Manipur News

Following is the text of the Prime Minister, Dr. Manmohan Singh’s statement in the Lok Sabha, on the current economic situation in the country:
“The movement of the exchange rate of the Indian Rupee recently has been a matter of concern.
The Rupee has depreciated sharply against the dollar since the last week of May. There are concerns, and justifiably so, of the impact this would have on our economy.
What triggered the sharp and sudden depreciation was the markets’ reaction to certain unexpected external developments. On May 22, 2013, the US Federal Reserve Bank indicated that it would soon ‘taper’ its quantitative easing as the US economy was recovering. This led to a reversal of capital flows to emerging economies which are now sharply pulling down not just the Rupee, but also the Brazilian Real, the Turkish Lira, the Indonesian Rupiah, the South African Rand and many other currencies.
While global factors such as tensions over Syria and the prospect of U.S. Federal Reserve tapering its policy of quantitative easing have caused general weaknesses in emerging market currencies, the rupee has been especially hit because of our large current account deficit and some other domestic factors. We intend to act to reduce the current account deficit and bring about an improvement in the functioning of our economy.
In 2010-11 and the years prior to it, our current account deficit was more modest and financing it was not difficult, even in the crisis year of 2008-09. Since then, there has been a deterioration, mainly on account of huge imports of gold, higher costs of crude oil imports and recently, of coal. On the export side, weak demand in our major markets has kept our exports from growing. Exports have been further hit by a collapse in iron ore exports. Taken together, these factors have made our current account deficit unsustainably large.
Clearly we need to reduce our appetite for gold, economise in the use of petroleum products and take steps to increase our exports.
We have taken measures to reduce the current account deficit. The Finance Minister has indicated that it will be below $ 70 billion this year, and we will take all possible steps to ensure that outcome. These are already showing results with a declining trade deficit in both June and July. The Government is confident that we will be able to lower our current account deficit to $70 billion. Our medium term objective is to reduce the current account deficit to 2.5% of our GDP. Our short term objective is to finance the current account deficit in an orderly fashion. We will make every effort to maintain a macro economic framework friendly to foreign capital inflows to enable orderly financing of the current account deficit.
Coming back to the effects of the Rupee depreciation, we must realise that part of this depreciation was merely a needed adjustment. Inflation in India has been much higher than in the advanced countries. Therefore, it is natural that there has to be a correction in the exchange rate to account for this difference. To some extent, depreciation can be good for the economy as this will help to increase our export competitiveness and discourage imports.

There are many sectors which are regaining competitiveness in export markets as a result of the fall in the exchange rate. Over the next few months, I expect the effects of this to be felt more strongly, both in exports and in the financial position of exporting sectors. This in itself would correct the current account deficit to some extent.
However, foreign exchange markets have a notorious history of overshooting. Unfortunately this is what is happening not only in relation to the Rupee but also other currencies.
The RBI and Government have taken a number of steps to stabilize the rupee. Some measures have given rise to doubts in some quarters that capital controls are on the horizon. I would like to assure the House and the world at large, that the Government is not contemplating any such measures. The last two decades have seen India grow as an open economy and we have benefitted from it. There is no question of reversing these policies just because there is some turbulence in capital and currency markets. The sudden decline in the exchange rate is certainly a shock, but we will address this through other measures, not through capital controls or by reversing the process of reforms. The Finance Minister has clarified this matter at length, and I take this opportunity to reaffirm our position.
Ultimately, the value of the rupee is determined by the fundamentals of our economy. While we have taken a number of actions to strengthen those fundamentals, we intend to do more.
Growth has slowed down in recent quarters. I expect growth in the first quarter of 2013-14 to be relatively flat, but as the effects of the good monsoon kick in, I expect it to pick up. There are many reasons for this optimism. The decisions of the Cabinet Committee on Investment in reviving stalled projects will start bearing fruit in the second half of the year. The full effects of the growth friendly measures that have been taken over the last six months, such as liberalizing norms for Foreign Direct Investment, resolution of some tax issues of concern to industry and fuel subsidy reform will come into play over the year resulting in higher growth particularly in manufacturing. Exports are also starting to look up as the growth performance of the rest of the world is showing signs of improvement. So I believe growth will pick up in the second half of the fiscal year barring extreme unforeseen eventualities.
There are questions about the size of the fiscal deficit. The government will do whatever is necessary to contain the fiscal deficit to 4.8% of GDP this year. The most growth-friendly way to contain the deficit is to spend carefully, especially on subsidies that do not reach the poor, and we will take effective steps to that end.
Inflation measured by the Wholesale Price Index has been coming down, even though inflation measured by the Consumer Price Index is still too high. The depreciation of the rupee and rise in dollar prices of petroleum products will no doubt lead to some further upward pressure on prices. The Reserve Bank will therefore continue to focus on bringing down inflation. The favourable monsoon and the anticipated good harvest will help bring down food prices and ease the task of controlling inflation.
All in all, the macro-stabilization process which should support the value of the rupee is under way. I expect that as the fruits of our efforts materialize, currency markets will recover.
Even while we go about doing what is necessary, it is important to recognize that the fundamentals of the Indian economy continue to be strong. India’s overall public-debt to GDP ratio has been on a declining trend from 73.2% of GDP in 2006-07 to 66% in 2012-13. Similarly, India’s external debt is only 21.2% of our GDP and while short-term debt has risen, it stands at no more than 5.2% of our GDP. Our foreign exchange reserves stand at US$278bn, and are more than sufficient to meet India’s external financing requirements. Many foreign analysts worry about banking problems that may arise in the wake of the currency crisis. The Indian banking sector has seen some rise in bad loans. The question that needs to be asked is whether there is a liquidity problem or a solvency problem for the borrowers. My belief is that there is a liquidity problem. Many of the projects are not unviable but only delayed, in contrast to the overbuilding that has characterized the banking sector problems in many other countries. As these projects come on stream, they will generate revenue and repay loans. Our banks are fortunately well capitalized much above the Basel norms and they have the capacity to provide for any non-performing assets until those assets are turned around.
The easy reforms of the past have been done. We have the more difficult reforms to do such as reduction of subsidies, insurance and pension sector reforms, eliminating bureaucratic red tape and implementing Goods and Services Tax. These are not low hanging fruit and they need active political consensus.
It is here that I urge Honourable Members across the political spectrum to reflect on the need of the hour. Many laws that are necessary are held up for lack of political consensus. Reforms such as the Goods and Services Tax, which everyone agrees is essential to restore growth and boost revenues, require States to come to an agreement. We need to forge consensus on such vital issues. I urge political parties to work towards this end and to join in the government’s efforts to put the economy back on the path of stable, sustainable growth.
There may be short term shocks to our economy and we need to face them. That is the reality of operating in a globalised economy, whose benefits we have reaped over the last 15 to 20 years. We will need to ensure that the fundamentals of the economy remain strong so that India continues to grow at a healthy rate for many years to come. That we will ensure. We are no doubt faced with important challenges, but we have the capacity to address them. It is at times like these that the nation shows what it is truly capable of.”

Read more / Original news source: http://manipur-mail.com/pms-statement-on-the-current-economic-situation/

AIZAWL, August 29 NNN: Invoking the Gandhian way of ‘Long March’ popularly called ‘Dandi March’ where Gandhiji with his 78 followers marched to Dandi to break the ‘Salt law’ during Indian Freedom struggle, Zoram Nationalist Party (ZNP) here in Mizoram organized a ‘Long March’ to ‘save’ Mizoram.
The purpose this time is not to break the British salt law, instead it is a reason to save Mizoram from its bondage, to heal the wounds that cripple the state, to free the state from curruption that consumed public money, to bring about change in the govt administration for the welfare and development et al.
The Long March under the banner “Save Mizoram” has marched 94 km after the marchers reached Thenzawl on the 4th day today.
Earlier on August 26, 2013, ZNP chief Lalduhawma had flagged off the Long March at Vanapa Hall, Aizawl and said the purpose of this march is to save Mizoram. The Long March is expected to last for 9 days encompassing around 175 km when they reach Lunglei.
Today, the ZNP team was received with a warm welcome. Various leaders including ZNP supremo Lalduhawma have spoken whereever they halt.
Addressing the people, ZNP Vice President K. Liantlinga said Mizoram has several illnesses, and ‘we are encircled by a number of miseries’. “Thus, Mizoram needs to be saved. It has to be saved from poverty, corruption, malpractices and injustice. People have to be delivered from these bondages and our land should be saved from recession”, he said. Let the kingdom of God come in Mizoram politic for her deliverance”, he added.
The Chief Minister according to K. Liantlinga is constantly talking about Mizoram as a served state and that the people are sluggish. “But he is wrong, we are not a sluggard, instead we are not getting equivalent shares and profits”, he said.

Read more / Original news source: http://manipur-mail.com/save-mizoram-long-march/

AIZAWL, August 29 NNN: Some schools in Mizoram are still continuing with corporal punishment.
Mizoram State Advisory Council chairman who is also state Education minister Lalsawta has asked schools in Mizoram to do away with corporal punishment as some schools are still practicing it.
The State Advisory Council under the leadership of its chairman, Mizoram Education Minister Lalsawta held meeting today at his office.
Expressing his grave concern that there are still some schools which continue with corporal punishment, the Education Minister said the same must be completely done away with.
Meanwhile, Lalsawta explained in the meeting that the State Advisory Council is constituted to give suggestions to the government regarding the implementation of Right to Education Act – 2009, which envisages free and compulsory education to children in the age group 6-14 across the country.
The meeting reviewed over the various initiatives that have been taken so far and those of the ongoing ones in the implementation of RTE Act-2009 in the state.
The Education Minister explained that the RTE Act with all its provisions and restrictions cover all the government, deficit and private schools.
Further, regarding admission of children to schools, screening test is strictly prohibited and also donation in schools without prior notification is restricted by the Law, the Education Minister added.
The State Advisory Council meeting today resolved to carry out awareness programme in a larger scale in order to educate the general public with the RTE Act-2009.

Read more / Original news source: http://manipur-mail.com/corporal-punishment-in-mizoram-school/

Mail News Service
Imphal, Aug 29 : The Scheduled Tribe Demand Committee of Manipur (STDCM) led by its chairperson Prof. (Dr.) Yumnam Mohendra had got an assurance from Prime Minister of India Dr. Man Mohan Singh for the grant of ST (Scheduled Tribe) status to the Meiteis of Manipur.
The Union Minister of Tribal Affairs Kishore Chandra Deo told STDCM that the central government was ever ready to grant ST status to the Meitei, but the Meitei did not receive it from the central government.
In the same tune, the Union Cabinet Minister of Transport and Highways Oscar Fernandes told the delegation led by the chairperson of the committee that the hill and the valley people of Manipur are two brothers.
The implication is that while the hill people are already with ST status, there is no reason why the valley people i,e. the Meitei people should not be given ST status.
The advice given by the Prime Minister and other Union Cabinet Ministers of India is that the STDCM should request the Government of Manipur for the recommendation of ST status to the Meitei to Union Government of India. In this connection, it is stated that the STDCM has been requesting the Chief Minister of Manipur for more than once to grant an interview to the STDCM to enable the committee to place its views before the Chief Minister. Unfortunately, so far, no interview has been granted to the STDCM by the Chief Minister.
STDCM requested the Chief Minister of Manipur to be so kind enough as to grant an interview to the STDCM, keeping in view of the interest of the Meitei, according to an open letter from Nongmaithem Isworchandra,Vice-President, STDCM.

Read more / Original news source: http://manipur-mail.com/central-leaders-favour-meitei-becoming-schedule-tribe/