STAY PUT

Source: The Hitavada      Date: 04 Aug 2017 11:52:35


WITH India not succumbing to the pressure mounted by China asking it to pull out troops from Doka La unconditionally, the dragon country has now resorted to spreading canards. The Foreign Ministry of China has claimed that India has reduced its troop strength from 400 to 40 in Doka La, which has been refuted by India.

There is no question of India pulling out its troops because the ingression has been made by Chinese troops, who are building a road in the region whose ownership has been claimed by both China and Bhutan. India has supported Bhutan and Indian troops have stopped Chinese soldiers from constructing the road, leading to a standoff.

China is trying to bully India, threatening it with military action, if India fails to withdraw troops.China thought that India would succumb to the pressure easily. However, India is sticking to its guns, which has further irked China. As India’s stand on the status of Doka La is correct, there is no reason for it to withdraw its troops from the border area in any case.

MUCH AWAITED STEP

AT LAST the Reserve Bank of India (RBI) has taken the much awaited and even much sought decision to lower the interest rates. This is the first reduction under Governor Mr.

Urjit Patel’s tenure as also that of the newly constituted Monetary Policy Committee. Given the pattern of the voting over the decision to cut the lending rate it was clear that there was near unanimity on the need to reduce the rates, not only responding to the all round demand but also because consumer price index (CPI) has presented a breathing space to the RBI to arrive at the decision. Mr. Urjit Patel’s predecessor Dr.

Raghuram Rajan had resisted intense pressure from all quarters, including the Government, on the matter, as he was concerned about inflationary pressure inherent in the economy. Since the CPI has eased to substantially, the RBI felt comfortable in lowering the lending rate. This is expected to give fillip to demand for consumer goods and revive manufacturing and spur investment. Of course it would take some time for revival of the investment sentiment.