Modi Meets Xi Jinping; Car Bomb Kills Dozens in Afghanistan; 91 Police Officers Killed in Karachi This Year

India

Bonus Read: Sri Lanka’s Downward Spiral, Taylor Dibbert (South Asia)

Narendra Modi meets Xi Jinping, discusses India-China border

Indian Prime Minister Narendra Modi and Chinese President Xi Jinping, in their first one-on-one meeting in the Brazilian resort city of Fortaleza on Monday, spoke about resolving a border dispute that has strained ties between the two countries for decades (Hindustan Times, The Financial Express, Livemint, Times of India, The Hindu). Modi said if the two nations amicably resolve the border issue, it would set an example for the world on peaceful conflict resolution. Xi called for a "negotiated resolution" to the boundary dispute "at an early date." In 1962, the two countries fought a brief war and have since disagreed over their shared border. Special representatives appointed to resolve the border issue have held 17 talks to date.

Scheduled for 40 minutes, the meeting lasted for 80 minutes and also broached issues of bilateral trade. Modi encouraged additional Chinese investment in infrastructure and hoped the trade imbalance between the two countries can be improved. China is India’s second largest trade partner. Xi invited Modi to attend the Asia-Pacific Economic Cooperation (APEC) meeting in November and said: "India should deepen its engagement with the Shanghai Cooperation Organisation (SCO)." Modi pointed out that India currently has an observer status in the SCO, however, it is willing to become an active member. SCO is a Eurasian political, economic and military organization founded by the leaders of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan.

Looking forward, Xi said he was looking forward to his visit to India in September, and welcomed Modi to visit China this year. Xi said further: "When India and China meet, the whole world watches." After the meeting Modi tweeted: "Had a very fruitful meeting with Chinese President Mr. Xi Jinping. We discussed a wide range of issues." Modi and Xi are attending the sixth annual BRICS summit, a meeting of leaders from the five emerging economies of Brazil, Russia, India, China, and South Africa. Together, China and India make up about a third of the world’s population.

Indian government: no proposal to repeal Article 370

Prime Minister Narendra Modi’s government has no proposal to repeal Article 370 of the Constitution, the Lok Sabha (India’s lower house of Parliament) was informed on Tuesday (Livemint, IBNLive, The Hindu Business Line). After Modi came to power in May, his Minister of State from the Prime Minister’s Office, Jitendra Singh, had started a controversy by saying the government was open to debate on merits and demerits of Article 370. Singh had said further that the government would make efforts to "convince" the "unconvinced" in Jammu and Kashmir on revoking Article 370.

Article 370 grants Jammu and Kashmir special autonomous status, and states that, except for foreign affairs, defense, communications, and ancillary matters (those specified in the instrument of accession), the Indian parliament needs the state government’s concurrence for applying all other laws.

Inflation eases as threat of drought continues

Inflation slowed in the month of June at both the wholesale and retail levels under the Prime Minister Narendra Modi-led government, according to Indian news reports on Tuesday. The consumer price inflation for June tumbled to a 29-month low of 7.31 percent due to the fall in food prices (Times of India, Livemint, Economic Times). The wholesale price index (WPI)-based inflation fell to a four-month low of 5.43 percent in June against a five-month high of 6.01 percent in May after the Modi-led government curbed farm exports, according to government data released on Monday (Livemint, Hindustan Times, Business Standard).

Despite the lower inflation rate, it is expected that the Reserve Bank of India (RBI) will not cut interest rates due to the growing risks of a drought. The RBI kept interest rates at 8 percent in their June policy meeting. Weak rainfall in India this year has already driven up prices of basic food items such as milk, potatoes, and tomatoes. The India Meteorological Department reported that rainfall until July 9 was 43 percent lower than normal.

— Neeli Shah and Jameel Khan

Afghanistan

Bonus Read: Anxious Moments for an Afghanistan on the Brink, Carlotta Gall and Matthew Rosenberg (NYT)

Car bomb kills dozens of people in Paktika

A car bomb detonated in a crowded market killed at least 30 people in Paktika province on Tuesday (RFE/RL, Pajhwok, TOLO News).  Conflicting casualty counts are emerging with Gen. Zahir Azimi, a defense ministry spokesman, saying that Afghan troops have already recovered more than 40 bodies and were still finding more.  A later BBC report — citing the defense ministry — placed the death toll at 89 (BBC).  Nissar Ahmad Abdul Rahimzai, the local deputy police chief, said that at least 30 people have been taken to local hospitals, while Pajhwok Afghan News claimed that at least 70 injured people have been brought to the province’s civil hospital.  So far, no group has claimed responsibility for the attack.

Senate rejects lawmakers’ privileges bill

The Meshrano Jirga, Afghanistan’s upper legislative house, rejected a bill on Tuesday that would have granted lawmakers privileges after they left office (Pajhwok).  The bill would have allowed members of the lower house to maintain 25 percent of their salaries and two security guards after they finished their term.  The bill had been passed by Afghanistan’s lower house.  According to the Afghan constitution, when the two houses disagree, a committee made up of equal members of both houses must take up the issue.

Abdullah and Ghani to meet Tuesday

Abdullah Abdullah and Ashraf Ghani, Afghanistan’s two presidential candidates, are scheduled to meet on Tuesday to discuss several issues, including the formation of a unity government, according to their campaign staffs (Pajhwok).  The meeting is scheduled to occur at Ghani’s residence.  According to Nouman Shinwari, a spokesman for Ghani, the meeting will be the first time the two rivals will have direct contact in discussing electoral issues.  The scheduled meeting follows a press conference on Saturday in which Ghani and Abdullah announced an agreement to end the electoral crisis brokered by U.S. Secretary of State John Kerry.  Bonus Read: Afghanistan’s Audacious Audit, Nishank Motwani (South Asia)

Pakistan

Bonus Read: Riedel: The War Against the Soviets in Afghanistan was Run by Zia, Not by Us, Haley Parsons (Best Defense)

Ninety-one police officers killed in Karachi this year

Ninety-one police officers and nine paramilitary rangers were killed in Karachi so far this year, according to a police report, cited by the Express Tribune on Tuesday (ET).  The report notes that January was the most deadly month of the year so far with 25 police officers killed.  Eight police officers have been killed in the city during the first half of July.  Karachi has seen a wave of violence recently, including the killings of two police sub-inspectors over the past week (Dawn).

Bajaur prepares for operation

Pakistani military and political officials have decided to launch a targeted operation on the Mamond tehsil area of Bajaur agency, the Express Tribune reported on Tuesday (ET).  According to Shah Naseem Khan, the assistant political agent of the Nawagai subdivision, intelligence reports about the presence of militants prompted the operation.  Another official pointed to a cross border attack by the Pakistani Taliban that killed three security personnel on Friday.  Five villages were told to evacuate in preparation for the operation. 

New polio cases emerge

Three new polio cases were identified in Khyber agency on Monday, while in Sindh province one person was diagnosed with polio (ET).  The Polio Virology Laboratory at the National Institute of Health in Islamabad confirmed the new cases.  The new polio cases bring the number of cases so far this year to 92.  There were 93 cases of polio in Pakistan in 2013.

Moody’s upgrades Pakistani economy

The rating agency Moody’s upgraded its rating of Pakistan’s economy on Monday from negative to stable (Dawn).  A Moody’s report highlighted Pakistan’s increasing foreign exchange reserves and control over its debt.  According to the rating agency, "Moody’s decision to revise the outlook on Pakistan’s foreign currency rating is primarily based on a stabilisation in the country’s external liquidity position, supported by the government’s strong commitment to reforms under an ongoing programme with the International Monetary Fund."  Ishaq Dar, Pakistan’s finance minister, welcomed the upgrade, saying: "As a result of hard work, commitment and financial discipline introduced by the government that the world has changed its outlook towards Pakistan."

–David Sterman

Edited by Peter Bergen