It makes the Truth as Satya Mev Jayate that Money Making is just a Cake Walk in India while the Ninety Nine Percent Excluded population struggle for day to day Survival and the Economy stands just like the Posh Bathroom of Montek singh Ahluwalia. In

It makes the Truth as Satya Mev Jayate that  Money Making is just a Cake Walk in India while the Ninety Nine Percent Excluded population struggle for day to day Survival and the Economy stands just like the Posh Bathroom of Montek singh Ahluwalia. In absence of Fiscal Policy since to the power transfer to the Ruling Micro Minority, Monetary Policies are designed  and redesigned again and again so that Money Making should be easier for the Micro Minority Elite Ruling Class. And the Nuclear Zionist Hindutva Order of Corporate Imperialism, having its agents in the Government ensure the interests of the allies continuous Genocide events.With Market Choice Pranab Mukherjee winning the Raisina Race, now it is major Policy Set Up Reshuffle once again!

Troubled Galaxy destroyed Dreams- chapter 783

Palash Biswas

http://indianholocaustmyfatherslifeandtime.blogspot.in/

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http://basantipurtimes.blogspot.in//


It makes the Truth as Satya Mev Jayate that  Money Making is just a Cake Walk in India while the Ninety Nine Percent Excluded population struggle for day to day Survival and the Economy stands just like the Posh Bathroom of Montek singh Ahluwalia. In absence of Fiscal Policy since to the power transfer to the Ruling Micro Minority, Monetary Policies are designed  and redesigned again and again so that Money Making should be easier for the Micro Minority Elite Ruling Class. And the Nuclear Zionist Hindutva Order of Corporate Imperialism, having its agents in the Government ensure the interests of the allies continuous Genocide events.With Market Choice Pranab Mukherjee winning the Raisina Race, now it is major Policy Set Up Reshuffle once again!





Contrary tothe reports of rate cut Warnings, Financial crisis, Revenue Deficit and InflationIndia is poised to occupy the sixth position in the top 10 wealth markets this year after edging out Spain for 10th slot in 2011, says a report.It exposes the Growth story Hidden Cup Board. It is not only the story about Recycled Black Money pumped in the Free SENSEX Economy, but it showcases the contradiction of an EXCLUSIVE Economy and Polity based on Full Bloom Exclusion!The report further said the world order of wealth markets is witnessing a tilt towards emerging economies which are expected to overtake their Western European counterparts going forward.India, in particular, will experience explosive growth, and is anticipated to jump sixth place by the end of 2012, the report said.

Indians' money in Swiss banks may have risen for the first time in five years, but they account for a meagre 0.14% of total foreign wealth deposited there -- putting India at 55th place globally for such funds.


Moreover,India has been increasing its exposure to American debt since the start of this year and owned US government securities worth USD 51.2 billion till April, amid persisting global economic uncertainties. This is also the first time, at least since April 2011, that the value of India's holding of American debt crossed the USD 50 billion mark. With European debt turmoil threatening to roil the fragile global economic recovery and many emerging nations grappling with slowdown, investing in US government securities has become a more safer bet.

US President Barack Obama and Prime Minister Manmohan Singh have broad agreement on the steps that needs to be taken to spur the global economic growth, the White House said today ahead of the next week's G-20 Summit in Mexico.It is quite in vogue since 1991 as then Fnance Minister Dr Manmohan singh was inducted as the Finance Minster of Washington DC in the Neo Liberal Government heading by Minority Government backed by the micro Minority Ruling class to discard Soviet Model of development as well as Indira Gandhi coined Socialism as Excellent Vote Bank Potion exchanged with erotic Japanese Oil to invoke dead genetials! United States of America never did lose control over the Emerging market shining Hindu India. Recent India visit by Zionist Foreign Secretary Hillary Clinton and Operationilisation of the stumbled Indo US Nuclear day coinciding with Sonia`s Nomination of Bengali Brahamin , the Son of the World as rebel Mamata says, as Presidential candidate tell the Story of Money making and Money laundering. But Black Money Crusaders, the Neo Anti reservation anti Constitution Icons as Anna hazare and his more than Life Size media Hyped Caste Hindu Hindutva Brigade and the OBC Yoga Guru has to do nothing with the phenomenon of Wealth Making and Ever expanding India Incs worldwide and Corporate Lobbying and the Extra Constitutional elements heading governance and Policy Making!

However, it must be Noted  before the Cabinet reshuffle with shifting the erring Finance Minister Pranab Mukherjee  in the Presidential House and the Monetary Super Expert Montek singh Ahluwalia, Foreign Minister KRISHNA and  the father of Indian Knowledge economy Kapil Sibal and the best ever Marketing Agent of Global Capital Kamal Nath still hatching eggs in Washington,Both Obama and Singh would be attending the next week's G-20 summit in Los Cabos in Mexico. However, no bilateral meeting between the two has been scheduled.

Mind you,Finance Minister Pranab Mukherjee  just rejected Standard and Poor's report that India could be the first BRIC country to falter and said there will be a turnaround in growth prospects in the coming months.Hours after S&P threatened to downgrade India's credit rating to speculative grade with highly loaded political remarks, Mukherjee said government is fully seized of the current situation and expressed confidence that there will be a turnaround in growth prospects in the coming months.

"This (S&P report) is not based on a fresh rating action. S&P had issued India's sovereign credit rating on April 25 reaffirming the country's long term sovereign credit rating at BBB(-), although it revised the outlook from negative to stable," he said in the statement.

Between April and now, the Finance Minister said there were no significant events to indicate that the economy's vulnerability to shocks have increased though growth numbers for the fourth quarter 2011-12 were below expectations.He said S&P's recent report suggest that the main factor that would determine investment grade credit rating is the government's reaction to potentially slower growth and greater vulnerability to economic shocks.

BRIC represents grouping of Brazil, Russia, India and China.

Pl do not miss the Presidential IPL entertainment as you may have to wait to watch the Champion league for the New Financial Minister and the Railway Minister provided Mamta Banerji is kcked out of UPA Two as she has exposed herself to the Hounds of market Forces which helped her destroy Marxist Hegemony. The best prospect is offered her to fall in the Hindutva Trap master minded by RSS and its Projected Prime Minister face Narendra Modi, the Notorious Genocide Gestapo Master and lose the Muslim weighty Vote bank in West Bengal which supported herv to romp Home and welcome the US Foreign Secretary Hillary Clinton in writers to prsent her Ravindra`s Gitvitan. The Playing of rabindra sangeet would not help until she come to a compromising poaistion with Omnipotent Corporate imperialims which is responsible for the ar against people, bastard indiscriminate land acqision and ejection of SC, ST, OBC and Minorities form Home, Land, Forest, Water Bodies, Livelihood, Citizenship and the world of Civil and Human rights!Friends you might also enjoy the Push over economic ethnc Cleasing and Deportation Drive with Illegal ADHAR Project headed by Nandan Nilekani. You may have not to wait much for the Destruction of the fundmentals of the economy as the Growth Rate of Industrial Production and Agriculture lower down to virtual Zero. DTC , GST, Disinvestment and Unresisted Flow of recycled Balck money known as Foreign capital would make it easier for Destruction to accommodate smooth Wealth Making as the report expects.Privatisation, Passing of Financial Bills, Presidential Decrees, Judicial Intervention, AFSPA, Military Operations to displace the Aborigine Huamnscape, disinvestment, indiscriminate land acquisition, privatisation, multi brand retail FDI, contact farming and Green revolution have to accomplish the task to make a Shanghai of rural rustic India, now the emerging Market.The markets remained highly volatile during the entire week as investors remained ambivalent about the likely outcome of the elections in Greece and the Reserve Bank of India (RBI) policy meet.

New Delhi: 1:05 PM The NDA meet, that was held on Sunday to decide on its Presidential nominee, failed to arrive at a consensus. Sources said that LK Advani was keen that NDA contested Pranab's nomination. Sources said that there was no consensus between the BJD and the JD(U) on Pranab Mukherjee.

11:11 AM NDA meet begins. The NDA has called the meet to resolve coalition differences over their presidential nominee.

10:50 AM Trinamool Congress (TMC) Chief Mamata Banerjee refuses to lend her support to possible NDA nominee PA Sangma.

10:03 AM: Shiv Sena may skip NDA meet, say sources. The sources add the party is undecided on giving support to the NDA's presidential candidate.

The NDA has called a crucial meeting on Sunday to decide on its Presidential nominee. The coalition is divided on whom to back, with a section of it favouring PA Sangma, another favouring APJ Kalam and yet another favouring UPA's nominee Pranab Mukherjee.

Sources say that senior BJP leader LK Advani is in favour of a contest and has reportedly been told by AIADMK Chief Jayalalithaa to support PA Sangma.

NDA coalition partner the JD(U), however, says that a contest at this stage would only bring embarrassment to it. The party has reportedly said that it favours a consensus around the UPA's nominee Pranab Mukherjee. Sources within the party say that it feels that a contest could be embarrassing as neither APJ Abdul Kalam has so far agreed to contest nor the NDA has the numbers.

JD(U) Chief Sharad Yadav, who on Saturday met Shiromani Akali Dal (SAD) leaders including Naresh Gujral, said after the meeting that NDA will take a collective decision on the matter after the meeting on Sunday.

However, another section within the party favours a contest as they see the Presidential elections as the big battle before the 2014 General Elections and feel that they shouldn't be seen going without a fight.

Senior party leader Ram Jethamalani on Saturday even threatened to defy the party and contest himself for the race if the BJP backed the UPA's nominee Pranab Mukherjee.

Janata Party leader Subramanian Swamy too is in favour of a contest. He, however, supports Kalam. According to him, he wants to see Pranab challenged.

Meanwhile, the Biju Janata Dal (BJD) of Odisha has said that it fully backs PA Sangma.

Sources in NDA allies said that much will depend on how the BJD and AIADMK, which have backed PA Sangma's candidature, respond to the situation.

"Both NDA and UPA are wooing these two parties. If they continue supporting Sangma, there could be a contest, otherwise no contest. You see Kalam is not going to agree to contest unless he is cent per cent sure of winning the seat," a senior leader from the alliance said.

The leader also indicated that the JD(U) is soft towards Pranab but the party won't take the extreme step of opposing NDA's decision if the majority view is for contest.

All eyes are on the NDA meet now.

"I think they (Obama and Singh) are in broad agreement about the need for there to be steps to promote global growth, about the need to have, again, European leaders use the G-20 as an opportunity to discuss their plans around the Eurozone," Deputy National Security Advisor Ben Rhodes told reporters at a White House news conference.

Rhodes said Obama spoke to Singh a day earlier over phone ahead of the G-20 Summit.

"They talked about the G-20 agenda. So I think that call was very much about coordinating efforts leading into the G-20," he said.

The US and India has continued its strategic dialogue with India that runs across a range of different sectors, he said.

"We want to see deeper strategic cooperation between our two countries, for instance as we deal with the future security of South Asia and Afghanistan as the United States draws down there," Rhodes said.

"We'd like to see deeper economic cooperation, including increased US exports and commercial ties with India. And that's something that was discussed in recent days and the President is personally very supportive of those efforts," the top Obama aide said in response to a question.

"I'd just say we've been supportive of efforts within India to crack down on corruption. The G-20 also has been a forum that we've used to lift up the issue of corruption so that countries can share best practices and join cooperative efforts to combat corruption," he said.

With Finance Minister Pranab Mukherjee virtually set to move to Rashtrapati Bhavan as President, government will have to look for successors to chair the two dozen odd GoMs and EGoMs he heads.

Mukherjee chairs ministerial groups on diverse issues from deciding the location of the National War Memorial to tackling issues related 2G and 3G telecom licenses.

Of the current 39 ministerial groups, he chairs 12 of the 27 Group of Ministers and all the 12 Empowered Group of Ministers.

Among the keenly watched EGoMs is the ministerial group on auction of telecom spectrum for its examination of the 2G reserve price and the policy for auctioning spectrum.

Another EGoM takes decisions on the Centre's policy on the Mass Rapid Transport System, which includes metro rail projects in Delhi, Mumbai, Bangalore, Chennai and Kolkata.

The group on procurement and management of food is also a crucial one as it also deals with the UPA-II's ambitious agenda of the National Food Security Bill. The EGoM has taken some key policy decisions like opening the export of wheat and rice last year.

The ministerial group on under-recoveries of the oil marketing companies on sale of petrol, diesel, PDS kerosene and domestic LPG which decided to raised the prices of three regulated items.

Mukherjee also chaired the GoM on tackling corruption which cleared the Public Procurement Bill which was introduced in the Budget Session of Parliament.

Besides, the Finance Minister also chaired a number of GoMs set up since the UPA-II came to power in 2009.

"47 GoMs and 13 EGoMs constituted since 22.05.2009, have either submitted their report(s) or considered the issue(s) placed before them," the government informed the Lok Sabha last month.

Mukherjee also heads GoMs, including those to Review Fertiliser Policy, location of National War Memorial, economic cooperation agreement between India and ASEAN, Administrative Reforms Commission, Civil Aviation, Coal Mines Amendment Bill and issues related to World Trade Organisation.

Home Minister P Chidambaram chairs 10 GoMs, with the latest addition to his list being the one to look into the constitution of a independent regulator for the coal sector.

Chidambaram also chairs ministerial groups to oversee the modernisation of transport system in Delhi, issues pertaining to functioning of Prasar Bharti, management of salt-pan land in Mumbai, construction of a greenfield airport, committee regarding Bhopal gas leak disaster among others.

So far, 99 GoMs or EGoMs have been constituted since the UPA-II came to power in 2009. UPA-I had constituted about 80 GoMs.

"Uncertainty about the future of the euro and the worsening of the sovereign crisis in Europe are predicted to cause continuing problems, but many emerging markets are expected to continue marching ahead," according to Datamonitor's 2012 global wealth market report.


The top 10 wealth markets, in terms of dollar millionaire holdings at the end of 2011, in descending order, were the US, Japan, China, the UK, Germany, Italy, Canada, France, Brazil, and India, it said.

Moreover, the cumulative value of the liquid assets held by millionaires in the emerging economies of Brazil, China, and India are likely to triple to USD 4.6 trillion from USD 1.5 trillion between 2006 and 2015.


Top 10 wealth markets in 2015 will be the US at number one, with China in second place, followed by Japan, the UK, Germany, India, Brazil, Italy, Canada, and France, it added.

Some of the mature markets have, however, proven more resilient, with the UK and the US, in particular, expected to perform strongly. The US will remain the largest high net worth market in the world till 2015, the report said.

Spain's fall from the top 10 wealth market in 2011 was largely due to the combination of its poor performance and the explosive growth seen in India and Brazil, the report said.

"The collapse of Spanish real estate and the highest unemployment rate in Western Europe are taking their toll on the market, and the austerity measures recently announced by the government are further aggravating growth prospects for the already struggling sector," Datamonitor said.

Latest data from the US Treasury Department show that India's holding of American government securities increased nearly USD 9 billion in the first four months of 2012.

At the end of April, India held securities worth USD 51.2 billion compared to USD 42.8 billion in January.

Reflecting the increased exposure, India's holding of American securities climbed to USD 44.1 billion in February and the same rose to USD 46.7 billion in March.

In just one month -- between March and April -- the holding went up by about USD 5 billion.

The significant rise in the securities' holding comes against the backdrop of question marks over the future of euro -- the currency shared by 17 European nations. The prevailing world economic situation and overall volatility in currency markets have also made the US dollar a safe haven.

As on April, India's owned more American debt than developed nations including South Korea (USD 41.6 billion) and Italy (USD 24.6 billion).

Meanwhile, China remained the largest holder of US treasury securities, holding USD 1.145 trillion at the end of April. The same rose marginally from USD 1.144 trillion in March.

Japan is the second biggest holder of US treasury securities and they were worth USD 1.066 trillion in April.

The US -- world's largest economy -- grew 1.9 per cent in the three months ended March 2012.

"Real gross domestic product -- the output of goods and services produced by labour and property located in the US -- increased at an annual rate of 1.9 per cent in the first quarter of 2012," the US Bureau of Economic Analysis had said in May.

On the other hand,State Bank of India, the country's biggest lender, plans to borrow $1 billion to $2 billion from the overseas market in the next three months, Chairman Pratip Chaudhuri told reporters on the sidelines of a banking event.

SBI doubled its overseas borrowing programme to $10 billion last year but poor market conditions have deterred it from making fundraising plans since.

Chaudhuri did not provide details of where the bank would raise funds, or the pricing.

The bank was downgraded by Moody's Investor Service last October because of its thin capital base and worsening asset quality.

The Indian government pumped in 79 billion rupees into the bank in March and higher profits helped it boost its capital adequacy ratio. The bank's asset quality has also improved due to greater stress on recoveries and early detection of bad loans, Chaudhuri added.

The total overseas funds in Switzerland's banking system stood at 1.53 trillion


Swiss francs (about Rs. 90 trillion) at the end of 2011, which included 2.18 billion Swiss francs (Rs 12,700 crore) belonging to Indian individuals and entities.
While India accounted for only 0.14% of total foreign money in Swiss banks, the UK accounted for the largest share of little over 20%, followed closely by the US with about 18%.

As per the latest data disclosed by Swiss National Bank (SNB), Switzerland's central bank, India is now ranked 55th in terms of funds belonging to overseas clients in Swiss banks.

Among the top-ranked jurisdictions, the UK and the US were followed by West Indies, Jersey, Germany, Bahamas, Guernsey, Luxembourg, Panama and France, Hong Kong, Cayman Islands, Japan, Singapore, Australia, Italy, Netherlands, Russia, Saudi Arabia and United Arab of Emirates.

The SNB data shows that the quantum of money held by Indians in the Swiss banking system rose for the first time in five years during 2011.

These official figures, described by SNB as 'liabilities' of Swiss banks towards their clients from various countries, do not indicate towards the quantum of the much-debated alleged black money held by Indians or other nationals in the safe havens of Switzerland.

Also, SNB's figures do not include the money that Indians or other nationals might have in Swiss banks in others' names.

The total funds held by Indian individuals and entities include 2.025 billion Swiss francs held directly by them and 158 million held through 'fiduciaries' or wealth managers.

Fiduciaries are essentially wealth fund managers who hold the money of Indian private holders and families in the so-called numbered accounts.

The Swiss banks' direct liabilities towards clients from India include funds held in savings and deposit accounts by Indian individuals, financial institutions and corporates.

India is ranked 55th in terms of only direct deposits as well, while it is placed much lower at 76th rank for fiduciary funds, where the top-ranked jurisdictions include West Indies, Panama, UK, Saudi Arabia, Bahamas, Liberia, Cayman Islands, UAE, Turkey, Russia, Germany and the US.

Pakistan is ranked higher than India at 52nd place in terms of fiduciary funds (355 million (rpt) million Swiss francs), but lower at 60th for total money (2.12 billion Swiss francs).

While the funds belonging to Indians rose by about Rs. 3,500 crore last year, the total foreign money there rose by about Rs. two lakh crore (more than 36 billion Swiss francs).

The quantum of funds held by Indians in Swiss banks had last increased in 2006 by about one billion Swiss francs to 6.5 billion Swiss francs (over Rs. 40,000 crore), but fell to less than one-third by the end of 2010.

In a White Paper on black money tabled in Parliament last month, the government had also said that Swiss banks' total liabilities towards Indians have been coming down and fell by more than Rs. 14,000 crore between 2006 and 2010.

Amid allegations of Indians stashing huge amounts of illicit wealth abroad, including in Swiss banks, the government says it is making various efforts to bring back the unaccounted money.

As per SNB data, funds held by Indians directly in the Swiss banks increased by about 370 million Swiss francs to 2.025 billion Swiss francs (Rs 11,800 crore) in 2011.

On the other hand, the funds held through 'fiduciaries' nearly halved to 158 million Swiss francs (about Rs. 900 crore) in 2011 -- marking the fifth straight year of decline.

The experts have been saying that there has been a "perceptible flight of funds" of Indian holders from Swiss banks to other places in the recent years.

The foreign capital-friendly regulations in places like Mauritius and Dubai were possibly being exploited by those seeking to move their funds away from Swiss banks, which have come under strict scrutiny of late.

At the same time, the global pressure has been rising on Switzerland to ask its banks to share information about their clients with foreign governments.

It is suspected that Indians having illicit wealth in Swiss banks may be moving their funds in fear of being exposed due to growing scrutiny. At the same time, even those having legitimate funds in Swiss banks may be moving away, due to a growing level of negativity attached to them.

The countries placed above India in terms of total funds in Swiss banks also include Ireland, Spain, Israel, Canada, Brazil, Greece, China, Egypt, Thailand, Philippines, South Korea and New Zealand. Those ranked below India include Qatar, South Africa, Pakistan, Bahrain, Kenya, Nigeria and Iran.

Amidst expectations of interest rate cut by the Reserve Bank on Monday, Finance Minister Pranab Mukherjee on Saturday expressed confidence that the central bank would "adjust the monetary policy" to address the challenges before the economy.

"The RBI is one of the most respected monetary authorities... I am confident they (RBI) will adjust the monetary policy as we are adjusting fiscal policy," the Finance Minister said at an Assocham conference on financial sector in Delhi.

In his first public address after being nominated as the UPA candidate for the Presidential elections due next month, Mukherjee listed slow growth, high fiscal and current account deficits, inflation and negative sentiments as challenges facing the economy.

The government, he said, is taking fiscal measures to ensure that the central finances remain strong in wake of "difficult times" and expects the RBI to take monetary steps.

On Eurozone crisis, Mukherjee said, India is as concerned as others whether Greece will remain part of the currency union, as the developments are also impacting value of rupee. Rupee has lost against dollar by about 20% in the last one year.

On concerns over fiscal deficit, he said, "we are taking steps, not sitting idle...if federal finances become weak, nobody will be able to bail out Indian economy."

As regards the apprehensions expressed by global rating agencies, he said, "as Finance Minister I cannot ignore ground reality, apprehensions of Indian industry and credit rating agencies".

His comments follow warning by global rating agency, Standard & Poor's that India's credit rating may be downgraded to below investment grade.

Mukherjee said that the government is working on managing its finances and reducing subsidies. "We shall have to reduce our subsidy... What I projected that it must be below 2% of GDP, we cannot afford to have it. We shall have to improve delivery mechanism for reaching subsidy to targeted beneficiaries. And we are taking steps we are not sitting idle," he said.

The government targets to bring down the subsidy bill to below 2% of GDP in the current fiscal and 1.75% in the subsequent years. The government has budgeted the amount for major subsidies including food, fuel and fertiliser at Rs1.79 lakh crore for 2012-13, lower than the Rs2.08 lakh crore in the last fiscal.

Pointing out that the country is in a difficult economic situation and uncertainties over eurozone crisis, Mukherjee said, "...the devaluation of Rupee, which is closely linked with the eurozone crisis, is a matter of concern". He said the global economy is facing turmoil with growth in advanced countries not coming up to expectations, Italy in recession and the UK on the brink of recession.

Saying that the country can benefit from the lowering of crude oil prices, Mukherjee said, "We can reduce our import bills to some extent". Crude oil prices have softened to USD 90 a barrel, from over USD 120 a barrel earlier this year.

In order to provide relief to customers, Mukherjee said he has written to Chief Ministers to consider temporarily lowering of duties on petroleum products. "I have suggested to them (State CMs) if you agree to reduce the tax burden temporarily, say till crude prices come to USD 90, Union government is ready to reduce. I have written to Chief Ministers. It will provide relief to consumers.

"When situation is difficult, burden has to be shared by all stakeholders, it should not be passed on to only one stakeholder," he said. The oil marketing companies had hiked petrol prices by Rs7.50 a litre in May. Later in June it had rolled back the price hike by Rs2 a litre.

It is quite an irony that Prime Minister Manmohan Singh on Saturday voiced concern that continuing problems in the eurozone will further dampen global markets and adversely impact India's own economic growth

Singh also said that the need to revive global growth should be an issue of immediate concern which must be addressed by world leaders.

He made these remarks prior to his departure for Mexico and Brazil to attend the seventh summit of the Group of 20 developed and developing countries(G-20) in the Mexican resort town of Los Cabos on June 18 and the Rio+20 Summit in Rio De Janeiro.

Observing that G-20 Leaders will meet once again in the shadow of the economic crisis in the Eurozone and a "faltering" global economy, Singh said the situation in Europe is of particular concern as it accounts for a significant share of the global economy and is also India's major trade and investment partner.

"Continuing problems there will further dampen global markets and adversely impact our own economic growth. It is our hope that European leaders will take resolute action to resolve the financial problems facing them," he said.

Singh emphasised on the need to revive global growth.

"It is imperative that the G-20 countries work in coordination to implement policies that promote sustained growth. India has been pursuing this objective in its capacity as the Co-Chair of the Working Group on the 'Framework for Strong, Sustainable and Balanced Growth'.

"I will stress the need to ensure primacy of the development dimension in G-20 deliberations and the need to focus on investment in infrastructure as a means of stimulating global growth," he said.

Singh also noted that BRICS (Brazil, Russia, India, China, South Africa) countries have been the new growth poles of the global economy

"BRICS leaders have agreed to work with the global community to ensure international policy coordination to maintain macroeconomic stability conducive to healthy recovery of the global economy," he said.

As current Chair of BRICS, India will host an informal meeting of BRICS leaders prior to the commencement of the G-20 Summit to exchange views on the agenda of the Summit.

On the Earth Summit in Rio, the Prime Minister said the cardinal principles of Rio 1992 must not be diluted, particularly the principle of common but differentiated responsibilities as well as equity.

"We have come a long way since the Earth Summit in Rio in 1992. Environmental concerns today occupy the centre-stage of global discourse. Yet, we are far from pursing a truly sustainable path towards development," he said.

The UN Conference on Sustainable Development is an historic opportunity to give meaningful content to paradigm of sustainable development. At its heart lies the imperative of moving away from a resource intensive development path while ensuring inclusive and balanced development for eradicating the grinding poverty that afflicts millions.

The Rio+20 Conference is likely to debate complex and contentious issues such as green economy and Sustainable Development Goals.

"I will emphasise that we must not dilute the cardinal principles of Rio 1992, particularly the principle of common but differentiated responsibilities as well as equity, which have been at the core of global sustainable development efforts.

"We must acknowledge the continuing differences in levels of development across the world, and the need for provision of financial and technological support to the developing world if we are to work together as a global community to address our most pressing environmental challenges," he said, adding India will work with like-minded countries to forge a consensus in this endeavour.

During his visit, the Prime Minister is expected to hold separate meeting with Russian President Vladimir Putin, German Chancellor Angela Merkel, French President Francois Hollande, British Prime Minister David Cameron, Canadian Prime Minister Stephen Harper, Chinese Premier Wen Jiabao, Lankan President Mahinda Rajapaksa, Nepalese Prime Minister Baburam Bhattarai and other leaders.

The Reserve Bank of India (RBI) will announce its mid-term credit policy review on June 18.

Expectations are a bit mixed, but clearly have increased over the past week, especially after that extraordinary poor growth number. May inflation came in at 7.6%, in line with expectations, but clearly not a very happy number per se.
In an interview to CNBC-TV18, Soumyo Dutta, managing director and head of trading at Citibank, A Prasanna, chief economist at ICICI Securities Primary Dealer and Jahangir Aziz, economist at JP Morgan, speak about their expectations from the central bank and give their outlook going forward.

An overwhelming 90% of the market expects a quarter repo cut while 40% expect a cash reserve ratio (CRR) cut, reports CNBC-TV18's Gopika Gopakumar.

Majority of bankers and economist polled by CNBC-TV18 say that RBI will cut repo rate by 25 basis points on June 18. However, the market is still divided over whether the RBI will move on CRR because only 40% expect RBI to cut CRR by 25 basis points or more while 60% expect RBI to retain CRR at the current 4.75%.

Since January this year RBI has cut CRR by 125 basis points and repo by 50 basis points and the entire banking system has not been able to pass on this rate cut. This time, too, the market is divided over the possibility of a base rate cut. 50% expect banks to pass on this policy transmission by cutting lending and deposit rates.

However the other 50% is not sure or do not expect RBI to cut or banks to cut lending and deposit rates. But if there is a CRR cut, chances could be different because majority expects banks to cut lending and deposit rates if RBI moves on CRR.

That's kind of crucial because majority expect RBI to retain that April policy tone where RBI will be more balanced between inflation and growth. Only 40% expect RBI to be more dovish and probably hint at a possible rate cut going forward. But in terms of growth, clearly, the market is expecting RBI to revise growth forecasts but not in this policy, the revision could happen in the next policy which will happen in July.

The market is going ahead with a lower growth forecast but clearly not expecting RBI to revise it anytime in this policy.

Below is the edited transcript of the interview on CNBC-TV18. Also watch the accompanying videos.

Q: What have you made of the macro economic numbers and the way they are stacking up? What a central banker should do? What you think the RBI is likely to do?

Prasanna: In terms of data, I think clearly growth has slowed down more than what RBI or even most of the market had anticipated, including us. April IIP data was quite miserable. Although I should point out that we have serious reservations with the quality of data and before we believe that the data might be overstated in the slowdown, but then this is a data we have to work with and therefore we have to pay attention to it.

On the other hand, headline inflation is worrisome, but the core inflation for the last three months has trended lower. It is running around 5%, which is definitely a welcome news. The demand pressures are coming down. We have had freight hike, excise hike and rupee depreciation. Despite that, core inflation hasn't moved up. So, the picture is quite consistent.

In terms of what a central banker should do and what RBI should do, personally I would think it would be better for them to wait out in this review and take the call in July. If the data continues to print bad, for example, on the growth side or if things deteriorate further in Europe, you can always take the opportunity in July to cut by 50 bps.

We have had some RBI commentary. Prior to the GDP data, the governor pointed out that they will take growth data into consideration. Post the GDP data, the deputy governor said that the room has probably increased for them to lower rates. So, if you take that into consideration, the fact that sentiment has been hit quite badly by the growth data, I think we will see a 25 basis points reduction in repo rate.

Q: I personally would worry that we have not quite broken the back of inflation at all, even if the back of growth has been broken. What should the RBI do? What will it do?


Aziz: I will agree completely with Prasanna. We have seen headline inflation go up, but we have seen core behave rather well. Infact if you look at three month, on three month movements, core has actually fallen and this sort of lines up with the fact that the economy is slowing down.

I think the concern is that what we don't know is how the world is going to behave in the next two-three months time. June 17 is the Greek election. I don't think the Greek election will provide any real clarity as to what is going to happen to Europe. But I think over the next period of time, you are probably going to get much greater clarity in the degree and the amount of quantitative easing the Fed, ECB or Bank of Japan seem to be planning to do.
If that happens then the decline in commodity prices, which we have seen, just might vanish. So, I would hope that the RBI waits out because that allows them to see both the political uncertainty and the policy uncertainty in Europe, but importantly also the political uncertainty and what the policy uncertainty will be in India. Hopefully by July 10, the problems associated with the presidential elections will be over. The government will really not have too many excuses not to do the things that it was suppose to do.

Q: Do you still think that they might move, given the expectations that to some extent they themselves have kindled?

Aziz: I think there is a lot of pressure on the RBI. The RBI delivered 50 basis points rate cut just six weeks back. That was more than what the market had anticipated and probably more than what was borrowed in that period of time. So, it isn't all that difficult for the RBI to say, 'look, we have given a 50 basis points rate cut, let's see what happens in the next month or so. We can take a call on July 31.' But I think the pressure is pretty high on RBI right now.