On Inflation its Causes and suggestions

I had  stated in my earlier report   that India’s has one of the largest  arable land  which is second only to that of the United States, its economy is one of the fastest growing in the world, and its industrial innovation is legendary. India ranks second worldwide in farm output.  Agriculture and allied sectors like forestry, logging and fishing accounted for 15.7% of the GDP in 2009–10, employed 52.1% of the total workforce, and despite a steady decline of its share in the GDP, is still the largest economic sector and a significant piece of the overall socio-economic development of India. But when it comes to agriculture, its output lags far behind potential.

There can be no Green Revolution without adequate irrigation and fertilizer, which is consistently deteriorating due to the faulty policies of the Government. The Current Budget has given nothing to the Agriculture and there is little emphasis in this direction. In fact the fertilizer subsidy for the year 2011-12 has been pegged down (at Rs. 49,998 crores), which is lower than the revised estimates for 2010-011 (Rs. 54,976 Crores).

 The same is here reflected in the RBI report.

  Man Mohan Singh is following the Expenditure method of progress and hence pumping a lot of money in the Indian Economy by way of Deficit financing which is revealed hereby by RBI report. I am hereby elaborating the GDP calculation data for ready reference:-

GDP can be determined in three ways, all of which should, in principle, give the same result. They are the product (or output) approach, the income approach, and the expenditure approach.

The most direct of the three is the product approach, which sums the outputs of every class of enterprise to arrive at the total. The expenditure approach works on the principle that all of the product must be bought by somebody, therefore the value of the total product must be equal to people's total expenditures in buying things. The income approach works on the principle that the incomes of the productive factors ("producers," colloquially) must be equal to the value of their product, and determines GDP by finding the sum of all producers' incomes.

Example: the expenditure method:

GDP = private consumption + gross investment + government spending + (exports − imports), or

Note: "Gross" means that GDP measures production regardless of the various uses to which that production can be put. Production can be used for immediate consumption, for investment in new fixed assets or inventories, or for replacing depreciated fixed assets. "Domestic" means that GDP measures production that takes place within the country's borders. In the expenditure-method equation given above, the exports-minus-imports term is necessary in order to null out expenditures on things not produced in the country (imports) and add in things produced but not sold in the country (exports).

Economists (since Keynes) have preferred to split the general consumption term into two parts; private consumption, and public sector (or government) spending. Two advantages of dividing total consumption this way in theoretical macroeconomics are:

•           Private consumption is a central concern of welfare economics. The private investment and trade portions of the economy are ultimately directed (in mainstream economic models) to increases in long-term private consumption.

•           If separated from endogenous private consumption, government consumption can be treated as exogenous, so that different government spending levels can be considered within a meaningful macroeconomic framework.

RESERVE BANK OF INDIA

First Quarter Review of Monetary Policy 2011-12

17. Inflation continues to be the dominant macroeconomic concern. The headline WPI inflation rate was 9.7 per cent in April 2011. The provisional inflation figure was 9.1 per cent in May 2011 and 9.4 per cent in June. Given the recent pattern, these numbers these numbers are likely to be revised upwards. Thus, the headline WPI inflation rate for Q1 of

2011-12 remained stubbornly close to double digits and inflationary pressures continued to remain broad-based. Both the level and the persistence of WPI inflation are a cause for concern.

25. The Reserve Bank’s estimates show that the total flow of financial resources from banks, domestic  non-bank and external sources to the commercial sector during Q1 of 2011-12 was lower at ` 2,40,000 crore as compared with ` 2,63,000 crore during the corresponding period of last year.

30. During April-May 2011, the Central Government’s revenue deficit and fiscal deficit turned out to be higher than the levels during the corresponding period of the previous year reflecting lower revenue receipts and higher expenditure. Up to July 18, 2011, the Central Government completed 34 per cent of its budgeted net market borrowing programme, as compared with 37 per cent in the corresponding period of last year.

38. It is important to recognise that in the absence of appropriate actions for addressing supply bottlenecks, especially in food and infrastructure, questions about the ability of the economy to sustain the current growth rate without significant inflationary pressures come to the fore. The economy's ability to grow rapidly for any length of time without provoking inflation is dependent on implementing policies, with corresponding resource allocations, which will allow the supply of various products and services to keep pace with demand.

40. First, prices of petroleum products such as petrol, diesel, kerosene and LPG were raised in May/June 2011. The increase in administered petroleum product prices in June 2011 will add about 70 basis points to WPI inflation as a direct impact. In addition, there will be an indirect impact which will play out during the course of the year. There will be further upward pressure on inflation due to another one-off factor. The sharp upward revision in domestic crude prices under the minerals category, with a weight of 0.9 per cent in WPI, added about 40 bps to WPI inflation in April 2011. A similar impact may be

felt in March 2012 unless crude prices moderate significantly.

41. Second, minimum support prices (MSPs) for some agricultural commodities, particularly rice and pulses, were increased significantly. This is likely to exert upward pressure on food inflation even if the harvest is good.

42. Third, non-food manufacturing inflation persists at elevated levels, reflecting underlying demand pressures. While early corporate results for Q1 of 2011-12 indicate some moderation in margins, suggesting reduced pricing power, the pass-through of higher commodity prices into more generalized inflation remains significant.

43. Going forward, the inflation outlook will be shaped by the following factors. First, it will depend on the overall performance of the south-west monsoon. Even if there is no major deficiency at the aggregate level, an appropriate spatial and temporal distribution of rainfall during the whole season is crucial. As price pressures in respect of protein-rich

items persist, any shortfall in rainfall or its pattern could pose significant risks to food inflation.

47. Keeping in view the domestic demand-supply balance, the global trends in commodity prices and the likely demand scenario, the baseline projection for WPI            inflation for March 2012 is revised upward from 6.0 per cent with an upside bias, as indicated in the May 3 Policy Statement, to 7.0 per cent (Chart 2). As indicated in the May 3 Policy Statement, inflation is expected to remain at an elevated level for a few more months, before moderating towards the later part of the year.

Risk Factor

51  (iv) The Central Government budgeted a fiscal deficit of 4.6 per cent of GDP for 2011-12. Subsequent developments have made the achievement of this target much more of a challenge. On the expenditure side, the subsidy burden will, in all likelihood, overshoot the budgeted amount in 2011-12 significantly, despite the recent revision in petroleum product prices. On the revenue side, while the tax cuts announced in June 2011, as part of the upward price adjustment of petroleum products, will primarily help in

bringing down the magnitude of under-recoveries of oil marketing companies (OMCs), the revenue loss to the Central Government from such tax cuts (about 0.3 per cent of DP) will impact both the fiscal and revenue deficits. The large fiscal deficit has been a key source of demand pressures. Fiscal consolidation is, therefore, critical to managing      inflation. While meeting quantitative targets, the Government also needs to focus on the quality of expenditure to sustain the fiscal consolidation process, which, in turn, will help contain aggregate demand and raise potential output.

CRISIL Research, India’s leading Rating, Research, Risk and policy Advisory Company reports  on RBI :- The Reserve Bank of India (RBI), in its first quarter review of monetary policy 2011-12, continued with its aggressive anti-inflationary stance. It raised the repo rate by a higher than-expected 50 basis points (bps) to 8.0 per cent. This is the eleventh successive increase in the policy rate since March 2010. Consequently, the reverse repo rate and marginal standing facility (MSF) rate have been revised up to 7.0 and 9.0 per cent, respectively. This rate increase, which came in the midst of slowing industrial growth, is a clear signal from the RBI that it remains committed to inflation control and is willing to accept a slowdown in economic growth in the short run. The central bank has also taken into account the elevated inflationary expectations in food prices, and its resultant effect on wages. In addition, domestic fuel prices have been only partly aligned to global crude oil prices, which have risen sharply over the last one year. However, despite this rate increase, inflation will continue to persist above the RBI’s comfort zone throughout 2011-12. The RBI has revised upwards its March 2012 WPI (Wholesale Price Index) inflation projection to 7 per cent from the earlier projection of 6 per cent with an upward bias.

GDP growth to moderate as cumulative interest rate hikes begin to impact

Industrial growth fell to 5.6 per cent in May 2011 from 8.5 per cent in the same month last  year, mainly due to poor performance of the manufacturing and mining sectors. IIP (Index of Industrial Production) data for April 2011 has been revised downward to 5.8 per cent from 6.3 per cent reported earlier. This indicates sluggish industrial growth in the economy. Capital goods also grew by a mere 5.9 per cent in May as compared to 7.3 per cent(revised downward from the earlier estimate of 14.5 per cent) in the previous month. With the capital goods’ growth slowing to 6.6 per cent in the first two months of 2011-12

compared to 25.6 per cent in the same period last year, investment activity in the economy has clearly slowed down. As a result, capital goods production is expected to remain sluggish in the coming months. However, while private consumption growth has

moderated since the third quarter of 2010-11, it remained robust at around 8 per cent in

the fourth quarter of 2010-11. Overall, GDP growth would moderate in 2011-12 to 7.7-8.0 per cent, assuming a normal monsoon, compared to 8.5 per cent in 2010-11. It is critical that demand side pressures are reigned in to control core inflation.

Inflation remains stubbornly above 9 per cent Inflation reached 9.4 per cent in June 2011 as compared to 9.1 per cent in May 2011. Also, inflation for April 2011 has been revised to 9.7 per cent from 8.7 per cent reported earlier. The push in inflation in June came from manufactured goods and food items. Overall, food inflation (primary and manufacturing) in June rose to 8.4 per cent as compared to 8.0 per cent in the previous month. Fuel inflation during the month rose to 12.8 per cent following an increase in petrol and diesel prices. Manufacturing inflation in June remained high, rising to 7.9 per cent from 7.7 per cent in the previous month. Core inflation (non-food manufacturing inflation) in June continued to be firm as well at 7.8 per cent, same as in the previous month, indicating firm demand. If consumption remains robust, an increase in the cost of production due to the fuel price rise will be passed on by producers to consumers thereby further raising manufacturing inflation. In this situation, the RBI will continue with its anti-inflationary stance.

In view of the elevated inflationary pressures, CRISIL Research has raised its average

WPI inflation forecast for 2011-12 by 50 bps to 8.0-8.5 per cent.

The true Picture of Maneconomics ( Man Mohan Singh's Economic Policy)

Agriculture is the predominant occupation in India, accounting for 60% of employment,service sector makes up 28% and industrial sector 12%. In terms of output, the agricultural sector accounts for 28% of GDP; the service and industrial sectors make up 54% and 18% respectively. India's GDP is US$1.089 trillion, which makes it the twelfth-largest economy in the world or fourth largest by purchasing power adjusted exchange rates. India is fifteenth in services output and it provides employment to 23% of work force, and it is growing fast, growth rate 7.5% in 1991–2000 up from 4.5% in 1951–80. It has the largest share in the GDP, accounting for 55% in 2007. India's IT industry, despite contributing significantly to its balance of payments, accounted for only about 1% of the total GDP or 1/50th of the total services in 2001.

Statistics of the WTO in 2006, India's total merchandise trade (export + import) was valued at 294 billion dollars in 2006 and India's services trade inclusive of export and import was 143 billion dollars. According to the CIA Factbook (2007), India is a net importer. Total imports stood at US$224 billion and exports were US$140 billion. International trade as a proportion of GDP reached 24% by 2006, still relatively moderate.India currently accounts for 1.2% of World trade as of 2006 according to the WTO. Until the liberalisation of 1991, India was largely and intentionally isolated from the world markets, to protect its fledging economy and to achieve self-reliance.The FDI inflow for 2007-08 has been reported as $24bn. This is mainly due to the heavy returns the FII’s are making due to the speculative returns gained, through Induan Stock market’s.    In 2006, remittances from Indian migrants overseas made up $27 billion or about 3% of India's GDP.

The Indian Gross Domestic Product (GDP) has come a long way since its balance of payment downturn in the 80's. This can be largely attributed to its open policies under prime minister Atal Bihari Vajpayee in 2003, attracting high influx of foreign investors. India's BPO sector and service industry has also benefited from its rapid growth of information technology, further strengthening its impressive growth and thus providing promising outlook for future growth. The contribution of IT to GDP increased to 4.8 % in 2005-06 was projected to increase to 7% of GDP in 2008 which never materialised due to faulty policies of UPA Govt.

India's nominal per capita income US$977 is ranked 128th in the world. 85.7% of the Indian population is living on less than $2.50 (PPP) a day in 2005, compared with 80.5% for Sub-Saharan Africa, with over 83.6 Crores of the Indian population earning an income of less than Rs. 20 per day. Half of children are underweight, one of the highest rates in the world and nearly double the rate of Sub-Saharan Africa.          

Gross Domestic Product (GDP) is the sum of all Goods and Services produced in a Country. This sum is the value measured in terms of Rupee. Inflation in general terms is defined, as more money chasing few goods. Hence a mild inflation is necessary to keep the economy progressing. India's projected a lower inflation rate in 2008 from the 5.77% reported in 2007. By July 2008, the Key Indian Inflation Rate has surpassed the 11% mark to become the highest rate recorded in 13 years, and almost three times as high as the 4.1% targeted by Reserve Bank of India (RBI) in 2007. However an Hyper Inflation (as off today) is very tricky, as the value of goods produced in terms of Indian rupee is inflated hence leading to increase in the figure of goods and services produced in a country which automatically pushes the GDP of the country, without effecting the  real production of goods and services in the country, hence reflecting artificial growth.

 Stock Exchanges are defined as the "Barometer of the Economy". Shares, securities and Bonds of various companies and PSU's are listed and openly traded daily here, by the investors and institutions. Hence those Companies and sectors of the Industries that are performing well are in demand; and their prices are ever rising. Manomohan Singh’ tenure as a Finance and currently as the Prime Minister has seen the Largest Fluctuation of Indian Stock Market, where the market has seen the highest up-swings and downwards speculative movements, inviting speculative trading instead of investment’s in the economy, the basic purpose which the Stock exchanges serve. The Indian Public has lost heavily in this period, at the cost of FII’s and financially strong and prudent Institutions. On 24th October 2008 the Indian Investors  had lost Rs. 3.3 Lakh Crores in a Single Day.

The Capital Market Survey of Data for 2000 Companies in India in Aug 13, 2007 issue reported the Huge Jump in other Income of companies mainly due to large gains on hedging foreign exchange (Forex) receivables and translation of forex liabilities. Companies that have raised substantial funds in forex were major gainers. The sharp rise in rupee against dollar and increase in refinery margin lifted profit and/or reduced the losses of PSU oil refineries. Forex gains helped Airlines to post Profit against loss. The Air conditioner industry had an exceptionally strong quarter due to high demand growth as well as benefits from rupee appreciation.  Similar is the case of Commodity exchange where prices of food grains were hiked and manipulated and is speculative, though in actual terms the economy of goods (both Agriculture and industrial) has not shown any positive growth. Industrial output, which has been slowing down for some time with industrial production for October 08 down - 0.4% from the 12.2 %  from  Oct ’07, -1.2% in Feb 2009, -2.3% in March ‘09. This is the first time in 15 years that year to year growth has been negative for any month.

All major economic indicators are showing signs of negative growth. Due to global depression there is large scale un-employment and worker and employees are regular losing jobs and facing pay scale cuts. Interestingly the industrial growth has picked is up 2.7 % in May’09 to 8.2% in June’09 in consonance with the price rise, and immediately after the UPA was voted to power. The growth to a certain respect is due to mining growth of 9.9% in July mainly due to KG basin gas production and cement production growth of 17.75% in August ’09. Still there are no signs of stopping of inflation and goods of common man use have risen to sky high prices. This is despite the fact that our Prime Minister and his team are well known economist and the P.M has served the RBI as an employee and Governor for several years. Hence he is well versed with the Monetary and Fiscal measures employed to control Indian inflation and price rise. Maneconomics has always been aimed with a short term gain and based more on the supply of money rather than other realistic measures which would serve the long term strategic interest of the country. The blame for price rise is shifted on state Govt. though all Macro and Micro economic measures to control price rise is with the Central Govt. It appears that the Manmohan Singh’s government is purposely promoting inflation in order to show higher GDP growth, though in actual production and quantitative terms the Indian gross Domestic Production is showing a negative growth. It is this window dressing approach of Central Government that is hampering the overall long term economic growth of the country.

Reported and published in Nov 8, 2009 Organiser    

Union Home Minister (India) Statement on RSS and its true picture

The Union Home Minister should first Know Indian Culture and RSS before speaking

 The immature and inflamatory statement  given by the Union Home Minister is in line with the statement given previously by the Yuvaraj of Congress Party and perhaps a salute to him to gain favour from him ( san his new popularity in the Congress).  

Rahul Gandhi on 6^th of October 2010 at Bhopal, comparing Rashtriya Swayamsevak Sangh (RSS) with the banned   Student's Islamic Movement of India (SIMI) and declaring both as fanatical  is most immature and it appears to be given with an aim of appeasing the Minorities. This vote bank politics of Congress has damaged Indian nationalist feeling and was instrumental in dividing united India into two parts.

          It appears that the foreign educated and brought up Rahul Gandhi has little knowledge of ancient Indian history and culture. It would have been prudent if young Gandhi before speaking , gets well versed  ,studies and knows  facts about RSS and SIMI  their organization, aims and objects and then compare them. I am hereunder producing in precise a comparative study, with that of the study of Hinduism and Islam in nut shell for the benefit of readers.

The Rashtriya Swayamsevak Sangh (RSS)  i.e. (National Volunteer Organization or National Patriotism Organization, also known the Sangh, is a nationalist paramilitary volunteer organization in India. It is part of the Hindu nationalist Sangh Parivar. It was founded in 1925 by Dr. K. B. Hedgewar, a doctor from Nagpur, as a social and cultural organisation in British India, to oppose both British colonialism in India and Muslim separatism.

RSS volunteers participated in various political and social movements including the freedom movement and the organization became the leading Hindu nationalist organization in India.By the 1990s, the group had established numerous schools, charities and clubs to propagate its ideology.RSS volunteers are also known for their role in the relief and rehabilitation work during natural calamities and for running more than 100,000 service programs in education, health care, rural development, tribal emancipation, village self-sufficiency, and the rehabilitation of lepers and special needs children.

 Dr. Keshav Baliram Hedgewar,  was a doctor in the central Indian city of Nagpur. Hedgewar as a medical student in Kolkata had been a part of the revolutionary activities of the Anushilan Samiti and Jugantar striving to free India from British rule. He had been charged with sedition in 1921 by the British Administration and was imprisoned for a year. After returning to Nagpur, he was briefly a member of Indian National Congress before he left it in 1925, to form the Rashtriya Swayamsevak Sangh. After the formation of the RSS, Hedgewar kept the organization from having any direct affiliation with any of the political organisations then fighting British rule. But  Dr. Hedgewar and teams of volunteers, took part in the Indian National Congress, led movements against the British rule. Hedgewar was arrested in the Jungle Satyagraha agitation in 1931 and served a second term in prison.The RSS was established as a educational body whose objective was to train a group of Hindus, who on the basis of their character would work to unite the Hindu community so that India could become an independent country and a creative society.

The Partition of India was a very traumatic event in the young nation's history with millions of Sikhs, Hindus and Muslims, attempting to escape the violence and carnage that followed. Noted Gandhian and recipient of the highest civilian award in India, Bharat Ratna, Dr. Bhagwan Das commended the role of the "high-spirited and self-sacrificing boys" of the RSS in protecting the newly formed Republic of India, from a planned coup to topple the Jawaharlal Nehru Administration in Delhi. The RSS was against tge division of India on Muhammad Ali Jinnah's Two-Nation theory.

          After the Independence of India, many organizations including the RSS aspired to liberate Dadra and Nagar Haveli from Portuguese occupation. In early 1954, volunteers Raja Wakankar and Nana Kajrekar of the RSS visited the area round about Dadra and Nagar Haveli and Daman several times to study the topography and also to get acquainted with the local workers who were agitating for the liberation. In April 1954, the RSS formed a coalition with the National Movement Liberation Organization (NMLO), the and Azad Gomantak Dal (AGD) for the liberation of Dadra and Nagar Haveli. On the night of 21 July, United front of Goans, a group, working independently of the coalition, captured the Portuguese police station at Dadra and declared Dadra as free. Subsequently on 28 July, volunteer teams of the RSS and AGD captured the territories of Naroli and Phiparia and ultimately the capital of Silvassa. The Portuguese forces which escaped and moved towards Nagar Haveli, were assaulted at Khandvel and were forced to retreat till they surrendered to the Indian border police at Udava on 11 August 1954. A native administration was setup with Appasaheb Karmalkar of NMLO as the Administrator of Dadra and Nagar Haveli on 11 August 1954.The liberation of Dadra and Nagar Haveli gave a boost to the freedom movement against the Portuguese in Goa. In 1955, RSS leaders demanded the end of Portuguese rule in Goa and its integration into India. When Prime Minister of India, Jawaharlal Nehru refused to obtain it by armed intervention, RSS leader Jagannath Rao Joshi led the satyagraha agitation straight into Goa itself. He was imprisoned with his followers by the Portuguese police. The peaceful protests continued but met with severe repressions. On 15 August 1955, the Portuguese police opened fire on the satyagrahis, killing thirty or more people.

          The RSS , earned recognition based on its volunteer work during the Sino-Indian War in 1962. RSS was invited by Prime Minister Jawaharlal Nehru to take part in the Indian Republic day parade of 1963. It along with several other civilian organizations took part in the parade. Later in 1965 and 1971 Indo-Pak wars too, the RSS volunteers offered their services to maintain law and order of the country and were apparently the first to donate blood. In 1975, the Indian Government under its Congress Leader the Prime Minister Mrs. Indira Gandhi ( The Grand Mother of Rahul Gandhi), proclaimed emergency rule in India, thereby suspending the fundamental rights and curtailing the rights of the press.This extreme step was taken after the Supreme Court of India, cancelled her election to the Indian Parliament on charges of malpractices in the election^. RSS was instrumental in restoration of Democracy in India and thousands of RSS volunteers were arrested and put behind bars , while performing Stayagrah movement against the oppressive policies of the Congress. 'The Economist', London, described the movement as "the only non-left revolutionary force in the world". It said that the movement was "dominated by tens of thousands of RSS cadres, though more and more young recruits are coming". Talking about its objectives it said "its platform at the moment has only one plank: to bring democracy back to India.

          These are a minusule picture of the work done by RSS and it would take several books and pages to decribe its dedication and contibution towards the nation and its total selfless work done for the citizens of India.

Field Marshal Cariappa in his speech to RSS volunteers said "RSS is my heart's work. My dear young men, don't be disturbed by uncharitable comments of interested persons. Look ahead! Go ahead! The country is standing in need of your services" Dr Zakir Hussain the former President of India once told to Milad Mehfil in Monghyar on November 20, 1949 "The allegations against RSS of violence and hatred against Muslims are wholly false. Muslims should learn the lesson of mutual love, cooperation and organization from RSS.

Noted Gandhian leader and the leader of Sarvoday movement, Jayaprakash Narayan, who earlier was a vocal opponent of RSS had the following to say about it in 1977 "RSS is a revolutionary organization. No other organization in the country comes anywhere near it. It alone has the capacity to transform society, end casteism and wipe the tears from the eyes of the poor." He further added "I have great expectations from this revolutionary organization which has taken up the challenge of creating a new India"

Student Islamic Movement of India (SIMI)

The Students Islamic Movement of India (SIMI) is an Islamic fundamentalist organization, which advocates the ‘liberation of India’ by converting it to an Islamic land. The SIMI was formed at Aligarh on April 25, 1977. Mohammad Ahmadullah Siddiqi, Professor of Journalism and Public Relations at the Western Illinois University Macomb, Illinois since 1987, was the founding President of the outfit. Currently, Shahid Badar is the national president of the SIMI and Safdar Nagori serves as the secretary-general. It originally emerged as an offshoot of the Jamaat-e-Islami Hind. The SIMI is an organisation of young fanatical students. Students up to the age of 30 years are eligible to be its member and after completing this age-limit they retire from the organization. The SIMI has declared Jehad against India, the aim of which is to establish Dar-ul-Islam (land of Islam) by either forcefully converting everyone to Islam or by killing. According to news sources, SIMI is reportedly securing generous financial assistance from the World Assembly of Muslim Youth, Riyadh and also maintains close links with the International Islamic Federation of Students' Organizations, Kuwait. The Chicago-based Consultative Committee of Indian Muslims has also been found to support SIMI morally and financially. It also has links with the Jamaat-e-Islam (JeI) units in Pakistan, Bangladesh and Nepal. The SIMI is also alleged to have close links with the Pakistani-supported terrorist outfit Hizb-ul-Mujahideen.

Opposed to democracy, secularism and nationalism, SIMI has been advocating among its followers - some 400 ansars (full-time cadres) and the 19,000 ordinary members - the need to oppose "man-made" institutions and work for the ummah (Muslim brotherhood). The cadres of SIMI consider the Afghanistan-based Osama bin Laden as a ‘true believer of Islam’ and look up to him as an epitome of ‘Islamic Hero’. According to Safdar Nagouri, General Secretary of SIMI, the outfit believes that Osama bin Laden is "not a terrorist'" and neither is Jammu and Kashmir an "integral part of India." At its congregations, messages and recorded speeches have been relayed from the Palestinian Hamas leader Sheikh Ahmed Yasin and Qazi Hussein Ahmed, the Amir of the Pakistani Jamaat. SIMI is widely believed to be against Hinduism, western beliefs and ideals, as well as other anti-Islamic cultures. Among its various objectives the SIMI aims to counter what it believes is the increasing moral degeneration, sexual anarchy in the Indian society as also the ‘insensitiveness’ of a ‘decadent’ west.

SIMI activists were involved in the untoward incidents that occurred at various places in Maharashtra over the screening of controversial Hindi film ‘Gadar’. Eleven cases had been registered and 68 persons arrested in the incidents that had taken place in cinema halls in Sangamner, Washim, Parali and Bhiwandi leading to riots, communal tension and the death of one person.

In the March 16, 2001 clash between SIMI activists and the police in Kanpur six persons including an Additional District Magistrate were killed. Violence erupted when the police prevented SIMI activists from assembling at the Parade Choraha immediately after the Friday prayers to register their resentment against the alleged burning of Quran in New Delhi. Mohammad Aquil, a former student of Aligarh Muslim University (AMU) and an active member of the SIMI was arrested by the UP Police in a bomb blast case, which occurred on August 15, 2000 in the Sabarmati Express near Faizabad. The bomb blast had caused the death of 10 passengers and had injured 40 others.

The SIMI in also alleged to be responsible for the twin blasts in Delhi on May 9, 2001 in which one person was injured. The first bomb went off near the Army Headquarters and another bomb exploded in a parking lot on Dalhousie Road.The Gujarat government in a letter to the Union Home Ministry called for a ban on SIMI on the basis of the anti-national activities of the outfit in the state. The State police in May 2001 had arrested many SIMI leaders in Bhuj on the charges of arousing a communal flare up. The police had also invoked stipulations of the National Security Act against SIMI in Kutch after the cadres were found selling posters of Maulana Masood Azhar, Chief of the Pakistan-based Jaish-e-Mohammed who had been released in the terrorists-for-hostages swap in Kandahar. Similarly, the Madhya Pradesh government in May 2001 urged the Government of India to proscribe the Students Islamic Movement of India. The State government while giving details in a report stated that SIMI cadres had become a threat to peace and security in the state. In Madhya Pradesh, 41 cases have been registered against the outfit's activists. In the state, Indore and Ujjain are currently considered to be strong bases of the SIMI.

http://en.wikipedia.org/wiki/Rashtriya_Swayamsevak_Sanghvksinghbjp@rediff.com

          Indian culture is commonly known as Hinduism, Bharatiata or Hindutava and has been defined by the Indian Supreme Court as a way of life. The Gazetteer of India clearly mentions Hinduism or Hindutava as having the same meaning. The Hindu Characteristic of tolerance in faith, beliefs and observances has asserted itself, new modes of living together in harmony. The essence in Hinduism, has led to the research for universal in religion. Indian culture and its basic principle of unity and living in harmony have stood the test of time. The true spirit of Hinduism has ignored all barriers of Caste, creed and religion. From times immemorial it is there and found acceptance from Turks, the Persian, the Arabs, the Moghuls and English and all other foreigners and is today a fusion of several other cultures, with the more emphasis on building creative minds and Hindu way of spiritual enlightenment and thinking. It is instrumental in binding the Indian society into one harmonious unit.

          Indian civilisation is one of the oldest in the world. An evaluation and analytical study of Hindu mythology and writings reveals and produces it as the oldest. It was so developed and practical that it found acceptance in most parts of the world. The Indian culture, religion, education, spread and influenced almost every corner of eastern Asia, which includes China, Thailand, Malaya, Burma, Indonesia, Java & Sumatra, Japan etc. as mentioned in history. Indian cultural influence extended to west and Central Asia as well.. Indian culture and civilization, had stood the test of thousands of years, has been built, most of all by the labour, sacrifice and wisdom of Hindu sages, mystic saints,  savants and patriots and the people themselves.

The people of India have proved through ages that Hinduism is their spirit of living, and they have always rejected division on the basis of caste, creed and religion. Our Ancestors built Hinduism or Hindustani way of life to unit and fuse all religious and cultural difference amongst the people and further to build this nation into an economic power.

          To equate a Hindu organization with that to a fundamentalist Banned organization like SIMI is a sin and shows that Rahul Gandhi has neither known this country, its culture and religion nor understood its spirit of unity and nationalism promoted through Hinduism the way of life. It is advised that The Prince of Congress should come out of its robe and understand the spirit of India and its nationality, which is driven by the unity promoted through the Hindu way of living.  The appeasement policy of some the Congress Party towards fundamentalist’s Muslim organisation has unfortunately resulted in sowing of seeds of communal discord. The Vote Bank politics has made inroads towards calling Hinduism or Hindutava as communal, which is most shocking and is damaging the nationalist character of Hindu religious institutions and organisations.

         

T