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RBI retains 5.25% Repo Rate, forecasts 6.7% economic growth in current financial year

RBI
Reserve Bank of India

Mumbai, Aug 5 (NVI): The Reserve Bank of India (RBI) kept the Repo Rate unchanged at 5.25 per cent as it announced the quarterly Monetary Policy (MPC) today and forecast that the country is expected to have the economic growth of 6.7 per cent in the current financial year 2026-27.

Announcing the policy decisions, RBI Governor Sanjay Malhotra said the headline inflation has shot up as per expectations as he referred to the high crude oil prices amid the ongoing Iran war.

However, FY27 retail inflation estimate has been reduced from 5.1 per cent earlier to 5 per cent.

The RBI had also retained the Standing Deposit Facility (SDF) rate at 5 per cent, while keeping the Marginal Standing Facility (MSF) rate and the bank rate unchanged at 5.5 per cent.

According to RBI forecast, the real GDP for current Financial Year 2026-27 would be 6.7 per cent, up from 6.6 per cent projected earlier.

“Growth, although resilient, is expected to be lower in this financial year. The outlook, however, is hazy because of the uncertainties regarding South’s global trade policy. There is a need for greater clarity to emerge, especially regarding inflation, its path and composition before taking any policy action,” he said.

“Realised inflation in the first quarter remained marginally lower than projections, reflecting the limited pass-through of cost pressures… Headline inflation is projected to increase, primarily due to supply-side pressures from food and fuel, while core inflation remains moderate and is expected to decline after peaking in Q3… Excluding precious metals, underlying inflation continues to remain benign and is in line with earlier projections,” he said.

On impact of the Iran war, the RBI Governor said, “The re-escalation of the (Iran) conflict since the first week of July has amplified volatility in energy prices. Early results of corporates for Q1 indicate healthy performance in the manufacturing sector… Private consumption continued to be driven by buoyant discretionary spending. Overall, the Indian economy performed better than expected in Q1.”

Regarding the ongoing Monsoon, he said, “The impact of El Nino on the temporal and spatial distribution of rainfall remains a major risk. Global oil prices have also remained highly volatile, with sharp two-way movements triggered by geopolitical developments, blurring the near-term inflation outlook… While generalised inflation pressures remain modest so far, the risk of second-round effects from higher food, fuel and other input costs translating into broader-based inflation persists.” (NVI)

PM Says Abrogation of Article 370 Opened New Chapter for J&K, Ladakh

PM Narendra Modi (File Pic)

New Delhi, Aug 5 (NVI): Prime Minister Narendra Modi on Wednesday said the abrogation of Article 370 and Article 35A on August 5, 2019, marked the beginning of a “decisive new chapter” for Jammu and Kashmir and Ladakh, asserting that the region has witnessed significant progress over the past seven years.

In a post on X, Modi said infrastructure has expanded and opportunities in sectors such as education, healthcare, entrepreneurship and sports have increased since the constitutional changes.

He said the full application of the Constitution has ensured that women and members of marginalised communities, who were deprived of several constitutional rights for decades, have been empowered.

The Prime Minister also noted that this year’s August 5 assumes added significance as the country is observing the 125th birth anniversary of Syama Prasad Mookerjee.

He said Mookerjee’s lifelong commitment to national unity continues to inspire generations and that his vision found “historic fulfilment” on August 5, 2019.

Reaffirming the Centre’s commitment to the region’s development, Modi said the government remains dedicated to the progress of Jammu and Kashmir and Ladakh and to ensuring that every citizen has the opportunity to dream big, succeed and contribute to building a developed India.(NVI)

Arms and Ammunition Recovered During Search Operation in J&K’s Poonch

Shivam Bakshi

Poonch, Aug. 5 (NVI): Security forces on Wednesday recovered a cache of arms and ammunition during a search operation in the Surankote sector of Jammu and Kashmir’s Poonch district, officials said.

The recovery was made from Bhoriwala Dhok, adjoining Hari village, during a joint search operation conducted by the Special Operations Group (SOG) of Jammu and Kashmir Police and the Army’s 37 Rashtriya Rifles.

The seized ammunition included 117 rounds of AK-47 ammunition, 17 rounds of 9 mm pistol ammunition and two AK-47 magazines, the officials said.

They said the operation was continuing in the area and further details were awaited.(NVI)

45 Shells Recovered During Search Operation in Kashmir

Srinagar, Aug 5 (NVI): Security forces on Wednesday recovered 45 shells during a joint search operation in the Sheer Colony area of Sopore in north Kashmir’s Baramulla district, officials said.

The shells were recovered during a cordon and search operation launched by security forces in the area, the officials said.

According to the officials, preliminary assessment suggests the shells appear to have been found in scrap material.

The recovered shells have been taken into custody for examination, while further investigations are underway to ascertain their origin and other details, they added.(NVI)

Suspected Movement Triggers Search Operation in J&K’s Akhnoor

File Photo

Shivam Bakshi

Jammu, Aug 5 (NVI): Security forces launched a search operation in the Akhnoor sector of Jammu and Kashmir on Wednesday after a villager reported spotting a suspected individual in the Sunail panchayat area, officials said.

They said the Army and police jointly cordoned off the area and began a search operation following the information.

Security arrangements have also been strengthened in and around the area as a precaution, while the search operation was continuing when the last reports came in, officials added.—(NVI)

Amarnath Yatra Convoys Suspended as Precaution Ahead of August 5

Holy Cave Shri Amarnath Ji

Jammu, Aug 5 (NVI): The movement of Shri Amarnath Yatra convoys remained suspended on Wednesday as a precautionary security measure amid heightened security arrangements on the anniversary of the abrogation of Article 370, officials said.

According to officials, no fresh convoy of pilgrims was allowed to proceed from Jammu to the Baltal base camp, while no return convoy was permitted to leave Baltal for Jammu during the day.

However, pilgrims who had already reached the Baltal base camp were allowed to continue their journey to the holy cave shrine for darshan as per the scheduled arrangements.

Officials said the suspension of convoy movement was a temporary preventive measure as part of enhanced security arrangements.

The pilgrimage, they added, continues in a regulated manner, with only the movement of fresh and return convoys being restricted for the day.—(NVI)

Article 370 Revocation: Kashmir’s Gain is Pakistan’s Pain

People of Kashmir proudly carrying Indian Flag

Column

By Ajay Kaul 

Seven years back, when Article 370 was revoked from Jammu and Kashmir, Pakistan cried a lot as it was deeply pained.

Seven years later, Pakistan is in deep pain again, albeit for a different reason.

In 2019, it was troubled because a new promising chapter was being written in the history of Jammu and Kashmir on August 5 due to revocation of Article 370 of the Indian Constitution, which granted the state a status different from other states in the Union of India.

Today, Pakistan is troubled because the parts of Jammu and Kashmir under its illegal occupation are witnessing an uprising against the oppression committed by Islamabad for the last 78 years.

The people of Pakistan-occupied Jammu and Kashmir (POJK), occupied by it since 1947, have finally woken up and are keen to liberate themselves from the oppressive rule of the Pakistani regime.

For the last two months, POJK has been witnessing a relentless mass agitation, with lakhs of people continuously on the streets all over the region in total defiance of the Pakistani regime despite the extreme forms of barbarity unleashed on them by the occupying forces.

With each passing day, anger among the public is mounting as Pakistani forces kill and injure more and more people in occupied Jammu and Kashmir.

Rough estimates say that at least 100 people have been killed and over 500 injured in repeated firing and shelling by the Pakistani forces in their unsuccessful attempts to crush the agitation.

However, the actual death toll and injury figure is believed to be much higher since the Pakistani forces have been ensuring disappearance of bodies and injured people.

The agitation, which began for basic rights and against the political frauds committed by the Pakistani regime in the occupied region, has now turned into a full-fledged rebellion, with locals demanding Pakistan leave the territories.

Peace in Kashmir Valley

Meanwhile, India’s Kashmir, for whose destruction Pakistan spent billions of dollars for decades, is peaceful and progressing.

The people of Kashmir on this side of the Line of Control (LoC) are living life as they wish to. They move freely wherever and whenever they want to. Children regularly attend schools and colleges. Businesses are going on and new projects of development are being executed.

Even at nights, people enjoy outings with families and friends on the banks of the scenic Dal Lake which are dotted with fast food joints and ice cream vendors.

Life is as normal as anywhere in the world, without any disruptions created till years back by Pakistan-sponsored proxies.

There is no fear of sudden ‘hartal’ (shutdown), or stone-pelting or getting caught in cross-firing between terrorists and security forces.

In real terms, the people of Kashmir have got Independence and they feel and live it, every day.

While it can’t be denied that the few residual terrorists do strike at times on the directions of Pakistani masters, but the fear of terror that existed in the environment is gone.

There was a time when terrorists and overground separatists, supported by and owing allegiance to Pakistan, were effectively in command of Kashmir valley and some parts of Jammu region.

Their number may have been just in thousands even during the peak of terrorism but the fear they instilled among the local police, administration and common public made them control the affairs of Kashmir.

This kind of fear was instilled through the targeted killings of those who dared not to heed to their diktats and others labeled as “Mukhbir (informer)” of the security forces.

But that kind of situation exists no more, much to the chagrin of Pakistan which desperately wanted destabilization in Jammu and Kashmir because of its nefarious objective of annexing it.

There has been a complete transformation.

As the number of terrorists has been reduced to negligible levels, the fear of terror does not exist, because of which the people of Kashmir can live and enjoy real freedom.

How did it happen?

Since over a decade, and particularly after revocation of Article 370 in 2019, a very tough policy has been adopted against terrorism and separatism in Jammu and Kashmir and it is being implemented well.

Security agencies and forces have gone after the terrorists, which has resulted in the elimination of most of them.

A sustained crackdown is also underway against the critical support base, comprising the so-called ‘Over Ground Workers (OGWs)’, of terrorists. These OGWs or ‘Terrorist Associates’ have formed an extremely crucial element of terrorism.

Besides, the separatist leaders and other anti-national elements, who used to mobilize mobs and cause street violence, have been put behind the bars under tough laws, ensuring no bail to them.

This has ensured an end to anarchy witnessed earlier on the streets of Kashmir Valley.

Nowadays, people of Kashmir proudly carry the Indian flag in public and freely celebrate all national occasions with fervour.

They don’t need to fear pro-Pakistan elements anymore.

Breaking the backbone of terrorism

The sustained crackdown on OGWs has been the most important feature of ending the reign of terror in Kashmir.

These are the elements who form the critical support system for terrorists — people who carry out terror attacks.

The OGWs, including even women, are those people who provide logistical support, like hiding places, food and other essentials, to terrorists.

Many a time, they also perform the role of couriers of arms and ammunition for the terrorists.

Such seemingly common people are also the “eyes and ears” of terrorists.

Considering all these, their actions are no less than those of the people who carry out the actual terrorist crimes.

For a long period, such elements were treated in a milder manner, with little punishments, which would enable them to continue their anti-national activities and facilitate terror attacks.

But, lately they are being treated at par with terrorists. This measure has made a big contribution in crushing terrorism in Kashmir.

Forfeiture of properties of terrorists and their hideouts

In recent years, the authorities have also been sealing or confiscating properties of terrorists and those helping them.

This action also has hit at the root of the terrorism as it has ensured denial of hiding places for terrorists amidst the human habitations. In view of this, the few terrorists, that remain, have been forced to go into dense forests to hide.

Because of these actions, scope has also been drastically reduced for the aspiring terrorists because of the repercussions, particularly the economic ones.

With terrorism on its death bed, Kashmir is moving towards a brighter future amidst peace.

Ends

TTP claims killing of 7 Pakistani soldiers, injuring several others in Khyber Pakhtunkhwa

TTP
Cadres of Tehreek-e-Taliban Pakistan (TTP) - File Pic

Peshawar, Aug 4 (NVI) Tehreek-e-Taliban Pakistan (TTP) tonight claimed to have killed at least 7 personnel of Pakistani forces and injured several others in 5 attacks since last night in various parts of Khyber Pakhtunkhwa province.

Three Pakistani soldiers were killed and several injured in an ambush on a military convoy in Datta Khel in North Waziristan district last night, TTP spokesman said.

He said the ambush was carried out after receipt of timely information about the raid by the “anti-Sharia” army in Doga Macha.

In Peshawar, an attack, using a Grenade Launcher, was carried out on a unit of Pakistan Army and Counter-Terrorism Department (CTD) of police.

It resulted in the killing of 2 security personnel and injuries to 2, he said.

One Pakistani soldier was killed and another injured in a guerrilla attack on military check post in Duraban in Dera Ismail Khan district, the spokesman said.

A policeman was killed in a targeted attack near Jamali Bridge last night in Kalachi district and his weapons were seized, he said. (NVI)

India-flagged vessel sunk in attack near Yemen, 13 Indians on board rescued

Smoke emanates from a vessel after being attacked. (File pic)

New Delhi, Aug 4 (NVI) Thirteen Indian nationals had a brush with death as their commercial vessel was attacked in Red Sea, off the coast of Yemen, after which it sank today.

The government of India tonight condemned the attack on the Indian-flagged vessel, MSV Faize Noore Oliya, which came after a series of such incidents over the last few months.

All 13 Indian nationals on board the vessel were rescued after the attack, said Randhir Jaiswal, spokesperson of Ministry of External Affairs (MEA), in a statement.

“Our Embassy in Riyadh is closely monitoring the situation and proactively coordinating with the Yemeni authorities for the safety and security of the crew,” he said, while thanking the Yemeni authorities for their support.

The spokesperson said the continuing incidents of attacks on commercial shipping in the region are “deeply worrisome”.

“The targeting of commercial shipping in the region must end, and free and unimpeded navigation and commerce through the international waterways in the region, in keeping with international law, must be restored at the earliest,” he added. (NVI)

Police Deny Permission for Aug 5 Protests Across J&K; Security Tightened

Police book NC district prez for thrashing cop at party office in south Kashmir
File pic of Kashmir

Srinagar, Aug 4 (NVI): Authorities have denied permission for any protest or demonstration across Jammu and Kashmir on August 5, the sixth anniversary of the abrogation of Articles 370 and 35A, officials said on Tuesday.

Top officials said no protest or demonstration would be allowed at district headquarters or any other location in the Union Territory in view of calls issued by certain political parties.

They said elaborate security arrangements have been put in place across Kashmir, Jammu and other sensitive areas to maintain law and order and prevent any untoward incident.

Officials warned that any attempt to organise or participate in an unauthorised protest would invite legal action under the relevant provisions of law.

“People are requested to maintain peace and cooperate with the administration. Any activity that disturbs public order or violates the law will be dealt with strictly,” an official said.

The development comes after the ruling National Conference (NC) and the Peoples Democratic Party (PDP) called for protests at district headquarters, including Srinagar, against the August 5, 2019 decision that revoked the special status of the erstwhile state of Jammu and Kashmir.(NVI)

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