Pak army fires at Indian post on day of electric World cup clash

Pakistan rangers targeted Indian outposts near Tavi in RS Pura sector of Jammu and Kashmir on Sunday, a day when cricket teams from the two nations clashed in their opening match of the World Cup — a tie billed as “war without guns”.

The rangers targeted a Border Security Force (BSF) post on the international border. A police officer said the rangers fired three rounds at 10.50am, once again violating the 2003 ceasefire between India and Pakistan on the Kashmir border. The BSF, whose 127 battalion was at the post, retaliated. No one was injured on the Indian side.

"The firing stopped immediately after the rangers used small arms to target the BSF outpost," the officer said.

Pakistan Saturday too violated the ceasefire in the same when the Rangers targeted a BSF post with a mortar shell. The mortar fell 300 meters away from the post.

The ceasefire violations came after Indian Prime Minister Narendra Modi rang up his Pakistani counterpart Nawaz Sharif on Friday to wish his cricket team luck ahead of the match between the arch-rivals.

Experts said India hoped to use the sporting contest to rebuild troubled relations between the two nations.

In 2011, then Prime Minister Manmohan Singh had invited his Pakistan counterpart to watch a game of cricket in India and discuss reviving a peace process. The "cricket diplomacy" had offered more symbolic gestures than any breakthroughs in a conflict that has lasted for more than sixty-five years.

Modi lauds Vivek Oberoi's work for Clean India

Prime Minister Narendra Modi has lauded Vivek Oberoi's effort towards the Clean India campaign after the Bollywood actor was spotted with a broom on the streets of Mumbai.

"I appreciate the work of @vivek_oberoi towards creating a Swachh Bharat," read a post from Modi's Twitter handle @narendramodi.

Vivek, also known for his philanthropic efforts, was over the moon with the appreciation.

"@narendramodi feel honoured & humbled by your appreciation. Shall be committed to the cause of #swachhbharat through various means," he tweeted.

PM Modi Wants Number 50, But India Just Slipped to 142 on This List

India has notched up its worst-ever ranking in the "Ease of Doing Business" index compiled by the World Bank, slipping to 142 out of 189 countries. Just last month Prime Minister Narendra Modi had said he wants India to be among the top 50 countries on the list.

The rankings are based on 10 indicators such as how easy it is to start a business and sometimes form the basis of foreign investments in a country. The World Bank has clarified that the rankings are based on data available till May 2014 and do not take into account measures taken by the new government.

India's ranking originally stood at 134 last year, but has been now adjusted to 140 by the World Bank to account for fresh data. In 2006, when the index was launched, India ranked 116th.

According to the World Bank, India scored much higher than its overall ranking (142) in protecting minority investors (rank 7) and in ensuring credit (rank 36), but lagged behind in other parameters such as granting construction permits (184) and enforcing contracts (rank 186).

Overall, India scored above its rank in ensuring electricity (137), registering property (121), trading across borders (126) and resolving insolvency (137), but ranked poorly in starting a business (158) and paying taxes (156) weighed on the composite standing.

The fall in rankings illustrates the urgent need for action in categories that involve interface with the government such as paying taxes, construction permits, etc.

Analysts say the new government has taken up the challenge seriously. In a report published last week, global brokerage Nomura said the Modi government has made "commendable progress" in improving the ease of doing business in India.

"There has been a move towards faster processes and less regulation... and the government is considering an amendment to labour laws," said Nomura's Sonal Varma.

The positive sentiment was today echoed by World Bank officials too. To a question whether India will be able to climb the rankings quickly, Augusto Lopez-Claros said, "There is no reason, why not? There are many examples of countries who through focused efforts, through intelligently designed reforms have managed to make very substantial improvement."

If India is able to improve its credentials as a business-friendly destination, it will be able to attract the much-needed foreign direct investment, which according to Deutsche Bank has averaged less than 2 per cent of GDP over the past decade.

An improvement in ease of doing business will also ensure "a better regulatory framework for development, job creation and growth," said Kaushik Basu, chief economist of the World Bank.

Budget 2014: 6 things you can expect from Narendra Modi's first budget

The Budget Edition carried out on 1st March 2013, carried a sharp commentary by a man who was then one of India's many chief ministers. A little over a year later he became India's prime minister. In about a week from now his government will present its first budget.

Narendra Modi's 2013 budget commentary, even granting it was written from the perspective of a CM from the then national opposition party, offers interesting insights into how India's current PM thinks a good budget should look like.

Here's Modi 2013 analysed for clues to Modi 2014:

Find cash for infra: "Against the much-needed Rs 55 lakh crore for infrastructure development, the budget attempts to mobilise a meagre Rs 50,000 crore", Modi had observed in 2013, and built on this theme of neglect of big projects. Finding big money for big projects will define 2014 budget as a Modi budget like little else would.

Skill them young: "The UPA government has allocated a mere Rs 1,000 crore for skill development. Contrast that with the Rs 800 crore for just one state, Gujarat, has allocated for skill development". That 2013 observation by Modi, who also said even rich countries like the US do more to tackle skill shortage, played out throughout his 2013-14 poll campaign and is again a signature Modi theme. Modi wants even plain vanilla welfare scheme NREGA to be retooled into a skills programme. Smart ideas and substantial fiscal backing for skills development can be another Modi imprimatur on Budget 2014.

Feel federal: "States have been requesting the Centre to address the issue of deficit of trust ... ," Modi had written in the context of critiquing the 2013 budget for what he saw as being insufficiently federal in terms of resource allocation. Many PMs and FMs don't pay enough attention to federalism issues in Union budgets. But this PM, the first serving CM to get the country's top job, may have a different approach. GST rollout is critically dependent on statesand Modi has courted some CMs already. His 2014 budget may try and address that 'trust deficit'.

Avoid gimmicks: "The move to set up the world's first public sector women's bank is a mockery ...", Modi had written, rubbishing a proposal P Chidambaram had claimed was radical. Experts had disagreed with Chidambaram. And that Modi had decided to attack a 2013 budget proposal that had seemed politically correct indicates he may not want his 2014 budget to be critiqued for gimmicky and superficial ideas.

Don't play safe: "This budget is ... piecemeal ... UPA ...wants to play safe," Modi had written. His 2013 commentary had mocked UPA repeatedly for not thinking big. It's safe to assume Modi in 2014 would want to avoid being tagged as "playing safe". The 'I will change things' politics of his election victory doesn't allow that option.

No fiscal fudge: Modi wrote, while commenting on UPA's fiscal deficit targeting, that "without any clear measure to mop up tax revenues and increase (tax) collection efficiency", deficit targeting will lead to "cuts in development spending". Many experts said this, too. And they will say it about Modi's budget even more should it try a fiscal fudge. But Modi's 2013 commentary shows he knows the severe reputational costs of a fudge. Cutting deficits sharply but honestly will make Modi's 2014 budget stand out clearly from UPA's last few budgets.

Narendra Modi claims victory as India's new Prime minister

Eight months after the BJP(Bharatiya Janata Party) named him its prime ministerial candidate, Narendra Modi, 63, proved he was worth the opposition the party originally encountered over its decision. Mr Modi has delivered the BJP's best result ever, giving it more than the 272 seats it needs to form a government.  This is the first parliamentary majority by a single party since 1984.

India has won, good days are coming, Mr Modi said at a rally in Vadodara in his home state of Gujarat, where thousands chanted his name. In a clear message to those who have tagged him a polarising leader, he said, "Even if we've clear majority to run the government, it's our responsibility to take everyone along in running India."

Through his campaign, Mr Modi had vowed to reboot the economy and deliver efficient governance -he said today "development for all" would be his mission.

This afternoon, after it became clear that he was the indisputable champion of the election, Mr Modi, who has been governing Gujarat for 13 years, drove to his mother's house to seek her blessings, promptly tweeting a selfie of their meeting.

He has been elected to parliament from Vadodara and the holy city of Varanasi in Uttar Pradesh, which he is expected to choose as his constituency.

Modi has promised to unblock stalled investments in power, road and rail projects to revive economic growth that has fallen to a decade low of below 5 percent.
Here are Narendra Modi's 10 To-Do list as PM of India:

1) GOODS AND SERVICES TAX (GST): India's most ambitious indirect tax reform would replace existing state and federal levies with a uniform tax, boosting revenue collection while cutting business transaction costs. GST, which could boost India's economy by up to two percentage points, has so far faced resistance from various states, including those governed by the BJP who fear a loss of their fiscal powers. The BJP aims to address state concerns and implement GST in an "appropriate timeframe". The Congress party would back the reform in opposition, a senior party member told Reuters earlier this month. The reform needs broad backing because it requires a change in the constitution.

2) RESERVE BANK OF INDIA: A Reserve Bank of India panel in January proposed key changes including targeting consumer price inflation and making a committee responsible for monetary policy, and not the RBI governor alone. This would require changes to the RBI Act. The BJP top brass has not spoken widely on the issue, but it will likely be a tough sell for RBI Governor Raghuram Rajan. He has the backing of some global agencies like the International Monetary Fund. Modi's government may also look to eventually separate the debt management function from the RBI, on the gounds that debt management sometimes conflicts with the central bank's monetary policy stance.

3) PRIVATISATION: The new government is likely to focus on selling its holdings in state-run firms that could raise much-needed revenues to trim India's ballooning fiscal deficit and boost economic growth. The rising stock market helped New Delhi raise more than $3 billion via stake sales in the fiscal year to March 31 - but that was only a third of the government's original target. The outgoing government announced plans to raise 569 billion rupees ($9.62 billion) through asset sales in 2014/15. This could help achieve a lower fiscal deficit target of 4.1 percent of GDP. These estimates may be revised by the next government.

4) SUBSIDIES: Modi's government needs to examine how it subsidises basic commodities if it is to contain the fiscal deficit and avoid a ratings downgrade. Subsidies cost an estimated 2.2 percent of India's GDP in 2013-14. The BJP in its manifesto said it will seek greater fiscal discipline without compromising on the availability of funds for development.

5) LABOUR: The BJP wants to reform labour laws to boost job-intensive manufacturing and create as many as 10 million jobs a year for young Indians entering the workforce. Changing the law would be politically tricky, though, and Modi may seek to encourage competition between India's states to boost job creation.

6) DEFENCE: More foreign investment in defence would help India reduce imports, modernise weapons systems and speed up deliveries of hardware it needs for operations and training. India, the world's biggest arms importer, now allows 26 percent foreign ownership in defence, and proposals to exceed that limit are considered only for state-of-the-art technology. The BJP has said it would allow some greater foreign investment in defence industries.

7) INSURANCE: Attempts to raise the cap on foreign investment in India's $45 billion insurance sector, to 49 percent from 26 percent, have met resistance from employees at state-controlled insurers and their political backers. A BJP leader said in March the party had held talks with Congress to break the deadlock.

8) BANKING: The next government will need to help state-run lenders battling rising bad loans caused by the slowing economy, rising interest rates and project delays. Stressed loans in India - either bad and restructured - total $100 billion, or about 10 percent of all loans. Fitch Ratings expects that ratio to reach 14 percent by March 2015. Rising bad loans threaten to choke the gradual recovery in Asia's third-largest economy, according to the OECD. The interim budget in February set aside 112 billion rupees ($1.89 billion) to help the sector meet key capital ratios, but analysts say more money is needed.

9) POWER: A BJP-led government may implement the so-called Gujarat model of distributing electricity that has been widely praised for delivering reliable 24-hour power supplies in the state. Modi provided different power feeds to farmers, households, and companies instead of a uniform feed in his home state.

10) GAS PRICING: In January India notified the new gas pricing formula that could double the prices of locally produced gas from April 1, but the poll regulator stopped the government from raising the prices until the elections are over.Reliance Industries and its partners BP and Niko Resources last week issued a notice of arbitration to the government seeking implementation of higher gas prices. The BJP-led government may review the formula on the lines suggested by a senior party leader last year and announce the date of implementation of new prices