Pakistan Moves 20,000 Soldiers to Gilgit-Baltistan LoC

Pakistan has moved two divisions of troops along the LoC in occupied Gilgit-Baltistan and Chinese officials are holding talks with cadres of terrorist outfit Al Badr to incite violence in J&K, as per intelligence inputs, indicating clearer signs of a China-Pak collaboration on the border.

Pakistan has moved almost 20,000 additional soldiers to LoC in northern Ladakh to match Chinese deployments on the LAC in the east.

The level of troops Pakistan has deployed is more than what it did after the Balakot air strikes. Pakistani radars are believed to be fully activated all along the region too.

The simultaneous build up on the Pakistan and China borders and efforts to incite terrorism in Kashmir has brought the possibility of a two-front war and fighting terrorists in Kashmir, the worst case scenario strategic experts fear, closer to reality.

Sources said there have been a series of meetings between Chinese and Pakistani officials in recent weeks, followed by amassing of troops in Gilgit-Baltistan, the area that adjoins Ladakh on the north. The buildup comes at a time when thousands of Chinese soldiers have been aggressively deployed along LAC in eastern Ladakh, apart from intrusions at several points that has led to a tense standoff.

A build up in Gilgit-Baltistan would require additional responsibility for the Indian Army that has deployed a credible force in eastern Ladakh to counter China. After the bifurcation of J&K , Gilgit-Baltistan is part of the Union Territory of Ladakh, but occupied by Pakistan. The area adjoins Kargil-Drass where India fought a war to evacuate Pakistani intruders in 1999.

According to intelligence reports, Chinese officials have undertaken meetings with cadres of the Al Badr, a Pakistan-based terror group that has a history of wreaking violence in Kashmir. “The assessment is that China may provide support to revive the organisation. This is among the signs we have received that indicate Pakistan and China are collaborating on the ground,” sources said.

Earlier this month, J&K Police DG Dilbag Singh had said there were signs that the Al Badr, decimated long ago, was being revived for operations. These signs of collaboration are worrying as tensions continue on LAC, with talks failing to make any headway and PLA increasing concentration across eastern Ladakh, apart from Arunachal Pradesh, Uttarakhand and Sikkim.

India has been keeping an eye on airbases in Pakistan-occupied Kashmir after a Chinese refueller aircraft landed in Skardu earlier this week. Chinese air activity has increased opposite eastern Ladakh, raising the possibility of PLA Air Force using airbases in Gilgit-Baltistan. Limited activity is being observed at the Skardu airbase where an IL 78 tanker of the Chinese air force landed earlier in the month.

177-wagon ‘Super Anaconda’ snakes along tracks in Odisha

In a first, the railways successfully ran 177 loaded wagons, clubbing three freight trains together, in Odisha on Monday at an average speed of 40 kmph. The train carried approximately 15,000 tonnes of coal from Brajrajnagar to Rourkela.

Posting a short video of this run in its Twitter handle, the South East Central Railways said, “SECR creates history. First in Indian Railways history, 3 loaded trains together #SuperAnaconda.” Official said the train called “Super Anaconda” was about three kilometers long and it passed through Bilaspur and Chakradharpur divisions, one of the busiest sections. The train covered the 100 km stretch in 2 hours and 15 minutes.

Prior to this, the railways had run trains clubbing wagons of two freight trains.

In February last year, the East Coast Railway had run a 2-km long freight train clubbing the wagons of two trains in Sambalpur division in Odisha. It was named “Python Rake”.

Sources said similar trains may be operated in future based on requirement and technical feasibility.

This experiment happened at a time when the national transporter is focusing more on freight movement to push its revenue, which has been hit due to negligible operation of passenger trains due to the pandemic.

Mahindra hits back at Chinese editor’s tweet on Indian goods

Industrialist Anand Mahindra and editor-in-chief of Chinese media company, Global Times, were locked in a sharp exchange after the latter took a dig at India’s production capacity on Twitter.

“Well, even if Chinese people want to boycott Indian products, they can’t really find many Indian goods. Indian friends, you need to have some things that are more important than nationalism,” posted Hu Xijin of Global Times, a mouthpiece of the Communist Party. Xijin had shared an update about the government’s decision to ban 59 Chinese apps, including TikTok.

Mahindra wrote, “I suspect this comment might well be the most effective & motivating rallying cry that India Inc. has ever received. Thank you for the provocation. We will rise to the occasion.”

Current A/c in Surplus After Over a Decade

India’s external position improved last fiscal with the current account turning a surplus in the fourth quarter for the first time in over a decade as a surge in private transfers and software services income helped. The full year current account deficit was the lowest in three years.But a possible slowdown in inward remittances and software services income could pare, moderate or marginally reverse gains this fiscal.

The current account, the aggregate of country’s exports and imports of goods and services, ended in a marginal surplus of $0.6 billion or 0.1% of the gross domestic product in the March quarter last fiscal, compared to a deficit of $4.6 billion or 0.7% of GDP a year ago, data from the RBI shows. The last time current account was in surplus was in the fourth quarter of FY2007. That quarter saw a surplus of $4.2 billion.

A current account surplus during the time of an economic crisis augurs well for the country as it eliminates the risk of a collapse in currency value. While economy is expected to shrink about 4-5% this fiscal, steady portfolio and foreign direct investment flows have also helped stabilise the currency though there was a brief outflow due to Covid-19.

Foreign exchange reserves are at historic highs above half a trillion-mark.

Core Sector Contraction Slows Down in May

India’s infrastructure sector contracted at a slower pace in May compared with April, helped by the relaxation in lockdown restrictions and good growth in fertiliser production ahead of the sowing season.

The index of eight core industries dropped 23.4% in May from a year earlier; in April, the fall was 37%. Output contracted 30% in the first two months of the current financial year.

The eight industries in the index are coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity. These together have a 40% weight in the Index of Industrial Production, suggesting that industrial output may also shrink at lower pace in May. Ratings firm ICRA expects industrial production to shrink around 35-45% in May, compared with 55.5% in April.

Fertiliser production grew 7.5% after two consecutive months of contraction, suggesting some strength in the rural economy during the current kharif season.

Cement and steel sectors reported lower contraction of 22.2% and 48.4%, respectively, in May, compared with 85.3% and 78.7% in April.

Electricity generation declined 15.6% in May against a 23% fall in April. The declines reported by the other four sectors — coal (-14%), crude oil (-7.1%), refinery products (-21.3%) and natural gas (-16.8%) —were close to those in April.

The substantial relaxation in lockdown in June is expected to further help recovery in these sectors. However, given the fiscal constraints, government capital spending may remain mooted, which means recovery in steel and cement in particular is unlikely to be sharp.

China ‘concerned’ over India’s ban on 59 apps

A day after India banned 59 apps with Chinese links for engaging in activities which are “prejudicial to sovereignty and integrity” of the country, China voiced strong concern, and said the Indian government has the responsibility to uphold the “legitimate and legal rights” of international investors.

India had on Monday banned 59 apps with Chinese links, including the hugely popular TikTok and UC Browser, for engaging in “activities which are prejudicial to sovereignty and integrity of India, defence of India, security of state and public order”.

The ban also comes in the backdrop of the current stand-off along the Line of Actual control in eastern Ladakh with Chinese troops. Interestingly, Indian and Chinese militaries on Tuesday held another round of Lt General-level talks in Chushul on the Indian side of the Line of Actual Control on Tuesday to discuss the modalities for the disengagement of troops from several friction points in the region.

Reacting to India’s ban of the Chinese apps at a Chinese Foreign Ministry briefing, spokesman Zhao Lijian said, “China has noted the press release issued by the Indian side with strong concern and is now verifying the situation.”

“The Chinese government always asks the Chinese businesses to abide by international rules, local laws and regulations in their business cooperation with foreign countries,” he said.

“The Indian government has the responsibility to uphold the legitimate and legal rights of the international investors including the Chinese ones,” he added.

India’s Information Technology Ministry said on Monday that it has invoked its power under section 69A of the IT Act and rules, and has decided to block 59 apps in view of information available that they are “engaged in activities which are prejudicial to sovereignty and integrity of India, defence of India, security of state and public order”.

The list of apps that have been banned by India also include Helo, Likee, Cam Scanner, Vigo Video, Mi Video Call – Xiaomi, Clash of Kings as well as e-commerce platforms Club Factory and Shein.

PM renews ration scheme for poor

Amidst anticipation of a big statement on the ongoing crisis at the Indo-China border, Prime Minister Narendra Modi in his speech struck a note closer home as he announced the extension of the Centre’s free ration scheme for the poor till Chhatt Puja.

Bihar assembly elections are slated for October-November.

PM Modi steered clear of the China issue and in a rather brief address announced that in view of the coming festival season that will go on till Diwali and Chhath, the free ration scheme that will benefit 80 crore people will be extended and the rollout of ‘One Nation One Ration Card’.

The reference to Chhath Puja and the announcement, that many in political circles said could have been made through a press release or by any other Union Minister, was seen as an early sop for voters.

As per official figures, the Pradhan Mantri Garib Kalyan Anna Yojana has so far catered to 80 crore beneficiaries, who could avail five kilograms of rice or wheat per person and one kg bengal gram per family. The scheme was initially sanctioned for three months from April to June 30 and would have expired today.

“ July marks the beginning of the festive season …which increases necessities as well as expenditure. Keeping all these things in mind, it has been decided to extend Pradhan Mantri Garib Kalyan Anna Yojana up to Diwali and Chhath Puja, till November-end…,” Modi said.

The PM’s address, however, drew heavy flak from the Opposition for not addressing pressing issues such as the tension with China at the Line of Actual Control and measures to tackle to Covid-19 as India continues to report steep single-day spikes in new cases. Chief Minister of poll-bound West Bengal, Mamata Banerjee hit out at Modi and said that her government would continue the free ration scheme till June 2021 and that the quality of grains were far superior compared to the Centre’s supplies.

Congress spokesperson Supriya Shrinate said that her party had hoped the PM would talk about substantive steps taken against Covid-19, job loss, economic crisis, China issue among other things but ‘clearly it was much ado about nothing.’