INDIA NEWS
Feb 16-29, 2024 - Vol 4, Issue 14
From the editor’s desk Modi’s leadership shines as diplomacy wins Emir Sheikh Tamim bin Hamad Al Prime Minister Narendra Modi has once again showcased his dedication to the welfare of all Indians, irrespective of their circumstances or whereabouts. He stands as a leader who views every Indian as an integral part of the national fabric. A hallmark of exemplary leadership lies in the readiness to make decisions that serve the country and its people. The Indian diaspora holds a special place in Modi's heart, evident in his efforts to connect with them on various occasions. Modi's leadership shone brightly during the Covid-19 pandemic, notably with his decision to provide free vaccination to all Indians, a monumental task by any standard. This move highlighted his unwavering commitment to ensuring the health and safety of every citizen, regardless of their socioeconomic status or geographic location. He did not shy away from taking tough decisions such as the abrogation of Article 370, which was the need of the hour, given the fact that terrorism was out of control and the valley was set ablaze by the acts of Pakistanbacked terrorists. There are not many leaders in the world that would embark on an arduous path to fight terrorism in the country. Of course, Modi has the cushion of a comfortable number of seats in Lok Sabha and Rajya Sabha to support him. Both Modi’s domestic and foreign policies are decisive. He takes on the opposition anywhere, within the country or outside it, with the confidence of a seasoned leader who knows what he is doing for the people of his country. He has shown maturity and responsibility in dealing with international issues. The recent success of the Narendra Modi government in securing the release of eight former Indian Navy personnel from the Qatar government is a testament to effective diplomacy and leadership. This diplomatic achievement, coming just before the general elections, highlights Modi's commitment to safeguarding Indian citizens abroad. The release of these veterans, whose death sentences were overturned by Qatari courts in December last year, reflects the proactive approach of the Modi government in protecting its citizens' interests globally. The timing of their release, ahead of Prime Minister Modi's visit to the UAE and Qatar, underscores the strategic importance of diplomatic engagements in achieving favorable outcomes. Modi's interactions with Qatar's
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Thani, along with the persistent efforts of National Security Advisor Ajit Doval, played a crucial role in facilitating this diplomatic breakthrough. While the specifics of the negotiations remain undisclosed, it is evident that India's behind-the-scenes diplomacy and legal assistance from the Ministry of External Affairs were instrumental in persuading the Qatari government to reconsider its stance.
The change in the Qatari government's attitude may have been influenced by Modi's meeting with Al Thani during the COP28 summit in Dubai, followed by Indian Ambassador Vipul's consular access to the detained individuals. The Ministry of External Affairs' announcement of the veterans' release underscores Modi's personal involvement and the government's proactive approach. The gratitude expressed by the veterans towards Prime Minister Modi upon their return underscores his pivotal role in securing their freedom. Their ordeal, detained on charges of spying for Israel, serves as a reminder of the challenges faced by Indian nationals abroad. The relentless efforts of the Indian government, supported by Modi's personal intervention, ensured justice and protection for its citizens. As India celebrates the safe return of the naval veterans, it underscores the significance of effective leadership and persistent diplomacy in safeguarding national interests. Modi's diplomatic success not only enhances India's influence on the global stage but also reaffirms its commitment to protecting its citizens worldwide. Looking ahead, India must continue prioritizing the safety and well-being of its citizens abroad while upholding the principles of diplomacy, cooperation, and mutual respect in its international engagements. Modi's leadership in navigating complex diplomatic challenges serves as a beacon of hope and inspiration for the nation as it navigates the global arena. Modi ‘s recent visit to the UAE and Qatar was to emphasize the importance India gives to the Middle East. Within the country, Modi is facing many challenges, the farmers’ agitation being one of them. Since India faces general elections this year, Modi’s leadership will once again be tested as to how he and his government manage to deal with the farmers’ agitation. Going by Modi’s brand of leadership, he keeps a watch on the developments and acts decisively in everyone’s interest as and when it is needed.
EDITORIAL
India’s Interim Budget 2024-25: A path to economic resilience & inclusive growth The White Paper on Indian Economy- a reflection
By Rabindra Mukherjee India's economic journey has drawn both international attention and admiration. In light of global economic challenges and domestic imperatives, India’s Interim Union Budget for 20242025, presented by India’s Finance and Corporate Affairs Minister Nirmala Sitharaman, outlines a strategic framework aimed at fostering economic resilience, driving sustainable growth, and promoting inclusive development. Capital expenditure & economic expansion A significant feature of the budget is the substantial increase in capital expenditure, witnessing an 11.1% rise to Rs 11,11,111 crore, constituting 3.4% of the GDP. This increased allocation underscores the government's commitment to bolstering infrastructure, enhancing productivity, and stimulating employment generation across various sectors. It builds upon the substantial tripling of capital expenditure outlay observed over the past four years, stimulating economic growth and job creation. Resilient economic fundamentals & growth projections Despite facing global headwinds, India's economy has displayed remarkable resilience and maintained robust macroeconomic fundamentals. The projection of a 7.3% Real GDP growth rate for FY 202324 reflects strong economic momentum, buoyed by robust growth in key sectors. Reputable institutions such as the Reserve Bank of India (RBI) and the International Monetary Fund (IMF) have revised their growth forecasts upwards, indicating growing global confidence in India's economic capabilities. Global recognition & projections India's economic progress has earned international recognition, with the IMF projecting India to become the third-largest economy by 2027. Various global agencies, including the World Bank, IMF, OECD, and ADB, have forecasted India's growth trajectory, with estimates ranging between 6.1% and 6.7% for 2024-25. This widespread acknowledgment underscores India's emergence as a significant driver of global economic growth and stability. Revenue collections & fiscal discipline The buoyancy in economic activity has resulted in robust revenue collections, with GST collection surpassing the Rs 1.6 lakh crore mark for the seventh time. The budget estimates for 2024-25 reflect a balanced approach between receipts and expenditures, focusing on fiscal consolidation. Despite the estimated fiscal deficit of 5.1% of GDP for 2024-25, the government remains committed to reducing it below 4.5% by 2025-26, aligning
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with the path of fiscal discipline. Empowering states & driving reforms A notable announcement in the budget relates to the continuation of the fifty-year interestfree loan scheme for capital expenditure to states, totalling Rs 1.3 lakh crore. This initiative underscores the government's dedication to empowering states and supporting reforms aimed at fostering inclusive growth and development. Additionally, strategic initiatives like the PM Awas Yojana and rooftop solarization aim to address housing and energy needs while spurring economic activity. Focus on inclusive development & social justice At the core of the budgetary vision lies a steadfast commitment to inclusive development and social justice. The government's focus on empowering marginalized sections of society, including the 'Garib' (poor), 'Mahilayen' (Women), 'Yuva' (youth), and 'Annadata' (farmer), reflects an inclusive approach to governance. Development programs targeting each household and individual, coupled with efforts towards 'Sabka Saath', underline the government's commitment to leaving no one behind. Stimulating innovation & infrastructure development The budget provisions earmarked for stimulating innovation and infrastructure development underscore a forward-looking approach to economic growth. Initiatives such as establishing a corpus of Rs 1 lakh crore with a fifty-year interest-free loan aim to incentivize research, innovation, and private sector participation in emerging sectors. Additionally, investments in critical sectors such as railways and aviation demonstrate a concerted effort towards building a modern, resilient, and sustainable infrastructure ecosystem. Charting a path towards Viksit Bharat India's Interim Budget 202425 reflects the government's unwavering commitment to steering the nation towards progress, prosperity, and equity. As stakeholders across sectors collaborate and innovate, India is poised to realize its aspirations of becoming a global economic powerhouse while ensuring inclusivity and sustainable growth. The Interim Budget lays down a comprehensive roadmap for India's transformation into a 'Viksit Bharat' by 2047, characterized by economic vibrancy, social equity, and sustainable development. As the government continues its agenda of nation-building with renewed vigour, the budgetary proposals set the stage for a new era of growth and prosperity for all Indians.
The White Paper tabled by India’s Finance Minister Nirmala Sitharaman stands as a comprehensive testament to India's economic journey over the past decade. Through its candid assessment of the pre2014 era and the subsequent strides made under the Narendra Modi government, the document offers invaluable insights into the nation's economic evolution, triumphs, and tribulations. The White Paper paints a vivid picture of the economic landscape inherited by the Modi government in 2014—a landscape marred by fragility, financial indiscipline, and widespread corruption. It sheds light on the formidable challenges faced, including a mountain of bad loans, fiscal deficits, and doubledigit inflation, all of which cast a shadow on India's economic prospects. Amidst this turmoil, the imperative to restore hope, attract investments, and institute much-needed reforms loomed large—a clarion call for decisive action and unwavering commitment. The document serves as a stark reminder of the legacy of the previous regime, characterized by policy misadventures, scandals, and a systemic erosion of trust. From the banking crisis to the specter of retrospective taxation, the UPA government's tenure was fraught with challenges that undermined India's economic resilience and global standing. The White Paper's candid appraisal underscores the magnitude of the task at hand—a task compounded by a legacy of missed opportunities and flawed policies. However, amidst the gloom, the White Paper heralds a narrative of resurgence and renewal under the leadership of the Modi government. Armed with political and policy stability, the government embarked on a trajectory of bold reforms and strategic interventions aimed at nurturing sustainable economic growth. From addressing the banking crisis to recalibrating fiscal policies, the government's approach has been defined by pragmatism, foresight, and a steadfast commitment to national interests. Central to this narrative of resurgence is a paradigm shift in economic governance—one marked by a focus on long-term sustainability, inclusivity, and resilience. Unlike its predecessor, the Modi government prioritized investments in the foundations of the economy, laying the groundwork for sustained growth and prosperity. The results speak volumes—India's ascent to becoming one of the top five economies, its robust foreign exchange reserves, and the tangible reduction in inflation underscore a narrative of tangible progress and economic resilience.
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