Consumer Price Index (CPI)

The consumer price index, aka. CPI, is the key gauge for inflation; it measures price increases and decreases on common group of consumer goods and services on a monthly basis. The CPI is calculated by taking a weighted average of price change for a pre-determined group of goods. The goods are weighted in order of their importance. The consumer price index is very similar, but not to be confused with, to the cost of living index which allows for substitutions of the items as prices move higher or lower.

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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).

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India on Friday adopted the new Consumer Price Index (CPI) that will reflect the actual movement of prices at the micro-level. As per the new series, the CPI has increased to 106 in January from a base of 100 in 2010 (inflation of 6 per cent), but the government has chosen not to mention the inflation figure, pointing out that the exact level could be arrived only next year.
The Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, has introduced the new series of consumer price indices for all-India, and States and union territories separately for rural, urban and combined for the purpose of intra temporal price comparison with effect from January, 2011, with 2010 as the base year.
“Indices for some States/UTs are not being released since adequate number of schedules for these States/UTs could not be received. These indices will be revised at the time of release of provisional indices for March 2011. Therefore, for one year this practice will be continued till the series gets stabilised and adequate timely receipt of price data is achieved. Since these indices are being introduced for the first time, annual inflation rates have not been compiled,” an official statement said.
The initial data showed that retail inflation stood at 6 per cent in January this year. However, inflation, as measured by the Wholesale Price Index — which remains the top benchmark — stood at 8.23 per cent in January. India is one of the few countries in the world using the WPI as benchmark. Experts say the new CPI is likely to help policymakers like the Reserve Bank of India in better framing of decisions.
The consumer indices have been released for five major groups — food, beverages and tobacco; fuel and light; housing; clothing, bedding and footwear; and miscellaneous.
As per the new data, food, beverages and tobacco went up to 108 on a national basis in January, while fuel and light were at 106. Clothing, bedding and footwear in the month under review stood at 107 while housing remained constant at 100. The miscellaneous items went up by six points to 106.
As per the new data, inflation has been the most in Kerala, Orissa and Meghalaya, where CPI overall stood at 108 in January from a base of 100 in 2010 (inflation of 8 per cent). Even richer states like Maharashtra, Gujarat, Haryana, Delhi and Punjab reported a rise of only 4-6 per cent in CPI on an annual basis during the month under review.

India-Malaysia CECA

India-Malaysia CECA
The India-Malaysia CECA is a comprehensive and ambitious agreement that envisages liberal trade in goods and services and a stable and competitive investment regime to promote foreign investment between the two countries. The goods package under the CECA takes the tariff liberalization beyond the India-ASEAN FTA commitments on items of mutual interest for both the countries. Under the agreement, India will get market access in the Malaysian market for goods including fruits such as mangoes, banana and guava, basmati rice, two wheelers and cotton garments. At the same time, protection continues to be provided for the sensitive sectors. Under the services agreement, India and Malaysia have provided commercially meaningful commitments in sectors and modes of interest to each other which should result in enhanced services trade. Sectors such as accounting and auditing, architecture, urban planning, engineering services, medical and dental, IT & ITES, Management Consulting Services etc. would get Malaysian market access.
Agreement Current Status

1. SAFTA Agreement on South Asia Free Trade Area Operational since January 2006

2. APTA Asia Pacific Trade Agreement or Bangkok
Agreement Operational since September 2006

3. CECA between The Republic of India and the
Republic of Singapore Operational since August 2005

4. India Chile PTA Operational since September 2007

6. India Afghanistan PTA Framework Agreement (FA) signed in March 2003

7. ISLFTA India Sri Lanka FTA Operational since March 2000

8. India MERCOSUR PTA Operational since June 2009

9. Bhutan-India Agreement on Trade, Commerce and
Transit Original version operational sinceJanuary 1972. Crrent version operational since July 2006.

10. Indo-Nepal Treaty of Trade Original version operational in 1992.
Current version operational since
March 2002. Renewed in March 2007

11. India-Thailand Free Trade Agreement Operational since September 2004

12. Bangladesh- India Amended Trade Agreement Operational since April 2006

13. India-Maldives Trade Agreement Operational since April 1981

14. ASEAN- India FTA Operational since 2010

15. India-South Korea Comprehensive Economic
PartnershipAgreement (CEPA)
Negotiations completed.

16. India-Japan Comprehensive Economic Cooperation
Agreement (CECA) Negotiations completed.

17. India- Sri Lanka Comprehensive Economic
Partnership Agreement (CEPA) Negotiations completed.

18. India- Thailand Comprehensive Economic Partnership
Agreement (CEPA)
Under negotiations (negotiations on
trade of goods completed)

19. India- Malaysia Comprehensive Economic
Partnership Agreement (CEPA)
Negotiations completed.

Black Money

What is Black Money?

Income on which tax is evaded is black money. For example, when a seller of property receives part of the sale proceeds in cash, and doesn’t show it in its tax accounts. Or, when a company shows fictitious expenses to pay less taxes. All this is illegal, unaccounted wealth.

How is it Created?

There are ways and ways. Two are mentioned above. Here are two common tax and accounting tricks employed by businesses -- the most prolific creators of black money.

UNDER-INVOICING OF SALES:

Company X sells Rs 100 worth of goods to Dealer Y. Company X invoices Rs 80 to the dealer, the remaining Rs 20 it takes in cash and siphons it off. Dealer Y sells goods to a customer for Rs 120 in cash; shows Rs 100 in his books, but conceals Rs 20.

FICTITIOUS VENDORS:

Promoter of Company X floats Vendor Y. Except Vendor Y exists only on paper. Company X shows it is paying the vendor for goods supplied. Money goes to promoter via vendor.

How Much of it is There and Where is it?

Given the secrecy behind such Also, Dev Kar, lead economist with transactions, it is next to impossible Global Financial Integrity, a proto estimate the quantum of black gramme of a think-tank, estimates money with any degree of accuracy. that about $462 billion of black mon-By one estimate, half of India’s ey has moved out of India between economy was the shade of black. In 1948 and 2008, much of which has 2008, that would be $640 billion. gone into tax havens.

What are Tax Havens?

These are territories that provide ‘an easy and safe’ environment for money. Easy because they have very liberal tax rates, which incentivises the world’s biggest corporations and richest individuals to host their wealth and direct their investments from there. Safe because such territories neither ask depositors questions on where their money came from nor do they easily share account information with other countries, which is a big draw for black money. In 2000, the Organisation for Economic Co-operation and Development (OECD), a 34 member group consisting mainly of developed nations, classified 37 territories as tax havens. This was based on its four-point definition of a tax haven:

• No or nominal taxes

• No effective exchange of information with other countries

• Lack of transparency

• No substantial economic activities

OECD has since pared down the list of 37 to nil -- there are no tax havens now! That reading of OECD draws from a technical definition rather than an operational one. In 2002, to combat illicit capital flows to tax havens, OECD released a tax standard, endorsed by the United Nations and G20, on exchange of information. Its crux was that, under certain conditions, if a government seeks specific information from these territories on a depositor, they should provide it. All 37 locations have agreed to share information and are on a signing spree with countries. India has signed 10 such agreements. However, the information sharing is not a blanket one. So, India cannot ask, say, Mauritius for all information on accounts held by Indian depositors. What it can ask for is information on a particular individual, that too after establishing to the authorities in Mauritius that it has good reason to ask -- for example, a tax evasion probe against the person. The limited scope of information sharing means the locations remain a tax shelter, both for accounted and unaccounted wealth.

How Does Black Money go From India to Tax Havens?

Again, there are ways and ways. Here are two -- one internal and another external. First, the internal route. Say, a promoter has siphoned off Rs 10 crore from his company. He sets up several shell companies and opens many bank accounts in their names. He starts depositing cash in these accounts; the size of the deposits is small enough to escape regulatory attention. These are then wired to accounts in the tax havens. Then, the external route, which is also called the hawala route. A parallel foreign exchange market works to enable such conversions. The promoter gives Rs 10 crore to a hawala operator in India. Through his links with operators in other countries and a series of transactions, foreign currency gets deposited into the promoter’s bank account in a tax haven. The hawala operator charges 2-3% of the transaction amount as his fee; more if the transaction is complex.

How Does it Come back To India?

The money lodged in tax havens is invested in India, either in stocks, real estate, business or other assets. The circle is complete. Black has become white, without paying a penny in tax (otherwise, they would have paid the peak rate of 30% for individuals and 35% for companies). Even on subsequent earnings, this money won’t pay any tax. That’s because most of these tax havens have a double tax avoidance agreement (DTAA) with India – their income can be taxed only in one country. So, this money doesn’t pay tax on its earnings in India. It is accounted for in its resident tax haven, where the tax rate is, typically, zero. So, in the worst case, that sum of money evades the 30-35% tax in India on its creation (black) and avoids the 10-35% tax in India on investment (white). Now that they money is white, it can be freely repatriated. Sub-accounts of participatory notes (PNs), created by foreign institutional investors (FIIs), are said to be rampant carriers of black money. In a paper, titled, ‘tax havens can destabilise our financial markets’, R Vaidyanathan, professor of finance, Indian Institute of Management, Bangalore, wrote: “The sub-accounts created by FIIs for nameless entities are fraught with dangerous consequences and security risk. The sources of these funds are unknown; the investors are nameless; and billions of dollars invested through PNs are address-less.” Last year, FIIs invested $35 billion in India.

What is The Government Doing?

It’s doing things here and there, but the results are hardly a reflection of the magnitude of the black money menace. India amended the Prevention of Money Laundering Act (PMLA) in 2009, which criminalises money laundering, and allows enforcement authorities to seize funds obtained from illegal activities. So far, the government says, it has recovered Rs 15,000 crore from India. Outside India is a different story. The government was handed details of 20-odd accounts held by Indians in Liechtenstein, in Europe. This happened when Germany bribed an official in LGT Bank in Liechtenstein to reveal details of account holders. India lobbied with Germany to access details of the Indians in that list. The matter is stuck there. After OECD put an informationsharing standard in place, countries have signed about 500 tax agreements. India has prioritised the signing of tax information exchange agreements with 22 tax havens; 10 agreements have been signed and four more are under negotiation. According to an OECD presentation in December, subsequent to signing information exchange agreements, Italy has collected 5 billion euros and Germany 4 billion euros. These are just two instances. The onus is on governments, including India’s, to make a case and demand information from the tax havens.

Which are The Prominent Tax Havens?

The graphic outlines details of 14 prominent tax havens Indians take shelter in. Four things are endemic to these havens. One, several have a British connection, either as its colony in the past or as its territory in the present. Two, their economy runs on two things: tourism and banking. Three, their banking assets are a disproportionate multiple of their GDP, which shows their popularity as offshore banking destinations. Four, their tax rates are nil or minimal, and secrecy of clients is a declared objective, though it is being chipped away at.

JPC

Know and understand what is Joint Parliamentary Committee (JPC)?
Let us understand what is Joint Parliamentary Committee (JPC)?

In India we got many types of inquires, methods are good but final aim of this committees is that
No Punishment but these inquires are good to expose corrupt people or for entertainment.



Joint Parliamentary Committee is appointed to look, inquire into particular matter or subject or fraud, something which is important for nation.

How Joint Parliamentary Committee is formed?
What is the procedure to form Joint Parliamentary Committee?

Joint Parliamentary Committee is formed when motion is adopted by one house and it is supported or agreed by the other house.

Another way to form a Joint Parliamentary committee is that two presiding chiefs of both houses can write to each other, communicate with each other and form the joint parliamentary committee.

How many persons can be members of Joint Parliamentary committee?

The rule is simple -
The Lok Sabha members are double compared to Rajya Sabha.
Example –

If Joint Parliamentary committee has 10 Lok Sabha Members then 5 members will be from Rajya Sabha and total member of JPC will be 15.

The strength of a JPC may be different each time.

When the first Joint Parliamentary committee was established?

On August 6, 1987 the first JPC was instituted to inquire into the Bofors contract
on a motion moved by then defence minister K C Pant in the Lok Sabha.
The JPC submitted its report on – 26 April 1988
India got nothing after JPC in this case.
In this JPC inquiry opposition parties boycotted this inquiry and report was tables but again opposition parities rejected the JPC committee report.
Indian tax payer’s money and time was wasted.

The 2nd JPC was formed to inquiry into Harshad Mehta scandal.
The recommendations of the JPC were neither accepted in full nor implemented by the government of India.
Again 2nd time Indian tax payer’s money was wasted and time was wasted.

3rd JPC was set up to inquire into Stock Market Scam.
Chairman of this committee – BJP member Lt Gen Prakash Mani Tripathi
Report Submitted on – 19 December 2002
What happened after this JPC report?
Report was not implemented
Again tax payer’s time and money was wasted.

4th last JPC was formed to inquire into pesticide residues in soft drinks, fruit juice and other beverages and to set safety standards.
Committee Head was NCP chief Sharad Pawar
Submitted Report on 4th February 2004
Committee found soft drinks got, contain pesticides.

But again we Indians got nothing again waste of time and waste of money and again we demand JPC without demanding changes in JPC working and JPC powers.

Please remember the laws are made in such a way that today or tomorrow or day after tomorrow any JPC or PAC may be formed we Indians will get nothing.
The rules are made in such a way that criminals should enjoy them.
And honest people should fear them, without doing anything land up in jail.


What are the powers of Joint Parliamentary committee?

1.JPC can collect oral or written evidence from the experts.

2.The proceedings of parliamentary committees are confidential. Please note in majority nations this type of committees work in open and day to day there work is available for public. Only corrupt nations need confidentiality.

3.Normally ministers are not called to give evidence

4.SM – Ministers are gods how can they cheat the nation? Even if they cheat it is there birth right to cheat the nation.

5.JPC can inspect all documents related with the inquiry.

6.JPC can invite interested parties for inquiry.

7.JPC can send summons to people to appear before them, if person does not obey summons it is considered as contempt of House.

8.The Speaker has the final word on any dispute over calling for evidence

9.Against any individual or production of a document, even government can deny access to documents if government feels it is related with safety of state. What is safety of state? Only God knows.

I feel that following new powers should be given Joint Parliamentary Committee
Following new laws or amendments or sections should be added to the powers of JPC.

1.JPC should work openly

2.JPC should put all documents and evidence daily on internet.

3.JPC should finish inquiry in 1 month.

4.It should be compulsory on government to follow recommendations given by JPC.
If government wants they can approach to Supreme Court. It should be compulsory for SC to give judgment in 1 week in this type of cases.

5.JPC should get power to arrest any Minister exception should be Prime Minister.

6.During JPC probe no political party should be allowed to withdraw support of Government if they do so the party should get automatically banned forever without any appeal and they should be debar to contest any public or private elections for next 25 years.

Resisting a JPC probe into 2G spectrum

Parliament has been stalled for 21 working days by an angry opposition demanding a JPC probe into the 2G spectrum scam, making it one of the most unproductive sessions ever.

The Congress is unbending in its stance that the investigation into the 2G scam through the Public Accounts Committee (PAC), headed by a member of the opposition, is adequate. Telecom minister Kapil Sibal only concedes to a parliamentary debate, which he says will allow for “doodh ka doodh aur pani ka pani”.

One of the worst outcomes of this stalemate is that it is tarnishing India’s reputation as a long-term investment destination. There is no discounting the value of parliamentary debate, but the truth is that a JPC can work just as well in parallel with a parliamentary debate as a PAC can. So why is the Congress using all its firepower to resist a JPC probe?

The most important reason is that Prime Minister Manmohan Singh is linked to the controversy. The PM initially made an attempt to point former telecom minister A Raja towards auctions and market benchmarking of spectrum prices. However, subsequent correspondence between the two reveals that Raja informed the PM in detail about his spectrum allocation policy, which he subsequently implemented without any resistance from the PM.

Raja’s legal advisers have accentuated this omission by the PM by filing an affidavit in the ongoing PIL in the Supreme Court, stating that the PM knew about every single development and there was no difference in opinion between the PM and Raja on how spectrum was to be allocated.

First, since the scope of a JPC is far larger than that of a PAC, this could lead to the PM being asked to explain why he eventually did not restrain Raja. This by itself is the biggest threat that a JPC poses to the Congress.

Second, the PM’s culpability is compounded by the culpability of the Cabinet. On December 26, 2007, just before allocating 122 LOIs for spectrum at 2001 prices in 2008, Raja wrote his last letter to the PM briefing him about his discussion with senior Cabinet colleague Pranab Mukerhjee and former solicitor general, Goolam Vahanvati (now attorney general). A JPC, unlike a PAC, would cross-examine Mukherjee on the nature of this discussion and whether the allocation of spectrum on a first-come-first-served basis using an illegal cutoff date for applications was with his explicit agreement as Raja claims. Since Mukherjee was additionally head of the GoM that was looking into spectrum issues, his culpability is accentuated further.

Third, a letter from former finance secretary and present RBI governor, D Subbarao, in November 2007 expressing shock over Raja’s proposal to distribute spectrum in 2008 at 2001 prices and asking him to hold off the process of spectrum allocation, implies that he could not have written this letter without the knowledge of then finance minister, P Chidambaram. So in addition to Singh and Mukherjee, Chidambaram could also be questioned on how this instruction was reversed on his watch.

Fourth, a JPC would question why the law ministry refused to give an opinion to Raja on the policies he sought to implement and on November 1, 2007, recommended instead that the matter be sent to a GoM for consideration. However, Raja told the PM in his letter of December 26, 2007, that he did have legal opinion, or “advice” as he called it. DoT’s affidavit in the SC confirms that legal advice was received. How did the solicitor general give him legal advice against the specific advice of the law minister who had denied him any legal opinion?

Finally, there is the issue of the JPC taking on the job of supervising investigating agencies. The SC is well equipped to supervise the CBI investigations, but a JPC in the supervisory role would be far more potent.

This is because, while the SC is dependent on facts presented by lawyers, the JPC can source information from a variety of sources, including experts, lawyers and the media. The 2G scam includes issues of illegality, policy formulation, equity, corruption and procedural violations that may or may not be presented to the SC. The JPC will, however, have endless powers and resources to accumulate this information and to direct depositions/investigations.

From the Congress point of view, a JPC even with Congress chairmanship is an uncontrollable beast, as it will also include members from the AIDMK, BJP and Left parties, who will diligently persevere to expose Raja’s wrong doings.

Clearly, a PAC is by far the softer option while a JPC can expose the government beyond repair by bringing the heat on several Cabinet ministers and law officers. That’s why it is so important for the government to scuttle the demand for a JPC at any cost. For the Congress to push the softer option could also be a worrying indicator of its intent to sweep the scam under the carpet. This could be crippling for a country making feeble attempts to fight corruption and tyranny.

Sadly, this Parliament session may end without a JPC or even a decent debate, giving an apathetic India exactly what it deserves.

Gross Domestic Product (GDP)

list of countries of the world sorted by their gross domestic product (GDP)

Rank Country GDP (millions of USD)

— World 61,963,429

— European Union 16,106,896

1 United States 14,624,184

2 China 5,745,133

3 Japan 5,390,897

4 Germany 3,305,898

5 France 2,555,439

6 United Kingdom 2,258,565

7 Italy 2,036,687

8 Brazil 2,023,528

9 Canada 1,563,664

10 Russia 1,476,912

11 India 1,430,020

INDIA'S civil nuclear agreement

INDIA'S civil nuclear agreement

The countries with which India has signed similar pacts are Russia, the United States, France, Mongolia, Argentina, Kazakhstan, the United Kingdom and Canada. Some are pure fuel supplies pact while others include all aspects of the relationship such as fuel supply, R&D and setting up of civil nuclear plants. The pact with South Korea will focus on the last two aspects.

The civil nuclear pact was a result of the all-round comprehensive relationship being forged by India with East Asian and South East Asian countries. India has signed a Comprehensive Economic Cooperation Agreement (CEPA) with South Korea which, in the first full year of operation in 2010, led to a 46 per cent growth in trade.