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Union Budget 2022 highlights

All eyes are on what kind of moves the FM brings in to provide succor to an economy long under the grasp of a pandemic. Yesterday’s economic Survey projected the Indian economy to grow at 9.2% in the current fiscal. For FY23, real GDP growth was forecast at 8-8.5%.

At UNSC, India abstains from the Ukraine vote, calls for immediate de-escalation in the region

India’s permanent representative to the United Nations (UN), TS Tirumurti articulated New Delhi’s most detailed position on the issue so far, building upon a ministry of external affairs (MEA) statement on Fri, at a meeting of the UN Security Council in New York on Mon.

Russian Deputy FM Vershinin briefed India on Ukraine.

Says, “We informed the Indian Side about our point of view about what is going on around Ukraine and on the tensions fanned by the Western nations, NATO and the United States”. In comments released by the Russian embassy, Russian Deputy FM Vershinin said, “We touched upon issues of insuring strategic stability in this area, the more so as Russia has repeatedly voiced its point of view publicly, and we once again communicated it to the Indian friends.” “Both sides held wide-ranging discussions on issues on the UNSC agenda and related developments. Both sides agreed to deepen cooperation on issues of mutual interest at multilateral platforms. The Russian delegation briefed India on its priorities during the 76^th session of the UN General Assembly,” said a statement by the MEA.

Mamata’s polling agent ‘wreaked vengeance’ on Hindus for her loss, CBI tells SC

West Bengal chief minister Mamata Banerjee’s polling agent “wreaked vengeance” on Hindus for her electoral loss in Nandigram in the 2021 assembly election, the Central Bureau of Investigation (CBI) has told the Supreme Court. West Bengal CM Mamata Banerjee lost to her former aide-turned-Bharatiya Janata Party candidate Suvendu Adhikari in the 2021 assembly polls in the state. In its affidavit opposing the pre-arrest bail plea of Sk Supian, the polling agent, in connection with the alleged murder of a BJP supporter after the results were declared, the agency said he hatched a criminal conspiracy “to teach a lesson to Hindus, who voted for BJP resulting in loss of the TMC (Trinamool Congress) candidate (Banerjee) in Nandigram assembly constituency”. It added Supian allegedly carried out violent attacks on local villagers, causing the death of one Debabrata Maity.

Two persons smuggling drugs from Pakistan held in J&K’s Kupwara, 500g heroin seized

According to an official statement, the duo tried to escape from a police checkpoint. Noticing the suspicious movement and deliberate intention to jump the Naka, the police team apprehended the duo and on personal search recovered 230 gms of Heroin-like substance from Ishtiyaq Ahmad Qureshi, resident of Taad, and 270 gms of the banned drug from Basharat Hussain Shah resident of Padna Taad Karnah.

Arunachal Teen Given Electric Shocks In Chinese Custody, Alleges Father

The Indian teenager who was abducted by the Chinese army from Arunachal Pradesh was reunited with his family, an official said on Tuesday. Indian Army reunited Miram Taron (17) with his parents at a function in Tuting in Upper Siang district on Mon evening, district Deputy Commissioner Shaswat Saurabh said. He was tied and blindfolded while in the custody of China’s People’s Liberation Army for more than a week, the father alleged. “He is still in shock. He was kicked in the back and given a mild electric shock initially. He was kept blindfolded most of the time and his hands were tied during captivity. They untied him only when it was time to eat or relieve himself,” Opang Taron told reporters at the function.

Be extremely careful in staying projects of national importance, SC tells HCs

High courts should be extremely “careful and circumspect” in staying the execution of projects of national importance, especially those funded by the foreign countries, the Supreme Court held on Mon while sounding a word of caution against judicial interference in commercial contracts. The top court underlined that in a mega project funded by a foreign country, there shall not be any interference in the tender process midway till the final decision is taken to award the contract. Delivering an order relating to the implementation of the Bullet Train project between Mumbai and Ahmedabad, the top court further suggested that courts may warn the petitioners about the recovery of damages from them on account of delay in execution of projects due to “frivolous litigation” initiated by such litigants.

Lavanya death case: Petition in SC seeks probe into suicide, stringent anti-conversion law

ANI – A Public Interest Litigation was filed in the Supreme Court seeking direction to investigate the root cause of the suicide of a young girl Lavanya and to issue direction to the Centre to enact a stringent Anti-Conversion Law immediately. The petitioner sought appropriate direction to National Investigation Agency/ Central Bureau of Investigation and/or National Human Right Commission/ National Commission for Protection of Child Rights to investigate the root cause of the death of 17-year-old Lavanya, who committed suicide and died on Jan 19, 2022, in Thanjavur Tamil Nadu. Petitioner also sought a declaration that fraudulent religious conversion and religious conversion by intimidation, threatening, deceivingly luring through gifts and monetary benefits offends Articles 14, 21, 25 of the Constitution.

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Myanmar’s deposed leader Suu Kyi to face a new trial for poll fraud

The Nobel laureate is facing a raft of charges – including violating the country’s official secrets laws – and if convicted of all of them could face sentences tallying more than 100 years in prison.

Cash-strapped Pakistan seeks loans of $5 billion from China, Russia, and Kazakhstan

The loan from China will be used to stabilize foreign exchange reserves and loans from Russia and Kazakhstan will be spent on the Main Line One (ML1) Railway Project

Taliban forms joint ministerial committee to address Durand line issues

ANI – Amid the Pakistan military’s move to build fencing along the Durand Line, the Taliban on Mon formed a joint ministerial committee to address the problems. The decision for the formation of the joint committee comprised of several ministries was made in a meeting chaired by the 2^nd Dy of Prime Minister, Abdul Salam Hanafi. The move comes after the visit of Pakistan’s National Security Advisor Moeed Yusuf visit to Kabul. A Pakistan delegation led by NSA Yusuf returned to Islamabad on Sun evening after holding talks with several officials of the Islamic Emirate in a 2-day visit. The Durand Line, the border between Afghanistan and Pakistan is named after a British colonel from the 1890s. Albeit Pakistan and the international community recognize the Durand Line, Afghanistan has always denied accepting it formally.

Pakistan Army Chief, EU envoy discuss Afghanistan situation

ANI -Pakistan Army Chief General Qamar Javed Bajwa called on EU Ambassador Androulla Kaminara and discussed the present situation in Afghanistan. Matters of mutual interest, regional security situation including the current Afghanistan situation, and bilateral cooperation with the European Union were discussed during the meeting, as noted by Express Tribune. The military’s media wing said that the visiting dignitary appreciated Pakistan’s role in the Afghan situation and its efforts for regional stability and pledged to play her role for further improvements in diplomatic cooperation with Pakistan at all levels.

‘Compromised and a sell-out’: FM Qureshi launches scathing attack on Gilani in Senate speech

Foreign Minister Shah Mahmood Qureshi on Tue launched a blistering attack on the opposition benches, aiming in particular at Leader of the Opposition in the Senate Yousuf Raza Gilani, calling him a “compromised leader” and a “sell-out”. PPP’s Gilani was among at least 8 opposition senators who had skipped last Fri’s Senate session, which allowed the PTI govt to narrowly manage to get the crucial State Bank of Pakistan (Amendment) Bill passed from the opposition-controlled house – a development that had raised many eyebrows. Info Min Fawad Chaudhry, in a satirical tone, had even thanked Gilani for indirectly supporting the govt.

Inflation soared to 12.96% in January, marking a two-year high: PBS

Consumer goods’ prices continued their upward trajectory in January and reached a two-year high as inflation soared to 12.96%, data released by the Pakistan Bureau of Statistics (PBS) on Tue. According to the PBS data, the year-on-year inflation during the last month — measured by the Consumer Price Index (CPI) — was the highest since Jan 2020 while the month-on-month inflation increased to 0.39% compared to Dec.

Sindh govt constitutionally responsible to empower local bodies rules SC

ANI – Pakistan Supreme Court on Tue said it was the constitutional responsibility of the Sindh govt to empower local govt bodies by ensuring devolution of powers to the local govt representatives. In a decision on a plea filed by the Muttahida Qaumi Movement in 2013 against the Sindh Local Government Act 2013, the SC of Pakistan told the Pakistan Peoples Party govt to transfer financial, administrative, and political powers to the local govt. The apex court further said that the provincial govt could not initiate a project if it fell under the purview of the local government.

Extended Troika Plus meeting to be held in Kabul by Feb end: Russian envoy Kabulov

ANI-Russian special representative for Afghanistan Zamir Kabulov on Tue said that the extended Troika Plus meeting will be held in Kabul this time by the end of Feb. As per TASS, Kaboluv added that the participating countries (Russia, the US, China, Pakistan) of the Troika Plus-extended on Afghanistan are now considering the date of the meeting in the Afghan capital Kabul. Meanwhile, the Taliban has not commented on the issue yet. In Nov 2021, Islamabad had hosted a meeting of extended Troika to discuss the situation in Afghanistan after the Taliban took control of the war-torn nation. Taliban, who are desperate to seek international recognition, and have time and again been reminded that respect for women and human rights, establishing inclusive govt, not allowing Afghanistan to become a haven of terrorism are the preconditions for the recognition set by the international community.

China aims tighten to its grip on Hong Kong through PLA

As Hong Kong has no military of its own, the local authorities may request China’s People’s Liberation Army (PLA) garrison for aid in preserving public order, bringing the city under Beijing’s tight control, reported Singapore Post. The PLA garrison in Hong Kong will be led by the former chief of internal security in the Xinjiang province Major Gen Peng Jingtang. Xinjiang is the region where China has incarcerated hundreds of thousands of Uyghurs and other Muslim minorities in political re-education centers. According to a govt press release, Peng met Hong Kong Chief Executive Carrie Lam, who told him that her govt would work with the garrison to “jointly safeguard the nation’s sovereignty, security, and development interests and help maintain the long-term prosperity and stability of Hong Kong”. Notably, Protesters and dissidents in Hong Kong are being labeled “terrorists”, according to critics and this appointment of Peng may imply a tougher stance on alleged terrorist activities in HK.

Japan passes resolution on human rights in China days before Beijing Winter Olympics

Japan’s parliament on Tue adopted a resolution on the “serious human rights situation” in China, and called Prime Minister Fumio Kishida’s govt to take steps to relieve the situation, as the Beijing Winter Olympics loom just days ahead. Japan has already announced it will not send a govt delegation to the Games, following a US-led diplomatic boycott over concerns about China’s human rights condition, although Tokyo avoided explicitly labeling its move as such. Since taking office in Oct, Kishida has said on multiple occasions that Japan would not mince words with China when necessary, and in Nov appointed former defense minister Gen Nakatani as his aide on human rights.

Union Budget 2022 highlights

All eyes are on what kind of moves the FM brings in to provide succor to an economy long under the grasp of a pandemic. Yesterday’s economic Survey projected the Indian economy to grow at 9.2% in the current fiscal. For FY23, real GDP growth was forecast at 8-8.5%.

Cryptocurrency has some financial stability issues, the govt will take a balanced view: Principal Economic Advisor -Al Salvador has adopted Bitcoin but there are still financial stability issues relating to cryptocurrency highlighted by the Reserve Bank of India, Principal Economic Advisor Sanjeev Sanyal said on Mon and noted that the govt will take a “balanced view”. The government had intended to bring a bill relating to cryptocurrency in the winter session of parliament but decided to hold more deliberations before coming up with legislation.

Economy

• Capex target expanded by 35.4%
• from Rs 5.54 lakh crore to Rs 7.50 lakh crore. FY23 effective CAPEX seen at Rs 10.7 lakh crore
• India’s growth is highest among all major economies; we are now in a strong position to withstand challenges
• The goal is complementing macro-growth with micro-all-inclusive welfare, digital economy and fintech, tech-enabled development, energy transition, and climate action

• ECLGS cover expanded by Rs 50,000 to Rs 5 lakh crore
• The top focus of the budget this year are: PM Gati Shakti, Inclusive Development, Productivity Enhancement, Sunrise Opportunities, Energy Transition, Climate Action, Financing of investments
• Productivity-linked incentive schemes in 14 sectors have received an excellent response; received investment intentions worth Rs 30 lakh crore
• Economic recovery benefitting from public investment and capital spending. This Budget will provide impetus to growth

Jobs

• ECLGS extended till March 2023, 60 lakh jobs eyed in next 5 years
• Efforts of central, state governments leading to jobs, entrepreneurial opportunities
• Digital ecosystem for skilling and livelihood to be launched.
• This will aim to skill, reskill, upskill citizens through online training.
• API based skill credentials, payment layers to find relevant jobs and opportunities

Infra

• National highway network to be expanded by 25,000 km during FY 22-23
• Desh stack e-portal to be launched to promote digital infra
• Strategic transfer of ownership of Air India completed now
• 2,000 km to be brought under Kavach by FY 22-23
• Four multi-modal national parks contracts will be awarded in FY23
• One product one railway station will be popularised, 400 new Vande Bharat trains to be introduced
• PM Gatishakti masterplan for expressways will be formulated in the next financial year
• 100 PM Gati Shakti terminals to be set up in next three years
• Focus on public investment to modernize infrastructure over the medium term, leveraging the tech platform of Gati Shakti via a multi-modal approach
• PM Gati Shakti will pull forward the economy and will lead to more jobs and opportunities for the youth

Housing & urban planning

• Rs 48, 000 crores is allotted for PM Awas Yojana
• In 2022-23, 80 lakh houses will be completed for identified beneficiaries of PM Awas Yojana; 60,000 houses will be identified as beneficiaries for PM Awas Yojana in rural & urban areas
• 60,000 crores allocated for providing access to tap water to 3.8 crore households
• In 2022-23, 80 lakh households will be identified for the affordable housing scheme
• A high-level committee for urban planners and economists to be formed for recommendations on urban capacity building, planning implementation, and governance.
• 5 existing academic institutions for urban planning to be designated as Centre for Excellence with an endowment fund of Rs 250 cr
• Modern building by-laws will be introduced
• A high-level panel to be set up for urban planning
• Govt to promote the use of public transport in urban areas

MSMEs & startups

• Rs 6,000 crore program to rate MSMEs to be rolled out over 5 years
• MSMEs such as Udyam, e-shram, NCS & Aseem portals will be inter-linked, their scope will be widened
• They will now perform as portals with live organic databases providing G-C, B-C & B-B services such as credit facilitation, enhancing entrepreneurial opportunities
• A fund with blended capital raised under co-investment model facilitated through NABARD to finance startups in agriculture & rural enterprises for farm produce value chain
• Startups will be promoted for Drone Shakti
• PE/VC invested Rs 5.5 lakh crore in the startup, an expert committee will be set up to suggest measures to help attract investment

Agriculture

• Govt to pay Rs 2.37 lakh crore towards procurement of wheat and paddy under MSP operations
• 2022-23 has been announced as the International Year of Millets
• Railways will develop new products for small farmers and MSMEs
• A rationalized scheme to increase domestic oilseed production will be brought in to cut down imports
• Kisan Drones for crop assessment, land records, spraying of insecticides is expected to drive a wave of technology in the Agri sector
• Ken Betwa river linking project worth Rs 44,605 crore announced
• Draft DPRs for 5 river links have been finalized
• Finance startups to be incentives to aid rural enterprises
• Natural farming will be promoted along the Ganga river corridor
• A completely paperless, e-bill system will be launched by ministries for procurement

Electric Vehicles

• Battery swapping policy to allow EV charging stations for automobiles will be framed
• The private sector will be encouraged to create sustainable and innovative business models for battery and energy as a service, improving the efficiency in the EV ecosystem

Education

• States to be encouraged to revise syllabi of agricultural universities to meet needs of natural, zero-budget & organic farming, modern-day agriculture
• One class, one TV channel’ program of PM eVIDYA will be expanded from 12 to 200 TV channels
• This will enable all states to provide supplementary education in regional languages for classes 1 to 12
• Digital university to be set up to provide education; to be built on a hub and spoke model
• 1-Class-1-TV Channel to be implemented to provide supplementary education to children to make up for the loss of formal education due to Covid

Finance & inclusion

• Rs 1 lakh crore financial assistance to states to be provided in 2022-23 to catalyze investments
• Proposed to introduce Digital Rupee by RBI using blockchain technology, starting 2022-23
• Measures will be taken to step up private capital in the infra sector
• Digital Rupee to be rolled out by 2023
• 100% of 1.5 lakh post offices will come on the core banking system, enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and also providing online transfer of funds between post office accounts and bank accounts
• This will be helpful especially for farmers and senior citizens in rural areas, enabling interoperability, and financial inclusion.
• IBC amendments to enhance the efficiency of the resolution process
• Facilitate cross-border insolvency resolution
• To speed up voluntary winding up of companies
• 75 digital banks in 75 districts will be set up by scheduled commercial banks to encourage digital payments
• An international arbitration center will be set up in GIFT city to provide faster dispute resolution
• World-class university to be allowed in GIFT IFSC free from domestic regulation

Healthcare

• An open platform for the national digital health ecosystem will be rolled out
• It will consist of digital registries of health providers and health facilities, unique health identity, and universal access to health facilities
• 95% of 112 aspirational districts have made significant progress in health, infra
• For mental health counseling, a National Tele Mental Health Program will be launched

Telecom

• Spectrum auction will be conducted in 2022 for the rollout of 5G
• Scheme for design-led manufacturing to be launched for 5G ecosystem as part of PLI scheme to enable affordable broadband and mobile communication in rural and remote areas
• 5% of USO Fund to be provided for R&D and technology up-gradation
• Contracts for laying optical fiber in villages to be awarded under BharatNet project under PPP in 2022-23
• Datacenter and energy storage system to be given infrastructure status; move to provide easy financing

Women & Children

• Recognizing the importance of ‘Nari Shakti’, 3 schemes were launched to provide integrated development for women and children
• 2 lakh Anganwadis to be upgraded for improving child health

Ease of Business

• 75,000 compliances have been eliminated and 1,486 union laws repealed to make it easier for businesses
• Next phase of ease of doing business, ease of living to be launched
• Voluntary exit for corporates to be cut down to 6 months from 2 years

Defense

• The govt committed to reducing imports and promoting self-reliance in the defense sector
• 68% of capital for the defense sector to be earmarked for local industry
• Defense R&D will be opened up for industry, startups, and academia with 25% of the defense R&D budget.
• Private industry will be encouraged to take up the design and development of military platforms and equipment in collaboration with DRDO and other organizations through the SPV model.
• 68% of the capital procurement budget in defense will be earmarked for the domestic industry in 2022-23 (up from the 58% last fiscal).
• Defense Budget hiked by 9.83%. Net Defence Budget including Pension is now 5.25 lakh crores.
• The capital budget is Rs. 1.52 lakh crores (over $20 billion), a more than 11% increase.

Railways

• 400 new generation Vande Bharat trains to be manufactured in next 3 years
• 2,000 km of the rail network to be brought under indigenous technology KAWACH for safety and capacity augmentation: FM

Climate & Net Zero

• Risks of climate change are the strongest externalities for the world
• Funds will be used for projects that will help reduce the carbon intensity of the economy
• Sovereign green bonds will be part of the government’s borrowing program in FY23
• Proceeds to be deployed in public sector projects

Travel

• ePassports will be rolled out in 2022-23 for convenience in overseas travel
• E-passport with the embedded chip will be rolled out

At UNSC, India abstains from the Ukraine vote, calls for immediate de-escalation in the region

In its continued attempt to balance its close strategic ties with both the US and Russia, India on Mon called for an immediate de-escalation of tensions related to Ukraine, reiterated its support for a peaceful resolution of the issue for long-term peace, and stability, and appealed for quiet and constructive diplomacy.

• It also supported the ongoing diplomatic talks between various stakeholders (US, EU, Ukraine, and Russia) under various formats,
• India has asked all sides to avoid steps that may increase tensions and prioritized the safety of over 20,000 Indians in Ukraine.

India’s permanent representative to the UN, TS Tirumurti articulated New Delhi’s most detailed position on the issue so far, building upon a ministry of external affairs (MEA) statement on Fri, at a meeting of the UNSC on Mon.

• The council witnessed a stormy confrontation between the US and Russia.
• Earlier, India was among the 3 countries that abstained from a vote on whether the council should take up the situation in Ukraine.

10 out of the 15 members voting in favor— only Russia and China opposed it — the UNSC saw a discussion on the geopolitical crisis that has created the most serious rift between the US and Russia in years. India was joined in its abstention by Kenya and Gabon

• The US previously requested an open council meeting, citing the threat posed by what it alleges is Russia’s military build-up along the Ukrainian border.
• Russia subsequently thanked the countries which opposed or abstained from the vote to discuss the proposal.

Tirumurti said India was closely following the evolving developments related to Ukraine, including talks between the US and Russia and under the Normandy Format in Paris (the format includes Germany, France, Ukraine, and Russia).

• He reiterated that India believed the issues could only be resolved through diplomatic dialogue.
• The Minsk agreement of 2014 and 2015 outlines steps to end the conflict in Ukraine through a political settlement.
• Moscow has blamed Kyiv for not implementing the agreement, while Kyiv has placed the blame on Moscow’s interference and its support for separatists in the eastern region.
• India “urged all parties to continue to engage through all diplomatic channels and keep working towards the full implementation of the Minsk package”.
• Tirumurti said that “quiet and constructive diplomacy” was the need of the hour.
• The debate at the council, however, saw a blame game between the US and Russia on who exactly was escalating tensions.

The US reiterated its allegations that Russia had amassed 100,000 troops along the Ukrainian border; it had sent additional troops to Belarus; it had launched cyberattacks and disinformation campaigns; and its actions showed an intent to further invade Ukraine, in what was an attack on the principle of state sovereignty under the UN charter.

Russia argued that Russian troops were in Russian territory; accused the US of making allegations without proof and creating hysteria when there was no threat; cited American claims in the run to the 2003 Iraq war in the UNSC about weapons of mass destruction as evidence of the US’s track record; reiterated the Russian claim that it had no intention of invading Ukraine; and blamed west of encouraging Kyiv to sabotage the Minsk agreement.

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Cash-strapped Pakistan seeks loans of $5 billion from China, Russia, and Kazakhstan

Amid the economic crisis in the country, Pakistan is looking to secure a loan of approximately $3 billion from China as well as from $1 Bn each from Russia and Kazakhstan. 

• This development comes ahead of the country’s Prime Minister Imran Khan’s scheduled visit to Beijing this week.
• PM Khan will visit the Chinese capital to attend the opening ceremony of the Beijing Winter Olympics 2022 on Feb 3.
• He will also meet the top Chinese officials on the sidelines for bilateral talks. 
• It has been understood that Pakistan’s govt decided to seek a loan worth $5 billion.
• The loan from China will be used to stabilize foreign exchange reserves and loans from Russia and Kazakhstan will be spent on the Main Line One (ML1) Railway Project. 
• Pakistan’s Ministry of Economic Affairs has prepared a plan for borrowing as the loan agreement of $3 billion with China will be signed during PM Khan’s visit to China. 

• The initial agreement with China for the loan will be for one year.
• The deals with Kazakhstan and Russia are also expected to be finalized and subsequently signed soon. 
• Meanwhile, PM Khan is set to depart for China for a three-day visit on Thursday and some federal ministers will also accompany him. 
• The Pakistani PM will hold important meetings during his visit to China and will meet the Chinese President Xi Jinping.  
• PM Khan is also expected to hold bilateral meetings with other dignitaries at the Winter Olympics. 
• It is expected that during the PM’s visit to China, CPEC and mutual security issues will be discussed and the regional situation will also be on the agenda. 
• The matter of China providing loans to Pakistan worth $3 billion will also be finalized and is expected to be signed during PM Khan’s China visit. 

The Pakistani Economic Affairs Ministry in a rebuttal to the media reports seeking a loan said that no such proposal is under process in the Economic Affairs Division for obtaining a $3 billion loan from China and $2 billion loans from Russia and Kazakhstan. 

Myanmar’s deposed leader Suu Kyi to face a new trial for poll fraud

HT-Myanmar’s junta has charged Aung San Suu Kyi with influencing election officials during 2020 polls, a source said on Mon, a year after it staged a coup alleging massive voter fraud. Suu Kyi, 76, has been detained since the Feb 1 coup last year that triggered protests and a bloody crackdown on dissent with nearly 1,500 civilians killed, according to a local monitoring group.

(Source)- She will face a further trial on charges of influencing the country’s election commission during the 2020 polls that saw her party defeat a military-aligned rival.

• The case will be wrapped up within six months, the source added.
• Former president and stalwart of the National League for Democracy (NLD) party Win Myint will face the same charge, the source said.
• Several senior members of the national electoral commission have also been arrested since the coup, accused of masterminding the NLD’s landslide victory.
• The junta canceled the results of the 2020 election in July last year, saying it had found some 11.3 mn instances of fraud.
• Meanwhile, the US on Mon imposed sanctions on seven individuals and two entities connected to Myanmar, the US Treasury said on its website.