly opposed to the FDI move, announced that the government would put the decision on hold until a consensus emerged on the issue.
  Source: IANS
  07/12/2011
  

  FDI holdback "highly regressive", says India Inc

  New Delhi: Disappointed by the government's decision to put foreign direct investment (FDI) in multi-brand retail on hold, India Inc today described the move as "highly regressive".

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  "... It is a highly regressive move. For the growth of this vital sector of the economy, which is likely to result in strong linkages with the farm sector and for the economy as a whole, it is imperative that reforms like these should take place," FICCI President Harsh Mariwala said.
  He was reacting to the announcement made by Finance Minister Pranab Mukherjee in Parliament that the government has decided to hold back its decision to allow 51 per cent FDI in multi-brand retail.
  The decision to hold back FDI in multi-brand retail will have a strong impact on the domestic and foreign investor sentiment, another chamber, the Confederation of Indian Industry (CII), said in a release.
  "We firmly hope this would not be a rollback and a quick consensus is reached," CII Director General Chandrajit Banerjee said.
  Describing the volte face as a case of "missed opportunity", Assocham Secretary General D S Rawat said, "It will send a very negative message to foreign investors."
  Rawat said FDI in multi-brand retail could have created over 10 million jobs in three years, curbed wastage of farm products and benefited farmers through better prices for their produce.
  Meanwhile, a senior government source told Reuters it is too soon to say that the stalled policy would be watered down, a senior government source said on Wednesday, hours after the government suspended the reform.
  The source also said there was no pause on policy momentum to allow foreign direct investment in airlines.
  Source: PTI
  
  
  

  India's slowing growth and rising subsidy bill are seen impacting the country's fiscal deficit, Finance Minister Pranab Mukherjee said on Wednesday, with a headstrong, near-double digit inflation also posing a grave concern.

  
  

  The government had earlier estimated fiscal deficit to remain at 4.6 per cent of the GDP, but dwindling growth in tax receipts and its failure to raise funds through stake sale in state-run firms have hit its fiscal calculations.

  
  

  Private economists expect fiscal deficit to cross 5.6 per cent of the gross domestic product in the current fiscal year, as India struggles to meet a rising subsidy bill, compounded by a sharp contraction in tax receipts growth.

  
  

  "Growth has come down, inflation is obstinately refusing to be moderated... and consequences of that are going to have a reflection on the fiscal deficit," Mukherjee said.

  
  

  Indian federal bond yields rose in afternoon session on Wednesday as the finance minister said fiscal deficit was a major concern for the government and as investors booked profits following the steep rise in prices in recent sessions.

  
  

  By 10.30 GMT, the benchmark 10-year bond yield was up 5 basis points at 8.63 per cent. Mukherjee was replying to a debate on the government's demand to spend a net additional 569 billion rupees ($11 billion), on top of the budget target of around $244 billion, in the current fiscal year to end-March 2012.

  
  

  The lower house of parliament later approved the proposal. Mukherjee said high global crude prices were impacting domestic prices and the government's subsidy bill, as the government had to partly meet the revenue losses of state-run oil retailers for selling products at state-set cheaper prices.

  
  

  That loss is estimated at 1.32 trillion rupees in this fiscal year, he said, as the price of India's oil import basket has remained around $110 a barrel consistently so far this fiscal, against the budget estimate of around $90 a barrel.

  
  

  Asia's third-largest economy grew 6.9 per cent in the second quarter ending September, at its weakest pace in more than two years, and is expected to grow around 7 per cent this fiscal.

  
  

  The economy grew at 8.5 per cent in 2010/11. India's wholesale price index stood at 9.73 per cent in October, remaining above 9 per cent for nearly one year despite 13 rate increases by the central bank since March 2010.

  
  "This country cannot afford to have more than 5-6 per cent of inflation," Mukherjee aid, adding, food inflation at 8 per cent was very high.
  
  

  India Halts Wal-Mart Entry Amid Protests

  Q

  By Bibhudatta Pradhan and Andrew MacAskill - Dec 7, 2011 5:52 PM GMT+0530
  India suspended its decision to allow overseas retailers including Wal-Mart Stores Inc. (WMT) to open supermarkets, dealing a blow to Prime Minister Manmohan Singh's efforts to boost foreign investment and end a policy paralysis.
  The government reversed its decision amid protests by the opposition and its allies that forced repeated adjournments of parliament for the last two weeks. Both houses resumed today with 10 days left of a crucial session when the government is looking to pass laws including one setting up an anti-graft body.
  "This is political suicide on the part of the Congress government," said Surjit Singh Bhalla, chairman of New Delhi- based Oxus Fund Management. "The only conclusion one can draw is that this government has lost any moral authority to lead. It is completely inexplicable."
  The move underscores the failure of Singh's government to implement economic changes sought by business leaders halfway through its second term. The government faced resistance to its decision to allow foreign direct investment in multibrand retail from two coalition partners, opposition parties and traders, who say the move will wipe out the jobs of small shopkeepers.
  

  Shares Drop

  Shares of Pantaloon Retail India Ltd. (PF), the country's largest retailer, rose 6.3 percent to 198.1 rupees at close in Mumbai. They fell as much as 6.1 percent earlier. Shoppers Stop Ltd. (SHOP) declined 4.9 percent to 349.65 rupees. The benchmark BSE India Sensitive Index advanced 0.4 percent.
  The major impact on stocks "happened on Monday because over the weekend everyone already knew this is going to be suspended," Gautam Duggad, a Mumbai-based analyst with Prabhudas Lilladher Pvt., said in a telephone interview.
  Arti Singh, a spokeswoman for Wal-Mart in India, and Mohan Shukla, director of corporate affairs for Carrefour SA in India, did not answer calls to their mobile phones.
  Finance Minister Pranab Mukherjee told parliament today the decision is suspended until a consensus is reached. Harsh Mariwala, president of the Federation of Indian Chambers of Commerce, said in a statement today the decision was "deeply disappointing" and "highly regressive."
  In an attempt to kick start an economy that expanded at the slowest pace in two years in the quarter ended Sept. 30, Singh had approved overseas companies including Carrefour (CA) andTesco Plc (TSCO) to own as much as 51 percent of retailers selling more than one brand, adding riders to benefit the local economy.
  

  Rotting Farm Produce

  Singh and Commerce Minister Anand Sharma say the proposals to allow foreign investment in India's retail sector would check inflation above 9 percent by reducing the amount of farm produce that currently rots before it can be sold and bring better prices for farmers.
  The government changed course after Singh's two biggest allies, Trinamool Congress and the Dravida Munnetra Kazhagam, opposed the policy arguing the move would lead to job losses and hurt small shopkeepers. The main federal opposition Bharatiya Janata Party was also against the steps for the same reasons.
  "It is very clear now that the reform process is over until we have a new government, a new prime minister," said Laveesh Bhandari, a director of Indicus Analytics, an economics research firm in New Delhi. "The government is so weak they will give up on anything."
  

  Regional Elections

  Facing at least five regional elections next year, including one in Uttar Pradesh, India's most populous state, the government may refrain from taking controversial decisions in the run up to the contests, Bhandari said. Rahul Gandhi, widely expected to lead the ruling party into the 2014 election, may take on a more prominent role campaigning for these states.
  The U-turn on retail may allow the government to pass legislation this parliamentary session that will create a new anti-graft agency with enhanced powers, a demand of activists behind nationwide protests that swept the country in August.
  Anna Hazare, a social activist who went on a 13-day hunger strike that month, has vowed to resume his rallies if the government fails to pass the bill in the parliamentary session that ends Dec. 22.
  To contact the reporters on this story: Bibhudatta Pradhan in New Delhi atbpradhan@bloomberg.net; Andrew Macaskill in New Delhi at amacaskill@bloomberg.net
  To contact the editors responsible for this story: Hari Govind at hgovind@bloomberg.net; Peter Hirschberg at phirschberg@bloomberg.net
  http://www.bloomberg.com/news/2011-12-07/india-suspends-plan-to-allow-foreign-retailers-as-protests-undermine-singh.html
  The euphoria over the decision to open up India's retail trade industry to foreign companies turned into despair after the suspension of the decision Wednesday owing to political pressure from both within and outside the ruling coalition.
  
  India Inc, which had hailed the decision taken last month as one that signals movement forward in the reforms process and one that will help farmers, consumers and small and medium enterprises, felt let down and said it also sends wrong signals overseas.
  
  "The government decision to hold back up to 51 percent FDI in multi-brand retail and 100 percent in single brand retail is deeply disappointing," saidHarsh Mariwala, president, Federation of Indian Chambers of Commerce and Industry ( FICCI).
  
  "It is a highly regressive move. For the growth of this vital sector of the economy which is likely to result in strong linkages with the farm sector and for the economy as a whole it is imperative that the reforms like these should take place," Mariwala said.
  
  Earlier this week the Confederation of Indian Industry (CII) hoped that there will be early consensus among the political parties on the FDI in retail issue as it felt the move would be in the national interest and create jobs and benefit farmers as well as consumers.
  
  "Holding back the cabinet decision on foreign direct investment (FDI) in retail due to political opposition is a clear case of missed opportunity that will dent the country's image as a global investment destination," a leading industry lobby Assocham said.
  
  "It is a clear case of missed opportunity that would have created over 10 million of new jobs in three years, curbed agricultural wastages, benefited farmers with better prices for their produce and brought down prices of many commodities for consumers."
  
  In a decision taken on Thanksgiving Day, Thursday Nov 24, a meeting of the cabinet presided over by Prime Minister Manmohan Singh had decided to allow up to 51 percent foreign equity in multi-brand retailing and enhance the cap on single-brand format to 100 percent.
  
  But with stiff opposition from both within the ruling United Progressive Alliance (UPA), notably the Trinamool Congress and the DMK, as also persistent logjam in parliament due to an unrelenting opposition, the decision was "suspended" pending consensus.
  

  BJP backs mechanism to curb objectionable content on websites

  SPECIAL CORRESPONDENT
  SHARE  ·   COMMENT   ·   PRINT   ·   T+  
  The BJP is not averse to the idea of a mechanism to curb "offensive and objectionable" material on the social networking websites with the approval of Parliament.
  In response to a specific question here, party Deputy Leader in the Rajya Sabha S.S. Ahluwalia said his party would support any "concrete measures" contemplated by the government to contain material on the internet which could hurt religious sentiments or were defamatory in nature.
  On its own, the party has refrained from joining the debate sparked off by Union Telecom Minister Kapil Sibal on the need for a code of conduct to ensure that the global internet companies block 'hate speech' on the social networking websites.
  The move by Mr. Sibal two days ago to summon representatives of Google, Facebook, Yahoo and Microsoft to discuss measures to block objectionable content being posted on social networking sites led to some netizens taking strong objection to the initiative on the plea that it was an attempt to muzzle the freedom of expression.
  The BJP spokesperson referred to a specific example of a picture in circulation on the net which hurt the religious sentiments of a community and said his party was opposed to posting of material that hurt religious or ethical sentiments or posting of morphed pictures.
  "Nobody will approve of such a thing. Everybody will condemn it. But there should be concrete proposals. Nobody is saying there should be laws which strangulate freedom," Mr. Ahluwalia said.
  He also wondered why the Minister had not invited representative of You Tube to the meeting and said that was because he would have come to know that these sites had their own regulation (through filters).
  Mr. Ahluwalia said the manner in which the Minister summoned representatives of the four companies and asked them to sign "on the dotted line" was wrong. "Mr. Sibal calling these four organisations and asking them to sign the paper is just like he told Ramdev to sign a paper (before Ramlila agitation)."
  A senior BJP leader, while broadly endorsing the idea of a way to ensure that social networking sites are not misused to incite sections of society, maintained that it is difficult to prevent such content from getting on the sites of these social networks.
  He said that despite filters put in place by the global internet companies it was impractical to control objectionable material before it was posted on these social networking sites owing to the high flow of postings.
  There are at least two specific instances of senior BJP leaders of becoming victims of impersonation on the social networking sites. Leader of the Opposition in the Rajya Sabha Arun Jaitley has filed complaints against fake accounts in his name both on the twitter and on Facebook.
  Keywords: Union Communications and IT Minister Kapil Sibal, social networking sites, objectionable contents, BJP
  http://www.thehindu.com/news/national/article2695884.ece

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  11. News archive results for Bengal

      Apr 13, 1942	Churchill Reviews Sea War; Japan Strong in Bay of Bengal Christian Science Monitor (Pay-Per-View) - all 128 news articles »
      Apr 15, 1950	Country. It-ajs .Bengal Assam .Imaps. Hear Nehru . Indian Express - all 73 news articles »
      Apr 21, 1971	Cholera, Hit Bengal Camps . Montreal Gazette - all 133 news articles »

  
  

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    Govt wanted 358 items removed from Google's services including YouTube, Orkut in Jan-Jun period
    

    Google has received government requests for removal of 358 items from its services, including YouTube and Orkut, during the January-June period, according to a report by the Internet search giant.

    
    

    As many as 255 item removal requests cited the government criticism as the reason, said the Google Transparency Report. The government had asked Google to remove 236 items from Orkut and 19 items from YouTube for the same reason, it added

    
    

    Other reasons include defamation (39 requests), privacy and security (20 requests), impersonation (14 requests), hate speech (8 requests), pornography (3 requests) and national security (1 request).

    
    

    As much as 51 per cent of the total requests were partially or fully complied with, the report said.

    
    

    The information assumes significance in the backdrop of the raging controversy over the screening of content on social networking sites. Communications and IT Minister Kapil Sibal has asked them to screen derogatory, defamatory and inflammatory content about political leaders and religion.

    
    

    The report added that "we declined the majority of these requests and only locally restricted videos that appeared to violate local laws prohibiting speech that could incite enmity between communities".

    
    

    According to the report, Orkut topped the list of products for which content/item removal requests were received with 264 requests.

    
    

    Google received requests from the state and the local law enforcement agencies to remove YouTube videos that displayed protests against social leaders or used offensive language in reference to religious leaders, the report said.

    
    

    "In addition, we received a request from a local law enforcement agency to remove 236 communities and profiles from Orkut (Google's social networking site) that were critical of a local politician. We did not comply with this request, since the content did not violate our community standards or local law," it said.

    
    

    During the January-June period, Google received 1,739 user data requests, which are governments requests for disclosure of user data from Google accounts or services. In addition, 2,439 users/account data access requests were made.

    
    

    Google report statesd that 70 per cent of the data requests have been fully or partially compiled with.

    
    "The number of requests we receive for user account information as part of criminal investigations has increased year after year. The increase is not surprising, since each year we offer more products and services, and we have a larger number of users," the report said.
    

    CII disappointed with hold-up in FDI in retail

    Industry body CII is quite disappointed with FDI in retail put on hold. CNBC-TV18 catches up with director general of the organization, Chandrajit Banerjee to discuss the industry's view on the government's decision to suspend the 51% FDI in multi-brand till a consensus is reached.
    Below is the edited transcript of the interview. Also watch the accompanying video.
    Q: Is industry more disappointed with the fact that there seems to now be back that policy paralysis which we have been talking about for several months now?
    A: The reason why this entire issue of FDI in multi-brand retail had to move through was to give the street an impression, both in terms of sentiments internally, and to the outside world that yes, we are not in any type of a policy paralysis and things are moving. One of the most important ones, the game changer so to say, is FDI in multi-brand retail that was very much at there on cards. It is very disappointing that it didn't go through, but at the same time, expectations now are that we don't get into the loop of the wish list that we have from our side in terms of the things that we need to do. We just cannot afford to see those getting held up one after the other just because we need to go through a process of consultation.
    Q: How optimistic are you that we are actually going to move on some of those other crucial pending reforms. Let's just take the case of FDI in civil aviation of allowing foreign carriers to pick up a stake in domestic carriers. How optimistic are you feeling at this point because the TMC has clearly pulled a rug from underneath the government's feet?
    A: There is no sense of optimism at this point in time very frankly speaking. Civil aviation is a case in point; similarly there are so many others in the financial services sector which are extremely critical. The point to be noted in each of these is there has been enough deliberations and evidence to show how it would benefit the country, every point has been discussed several time, but if we are going to see this type of a hold up, it just clearly shows that we are playing our politics much more than what's required economically.
    Q: Is corporate India writing off the GST and the Direct Taxes Code, atleast the implementation from early next year? The Finance Minister once again reiterated today that he is going to push for implementation of DTC on 1st April. GST looks highly unlikely. Is corporate India now putting those two tax reforms on the backburner as well?
    A: We are extremely hopeful of DTC. We see the political atmosphere that has really gone around GST. We have been talking to political parties, state governments across the spectrum.
    We can see the resistance that it has in terms of both, from the states as well as from several political parties, in terms of what would be the effect of GST. We are apprehensive about whether it's going to come soon, but we understand that it's going to come over a period of time, not sooner. But yes, DTC is something that gone through a lot of changes and it will soon see the light of day.
    Q: Is your only hope from the winter session of parliament that perhaps the Company's Bill will go through?
    A: We are hopeful about the Company's Bill, but no, we just don't want to stop there. There are many other things and we have talked about the reforms, the list is long as far as what can be rolled out in terms of reforms. We just don't want to stop at the Company's Bill. We really need to see commitments and efforts to move through the others. It's extremely important that we are able to achieve this over a period of time during this session.
    ( Enjoy Moneycontrol.com on iPad and be prepared for a fantastic experience. Get real time stock quotes, interactive charts, market buzz, and watch CNBC-TV18, CNBC Awaaz live on your iPad. Check out the free moneycontrol app. Click here to download now )
    http://www.moneycontrol.com/news/current-affairs/cii-disappointedhold-upfdiretail_630296.html
    
    Retailers call for opening of FDI in non-food multi-brand
    

    Terming the decision to hold back FDI in multi-brand retail as "unfortunate", retailers have expressed disappointment and asked the government to consider partial opening up FDI particularly in the non-food segment.

    
    

    "It is unfortunate that such an important and much needed economic reform has been suspended. I would like to reiterate that allowing FDI in multi-brand retail will benefit India immensely...," Bharti Enterprises Vice Chairman and MD Rajan Bharti Mittal said.

    
    

    "...We hope that various stakeholders across the spectrum will take these facts into account, build consensus and allow this major reform to see the light of the day," he said.

    
    

    Retailers Association of India (RAI) on behalf of all its members has written a letter to the Commerce and the Finance ministries to open the non-food retail to FDI.

    
    

    "If there is a concern over the negative impact on kirana stores, then at least FDI should be allowed in non-food categories such as apparel, electronics and home products," RAI CEO Kumar Rajgopalan told.

    
    

    He said if the government cannot open all the segments of multi-brand retail to FDI given the current situation, at least partial opening should be considered.

    
    

    Expressing similar views, Future Group CEO Kishore Biyani said: "We have been asking the government to at least open up non-food categories to FDI."

    
    

    "There has been a lot of debate in the country already on this issue and I think soon consensus will be arrived at. We have been talking to our suppliers and consumers and they all are of the view that FDI is good for retail," he added.

    
    

    In a separate statement, a spokesperson of Bharti Walmart, which is a joint venture between Bharti Enterprises and US' largest retailer Walmart said, "We respect the government's decision and look forward to a consensus being reached on FDI in multi-brand retail."

    
    

    While refusing to comment on the issue of multi-brand retail, Reliance Retail (Lifestyle) President Biju Kurien said that relaxing FDI in single brand was a good news.

    
    "From what we have understood it looks like FDI in single brand retail has not been put on hold, so it will continue to attract investments into the country but in a far muted way," Kurien said.
    
    India has urged social network companies including Facebook, Twitter and Google to remove offensive material, unleashing a storm of criticism from Internet users complaining of censorship in the world's largest democracy.
    
    Telecoms and information technology ministerKapil Sibal met executives from Facebook, Google, Yahoo and Microsoft on Monday to ask them to screen content, but no agreement with the companies was reached, he said.
    
    Kapil Sibal denied he was promoting censorship but said some of the images and statements on social media risked fanning tensions in India, which has a long history of deadly religious violence. He said the firms had rebuffed earlier calls to take action.
    
    Socially conservative India already censors some films and books considered obscene or likely to stoke religious conflict.
    
    The country of 1.2 billion people created new rules earlier this year obliging Internet companies to remove a range of objectionable content when requested to do so, a move criticised at the time by rights groups and social media companies.
    
    It was not clear if Kapil Sibal was proposing stiffer regulation, but law minister Salman Khurshid later said his colleague was calling for dialogue about offensive content, not censorship.
    
    A New York Times report on Monday that said Kapil Sibal called executives about six weeks ago and showed them a Facebook page that maligned ruling Congress Party chief Sonia Gandhi and told them it was "unacceptable".
    
    The government is very sensitive to criticism of Gandhi, whose family has dominated Indian politics since before independence from the British and has lost two prominent figures to assassination.
    
    Officials are often keen to be seen as protectors of the family. Last year there were moves to block the English translation of a Spanish novel about Sonia Gandhi's life.
    
    "We have to take care of the sensibilities of our people, we have to protect their sensibilities. Our cultural ethos is very important to us," Kapil Sibal said on Tuesday, after showing reporters some images he said were taken from the Internet and would likely offend religious communities.
    
    Kapil Sibal said his ministry was working on guidelines for action against companies which did not respond to the government's requests, but did not specify what action could be taken.
    
    "We'll certainly evolve guidelines to ensure that such blasphemous material is not part of content on any platform."
    Despite the rules in place, India's Internet access is largely unrestricted, in contrast to tight controls in fellow Asian economic powerhouse China. But in line with many other governments around the world, India has become increasingly edgy about the power of social media.
    
    India's bloggers and Twitter users scorned the minister's proposals, saying a prefiltering system would limit free expression and was impossible to implement. The phrase #IdiotKapilSibal was one of India's most tweeted on Tuesday.
    "The idea of prescreening is impossible. How will they do it?...There is no technology currently that determines whether content is 'defamatory' or 'offensive'," India-based cyber security expert Vijay Mukhi told Reuters.
    
    TAKEN ABACK The New York Times report, which Kapil Sibal did not confirm or deny, was the focus of much of the online anger directed at the minister on Tuesday.
    
    "I love Sonia Gandhi. She is awesome. She is God. And never wrong about anything, ever." (This msg is approved by Kapil Sibal's cyber cell)," posted twitter user Sorabh Pant.
    
    Indian authorities were taken aback in the summer by an anti-corruption campaign that multiplied on Facebook and Twitter, drawing tens of thousands of people to street protests and forcing the government to agree to new anti-graft laws.
    
    Last year, as part of a broader electronic security crackdown, Indian security agencies demanded access to communications sent through highly secure BlackBerry devices of Canadian smartphone maker Research In Motion.
    RIM gave India access to its consumer services, including its Messenger services, but said it could not allow monitoring of its enterprise email.
    
    Facebook said in a statement it recognized the government's wish to minimize the amount of offensive content on the web. The California-based company said it removes content that violates company rules on nudity and inciting violence and hatred.
    
    Internet search giant Google, which owns social networking site Orkut and video-sharing siteYouTube, also said it already removes content when it is illegal or against its own policy.
    
    "But when content is legal and doesn't violate our policies, we won't remove it just because it's controversial, as we believe that people's differing views, so long as they're legal, should be respected and protected," the company said in a statement.
    
    Yahoo India declined to comment, as did Microsoft's Indian public relations agency.
    
    India now has 100 million Internet users, less than a tenth of the country's population of 1.2 billion. It is the third-largest user base behind China and the United States. It is seen swelling to 300 million users in the next three years.
    During last year's clampdown, officials also said Google and Skype would be sent notices to set up local servers to allow full monitoring of email and messenger communications.
    
    Britain also faced criticism last month for considering curbs on social media after recent riots even as Foreign Secretary William Hague castigated countries that block the Internet to stifle protests.
    Buoyed by FDI suspension CPI(M) demands ban on forward trading
    
    

    Claiming success in stalling FDI in retail, the CPI(M) today demanded an immediate ban on forward trading in all agriculture commodities, rollback of petrol prices and release of excess foodgrains in government stocks.

    
    

    "We are happy that this time the government has yielded without waiting for the washout of the entire Parliament session. This time they have relented mid-way through the session by agreeing to suspend the decision on FDI in retail," CPI(M) politburo member Sitaram Yechury told reporters here.

    
    

    Asked whether the CPI(M) had gone back on its demand for complete rollback of the FDI decision, he said, "As long as we, as a political party, are part of the stakeholders, there cannot be a consensus."

    
    

    He pointed out that the government has announced that no decision would be taken in this matter till a consensus is reached in discussions with all stakeholders.

    
    

    On Trinamool Congress claiming credit for the suspension of the FDI decision, Yechury said the CPI(M) had been consistently opposing the move since 2004.

    
    

    "We stopped this from happening from 2004. P Chidambaram, the Finance Minister in UPA-I, had made the announcement in the first budget speech," he said.

    
    

    Yechury said that the CPI(M) will now try to impress upon the government to immediately ban all forward trading in all agriculture commodities.

    
    

    Besides this, he said the party will also demand a rollback in the hike in petrol prices as the oil marketing companies have been making profits.

    
    Contending that there was excess stock of foodgrains, he said the CPI(M) wanted it to be released to states atBPL prices so that grain prices can be stabilised.
    
    7 DEC, 2011, 02.04PM IST, DEEPSHIKHA SIKARWAR,ET BUREAU
    

    FDI in retail: As politicos stay at crossroads, bureaucrats present an ignorant picture

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    NEW DELHI: As their political masters wrestle with uniquely political verbs such as 'roll back' and 'hold back' to secure a dignified retreat from the crisis triggered by last week's retail FDI decision,bureaucrats are finding comfort in 'sit back', a state of being they have long been accused of.

    
    

    With little or no clarity on how the latest crisis will be resolved, bureaucrats in key economic ministries are watching from the sidelines, unsure of what to do now as their repeated attempts at kick-starting reforms run into a welter of political problems, which ministers are struggling to handle.

    
    

    The November 24 decision to permit 51% foreign investment in multi-brand retail, born out of countless hours of burning the proverbial midnight oil and pitched as a bold reform measure, is the latest to blow up into a full-fledged crisis, with the move deeply dividing the government and raising the hackles of the Opposition.

    
    

    With no mandate to proceed on any of the key economic issues, particularly those relating to FDI, bureaucrats are increasingly presenting an ignorant picture. Much like the journalists hounding them for information. "We have no clue what is going on," said one exasperated official, who should otherwise be in thick of things.

    
    

    Barely two weeks ago, the Department of Industrial Policy and Promotion (DIPP) was abuzz with action, debating and drafting proposals on how much FDI should be permitted in retail and aviation.

    
    

    But today, DIPP has little clue about the fate of the baby it helped deliver, a mute spectator as rumours swirl political corridors of the 51% FDI limit in retail being cropped to 26% or 49% to make it more politically palatable.

    
    

    The bureaucracy, which drafted the contours of the previous policy after a consultative process that lasted more than a year, has not been consulted on the possible tweaks. There is concern that the politically palatable might end up as something that is economically unworkable.

    
    

    "Can 26% FDI really work? Will the Indian partner be able to bring in the rest of the funds?" asks an official who was intimately involved in the original deliberations, requesting not to be identified.

    
    

    Bureaucrats say with the political class deeply divided and the government seemingly tamping down one crisis after another, there is little point in taking initiative.

    
    

    "The bureaucracy is just waiting on the sidelines and not particularly taking bold decisions. I think even the government does not want them to take bold decisions," said S Narayan, a former finance secretary. Serving government officials concur with this assessment.

    
    

    "There is no direction. Work can begin only when there is clarity on which way policymaking shifts," another government official said. "Whatever they decide, we will execute," he said, making no bones of his frustration with the lack of direction.

    
    

    Most of the officials ET spoke to for this article requested anonymity because of the sensitivity of the topic. It is not just FDI in retail that is likely to be the casualty of this state of affairs. Aviation, pension reform, insurance and tax reforms are being increasingly spoken of as possible victims of the ongoing political logjam.

    More stories from this edition of FDI in Retail

    • FDI in retail in interest of nation: Congress MP
    • Industry feels let down with recall of FDI in retail
    • FDI in retail: Political supremacy has been established: Confederation of All India Traders
    • FDI in retail suspended; Parliament logjam ends after all-party meet
    
    http://economictimes.indiatimes.com/news/politics/nation/fdi-in-retail-as-politicos-stay-at-crossroads-bureaucrats-present-an-ignorant-picture/articleshow/11012934.cms
    
    7 DEC, 2011, 04.52AM IST, SRIVIDYA IYER,ET BUREAU
    

    Twitter, Facebook users target Kapil Sibal for attempt to muzzle internet content

    MUMBAI: Communications and IT minister Kapil Sibal's move to regulate online content is inviting a barrage of barbs on the very social media sites -- Twitter, Facebook and Google Plus -- which he aims to muzzle.

    
    

    Sibal's Wikipedia profile was edited 21 times by web users and activists on Tuesday. His profile was locked later in the evening due to a large amount of web activists trying to edit simultaneously, describing him in unkind words.

    
    

    The MP from Chandni Chowk had to face barbs also from fellow politicians. J&K CM Omar Abdullah tweeted saying, "I hate the idea of censorship. But have seen for myself how dangerous inflammatory content on Facebook and YouTube can be."

    
    

    Hashtag #Kapilsibal and #Censorship were the hot trending topic on Twitter globally. Noted filmmaker Pritish Nandy tweeted saying "This is my country. Freedom of speech is my birthright. You can go to hell sir."

    
    

    The spiteful comments on Twitter against Kapil Sibal flooded the timelines while the hashtags helped further in organising the crowd online against the proposed regulation.

    
    

    "The Internet is the only truly democratic medium. Can see why Sibal wants to gag it." said BJP MP Varun Gandhi.

    
    

    Some others such as Shashi Tharoor sat on the fence. "Spoke to Kapil Sibal. He assured me he opposes political censorship. Concern is regarding communally inflammatory images and language which he described," Tharoor tweeted.

    
    

    Sibal was, however, supported by his colleague Milind Deora who tweeted: "Just as principle of free speech is sacrosanct, incendiary content must also be avoided."

    
    

    About 73 'hate' pages against Sibal have erupted on Facebook. For a nation that has close to 121 million users, of which 43 million users are on Facebook, 3.6 million on Google plus and 3.5 million on Twitter, the move to muzzle social content understably invited ire. Some users suggested that Sibal should be sentFarmville 'requests'.

    
    "To have a human inspection of what goes on the internet every second will require more than the population of the country," said Atul Chitnis, a Bangalore-based technologist and an avid tweeter.
    http://economictimes.indiatimes.com/tech/internet/twitter-facebook-users-target-kapil-sibal-for-attempt-to-muzzle-internet-content/articleshow/11014308.cms
    
    5 DEC, 2011, 03.24AM IST, ET BUREAU
    

    'Reforms' may hold key to market move

    Equity

    
    

    Last week, Dalal Street ended in the green as global equity markets responded positively to the synchronised efforts being taken to tackle the European crisis. The Chinese central bank cut the reserve requirement by 50 basis points and further boosted the positive sentiments in the global economy.

    
    

    The market benchmark index, S&P CNX Nifty, moved up 7.22% last week to close at 5050, which, according to most technical analysts, is a crucial level. Industrial metals moved up in the commodity markets worldwide and Indian metal stocks reflected the movement.

    
    

    The BSE Metal index emerged as the best-performing sectoral index with weekly gains of 10.52%. The economy grew 6.9% in Q2 ended September 2011, in line with expectations, after expanding by 7.7% in the first quarter. The decision to allow 51% FDI in multi-brand retail led to a standoff in Parliament between the government and the opposition.

    
    

    The government is seen pushing the reforms agenda, but the opposition parties did not let any debate take place in Parliament.

    
    

    Analysts are of the view that mere announcements will be of no use unless the bill is passed in both the houses of Parliament. The likelihood of the bills supporting reforms getting passed in the Winter session is very low.

    
    

    Going forward, market participants will remain watchful of the reform process and the RBI's stance on interest rates. Auto stocks are likely to be keenly watched as some analysts expect a cut in the key rates in near future.

    
    

    Long-term investors are expected to adopt a wait-and-watch policy, seeking signals for further action from the advance tax payments of corporate entities.

    
    

    Fixed Income

    
    

    Market participants' expectations of a rate cut pushed the yields downward, on the backdrop of falling food inflation. Some traders expect the falling food inflation to be a regular phenomenon in winter, but it may not last long. Inflation may not see a steep fall and one cannot rule out a spike post winter.

    
    

    Increased government borrowing in the last quarter of the financial year remains a key risk to bond prices. The 10-year bond yield is expected to rule in the range of 8.5% to 8.75% in the near term. "Investors should consider short-term bond funds with a portfolio maturity of one year," says Pankaj Jain, fund manager - fixed income, Taurus Mutual Fund.

    
    

    Gold

    
    

    Gold crossed the Rs 29,000 mark for 10 grams. As central bankers worldwide are expected to infuse liquidity into the financial system, gold is expected to remain in demand.

    
    http://economictimes.indiatimes.com/markets/analysis/reforms-may-hold-key-to-market-move/articleshow/10986472.cms
    05/12/2011
    

    19 years after Babri demolition, Ram temple on backburner?

    Almost two decades after the Babri mosque in Ayodhya was demolished by right-wing activists in the presence of senior Bharatiya Janata Party (BJP) leaders, the politics of Hindutva appear to have lost steam and the demand for the Ram temple less strident.

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    The 16th century mosque was razed Dec 6, 1992 by Hindu mobs, who claimed it stood on the birthplace of Lord Ram and wanted a grand Ram temple constructed there.
    While the Congress and the Left parties allege that the BJP had exploited the sentiments of the Hindus for political gains, the BJP maintains it has not given up the Ram temple issue but is giving primacy to other matters too.
    The BJP had never been serious about the Ram temple, but exploited the sentiments of the Hindu community for political gains, Congress general secretary Rashid Alvi told IANS.
    "Their (BJP's) political graph has come down because of their divisive politics over the Ram mandir (temple)," he said.
    "Now they do not talk much about the issue," claimed Alvi.
    Communist Party of India-Marxist (CPI-M) politburo member S. Ramachandran Pillai told IANS that the Babri demolition had seriously harmed the democratic polity and secular fabric of the country.
    "But the passions have subsided and they are losing support," Pillai said about the BJP-supported Ram temple movement.
    BJP chief Nitin Gadkari however told reporters recently that the party has not given up the Ram temple issue, but was giving more stress on economic issues.
    "I am from a new generation and it is natural that economic issues will receive emphasis, as also GDP, politics of development, progress, besides nationalism and good governance," he said.
    "Unfortunately the BJP has been given a tag of being communal which we are trying to remove," he added.
    But, Mridula Mukherjee, professor in New Delhi's Jawaharlal Nehru University, said it was an illusion if anyone believed that the BJP will shed its communal and Hindutva agenda, which according to political observers, played a major role in its steep rise - from two Lok Sabha seats in 1984 to 85 in 1989 and to 119 in 1991.
    According to Mukherjee, there are pushes and pulls in the BJP which will bring the Ram temple issue to the fore and backburner occasionally.
    "But the core of the party remains to be the RSS (Rashtriya Swayamsewak Sangh) and the hardliners," she added.
    The BJP will though find it hard to raise the issue much while it heads the National Democratic Alliance (NDA) with even its key ally, the Janata Dal-United (JD-U) terming the demolition a "sad incident in our political history".
    JD-U general secretary Javed Raza told IANS that the Babri demolition was a sad incident and a solution should be attempted through dialogue or judicial process.
    On the ground, the day is unlikely to be tension-filled as it was in the 1990s. However, the union home ministry has asked the Uttar Pradesh government to step up security measures in Ayodhya and other communally sensitive places in the state on the anniversary.
    It may have seemed the issue had achieved closure when in September last year, the Allahabad High Court ordered the division of the site of the razed mosque into three parts - two to Hindu institutions and one to the Sunni Waqf board.
    However, both Hindu and Muslim groups appealed the verdict and the Supreme Court stayed the order in May 2011 saying the high court verdict was "strange and surprising".
    Source: IANS
    07/12/2011
    

    Direct tax code to come into force from April 2012: Pranab

    New Delhi: The long-awaited Direct Tax Code (DTC) that seeks to simplify tax laws by lowering the tax rates and bringing more people and firms within the tax net is slated to come into force from the next financial year, beginning Apr 1, 2012, Finance Minister Pranab Mukherjee said here Wednesday.

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    "The proposed Direct Tax Code brings together the policy initiatives on the direct taxes and is slated to come into force from the next financial year," Mukherjee said.
    Addressing the 4th "International Tax Dialogue Global Conference", Mukherjee said the proposed reforms were targeted at simplification of tax system and its administration, rationalisation of tax rates and broadening of its base.
    He said taxation reforms was at the heart of India's economic reforms and liberalisation that started in early 1990s.
    "Tax reforms though gradual have been systemic in scope, particularly when we consider the proposals currently awaiting implementation. The reforms have covered both the direct taxes as well as the indirect taxes," he said.
    To reform the direct tax system, the government proposes to replace the archaic Income Tax Act, 1961, with a new legislation called Direct Tax Code.
    In a bid to reform the indirect tax system, the government proposes to introduce Goods and Services Tax (GST) that will bring uniformity in tax structure across the country.
    Commenting on the current progressive personal income tax system, Mukherjee said it was aimed to reduce inequalities in the society. He said the direct tax revenue has increased ten-fold in the last 14 years. Revenues from direct tax increased from $8.62 billion in 1996-97 to $87 billion in 2010-11.
    "More importantly, the composition of our tax revenues has altered significantly in favour of direct taxes which now account for nearly 60 percent of our total tax revenues. We have tried to address the issue of gender inequality and old age vulnerabilities by providing some tax relief to women and old people," he said.
    Referring to the menace of tax evasion and black money, Mukherjee said tax evasion undermined the intended benefits of a progressive tax policy. He said the problem was compounded by illicit outflow of money from emerging economies and developing countries.
    "Global financial integrity has estimated such annual illicit outflows averaging between $725-810 billion from these countries," he said, adding the Indian government has adopted a five-pronged strategy to deal with these issues.
    The strategy include joining the global crusade against black money, creating an appropriate legislation framework, setting up institution for dealing with illicit money, developing systems for implementations, and imparting skill to the manpower for effective action, the finance minister said.
    Source: IANS
    

--
Palash Biswas
Pl Read:
http://nandigramunited-banga.blogspot.com/