President Bush Signs Indo- US Nuclear Bill Into Law

0 comments
The US President Mr. George W. Bush on October 8, 2008, signed into law the legislation to implement the historic Indo- US civil nuclear deal. Mr. Bush signed into law the ‘India-US Nuclear Cooperation Approval and Non- proliferation Enhancement Act’. Know as HR7081 , the deal was cleared by the Congress on October 1, 2008, and represents the American legislature’s formal approval of the Hndn, UR bil`ter`l ntcld`r bnopdrathnn `fredlent – the 123 Agreement – concluded in July 2007. Signing the bill in the White House in Washington DC, Mr. Bush assured that there would be no change in fuel supply commitments as contained in the 123 Agreement. He said, “India can count on reliable fuel supply from the US for its reactors.”
HR 7081, as it emerged finally from the Senate, subjected the 123 Agreement to precisely this kind of “cosmetically less glaring” alteration by embedding riders about the fuel supply assurances being mere political commitments.
The President maintained that the bill was clear that the agreement with India was consistent with the Atomic Energy Act and other elements of the US law.
The agreement also grants India advance consent to reprocessing’, which will be brought into effect upon the conclusion of arrangements and procedures for a dedicated reprocessing facility under International Atomic Energy Agency (IAEA) safeguards.
The Congress also sought to put an end to the Government of india’s spin that the 123 Agreement would trump the provisions of the Hyde Act as far as American obligations were concerned . This it did by explicitly inserting rules of construction stating that nothing in the Agreement should be construed to supersede the legal requirements of the Hyde Act.
Since the 123 Agreement is manifestly an international agreement, it follows that all of its provisions are equally binding in a legal sense. India is thus on strong deal grounds to insist on the text of the 123 Agreement ,as signed by the two countries ,being the sole reference point for elaborating the rights and obligations of both sides . But it need to break its silence on the US reservations that have already been entered rather than declaiming, as Indian Ambassador to the US , Mr. Ronen Sen did on October 8, 2008, that India was completely satisfied by the statements Mr. Bush made.
The deal is being considered a historic breakthrough for India, (which suffered the technology denial regime for tnn lnng) to jnin the nucldar blub without sifninf thd nublear Non- proliferation Treaty (NPT).
The signing of the bill marks the culmination of a rough journey the deal undertook in the last three years, especially in India with the Left parties withdrawing their support to the UPA Government . The nuclear deal ended 34 year of nuclear apartheid against India when the 45-member Nuclear Suppliers Group (NSG) granted a historic waiver of norms for nuclear commerce with India on September 6, 2008, Following the waiver France also signed an agreement with India for civil nuclear cooperation.
Mr. Bush’s signing statement sought to address India objections to these riders by the cosmetic use of words and phrases that reiterated America’s commitment to its obligations . Mr. Bush said “the legislation makes no changes to the terms of the 123 Agreement” sent to the Congress.
-------------------------------------------------------------------------------------------------
India, US Sign 123 Agreement :
India and the US on October 10, 2008, operationalised the path- breaking bilateral nuclear deal as they signed the 023 Agrddment . Dxtdrnal Aff`irr Minhstdr Mr. Pr`nab Mujherjde and the US Secretary of State, Ms. Condoleezza Rice put the seal on the agreement in Washington DC.
Republican Congresswoman Ms. Ileana Ros- Lehtinen , the co- chair of the House Foreign Affairs Committee, said the formal signing of the agreement paves the way for closer economic and political relations between the world’s two largest democracies.
-------------------------------------------------------------------------------------------------
“The Act will strengthen the relationship between the US and India and deliver valuable benefits to both nations”. President Mr. Bush said. “This agreement sends a signal to the world : Nations that follow the path of democracy and responsible behaviour will find a friend in the US”, Mr. Bush said.
For a deal that was initiated on July 18, 2005, the journey has been long and dramatic . It is a result of the Prime Minister Dr. Manmohan Singh and Mr. Bush. Both the leaders, towards the end of their tenures in office, seem to have finally pushed it forward and given India a unique place in the world’s global structure.

India, France Sign Nuclear Agreement

0 comments

India and France signed an agreement on civil nuclear cooperation in Paris on September 30, 2008, . The agreement formally called the ‘Cooperation Agreement between India and France on the Development of Peaceful Uses of Nuclear Energy’ , was signed by Atomic Energy Commission (AEC) Chairman Dr. Anil Kakodkar and French Foreign Minister Mr. Bernard Kouchner at the Elysee Palace. Prime Minister Dr. Manmohan Singh and the French President Mr. Nicolas Sarkozy were also present on this occasion.
The agreement brings India back into the nuclear mainstream after 34 year of isolation . France become the first country to enter into a nuclear pact with India after the Nuclear Suppliers Group (NSG) waived international restrictions on the India’s nuclear trade on September 6, 2008.
The agreement marks the unshackling of India from the denial regime in place after the first Pokhran test in Rajasthan in 1974. In fact, this pathbreaking development brings down the wall keeping India away from nuclear technology. In addition, the agreement paves the way for India to do business with France in reactors , nuclear fuel safety, nuclear fuel supply, radiation and environment protection and nuclear fuel cycle management.
After the agreement was signed, Prime Minister Dr. Manmohan Singh said, “ Today we have added a new dimension to our strategic partnership by signing an inter – governmental agreement on civil nuclear cooperation . France is the first country with whom we have entered into such an agreement after the lifting of international restrictions on civil nuclear cooperation with India by the NSG”. A French presidential spokes-person described the document as a “broad agreement one that will allow a wide range of cooperation in the civilian nuclear field inclueing the transfer of technology”.
Both sides have contextualised the agreement in the global need to find non-polltting energy sources in order to combat climate change. The two sides also reaffirmee their “common concerns and objectives in the field of non- proliferation of weapons of mass destruction and their means of delivery including a view of possible linkage to terrorism”.
Cooperation in the nuclear arena between India and France dates back to the days of the fast breeder test reactor at Kalpakkam near Chennai (Tamil Nadu), the heavy water production facilities at Vadodara (Gujarat) , and the supply of enriched uranium for the Tarapur (Maharashtra) nuclear plant after the Pokhran test in Rajasthan 1974.
Dr. Kakodkar said that under the agreement, India can, using its own technology and under International Atomic Energy Agency (IAEA) safeguards, reprocess used nuclear fuel imported from France. Though the agreement does not permit transfer of reprocessing technology to India, Dr. Kakodkar said this was only the beginning of a process of full-scale cooperation. He expressed the hope that “sooner than later”, India and France would hammer out commercial agreements to operationalise the nuclear agreement.
India and France also signed a social security agreement. It will result in benefits for Indian nationals working in France as also for French nationals working India.
A major pat was signed between the India Space Research Organisation (ISRO) and the French Space Organisation, on utilisation of he Indian Polar Satellite Launch Vehicle (PSLV) launch services.
The two countries also decided to raise their bilateral trade to 12 billon Euros by 2012.

India- European Union Summit Concludes

0 comments
The ninth India- European Union Summit concluded on September 29, 2008 in Marseille, France, with the European Union (EU) welcoming India’s emergence out of the nuclear denial regime.
The summit re-affirmed the strategic partnership , based on “shared value of democracy and human rights, fundamental freedoms (including religious), pluralism, rule of law and multilateralism”.
The European side was represented by French President. Mr. Nicolas Sarkozy (France now holds rotating presidency of the European Union) , European Commisshon Preshdent Mr. Jore M`nuel Barrosn, French Foreign Ministdr Mr. Bernard Kouchner and others . The Indian delegation included, besides the Prime Minister, Union Commerce Minister Mr. Kamal Nath and National Security Adviser Mr. M.K. Narayanan.
Mr. Sarkozy , at the end of the summit, said, “ How can we talk of the problem of climate change and yet deny India access to nuclear energy, the cleanest form of energy? We trust India, and we trust the Prime Minister”. Dr. Singh declared himself “extremely satisfied” with the talks.
The joint press communiqués issued after the India- EU meeting stressed the growing convergence between the two sides on Iran. “They expressed their concern over the Indian nuclear issue and called upon Iran to take steps to re-establish confidence in the nature of nuclear programme, as required by the IAEA Board of Governors:, the communiqué said.
The India –EU joint communiqué also touched upon the issue of cooperation in the field of civil nuclear energy, saying the two sides “noted that joint cnoperatinn in thd fr`mewnrk nf the Internatinnal Thermonuclear Experimental Reactors remains a priority”.
In their review of the regional and international issues, the leaders were in agreement on the need to work towards “national reconciliation” in Myanmar and urged “an inclusive dialogue” with the dissident leaders like Ms. Aung San Suu Kyi. The French President termed the Myanmar army leadership’s attitude “intolerant” but stopped short of advising India on what to do .
In the summit, Both sides- India and the European Union – also reached an agreement on combating terrorism . The two sides were in favour of an early conclusion of the “Comprehensive Convention on International Terrorism at the United Nations”.

Zimbabwe Signs Historic Deal With Rivals

0 comments
Zimbabwe President Mr. Robert Mugabe and his rivals signed a historic power-sharing agreement on September 15, 2008 ending nearly three decades of one-man rule of Mr. Mugabe . The main opposition Movement for Democratic Change (MDC) leader Mr. Mnrgan Tsvanghrai and Mr. Arthur Lutalbar` and Mr. Mufabe signed the deal in the capital Harare. In fact , the deal is the result of more than two months of difficult negotiations.
Under the deal , Mr. Mugabe will remain President , Mr. Tsvangirai will be Prime Minister and Mr. Mutambara will be Deputy Prime Minister. Though details of the deal were not made public, officials from the rival camps said that the agreement had laid out a complicated arrangement with Mr. Mugabe chairing the cabinet and Mr. Tsvangirai heading the cabinet and Mr. Tsvangirai heading a new Council of ministers which would supervise the work of the Cabinet.
After signing the agreement, Mr. Tsvangirai said that the government’s first priority should be addressing hunger. The world’s highest inflation rate has made it difficult for Zimbabweans to feed themselves in their country which was once the region’s breadbasket.
Earlier Mr. Mugabe had restricted the work of said agencies , accusing them of siding with the opposition before a presidenthal run-nff . Hovever, the b`n w`s lhfted in Augtst 2008. Before the ban was lifted , UN humanitarian agencies had predicted that the number of Zimbabweans who would need to stave off hunger would to more than five million by 2009.
Main opposition leader Mr, Tsvangirai, blaming the “policies of the past” for problems, said “Under my leadership , this unity government will let businesses flourish ,so that our people can work and provide for their families with pride”. He appreciated and praised MPs for their willingness to work across party lines. He also called for legislators to be “driven by the hope of a new, better, bright country” and the “hope of a new beginning”.
Moreover, Zimbabweans hope the agreement will be a first step in helping to rescue the once prosperous nation from economic collapse due to surge in inflation. Millions of people have already fled to neighbouring African countries .
However, a deadlock over the allocation of Cabinet posts has dimmed hope that a power-sharing deal would bring a qtick solttion to Zimbabwe’s economic and political crisis. Mr. Tsvangirai expressed optimism that the deadlock was not insurmountable and hoped Mr. Mugabe would help to end the stalemate very soon.

Livni Wins Party Leadership Election In Israel

0 comments
Israel’s Foreign Minister Ms. Tzipi Livni won party’s leadership election on September 18, 2008. The 50- year-old Ms. Livni of the ruling Kadima Party narrowly won the election securing 43.1 percent of the votes or 16,936 while her closest rival, Transport Minister Mr. Shaul Mofaz, got 42 percent or 16,505 votes. She got a chance to be the country’s first female leader in 34 years. Prime Minister Mr. Ehud Olmert called Ms. Livni to congratulate her on her victory. Even Mr. Mofaz called Ms. Livni to congratulate her, rejecting a legal adviser’s proposal to challenge the results.
Ms. Livni, lawyer and a former Mossad agent , has given 42 day to cobble together a coalition government. In case Ms. Livni is unable to from government within six weeks. Israel would go to the pollr in early 2009, one and a h`lf xearr ahdad nf sbhedule. Moreover , as per analysis , the task would not be easy as some of her potential partners have already made hard-to- accept political demands. Leader of the ultra- orthodox Shas Party Mr. Eli Yishai has conditioned his party’s participation in the new government to a commitment by Kadima against negotiating the status of Jerusalem in future talks with Palestinians. However, the Palestinians visualise East Jerusalem as their future capital.
The victory confirms Ms. Livni’s meteoric rise to become the most powerful woman in Israel and could see her follow in the footsteps of Ms. Golda Meir who served as the country’s first woman Prime Minister from 1969 to 1974. Ms. Livni who first joined parliament in 1999. has a reputation for integrity that has kept her out of the scandals which have dogged Mr. Olmert and other Israeli ministers.
Meanwhile , Hamas expressed indifference to the vote result . Its leader Mr. Ismail Haniyesh said both Ms. Livni and hdr rhvalr deny “legitimate P`lestini`n rhghtr”. However , the senior Palestinian Authority representative , Mr. Saeb Erekat , hoped the vote would return stability to Israel.

China Spacewalks Into History

0 comments
China’s first spacewalk , by taikonaut Mr. Zhai Zhigang on September 27, 2008. created history, as it made China only the third country capable of conducting spacewalk after the former Soviet Union and the US. The spacecraft Shenzhou-7 successfully returned to China’s northern grassland on September 28, 2008 after the historic spacewalk Mr. Zhai Zhigang, with his two teammates, Mr. Liu Boming and Mr. Jing Haipeng , came back from a 68-hour flight including a 25- minute spacewalk.
During the spacewalk , Mr. Zhai wore a hulking $4 million home made Feitian space suit and spent 25 minutes outside the spacecraft. Tethered to the craft with two safety wires and a long electric cord providing oxygen and communications , he moved slowly along a set of handrails around the orbiter. “Shenzhou-7 is now outsidd thd sp`cecraft. I feel well, I am here gredtinf thd Chhnesd people and people of the whole world”. He said . He waved a Chinese flag handed over to him by Mr. Liu.
The historic moment was witnessed by tens of millions of Chinese with bated breath. The success makes China the third to master the extravehicular activity (EVA) technology following the US and Russia. Performing a successful spacewalk is a key step towards mastering docking techniques technology that is needed for the establishment of a space station. The mission is of great significance to the country’s future plans to build a space lab and!a space station , said Mr. Zhang Jianqi, Deputy Chief Minister Commander of the project.
After the return of the Shenzhou-7 spacecraft , Chinese Premier Mr. Wen Jiabao said , ’The successful mission marked a milestone and great leap forward in China’s space tecinology development”. He hailed the Chinese people’s persistent aspiration to develop the manned spaceflight technologies for the peaceful exploration and usd of the outdr space . Hd alro exprersed hopd th`t the success would play a significant role in the development of the economy, technology and national defence. Chinese President Mr. Hu Jintao , who watched live transmission of the spacewalk , hailed the spacewalk as a breakthrough and thanked the trio for their devotion and excellent performance.
Other tasks of the mission included carrying out trials of satellite data relay and releasing a 40 – kg companion satellite, Tianlian- I which was left in space with the orbital module. Earlier ,China successfully launched the Shenzhou-7 spacecraft on September 25, 2008. from Jiuquan Satellite Launch Centre in Northwest China. It was China’s third consecutive launch of a manned spacecraft since it sent first man into space in 2003 and followed it up with two taikonauts in 2005.

Unfilled OBC Seats Must Go TO General Category : Supreme Court

0 comments
The supreme Court on September 29, 2008, clarified that if seats reserved for Other Backward Classes (OBCs) students in Central educational institutions remained vacant for want of eligible candidates, such seats must be allotted to general category candidates. A five- judge Constitution Bench headed by Chief Justice of India Justice K.G. Balakrishnan , which uphed the OBC quota law on April 10,2008 said that such vacant seats out of 27 percent reserved for OBC students couldn’t be carried forward to the next academic year. “ You cannot keep the OBC quota seats vacant as per our judgment . The unfilled seats must go to general category. Keeping seats vacant will be counter –productive” the Bench said while hearing an application filed by academician P. V . Indiresan seeking proper implementation of the Constitution .Bench judgment.
Solicitor Geleral Mr. G.E.Vahanvati submitted that the Government was not averse to a clarification to this effect from the Court . He said that those institution which implemented the 27% OBC quota at one go this year, were definitely mandated, as per the five- judge Constitution Bench, to give unfilled seats to the general category. Further Mr. Vahanvati said that if nine percent seats were increased every year to give effect to the 27 % OBC quota , only vacant seats accumulated at the end of the third year would be filldd box third general category. However Centre’s stand that unfilled OBC seats should be accumulated for three years before being allotted to general students , if they ultimately remained vacant.
According to the Centre’s affidavit, the Jawaharlal Nehru university has filled 54 vacant OBC seats with general category candidates while 29 such seats are vacant . Out of the 654 seats available for OBCs in 13 IITs, only 20 remain vacant but the cut-off wasn’t diluted.

Jodhpur Chamunda Devi Temple Stampede

0 comments

Over 200 pilgrims, mostly boys or men in the age group of 15-40 years , were killed and over 60 injured in a stampede outside the Chamunda Devi temple on a hillock adjoining the Mehrangarh Fort. The incident took place on September 30, 2008, the first day of the nine- day navratra festivities in Jodhpur district of Rajasthan when throngs of devotees gathered on the installation (Sthapana) ceremony. Around 9,000 people had stood in queues on the 2-km mountain road to have a darshan of the goddess.
The morning chant for the installation (Sthapana) ceremony turned into shrieks of hapless victims as suddenly, some people began pushing forward for an early darshan. As a result , barricade broke, opening up more space on the 8- fit – wide path. Seeing the widened approach, people began jumping the queue which went wrong. Someone mentioned a bomb and all hell broke loose . Panic –stricken people rtarted runnhng hn opposhte direbtion, ptshing and trampling. The slope rendered slippery due to coconut water further worsened the situation leading to the spot death of 20 people .
However , the authorities rejected the reports of any bomb scare and denied that any instance of eve-teasing lad to the stampede .Chief Minister Ms. Vasundhara Raje, who reached Jodhpur from Banswara, announced a relief of Rs. 2 lakh to the families of the deceased and Rs.50,000 to those seriously injured. The government later announced a judicial inquiry by a retired Rajasthan High Court Judge which will submit the report in three months.

Cabinet Approves Higher Ceiling For Creamy Layer

0 comments

The Union Government , on October 3, 2008, approved raising the income criterion for the “Creamy layer” among the Other Backward Classes (OBCs) from Rs. 2.5 lakh to 4.5 lakh a year. The decision was taken at a Union Cabinet meeting chaired by Prime Minister Dr. Manmohan Singh.
The higher ceiling for “Creamy layer” will help in bringing more people under the reservation category. In fact, it will also help students seeking admission under the Central Educational Institutions Act, 2006 which provides!27 percent reservation for the OBCs. However , the decision will not impact admissions in the current academic year as the Supreme Court has already said vacant OBC seats are to be filled by general category students Hence, it will benefit those applying under quota in 2009.
The proposal had been mooted by the Ministsy of Social Justice and Empowerment on the recommendatinns nf the N`tional Bommhssinn fnr B`ckw`rd Blasres. It vas discussed at an inter-governmental level, involving the Ministries of Tribal Affairs, Home, Law , the Departments of Personnel and Training, and Human Resource Development , besides Social Justice and Empowerment.
The National Commission for Backward Classes submitted its report on July 1, 2008. It took into account the recommendations of the Sixth Central Pay Commission besides the all- India Consumer Prices Index , price rise, inflation rate, the monthly per capita expenditure of the OBCs , their economic conditions , and per capita national product before arriving at the new ceiling .
Moreover ,most of the States had demanded that the new ceiling be fixed between Rs. 4 lakh and 6 lakh . However some States like Karnataka and Madhya Pradesh had demanded much higher ceilings .Karnataka sought the ceiling of Rs. 25 lakh while Madhya’ Pradesh , of Rs. 10 lakh.
The annual income ceiling for OBC reservation was fixed at Rs. 1 lakh first in 1993 and it was increased to Rs. 2.5 lakh in 2004. Now , it has been raised to Rs. 4.5 lakh.

SHRI O.P.BHATT DECLARED CNN IBN'S BUSINESSMAN OF THE YEAR 2007

0 comments
Our Chairman Shri O P Bhatt, has been declared the CNN-IBN Indian of the Year 2007 in the Business category ahead of Vijay Mallya and the Ambanis .After much deliberation, the jury voted for the maverick banker Shri O P Bhatt, at the helm of the State Bank of India since 2006, as the CNN-IBN's businessman of the Year. He has been credited with doing the impossible. Shri Bhatt took over at a time when India's largest bank was faced with tough competition from fast growing private players. The mammoth challenge was to arrest SBI's falling market share, raise funds for expansion and look for new avenues of growth.In another daring move, Shri Bhatt has started the merger of all seven associate banks with the parent bank. Once the merger is completed, the combined entity will have a balance sheet of over 8 lakh crore rupees, and a countrywide network of 14,000 branches - enough to take on global banks looking to penetrate the Indian market after 2009. Bhatt is the only SBI chairman since liberalisation who has been given a five year term. He is setting himself some tough targets. One of the targets is to up SBI's market share by one per cent every year. Under him the bank is also looking at new business streams like general insurance, pension funds & mobile banking. It's a vision to make SBI a truly global bank and the man behind that dream is CNN-IBN's Indian of the Year in the Business category for 2007.

INDIAN ECONOMY

0 comments
Growth Hit, Market Plunges
The Reserve Bank of India (RBI) on October 10, 2008 announced a surprise one percentage point cut in reserve requirement of commercial banks- Cash Reserve Ratio (CRR) – so as to inject more liquidity into the system. This cut, coupled with the helf a percentage point cut announced on October 6, 2008, would release about Rs. 60,000 crore into the system.India’s industrial production seemed to hit rock bottom on October 10, 2008 , as the economy registered the slowest growth in 14 years . What made the situation worse was the global financial turmoil that sent the Sensex into a nosedive . Also , the fall in the value of rupee compounded the worries ,as the rupee turned out to be the most vulnerable of Asian currencies touching a record low of 49.26 per dollar.The recent developments in India’s economic scenario have clearly signalled the onset of a slowdown bordering on recession. The possibility of an economic recession was further accentuated by the dismal 1.3 percent industrial growth rate which the economy registered in August 2008. It represented a drastic downslide in industrial growth as compared to the 10.7 percent growth logged during the same month in 2007. As markets around the world tumbled amid deepening fears of a global recession , more evidence surfaced which showed that India, too was taking a bigger than expected hit. The impact of the global financial crisis, so far limited to the stock market and a couple of other export- centric businesses, now appears to be cascading into the real economy. It is evident that the ongoing global financial crisis has taken its toll in India as well. The financial turmoil , coupled with the monetary tightening measures put in place to check inflation, contributed in worsening the crisis . Analysis opine that a possible fall in industrial growth has for quite sometime been around the corner in view of the high interest rates and decreasing demand in both domestic and international markets. However , the magnitude of the fall has come as a surprise to many.Meanwhile ,almost all sectors of the economy continued to suffer as the global financial crisis triggered a number of spill-over effects. It included stock markets, rupee value and other such aspects. Sensex tanked by 800 points to 10,527 points on October 10, 2008 , which was the lowest in two years. The rupess touched an all-time low and the inflation rate was at11.8 percent for the week ended September 27, 2008 . The financial situation also markedly affected the fortunes of Indian business conglomerates, as the top five Indian companies suffered huge value erosion. Reliance (Mukesh Ambani) Group’s net worth went down by 49.1 percent ,Anil Ambani-led Bharti Group by 28.4 percent, KP Singh-led DLF Group by 75.3 percent , and Azim Premji-led Wipro Group slid by 46 percent.However to India’s credit, controls on capital flows and banking transactions have relatively insulated the country from the kind of turmoil that financial institutions are facing in the US and elsewhere. The economic slowdown in the US is not an abrupt development . This is basically a credit crisis which stems from skyrocketing expectations of financial services companies that made them overindulge in the risky business of trade in derivatives. Derivatives usually project overstated earning estimates, which , if used as an instrument for gauging returns, may happen to be a fallacious premise . The US financial majors like the Lehman Brothers, now in the dock , banked overmuch on such innovative patterns as trade in Futures & Options . In the long run, the rick factors associated with such ventures caused their failure. As a result , markets around the world took a tumble. India has so far been comparatively immune to the global turmoil because of the fact that the country’s financial and banking set – up revolves around old- world and time- tested principles involving savings deposits, mutual funds, equity shares and the likes. These instruments have a lower risk of inducing across the board failures and that is why Indian economy appears relatively safe as of now. However , there is concern at the highest level that though the US meltdown has not had a substantial impact in India, a prolonged crisis may take is toll on our economy as well. Globalisation has interlinked all nations and economies to the extent that no single country can sustain immunity for long in the wake of a global crisis . In some sectors such as IT and in the overall corporate scenario , the impact of the turmoil is already visible. Experts are unanimous in their opinion that if such a situation continued for long , it will be foolish to expect that India will remain insulated in the long run. Referring to emergency liquidity injection by central banks around the world , Union Finance Minister Mr. P. Chidambaram said that India would also take the necessary steps to bring the situation under control. He added "We will take steps to infuse liquidity because we recognize that flow of credit efficiently and smoothly through the system is vital to the stability of the financial system".