India Insight

India’s love for gold and the government’s efforts to curb it – a timeline

Google Trends shows that the term “current account deficit” is among top searches from India in 2013. Add “gold” as a comparative keyword and the searches for the commodity Indians love are far higher.

Indians buy gold for everything – investment, gifts, wedding ceremonies and auspicious days. But of late, this has become a pain for policymakers.

As the Indian economy struggles, policymakers say that high gold imports and the rising current account deficit are big concerns. India’s number one import, crude oil, and gold, it’s number two, hurt the current account deficit. While crude oil is necessary, gold is not, especially if we believe our finance minister.

“I’m hoping that the people of India will heed my appeal and will not demand so much gold,” Finance Minister P. Chidambaram said in March, soon after he claimed during his budget speech that India’s ‘passion for gold’ is responsible for the high current account deficit.

In recent months, falling gold prices prompted heavy gold buying in the world’s biggest gold consumer. The result: India imported around 162 tonnes of gold in May, more than the 142.5 tonnes imported in April, and high enough to worry Indian policymakers.

Watch your mouth: indignation at every turn

When you’re in a khap, you can say whatever you want, but it has to be pretty outrageous to annoy people beyond the city limits. One idea that has cleared the bar? Lowering the minimum marriage age to prevent girls from being raped.

“Boys and girls should be married by the time they turn 16 years old, so that they do not stray …this will decrease the incidents of rape.”

That’s the kind of thing that you expect a conservative patriarch to mutter through his beard while drinking tea with a friend. Comment done, world moves on.

from Breakingviews:

India begins the post-Mukherjee clear-up

By Jeff Glekin

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Pranab Mukherjee’s reign as Indian finance minister was stained by economic meddling and political favouritism. Now he is gone, and some of his excesses are being reversed. An enemy has been pardoned and a friend has not received a plum job. This could be the beginning of a better era.

Imagine if Tim Geithner had been accused of putting pressure on the securities regulator to protect some political friends. The U.S. Treasury Secretary would be in serious hot water. But when the former number two at the Securities and Exchange Board of India (SEBI) accused Mukherjee of something similar – putting pressure on the SEBI chairman to “manage” some high-profile corporate cases – there was little attention.

The dog days of India’s bizarre summer of politics

Perhaps the government’s decision to push back the opening of the upcoming monsoon session of parliament was not the best idea. For as the dog days of the sub-continent’s sweltering summer drag on, the parliament-less politicians sweat from the sublime to the ridiculous in the baking heat.

From the haphazard ensemble of senior ministers that flocked to New Delhi’s airport to greet yoga guru turned social activist Swami Ramdev with more fanfare than is reserved for visiting heads of state, to the current conspiracy swirling New Delhi surrounding espionage chewing gum found in the finance minister’s private chambers, it has been a bizarre summer for politics fuelled by the hungry media in the world’s largest democracy.

Kapil Sibal, as Human Resource and Development minister, could have spent his summer break drawing up plans to overhaul an education sector that looks dangerously inadequate to deal with the demographic dividend of millions of young Indians that New Delhi likes to trumpet. Instead, he spent his days holed up in five-star hotels begging Ramdev not to stop eating, and playing it coy in press conferences after quietly ignoring veteran activist Anna Hazare’s demands for a stronger anti-graft bill.

Has India squandered its English advantage?

When the British were finally expelled from India in 1947, driven out of a country scarred by decades of imperialist rule, they left at least one parting gift: a linguistic legacy that has formed a crucial ingredient in the country’s economic miracle.

English proficiency is hailed as an invaluable foundation in India’s rise to the top of the world’s information technology and knowledge outsourcing industries, fuelling the country’s rapid growth with billions of dollars of business every year and streams of overseas investments into global IT centres such as Bangalore.

Nine-year-old Chinese pupil, Sun Minyi, listens to his teacher during a special English class at Chongming county, north of Shanghai July 12, 2002. REUTERS/Claro Cortes IV

But, as Asian rival China surpasses India’s English proficiency rates for the first time, that advantage over other developing economies looks to have been squandered.

Congress’ 2007 leadership whispers underscore 2011 election dangers

Rumblings within the ruling Congress party that suggested the “jettison” of Prime Minister Manmohan Singh after the party’s electoral failures in state elections in 2007, cited in a secret diplomatic cable published on Monday, are a timely reminder of the dangerous implications of failure for Congress in elections this month.

India's ruling Congress party president Sonia Gandhi watched by Prime Minister Manmohan Singh (L) fills nomination papers seeking to retain her post as the party chief at her residence in New Delhi September 2, 2010. REUTERS/B Mathur

The electorates of Assam, Kerala, Pondicherry, Tamil Nadu and West Bengal will go the polls this month to elect new state legislatures, in the first tests of public confidence in India’s ruling party that has been implicated in a string of multi-billion-dollar corruption scandals over the past nine months.

Singh, a 78-year-old technocrat and economic reformist, had his leadership questioned by senior aides to Congress President Sonia Gandhi, who mooted a more politically sellable replacement following electoral defeats in Punjab and Uttarakhand, detailed a U.S. state department cable accessed by WikiLeaks and published by The Hindu newspaper.

The bitter truth behind BJP’s deafening budget silence

To some, the parliamentary walkout by India’s opposition prior to the vote on the country’s annual budget motion marked the failure of India’s ruling Congress party to engage with its primary adversary, the Bharatiya Janata Party (BJP), over its claims that the Prime Minister had lied to parliament to protect his own reputation.

To others, the sight of BJP leader Sushma Swaraj leading her MPs out of the chamber as Finance Minister Pranab Mukherjee prepared to deliver the most important parliamentary bill of the year encapsulated the sorry state of India’s increasingly bitter partisan politics that show no signs of repair since trumpeting corruption became the opposition’s raison d’etre.
Lawmakers and leaders of India's main opposition alliance led by the Hindu-nationalist Bharatiya Janata Party (BJP) including Sushma Swaraj (front, L) and L.K. Advani (front, R) attend a protest against rising prices wearing aprons with protest slogans inside the premises of the Parliament House in New Delhi REUTERS/Stringer(INDIA)
Swaraj would later tell The Hindu that her walkout was to avoid disrupting the passage of the bill, but the damning point rang out loud and clear: the opposition had decided the corruption drumbeat was more important than the budget.

Mukherjee had earlier pleaded with senior BJP leaders to allow the budget to be debated prior to any discussion on a parliamentary privilege motion submitted against Prime Minister Manmohan Singh by Swaraj, promising a two-and-a-half hour debate on the issue after the budget had passed.

Out of the DMK frying pan and into Mamata’s fire for Congress

Fresh from negotiating the continued support of one key coalition ally, Manmohan Singh, Sonia Gandhi and the Congress party heavyweights must now tackle the demands of the more politically canny and locally powerful Mamata Banerjee.

India's Railways Minister Mamata Banerjee speaks before giving the final touches to the annual budget for the railways in New Delhi February 24, 2011. REUTERS/B Mathur

As the bleary eyes of Congress negotiators turned over the morning papers on Wednesday after almost two days of political horse-trading with the Dravida Munnetra Kazhagam (DMK), the relief of front page headlines declaring the Tamil Nadu party’s climbdown will have been cut short by the ominous presence of Banerjee and her own seat-sharing demands in the political minefield of West Bengal.

Banerjee, Railways Minister and leader of the opposition in West Bengal, is commonly referred to as “Didi” – Hindi for elder sister – and can often appear to be spearheading a one-woman party.

Congress looks to seize the initiative as budget looms

It has been a winter to forget for India’s ruling Congress party, as a series of corruption scandals have muted its ability to control parliament, dented its popularity ratings and dappled the formerly dazzling-white kurta of Prime Minister Manmohan Singh.

India's Prime Minister Manmohan Singh speaks during the 11th Delhi Sustainable Development Summit 2011 organised by The Energy and Resources Institute (TERI) in New Delhi February 3, 2011.  REUTERS/B Mathur

But rumours of a deal with the emboldened opposition to launch a parliamentary probe into corruption allegations that would end months of paralysis, and a surprise attack on the Bharatiya Janata Party (BJP) leadership by one of their former ministers could signal a ceasefire in the war of words and a light at the end of the tunnel for Congress.

TV channels, citing party sources, reported a compromise deal between the warring parties on Tuesday, as Singh announced he would be conducting a broadcasted press conference with the editors of India’s leading news channels on Wednesday, in a move to clear the air over graft allegations and restore confidence in his leadership days before parliament opens on Feb. 21.

Congress’s corruption calamities continue as the Thomas saga unravels

In a season of corruption charges that have shackled India’s ruling Congress party’s political ambitions, the ongoing saga of the country’s tainted anti-corruption chief is perhaps the hardest to believe.

The curious case of P.J. Thomas, the accused fraudster appointed to head India’s corruption investigation agency by the Prime Minister last October, took another twist on Monday to further undermine Manmohan Singh’s party’s ability to tackle graft that threatens to become the overriding legacy of its current term.

India's Home Minister Palaniappan Chidambaram speaks during a news conference after a South Asian Association for Regional Cooperation (SAARC) interior ministers meeting in Islamabad June 26, 2010 REUTERS/Faisal Mahmood

In a fillip for the already emboldened opposition, Home Minister Palaniappan Chidambaram said on Monday that the three-man selection committee headed by the Prime Minister that appointed Thomas to the role of Chief Vigilance Commissioner was aware of the pending fraud case against him – but made the appointment regardless.

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