India, Vietnam ink MoU to simplify procedures for logistic support

Defence Minister Rajnath Singh held bilateral talks with Vietnam’s Minister of National Defence General Phan Van Giang in Hanoi on Wed, after which they signed an MoU on Mutual Logistics Support to help enhance engagements between the defense forces of the two countries. India and Vietnam also signed a “Joint Vision Statement” for Defence Partnership towards the year 2030 to enhance the scope and scale of defense cooperation between the countries during Defence Minister Rajnath Singh’s official visit to Vietnam. Singh said that both sides had a wide-ranging discussion on effective and practical initiatives to further expand bilateral defense engagements and other issues. Earlier today, Singh visited the Mausoleum of the Founding Father of Vietnam, President Ho Chi Minh, and paid homage to the leader. The Minister is also scheduled to call on the President of Vietnam Nguyen Xuan Phuc and PM Pham Minh Chinh. At the Hong Ha Shipyard in Hai Phong, Singh will preside over the handing over ceremony of 12 high-speed Guard Boats constructed under the Govt of India’s USD 100 mn Defence Line of Credit to Vietnam. During the visit, Singh will also visit the training institutions of Vietnam at Nha Trang, where an Army Software Park is being established with a USD 5 million grant from India. The two share a Comprehensive Strategic Partnership since 2016 and defense is a key pillar of it. Vietnam, an important country of the ASEAN, has territorial disputes with China in the South China Sea region. (here)

RBI MPC: Repo Raised by 50 bps; FY23 Inflation Revised Up; GDP Outlook Retained

The RBI’s Monetary Policy Committee on Wed unanimously decided to raise the repo rate by 50 basis points to 4.90% (the second time within a month) with the focus on withdrawal of accommodation, and raised its retail inflation forecast for FY23 to 6.7% from 5.7% earlier, retained FY23 GDP growth projection at 7.2%, and proposed to link credit cards to UPI platforms. While presenting the statement RBI, Governor said this is due to the Russia-Ukraine war has led to the globalization of inflation and central banks across the world are reorienting policies. “The real GDP growth projection for 2022-23 is retained at 7.2%, with Q1 at 16.2%; Q2 at 6.2%; Q3 at 4.1%; and Q4 at 4.0%, with risks broadly balanced,” RBI said. The RBI also decided to permit Urban Cooperative Banks to extend doorstep banking services to their customers. To improve recurring payments like subscriptions, insurance premia, and education fees of larger value under the e-mandate framework, the limit is being enhanced from Rs 5,000 to Rs 15,000 per transaction. (here)

Nepal to handover contract for construction of 750 MW West Seti Hydel to NHPC India

The Govt of Nepal has decided to hand over the contract of the 750-megawatt West Seti Hydropower Project and 308-MW SR6 Storage Hydroelectric Project to National Hydro Power Company Limited, India. The 51^st meeting of the Investment Board Nepal (IBN) chaired by Nepal PM Sher Bahadur Deuba has decided to award the company with the contract as per the Public-Private Partnership model. Deuba, while addressing an election rally in his home district Dadeldhura on May 10, had said that Nepal would not be able to build the West Seti project on its own and announced contracting an Indian company. The project has been in limbo for 29 years as it has not been able to formulate the modalities and investment structure. There is an obligation to meet the domestic demand by importing electricity from India when there is an energy crisis in winter. Earlier, the Project was estimated to cost Rs 165 bn. (here)

Prophet comment row: India in damage control mode in Gulf after BJP members remark

Pakistan Foreign Secy, Sohail Mahmood has called upon the P-5 countries to take cognizance of the recent abhorrent development, the growing hate speech, and the rising tide of Islamophobia in India. Mahmood also recalled the special responsibility of the P-5 countries regarding the maintenance of international peace and security and upholding of the principles enshrined in the UN Charter. Mahmood individually met the Envoys of the P-5 to apprise them of the derogatory and offensive remarks made by 2 senior officials of India’s ruling party BJP, against the Holy Prophet Muhammad (Peace be upon him), FO said in a press release on Tue. India must be held accountable for stifling the rights of its religious minorities, the release added. New Delhi faces a chorus of diplomatic outrage from the Gulf following the remarks seen by several countries as part of growing Islamophobia in India. While Qatar, Kuwait, and Iran summoned India’s Ambassadors there. Al-Qaeda in the Indian Subcontinent (AQIS) outfit, which is the newest affiliate of al-Qaeda and was reportedly launched in 2014, has threatened to carry out terror attacks in the Indian states of Gujarat, UP, Mumbai, and Delhi in the wake of controversial remarks. While the Indian Ministry of External Affair commented “The offensive tweets and comments denigrating a religious personality were made by certain individuals. They do not, in any manner, reflect the views of the Government of India,” he said. Central agencies are “seriously” looking into the threat letter sent by AQIS,” ANI reported citing the source. Times Now claimed that “Defame India plot exposed: Egypt-based front of Muslim Brotherhood behind the Twitter storm”.

Iranian FM Amirabdollahian meets Indian NSA

Iranian Foreign Minister Amirabdollahian arrived in New Delhi, to confer with senior Indian officials. Upon his arrival, Amirabdollahian told reporters on Wed morning that India-Iran ties are at a very good level. The exchange of delegations especially in the new administration in Tehran has increased and all-out relationship, including cultural cooperation, has been developed, the top diplomat noted. During his trip which takes place at the official invitation of the Indian counterpart Subrahmanyam Jaishankar, Amirabdollahian is to hold strategic talks with senior Indian officials. He is also to visit Mumbai and Hyderabad. Meeting with the National Security Advisor to the Prime Minister of India is the first meeting of Amirabdollahian on his current visit to India’s New Delhi. (here)

[NATIONAL]

Vice President M Venkaiah Naidu departs for Delhi from Qatar

The three-nation tour of Vice President M Venkaiah Naidu to Gabon, Senegal, and Qatar ended today as he departed for New Delhi from Doha on Tue. Naidu reiterated that India will further strengthen its historic friendship with Qatar and agreed that a high-level engagement should be sustained, including an early visit of Qatar’s Amir, Tamim bin Hamad Al Thani to the country. He reached Doha on Sat accompanied by a high-level delegation including the Minister of State for Health and 3 Members of Parliament. Both sides positively assessed the developments in bilateral relations and Naidu expressed happiness at the first-ever visit at the Vice President level from India to Qatar. Both sides expressed satisfaction at the continued engagement at the highest levels between both countries since the landmark visits of Qatar’s Amir to India in 2015 and PM Modi to Qatar in 2016. On Sun, Naidu launched the “India-Qatar Start-Up bridge” to link the start-up ecosystems of the two countries at the India-Qatar Business Forum in Doha. India and Qatar decided in 2018 to establish a Joint Commission to strengthen the relations between the two countries in various fields to further the common interests of their two friendly peoples. (here)

India will never accept any attempt to unilaterally change the status quo along its borders, says Jaishankar

In a veiled reference to China, External Affairs Minister S Jaishankar said on Tue that India will never accept any attempt to unilaterally change the status quo and a posture that departs from established understandings will evoke its own responses. Speaking at an event to mark the 8^th year of the Modi govt, Jaishankar said when it comes to security, India will do what it takes to ensure national well-being. He said India will overcome the hesitations of history and won’t allow anyone a veto on its choices. The EAM also said that India looks forward to “joining Nuclear Suppliers Group overcoming political impediments that are against global interest”. He said New Delhi acknowledges the role of trusted partners who work to help keep India safe and secure every day. Also, underscore the Vaccine Maitri. (here)

CTD arrests nine men of banned outfits in Punjab

The Punjab Counter-Terrorism Department (CTD) claimed to have arrested 9 members of different banned organizations, including a member of a hostile foreign intelligence agency (Indian Research and Analysis Wing-RAW) in 38 Intelligence Based Operations (IBOs), launched across the province during the last week. A spokesperson for the CTD says the IBOs were carried out across Punjab to avert any untoward incident and during these operations an alleged member of Indian prime intelligence agency RAW, Naveed Akhtar, was arrested from Lahore, declaring it a major achievement. (here)

European traders get more discounts on Russian oil than Indian buyers.

Despite global pressure, Indian refiners continue to buy oil from Russia; but Indian refiners are getting lower discounts as compared to their European counterparts. In the aftermath of international sanctions due to the Ukraine war, Russia is offering crude at a $10-a-barrel cut, a significant discount to global market prices, to India. However, this markdown is lower compared to what European refiners get, Indian refiners told Economic Times. Agencies report Russian crude to be available at a discount of $35/barrel to Brent, the global oil benchmark, but increased insurance, shipping, and dealer margins in the aftermath of sanctions have affectively reduced the concession effectively to $10 for Indian buyers. While lower delivery costs due to geographical proximity traditionally worked in favor of Europe, changed supply dynamics in the aftermath of sanctions have made Russian oil deals sweeter for traders in the region. This has resulted in fewer suppliers of Russian crude available for Indian or other non-EU buyers leading to smaller discounts. On the other hand, European traders are only allowed to sell to European buyers leading to heftier concessions for those buyers. (here)

India could soon allow wheat exports of 1.2 million tonnes

India could soon allow traders to ship out around 1.2 million tonnes of wheat as it seeks to clear cargoes stuck at ports since last month’s sudden ban of exports of the grain, govt and trade sources said on Wed. But even after New Delhi’s permission to export that much, about 500,000 tonnes of wheat could remain at ports, as some traders have failed to secure export permits, Reuters reported citing a source. New Delhi banned wheat exports in a surprise move on May 14, but said it would allow overseas shipments backed by already issued letters of credit (LCs) and to countries that request supplies “to meet their food security needs”. Following the export ban, India has allowed wheat shipments of 469,202 tonnes, but at least 1.7 million tonnes are still lying at ports, raising quality concerns due to looming monsoon rains. (here)

CRPF seizes huge ammunition from Jharkhand in a joint search operation with police

The Central Reserve Police Force (CRPF) on Tue seized a huge cache of ammunition from the Lohardaga district in Jharkhand in 3 separate joint search operations. The CRPF conducted these searches at specific locations in Chapal, Jurni, and Guni villages based on a tip-off. The seized ammunition includes 6 Improvised Explosive Devices (2 kg each), 2 bundle wires and 40 pieces of MSeal packets, and 421 rounds of live cartridges. In another such operation, forces recovered a total of 132 rounds of live cartridges. CRPF is handling counter-insurgency, counter-terrorism, and left-wing extremism apart from handling duties related to installation security, polling duties, and VIP security. (here)

4 terrorists killed in 3 encounters in the last 24 hours in J-K

In 3 different encounters over the last 24 hours, 4 terrorists have been eliminated by security forces in Jammu and Kashmir. Of the 4 terrorists, 3 belonged to Lashkar-e-Taiba (LeT) and 1 was affiliated with Hizbul Mujahideen, of which 2 were Hanzula and Tufail belonged to Lahore, Pakistan, while 2 were locals. Indian Army, Central Police Force, J&K Police, and security agencies carried out a simultaneous operation, in which AK-56, grenades, and a huge amount of ammunition were recovered. The terrorists who killed people in Kashmir were eliminated by the forces within 24 hours. Considering the situation in J&K, Union Home Minister Amit Shah has held two meetings in the last 15 days. In a meeting on June 3, Shah had instructed all the agencies and security forces to find and kill the terrorists who disturb the peace. [In the past few weeks, the incidences of targeted killings of Kashmiri Pandits, created substantial pressure on the system, and a big question mark on the decision to abrogate Article 370.] (here)

[NEIGHBORHOOD]

China gains ground on the US in hi-tech ‘tug of war’, as Beijing spends billions on national champions

China has been gaining global market share in hi-tech industries at the expense of the United States, according to a new report, as the race for tech supremacy between the two countries heats up. Measured across key 7 sectors, China’s share of the advanced technology market leaped from less than 4% in 1995 to 21.5% in 2018, said the Information Technology & Innovation Foundation (ITIF) on Wed. The sectors covered in the report include IT and information services; computer, electronic and optical products; electrical equipment; machinery and equipment; motor vehicle equipment; other transport equipment; and pharmaceutical products. US market share declined from 24% in 1995 to 22.5% in 2018, with experts warning its competitive advantage is under threat (here)

Taiwan on agenda at Shangri-La Dialogue as China, US defense chiefs come face to face

Chinese and US defense chiefs are expected to reaffirm their tough security stands at a conference in Singapore this week but their appearance signals the realization of the need to improve ties, experts said. (source)- Chinese Defence Minister Wei Fenghe and his American counterpart Lloyd Austin were expected to hold their first in-person meeting on the sidelines of the Shangri-La Dialogue, which starts on Fri. “There are many topics Austin wants to discuss with Wei, including Taiwan, Hong Kong, Tibet, Xinjiang, and other regional and global issues,” SCMP reported citing the anonymous source. Chinese delegation could push on Biden’s comments about US willingness to aid the island (here)

World Bank approves $258m to support healthcare in Pakistan

The World Bank has approved $258 million to strengthen primary health care systems and accelerate national efforts toward universal health coverage in Pakistan, a press release issued by the WB said on Wed. The National Health Support Programme “complements ongoing investments in human capital and builds on health reforms that aim to improve quality and equitable access to healthcare services, especially in communities lagging behind national and regional-level health outcomes”. It identified three areas of focus for healthcare reforms under the initiative: healthcare coverage and quality of essential services, governance and accountability, and healthcare financing. (here)

US official calls for more ASEAN engagement with Myanmar’s shadow government

The United States is committed to engaging with Myanmar’s shadow government, the National Unity Government (NUG), and encourages ASEAN countries to engage publicly with it as well, a senior US official said ahead of a diplomatic tour of Southeast Asia this week. The NUG represents Myanmar’s civilian government, which was ousted in last year’s military coup, and several of its senior members have met Biden administration officials over the past year. But the US has stopped short of granting it formal diplomatic recognition, despite calls by activists and some lawmakers.

Former Afghan minister returns to Kabul at Taliban invitation

A former Afghan minister, who fled as the Taliban took over Afghanistan last year, returned on Wed, officials said, following security assurances given as part of the hardline group’s initiative to woo back high-profile individuals. Ghulam Farooq Wardak, a member of the cabinets of former presidents Hamid Karzai and Ashraf Ghani, is the latest in a string of returning officials, said Taliban officials looking to shore up a govt yet to win international recognition. Wardak had returned from Turkey, said Ahmad Wasiq, the spokesman of a body set up by the Taliban to negotiate the return of high-profile Afghans abroad. Other officials to return included a former spokesman for the defense ministry, the former head of Afghanistan’s national power company, and some military officials, he told Reuters. (here)

China hails ‘ironclad partnership’ with Cambodia as work begins on a naval base, raising US concern

A Chinese official said on Wednesday an “ironclad partnership” with Cambodia was bolstered by military cooperation, as work began on a China-funded upgrade of Cambodia’s biggest naval base that has raised US concern about China’s growing influence. Cambodian Minister of Defence Tea Banh dismissed fears that Cambodia would let China build a military base on its soil, saying any country could use the facilities at the Ream naval base, while Cambodia was open to accepting military help from anyone. The new port near the South China Sea will be deepened to accommodate larger military ships and will include a maintenance facility, dry dock slipway, and pier. (here)

Lanka to borrow $55 mn from India to buy urea, year after the disastrous organic farming turn

Sri Lanka is borrowing $55 million from India to buy urea for paddy cultivation, continuing with its U-turn on chemical fertilizers a year after the Rajapaksa government banned chemical fertilizers in an attempt to switch completely to organic farming, plunging farmers in the island nation into an unprecedented crisis. The Sri Lankan Cabinet Tue approved the proposal to sign the agreement, which was tabled by Prime Minister Ranil Wickremesinghe in his capacity as the minister of finance, economic stabilization, and national policies. The $55-million loan (around Rs 427.7 crore), which is provided via the Export-Import Bank of India (EXIM Bank), will be given for use in the procurement of urea in 2022-23 harvest season. (here)