Inspite of slight tense situation created by our strategic partner Britain, India is able to convince United Nations Security Council that the situation in Kashmir is normal and there is no need to assume any panic.
(Source courtesy : Wikimedia Commons)
Nearly after 54 years, UNSC has Kashmir as a topic of discussion. This meeting was called up by permanent member China and its ally Pakistan claiming havoc in Kashmir after revoking article 370 in Jammu and Kashmir. Pakistan has earlier wrote a formal letter to UNSC for a meeting on Kashmir. UNSC declined an open formal meeting but agreed for a meeting close doors where all the details are not to be made public.
With China backing its move to bring in Kashmir as an international dispute, Pakistan made a final attempt to get US buy-in on Friday. However US, Britain, France and Russia has ruled in favour of India saying Kashmir remains a bilateral issue between India and Pakistan and this cannot be ‘internationalized’.
An anxious moment raised when Britain agreed China’s proposal that an informal outcome to be notified through UNSC president. This could mean that a statement be issued on Kashmir’s situation by UNSC. However eventually 4 out of 5 permanent UN members denied any intervention on Kashmir. India has been appraising the circumstances and on going normal situation to 5 permanent and 10 non permanent members from the day article 370 was revoked
From a layman perspective with regard to Indian Economy:
- High inflation – More demand than supply, so prices go up
- A low GDP – Standard of living will be low
- A weak currency – Imports will be costly
- A rising current account deficit (CAD) – amount we still owe to other countries. Majority is because we import gold and crude oil
A country needs investments from its in house companies and foreign investors. Investments not only bring capital, technology improvements and ideas to markets; they also bring jobs. Because of these factors companies earn profits. Government gets opportunities to improve the countries infrastructure (well, even after the unofficial “personal expenses”).
Technically, the increase in investments, especially in capital goods (office buildings, office infrastructure) enables more output of consumer goods to be produced and eventually standards of living can increase.
It ‘s a hope when people like Indira Nooyi says “PepsiCo is going to make an investment of Rs 33,000 crore in India between now and 2020”
ICICI Bank Managing Director, Chandra Kochhar says “Finally what we need to focus on is growth in the country,” she said. “It’s the investment story that has fallen off currently. What we really need is a much more conducive environment.”
B. Controlling Inflation
With a trade-off between the investments and the purchasing power of commodities: new RBI governor, Raghuram Raja hiked the interest rates so as to y bring down inflation levels as it limits the money supply of rupee available in the market.
C. Controlling CAD
Increase in GDP helps CAD to decrease. We can predict crude oil price, which gives edge on controlling CAD.
With good investments being major factor for improving economy, RBI reforms will help the Indian economy.
This is on the US ‘shutdown’ and the impact on other countries.
- America’s biggest export is war!!!
- US regularly interferes with domestic affairs of other countries.
- US partly responsible for the inflation in India
- For now the crisis is averted.
- If crisis arises in US, rest of the countries go in to crisis. Why?
- Is there any way to downsize Uncle Sam?
- America aggressively interferes to put it mildly in the internal affairs of other countries as it has done in Vietnam, Iraq Afghanistan etc.America’s biggest export is War!!!
- When US economy sneezes the world catches dengue. This is very true as US regularly interferes with the domestic affairs of other countries even when it has no conscious intention of doing so.
- The slowing of the Indian economy and fall of Indian rupee against dollar – which resulted in increased inflation is partly due to US policy decisions regarding economic mess it has created for itself
- For now the crisis – Shutdown is averted by a deal between democrats and republicans in Washington. But how long? Any crisis, which arises in US, is crisis for rest of the world? Is there any way to downsize Uncle Sam?
Reference “US Creates problems to world like an overgrown teenager with Attitude – Downsize Uncle Sam” – by Jug Suraiya, Times of India, Page 18. 23rd Oct 2013