INDIA'S GDP GROWTH SUFFERS WORST-EVER CRASH, GOVT SAYS 'ALONG EXPECTED

LINES'

The Government on Monday put a brave face on the worst-ever crash in the

country's GDP for the first quarter of 2020-21, saying that it was along

expected lines given the higher stringency with which the lockdown was

imposed in the country.

Pointing out that this is the worst global recession since 1870, Chief

Economic Advisor (CEA) K V Subramanian said, "what we were going through is

a one-and-a-half century event" but took solace from the improvements in

some economic fundamentals in August.

The GDP for April to June this year fell by a massive 23.9 per cent as

compared to the same period last year with a 3.5 per cent growth in the

agriculture sector being the saving grace.

The index of eight core industries fell by 20.5 per cent for April to June

2019 as compared to the same period last year. The group of eight-coal,

crude oil, natural gas, refinery products, fertilisers, steel, cement and

electricity comprise 40.27 per cent of the index of industrial production.

The fiscal deficit was also going out of hand. In April-June, it was at Rs

8.21 lakh crore because the total receipts were only 2.32 lakh crore whereas

the expenditure was Rs 10.54 lakh crore. Last year fiscal deficit for the

same period was Rs 5.47 lakh crore.

Chief Economic Advisor (CEA) K V Subramanian sought to give an upbeat

scenario by claiming that India was beginning to experience a "V" shaped

recovery. For instance, core sector growth had fallen to 38 per cent in

April but the decline was progressively reduced to 22 per cent in May, 13

per cent in June and 9.6 per cent in July. "Output is clearly showing a V

shaped recovery," he said.

The CEA also pointed out that railway freight in July was at 95 per cent of

July 2019 levels and it was 6 per cent higher in the first 26 days of August

this year as compared to the same period last year. Similarly, e-way bills,

which capture inter-state trade, in August have nearly climbed to last

August's levels.

Subramanian claimed that India had performed better than the UK, a

similar-sized economy, despite a more stringent lockdown. The contraction in

the UK economy was 22 per cent despite the fact that its lockdown was 15 per

cent less stringent than that imposed by India. "Given the higher intensity

of lockdown, the GDP results are along expected lines," he observed.

CHINA VIOLATES LADAKH TRUCE AGAIN AT LAC

Fresh tensions have erupted between India and China. This time at the South

Bank of Pangong Tso, a 135 km glacial melt lake, along the LAC in Ladakh.

The incident occurred on the night intervening August 29 and August 30, the

Ministry of Defence said on Monday morning. "The Peoples Liberation Army

carried out provocative military movements to change the status quo (at the

LAC). Indian troops pre-empted this activity on the Southern Bank of Pangong

Tso and undertook measures to strengthen our positions and thwart Chinese

intentions to unilaterally change facts on ground," read the MoD statement.

Brigade Commander-level Flag Meeting is in progress at Chushul along the LAC

to resolve the issues.

The Army has so far not responded to questions on injuries or any casualties

in the incident.

The Indian Army is committed to maintaining peace and tranquility through

dialogue, but is also equally determined to protect its territorial

integrity, said the MoD.

FORMER PRESIDENT PRANAB MUKHERJEE IS NO MORE

Former President and distinguished parliamentarian Pranab Mukherjee passed

away at the Army Research and Referral Hospital in New Delhi on Monday

evening after suffering septic shock in the morning during the course of his

lung infection treatment. Mukherjee was 84.

He had been admitted to the hospital on August 10 for a surgery of a large

brain clot. He was also found to be COVID-19 positive at admission to the

hospital.

Ever since the surgery, Mukherjee had been in deep coma and on ventilator

support with lung infection that was soon followed by renal complications.

His last rites will be held at Lodi Road crematorium in New Delhi at 2 pm

today.

The central government has announced seven-day state mourning.

Only last year Mukherjee was conferred the highest civilian honour of the

country, the Bharat Ratna, in recognition for his service as a long-term

parliamentarian who served in the Congress in various capacities including

as the party's chief crisis manager.

Mukherjee served in the Cabinets of late Indira Gandhi, PV Narasimha Rao and

most recently Manmohan Singh.

MONSOON SESSION TO START FROM SEPTEMBER 14

Parliament's monsoon session will begin from September 14, a notification

issued on Monday said.

The notification issued by the Lok Sabha Secretariat said President Ram Nath

Kovind has called the lower house to meet on Monday, September 14 at 9 am.

Rajya Sabha is expected to meet at a different time on the same day, as it

has been decided to stagger the sitting of the two houses due to the

COVID-19 guidelines.

The Cabinet Committee on Parliamentary Affairs had earlier recommended that

the monsoon session be held from September 14 to October 1. There will be in

total 18 consecutive sittings with no holiday or weekend break, according to

officials.

INTERNATIONAL AFFAIRS

======================

FIRST DIRECT FLIGHT BETWEEN ISRAEL, UAE LANDS IN ABU DHABI

In a historic step towards peace in the Middle East, the first commercial

direct flight between Israel and the UAE landed in Abu Dhabi on Monday after

both countries announced normalisation of relations.

Several top Trump administration officials were on board the plane,

escorting Israeli government officials from Tel Aviv to Abu Dhabi for talks

with their Emirati counterparts, as part of the White House-brokered plan.

The Boeing 737 was given permission to fly through Saudi Arabian airspace,

in a first for Israeli carrier El Al, its captain Tal Becker announced

shortly before take-off.

The flight would have taken seven hours if it had not been allowed to use

Saudi airspace, Becker said; instead it took just over three hours. Israel

and Saudi Arabia do not share diplomatic relations.

PENCE SAYS PART OF TRUMP GOVT'S SECOND TERM AGENDA IS MERIT-BASED

IMMIGRATION

US vice-president Mike Pence said on Monday that the Trump administration

was working to fix the country's broken immigration system "once and for

all" and the reforms would be based on a merit-based principle. "As the

president and I have spoken many times, part of that second term agenda is

going to be the kind of immigration reform that's built on the principle of

a merit based immigration system," he said at a virtual session hosted by

the US-India Strategic Partnership Forum.

"We want people to come to this country that are ready to participate and

ready to contribute as people from India have done and as people from the US

have done in India. So, I just want the rising generation in India and

Indian business leaders... to know that America is not only open for

business, but we look forward to growing the relationship between our two

countries for decades to come."

THE REST

========

LEADERS ACROSS PARTY LINES CONDOLE MUKHERJEE'S DEATH

President Ram Nath Kovind, Vice President Venkaiah Naidu, Prime Minister

Narendra Modi and leaders across the political spectrum on Monday condoled

the demise of former president Pranab Mukherjee, hailing him as a scholar

par excellence who served the nation with diligence.

Kovind described Mukherjee's demise as the passing of an era. "A colossus in

public life, he served Mother India with the spirit of a sage. The nation

mourns losing one of its worthiest sons. Condolences to his family, friends

and all citizens," he said.

Naidu said the country has lost an elder statesman in his death. "He rose

from humble beginnings to occupy the country's highest constitutional

position through hard work, discipline and dedication," he said.

Modi said Mukherjee has left an indelible mark on the development trajectory

of the nation. "A scholar par excellence, a towering statesman, he was

admired across the political spectrum and by all sections of society," Modi

said.

"During his political career that spanned decades, Shri Pranab Mukherjee

made long-lasting contributions in key economic and strategic ministries. He

was an outstanding Parliamentarian, always well-prepared, extremely

articulate as well as witty," he said.

"Pranab Da had been such an integral and prominent part of national life,

the Congress party and the central government for over five decades, it is

hard to imagine how we can do without his wisdom, experience, sage advice

and deep understanding of so many subjects," Sonia Gandhi said.

Former prime minister Manmohan Singh condoled Mukherjee's demise, saying,

"Our country has lost one of its greatest leaders of Independent India". "He

and I worked very closely in the Government of India and I depended on him a

great deal for his wisdom, vast knowledge and experience of public affairs,"

he said.

BJP, CONGRESS IN WAR OF WORDS AFTER LAC INCIDENT

Praising the Army, BJP spokesperson Sambit Patra attacked the Congress for

its "red eye" jibe against PM Narendra Modi, questioning why "the party is

always in tears" whenever the Indian Army does something brave.

"India has always had red eyes, but the Congress is always in tears. The

country is in safe hands today and people have faith in the Indian Army and

the government," he said in response to Congress' attack against the

Narendra Modi government, asking when the PM will show his "red eyes" to

China.

The BJP also accused the Gandhis and the Rajiv Gandhi Foundation (RGF) of

accepting donations from persons involved in fraudulent and anti-India

activities and indicted under PMLA like fugitive diamond merchant Mehul

Choksi, Islamist preacher Zakir Naik, Yes Bank's Rana Kapoor and Jignesh

Shah.

The Congress in turn dared the government to order an investigation against

the RGF if any wrongdoing was found and also to show the courage to disclose

which Chinese firms donated funds to PM CARES.

Congress leader Rahul Gandhi posted a video, alleging that the government

was deliberately attacking the informal sector and the recent lockdown was

one such calculated move.

He said India survived the 2008 recession due to a strong informal sector.

"Till the time India's informal sector is strong, no economic storm can

touch it. The BJP government has been attacking the informal sector over the

past six years. I am giving you three massive examples right now -

demonetisation, wrong GST and lockdown. Don't think the lockdown was

unplanned. Don't think it was done at the last minute. The aim of these

three decisions was to destroy our informal sector," he said.

Congress leader P Chidambaram termed the latest GDP numbers an "economic

tragedy", and said the "country was paying a heavy price" for the

"nonchalant and uncaring" attitude of the Modi government.

LAC CHILL, GDP FALL TAKE DOWN HEATED MARKETS

After breaching the 40,000 mark for the first time in six months, the

benchmark Sensex Monday crashed 1,382 points from the day's high to close at

38,628.29 as a fresh India-China flare-up was reported in Ladakh and worries

grew over the contraction in India's first quarter GDP. Implementation of

new margin norms from September 1 got added to this mix and led to a sharp

sell-off .

The Sensex fell 839 points or 2.13 per cent over Friday's closing and Nifty

at NSE fell 260 points or 2.23 per cent to close at 11,387. The fall was

across the market - mid and small-cap indices at BSE fell 3.8 per cent and

4.4 per cent respectively.

While concerns over the market's over-valuation have been raised by various

participants and even by RBI Governor Shaktikanta Das, many feel the markets

were waiting to correct and news from the LAC was the trigger.

"Markets have been in overvalued territory for some time now and have been

waiting for some reason to correct. I believe the China factor came as a

reason for the correction and for investors to book profits on Monday. Also,

anxiety has been there around GDP numbers," said CJ George, MD, Geojit

Financial Service.

SC FINES PRASHANT BHUSHAN RE 1 FOR CONTEMPT; WILL PAY, RESERVE RIGHT TO FILE

REVIEW PLEA: ACTIVIST-LAWYER

The Supreme Court on Monday ordered activist-lawyer Prashant Bhushan to pay

a fine of Re 1 by September 15 for contempt of court, failing which he will

be sent to jail for three months and debarred from practising before it for

three years.

A three-judge Bench headed by Justice Arun Mishra had earlier held Bhushan

guilty of contempt of court on August 14 for scandalising the Judiciary by

his tweets against CJI SA Bobde and four former CJI.

Hours later, Bhushan told reporters that he will "respectfully" pay the fine

as he has "the greatest respect for judiciary". Insisting that his tweets

were not intended to disrespect the Supreme Court or the judiciary, he said

he reserved his right to file a review petition.

Another contempt case initiated against Bhushan in 2009 for his statement

that half of the 16 former CJIs were "corrupt", had already been referred to

an appropriate Bench for considering the question of conflict between right

to free speech and suo motu contempt powers of court.

INTERNATIONAL FLIGHTS TO STAY SUSPENDED TILL SEPTEMBER 30

The DGCA today announced the extension of the ongoing suspension of

scheduled international passenger flights till September 30.

The aviation regulator, however, said, special international flights,

operating under the Vande Bharat Mission since May and those under bilateral

air bubble arrangements with other countries since July would continue to

operate as permitted. "However, international scheduled flights may be

allowed on selected routes by the competent authority on a case-to-case

basis," noted the DGCA order, adding that the scheduled international

passenger flight services would continue to remain suspended.

The DGCA order said the suspension did not affect the operation of

international all-cargo operations and flights specifically approved by the

DGCA. Domestic flights resumed on May 25 after a gap of two months and

currently the airlines are allowed to operate maximum 45% of their pre-Covid

domestic flights.

SUPREME COURT ISSUES GUIDELINES FOR PHYSICAL HEARINGS

The Supreme Court has issued a standard operating procedure (SOP) for

proposed physical hearing of the cases which will commence on an

experimental basis on the request of various lawyers' bodies. Physical

distancing will be the special focus.

The apex court has been holding hearings through videoconferencing since

March 25 due to the Covid-induced nationwide lockdown and even after the

restrictions were relaxed, it has decided to continue with the practice.

A seven-judge committee headed by Justice NV Ramana has earlier this month

after consideration of requests made by various Bar associations has

recommended to the Chief Justice of India S A Bobde to resume physical

hearing of the cases on an experimental basis while adhering to additional

safety norms.

However, no date has been mentioned in the SOPs, as from when the physical

hearing of cases in limited manner will commence.

MUMBAI: NO CARS, BIKES ETC IN BANDRA KURLA COMPLEX FROM OCTOBER 2

From October 2, Bandra Kurla Complex (BKC) will turn into a semi-pedestrian

zone during the daytime every Sunday, with only walkers, cyclists and

skateboarders allowed from 9 am to 4 pm. Motorists will be permitted in the

remaining hours.

An MMRDA official said during the lockdown, banks and other government

offices in BKC were open, but it was noticed that employees had taken to

cycling down or walking to their workplaces. "So, we decided to continue

with that. People can walk for one day in a week to help reduce pollution

caused by automobiles," the official said.

On Monday, MMRDA said it would lay cycle tracks in the area as it launched

an e-bike service in BKC to give last-mile connectivity from Bandra and

Kurla stations to those who come and go from BKC by train. "There are some

issues with the cycle track in BKC which will be resolved soon and the paver

blocks from the footpath will be removed and converted into concrete road

for e-bikers and cyclists," the official said.

MMRDA commissioner R A Rajeev said the e-bike service would be available at

every Metro station so that commuters don't have to wait for bus, auto or

taxi.

The service was launched with 30 e-bikes. Commuters can rent them at Kurla

or Bandra stations to cycle up to BKC for a flat fee of Rs 5 plus Rs 1.5 per

minute. Rajeev said, "When the Covid-19 situation gets normal we expect more

than six lakh people at BKC daily. Of them two lakh may use these bicycles,

which are eco-friendly and time-saving."

THREE KEY TELCOM DECISIONS LIKELY TODAY BY SC

The Supreme court is set to deliver decisions on three key issues on Tuesday

which could fundamentally change the country's telecom sweepstakes.

One, the SC will decide on the tenure for staggered payment of AGR dues that

telcos have to go for. Two, it will clarify whether or not Reliance Jio has

to pay the hefty AGR dues bill of Rcom, and Bharti Airtel, that of Aircel

and Videocon, because they are using their spectrum. And three, it will

direct banks on whether they can, as creditors, transfer spectrum, which is

a national asset, to a new buyer under IBC, without first taking cognizance

of the dues of the government.

The tenure of the AGR dues issue could well decide the future of Vodafone

Idea Ltd (VIL) and whether the country will continue to have three private

players or will it become a duopoly play of Reliance Jio and Bharti Airtel

will. And that will be decided by the SC when it pronounces its verdict on

what the tenure would be for paying the adjusted gross revenue (AGR) dues.

INDICATORS

Sensex 38,628 (-839), Nifty 11,387 (-260)

Nasdaq 11,775 (+80) Dow 28,430 (-224), S&P 3,500 (-8)

US$-Rs. 73.25 GBP-Rs. 97.77, Euro-Rs. 87.35, UAE Dhm-Rs.19.94, Can$-Rs.

56.08, Aus$- Rs. 53.97

GBP 0.74 /US$, Euro 0.83 /US$, Jap.Yen 105.78 /US$, Aus$ 1.35 /US$, Sing

1.35 /US$, Bang Taka 83.25 /US$, Can$ 1.30 /US$, Mal Ring 4.16 /US$,

Pak Re 165.50 /US$, Phil Peso 48.40 /US$, Russian Rouble 74.02 /US$, NZ$

1.48 /US$, Thai Baht 31.03 /US$, Ukraine Hryvnia 27.36 /US$, Norway NOK 8.75

/US$

Bitcoin - USD 11,645

Dollar Index 91.81 Brent Crude 45.74 BDI 1,488

Gold world Spot Price USD/aoz 1,986 India (Rs. per gm 24k/22k) 5,151 / 5,051

Silver (Rs. Per KG) 66,370

THOUGHT FOR THE DAY

Small minds are concerned with the extraordinary, great minds with the

ordinary. - Blaise Pascal

OFF TRACK

An elderly woman decided to have her portrait painted. She told the artist,

"Paint me with diamond earrings, a diamond necklace, emerald bracelets, a

ruby broach, and a gold Rolex."

"But you are not wearing any of those things," replied the artist.

"I know," she said. "It's in case I should die before my husband. I'm sure

he will remarry right away, and I want his new wife to go crazy looking for

the jewellery."