Nation
India, Pakistan border tension heats up after fresh firing
India on Tuesday alleged that Pakistan troops resorted to unprovoked heavy firing in at least three places on the de facto border in Jammu and Kashmir, stepping up the tension between the tense neighbours.
 
No injuries were reported from the Pakistan mortar shelling at Indian border posts in Jhangar, Kalsian and Makri areas of the Nowshera sector of Rajouri district along the Line of Control (LoC), a ceasefire line that divides Jammu and Kashmir between India and Pakistan.
 
Many shells landed near civilian areas in Nowshera, a police officer said.
 
The officer said the Indian Army retaliated and fired at Pakistani posts. Any possible damage on the other side of the ceasefire line was not known immediately.
 
The Pakistan Army made similar allegations, saying Indian troops "resorted to unprovoked firing" at 4 a.m.
 
"Pakistani troops befittingly responded to the unprovoked Indian firing... in Bhimber sector," an Inter-Services Public Relations (ISPR) statement said.
 
The heavy exchange of fire, which continued for several hours, was the latest in a series of violations of border truce signed in 2003.
 
Border tension between the two countries flared after 19 Indian soldiers were killed in the September 18 terror attack at an Indian military base in Uri town in Kashmir's Baramulla district.
 
India said the four attackers, who sneaked into the Uri camp, infiltraed from Pakistan. Islamabad denied the allegation.
 
Days later, the Indian Army said it had avenged the Uri attack by conducting "surgical strikes" in Pakistan-administered Kashmir where seven terror launch pads were destroyed and an unknown number of militants and their sympathisers were killed on September 29.
 
Since then, militaries of the two countries have been regularly firing at each other daily across the LoC and the International Boundary.
 
On Monday, three civilians were injured in a similar exchange of fire in Poonch district.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Monetary Policy Committee debuts with a 25bps cut in repo rate
In the first monetary policy review by the newly set up Monetary Policy Committee (MPC) as well as by new Governor Urjit Patel, the Reserve Bank of India (RBI), on Tuesday cut repo rate (the short-term lending rate charged by the central bank on borrowings by commercial banks) by 25 basis points (bps) to 6.25% with immediate effect. 
 
"The decision of the MPC is consistent with an accommodative stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5% by fourth quarter of 2016-17 and the medium -term target of 4% within a band of plus or minus 2%, while supporting growth," the RBI said in a release. 
 
All six members of the panel, chaired by RBI Governor Urjit Patel, voted in favour of the monetary policy decisions -- the minutes of which will be released on 18 October 2016. The decision to cut repo rate is expected to bring much expected relief to commercial banks and corporates.
 
With repo rate reduced to 6.25%, the reverse repo rate under the liquidity adjustment facility (LAF) will now be 5.75%. Subsequently, the marginal standing facility (MSF) rate and the bank rate are adjusted to 6.75%.
 
Commenting on the RBI's fourth monetary policy review, Arundhati Bhattacharya, Chairman of State Bank of India (SBI), the country's largest lender, said, "The Committee decision to cut Repo rate by 25 bps was on the expected lines. With benign inflation trajectory going forward, RBI's policy stance is expected to remain accommodative. Banks will continue to transmit rates based on evolving liquidity scenario."
 
Talking about outlook, the central bank statement says, "The Committee expects that the strong improvement in sowing, along with supply management measures, will improve the food inflation outlook. It notes that the sharp drop in inflation reflects a downward shift in the momentum of food inflation – which holds the key to future inflation outcomes – rather than merely the statistical effects of a favourable base effect. The Government has announced several measures to cool food inflation pressures, especially with regard to pulses. These measures should help in moderating the momentum of food inflation in the months ahead. This has opened up space for policy action, as indicated in the third bi-monthly monetary policy statement. The easy liquidity conditions engendered by the Reserve Bank’s operations should also enable the smooth transmission of the policy action through various market segments. Furthermore, banks should find added impetus for better transmission by the recent downward adjustment in small savings rates. The Committee took note of potential cost push pressures that may emerge, including the 7th pay commission award on house rent allowances, and the increase in minimum wages with possible spill overs through minimum support prices. The fuller play of these factors will need vigilance to prevent a generalised cost spiral from taking root."
 
"On balance, the Committee envisages a trajectory taking headline CPI inflation towards a central tendency of 5% by March 2017, with risks tilted to the upside albeit lower than in the second and third bi-monthly monetary policy statements of June and August respectively," it added. 
 
 
The Reserve Bank expects the momentum of growth to quicken with a normal monsoon raising agricultural growth and rural demand, as well as by the stimulus to the urban consumption spending from the pay commission’s award. It says, "The accommodative stance of monetary policy and comfortable liquidity conditions should support a revival of credit to the productive sectors. The continuing sluggishness in world trade and the smaller terms of trade gains than in the past point, however, are leading to further slackening of external demand going forward. Accordingly, the projection of growth of real gross value added (GVA) for 2016-17 is retained at 7.6%, with risks evenly balanced around it." 
 
 
VS Parthasarathy, Chief Financial Officer (CFO) of Mahindra Group, says, "This policy was a window into the thoughts of the Governor and the MPC. It is not only about the here and now, it is also about what the MPC thinks about risks and importantly it reveals the Governor's thoughts on structural matters. The focus will be on non-performing assetst (NPAs), financial market reforms, and financial inclusion for MSME. The policy has however stuck to monetary aspects and we have to wait to see the Governor's actions elsewhere. We trust he would continue to be vigilant, watching over the economic landscape with flexibility to act as the situation changes."
 
According to Anuj Puri, Chairman & Country Head of JLL India, the first question that arises after this rate cut is, of course, how it will help improve buyer sentiment in the housing sector. "The reason why housing sales have been sluggish is because of trust deficit between consumers and developers. Unless RERA and other pro-consumer policies come into play, buyers will continue to be wary. Therefore, we can expect only a marginal improvement in sentiment on the back of this rate cut. At this point, there is also no ready answer to the question of to what extent banks will actually pass on the benefit of the rate cut to borrowers," he added.
 
Here are the latest policy rates following MPC review…
 
Repo Rate.......................6.25%
Reverse Repo Rate........5.75%
CRR................................4%
Bank Rate.......................6.75%

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COMMENTS

narayanbhai patel

5 months ago

This decision was not taken by RBI Governer Mr.Patel the inflation was temporarily down so they have to wait up to next inflation data come out. It was a purely decided by political persons. Because pensioner persons are more effected by this decision. There was nobody in committee like the middle-class person they are all rich persons who decided this rates.

Tamil Nadu, Kerala have high female literacy - and most women entrepreneurs
The five states with the largest proportion of literate women -- Tamil Nadu, Kerala, Andhra Pradesh, West Bengal and Maharashtra -- account for 53 per cent (4.3 million) of all business establishments owned by women nationwide, although no more than 33 per cent of India's women live in these states, according to an IndiaSpend analysis of data released by the Economic Census 2012.
 
With 73.4 per cent of its women literate, Tamil Nadu -- third among larger states after Kerala and Maharashtra -- has India's largest number of establishments run by women, one million (13.5 per cent of all businesses), according to the Economic Census 2012.
 
Tamil Nadu is followed by Kerala -- with 90 per cent female literacy, India's highest rate -- where 11 per cent of all businesses are run by women.
 
The two leaders are followed by Andhra Pradesh (59.1 per cent female literacy rate and 10.5 per cent businesses owned by women), Bengal (70.5 and 10.3 per cent) and Maharashtra (75.9 and 8.2 per cent).
 
While the female literacy rate was 65.5 per cent nationwide, the female work-force participation was 25.5 per cent, according to Census 2011.
 
Female participation in India's workforce has declined from 34 per cent in 1999 to 27 per cent in 2014, IndiaSpend reported in August 2016, the worst rate among BRICS nations and lower than Bangladesh (57.4 per cent), Nepal (79.9 per cent) and Sri Lanka (35.1 per cent).
 
The five states with the largest number of women entrepreneurs also have higher-than-national average literacy among women.
 
Lack of financial education can also limit women from gaining access to and benefitting from financial services, according to a 2014 World Bank report.
 
The top five states have the largest number of women who have completed 10 years or more of education. Maharashtra, which has the fifth-largest number of businesswomen, also has 77.4 per cent women who have completed 10 years or more of education.
 
Bihar, for example, has 153,610 establishments run by women (accounting for 1.9 per cent of businesswomen and ranked 14th among states) and only 56 per cent women have completed 10 years of education.
 
Women own/run 8.05 million of India's 58.5 million establishments (13.7 per cent), as reported in May 2016, providing employment to 13.4 million people. About 89 per cent of these were employed in establishments hiring less than 10 workers.
 
India was ranked 70th of 77 countries in the Female Entrepreneurship Index 2015 released by London-based Global Entrepreneurship Institute.
 
Building a small business, step by small step -- A woman's story: Archana Angre (43), who runs a tiffin service and a small restaurant in Chembur, an eastern suburb of Mumbai, studied till class nine.
 
Angre started the business in 1997 when she worked as a cook, despite opposition from her in-laws who warned her that business was risky.
 
The initial investment of Rs 2,000 was done by Angre and her husband Ashok Arjun Angre. She employed three family members (daughter, son and husband) in the beginning.
 
Within a year of starting business, Angre received help from patrons who helped her with capital and equipment (gas cylinders and stove). Within two years, her business increased from 10 tiffins to 100 tiffins.
 
Some of Angre's clients helped her get a loan of Rs 50,000 from UCO Bank. The business expanded from making tiffins for office-goers to preparing meals for parties and company events.
 
She received a loan of Rs 2,95,000 under the Pradhan Mantri Rozgar Yojana (Prime Minister's Employment Programme) in 2010, which she used to buy utensils and other items required for the business.
 
Nineteen years later, Angre employs six people (three from her family and three hired workers).
 
Angre is now planning to open a fully functional restaurant. She has also been able to fund her daughter's studies in hotel management.
 
"There is a need for change in attitude from being safe with a job to the ability to take risks to start a business," Angre said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

 

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