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Open Forum
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Savings Slump, Revenue Crunch: CAPEX UP, OPTIMISM EBBS, By Shivaji Sarkar, 17 Sept 2026 |
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Economic Highlights
New Delhi, 17
September 2026
Savings
Slump, Revenue Crunch
CAPEX UP, OPTIMISM
EBBS
By Shivaji
Sarkar
By conventional
macroeconomic yardsticks, India should enter the financial year 2026–27 (FY27) Budget
cycle with a degree of comfort. Growth is expected to remain above 7 per cent,
inflation has eased from its post-pandemic peaks, and fiscal consolidation
appears broadly on track, with the fiscal deficit projected to narrow to around
4.4 per cent of GDP. On the surface, in a slowing global environment, the
economy looks resilient.
Yet budgets are not
written for periods of comfort; they are crafted to anticipate stress. Beneath
reassuring aggregates lie deep structural pressures that the FY27 budget cannot
afford to overlook—weak household savings, skewed public expenditure, a
hesitant manufacturing sector, fragile private investment, external trade
risks, and a farm economy mired in low productivity. Stability, in short, risks
masking stagnation. Inflation that was contained is again on the rise at 4.5
per cent, the Reserve Bank of India tolerance threshold limit.
Revenue on Fragile
Households
India’s recent
revenue performance has benefited from buoyant indirect taxes, improved
compliance, and steady nominal growth. Yet the quality of revenue is critical.
Net household financial savings fell sharply to approximately 5.2 per cent of
GDP in FY24, one of the lowest levels in decades as household indebtedness
rose.
This pattern suggests
that tax buoyancy has been sustained in part by households consuming more and
saving less. Such a fiscal base is inherently fragile. An economy cannot
indefinitely extract revenue from households whose financial buffers are
shrinking. The FY27 Budget must, therefore, be cautious about over-reliance on
consumption-led revenues and should seek to broaden the tax base—not by deeper
penetration into already-stretched household finances, but through formal
employment growth and productive investment.
Expenditure: Capex
Heavy, Productivity Light
Public expenditure
has leaned heavily on capital outlays since FY21, with central capital
expenditure now exceeding Rs 11 lakh crore. This emphasis has helped stabilise
growth and strengthen physical infrastructure. However, the composition of
spending reveals a growing imbalance.
Investment in human
capital—education, skills, health, and research—lags badly. Education spending
has stagnated around 3 per cent of GDP, teacher vacancies remain unfilled, and
learning outcomes continue to disappoint. R&D spending has stagnated near
0.7 per cent of GDP, far below thresholds typical of innovation-driven
economies. Infrastructure without corresponding investment in human capital
risks creating assets the economy cannot fully utilise, weakening long-term
returns on public investment.
In advance of the new
budget’s presentation on February 1, the government has raised the GST rate on
pan masala, cigarettes, tobacco and similar products to 40 per cent, with biris
attracting 18 per cent GST as a revenue-enhancing measure.
In addition, the
railways raised fares twice during the year, yielding about Rs 3,900 crore
against a prior surplus of Rs2,517.38 crore in 2022–23. These moves aim to
support revenue and contain the deficit, as the IMF has flagged a potential
“revenue squeeze” in the central budget.
Manufacturing,
Investment: Fragile
Manufacturing remains
a weak link in India’s growth, with capacity utilisation still below levels
needed to spur large-scale private investment and core industrial demand
softening. While Production-Linked Incentive (PLI) schemes have attracted
nearly Rs 2 lakh crore in realised investments and generated over 12.6 lakh
jobs, they cannot substitute for a broad revival on their own. Recent PMI data
show India’s factory activity cooling, with new orders and output growth
slowing to multi-month lows.
Sustainable
manufacturing growth depends on predictable regulation, faster clearances,
reliable logistics, and timely payments—structural constraints that continue to
deter private capex. Although corporate balance sheets are healthier than a
decade ago, firms remain cautious amid delays in government payments,
regulatory unpredictability, and an MSME credit system that favours short-term
liquidity over long-term capacity building.
To unlock private
investment, the budget should mandate penal interest on delayed government
payments, publish a quarterly transparent dues dashboard, and redesign credit
guarantee schemes to prioritise capital expenditure over working capital. Such
reforms would do more to catalyse investment than additional fiscal incentives alone.
External Risks:
Tariffs, FTAs, and Russia Trade
The global
environment adds further complexity. A potential return of Trump-era tariff
aggression poses risks to India’s export strategy, particularly in steel,
aluminium, pharmaceuticals, and IT services. India cannot assume benign access
to the US market in FY27 and beyond. At the same time, a slew of free trade
agreements (FTAs) has delivered only modest export gains, and many have widened
trade deficits without significantly boosting value-added exports—reflecting
weaknesses in domestic competitiveness rather than market access alone.
Trade with Russia has
expanded in value but remains lopsided, dominated by energy imports settled
through complex payment mechanisms. While geopolitically strategic, these ties
have done little to strengthen Indian manufacturing exports. The Budget must
focus on export capability—improving logistics, standards, and scale—rather
than relying on strategic trade alone.
The Farm Sector: The
Silent Constraint
Agriculture still
employs nearly half the workforce while contributing less than a fifth of GDP.
Productivity remains low, incomes are volatile, and climate risks are rising.
Budgetary support continues to be skewed toward subsidies rather than
investment in irrigation, storage, crop diversification, and agro-processing.
Recent changes to
rural employment schemes and procurement policies risk weakening income buffers
without offering sustainable alternatives. The FY27 Budget must tread
carefully: weak farm incomes directly affect consumption, savings, and broader
economic stability. A credible farm strategy would prioritise
productivity-enhancing investment over repeated fiscal band-aids.
Savings–Investment
Trap
Despite improvements
in Direct Benefit Transfer (DBT) targeting, vulnerability remains high. Health
shocks, income volatility, and inadequate insurance continue to suppress
household savings and risk-taking. An economy that seeks higher investment
cannot leave households one illness away from financial distress. The Budget
must pivot from transfer-heavy welfare toward genuine risk
protection—especially in health coverage and income stabilisation—a step that
is not just social policy, but a macroeconomic necessity.
The Real Budget
Question
The central question
for the FY27 Budget is not whether India can maintain stability—it likely can.
The real challenge is whether it can convert that stability into sustained,
broad-based growth. Achieving this will require hard choices: redirecting
expenditure toward productivity, addressing institutional frictions that deter
private investment, preparing for external trade shocks, and confronting
long-neglected sectors like agriculture and human capital.
India does not face a
fiscal crisis. But it does face an institutional test. The FY27 Budget will
reveal whether the state is ready to move beyond managing aggregates to
strengthening the foundations beneath them.---INFA
(Copyright,
India News & Feature Alliance)
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Chancellor Merz’s Visit: STRENGTHENING INDIA-GERMANY, EU TIES, By Dr. D.K. Giri, 16 Jan 2026 |
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Round The World
New
Delhi, 16 January 2026
Chancellor
Merz’s Visit
STRENGTHENING
INDIA-GERMANY, EU TIES
By Dr. D.K. Giri
(Prof of Practice,
NIIS Group of Institutions)
German
Chancellor Friedrich Merz two-day visit to India marked a significant milestone
in the bilateral relations. Accompanied by 23 CEOs of German companies from
various sectors, Merz landed in Ahmedabad on 12 January. Having spent a full
day in multiple events, in the company of Indian Prime Minister Narendra Modi,
the Chancellor flew to Bengaluru. The intent and composition of the delegation
was reflected in signing number of MoUs and Joint Declaration of Intents which
aimed at strengthening economic, technological and security cooperation between
the two countries.
For
Chancellor Merz, it was his first trip to India and Asia as the Head of the German
Government. Merz chose India for his first Asian trip as Chancellor, indicating
a shift in strategy among European leaders, who previously focused on China. Prime
Minister Modi, however, pointed out that Chancellor Merz’s visit coincided with
India and Germany acknowledging 25 years of strategic partnership and 75 years
of diplomatic relations between two countries. New Delhi is also preparing to
receive the EU leaders as the guests in the ensuing Republic Day parade. Their
visit should coincide with the India-EU summit later this month. Soon after,
the French President Emmanuel Macron is visiting India.
The
new year seems to be starting with bonhomie between Indian and the European
leadership. German Chancellor suggested that India and the EU could be
concluding the FTA by the end of January. Germany being the largest economy in the
Union, German Chancellor’s voice carries considerable weight. The strategic
shift in German foreign and trade policy could be detected in Chancellor’s
poignant remarks that the world is experiencing “a renaissance of unfortunate
protectionism” that harms Germany and India. He did not name any country, but
the reference was obvious.
While
the United States has imposed heavy tariff on trading partners, China
introduced export controls on minerals used in auto manufacturing causing
months of supply chain disruption last year due to the US-China trade war. This
has badly affected German car makers. Germany has signalled diversification of
its trade and search for alternatives to Chinese exports and market. More than
once, the German leadership have revealed their preference for India as a democratic
alternative to Chinese authoritarian state. Germany has also expressed interest
in building trade relations with India, treating latter as a new source of
supply chain.
That
said, Germany has not been able to divert its trade away from China with its
bilateral trade pegged at 287b USD in 2024-25, compared to 50b USD with India
in the same year. Germany remains the largest trading partner of China, whereas
Germany is the largest trading partner of India in Europe. The delay in German
disinvestment from China and in deepening trade and economic ties with India
may be attributed to the strategic divergence between India and Europe that
includes Germany on the war in Ukraine.
While
Europe treats Russia as the main security threat, New Delhi puts China on the
table as an aggressive and aggrandising neighbour. Germany is yet to take a
concrete call on its attitude towards China, if Bonn wants to have strategic
partnership with New Delhi. The geo-political approach has to be matched with
trade and economic strategy. Admittedly, Germany has pursued a China plus
strategy to reduce the excessive dependence on a single partner. Its trade with
China is declining reflecting both emerging challenges in political engagement
and Germany’s diversification efforts.
Chancellor
Merz may have overstepped as he decided to characterise the growing
India-German defence relationship as a means to reduce New Delhi’s dependence
on Russian defence hardware. At the same time, the MoUs and JDIs included
strengthening bilateral defence industrial cooperation, a semi-conductor eco
system partnership, cooperation on critical minerals and the bio-economy, a
roadmap for higher education, easier visa access for health professionals,
India-Pacific and scaling up triangular development cooperation in third
countries.
The
key highlights of the visit include defence cooperation: both countries signed
a Joint Declaration of Intent to develop a defence industrial cooperation
roadmap, focusing on long-term technology partnerships, co-development and
co-production of defence equipment. In trade and economy, the two countries aim
to conclude the India-EU Free Trade Agreement by the end of January which
should also boost bilateral trade. On critical technologies, agreements were
signed on semi-conductor, eco-system development, critical minerals and
telecommunications, underscoring the growing cooperation in critical and
emerging technologies. Germany will contribute technology, funding for
equipment manufacturing, precision engineering and work force training.
On
critical minerals, a JDI was signed focussing on exploration, R&D,
processing, recycling as well as acquisition and development of critical
mineral assets in both countries as well as third countries. Both the countries
emphasised on collaboration on internet and data governance, AI and emerging
technologies. Agreements were signed on green hydrogen, renewable energy,
climate-resilient urban infrastructure with Germany contributing 1.24b Euro
under the Green and Sustainable Development Partnership.
A
major off-take deal was signed between India’s AM Green and Germany’s Uniper
Global Commodities for the supply of green ammonia. On space cooperation, the
Indian Space Research Organisation (ISRO) and the German Space Agency (DLR)
agreed to enhance Space Industry Level Engagements.
The
visit underscores the growing importance of India-Germany relations with
Germany emerging as India’s strategic and trade partner. Strengthened
bilateralism between India and Germany automatically leads to deepening
India-EU ties. Faced with the capricious US trade and security policies, mainly
diluting NATO and the traditional trade ties with Europe, Germany and European
Union are looking for new partners. While China remained for a long time the
strongest trade partner of Germany and the EU, this may no longer be the case
for at least two reasons, one, the growing trade and strategic rivalry between the
US and China, and the ‘systemic threat’ posed by Beijing.
Germany
and the EU will have no other option than giving up their China obsession while
correspondingly reducing their trade with the country. In that scenario, India
emerges as the strongest candidate for an alternative to China. This has been a
potent expectation but has not been transformed into reality. With the visit of
German Chancellor followed by the India-EU Summit, the strategic shift in
Europe should reflect in the deliberations between and EU, conclusion of the
long-awaited FTA, and European Union using New Delhi to pivot to India-Pacific
region.
In
India-EU exchanges in the past, China was the elephant in the room, but now it
is Russia, and US as well. So, the eyes of the world powers will be focused on
the India-EU Summit later this month. New Delhi is certainly bracing up for it
and should not let this opportunity slip out of hand.---INFA
(Copyright, India
News & Feature Alliance)
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Chancellor Merz’s Visit STRENGTHENING INDIA-GERMANY, EU TIES, By Dr. D.K. Giri, 16 Jan 2026 |
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Round
The World
New
Delhi, 16 January 2026
Chancellor Merz’s
Visit
STRENGTHENING INDIA-GERMANY,
EU TIES
By Dr. D.K. Giri
(Prof of Practice,
NIIS Group of Institutions)
German
Chancellor Friedrich Merz two-day visit to India marked a significant milestone
in the bilateral relations. Accompanied by 23 CEOs of German companies from
various sectors, Merz landed in Ahmedabad on 12 January. Having spent a full
day in multiple events, in the company of Indian Prime Minister Narendra Modi,
the Chancellor flew to Bengaluru. The intent and composition of the delegation
was reflected in signing number of MoUs and Joint Declaration of Intents which
aimed at strengthening economic, technological and security cooperation between
the two countries.
For
Chancellor Merz, it was his first trip to India and Asia as the Head of the German
Government. Merz chose India for his first Asian trip as Chancellor, indicating
a shift in strategy among European leaders, who previously focused on China. Prime
Minister Modi, however, pointed out that Chancellor Merz’s visit coincided with
India and Germany acknowledging 25 years of strategic partnership and 75 years
of diplomatic relations between two countries. New Delhi is also preparing to
receive the EU leaders as the guests in the ensuing Republic Day parade. Their
visit should coincide with the India-EU summit later this month. Soon after,
the French President Emmanuel Macron is visiting India.
The
new year seems to be starting with bonhomie between Indian and the European
leadership. German Chancellor suggested that India and the EU could be
concluding the FTA by the end of January. Germany being the largest economy in the
Union, German Chancellor’s voice carries considerable weight. The strategic
shift in German foreign and trade policy could be detected in Chancellor’s
poignant remarks that the world is experiencing “a renaissance of unfortunate
protectionism” that harms Germany and India. He did not name any country, but
the reference was obvious.
While
the United States has imposed heavy tariff on trading partners, China
introduced export controls on minerals used in auto manufacturing causing
months of supply chain disruption last year due to the US-China trade war. This
has badly affected German car makers. Germany has signalled diversification of
its trade and search for alternatives to Chinese exports and market. More than
once, the German leadership have revealed their preference for India as a democratic
alternative to Chinese authoritarian state. Germany has also expressed interest
in building trade relations with India, treating latter as a new source of
supply chain.
That
said, Germany has not been able to divert its trade away from China with its
bilateral trade pegged at 287b USD in 2024-25, compared to 50b USD with India
in the same year. Germany remains the largest trading partner of China, whereas
Germany is the largest trading partner of India in Europe. The delay in German
disinvestment from China and in deepening trade and economic ties with India
may be attributed to the strategic divergence between India and Europe that
includes Germany on the war in Ukraine.
While
Europe treats Russia as the main security threat, New Delhi puts China on the
table as an aggressive and aggrandising neighbour. Germany is yet to take a
concrete call on its attitude towards China, if Bonn wants to have strategic
partnership with New Delhi. The geo-political approach has to be matched with
trade and economic strategy. Admittedly, Germany has pursued a China plus
strategy to reduce the excessive dependence on a single partner. Its trade with
China is declining reflecting both emerging challenges in political engagement
and Germany’s diversification efforts.
Chancellor
Merz may have overstepped as he decided to characterise the growing
India-German defence relationship as a means to reduce New Delhi’s dependence
on Russian defence hardware. At the same time, the MoUs and JDIs included
strengthening bilateral defence industrial cooperation, a semi-conductor eco
system partnership, cooperation on critical minerals and the bio-economy, a
roadmap for higher education, easier visa access for health professionals,
India-Pacific and scaling up triangular development cooperation in third
countries.
The
key highlights of the visit include defence cooperation: both countries signed
a Joint Declaration of Intent to develop a defence industrial cooperation
roadmap, focusing on long-term technology partnerships, co-development and
co-production of defence equipment. In trade and economy, the two countries aim
to conclude the India-EU Free Trade Agreement by the end of January which
should also boost bilateral trade. On critical technologies, agreements were
signed on semi-conductor, eco-system development, critical minerals and
telecommunications, underscoring the growing cooperation in critical and
emerging technologies. Germany will contribute technology, funding for
equipment manufacturing, precision engineering and work force training.
On
critical minerals, a JDI was signed focussing on exploration, R&D,
processing, recycling as well as acquisition and development of critical
mineral assets in both countries as well as third countries. Both the countries
emphasised on collaboration on internet and data governance, AI and emerging
technologies. Agreements were signed on green hydrogen, renewable energy,
climate-resilient urban infrastructure with Germany contributing 1.24b Euro
under the Green and Sustainable Development Partnership.
A
major off-take deal was signed between India’s AM Green and Germany’s Uniper
Global Commodities for the supply of green ammonia. On space cooperation, the
Indian Space Research Organisation (ISRO) and the German Space Agency (DLR)
agreed to enhance Space Industry Level Engagements.
The
visit underscores the growing importance of India-Germany relations with
Germany emerging as India’s strategic and trade partner. Strengthened
bilateralism between India and Germany automatically leads to deepening
India-EU ties. Faced with the capricious US trade and security policies, mainly
diluting NATO and the traditional trade ties with Europe, Germany and European
Union are looking for new partners. While China remained for a long time the
strongest trade partner of Germany and the EU, this may no longer be the case
for at least two reasons, one, the growing trade and strategic rivalry between the
US and China, and the ‘systemic threat’ posed by Beijing.
Germany
and the EU will have no other option than giving up their China obsession while
correspondingly reducing their trade with the country. In that scenario, India
emerges as the strongest candidate for an alternative to China. This has been a
potent expectation but has not been transformed into reality. With the visit of
German Chancellor followed by the India-EU Summit, the strategic shift in
Europe should reflect in the deliberations between and EU, conclusion of the
long-awaited FTA, and European Union using New Delhi to pivot to India-Pacific
region.
In
India-EU exchanges in the past, China was the elephant in the room, but now it
is Russia, and US as well. So, the eyes of the world powers will be focused on
the India-EU Summit later this month. New Delhi is certainly bracing up for it
and should not let this opportunity slip out of hand.---INFA
(Copyright, India
News & Feature Alliance)
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PARTNERS IN PROGRESS AND MORE, By Inder Jit, 15 Jan 2026 |
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REWIND
New Delhi, 15 January 2026
PARTNERS
IN PROGRESS AND MORE
By
Inder Jit
(Writing
from Bonn, 4 November 1986)
Autumn is a good time to
visit West Germany. The weather is delightful -- cool and crisp as in New Delhi
around Christmas. The leaves are beginning to change colour from green to
yellow and further to brown and flaming rust. What is, however, even more
gratifying is the new mood and outlook I have noticed in regard to our country
during a two-week visit here. India now counts more than ever before in West
Germany and enjoys widespread friendship and admiration of its leaders, top
officials and people at large. Things were not too bad when I first visited
this country in 1969 and next in 1982. But a significant qualitative change has
taken place in the four years that have since rolled by. India's achievements
are today seen in this country in their proper perspective and fulsome praise
voiced for the vigour and vitality of its democracy and, importantly, for what
has been repeatedly described here as "the dynamic leadership" of Mr
Rajiv Gandhi. Lavish bouquets were offered not only in Bonn, the Capital of the
Federal Republic, but also in Hamburg, Munich and Stuttgart, Capital of the
prosperous Baden-Wurtemberg, one of the country's federating states.
Much of the credit for this
must go to the West German Chancellor, Mr Helmut Kohl, who is now getting ready
for the Federal Republic's next four-yearly general election to it: Parliament,
the Bundestag, on January 25. Initially, he visited India in 1983, within a few
months of his election as Chancellor. He was in New Delhi again in April this
year. Bonn has also taken other significant steps subsequently reflecting the
country's new mood, notwithstanding the fact that Mr Kohl as the leader of West
Germany's Christian Democratic Union heads a conservative coalition with the
Free Democrats. At least three of Mr Kohl's senior Cabinet colleagues have
visited New Delhi during the past two years. They are the country's Finance
Minister, Mr Stoltenberg, the Minister of Economy, Mr Bangemann, who deals with
both Commerce and Industry and the Minister of Economic Cooperation, Dr Jurger
Warnke. In addition, the energetic and popular Prime Minister of Baden-Wurtemberg,
Mr Spath, visited New Delhi earlier this year in a further bid to strengthen
mutual ties. (It is not unusual for the heads of government in the Federal
Republic's various states to travel to foreign lands and initiate bilateral
steps.)
Positive proof of the new
mood came from Dr Warnke, whom I had met in New Delhi at a dinner hosted by the
Union Finance Minister, Mr V.P. Singh, in his honour. In an hour-long talk in
Bonn, Dr Warnke told me candidly: "We are today the largest aid donor to India.
Chancellor Kohl raised West Germany's annual assistance to India by ten per
cent during his visit to DM 399 million. We shall continue our assistance at
this higher level." He acknowledged that the trade imbalance between India
and West Germany was very wide - some DM 2 billion. But he hastened to add:
"We are ready to offer all reasonable help to India for stepping up its
exports to West Germany. We have already sent someone to India in this
connection. We might even subsidise Indian expositions in West Germany. India could
then follow up... energetically. India put up a big show at Hanover two years
ago. It made a bio impact and generated a lot of goodwill. But it was not
followed up effectively. We are ready for any good ideas."
Dr Warnke made three other
points. First, circumstances had forced West Germany to tie up some of its aid
to India and go bilateral. Bonn recognised India's desire to get the best for
itself through international bidding. "If we lose, we shall not finance
the project. However, the amount offered for the project will be held in
reserve for India for another project". Second, Bonn had noted the wishes
of India about IDA's eighth replenishment and supported its view that this
ought to be $12 billion. "We are prepared to make a contribution of $1.3
billion towards it -- much more than what the others are doing in terms of
their GNP. We hope we can persuade Japan to do better too -- and push the
eighth replenishment to $12 billion." Third, India should try to promote
greater German tourism. He said: "We feel India is mainly concentrating on
higher class of tourists and five star hotels. We feel India has an incredible
amount of cheap labour to set up a chain of modern three star hotels. The
potential is there. India should exploit it. We will be glad to help."
Top officials in Bonn today
regard India as "the greatest democracy" and, therefore, "a very
important partner not only in the present but also in the future."
"Look around Asia", remarked one senior official, "and you cannot
but help admire India. You people have performed an extraordinary feat of
feeding your 850 million people. Which Asian country gives its citizens and its
Press as much freedom?" The "new direction" given to the
economic policies by Mr Rajiv Gandhi has created new interest in India. Nevertheless,
a lot more still remains to be done. Said he: "Our businessmen still
encounter some problems. Administrative procedures for investment are lengthy
and complicated. Again, Indians invariably think only in terms of industrial
giants such as Siemens, Bosch and Mercedes-Benz when they think of new
collaborations. They overlook the fact that West Germany's real strength lies
in medium range and highly specialised industries. Many of these enterprises
are family concerns -- a father and two or three sons. In some cases, these
concerns are willing to send one of the family members. But India hesitates to
give visas for two to three years."
There are other problems
too. West German collaborators want the right to run joint ventures and to
influence their management. However, they are not allowed to do so. India, they
feel, needs to have a "flexible approach". Again, India is viewed as
being disinclined to allow foreign experts to come in and to give them their
due. Said one authoritative source: "We here import not only foreign
technologies, but also get experts. Other developing countries show greater
pragmatism than India. Take China. It ran into a major problem with its steel
plant at Wuhan and readily got itself an expert from West Germany. The expert got
the plant running again, to the joy of the Chinese. In fact, they were so happy
with the expert that they gave him honorary citizenship of Wuhan!" India's
decision to fix a maximum of 5 per cent as license fee for the transfer of
technology is also viewed as "unhelpful". Consequently many Germans
hesitated to go. Bonn, therefore, feels that India needs a flexible policy here
also. Ultimately collaboration decisions are made by the German investors, not
by the Government.
Political relations between
the two countries have also undergone a qualitative change and are looking up.
Time was when Bonn's stand in regard to the Sikh extremists and the Khalistanis
caused not a little anger and annoyance in New Delhi, as reflected in the
Talwinder Singh affair. Both sides now seem to understand each other's
positions and difficulties better. West Germany's Basic Law (or Constitution)
entitles any one to get political asylum by doing no more than whispering the
word "asylum". This law, it needs to be remembered, was made against
the backdrop of all that tragically happened under Hitler and the subsequent
outcry against political persecutions. However, New Delhi`s problems and
sensibilities vis a vis the Sikh extremists are now appreciated better in Bonn
which has reassured India of "every cooperation within the framework of
the West German system". A top source explained: "I am afraid we
cannot go beyond legal possibilities and arrest people because they hold
different views. But our Courts have now firmly held that India is a free
democracy with an independent judiciary and there is, therefore, no question of
giving Indians any political asylum, as in the case of some other countries. Hundreds
of Indians have applied for political asylum in the past and continue to do so.
But none has been given asylum."
What of the future?
Normally, one would answer: "Let us wait for the next West German poll on
January 25". But in the present situation Chancellor Kohl appears
confidently poised to win another four-year term for his coalition government
with the Christian Socialist Union of Bavaria and the Free Democrats. Happily
for Mr Kohl the West German economy is in fine fettle and booming. Prices have
been incredibly stable, leaving everyone happy and contented. Inflation rate
has been almost zero per cent. Unemployment, no doubt, poses a problem as in
most European countries. West Germany has some two million jobless. However,
the number is much less than the figure of three million anticipated by the
previous Socialist-PDF coalition. Security continues to be a matter of major
concern. But here, too, the majority in the country seems satisfied with
Chancellor Kohl, whose support for President Reagan and his policies is seen as
having made the Super-Power summits possible -- and purposeful. The Greens have
done well in the recent Bavarian poll. But Chernobyl has made no decisive
impact, even though the latest radiation levels of vegetables and meats is
today an item of popular every day conversation.
The future of Indo-West
Garman relations clearly holds out promise. However, much will inevitably depend
upon the ability of the two sides to take full advantage of the present cordial
atmosphere to strengthen mutual ties. There is need for greater appreciation on
both sides of the depth of mutual relations and opportunities. At the same
time, Bonn and New Delhi must avoid taking the other for granted, as has
regrettably happened in the past. West Germany has symbolically shown its
special and continuing interest in India through Frankfurt's International Book
Fair this year. India was the main focus at this fair. Some 28 Indian authors
were invited to attend it with all expenses paid. Over 90 business
representatives in Hamburg crowded in at a meeting convened by the city's
Chamber of Commerce to meet a team of Indian industrialists visiting the
Federal Republic to explore ways and means of stepping up exports and bridging
the yawning trade gap of DM 2 billion. But India will have to do a lot more for
its part (like Japan) if it wants a bigger share of the highly competitive West
German market and West German Investments abroad. Some 5000 Japanese
businessmen stationed in Dusseldorf knock every day on German doors to push
their exports. India will also have to launch imaginative policies to attract
more tourists. There is no scope for spoon feeding. All in all, India and West
Germany could not only be partners in progress but a lot more! INFA
(Copyright, India News and Feature Alliance)
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Indore ‘Water’ Deaths: STATES IGNORE WARNINGS, By Dhurjati Mukherjee, 14 Jan 2026 |
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Open
Forum
New
Delhi, 14 January 2026
Indore ‘Water’ Deaths
STATES IGNORE WARNINGS
By Dhurjati Mukherjee
The recent deaths of over 16 persons (with
unofficial estimates suggesting the number could be as high as 20), coupled
with an outbreak of diseases and the hospitalisation of hundreds in Indore—one
of the nation’s most reputedly clean cities—underscore significant concerns
regarding drinking water contamination and the response by state and municipal
authorities. A recent report from the Union government, conducted under the Jal
Jeevan Mission, revealed that 38.7% of drinking water samples from rural areas
in Madhya Pradesh were deemed non-potable, highlighting ongoing risks within
village water supply systems.
Another report by the M.P. State Pollution
Control Board had cautioned mixing of sewage with drinking water sources in
Bhagirathpura, one of the hotspots along with 58 other spots in Indore way back
in 2016-17. Sadly, such assessments are not seriously taken! There are now
reports of sewage contamination of drinking water in Gandhinagar in Gujarat and
Bengaluru which are reportedly grappling with a similar public health scare.
Additionally, a report of the Central
Ground Water Board (CGWB)has noted that
many states, specially Rajasthan, Haryana, Punjab and Andhra Pradesh, face
widespread contamination. It pointed out that arsenic contamination is a major
concern in the Ganges and Brahmaputra river basin areas and despite various
studies is largely prevalent in West Bengal, Bihar and Odisha and very little
has been done to counter such contamination in an effective manner. Uranium
consumption, though less widespread, has been sporadically detected in parts of
Rajasthan, Punjab, Haryana, Delhi, Andhra Pradesh, and Telangana.
The highest uranium concentration was observed in Punjab, where over
half of the samples exceeded the limit, followed by Haryana, Karnataka and
Uttar Pradesh. Discharge of untreated industrial waste, excessive use of
fertilizers and pesticides, improper waste disposal and sewage leakage in urban
areas and over-extraction in groundwater may be listed as key factors for
groundwater quality decline. “Significant concerns have emerged from the
analysis, particularly the high concentrations of nitrate, fluoride and
electrical conductivity in groundwater. Almost 20.7% of samples exceeded the
permissible limit for nitrate while 8.05% of samples had fluoride levels above
the limit,” said the report.
If even warnings do not matter and if a
minimum need of potable water cannot be supplied to suburbs of a big city, one
may imagine the situation in remote and backward areas of the country. It is
indeed tragic that after over 75 years of Independence, safe and potable water
cannot be supplied throughout the length and breadth of the country though we
now claim to have emerged as the fourth largest economy.
It is also a well-known fact that diarrhoea
and typhoid are rampant, specially during the rainy season. The situation has
now reached even big cities. Is all this due to lack of governance of the
municipal authorities or wanton corruption in the system that projects are not
monitored and implemented strictly?
As per as per government figures under Jal
Jeevan Mission, 81% of rural households have tap water connections under the
Jal Jeevan Mission, as of mid-2025. Though the figures may not be realistic,
the problem lies in the quality of water. It has repeatedly been stressed that
there is an urgent need to invent a low-cost spectrometer that measures TDS,
heavy metals, nitrates, phosphates and microbial indicators. Whether AI can
help in this regard is not known but it is understood that experiments to this
effect are being carried out by various research institutions. This is
necessary as clean water must be made available at around Rs 5 per 20 litres
per family as the supply system may not be dependable.
Though the upgraded Rural Piped Water Supply
Schemes (RPWSS) module to significantly enhance monitoring, transparency, and
accountability of rural drinking water services under the Mission represented a
major digital transformation in rural water governance, it is not known how
effective the system is. It’s designed to enable real-time tracking,
geo-tagging, and data-driven monitoring of water infrastructure, making the
operation and maintenance of schemes more efficient and transparent. Crucially,
the upgraded platform for water management is expected to create a GIS-based
asset registry linked via the PM Gati Shakti platform. This registry will
provide end-to-end visibility of water supply networks, connecting sources,
treatment plants, pipelines and household connections.
This initiative is aimed to empower local
bodies by providing panchayats and village water and sanitation committees with
real-time, verified data to monitor system functionality and water quality. But
it’s unknown whether these plans are effective at the panchayat levels and
whether these fund-starved bodies have the requisite expertise to run a safe
water supply system in rural areas.
It is a well-known fact that water
contamination in India has high economic costs, due to the health and
environmental impacts of it. The cost of environmental degradation due to water
contamination is estimated to be $80 billion a year, whereas the health costs
are estimated to be $6.7-8.7 billion per year. The health impacts of water
contamination can be extremely high for individual households. For example, in
Ludhiana and surrounding areas in Punjab, the per capita cost for lower income
households was found to be around Rs 3,385 whereas in Kolkata, this amount on an
average was over Rs 1,168.
Drinking water is a human right, yet water
contamination in the country critically impedes safe drinking water, especially
for the vulnerable sections. The progress of the Jal Jeevan Mission has
undoubtedly been very slow, and it remains to be seen how drinking water would
be made available to every rural household by 2030, as promised. However, safe
drinking water management in India has increased from 61% to 71% from 2001 to
2017 and may presently be over 78%.
The affected are mostly the poor and the
economically weaker sections. A study conducted from 2011-2015 and from
2016-2020, has reported that there were 263 deaths from cholera in India. Majority
of the cases came from Maharashtra, Punjab, West Bengal, Karnataka and Madhya
Pradesh. Other diseases from contaminated water include typhoid, which has a
rate of 500-700 per 10,000 people in India, diarrhea, which has an infant
mortality rate of 9% for ages 0-59 months and Hepatitis A. Annually about 37.7
million are impacted by waterborne illness, and they have caused 10,738 deaths
from 2017-2022.
Protocols for monitoring water
quality are largely absent in much of the country, raising concerns about the
effectiveness of state pollution boards and municipal bodies in providing safe
drinking water. Most citizens rely on municipal supplies and lack resources to
regularly purify their water, so ensuring free potable water should be a top
priority for any government. The big question is how soon will the ruling elite
recognise the urgency?---INFA
(Copyright,
India News & Feature Alliance)
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