CIVIL SNIPPETS

CJI violated procedure by hearing own case: SC lawyers- Krishnadas Rajagopal

#GS2 #Governance
A storm of public opinion is gathering against the manner in which a Bench led by Chief Justice of India
Ranjan Gogoi convened on April 20 and suo motu heard a case involving sexual harassment allegations
levelled against him by a former Supreme Court employee.

The Bench was convened at short notice after online news portals published allegations levelled by a
woman against the CJI.

The hearing sparked a public debate on whether the CJI was sitting as a “judge in his own cause” and
whether the Bench should have followed the principles of natural justice by giving her a fair chance to
be heard in the first place before passing remarks about her.

On Monday, the first working day after a tumultuous weekend, the Supreme Court Bar Association
(SCBA), a body of over 6,000 lawyers practising in the Supreme Court, said Saturday’s hearing was “in
violation of the procedure established by as well as the principles of natural justice.”

In an urgent meeting, the executive committee of the SCBA said a Full Court should take “all the
necessary steps” under the law in this issue.

The Supreme Court Advocates on Record Association (SCAORA) also expressed “deep reservations
against the procedural impropriety shown by the CJI in suo motu proceedings held on Saturday.”

“The allegations of the ex-employee have to be dealt with as per the procedure established by law. The
law must be applied in each and every case uniformly. The association said it “strongly disapproves the
manner in which the complaint was dealt with.

It urged for an inquiry and action into the woman’s complaint. She has already written to 22 Supreme
Court judges, detailing her allegations against the CJI.

https://www.thehindu.com/todays-paper/cji-violated-procedure-by-hearing-own-case-sc-
lawyers/article26916649.ece

U.S. ends waiver for India on Iran oil- Sriram Lakshman #GS2 #IR
The U.S. will not renew exemptions from its sanctions for importing oil from Iran, U.S. Secretary of State
Mike Pompeo announced. The exemptions were granted last November for a 180-day period for India
and seven other countries, and are due to expire on May 2.

Today we are announcing the United States will not issue any additional Significant Reduction
Exceptions [SREs] to existing importers of Iranian oil. The Trump Administration has taken Iran’s oil
exports to historic lows, and we are dramatically accelerating our pressure campaign in a calibrated way
that meets our national security objectives while maintaining well supplied global oil markets.

India, China and U.S. allies Japan, South Korea and Turkey will be the most impacted by the non-
renewal of waivers. The other three currently exempted countries — Italy, Greece and Taiwan — have
already reduced their imports to zero.

https://www.thehindu.com/todays-paper/us-ends-waiver-for-india-on-iran-oil/article26916653.ece

SC seeks replies from Centre, J&K on highway traffic ban #GS3 #Security
The Supreme Court on Monday sought responses from the Centre and Jammu and Kashmir on a plea
seeking quashing of an order which restricts civilian traffic two days a week on the national highway
(NH) stretch from Udhampur to Baramulla for movement of security forces.

The State government issued an order on April 3 in which it said that keeping in view the Pulwama
terror attack, another car bomb attack on security forces’ convoy at Banihal and movement of forces
during the Lok Sabha elections, no civilian traffic movement would be allowed on the NH stretch from
4 a.m. to 5 p.m. twice a week.

The order said there would be two “dedicated days every week” — Sunday and Wednesday — for
movement of security forces’ convoy when there would be no civilian traffic on the national highway
from Baramulla to Udhampur. The regulation of the vehicular movement on the NH would remain in
force till May 31.

The plea alleged that the “absurd and draconian decision” to restrict civilian traffic movement on the
270 km stretch on the highway directly affects lives of lakhs of people and “its indirect economic and
social impact is interminable.”

The impugned order means a virtual lockdown of the valley two days every week which will directly
affect 10,000 vehicles plying every hour, which include vehicles carrying patients, students, tourists,
businessmen and government officials,” the plea said, adding, “such an extreme step was not even
adopted during the Kargil War in 1999.”

It alleged that the prohibition on civilian traffic on the highway will have a “disastrous impact” on the
tourism industry and it was a “collective punishment” for the people of Kashmir.

https://www.thehindu.com/todays-paper/tp-national/sc-seeks-replies-from-centre-jk-on-highway-
traffic-ban/article26916532.ece

U.S. warns nations against trade with Iran- Sriram Lakshman #GS2 #IR
U.S. Secretary of State Mike Pompeo warned nations against interacting with Iran in violation of the
sanctions. “Any nation or entity interacting with Iran should do its diligence and err on the side of
caution. The risks are simply not going to be worth the benefits.
Earlier in April, India’s Ministry of External Affairs (MEA), had said that India and the U.S. were
“continually engaged” on the issue of India’s oil imports from Iran since sanctions kicked in last
November.

Oil exports from Iran hit a low of 1.0 to 1.0 million bpd in March this year – down from 2.5 million bpd
in April 2018. The U.S. announced that it would withdraw from the Joint Comprehensive Plan of
Action (JCPOA) or “ Iran deal” in May.

The U.S. has tried to allay fears that oil markets will be impacted following the decision to stop
exemptions. Organization of the Petroleum Exporting Countries (OPEC), the global oil cartel led by Saudi
Arabia, has been coordinating with Russia to cut oil supply since January. Saudi Arabia and others in
OPEC will more than make up the Oil Flow difference in our now Full Sanctions on Iranian Oil.

Key Points-

1. JCPOA
2. OPEC

https://www.thehindu.com/todays-paper/tp-national/us-warns-nations-against-trade-with-
iran/article26916557.ece

India issued alert to Sri Lanka on possible blasts- Meera Srinivasan #GS2 #IR
India had issued an alert to Sri Lanka in early April on possible bomb attacks at different spots in the
island, including the Indian High Commission building, sources in Colombo and New Delhi said, pointing
to a possible lapse on the part of Sri Lanka’s security agencies.

Health Minister Rajitha Senaratne told media-persons on Monday that “international” intelligence
agencies had “warned the government on April 4” regarding an impending attack in the country.

Further, a note from the DIG-Special Protection Range, bearing a seal of the date of April 11, and
addressed to security divisions of Ministers, diplomatic community, judges and former Presidents, had
warned recipients of “suicide attacks” being planned by “Mohammed Zaharan”, “Leader of the National
Thowheeth Jamaath”, the organisation that Sri Lankan authorities on Monday attributed the attacks to.

Referring to “several people” involved in the plot, the note said churches and the Indian High
Commission in Colombo were targets. The note, written in Sinhala, has been doing the rounds on social
media since Sunday’s blasts.

While initially a section of Sri Lankan authorities dismissed it as a fake document, it acquired more
credence on Monday, especially after Minister Senaratne named the same Islamist radical organisation,
little known even within the country.
Police have made nearly 30 arrests, but the person identified as the fringe outfit’s “leader” is said to be
absconding. While many have commended Sri Lankan police and other security agencies for their swift
response following the blasts, questions about their strategy to prevent the attacks remain unanswered.

What specific measures were taken between April 4 (when Sri Lanka received the intelligence on the
matter), April 11 (when the DIG’s note was sent) and April 21 (when the serial blasts occurred) remains
unclear to many, even within the government, including at the highest levels. Prime Minister Ranil
Wickremesinghe has said that the authorities were aware, but he and his Ministers were not informed.

Sri Lankan authorities were already tracking a few young men with suspected links with militant
organisations abroad following the arrests of at least two youth in December, who were accused of
damaging Buddha statues in Mawanella town, some 100 kms away from Colombo.

All the same, the responses to these different leads somehow did not add up to a timely operation to
avert the imminent risk.

“The intelligence apparatus was preoccupied with their heightened drive against narcotics, which has
become a major political issue. Moreover, they seem to have let their guard down around New Year
weekend [Sinhala and Tamil New Years were celebrated on April 14] when the whole island virtually
shuts down.

Government Ministers on Monday voiced serious concern over police “inaction” despite prior warning
and even sought the resignation of the IGP. Both the Law and Order and the Defence Ministries are with
President Maithripala Sirisena.

https://www.thehindu.com/todays-paper/tp-international/india-issued-alert-to-sri-lanka-on-possible-
blasts/article26916617.ece

NIA had intelligence on blasts- S. Vijay Kumar #GS3 #Security

The National Investigation Agency (NIA) had specific intelligence on Sunday’s serial blasts in Sri Lanka.
While examining an Islamic State (IS) sympathiser in Tamil Nadu six months ago, investigators got to
know of the terror plot and alerted the authorities concerned to pass on the information to Sri Lanka.

The officer also said that the Intelligence Bureau had sounded an alert on the likelihood of the terror
suspects escaping to India through the coasts of Tamil Nadu, Kerala and Puducherry. “We have been
asked to take necessary steps to thwart such intrusion by intensifying surveillance along the coast and
also by gearing up intelligence machinery. Coastal security agencies are working in close coordination
with the Indian Navy and Coast Guard to keep tabs on suspicious boats, suspects and strangers.

https://www.thehindu.com/todays-paper/tp-international/nia-had-intelligence-on-
blasts/article26916517.ece

RBI may have Rs. 3 lakh cr. excess capital : BofAML #GS3 #Economy
As the Bimal Jalan Committee prepares to submit its report on RBI’s economic capital framework, a
report by Bank of America Merrill Lynch (BofAML) has said the excess reserves that the central bank
holds could be up to Rs. 3 lakh crore or 1.5% of the GDP.

If the contingency reserves are halved to 3.25% from the current 6.5%, it would release Rs. 1.282 lakh
crore — still 50% higher than what central banks in the BRICS grouping have. Similarly, halving the yield
cover hike to 4.5% from the present 9% would release another Rs. 1.17 lakh crore.

BofAML further said capping the overall reserves at 20% from the present 25.5% will release Rs. 1.96
lakh crore. Using the excess capital for bank recapitalisation would be liquidity neutral and aid in making
rate cuts.

Key Points-

1. Bimal Jalan Committee

https://www.thehindu.com/todays-paper/tp-business/rbi-may-have-rs-3-lakh-cr-excess-capital-
bofaml/article26916481.ece

Digital infra to play key role in reviving economy’ #GS3 #Economy

The Aadhaar has worked as a digital infrastructure backbone helping governments in India to roll out
several real-time initiatives and service delivery capabilities for citizens and enterprises alike.

The Aadhaar, serving as an electronic know-your-customer (KYC) tool, has triggered massive customer
additions in the country’s financial and telecom sectors and similar explosive growth is expected across
other segments as well in the years to come.

Once data becomes the basis for decision-making across businesses, the country will witness dramatic
transformation and growth. Data, globally, is becoming central to individual citizens and governments.
We have witnessed dramatic transformation through Aadhaar-based e-KYC and online payments and
our existing digital infrastructure will play a key role in reviving the economy. [Aadhaar is] now critical
for you to open a bank account, to get a mobile connection or to buy a mutual fund.

Earlier, KYC used to be a cumbersome process, and therefore, opening a bank account or getting a new
phone connection used to be a tough affair. Also, with digital signature becoming a reality, identity
verification and other credential checks are now being done real-time and as a result, banks are able to
sanction loans in hours.”

The country already has over a billion bank accounts that are Aadhaar number linked. It makes
transferring of funds easier and the country conducts over four billions financial transactions. In
addition, Aadhaar based e-KYC made LPG subsidies, MNREGA payments, farmer subsidies and pensions
corruption-free and seamless. For all these, the underlying technology is Aadhaar.
On the benefits of technology for business, he said, the Goods and Services Tax has increased the
number of taxpayers. “GSTN is a great example of technology-led co-operative federalism.”

Mr. Nilekani said, Aadhaar e-KYC has been revolutionary in making life simpler for people and India now
has the infrastructure to deal with direct benefits transfers (DBT) in any segment, adding that DBT can
revive the power sector.

https://www.thehindu.com/todays-paper/tp-business/digital-infra-to-play-key-role-in-reviving-
economy/article26916493.ece

Biopharma and agro-economy set for boom in India: Shaw #GS3 #Economy
Participants in these segments, including farmers, are increasingly realising the value of data they are
generating on a daily basis. Intelligent data mining will lead to knowledge creation, product innovations,
accurate diagnostics and cost-effective healthcare, addressing a session on “India’s Growing Bio
Economy.”

Ms. Shaw said the country’s bio-economy sector was set to touch $200 billion by 2030.

Pointing out that in India, the investment in research and development was less than 1% of GDP, she
said, “We must invest at least 2% of our GDP in science, technology (S&T) and research. We have to up
our investments in basic research, applied research and translational research.

America has increased is focus on S&T, Brazil spends 2.5% of its GDP and Russia spends upwards of 2%.
Ms. Shaw said that India’s education system must embrace research culture and leverage the powerful
tool of scientists and engineers available in the country.

Gene sequencing cost has come down substantially, which can be utilised for diagnosis of critical disease
and in other areas — Indian companies can hugely benefit from gene sequencing. Farmers generate a
large amount of data and this opens up opportunity for data analytics and big data firms in the country.
Interestingly, India has 15 agro-climatic zones.

https://www.thehindu.com/todays-paper/tp-business/biopharma-and-agro-economy-set-for-boom-in-
india-shaw/article26916491.ece

Earth Day: saving the planet may cost $100 billion per year #GS3 #Environment

Saving the diversity and abundance of life on the earth may cost $100 billion a year, say scientists who
have proposed a policy to prevent another mass extinction event on the planet.

There have been five mass extinctions in the history of the earth. Scientists now estimate that society
must urgently come to grips this coming decade to stop the very first human-made biodiversity
catastrophe.
Mr. Asner is one of 19 international authors with a bold new science policy proposal to reverse the tide,
called “A Global Deal for Nature” (GDN). The policy’s mission is to save the diversity and abundance of
life on the earth — for the price tag of $100 billion a year.

Societal investment in the GDN plan would, for the first time, integrate and implement climate and
nature deals on a global scale to avoid human upheaval and biodiversity loss.

While the 2015 Paris Climate Agreement was the first major accord to take global action toward climate
change policies, the international team of GDN scientists believe a similar companion pact is desperately
needed to implement the very first global nature conservation plan to meet these challenges.

The Global Deal for Nature is a time-bound, science-based plan to save the diversity and abundance of
life on Earth. Achieving the milestones and targets of the Global Deal for Nature is the best gift we can
offer to future generations—an environmental reset, a pathway to an Eden 2.0,

The study, published in Science Advances , outlines the guiding principles, milestones and targets
needed to avoid the extinction threats of a two degrees Celsius warming forecast.

The three overarching goals of the GDN are to protect biodiversity by conserving at least 30% of the
earth’s surface by 2030; mitigate climate change by conserving the earth’s natural carbon storehouses;
and reduce major threats. The essence of implementing the plan is to set up protected areas of land as
natural ecosystems.

https://www.thehindu.com/todays-paper/tp-life/earth-day-saving-the-planet-may-cost-100-billion-per-
year/article26916477.ece

Scientists use EU satellite to spot Aegean sea litter- AGENCE FRANCE PRESSE
#GS3 #SnT
In an experiment to detect marine litter using satellites, a team of Greek University students deposited
wall-sized PVC frames on the surface of Aegean sea.

The team gathered some 2,000 plastic bottles and lashed them to the frames. Other targets were
crafted with plastic bags, as these are even harder to spot in the water and usually constitute the
deadliest threat to Aegean marine life such as dolphins, turtles and seals.

In theory, then, the satellites should be able to detect the floating rafts of plastic the team pushed out to
sea. The results of the experiment — “Satellite Testing and Drone Mapping for Marine Plastics on the
Aegean Sea” — will be presented at a European Space Agency symposium in Milan in May. Marine litter
is a global problem that affects all the oceans of the world.

Key Points-
 1. Aegean Sea

https://www.thehindu.com/todays-paper/tp-life/scientists-use-eu-satellite-to-spot-aegean-sea-
litter/article26916465.ece

Foreign Secy shared all evidence on Masood Azhar with China #GS2 #IR
India has shared with China “all evidence” of terrorist activities by Jaish-e-Mohammad and its leader
Masood Azhar, the Ministry of External Affairs said Monday after Foreign Secretary Vijay Gokhale met
Chinese State Councillor and Foreign minister Wang Yi in Beijing.

Asked if listing Azhar under the UN 1267 Committee was raised during Gokhale’s visit to Beijing, MEA
spokesperson Raveesh Kumar said, “We have shared with China all evidences of terrorist activities of
Jaish-e-Mohammad and its leader Masood Azhar.

It is now for the 1267 Sanctions Committee and other authorised bodies of the UN to take a decision on
the listing of Masood Azhar. India will continue to pursue all available avenues to ensure that terrorist
leaders who are involved in heinous attacks on our citizens are brought to justice.”

Responding to a question on whether Azhar’s listing or India’s participation in the Belt and Road Forum
in Beijing later this week was Chinese Foreign Ministry spokesperson Geng Shuang said, “As to the
specific issues, I already said that the two sides have far more common interests than conflicts. I hope
the two sides will step up coordination and cooperation, and sustain the sound momentum in bilateral
relations. China is ready and would like to work together with India to this end.”

While the Indian statement reflected Delhi’s diplomatic outreach to Beijing as the US, UK and France
have moved a resolution for discussions at the UN Security Council for Azhar’s listing and a public vote,
Beijing’s comments did not reflect any change in its position.

China Monday said that common interests “far outweigh” the differences between China and India, and
that the two sides should stand in solidarity, and sustain the “positive momentum of sound and steady
bilateral relationship.” At the meeting between Wang and Gokhale, India said that the two countries
should be sensitive to each other’s concerns.

Gokhale, referring to the meeting between Prime Minister Narendra Modi and Chinese President Xi
Jinping last year in Wuhan, said: “As you said we will work together with the Chinese side to deepen
understanding to strengthen trust to implement the decisions that were taken by leaders and to do it in
a manner in which we are sensitive to each other’s concerns.”

India, however, will not participate in the BRF scheduled later this week, because of concerns over
territorial integrity in relation to the China-Pakistan Economic Corridor (CPEC).

According to state news agency Xinhua, following Monday’s meeting, Wang said: “As two major
neighbours, emerging economies representatives and strategic cooperative partners, China and India
should continue to strengthen strategic communication, enhance political mutual trust, and maintain
close coordination on international and regional affairs.”

Gokhale is reported to have said that India is willing to maintain high-level exchanges with China,
enhance mutual understanding, accommodate each other’s concerns and promote greater development
of India-China relations. “My colleague (Chinese Vice Minister) Kong Xuanyou and I are following on
efforts to see that to implement many of the understandings reached at that (Wuhan) meeting.

https://indianexpress.com/article/india/foreign-secy-shared-all-evidence-on-masood-azhar-with-china-
mea-5689418/

The prime suspects behind Sri Lanka bomb blasts on Easter Sunday #GS2 #IR
#GS3 #Security
Who are the National Thowheeth Jama’ath, the group suspected to have carried out the coordinated
terrorist attacks in Sri Lanka on Easter?

Not much is known about the NTJ, but it has been on the radar of Sri Lanka’s police since about 2017,
when the Sinhalese Buddhist fundamentalist group Bodu Bala Sena — which was formed in 2012 but
had appeared to lose steam after the 2015 election defeat of President Mahinda Rajapakse — got
second wind and heightened its anti-Muslim campaign. The NTJ, believed to be an extremely radical
group, is said to be a breakaway faction of the Sri Lanka Thowheeth Jama’ath.

On December 26, 2018, some statues of the Buddha in Mawanella in the Kegalle district of central Sri
Lanka were vandalised by men on motorcycles carrying hammers and other instruments. Prime Minister
Ranil Wickremesinghe pledged to bring the culprits to book, and the police focussed on the NTJ as the
main suspect and arrested seven people.

While searching for two other suspects, police stumbled upon a huge cache of explosives and
detonators buried in an 80-acre coconut estate in Wanathawilluwa, Puttalam district, north of Colombo.
Some 75 kg of ammonium nitrate and potassium chlorate, and six 20-litre cans of nitric acid were dug
up, Sri Lanka’s Sunday Times reported.

Stashed in a warehouse in the estate were found a shotgun, an air rifle, two tents, religious publications,
and dry rations. Four men were arrested, who police said were affiliated with a “radicalised local group
of Muslims”.

But none of this foretold the sophistication of the Easter attacks. The Liberation Tigers of Tamil Eelam
had passed through a learning curve from crude bank robberies and targeted shootings to more
sophisticated kinds of terrorism, including inventing the human bomb.

But the NTJ, if they indeed carried out Sunday’s attacks, appear to have gone from being motorcycle-
borne vandals to A-list fidayeen attackers. This is a surprise — even though Cabinet Minister Rajitha
Senaratne said the NTJ had received help from an unnamed “international” terror group.
Thowheeth means the oneness of God, which is the central theme of Islam. In this, Towheeth groups are
ideologically similar to the ISIS which has its origins in the Jama’at al-Tawhid wal-Jihad, a group that later
became part of al-Qaeda.

In 2016, the Sri Lankan government told Parliament that 32 youth from well-to-do families had left the
country to join the ISIS. In recent years, that number is said to have increased to further. The specific
number is uncertain.

So, does Sri Lanka have an Islamist jihadist problem that has not been widely recognised so far? Is
there a broader Muslim-Buddhist conflict in the country?

Sri Lanka’s Muslims make up less than 10% of the country’s 21 million people. An overwhelming 70% of
the population is Sinhala-Buddhist. Christians are under 7%, and they are both Tamil and Sinhalese.
Hindus are 12.6%, and are almost entirely Tamil.

While there were no instances of Sri Lankan jihadist groups, or individual Sri Lankan jihadists going to
join the war in Bosnia or Afghanistan, there were concerns from time to time in the 1990s that
Wahhabism was gaining ground in the country, especially in the Batticaloa and Ampara districts of
eastern Sri Lanka, which have a significant Muslim population. In the entire Eastern district, which
includes Trincomalee, Muslims are one-third of the population — Tamils and Sinhalese too, are a third
each in the Eastern province.

Sri Lankan Muslims speak Tamil, and while they aligned themselves politically with the Tigers at one
time, there was a break in relations in 1990, when the LTTE suspected that the Indian Army (which was
present in Sri Lanka from 1987 to 1990 as the Indian Peace Keeping Force) had recruited members of
the Muslim community as spies, and that they continued to work for the Sri Lankan armed forces.

Overnight, the Tigers evicted some 90,000 Muslims from Jaffna. Many of them settled in refugee camps
in Puttalam district, where many live to this day.

A separate Muslim political consciousness arose through the Sri Lanka Muslim Congress in that decade.
The SLMC articulated a demand for separate Muslim enclaves within a Tamil North-East, but the Tamil
political class, pushing for political autonomy in the North-East, did not encourage it. For its part, the
LTTE carried out violent attacks on Muslims in Batticaloa’s Kattankudy, killing hundreds in two mosque
attacks in the early 1990s.

Soon afterward, new mosques came up in the area that were said to be funded from Saudi Arabia.
Arabic words entered the Tamil dialect spoken by Muslims in the East.

However, groups like the Sri Lanka Towheeth Jama’ath and NTJ did not exist until a few years ago.Some
observers see causality between the emergence of these groups and the rise of Buddhist
fundamentalism in the militaristic atmosphere and triumphalism of post-war Sri Lanka. The unresolved
post-war issues have added to the sharpening of Buddhist majoritarian consciousness.
It was almost as if Buddhist extremists were looking for another “enemy” to take the place of Tamils,
who they believed had been subjugated entirely with the defeat of the LTTE. This has led to at least one
serious anti-Muslim incident every year since 2013.

Last year, serious clashes erupted in March, fuelled by rumours on social media. That was the first time
Sri Lanka reimposed Emergency regulations after lifting them at the end of the war

If there is a Muslim-Buddhist problem in the country, why was the Christian minority targeted? What
signals were being sent, and to whom?

This is where finding causality in local motives for Sunday’s attacks comes up short. The attack on
Christians, who are an even smaller minority than Muslims, does not square up as a fallout of the
Buddhist-Muslim tensions.

Targeting churches on Easter seemed designed to attract maximum international attention, as was the
targeting of five-star hotels, frequented by high-end international tourists, diplomats, professionals and
wealthy Sri Lankans. All the hotels were hosting a customary and popular Easter brunch at the time of
the attacks.

How does Islamist extremism in Sri Lanka sit with similar impulses in the wider Indian Ocean region,
specifically the Maldives?

The Maldives has been a country of greater concern than Sri Lanka where Islamist radicalism is
concerned. More than 200 Maldivian youth were believed to have joined the ISIS by the end of
December 2015.

Present estimates are not available, but the numbers have gone up. Considering that Maldives has a
population of only 4,50,000, this is a huge number. The atolls have long been a playground for preachers
of radical Islam, encouraged under the Gayoom dictatorship.

What are the takeaways for India from this situation with regard to jihadist extremism in the Indian
Ocean region?

Domestically, India has been sanguine about its own multicultural success story, which has prevented
radical Islamist ideologies from taking root. There have been fewer than 100 ISIS recruits from India. But
the rise of militant Hindutva, the attacks on Muslims, and the gradual political marginalisation of the
Indian Muslim population have been flagged by experts as potential flashpoints.

Strategically, the destabilisation, for whatever reason, of Sri Lanka, a country that India counts as a close
friend and ally despite the problems arising from competing Chinese interests, undermines India’s
interests in the Indian Ocean region.

Is there any link between the blasts and the political instability in Sri Lanka?

Prime Minister Ranil Wickremesinghe has said “prior information” existed about terrorist attacks being
imminent in the country, but he was not kept in the loop. It is clear that the dysfunction at the highest
levels of government, between the Prime Minister and President Maithripala Sirisena, prevented a
studied and serious response to the intelligence inputs that Sri Lanka received from India, on the basis of
which the Sri Lanka police sent out a nationwide alert warning of attacks on the Indian High Commission
and churches across the country.

https://indianexpress.com/article/explained/sri-lanka-bomb-blasts-national-thowheeth-jamaath-
5689272/

Impact of crude oil price rise on the Indian rupee #GS3 #Economy
Brent crude rose to an intra-day high of $74.31 per barrel on Monday, and was trading at $73.7 per
barrel, up $1.7 or 2.4%, from its previous closing. The Indian rupee fell 31 paise against the dollar, and
was trading at $69.67.

A rise in the price of crude oil hurts the economy because crude accounts for a significant portion of
India’s overall imports. If crude rises further, it will not only impact the stability of the rupee and the rise
in stock markets, but may also produce an inflationary effect.

What is leading to the rise in the price of Brent crude?

The spike in prices on Monday followed reports that the United States will stop granting sanction
waivers to any country importing Iranian crude or condensate beginning May 2, 2019. While the spike in
prices was on account of this report, crude oil prices have been rising steadily since March on concerns
over supply from OPEC, and the US sanctions on Venezuela.

Over the last two months, Brent crude prices have risen 14.7% from a level of $64.76 per barrel on
February 25 to $74.31 on Monday. Monday’s prices were the highest in nearly six months. Brent crude
closed at $75.47 per barrel on October 31, 2018.

What is the impact on the rupee? Could it weaken further?

Inflow of funds from foreign portfolio investors led to a strong recovery in the rupee between January
and March 2019. However, the rupee has been rising against the dollar since the reversal in the trend of
crude prices.

If Brent continues to rise, the rupee is likely to face additional pressure. While expectations of
weakening global growth may temper its rise, the news of the end of waivers for the Iran sanctions has
spooked the market.

Crude has traditionally been a big determinant of the way the rupee moves. In October 2018, the rupee
fell to an all-time low of 74.34 against the dollar in line with rising oil prices. Brent crude had hit a level
of $86 per barrel in October, putting pressure on the rupee and on India’s current account deficit.

However, as crude prices declined over the following months to levels of around $52 per barrel by the
end of December 2018, it offered relief to both the rupee and the economy.
A weak rupee hurts the country on account of the higher import bill and current account deficit, and
also tends to be inflationary. The Reserve Bank of India will be watching the movement of crude and
domestic inflation before going for another rate cut this year.

Does the US decision on Iran hurt India’s imports?

In the 10-month period between April 2018 and January 2019, India imported $97 billion worth of
petroleum oil and oil obtained from bituminous minerals crude. Almost 11.2 per cent of petroleum oil,
worth $10.9 billion, were imported from Iran.

The US decision to end waivers for countries importing crude from Iran beginning May 2 may hurt
India’s interests, as it will have to look for alternative sources of oil. The US sanctions on Venezuela are
already restrictive for India.

From April 2018 to January 2019, India imported almost 6.4% of its requirement from Venezuela. If both
countries are now pushed out of India’s equation, almost 17.6% of its total imports will be impacted.
Also, if the total supplies from these two big oil exporters is kept out of the market, it will lead to a
supply crunch, and likely increase in overall crude oil prices.

What are the other sources of crude oil for India?

While Iraq is the biggest exporter, Saudi Arabia is a close second, and both of them account for 38% of
India’s total petroleum imports. UAE and Nigeria together account for 16.7%. However, the biggest
change has been the entry of the US as a major player.

While it did not figure in the list of top 10 petroleum exporters for India in 2017-18, in the 10 months of
FY’19, the US stood at number 9 with an over 3% share of India’s petroleum imports.

https://indianexpress.com/article/explained/explained-impact-of-crude-oil-price-rise-on-indian-rupee-
5689020/

February 2019 Hindu & IE Editorial Compilation & Imp. Article for quoting as example

https://imojo.in/6p4fix

January 2019 Hindu & IE Editorial Compilation & Imp. Article for quoting as example

https://imojo.in/bk5ii9

December 2018 Hindu & IE Editorial Compilation & Imp. Article for quoting as example

https://imojo.in/bbt81f
November 2018 Hindu & IE Editorial Compilation & Imp. Article for quoting as example

https://imojo.in/4n9ppz

October 2018 Hindu & IE Editorial Compilation & Imp. Article for quoting as example

https://imojo.in/7x579g

September 2018 Hindu & IE Editorial Compilation & Imp. Article for quoting as example

https://imojo.in/f5b9zp

August 2018 Hindu & IE Editorial Compilation & Imp. Article for quoting as example

http://imojo.in/1umgdv

July 2018 Hindu & IE Editorial Compilation & Imp. Article for quoting as example

http://imojo.in/6776u7

June 2018 Hindu & IE Editorial Compilation & Imp. Article for quoting as example

http://imojo.in/eyqimf

May 2018 Hindu & IE Editorial Compilation & Imp. Article for quoting as example

http://imojo.in/45y725

April 2018 Hindu & IE Editorial Compilation & Imp. Article for quoting as example

http://imojo.in/a91poc

March 2018 Hindu & IE Editorial Compilation & Imp. Article for quoting as example

http://imojo.in/5nignq