Going beyond Inflation Targeting – (Economics)
The draft Indian financial code bill states that the primary goal of RBI should be inflation targeting. An argument for inflation targeting is that in the long run there is no trade-off between inflation and unemployment. This is an ambiguous assertion.
The Reserve Bank of India should focus on output at least as much as it does on inflation, but this sits uncomfortably with the mandate of inflation targeting proposed in the draft Indian Financial Code.
Rejection of mercy plea of two convicts – (polity)
• The President is bound by the advice of the Council of Ministers in deciding cases of mercy petitions, the Home Ministry in this case. The decision has been endorsed by Union Home Minister Rajnath Singh.
Admirable show of restraint – (International Relations)
With the recent terrorist attacks from Pakistan in India, one can observe that India has still maintained a dialogue with Pakistan and has been quite careful in its press releases regarding the entire episode. That we have moved from ‘no talks until terror stops’ to ‘talk about terror’ proves how crucial diplomatic engagement is in any Indian government’s Pakistan policy.
India must focus on the ongoing 26/11 trial because it represents hope that justice may yet be done, and because Pakistani investigators have independently confirmed the presence of terror groups inside Pakistan.
India and Pakistan need to set up a ‘back- Channel’ to unable hard negotiations and strengthen diplomatic ties between the two nations.
Much needed reforms – (International Relations)
The UNSC, created in the post-War context, doesn’t actually reflect the changes that have occurred in the international system after the end of the Cold War. In a quarter century, the global economic architecture has undergone massive changes. The developing nations, including India, now play a bigger role in international affairs. But within the UN, the five permanent veto-wielding members still effectively take all the crucial decisions. The Indian position is that this “democracy deficit in the UN prevents effective multilateralism” in the global arena.
Meaningful reform of the Council to make it more representative and democratic would strengthen the UN to address the challenges of a changing world more effectively.
Harnessing the strength of each state – (Economics)
Removal of barriers to inter-State trade will be a significant first step to achieve a fully-integrated common Indian market.
The biggest barrier to inter-State agricultural trade today is the market-distorting rules and regulations, of which the Essential Commodities Act (ECA) and the Agricultural Produce Market Committee (APMC) Act are the prominent ones.
In the case of manufactured goods, the biggest impediment is the plethora of tax regimes and varying rules and regulations in different States. Much of this can be solved by the implementation of a well-designed Goods and Services Tax (GST) to replace the existing system of multiple taxes such as VAT, CENVAT, Central Sales Tax and Octroi. Further, there is service tax to be paid on transportation charges apart from the varying compliance costs. There are also various inter-State regulatory requirements that involve detailed documentation like permits, waybills, tax invoices and delivery notes. Add to this the poor road infrastructure and it can be easily seen how ‘Make in India’ requires a lot more work. Finally, in order to increase inter-State trade, it is important for each State to have its own specific industrial policy that is consistent with its comparative advantage.
Russia backs India’s bid for a permanent UNSC seat – (International Relations)
Russia’s explanation comes days after it was made known that along with the U.S. and China, Moscow was opposed to negotiations to reform the U.N. body,which would have paved the way for India’s inclusion in the group with the P-5.
China too remains a big roadblock as it has neither clarified its position on support for India nor is it expected to support the adoption of the UNSC expansion process if it comes to a vote by September 15, when the current UNGA session ends.