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Illegal Immigrants Deported: INDIA AND TRUMPERICA!, By Prof.(Dr)D. K. Giri, 7 February 2025 Print E-mail

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)


 

Cry for Peace: STOPPING THE WARS, By Prof. (Dr.) D.K. Giri, 31 January 2025 Print E-mail

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)

 

 

Illegal Indian Immigrants: $236 b JOB PROFIT RACKET, By Shivaji Sarkar, 10- February 2025 Print E-mail

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)

 

 

Illegal Indian Immigrants: $236 b JOB PROFIT RACKET, By Shivaji Sarkar, 10- February 2025 Print E-mail

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)

 

 

I-T, Subsidies Cut, Sop for Trump: FARM, MSME, TOY TO DRIVE INDIA, By Shivaji Sarkar, 3 Feb 2025 Print E-mail

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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