News Wrap
AGD

With the Indian economy still growing, communication has become a key skill. There has been a phenomenal growth in the search for self-improvement and confidence in India. A boom has occurred in English language classes for some of the poorest and most disadvantaged communities. Indian professionals, call centre employees and newly wed upper class brides are attending courses on body languages, voice modulation, and personality development. Along-with the growth of the self-improvement industry, books that are motivational or about self-improvement, outsell everything else. Seeking to boost confidence and feel better, propels the need for monitoring and counselling. There is a cut throat competition for a small number of professional opportunities. The number of children studying in English medium schools has increased by 274%, between 2003 and 2011, to more than 20 million. As India progresses to a global economic power, Indian companies are dealing with foreign executives. Many courses aim to bridge the cultural gap, extending over business etiquette, dining etiquette, and cell phone etiquette.

Basel III bank norms
The Basel III bank norms are being implemented from January 2013. The global banking system is expected to be less vulnerable. India’s public sector banks hold roughly 70% of all assets. Declaring growth and a big fiscal deficit are impeding the provision of Rs 15000 crores of PSB equity infusion, in the 2012-13 budget. Banks must hold a capital conservation buffer of 2.5% of Risk-Weighted Assets (RWA), from January, 2015. The Basel III norms are to be complied by 31 March 2018. The Capital Adequacy Ratio (CAR) for risk weighted assets has been raised to 10.5% from 8%. The Tier-I capital has been increased from 2% to 4.5%. Several public sector banks have made no provision for non-performing loans, running at about 100% of book value. About 28 to 30% of corporate loans are borrowers, with interest coverage ratios lower than one. The credit to GDP ratio is at a modest 55%. The  government infused Rs 12,000 crores into public sector bank equity in 2011-12. But all banks (PSB plus private) raised only Rs 52000 crores in equity, since 2007-08.
India and Asean Leaders

There was a high level meeting between India and leaders from the Association of South East Asian (ASEAN) countries in New Delhi, during the second fortnight of December 2012. Though mainly ceremonial, the meeting was held in the backdrop of Chinese assertiveness in the potentially oil and gas rich South China sea. Improved relations with south-east Asia, will provide India entry into one of the fastest growing economic regions in the world, and a source of raw materials needed for its own growth, constraints cover broken down roads between India and the nations to its south east, a shortage of direct flights and a tiny diplomatic crops. Trade between India and the 10-member ASEAN was up to $80 billion in 2011, compared with $47 billion in 2008. With an already established free trade zone, China has achieved trade worth $363 billion with ASEAN countries, in 2011. India imports 80% of its fuel needs. Even though India has no territorial claims in the South China sea, India’s navy is ready to deploy naval vessels to the South China sea, to protect oil exploration interests, if needed. Along with Vietnam, India is exploring an oil and gas block in the disputed waters. In future more liquefied natural gas may be transported through the Malacca straits.

Boundary between India-Bangladesh

Frontier
Vol. 45, No. 30, February 3- 9, 2013

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