IRAN'S NUCLEAR PROGRAM

IRAN'S NUCLEAR PROGRAM

The nuclear program of Iran was launched in the 1950s with the help of the United States as part of the Atoms for Peace program. The support, encouragement and participation of the United States and Western European governments in Iran's nuclear program continued until the 1979 Iranian Revolution that toppled the Shah of Iran.

After the 1979 revolution, the Iranian government temporarily disbanded elements of the program, and then revived it with less Western assistance than during the pre-revolution era. Iran's nuclear program has included several research sites, two uranium mines, a research reactor, and uranium processing facilities that include three known uranium enrichment plants.

After delays, an official launch ceremony of Iran's first nuclear power plant, Bushehr I reactor was held on 21 August 2010.

The controversy over Iran's nuclear programs centers in particular on Iran's failure to declare sensitive enrichment and reprocessing activities to the International Atomic Energy Agency (IAEA). Enrichment can be used to produce uranium for reactor fuel or (at higher enrichment levels) for weapons. Iran says its nuclear program is peaceful, and has enriched uranium to less than 5%, consistent with fuel for a civilian nuclear power plant. Iran also claims that it was forced to resort to secrecy after US pressure caused several of its nuclear contracts with foreign governments to fall through. After the IAEA Board of Governors reported Iran's noncompliance with its safeguards agreement to the UN Security Council, the Council demanded that Iran suspend its nuclear enrichment activities while Iranian President Mahmoud Ahmadinejad has argued that the sanctions are "illegal," imposed by "arrogant powers," and that Iran has decided to pursue the monitoring of its self-described peaceful nuclear program through "its appropriate legal path," the International Atomic Energy Agency.

IRAN NUCLEAR TALKS

The P5 (China, France, Russia, United Kingdom, and United States) plus Germany (P5+1) have offered benefits to Iran, including "legally binding" fuel supply guarantees. The deal offered by the P5+1 would leave Iran reliant on external sources of fuel, as is true for most countries with nuclear power programs though many of them also lack indigenous resources to produce their own fuel, or do not have the same strategic security concerns as Iran. Iranian President Mahmoud Ahmadinejad rejected this proposal, saying that Iran had the right to process uranium for fuel and that Iran "will not retreat one iota in the face of oppressing powers."

UN Security Council

The UN Security Council has passed six resolutions on Iran:

* Resolution 1696 (July 31, 2006) demanded that Iran suspend its uranium enrichment activities, invoking Chapter VII of the United Nations Charter to make that demand legally binding on Iran.

* Resolution 1737 (December 23, 2006) imposed sanctions after Iran refused to suspend its enrichment activities, cutting off nuclear cooperation, demanding that Iran cooperate with the IAEA, and freezing the assets of a number of persons and organizations linked to Iran's nuclear and missile programs. It established a committee to monitor sanctions implementation.

* Resolution 1747 (March 24, 2007) expanded the list of sanctioned Iranian entities and welcomed the proposal by the permanent five members of the Security Council plus Germany for resolving issues regarding Iran's nuclear program.

* In resolution 1803 (March 3, 2008), the Council decided to extend those sanctions to additional persons and entities, impose travel restrictions on sanctioned persons, and bar exports of nuclear- and missile-related dual-use goods to Iran.

* Resolution 1835 (September 27, 2008) reaffirmed the preceding four resolutions, the only one of the six not to invoke Chapter VII.

* Resolution 1929 (June 9, 2010) imposed a complete arms embargo on Iran, banned Iran from any activities related to ballistic missiles, authorized the inspection and seizure of shipments violating these restrictions, and extended the asset freeze to the Iranian Revolutionary Guard Corps (IRGC) and the Islamic Republic of Iran Shipping Lines (IRISL).

Civilian Awards

1. Bharat Ratna

2. Padma Vibhushan

3. Padma Bhushan

4. Padma Shri

Inflation in India

Inflation is caused due to several economic factors:

• When the government of a country print money in excess, prices increase to keep up with the increase in currency, leading to inflation.
• Increase in production and labor costs, have a direct impact on the price of the final product, resulting in inflation.
• When countries borrow money, they have to cope with the interest burden. This interest burden results in inflation.
• High taxes on consumer products, can also lead to inflation.
• Demands pull inflation, wherein the economy demands more goods and services than what is produced.
• Cost push inflation or supply shock inflation, wherein non availability of a commodity would lead to increase in prices.

Problems

The problems due to inflation would be:

• When the balance between supply and demand goes out of control, consumers could change their buying habits, forcing manufacturers to cut down production.
• The mortgage crisis of 2007 in USA could best illustrate the ill effects of inflation. Housing prices increases substantially from 2002 onwards, resulting in a dramatic decrease in demand.
• Inflation can create major problems in the economy. Price increase can worsen the poverty affecting low income household,
• Inflation creates economic uncertainty and is a dampener to the investment climate slowing growth and finally it reduce savings and thereby consumption.
• The producers would not be able to control the cost of raw material and labor and hence the price of the final product. This could result in less profit or in some extreme case no profit, forcing them out of business.
• Manufacturers would not have an incentive to invest in new equipment and new technology.
• Uncertainty would force people to withdraw money from the bank and convert it into product with long lasting value like gold, artifacts.

Inflation in India Economy
India after independence has had a more stable record with respect to inflation than most other developing countries. Since 1950, the inflation in Indian economy has been in single digits for most of the years

Between 1950-1960
The inflation on an average was at 2.00%

Between 1960-1970
The inflation on an average was at 7.2%

Between 1970-1980
The inflation on an average was at 8.5%.

Inflation At Present
Inflation in India a menace a few years ago is at a 30 year low. The inflation ended at a low of 0.61% in the week ended May 9, 2009 this after reaching a 16 year high of 12.91 % in August 2008, bringing in a sigh of relief to policymakers.

WPI and CPI

Wholesale Price index

WPI is the index that is used to measure the change in the average price level of goods traded in wholesale market. Wholesale Price index (WPI) is compiled and released on weekly basis at national level by the Ministry of Industry.

The WPI series, on base 1981-82, covered in all 447 commodities. With a view to revise the base year (1981-82) of WPI, a Working Group was set up by the Ministry of Industry. The Working Group submitted its report to the Government and the same has been accepted. The Working Group has recommended for shifting the base year (1981-82) of the series to 1993-94. The Ministry of Industry started releasing the WPI series on base 1993-94 from April, 2000. The series covers in all 435 commodities.

Consumer Price Index

In principle and practice, a Consumer Price Index (CPI) measures changes over time in the general level of prices of goods and services that a reference population acquire, use or pay for consumption. There are four Consumer Price Indices (CPI) released at national level. These are CPI for Urban Non-Manual Employees (UNME), CPI for Industrial Workers (IW), CPI for Agricultural Labourers (AL), and CPI for Rural Labourers (RL)). While the first one is compiled and released by the Central Statistical Organisation (CSO), Ministry of Statistics and Programme Implementation, the rest three are compiled and released by the Labour Bureau, Ministry of Labour.

The Central Statistical Organisation has been compiling Consumer Price Index Numbers for Urban Non-Manual Employees [CPI(UNME)], on monthly basis, since 1961. Using the weights, derived from the data collected through middle class family living survey (MCFLS) conducted during 1982-83, the current CPI(UNME) series on base 1984-85, is being compiled and released since November, 1987. The Index numbers are compiled using Laspeyres' Index formula.

The Labour Bureau compiles Consumer Price Index Numbers for Industrial Workers [CPI(IW)], on monthly basis, using the retail prices collected from 261 markets in 76 centres by the officials of various State Governments, Labour Commissioners, etc. The number of items in the consumption baskets of different centres generally varies between 120 to 160, depending upon the prevailing situation in each centre and the consumption pattern of the centre. The various items of goods and services are classified into six main groups namely: (i) food, (ii) pan, supari, tobacco & intoxicants, (iii) fuel & light, (iv) housing, (v) clothing, bedding & footwear, (vi) miscellaneous. The base year of the index is 1982.

The Labour Bureau also compiles Consumer Price Index Numbers both for Agricultural Labourers [CPI(AL)] and Rural Labourers [CPI(RL)], on monthly basis, using the retail prices in respect of 260 items of goods and services, collected by National Sample Survey Organisation (NSSO) from fixed markets in 600 sample villages in 20 states spread over the country. The base year of both the indices is 1986-87.

The Labour Bureau started releasing CPI(RL) series for all-India and 20 states since November, 1995. The indices for all-India and 20 states are released, on a monthly basis, with a time lag of 3 weeks. The CPI(AL) and CPI(RL) for all-India are based on the respective indices in respect of 20 states only.

Uses of Price Indices

Changes in prices, both absolute and relative, influence a wide range of economic activities, and a constant watch on prices becomes necessary for the operation and regulation of current economic policies as well as for planning and policy formulation. Temporal changes in prices are gauged by using price indices. The WPI helps in understanding the movement of prices relating to bulk transactions or purchases, which are usually for further sale. WPI is used for a wide spectrum of economic management needs, including policy formulation, deflating macroeconomic aggregates, forecasting of variables for which prices are prime indicators, and working out escalation costs of projects. Reserve Bank of India (RBI), Planning Commission, and other government agencies use WPI extensively as a major macroeconomic indicator for varied purposes. In socioeconomic research, the indices find ready use.

The Consumer Price Index (CPI) plays an important role in national policy making, both in the economic and in the social sphere. It is used for a wide variety of purposes. The CPI is the best and most well known indicator of inflation. It is the barometer of the performance of the economy and a key indicator in evaluating the results of the monetary and fiscal policy in a country. A popular function is the use of CPI for indexation of wages and social security allowances like dearness allowance. CPI for Industrial Workers is utilised mainly for Wage & Dearness allowance regulation of workers and employees. CPI is also important for formulation of social policy measures and in the area of social security and welfare allowances. Beside these, CPI is used as a deflator in national account estimates for converting values at current prices to values at constant prices.

CPI(UNME) is one of the primary indicators of price movement in the urban segment of population in India. The users of CPI(UNME) are many and varied including public, private and governmental agencies. Specifically for regulating Dearness Allowance (DA), CPI(UNME) series are used by State Governments & Public/Private Sector Undertakings/Agencies/Companies.

The official measure of inflation in the Indian economy is based on WPI. WPI measures the general level of price changes at the level of either the wholesaler or the producer; and does not take into account retail margins. As such, WPI can be said to essentially measure price changes from the production side, and not from the consumption side. Moreover, price changes in the service sector are not duly accounted for in WPI, even though they are largely influenced by inputs from the industrial sector. In contrast to a CPI, the WPI thus measures price changes at an early stage of the distribution system. This difference makes the WPI a flexible price index, and one that signal changes in the general price level. From the viewpoint of a consumer, inflation concerns the purchasing power of his money. Inflation estimates given by a CPI are considered more representative of temporal changes in consumer prices.

There are many structural differences in the WPI and CPIs released at national level, which account for the difference in the point-to-point inflation rate. These are as given below:

(i) The WPI is designed to measure the temporal price changes of wholesale transactions of all the commodities in the country whereas the CPI measures the changes in consumer (retail) prices in respect of items in the consumption basket of goods and services, on which an average family of industrial worker/urban non-manual employee/household of agricultural/rural labourer spends its budget. While the former is production/output oriented, the latter has orientation towards the family/household budget of the target population.

(ii) Not only the composition of the baskets of the WPI and the CPI is different, but the weights of items in the basket are also different. The weights of items in the WPI have been assigned in proportion to their share in the total value of transaction (output) in the economy. In case of CPI, weights are in proportion to their share in the total consumption expenditure of the family of industrial worker/urban non-manual employee/household of agricultural/ rural labourer in a selected centre/state.

(iii) The WPI is a single national index compiled at the national level. The basis of inclusion of items in the basket for WPI, is their importance in the national economy. The basis of selection of items in the consumption basket for CPI is their relative consumption expenditure and their popularity among the families of industrial workers/urban non-manual employees/households of agricultural/rural labourer in a selected centre/village.

(iv) CPIs take into account the retail margins which have a direct bearing on retail price movements.

(v) The services like health, education etc. are not included in the WPI. As such, the WPI leaves out of its scope yet another area where consumers are increasingly spending more money.

(vi) Housing is one of the broad groups both in CPI(IW) and CPI(UNME), for which the data on shelter cost (rent cost) is collected regularly from a fixed sample of tenements. A chain base index are compiled on half-yearly basis for this group, which, in turn, is integrated into the general CPI. No such group exists in WPI, CPI(AL) and CPI(RL).

NBFC and MFI

NBFC is Non-Banking Financial Company, a company registered under the Companies Act, 1956 of India.

What it does?

Engaged in the business of loans and advances, acquisition of shares, stock, bonds, debentures and securities issued by government or local authority, or other securities of a marketable nature, leasing, hire-purchase, insurance business, or chit business:

What it does not?

Does not include any institution whose principal business is that includes agriculture or industrial activity; or the sale, purchase or construction of immovable property

Banks Vs NBFC

1. Cannot accept demand deposits

2. Not a part of the payment and settlement system

3. cannot issue cheques drawn on itself

MFI

Microfinance institutions, also known as MFIs^[3], offer financial services to undeserved and impoverished communities.

MFIs of India

Forbes magazine named seven microfinance institutes in India in the list of the world's top 50 microfinance institutions.

Bandhan, as well as two other Indian MFIs—Microcredit Foundation of India (ranked 13th) and Saadhana Microfin Society (15th) – have been placed above Bangladesh-based Grameen Bank (which along with its founder Mohammed Yunus, was awarded the Nobel Prize). Besides Bandhan, the Microcredit Foundation of India and Saadhana Microfin Society, other Indian entries include Grameen Koota (19th), Sharada's Women's Association for Weaker Section (23rd), SKS Microfinance Private Ltd (44th) and Asmitha Microfin Ltd (29th).^[9][10]

Criticisms

Recently, microfinance has come under fire in the state of Andhra Pradesh due to allegations of MFIs using coercive recollection practices and charging usurious interest rates. ^[11] These charges resulted in the state government's passing of the Andhra Pradesh Microfinance Ordinance on October 15, 2010. The Ordinance requires MFIs to register with the state government and gives the state government the power, suo moto, to shut down MFI activity.^[12] A number of NBFCs have been affected by the ordinance, including sector heavyweight SKS Microfinance. ^[13]

National Commission for Minorities

Constitutional rights and safeguards provided to the minorities in India

Though the Constitution of India does not define the word ‘Minority’ and only refers to ‘Minorities’ and speaks of those ‘based on religion or language’, the rights of the minorities have been spelt out in the Constitution in detail.

The Constitution provides two sets of rights of minorities which can be placed in ‘common domain’ and ‘separate domain’. The rights which fall in the ‘common domain’ are those which are applicable to all the citizens of our country. The rights which fall in the ‘separate domain’ are those which are applicable to the minorities only and these are reserved to protect their identity. The distinction between ‘common domain’ and ‘separate domain’ and their combination have been well kept and protected in the Constitution. The Preamble to the Constitution declares the State to be ‘Secular’ and this is a special relevance for the Religious Minorities. Equally relevant for them, especially, is the declaration of the Constitution in its Preamble that all citizens of India are to be secured ‘liberty of thought, expression, belief, faith and worship and ‘equality of status and of opportunity.’

‘Separate Domain’ of Minority Rights

The Minority Rights provided in the Constitution which fall in the category of ‘Separate Domain’ are as under:-

1. right of ‘any section of the citizens’ to ‘conserve’ its ‘distinct language, script or culture’; [Article 29(1)]

2. restriction on denial of admission to any citizen, to any educational institution maintained or aided by the State, ‘on grounds only of religion, race, caste, language or any of them’; [Article 29(2)]

3. right of all Religious and Linguistic Minorities to establish and administer educational institutions of their choice;[Article 30(1)]

4. freedom of Minority-managed educational institutions from discrimination in the matter of receiving aid from the State;[Article30(2)]

5. special provision relating to the language spoken by a section of the population of any State;[Article 347]

6. provision for facilities for instruction in mother-tongue at primary stage;[Article 350 A]

7. provision for a Special Officer for Linguistic Minorities and his duties; and [Article 350 B]

8. Sikh community’s right of ‘wearing and carrying of kirpans; [Explanation 1 below Article 25]

Minorities Commission

The setting up of Minorities Commission was envisaged in the Ministry of Home Affairs Resolution dated 12.01.1978 which specifically mentioned that, "despite the safeguards provided in the Constitution and the laws in force, there persists among the Minorities a feeling of inequality and discrimination. In order to preserve secular traditions and to promote National Integration the Government of India attaches the highest importance to the enforcement of the safeguards provided for the Minorities and is of the firm view that effective institutional arrangements are urgently required for the enforcement and implementation of all the safeguards provided for the Minorities in the Constitution, in the Central and State Laws and in the government policies and administrative schemes enunciated from time to time. Some time in 1984 the Minorities Commission was detached from Ministry of Home Affairs and placed under the newly created Ministry of Welfare.

National Commission for Minorities

With the enactment of the National Commission for Minorities Act, 1992, the Minorities Commission became a statutory body and renamed as National Commission for Minorities.

The first Statutory National Commission was set up on 17th May 1993. Vide a Gazette notification issued on 23rd October 1993 by Ministry of Welfare, Government of India, five religious communities viz; the Muslims, Christians, Sikhs, Buddhists and Zoroastrians (Parsis) were notified as minority communities. As per the 2001 Census, these five religious minority communities constitute 18.42% of the country’s population.

Functions of NCM

As per Section 9(1) of the NCM At, 1992, the Commission is required to perform following functions:-

(a) evaluation of the progress of the development of minorities under the Union and States;

(b) monitoring of the working of the safeguards for minorities provided in the Constitution and in laws enacted by Parliament and the State Legislatures;

(c) making recommendations for the effective implementation of safeguards for the protection of the interests of minorities by the Central Government or the State Governments;

(d) looking into specific complaints regarding deprivation of rights and safeguards of minorities and taking up such matters with the appropriate authorities;

(e) getting studies to be undertaken into the problems arising out of any discrimination against minorities and recommending measures for their removal;

(f) conducting studies, research and analysis on the issues relating to socio-economic and educational development of minorities;

(g) suggesting appropriate measures in respect of any minority to be undertaken by the Central Government or the State Governments;

(h) making periodical or special reports to the Central Government or any matter pertaining to minorities and in particular the difficulties confronted by them; and

(i) any other matter, which may be referred to it by the Central Government.

Section 2 (c) of NCM Act, 1992 stipulates that ‘Minority’ for the purposes of the Act, means a community notified as such by the Central Government. Therefore, all the functions of the Commission as laid down in Section 9(1) of the Act are related to the five notified communities.

COMPOSITION

The Commission shall consist of a Chairperson, [a Vice Chairperson and five] Members to be nominated by the Central Government from amongst persons of eminence, ability and integrity; Provided that five Members including the Chairperson shall be from amongst the Minority communities.

Term of office & conditions of service of Chairperson & Members.-

1. The Chairperson and every Member shall hold office for a term of three years from the date he assumes office.

2. The Chairperson or a Member may, by writing under his hand addressed to the Central Government, resign from the office of Chairperson or, as the case may be, of the Member at any time.

3. The Central Government shall remove a person from the office of Chairperson or a Member referred to in sub-section (2) if that person -

1. becomes an undischarged insolvent.

2. is convicted and sentenced to imprisonment for an offence which in the opinion of the Central Government involves moral turpitude.

3. becomes of unsound mind and stands so declared by a competent court.

4. refuses to act or becomes incapable of acting.

5. is, without obtaining leave of absence from the Commission, absent from three consecutive meetings of the Commission.

6. has, in the opinion of the Central Government, so abused the position of Chairperson, or Member, as to render that person’s continuance in office detrimental to the interests of Minorities or the public interest: Provided that no person shall be removed under this clause until that person has been given a reasonable opportunity of being heard in the matter.

4. A vacancy caused under sub-section (2) or otherwise shall be filled by fresh nomination.

5. The salaries and allowances payable to, and the other terms and conditions of service of, the Chairperson and Members shall be such as may be prescribed.

FUNCTIONS OF THE COMMISSION

1. The Commission shall perform all or any of the following functions, namely:-

1. evaluate the progress of the development of Minorities under the Union and States.

2. monitor the working of the safeguards provided in the Constitution and in laws enacted by Parliament and the State Legislatures.

3. make recommendations for the effective implementation of safeguards for the protection of the interests of Minorities by the Central Government or the State Governments.

4. look into specific complaints regarding deprivation of rights and safeguards of the Minorities and take up such matters with the appropriate authorities.

5. cause studies to be undertaken into problems arising out of any discrimination against Minorities and recommend measures for their removal.

6. conduct studies, research and analysis on the issues relating to socio-economic and educational development of Minorities.

7. suggest appropriate measures in respect of any Minority to be undertaken by the Central Government or the State Governments.

8. make periodical or special reports to the Central Government on any matter pertaining to Minorities and in particular the difficulties confronted by them.

9. any other matter which may be referred to it by the Central Government.

2. The Central Government shall cause the recommendations referred to in clause (c) of sub-section (1) to be laid before each House of Parliament along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the Union and the reasons for the non-acceptance, if any, of any of such recommendations.

3. Where any recommendation referred to in clause (c) of sub-section (1) or any part thereof is such with which any State Government is concerned, the Commission shall forward a copy of such recommendation or part to such State Government who shall cause it to be laid before the Legislature of the State along with a memorandum explaining the action taken or proposed to be taken on the recommendations relating to the State and the reasons for the non-acceptance, if any, of any of such recommendation or part.

4. The Commission shall, while performing any of the functions mentioned in sub-clauses (a), (b) and (d) of sub-section (1), have all the powers of a civil court trying a suit and, in particular, in respect of the following matters, namely:-

1. summoning and enforcing the attendance of any person from any part of India and examining him on oath.

2. requiring the discovery and production of any document.

3. receiving evidence of affidavits.

4. requisitioning any public record or copy thereof from any court or office.

5. issuing commissions for the examination of witnesses and documents; and

6. any other matter which may be prescribed.

Double taxation

Double taxation
Double taxation is the imposition of two or more taxes on the same income (in the case of income taxes), asset (in the case of capital taxes), or financial transaction (in the case of sales taxes). It refers to :
* taxation by two or more countries of the same income, asset or transaction, for example income paid by an entity of one country to a resident of a different country. The double liability is often mitigated by tax treaties between countries.
Double Tax Avoidance Agreements
The Central Government, acting under Section 90 of the Income Tax Act, has been authorised to enter into Double Tax Avoidance Agreements (hereinafter referred to as tax treaties) with other countries. The object of such agreements is to evolve an equitable basis for the allocation of the right to tax different types of income between the 'source' and 'residence' states ensuring in that process tax neutrality in transactions between residents and non-residents. A non-resident, under the scheme of income taxation, becomes liable to tax in India in respect of income arising here by virtue of its being the country of source and then again, in his own country in respect of the same income by virtue of the inclusion of such income in the 'total world income' which is the tax base in the country of residence. Tax incidence, therefore, becomes an important factor influencing the non-residents in deciding about the location of their investment, services, technology etc. Tax treaties serve the purpose of providing protection to tax payers against double taxation and thus preventing the discouragement which taxation may provide in the free flow of international trade, international investment and international transfer of technology. These treaties also aim at preventing discrimination between the tax payers in the international field and providing a reasonable element of legal and fiscal certainty within a legal framework. In addition, such treaties contain provisions for mutual exchange of information and for reducing litigation by providing for mutual assistance procedure.