Advertisement
Tuesday, Dec 07, 2021
Outlook.com
N-Bomb

Now, Defuse

Can the budget meet the challenge of curbs

Now, Defuse
Now, Defuse
outlookindia.com
-0001-11-30T00:00:00+05:53

IN May 13, the day the US and Japan announced economic sanctions and aid freeze in reaction to the Indian nuclear tests, it was business as usual in India. Cola giants Coke and Pepsi were locked in a court battle on employee-poaching. Southern Electric Utilities, the largest power company in the US, was meeting central government bureaucrats to propose a 1,000-MW project in Orissa. In the US, Motorola announced a $3.5-million investment in a world-class design centre in Gurgaon outside Delhi. On receiving the news of the sweeping sanctions, which also implied that billions of dollars in aid from the World Bank, India’s largest patron, might be threatened, New Delhi arched its eyebrows just a little.

Even as protests and aid cutoff threats are pouring in from other nations, the corridors of the government are cool. US National Security Advisor Sandy Berger told reporters "it was a fairly expensive decision for India", but India declared that economic sanctions announced so far would not have any far-reaching impact, at least nothing that cannot be tackled. The budget is being tailored to factor in the financial flows that may dry up, core sector projects are being cleared fast, fears of a run on the rupee have been ignored. Indian industry has shrugged off any long-term impact of the sanctions. Said CII president Rajesh Shah: "The normal course of business, foreign investment, trade and economic ties would continue as before." Added Amit Mitra, FICCI secretary-general: "Sanctions do not achieve anything. Anyway, those imposed by the US are only soft sanctions."

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Putin's India Visit: How The Modi-Putin Meet May Rekindle India-Russia Ties

Putin's India Visit: How The Modi-Putin Meet May Rekindle India-Russia Ties

The Modi-Putin meet was a concerted effort by India-Russia to tell the world that their strategic relationship is alive and kicking.

Nagaland Ambush: Not Just AFSPA, It’s Time To Do Away With Most Special Laws

Nagaland Ambush: Not Just AFSPA, It’s Time To Do Away With Most Special Laws

It may be time for India to uphold human dignity, take a hard look at some of its regressive laws like AFSPA which includes Special Laws that authorises detention without trial.

How To Regain Ashes? KP Has Few Tips For Root’s England

How To Regain Ashes? KP Has Few Tips For Root’s England

England’s Test record in Australia is abysmal – nine defeats in the last 10 matches. The Three Lions last won the Ashes in 2011.

How Nagaland Incident Flared Up And Why There Is A Call To Repeal AFSPA?

How Nagaland Incident Flared Up And Why There Is A Call To Repeal AFSPA?

The Nagaland incident has highlighted several flaws in the Armed Forces Special Powers Act (AFSPA). What went wrong? We explain.

Advertisement