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Open Forum
Illegal Immigrants Deported: INDIA AND TRUMPERICA!, By Prof.(Dr)D. K. Giri, 7 February 2025 |
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Round The World
New Delhi, 7 February 2025
Illegal
Immigrants Deported
INDIA AND
TRUMPERICA!
By Prof.(Dr)D.
K. Giri
(Prof.
NIIS Group of Institutions, Odisha)
A planeload of illegal
immigrantswas deported to India. They were brought by a military aircraft,
perhaps as a symbolic show of power. Part of the Indian media has sharply
reacted. The government is mute as it has agreed to take back the illegals. Add
to this, Donald Trump's threat to impose tariff. And the phone call last week
between Prime Minister Narendra Modi and Trump when the latter asked the Indian
Prime Minister to buy weapons from America. Again, the media called it
bullying. Do these incidents indicate a downslide in India-America relations?
A spokesperson for
the US embassy declined to share details of the flight and said: “The United
States is vigorously enforcing its border, tightening immigration laws, and
removing illegal migrants. These actions send a clear message: Illegal
migration is not worth the risk.” Apparently, Trump has increasingly turned to
the US military to help carry out his immigration agenda, including sending
additional troops to the southern border with Mexico, using military aircraft
to deport migrants, and opening military bases to house these. It is said that
the Pentagon has provided flights to deport over 5,000 immigrants held by the US
authorities at El Paso in Texas and San Diego in California and military
aircraft have flown migrants to Guatemala, Peru, and Honduras so far.
Recall, the US
deported over 1,100 illegal migrants from India between October 2023 and
September 2024. The last publicly acknowledged US flight that brought back
Indians was on October 22, when about 100 illegal migrants were repatriated to
India on a charter flight. And there has been a “steady increase” in
deportations of illegal Indian migrants from the US in recent years, the
official said during a virtual briefing last year.
Last month, External Affairs
Ministry spokesperson Randhir Jaiswal told a media that New Delhi is opposed to
illegal immigration because of its links to several forms of organised crime,
and it shall take back all Indians who have either overstayed in the US or are
there without documentation. He, however, said India will accept such migrants
only after verifying their nationality
Arguably, the above
developments are part of Donald Trump’s election promises to defend American
interests first in order ‘Make America Great Again’ (MAGA). From the Indian
point of view, I have argued against illegal immigrants. Why should New Delhi
defend those who migrate illegally by crossing the porous American-Mexican
borders riding on donkeys etc?
Second, imposing
tariffs is Trump’s trump card in his foreign policy. It is a matter of
negotiation and possible retribution by the trading countries. Third,
Trump would try to trade in armament which is the main source of foreign
exchange for America and other Western countries. Sadly, New Delhi is following
suit by deepening the arms production and expanding its defence sales.
The question to
investigate is if India and American relations are going down the hill?
Not really. Let us point to some key parameters that will demonstrate how the
relations are experiencing a ratchet growth. If they are slowing down or
reversing, it is due to India’s equivocation and its obsession with
strategic autonomy, non-alignment and multi-alignment instead of concrete and
solid security partnerships lack of which risk India’s security and
imposes heavy burden on its resources in building deterrence etc.
In fact,
India-American relations have witnessed significant developments since Donald
Trump became the President of the United States on January 21, 2025. Despite
initial concerns about potential friction, the relationship between the two
nations has remained strong, with both countries continuing to engage in
dialogue and cooperation on various fronts.
One of the key areas
of focus for India-American relations has been trade and economic ties. Trump’s
administration has been pushing for greater trade liberalization and reduction
of trade deficits. India, on the other hand, has been seeking greater market
access for its goods and services. Despite these differences, both countries
have been engaged in negotiations to strengthen their trade relationship. The
tariff threat will gradually disappear as Trump reviews the global security
scenario and its implications for American trade and economy.
Defence pacts has
been another significant area of collaboration between India and the US. The
two countries have been engaged in discussions to enhance their defence
partnership, including the sale of advanced military equipment to India.
Trump's administration has also been supportive of India's membership in the
Nuclear Suppliers Group (NSG). His nudge to Modi to buy from USA fits into the
evolving framework of partnership in this area.
The India-US
strategic partnership has been a key aspect of their relationship. Both countries
have been engaged in discussions to strengthen their partnership in areas such
as counter-terrorism, cybersecurity, and maritime security. Trump’s
administration has also been supportive of India's role in the Indo-Pacific
region. The Quad will undergo radical transformation which New Delhi should be
ready for unless it wishes to be left out.
Despite the positive
developments in India-American relations, there are challenges that need
to be addressed. One of the key challenges has been the issue of trade
deficits, with the US seeking greater market access for its goods and services.
Another challenge has been the issue of immigration, with the US seeking to
restrict the flow of immigrants from India.
Despite these
challenges, the India-US relationship remains strong, with both countries
committed to strengthening their partnership. The way forward for the
relationship will depend on the ability of both countries to address their
differences and find common ground on key issues. This will require sustained
dialogue and engagement between the two countries, as well as a willingness to
compromise and find mutually beneficial solutions. America should make a string
commitment to India shedding its label of unreliability and New Delhi has to
make up its mind in which side it is only.
In conclusion,
India-American relations have witnessed significant developments since Donald
Trump became the President of the United States. Despite initial concerns about
potential friction, the relationship between the two nations has remained
strong, with both countries continuing to engage in dialogue and cooperation on
various fronts. As the relationship moves forward, it will be important for
both countries to address their differences and find common ground on key issue,
and in mutual interest. ---INFA
(Copyright, India
News & Feature Alliance)
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Cry for Peace: STOPPING THE WARS, By Prof. (Dr.) D.K. Giri, 31 January 2025 |
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Round The World
New Delhi, 31 January
2025
Cry for
Peace
STOPPING
THE WARS
By Prof.
(Dr.) D.K. Giri
(Prof.
NIIS Group of Institutions, Odisha)
The world is
currently caught in the throes of violence between communities and wars between
countries. The wars in Gaza and Ukraine surprise the political community and
defy the wisdom of negotiators and peacemakers. The United Nations which was
created post-Second World War in order to prevent another global war has practically
become ineffective. It will remain so until the organs of United Nations are
seriously restructured; especially the Security Council which is incapacitated
by the veto power of one of the five permanent members. The question staring at
the world leaders and political and security experts is how to bring about a
peaceful world.
It is important to
note that there are good many peace institutes across the world which are
engaged in researching and advocating peace structures. But they have been of
no avail as the wars continue unabated, violence within many countries
continually happens. It is high time to lay out a global peace manifesto. This
is an attempt to do so on the basis of the Indian philosophy, world experience
and a new strategy.
The manifesto may consist
of three parts – a peaceful one world, a universal welfare state system and a
common security structure. This manifesto is prepared in consultation with
Prof. V. Vivekanandan, an expert on social democracy, welfare state systems and
Scandinavia. He is the lone Indian recipient of the highest honour of Hon.
Doctorate of Social Sciences from University of Helsinki and the Sword of
Truth.
One World is a
concept derived from thousands of years of Indian philosophy like the Advaita
(Oneness) and Vasudhaiva Kutumbakam (world is a family) enshrined in the
Vedas and Upnishads. These concepts proclaim the individuality of the humanity and
the inhabitants of the earth as a grand family. These priceless gems of ideas were
hidden in the scriptures until Shri Shankracharya revealed them to the world of
knowledge in the 8th Century A.D. In modern times, Swami Vivekananda
spread this to the wider world. He surprised the world in his address in
Chicago in 1893 to the World Parliament of Religions when he addressed the
gathering as brothers and sisters.
But, sadly, today,
the world is divided into nation-states who are daggers drawn at each other in
the name of national security and in pursuance of negative doctrines like
deterrence. Many countries are wasting plenty of their own resources and those
of the world which could have been used for the progress and prosperity of poor
people across the world. Ironically, on the one hand, the world is shrinking
under the impact of communication technology and inter-dependence between
countries, on the other, the countries and the world as a whole are getting
fragmented.
In order to repair
this fracture, cooperation among the countries should replace the ongoing
confrontation. That will happen if people beyond the borders behave in the
spirit of solidarity in order to create one world. This spirit has to be backed
by a universal welfare system. Arguably, of all social, political and economic
systems, experienced in the world so far, the welfare state system is by far
the best one. It anchors a humanising peace structure within and beyond the
country and operates on the basis of equality without discrimination. It also
makes the state, the government and other stakeholders in a country as the
authentic guardian of all citizens.
The welfare state
system is essentially a social democratic construct which has the potential to
create a new geo-political culture and a new civilisation in the world. Scandinavian
countries like Sweden, Denmark, Norway and Finland have institutionalised the
welfare state system during the last nine decades with impressive results. Note
that Finland is rated as the happiest country in the world. B. Vivekanandan and
the author of this piece had the opportunity to go and stay in these countries
to experience their welfare state systems and their impact on the psyche of
their peoples and societies and on international relations.
This system is
basically based on well-off citizens paying taxes for the welfare of all,
especially those who cannot afford amenities like everyone else. The psyche in
those countries is such that people voluntarily come forward to pay taxes
without evading them. One of my fairly rich friends in Uppsala told me, “We
like to pay our taxes as it takes care of our schools, roads, hospitals and
other public facilities meant for everyone”.
In Scandinavia,
welfare system has functioned as an incentive to good behaviour and to
promotion of peace among the people. So, cumulatively, the welfare state system
functions as a peace structure at the national level which reflects in their
foreign policies at the global level. The welfare system engenders a new ethos,
conducive to building a peaceful, cooperative and a solidarity-based
relationship among peoples, cultures and continents. This system humanises
societies and promotes pacifist tendencies in peoples’ interactions. Therefore,
welfare system is an imperative for establishing peace in the world.
The third component
of this manifesto could be the common security system which would not only
radically reduce the defence expenditure of all countries in the world but also
would enable countries to establish a more transparent peaceful and cooperative
international relationship. Deterrence which is currently the preferred
security strategy by many countries gives a false sense of security and prompts
arms race between rivals.
In consequence, many countries waste their valuable resources in defence
purchases instead of tackling poverty and backwardness in their countries. The
defence expenditure of the world is estimated to be 2 trillion dollars per
year. It is important to underline that the merchants of 75% of these arms are
just five countries – USA, Russia, Germany, France and China.
The pathway to common
security consists of a few phases. First, curb the arms race by negotiating
reduction of arms – nuclear and conventional. Second, the countries should
focus on their defensive structures, not increase their offensive capabilities.
So common security is not a military doctrine, but a political one since the
security of all countries is ensured collectively by positive inter-dependence
and international solidarity. Third, common security would make a major
resource input for the economic and social development across the world and
unfold new forms of international cooperation based on peace, freedom, equality
and solidarity.
The main reason for
the failure of League of Nations and the United Nations lies in the fact that
they are largely talking shops of international peace. They failed to deter the
countries from building of respective war machines in order to fulfil their
unfair and illegitimate ambitions to conquer and expand. The current wars are
dark examples of such expansionist tendencies. Remember that under the nose of
the League of Nations, Adolf Hitler pursued his policy of aggression. In the
present epoch, under the very nose of United Nations, China is pursuing an
expansionist policy by use of force, which, unless effectively checked, has the
potential to ignite a Third World War.
Finally, the peace
manifesto should reconcile the objectives of multilateral organisations like
United Nations and those of the nation states. The way to do so is to establish
complementary peace structures at national and international level with a unity
of purpose. ---INFA
(Copyright, India
News & Feature Alliance)
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Illegal Indian Immigrants: $236 b JOB PROFIT RACKET, By Shivaji Sarkar, 10- February 2025 |
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Economic
Highlights
New Delhi,
10 February 2025
Illegal
Indian Immigrants
$236 b JOB
PROFIT RACKET
By Shivaji
Sarkar
The
multi-trillion-dollar illegal profit generating world immigration rackets
thrive on freely available private telecom company sims, fake bank accounts,
anonymity, negligent or corrupt local policing, darknet networking and greed of
the affluent.
This is
the finding of the International Labour Organisation’s (ILO) March 2024 report.
It says illegal profits from forced labour has risen to by $236 billion since
2014, implying exponential growth in labour exploitation and weak global
surveillance. The ILO report suggests that forced labour is a several
trillion-dollar-racket.
The most
dehumanised deportation of Indians on February 5has found the Rajya Sabha in
turmoil. The External Affairs Minister S Jaishankar’s reply justifying
handcuffing-shackling Indian migrants and dehumanised treatment of dumping them
on the floor of a military aircraft has shocked the nation. It was expected
that the EAM would condemn the US behaviour like the tiny nation of Columbia
did.
Columbian
President Gustavo Petro not only disallowed landing of the military aircraft
but also severely condemned the US for treating migrants, who contributed
immensely to the US economy like criminals. He says that he wants a dignified
travel of his citizens in civilian aircraft. Brazil called handcuffing a “flagrant
disregard” for their basic rights.
Still more
shock awaited as the minister reveals that the US has been deporting illegal
Indian immigrants since 2009 and continued through the Donald Trump’s first
term – in 2016 -1308 deportations; 2017 – 1024; 2018 – 1180; reaching a peak in
2019 when over 2042 were flown back and 2020 – during Indian bonhomie with
Trump 1889. Over 15000 were deported back to India since 2009.
Strange
that the governments never shared it with the people. The governments did
little to crackdown on illegal agents except stray actions till the most
undignified recent deportation of Indians to Amritsar in handcuffs and shackles on February 5.
One of the
earliest references to organised racket comes from 1955 Hong Kong companies
that organised travel of Chinese to the US. In the case of Indians from
Gujarat, Punjab and some other states the craze for flying to the US,
considered an El Dorado, is not a poverty phenomenon but a malaise among the
affluent. Each of such migrants spent a hefty sum of Rs 40 lakh and more,
selling their land and other assets, to go through dangerous, circuitous routes
even losing their lives.
In 2024, a
Minnesota district court found Harshkumar Ramanlal Patel alias Dirty Harry and
Steven Shand guilty of four counts of human smuggling after prosecutors in the
US indicted them for the deaths.He faces 20-year penalty.
The Royal
Canadian Mounted Police (RCMP), on 19 January 2022, found Jagdish Patel (39),
Vaishali Jagdish Patel (37), Vihangi Jagdish Patel (11) and three-year-old
Dharmik Jagdish Patel frozen to death some 12 kilometres from the US-Canada
border in the Manitoba province. They were among 11 who were made to travel in
harsh weather. The incident hit national headlines, as it portrayed the
helplessness of the family and the yearning it had for a better life.
The Indian
enforced directorate (ED) in 2022, found the firms that worked jointly with
colleges and universities in Canada and the US to send Indian people abroad on
student visas. The ED says that one firm based in Mumbai referred nearly 25,000
students to colleges outside of India, and the Nagpur firm referred another
10,000 students to foreign institutes. The Mumbai firm also forged partnerships
with 112 foreign colleges and the Nagpur one with 150. They function through
5000 agents, with nearly 1700 from Gujarat alone charging every aspirant Rs 55
to 60 lakh.
These
firms have attracted people through more than 5,000 agents from across the
country, with nearly 1,700 of them from Gujarat alone, and the travel plan
costs every aspirant between Rs 55 lakh and Rs 60 lakh.
More
recent searches by the ED in 2024 were conducted in 29 locations in Gujarat,
Delhi and Maharashtra against agents, who run job rackets. Interestingly, the
agents have to register with the External Affairs Ministry. Their details are
known but for decades they function with impunity across different governments.
Several
thousand affluents immigrated from India through racketeers selling their
assets of crores to visit El Dorado of the US or other western nations. Many
travel on students visa or travel through dangerous circuitous routes through
various countries. Many lose lives but the greed never dies and whetted by
illegal firms working across the world.
Corruption
is the biggest facilitator in smuggling of migrants and trafficking of persons,
says the UN Office of Drugs and Crime. It says such trafficking could not take
place without “the aid of corruption”. It implies that national officials
should be taken to task.The local police know how the agents operate and not
very difficult to crack them down. Some officials hint at collusion of
influential people and do not want to risk their jobs.
At
Ahmedabad’s Chamatkari Hanuman Mandir or “Visa Hanuman” in Chennai, are
supposed to grant immediate visa to the US. The passports are presented to
Hanumanji. Are temples also agents? Nobody has investigated. Techies visit
these temples the most for H1B visas.
It is a
widespread global racket with interlinks. Forged applications for visas from
Bengaluru are not new. In November 2014, based on a complaint by the U.S.
consulate in Chennai, the Central Crime Branch (CCB) had busted a fake visa
racket. Yeshwantpur-based Citizens Comfort Services Managing Director Ravi
Tejas was charged with helping clients forge documents using fake letterheads
to facilitate U.S. visas for its clients. He charged Rs. 1.5 lakh to Rs. 4.5 lakh
to create fake documents in addition to the charges in millions for
“transporting” them.
Cyber
crime cops blame the freely available “anonymous’ sims as the biggest culprit
and wonder why action against telecom companies are never initiated. Multiple sims
are issued on fake IDs. They are used by various call centres to further
illicit business.
The
governments must create awareness among the gullible to prevent such disastrous
“yatras” and severely crack down on agents to end the international
racket. To say that the US has been deporting illegal migrants in the past is
no consolation. There is need for action, concrete action. ---INFA
(Copyright,
India News & Feature Alliance)
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Illegal Indian Immigrants: $236 b JOB PROFIT RACKET, By Shivaji Sarkar, 10- February 2025 |
|
|
Economic
Highlights
New Delhi,
10 February 2025
Illegal
Indian Immigrants
$236 b JOB
PROFIT RACKET
By Shivaji
Sarkar
The
multi-trillion-dollar illegal profit generating world immigration rackets
thrive on freely available private telecom company sims, fake bank accounts,
anonymity, negligent or corrupt local policing, darknet networking and greed of
the affluent.
This is
the finding of the International Labour Organisation’s (ILO) March 2024 report.
It says illegal profits from forced labour has risen to by $236 billion since
2014, implying exponential growth in labour exploitation and weak global
surveillance. The ILO report suggests that forced labour is a several
trillion-dollar-racket.
The most
dehumanised deportation of Indians on February 5has found the Rajya Sabha in
turmoil. The External Affairs Minister S Jaishankar’s reply justifying
handcuffing-shackling Indian migrants and dehumanised treatment of dumping them
on the floor of a military aircraft has shocked the nation. It was expected
that the EAM would condemn the US behaviour like the tiny nation of Columbia
did.
Columbian
President Gustavo Petro not only disallowed landing of the military aircraft
but also severely condemned the US for treating migrants, who contributed
immensely to the US economy like criminals. He says that he wants a dignified
travel of his citizens in civilian aircraft. Brazil called handcuffing a “flagrant
disregard” for their basic rights.
Still more
shock awaited as the minister reveals that the US has been deporting illegal
Indian immigrants since 2009 and continued through the Donald Trump’s first
term – in 2016 -1308 deportations; 2017 – 1024; 2018 – 1180; reaching a peak in
2019 when over 2042 were flown back and 2020 – during Indian bonhomie with
Trump 1889. Over 15000 were deported back to India since 2009.
Strange
that the governments never shared it with the people. The governments did
little to crackdown on illegal agents except stray actions till the most
undignified recent deportation of Indians to Amritsar in handcuffs and shackles on February 5.
One of the
earliest references to organised racket comes from 1955 Hong Kong companies
that organised travel of Chinese to the US. In the case of Indians from
Gujarat, Punjab and some other states the craze for flying to the US,
considered an El Dorado, is not a poverty phenomenon but a malaise among the
affluent. Each of such migrants spent a hefty sum of Rs 40 lakh and more,
selling their land and other assets, to go through dangerous, circuitous routes
even losing their lives.
In 2024, a
Minnesota district court found Harshkumar Ramanlal Patel alias Dirty Harry and
Steven Shand guilty of four counts of human smuggling after prosecutors in the
US indicted them for the deaths.He faces 20-year penalty.
The Royal
Canadian Mounted Police (RCMP), on 19 January 2022, found Jagdish Patel (39),
Vaishali Jagdish Patel (37), Vihangi Jagdish Patel (11) and three-year-old
Dharmik Jagdish Patel frozen to death some 12 kilometres from the US-Canada
border in the Manitoba province. They were among 11 who were made to travel in
harsh weather. The incident hit national headlines, as it portrayed the
helplessness of the family and the yearning it had for a better life.
The Indian
enforced directorate (ED) in 2022, found the firms that worked jointly with
colleges and universities in Canada and the US to send Indian people abroad on
student visas. The ED says that one firm based in Mumbai referred nearly 25,000
students to colleges outside of India, and the Nagpur firm referred another
10,000 students to foreign institutes. The Mumbai firm also forged partnerships
with 112 foreign colleges and the Nagpur one with 150. They function through
5000 agents, with nearly 1700 from Gujarat alone charging every aspirant Rs 55
to 60 lakh.
These
firms have attracted people through more than 5,000 agents from across the
country, with nearly 1,700 of them from Gujarat alone, and the travel plan
costs every aspirant between Rs 55 lakh and Rs 60 lakh.
More
recent searches by the ED in 2024 were conducted in 29 locations in Gujarat,
Delhi and Maharashtra against agents, who run job rackets. Interestingly, the
agents have to register with the External Affairs Ministry. Their details are
known but for decades they function with impunity across different governments.
Several
thousand affluents immigrated from India through racketeers selling their
assets of crores to visit El Dorado of the US or other western nations. Many
travel on students visa or travel through dangerous circuitous routes through
various countries. Many lose lives but the greed never dies and whetted by
illegal firms working across the world.
Corruption
is the biggest facilitator in smuggling of migrants and trafficking of persons,
says the UN Office of Drugs and Crime. It says such trafficking could not take
place without “the aid of corruption”. It implies that national officials
should be taken to task.The local police know how the agents operate and not
very difficult to crack them down. Some officials hint at collusion of
influential people and do not want to risk their jobs.
At
Ahmedabad’s Chamatkari Hanuman Mandir or “Visa Hanuman” in Chennai, are
supposed to grant immediate visa to the US. The passports are presented to
Hanumanji. Are temples also agents? Nobody has investigated. Techies visit
these temples the most for H1B visas.
It is a
widespread global racket with interlinks. Forged applications for visas from
Bengaluru are not new. In November 2014, based on a complaint by the U.S.
consulate in Chennai, the Central Crime Branch (CCB) had busted a fake visa
racket. Yeshwantpur-based Citizens Comfort Services Managing Director Ravi
Tejas was charged with helping clients forge documents using fake letterheads
to facilitate U.S. visas for its clients. He charged Rs. 1.5 lakh to Rs. 4.5 lakh
to create fake documents in addition to the charges in millions for
“transporting” them.
Cyber
crime cops blame the freely available “anonymous’ sims as the biggest culprit
and wonder why action against telecom companies are never initiated. Multiple sims
are issued on fake IDs. They are used by various call centres to further
illicit business.
The
governments must create awareness among the gullible to prevent such disastrous
“yatras” and severely crack down on agents to end the international
racket. To say that the US has been deporting illegal migrants in the past is
no consolation. There is need for action, concrete action. ---INFA
(Copyright,
India News & Feature Alliance)
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I-T, Subsidies Cut, Sop for Trump: FARM, MSME, TOY TO DRIVE INDIA, By Shivaji Sarkar, 3 Feb 2025 |
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BUDGET
2025
New Delhi, 3 February
2025
I-T,
Subsidies Cut, Sop for Trump
FARM,
MSME, TOY TO DRIVE INDIA
By Shivaji
Sarkar
The Union Budget
2025-26 seems like a dream come true for those who envision the government acknowledging
agriculture as the backbone of the Indian economy. It brings a host of
benefits, including a revised income tax threshold that exempts a large section
of income-tax payees earning up to Rs 12 lakh from taxation, along with the
recognition of MSMEs as key drivers of economic growth.
It is an
acknowledgement that a course correction was long overdue and that the 2019
corporate tax cut, while boosting profits, did little to stimulate the economy.
The move may benefit about 7 crore of 10.4 crore taxpayers. Hopefully, this
marks the first step toward breaking away from the Manmohanomics that the NDA
government had diligently adhered to.
Finance Minister
Nirmala Sitharaman has raised hopes, hype and makes everyone pine for an El
Dorado. Despite her stress on agriculture and Dhandhanya Krishi Yojana,
subsidies have been cut to a new low. And if one’s income assessment exceeds Rs
12 lakh, he has to pay taxes over Rs 4 lakh exempted level!
The budget takes a
strategic step in addressing former U.S. President Donald Trump’s tariff war by
reducing duties on Harley-Davidson and 1600cc motorcycles to 30 per cent, a
move aimed at countering his criticism of India as the “tariff king”. India may
be hoping this gesture will soften Trumpist rhetoric, even as he escalates
tariffs against Canada, Mexico, and China—perhaps earning some taarif in
return. Adding to this, the budget paves the way for mini-nuclear power plants,
a lucrative shift timed perfectly with Prime Minister Narendra Modi’s visit to
the U.S. amid a strengthening dollar.
It's no surprise that
the budget is designed to address the political dynamics of the crucial Delhi
elections, its 17 lakh voters and the upcoming Bihar polls. The tax
restructuring appears tailored for salaried individuals and small business
owners, who form a significant demographic in Delhi, though its benefits extend
to Bihar and beyond. But will it shift the political loyalties of the
beneficiaries?
There is, however, no
change in capital gains tax (CGT). The July 2024 budget brought almost every
sale and purchase to the CGT causing consternation.
Despite Nitish Kumar
continuing as Bihar chief minister, the political colour changed quite a few
times. But Bihar could not get special economic package since 2000, the NDA-I,
when Jharkhand was split out. The windfall now is aimed at winning Bihari
hearts. The state gets a Makhana Board, National Institute of Food Technology,
Entrepreneurship and Management, greenfield airports in addition to expansion
of Patna airport, a brownfield airport at Bihta, West Kosi Canal Project in
Mithilanchal, road connectivity projects, power projects, such as setting up of
a new 2,400-MW power plant at Pirpainti, medical colleges, Patna IIT expansion
and sports infrastructure.
The Centre’s spending
on subsidies for 2025-26 is budgeted to fall to a six-year-low in absolute
terms and a seven-year-low relative to the country’s gross domestic product
(GDP). Also, much of the outgo pressure is now coming from fertilizers, as
opposed to food subsidy.
Finance Minister
Sitharaman has provided a total of Rs 426,216 crore towards all Central
subsidies for the coming financial year, the lowest since the Rs 262,304 crore
of 2019-20. In relative terms, the subsidy bill, at 1.19 per cent of GDP, would
be the lowest since the 1.18 per cent for 2018-19. The reduced subsidy spend —
from the peak of Rs 758,165 crore and 3.82 per cent of GDP in 2020-21 — are
mainly on account of lower foodgrain disbursement.
With the annual grain
offtake through the PDS and other schemes falling — from 93.7 million tonnes
(mt) in 2020-21, 105.8 mt in 2021-22 a projected 63.9 mt in 2024-25 – and the
government’s procurement as well as stocks in godowns declining, reduced
carrying cost of buffer beyond operational requirements, the food subsidy is
budgeted at just Rs 203,420 crore in the coming fiscal.
The poor may
gradually take the brunt more. The kisans hope for a higher PM Kisan Saman
Nidhi has come to a nought with bountiful of projects announced. The government
feels that the projects would boost incomes in rural areas with The National
Edible oil mission for self-sufficiency, six-year-pulses mission, comprehensive
programmes for vegetable and fruits, cotton production mission, Kisan Credit
Card limit rise to Rs 5 lakh from Rs 3 lakh, scheme for women SC-ST
enterprises, and Rs 60,000 crore food exports programme.
Textiles to toys, the
MSMEs get Rs 2250 crore booster shot with mission exports, Minister for
Commerce Piyush Goel says. Their loan guarantee is doubled to Rs 10 crore from
Rs 5 crore. The MSMEs contribute 45 per cent of exports and some of them are
over Rs 500 crore companies. Their growth would be creating jobs as well, is
the hope.
The budget is
expected to boost consumption with Rs 1 lakh crore I-T cut. The National
Manufacturing Mission with a special focus on electronics manufacturing
services is projected to generate 2.3 million jobs. The plan to have 10000
startups, realty rise, aviation, tourism, healthcare and retail global capacity
centres (GCC) may spur jobs.
It is expected that
infra investment that remains at Rs 10.18 lakh crore (against Rs 11.1 lakh
crore estimates in 2024). In 2026 too it would marginally vary. There is a
reservation - high infra spendings cause higher finance drains. The losses in
built-up unusable infra mounts.
The budget is stated
to balance borrowings as deficit is to be checked at 4.4 per cent. Borrowing is
set at Rs 11.5 lakh crore. Estimates for capital expenditure is set at Rs 11.21
lakh crore and a total of Rs 15.4 lakh crore, infra expenses. Even the US is
wary of such high infra investments. The budget is silent about Indian Railways
with its estimates frozen at 2024 level of Rs 2.55 lakh crore. Defence has seen
minor rise Rs 6.81 lakh crore against Rs 6.21 lakh crore, education rises by Rs
128,650 crore and health Rs 99,858.56 crore against from ₹90,958.63 crore in 2024-25. Healthcare
stresses on anti-cancer measures, research, healthier and more resilient India.
Still FDI and FPI
investments remain in the grey area. The FMCG sector has large hopes as Godfrey
Phiilips, Britannia Industries, Hindustan Unilever and ITC gained nine to four
per cent at the stocks though frontline indices had little gain. Overall, the
budget has a new direction for boosting manufacturing though an integrated
approach remains missing. ---INFA
(Copyright, India
News & Feature Alliance)
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More...
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Budget Eyes Middle Class: WHAT ABOUT RURAL INDIA?, By Dhurjati Mukherjee, 5 February 2025
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City Development: HOLISTIC VIEW CRITICAL, By Dhurjati Mukherjee, 28 January 2025
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