??PM Modi plays peacemaker, lands in Ukraine | ??Freebie politics leading to hike in prices of necessities in K'taka?

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Market Watch

• India's benchmark indices ended flat as investors remained cautious ahead of Fed Chair Powell’s comments at Jackson Hole. At close, the Sensex was up 33.02 points at 81,086.21, and the Nifty was up 11.65 points at 24,823.15.
• Sectotrally, auto index was up 1%, while metal, realty, media, PSU Bank and IT booked losses.

PM Modi plays peacemaker, lands in Ukraine

Prime Minister Narendra Modi visited Ukraine and became the first Indian Prime Minister to do so since diplomatic ties were established.

• Modi paid homage to the victims of the conflict, particularly children, by visiting the Martyrologist exposition in Kyiv, detailed by The Times of India.
• India and Ukraine signed four significant agreements focusing on agriculture, medicine, culture, and humanitarian assistance, enhancing bilateral cooperation.
• Prime Minister Modi reiterated that India is not ‘neutral or a bystander’ but is always on the side of peace, highlighting the importance of dialogue and diplomacy for conflict resolution.

The backdrop: After PM Modi visited Russia in July, Ukraine?President Zelensky criticized?PM Modi's meeting with Putin, calling it a “devastating blow to peace efforts.”

• Following Modi's visit, Ukraine cancelled a scheduled cultural working group meeting, despite recent engagements between the two nations.
• India conveyed its concerns to Kyiv regarding Zelensky's comments.

Between the lines: Experts believe that Modi's historic visit to Ukraine will emphasize defense cooperation, particularly given India's large inventory of Russian and Ukrainian military equipment. Ukraine, known for its battle-tested systems and technologies, has expressed interest in joint ventures with Indian companies.?

• According to Amit Julka, an assistant professor at Ashoka University, during his visit to Kyiv, Prime Minister Narendra Modi will focus on positioning India as a peacemaker while engaging in humanitarian assistance.
• The visit is seen as mutually beneficial, especially for the Indian Air Force's An-32 fleet upgrade, which has been delayed due to the conflict.
• The international media sees the visit as a diplomatic balancing act, an attempt by India to maintain its strategic autonomy by engaging with both Ukraine and Russia.

Thing du jour

In honour of India celebrating its first National Space Day: Never-seen-before images from the Chandrayaan-3 mission have been released. Also, Chandrayan-3 confirmed that the Moon was once covered by magma ocean and the findings have been published in Nature journal.

Freebie politics leading to hike in prices of necessities in K'taka?

Karnataka Deputy Chief Minister and Bengaluru Development Minister DK Shivakumar stated the inevitability of a water tariff hike in Bengaluru, citing financial difficulties faced by the Bangalore Water Supply and Sewerage Board (BWSSB). He said, “No matter who says what, I will increase water prices.”

Why? DK Shivakumar emphasized that the BWSSB has not increased water tariffs in the last 12-13 years, causing financial strain.

Financial woes at BWSSB: BWSSB, which serves about 800 sq km of Bengaluru, earns around Rs 119 crore monthly, but nearly 57% of this is spent on electricity bills for pumping water from the Cauvery River.

• The remaining funds are insufficient to cover salaries, pensions, maintenance, and administrative costs.
• Plans are underway to establish a captive power generation facility to offset rising electricity costs.

The impact: Residents will face inflated water bills and are also likely to see an increase in the prices of water tankers at a time when the city recently faced a heavy water shortage.?

Why there is outrage: Freebie politics in Karnataka and Himachal Pradesh has led to significant financial strain on both states.

In Karnataka, the implementation of five major welfare schemes, including free bus rides for women, financial assistance for women heads of families, and free electricity, has cost nearly one-sixth of the state's annual budget.

• Last month, the Karnataka government hired the Boston Consulting Group (BCG) reportedly at the cost of Rs 9.5 crores for six months to explore new revenue streams.
• In July, the Karnataka government faced massive backlash for hiking fuel tax by Rs 3/litre. Earlier the government also hiked the Nandini Milk prices.

Similarly, in Himachal Pradesh, the Sukhvinder Singh Sukhu-led government is facing financial difficulties due to populist schemes like reverting to the old pension system for 1.36 lakh state employees and providing monthly financial assistance to women. The state has had to borrow funds to service its debts, highlighting the financial challenges posed by such welfare measures.

ICYMI

• SEBI has taken a firm stance by banning Anil Ambani and 24 others from participating in the securities market for the next five years.
• Zepto is about to close a fresh $340 million round led by General Catalyst, surpassing $1 billion in funding in two months.
• India bans 156 commonly used combination drugs citing possible risks to humans.
• In Madhya Pradesh, tensions escalated as over 40 individuals were arrested following a stone-pelting incident at a local police station.
• The review of the Income Tax Act is on a fast track, with the CBDT Chairman promising its completion within six months.
• Afghanistan continues to impose strict regulations as it bans women from singing or reading aloud under a new law.
• The relocation of Drishti IAS to Noida is stirring up concerns about a possible mass exodus of other coaching centres from Mukherjee Nagar.
• 7 lakh cars worth Rs 73,000 crore lying unsold with dealers — Why India's middle class isn't buying cars.