Expert Zone
Straight from the Specialists
U.S.-Afghan agreement: Issues to be addressed
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The draft strategic partnership agreement between the U.S. and Kabul to address their relationship after the completion of the International Security Assistance Force (ISAF) withdrawal in 2014 has been arrived at after negotiations. The draft addresses the issues for ten years beyond 2014. A scrutiny of Afghan forces and the challenges they face highlights issues that merit inclusion in the agreement.
Currently, the ISAF has six regional commands including Kabul. These are the nerve centres from where operations are planned and conducted in respective regions. The ISAF needs to continue manning some of these headquarters, jointly with the Afghans, even after tactical operations are undertaken exclusively by Afghan forces. The headquarters located to oversee areas along the borders with Pakistan are more critical. Other headquarters may be downsized, or suitably merged and manned by Afghans alone. ISAF needs to also cater for adequate force levels being retained at critical headquarters to be able to decisively intervene should an adverse situation develop.
Afghans are divided along ethnic lines. Militaries have to owe allegiance to the central state authority. Afghan military leadership has not evolved from the rungs of professional soldiers. It accommodates political appointees. Further, Afghans are being trained by various armies thus injecting different cultures, tactics and drills. The price is paid in the area of cohesion. Americans will have to ensure that a professional officer cadre is raised in the years ahead and the armed forces emerge as a homogenous entity.
Investors shouldn’t read too much into repo rate cut
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The last time the Reserve Bank of India (RBI) surprised the markets was when it announced a 75 bps cut in cash reserve ration (CRR) days before its mid-quarter review of monetary policy on March 15. It did so again in its annual monetary policy meeting on April 17, with a 50 bps repo rate cut when the markets were either expecting no rate cut or a 25 bps rate cut at best.
RBI rate cut — too little, too late?
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The RBI Governor cut the repo rate on April 17 quite reluctantly, even hinting there wouldn’t be another cut soon. Perhaps, he was under pressure from elsewhere, compelling him to look beyond inflation which had been his sole criterion in raising the repo rate.
India hiding from its own ‘crap’
By C. Uday Bhaskar
(The views expressed in this column are the author’s own and do not represent those of Reuters)
India, to put it euphemistically, is awash in its own ‘crap’ — a word derived from old Dutch to mean excrement. While accurate to an alarming degree, coming soon after the euphoria over the Agni missile tests, the discomfiture is evident.
India Market Weekahead – Volatile market within a narrow range
(The views expressed in this column are the author’s own and do not represent those of Reuters)
A sharper-than-expected cut of 50 basis points in the repo rate boosted the benchmark indices early during the week. However, as expected, the Nifty could not gain higher than 5350 as apprehensions about the limited scope of further rate cuts suppressed sentiment.
The hunt for Hafiz Saeed
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The $10 million bounty placed on Hafiz Saeed by the Americans may have been barely noticed in most capital cities but it definitely had an impact in New Delhi and caused a furore in Islamabad. India and Pakistan are the two countries most concerned with Saeed’s health and activities, although for different reasons.
Tax breaks only if insurance cover is 10 times annual premium
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Tax exemption under Section 80C is one of the major drivers of insurance sales. In fact, it has become a trend to launch a new variant of single-premium plans in February-March to cater to those who just want to make some investment to avail tax benefits.
Expectations from the RBI policy review
(The views expressed in this column are the author’s own and do not represent those of Reuters)
With more than 70 pct of the banking market in the grip of public sector banks (PSBs), who have a combination of constraints to lend freely, the Reserve Bank of India’s policy review amounts to almost a strategic push for these PSBs. Thus, the eagerness with which the policy review is awaited.
India Markets Weekahead: RBI monetary policy, quarterly earnings in focus
(The views expressed in this column are the author’s own and do not represent those of Reuters)
Nifty moved in the narrow range of 5,200-5,300 for the entire week and closed near the lower end, down 2 percent. Decline in industrial production (IIP), weak global markets along with tsunami fears in the Asian region dampened the investor sentiment.
Off the balance in external payments
(The views expressed in this column are the author’s own and do not represent those of Reuters)
It always takes time for the government to wake up to any emerging problem; and when it does, the problem is already magnified. That is what’s going to happen to the balance of payments.
