Mr. Narendra Modi has worked tooth and nail to strengthen India’s Gulf trade and ties, in his six years as prime minister. And for the most part, India’s initiatives have been reciprocated well by their regional counterparts.
However, over the past weeks, the world has witnessed immense outrage in the Arab world against India over the derogatory comment about Prophet by high-ranking BJP spokespersons.
So, is India’s Hindutva movement jeopardizing its economic relationships with the Gulf countries?
India’s Gulf Trade and Ties Explained
In fact, PM Modi’s first international visit in 2022 was to Kuwait and the UAE. So India’s financial stakes in the region are high, and this is why:
Import and Export: Strong Trade Ties
India shares strong economic trade ties with the Arab nations, particularly those in the Gulf Council Corporation (GCC).
According to the Indian Ministry of Commerce, India’s export to the GCC countries rose by almost 58% in 2021-22; accounting for an estimated USD 44 billion. This made up about 10.5% of India’s total export in the same financial year.
On the other hand, with a total import of USD 110.73 billion from the Gulf countries, India recorded an import increase of 85.8% from 2020-21. This accounts for 18% of the total Indian imports in 2021-22.
Indian Living and Working in Gulf Countries
Around 13.46 million Indians are living abroad, or 32 million if you add persons of Indian descent who are citizens of another nation; according to figures released by the Ministry of External Affairs in 2020.
More than half of the 13.46 million NRIs live in the Gulf countries, with the UAE, Saudi Arabia, and Kuwait hosting the largest numbers of Indians—roughly 3.42 million, 2.6 million, and 1.03 million, respectively. In contrast, there were 7,45,775 and 7,79,351 Indians in Qatar and Oman.
Furthermore, 50% of India’s total personal remittances sent by NRIs come from Indian working in the Gulf nation. Of these, Qatar (6.5%), Oman (3%), Kuwait (5.5%), and Saudi Arabia (11.6%) are the most significant contributors.
India purchased 212.2 million tonnes of crude oil from 42 different nations in 2021–22; according to the PPAC (Petroleum Planning & Analysis Cell) report of the Union Ministry.
However, the Gulf nations provided most of the oil that India imported during this time; with Iraq being the top supplier, contributing 22% of India’s oil imports.
Saudi Arabia and the United Arab Emirates came after Iraq. And, now Kuwait is also emerging as one of the principal oil exporters to India.
“The GCC has emerged as a major trading partner of India. It has vast potential as India’s investment partner in the future. The GCC’s substantial oil and gas reserves are of utmost importance for India’s energy needs.”The Indian embassy in Riyadh, the GCC, consisting of the UAE, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain
However, the growing extremism and hate speech against the Muslim community is jeopardizing India’s trade and ties with not only the Arab nation but also defenders of human rights everywhere. Furthermore, the statement made by Nupur Sharma and Jindal when India is pursuing a free trade pact with the GCC is mounting enormous challenges for the government.
India Facing Sharp Backlash by Gulf Countries
India and Gulf nations share an intimately intertwined relationship on both the cultural and economic fronts. Especially the GCC countries, which include the UAE, Qatar, Oman, Saudi Arabia, Bahrain, and Kuwait, have gained immense prominence in the Indian economy.
However, over the last weeks; three Gulf countries, including Kuwait, Iran, and Qatar have criticized India over the ongoing Islamophobic discourse. At the same time, countries like Oman and Saudi Arabia have also condemned the extremist remarks very strongly.
The Qatari government was the first to issue a very strong statement; saying it is expecting a public apology and condemnation of such remarks by the Indian government. Criticizing the comment, the statement read; “Allowing such Islamophobic remarks to continue without punishment constitutes a grave danger to the protection of human rights.“
And the ongoing condemnation and outrage are threatening India’s carefully cultivated relationships with the GCC that are both economically and strategically vital. In the past weeks, superstores in the Gulf nations were removing Indian products from their shelves. The hashtags, boycott of Indian Products, and anti-India tweets also trended on Twitter in many Arab countries for several hours.
The Raising Hindu Extremism in Secular India
The Indian constitution’s 42nd amendment made the country formally “secular” in 1976, but while PM Narendra Modi has been in office, Hindu nationalism has grown at an alarming rate.
Attacks on Muslims and Christians are frequent, and significant news outlets frequently present insulting and intolerable viewpoints regarding minorities.
To win over right-wing organizations like the Rashtriya Swayamsevak Sangh (RSS), a potent right-wing Hindu nationalist paramilitary outfit, Modi first championed Hindutva ideology.
His party renounced the socialist and secular policies adopted by his predecessors and embraced Hindu supremacism, branding it a “New India.“
But despite initial triumphs, Modi’s economic reforms slowed growth, contrary to predictions. Promises to create jobs did not come to pass, and the BJP’s demonetization plan handed him the death blow in terms of support.
And now, the growing Hindutva movement is jeopardizing India’s economic relationship with trusted allies like the GCC.
High Stakes on India’s Gulf Trade and Ties
Since the Modi government, the economic ties between India and the Arab state have improved significantly. And in the bid to gain an edge over China, New Delhi has strengthened its position in the Gulf via commerce.
India’s domestic politics can no longer be delinked from its international image and economic and diplomatic ties with other countries when so much is at stake.
The UK Economy Braces for 2-Year Long Recession: What Went Wrong?
The UK economy is witnessing one of the worst crises in its history. The downfall of the pound, war-infused energy crisis, skyrocketing electricity bills, collapsing stock market, changing Prime ministers, and whatnot?
Nothing has gone in the UK’s favor since the passing of the Queen. And now the country is bracing for a prolonged two-year recession with contracting third quarters.
But what went wrong in the first place? How did this trigger an economic catastrophe in the UK? And can Rishi Sunak save the UK?
Here is a detailed explainer:
UK Economy: An Overview of the Problem
With the political upheaval and the pandemic, the already suffering economy of the UK reached its brim when the Russia-Ukraine war ignited.
In response to Ukraine’s invasion, Britain halted the import of fuel, gas, or coal from Russia since June for the first time in the past 25 years.
As a result, Russia stopped its critical gas pipeline to Europe, thus creating an energy crisis.
All this led to the UK’s economic downfall.
Today, inflation is at an all-time high of 9.9%, a 40-year high. Energy bills are shot up by almost 80%despite capping. Finally, and most importantly, the pound has become one of the worst-performing currencies, with its value dropping by 24% against the dollar.
The Mini Budget Turmoil
With such disruptive environments in the UK, former Prime Minister Liz Truss came up with the mini-budget. The mini-budget baskets a slew of tax changes, including the elimination of the high rate of income tax for the wealthy and the energy subsidies policy platform.
However, the mini-budget backfired and now has snowballed from an energy crisis into debt, housing, currency, and even a banking crisis.
The pointer mentioned in the mini-budget has been so terrifying that it shook the economy of the UK and plunged the London Stock Exchange horribly.
With such an unstable situation inside the UK economy, Truss changed her mind about company taxes after days of adamantly defending her budget and firing finance Minister Kwarteng.
“I still agree with my policies, but I’ve sacked my finance minister because he announced them, and the market didn’t like them.”She said
A Cold and Long Winters Awaits the UK
The three major events that make the incoming winter snug for the UK are:
- First, Russia has entirely cut off gas, which causes the cost of electricity to shoot up by almost 80%.
- Secondly, on top of the existing gas storage, the incoming winter energy consumption is about to hit a new peak from September to December.
- Third, even if Europe had 90% of its Energy storage complete in September 2022, it could take only 90 days for it to reach dangerously low levels.
Long story short, a gas shortage during a peak consumption time, with no storage option, will further increase energy prices. It has already been shot up at extreme levels resulting in high electricity bills that eventually heated inflation and the economy of the UK.
Even though the UK is receiving help from the US and other countries, gas prices are still very high. Hence the cost of production and inflation has hit a record 9.9%.
“It is going to be tough. But protecting the vulnerable – and people’s jobs, mortgages, and bills – will be at the front of our minds as we work to restore stability, confidence, and long-term growth,”British finance minister Jeremy Hunt twitted
Bond Market Crisis with Collapsing Pound
The UK’s property market, pension industry, and overall economy are at risk of recession. The reason behind this is the decline in the price of UK government bonds and the ensuing rise in interest rates.
10-year bond rates in the UK have gone above almost 300%, going from just about 1% to 4.11% in just nine months.
Even though the bonds yield a 4% interest, the currency has depreciated to such an extent that it has become a disaster for foreign investors. As a result, foreign investors are quitting the UK market, further decreasing the demand for the pound.
Such a crisis in the bond market resulted in currency depreciation further, and the sterling slid against the US dollar. Furthermore, during the Ukraine-Russia war, Russia cut off gas supplies, and oversized reliance on imports further surge Euro.
Rishi, the Third Prime Minister in Three Months
After the resignation of Boris Johnson with 27 ministers, the office was handed over to Liz Truss. When Boris left the office, there was a sensation in the UK that it was time for stability and competence.
However, due to poor politics and policies, Liz Truss abruptly resigned from the post of Prime Minister within 45 days. The shortest and most disastrous spell that slung the economy of the UK and crashed the pound forced Liz Truss to step down from the post.
With the resignation of Liz Truss, the reign was entrusted to Rishi Sunak, the third PM of the UK in the last three months. Sunak’s appointment ended another period of political unrest in the UK.
But many analysts and Westminster observers are still of the opinion that there will soon be another crisis. With the opposition Labor Party presently leading in the polls, all opposition parties are pleading for a general election.
Can Rishi Sunak Save UK Economy?
The political unpredictability has led the UK economy into a two-year-long recession. The previous two prime ministers were unqualified to steer the UK economy’s flimsy ship. Hence Rishi has some challenging tasks to do.
Now, everything will depend on how Rishi approaches the challenging work of rescuing the UK economy from disaster, and it will be interesting to watch how he advances.
Muslim Women’s Empowerment and Inheritance Rights
Despite Islam giving Muslim women the right to inheritance, it is rare to see Muslims follow this Islamic law. The recently released National Family Health Survey 2019-20 (NFHS-5) fact sheet for Jammu and Kashmir states that only 57.3% of women in the Union Territory of Jammu and Kashmir own a house and/or land, alone or jointly (PDF of the survey). J and K is a Muslim-majority region. According to 2011 census, 68.3% of the region’s population is Muslim.
Even though we can read these figures as “at least more than half women own property”, however, given that all women are coparceners in one or the other way, it raises vexing questions.
Islam entitles a sister to inherit half of what a brother gets as a coparcener. Despite this fact, the number of women owning property is almost half of that of men.
The data on women’s inheritance in Pakistan and other Muslim-majority South Asian countries is much worse. There are very few women who own property in South Asian countries.
Inheritance Rights, a Taboo?
Women asking for their coparcenary rights is considered taboo here. Further, women also seem to have internalized that asking for inheritance rights will break their relationship with other members of the family, especially brothers. As a result, they sign relinquishment deeds without giving a second thought about it.
Women’s Empowerment through Inheritance
People mostly see the inheritance of property as a matter of money and wealth. However, it goes beyond that, at least for women. Economically speaking, ownership of any kind of property by women is a very important determinant in the quest for women’s empowerment.
In a realist world where everyone is responsible for their own survival, women should not expect their male relatives to care for them. Unless women do not attach economical value to their lives, they will have no power. This is especially true for unemployed women who do not have financial independence. Since inheritance of property is a given- however small value it may have, they do not have to get an education or work to get it. The only thing they need to do is not to sign the relinquishment deed.
Also Read: Why Are Muslim Women Still Behind Bars
Militating Against Women’s Empowerment
Relinquishment of coparcenary rights militates against women’s empowerment. It is high time that women ask for the inheritance rights that the constitution as well as the religion gives them. The right to inheritance also seems one of its kind means to women’s empowerment where people peddling religiosity may not find a reason to oppose it. Women should know that signing a relinquishment deed may lose them a lifetime opportunity for leading an independent and respectful life in this patriarchal world.
Also Read: The women behind #Blacklivesmatter movement
The Debate on Equality of Rights
It is generally accepted that Islam entitles a sister to inherit half of what a brother gets as a coparcener. However, the interpretation of the Quran regarding this law is debatable. According to Mohmmad Iqbal, “the share of the daughter is determined not by any inferiority inherent in her, but in view of her economic opportunities, and the place she occupies in the social structure of which she is a part and parcel.” Iqbal goes on to justify the case of inheritance law in Islam arguing that the daughter “is held to be the full owner of the property given to her by both the father and the husband at the time of her marriage.” Further, “she absolutely owns her dower-money which may be prompt or deferred according to her own choice, and in lieu of which she can hold possession of the whole of her husband’s property till payment, the responsibility of maintaining her throughout her life is wholly thrown on the husband.”
Therefore, for Iqbal, if we “judge the working of the rule of inheritance from this point of view, you (we) will find that there is no material difference between the economic position of sons and daughters.”
However, Iqbal made this point in 1930. Since then, there has been a significant change in the economic positions of men and women. If the motive behind inheritance laws, as mentioned by Iqbal, is applied to modern-day conditions, sons and daughters may well get an equal share in inheritance.
Towards Muslim Women’s Empowerment
Inheritance rights bestowed by Islam on Muslim women show Islam’s inherent quest for women’s empowerment.
Even though the West blames Muslims for repressing women’s rights, Islam has its in-built laws for women’s empowerment. These laws, unlike West’s feminist rhetoric, go beyond symbolic empowerment like sartorial choice, and hence materially empower women.
However, it is a shame that Muslims do not follow Islamic laws like inheritance law in letter and spirit. If all Muslims obeyed these laws, the world would become a better place for Muslim women.
“The Worst is Yet to Come”— Recession 2023 & the Looming Uncertainty
Recession 2023 is just around the corner.
The global economic crises are now inducing the certainty of a looming recession. Economists and financial organizations warned of upcoming uncertainty; however, regrettably, the world failed to decode the uprising of the economic catastrophe.
Today’s economies around the globe are confronting an urgent economic crisis and is on the brink of a recession. And, the experts fear the worst is yet to come!
Shear Impact on Leading Economies – US, UK, China, and India
“Global growth is slowing sharply, with further slowing likely as more countries fall into recession. My deep concern is that these trends will persist, with long-lasting consequences devastating for people in emerging markets and developing economies,”World Bank Group President David Malpass.
For the first time since 2009, the US declared negative GDP growth two quarters in a row, which officially qualifies as a recession.
The British Pound is at its historic low of $1.038 against US dollars due to rare emergency interventions. Cities and states in China are still in lockdown because of a rise in Covid-19 cases. On the other hand, Indian Rupee is at its 75-year low of Rupees 82.11 against the US dollar, soaring the hike in repo rates to 5.90%.
Srilanka already declared insolvency earlier this year. Russia and Ukraine war had already set the stage for World War III. And the recent resilience of china on Taiwan has tarnished the world economic environment.
All these together indicate the harsh truth: Recession 2023 will worsens the conditions of all major economies and push the globe into undefined circumstances like:
- Central banks hiking the interest rates
- Hike in energy and food prices
- Depreciation of major currencies against the dollar
Central Banks Hiking the Interest Rates
To counteract rising inflation and the impact of a strong currency on the economies, central banks are hurriedly raising interest rates. This happens as the US Federal Reserve keeps up its aggressive interest rate hikes.
On the other hand Reserve Bank of India is also struggling with persistently high inflation, which is made worse by geopolitical unrest, droughts, and supply-chain disruptions.
Hike in Energy and Food Prices
Russia is the world’s third-largest oil-producing country. It provides 7-8 million barrels of crude oil per day, or 14% of global production, to international markets.
The US and UK’s restrictions and many other nations’ decisions to stop purchasing Russian petroleum have exacerbated the crisis.
Russia and Ukraine are the biggest sunflower oil producers globally and the second most frequently used cooking oil. However, sunflower oil cannot yet be exported from Russia due to the tightening of import restrictions.
Plus, due to the increasing demand for sunflower oil in the market, other edible oils are now more expensive, raising the cost of food and other products across borders.
Depreciation of Major Currencies Against the US Dollar
Compared to the US dollar, the Japanese yen has dropped to its lowest level since August 1998. The Indian rupee is hitting its lowest in history, and for the first time in 20 years, the euro is now lower than the USD.
The decline of major currencies indicates the current state of the global economy. Moreover, it provides a crystal-clear forecast of how disastrous the recession 2023 would be if significant steps are not taken to control the situation.
The Decelerating Global Economy: IMF Forecast for Recession 2023
The International Monetary Fund (IMF) is warning that over a third of the economy is headed for a recession this year or next. Its world outlook shows growth withering from 6.0% in 2021, 3.2% in 2022, and an estimate of just 2.7% in 2023.
Recession 2023 will be different from all the recessions the world has faced to date. Different factors are driving economic crashes in different countries, for example:
The ongoing turmoil in the national and global market is further sparking the threat of World War III.
Rising Certainty of World War III
Russia has already invaded Ukraine, and in opposition to Ukraine’s protection, the US cleared this support with Ukraine by immediately sending weapons to Ukraine. Such US behavior infuriated Russia, leading to increased attacks.
Russian President Vladimir Putin warned the US and European countries that further expansion of support to Ukraine might lead the situation to a ‘Global catastrophe.’
On the other hand, China assaulted Taiwan due to the recent visit of the US finance minister. The current clash of China and Indian troops erupt seriously, leading to grim conflict on north-east Indian borders.
Additionally, civil wars in countries like Somalia, Yemen, Syria, Ethiopia, Afghanistan, and Mali are raising the certainty of World War III.
Needless to say, World War III will destroy the world economy, resulting in more financial turmoil, starvation, a hike in oil prices, and the depreciation of currencies.
Recession 2023: The Worst is yet to come
Slowing down economies, high repo rates, depreciation of currencies, bankrupted countries, and looming wars between nuclear countries are further solidifying the onset of a cold economic winter.
The circumstance indicates what is coming. The indication of recession, the yell of “the worst is yet to come.“
However, to wrench the global situation on track, policymakers should continue to give needy powerful tailored assistance to respective governments while also putting in place reliable medium-term fiscal strategies.
Featured3 years ago
The Unfortunate Correlation between Race and Covid 19
Featured2 years ago
Practical Ways to Fight Depression in Islam
Featured2 years ago
Forget About Terrorism, Have You Met Cybercrime?
Featured2 years ago
The Connection Between Muslim Prayers (Namaz/Salah) and Yoga Poses
Featured2 years ago
“Do Not Waste Water Even If You Were at a Running Stream” Prophet Muhammad
Featured2 years ago
Protecting half the planet: a potential solution for climate change and endangered species
Featured2 years ago
Monsoon Floods: A Recurring Hazard
Featured3 years ago
NASA And SpaceX Collaborate On A Historic Mission