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India may lose credibility if PM Modi fails to rein in BJP members: Moody’s

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Chennai: Cautioning Prime Minister Narendra Modi, Moody’s Analytics on Friday said that the country may lose domestic and global credibility if he does not rein in the members of the ruling BJP.

The research firm, whose parent runs global rating agency Moody’s, said controversial comments from various party members amid the raging beef controversy is not helping the government.

“While PM Modi has largely distanced himself from the nationalist gibes, the belligerent provocation of various Indian minorities has raised ethnic tensions,” said Moody’s Analytics.

The ruling BJP does not have a majority in the Rajya Sabha, where crucial reforms bills have been met with an obstructionist opposition, it noted.

In a report titled ‘India Outlook: Searching for Potential’, Moody’s Analytics, a division of Moody’s Corporation, said:

“Along with a possible increase in violence, the government will face stiffer opposition in the upper house as debate turns away from economic policy.”

Moody’s Analytics, a top economic policy research and analysis institution, said the politics need to improve and the government’s reform agenda needs attention to achieve long-term growth.

While the government met with obstructionist opposition in the upper house with regard to crucial reform measures, the ruling party also hasn’t helped itself with controversial comments by its members, Moody’s Analytics said.

The Indian economy is likely to grow at 7.6 percent this year and in 2016 while closing of negative output growth is going to be difficult due to external headwinds and the government failing to deliver on reforms, it added.

“Overall, it’s unclear whether India can deliver the promised reforms and hit its growth potential. Undoubtedly, numerous political outcomes will dictate the extent of success.”

According to the report, the Indian economy is expected to grow around 7.3 percent year-on-year in September quarter which is below the expected potential of around nine or 10 percent.

Expecting the gross domestic product (GDP) to grow at 7.6 percent this year and 2016, Moody’s Analytics said key economic reforms like goods and service tax, revamped labour laws and land acquisition bill would improve India’s productivity.

According to the report, low interest rates will help the economy in the short term and the financial market sentiment has faded. Further rate cuts in 2015 are unlikely, but there is room for more next year.

The Indian stock market and the foreign inflows are down while the strong external headwinds-slowdown in global growth are hurting Indian exporters.

Moody’s Analytics expects Indian exports continue to fall in 2016 while the newfound stability in India’s current account balance could come under renewed stress if global growth slows more.

“So far, lower oil prices have buttressed the trade balance. But a rebound in prices if oil supply re-balances could see the trade balance deteriorate,” the report adds.

According to Moody’s Analytics, indications are there on foreign investors turning less optimistic about India’s economic prospects.

“Net financial flows into equity were around $16 billion in 2014. However, they are unlikely to reach those highs this year. The same can be said about financial flows into India’s debt market,” the report said.

A move towards full capital account liberalisation is inevitable in India and this may happen in the next two to four years.

“A freer capital account will give Indian companies greater access to overseas markets, lower borrowing costs, and facilitate credit growth – a key ingredient to increasing investment,” Moody’s Analytics said.

(With inputs from agencies)

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Kejriwal’s Door to Door Donation Drive is a Farce: Munish Raizada

Chanda Bandh Satyagraha makes an appeal that AAP should immediately restore donors' list on its website and then only seek new donations.

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Kejriwal
Dr. Munish Raizada along with his Chanda Bandh Satyagraha team outside the office of AAP MLA Jarnail Singh (Tilak Nagar). File photo

Chicago: The Aam Aadmi Party Convener and Delhi CM Arvind Kejriwal has launched a door to door campaign seeking donations for the AAP.  According to former overseas co-coordinator of Aam Aadmi Party, Dr. Munish Raizada, this is nothing more than a misleading campaign!

Raizada says that Kejriwal has no moral right to seek donations from common man as he has dismantled financial transparency in AAP by removing donors list from its website. Displaying donors’ list showing real time donations and making the income and expenditure accounts available online were the basis and the promise of the AAP, emphasised Raizada.

Now, after hiding donors’ list and its balance sheets from the public, the AAP cannot claim to be practising alternative politics.

Munish Raizada, kejriwal
Lack of financial transparency in the Arvind Kejriwal-led AAP prompted a group of NRIs, who once worked to mobilise funds and support for the party, to turn against it. (File photo)

It may be noted that AAP removed the list of donors from its website in June 2016. Moreover, since then AAP has been surrounded with controversies related to donations. AAP had also received Rs 30.67 crore Income Tax notice, last year in November, implying that all is not well with AAP’s accounts, says Raizada.

He further questions Kejriwal, that if AAP has nothing to hide about its accounts and if AAP is honest with its account keeping then why is Kejriwal hiding the donations?

Even the donation policy that was earlier the pride of every AAP volunteer has been done away with. The donation policy on AAP website used to state: “Every single rupee donated to the party will be published on the website immediately along with the details of the donor. Every expense done by the party will also be published on the website.”

But rather than putting the donors’ list in public domain, the party’s corrupt leadership started blaming BJP and I.T. Department for harassing its donors.

 

munish raizada, kejriwal
Chanda Bandh Satygrah demands restoration of  lost values in AAP ( File Photo)

 

Opaque political funding is the fountain head of corruption. Further, Raizada says that if the party cannot be transparent in its political funding, then talking about fighting corruption and graft is a mere rhetoric. He said that the appeals by Chanda Bandh Satyagraha have fallen on deaf ears as far as the party’s

leadership is concerned. 

Chanda Bandh Satyagraha makes an appeal that AAP should immediately restore donors’ list on its website and then only seek new donations. Chanda Bandh Satyagraha was started by AAP’s volunteers in 2016, with an appeal to the public not to donate to AAP unless it makes its donation lists open and transparent.