Blog@GraceJunction

Tuesday, July 22, 2008, 8:00pm

The Manmohan Singh led UPA government finally did win the trust vote by a margin of 19 votes amidst the mudslinging and all the hoopla in House of the People (Lok Sabha). The victory they said was sure. They described it as a ‘convincing win’. Meanwhile the battered opposition almost predictably termed it as ‘corrupt victory’.

Over the past few days, the nation woke up to numerous stories about MPs switching loyalty for payoffs ranging from rupees 3 to 25 crores. Charges of horsetrading were doing the rounds since the past three days but the countrymen did not expect MPs to suddenly start disgorging wads of currency on the table of the House, allegedly given to them as a ‘bribe’ for abstaining from voting in the confidence motion moved by UPA government. The MPs also claim to have videographic evidence (Rajdeep Sardesai trying to earn some brownie points over Tehelka and Pranoy Roy’s NDTV, with a stunning sting operation) of the whole bribery deal. India was stunned (perhaps more by the flashing of the wads, in the sanctum sanctorum of world’s largest democracy, than by the allegation per se). This cash-on-table was the first for the Lok Sabha! (more…)

The Manmohan Singh government seeks a trust vote in the Lok Sabha today and the political drama in India has managed to attract widespread attention worldwide, as it will decide the fate of the Indo-US civil nuclear deal. Under this bilateral pact, the United States will provide India access to civilian nuclear technology and fuel in exchange for IAEA-safeguards on India’s civilian nuclear reactors.

A lot of time and energy was spent behind the passage of the Hyde Act in 2006. The leading opposition party BJP which laid the groundwork for the deal criticized the deal and does not want the government to accept the deal without a vote in the legislature. The Left too had withdrawn its support. The nuke deal has been scripted by Manmohan Singh but the political risk is almost that of Mrs. Gandhi. The possible UPA meltdown will be a hard blow for the party to bear. The loss could be terrible and a win might have a few downsides. (more…)

It has happened after 40 months. Inflation has touched the 7% mark. Minerals and staples like vegetables, rice, wheat and edible oils, all have taken a northward climb.

The reason cited is that the demand for staples and vegetables has increased and the supply has not been as forthcoming as expected. The agricultural output has reduced, due to not upto the mark monsoons in certain sectors and bad throughput in other areas. Climatic changes have also effected yields.

The demand has increased manifold!

So naturally inflationary pressures are natural outcome of such a situation. A supply shortage does fuel inflation. (more…)