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GST in India: Impact and Challenges

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What real relief had GST brought to the masses? While the states continued to impose their taxes

Amit Pandey

Once upon a time, in the bustling land of India, the government’s chest of treasures seemed boundless, overflowing with the wealth of taxes collected from its industrious citizens. But deep within the intricate web of financial policies, one particular taxation regime stood tall—GST (Goods and Services Tax). Lauded by the authorities as the backbone of the country’s revenue, GST was introduced with promises of a streamlined and unified tax system. Yet, for the common folk, understanding its complexities was akin to deciphering an ancient, cryptic script.

The origins of GST could be traced back to an era when the Congress proposed a regime that wouldn’t exceed 18%, fostering hope for simplicity and fairness. However, as the baton was passed to the BJP, the clause was slyly omitted, leading to contentions and debates. Critics argued that the GST, touted as the panacea for economic ills, had instead evolved into a labyrinth of complications, its intricacies as enduring as the cycle of day and night.

As the dust settled, the public found themselves grappling with more questions than answers. What real relief had GST brought to the masses? While the states continued to impose their taxes, like Bengal’s sales tax, GST excluded excise and petroleum products, leading to further confusion. The nation’s citizens felt the weight of a system that seemed to burden rather than ease.

Amidst the clamor, voices rose, questioning the very essence of GST. How had it simplified the lives of common people? Did it alleviate the pressures of daily expenses or merely add to the already substantial tax burden? With essential items like petroleum products remaining outside its purview, did GST truly offer the comprehensive solution it promised?

State governments, too, wielded their power to levy taxes—property tax, stamp duty, electricity duty, and more—adding to the intricate tapestry of fiscal responsibilities. The question echoed louder: why, despite paying more than 60% of their income in taxes, did citizens still witness a lack of significant investment in education, research, and youth employment?

As the narrative unfolded, the GST’s shortcomings became evident. The absence of relief measures and the persistence of state-specific taxes painted a picture of disarray. The common man, burdened by rising GST rates that could reach a staggering 28%, found themselves questioning the very foundations of governance. How had a tool meant to unite and simplify become a device that wrenched the public’s hard-earned money?

In the heart of the story lay the unanswered questions: Why was the original proposal’s simplicity discarded? Why did the government’s discretionary power to alter GST rates persist? And most importantly, how had a system designed to benefit the populace transformed into a convoluted ordeal?

As the tale of GST continued to unfold, the voices of the people remained steadfast, demanding clarity, fairness, and a taxation regime that genuinely served the needs of the many rather than the few. The story of GST, with its complexities and controversies, remained a chapter yet to be fully understood and resolved.

Revenue Trends and Growth

Since its inception, GST has become a pivotal component of the Indian government’s revenue system. Empirical studies have indicated that GST revenue has a positive impact on the country’s economic growth in both the short and long term. For instance, research utilizing data from August 2017 to March 2024 demonstrated that GST revenue positively influences India’s economic growth. However, despite its revenue-generating potential, there remain concerns about the structure of taxation and its impact on economic inequality.

GST collections have witnessed significant fluctuations over the years, often reflecting broader economic trends such as demonetization, the COVID-19 pandemic, and inflationary pressures. According to government data, the GST revenue in 2023-24 consistently exceeded Rs. 1.5 lakh crore per month, signaling strong compliance and economic recovery. However, revenue buoyancy has been uneven, with concerns raised about tax evasion and revenue leakages.

The revenue distribution between the Centre and states has also been a contentious issue. The GST compensation to states, initially assured for five years, ended in June 2022, leading to financial stress in several states. States such as Punjab and West Bengal have demanded an extension of compensation, arguing that GST has not entirely replaced their lost revenue streams.

One of the major concerns associated with GST has been its inflationary impact. While GST aimed to reduce the cascading effect of taxes, multiple slabs have led to price fluctuations in various sectors. Essential goods, such as milk and food grains, have been exempted, but other necessary items such as bicycles and sanitary napkins have seen higher tax rates.

Economists argue that GST has disproportionately affected lower-income households, as indirect taxes constitute a larger share of their consumption expenditure. On the other hand, businesses have experienced reduced logistical costs due to the removal of interstate tax barriers, enhancing efficiency in the supply chain.

The implementation of GST has been a subject of intense political debate. The Indian National Congress (INC), which initially proposed the GST framework, later criticized its execution under the Bharatiya Janata Party (BJP)-led government. The INC advocated for a simplified GST with a standard rate capped at 18% and the establishment of an independent dispute resolution mechanism. Senior Congress leader P. Chidambaram emphasized the need for a single-rate GST, arguing that multiple slabs defeat the purpose of simplification.

 Opposition and Critique

Several state governments, particularly those ruled by non-BJP parties, have raised concerns about the federal structure of GST. Kerala, Tamil Nadu, and West Bengal have repeatedly voiced concerns about revenue loss and central control over taxation policies. These states argue that the GST Council, dominated by the Centre, often does not accommodate regional economic disparities.

Former Prime Minister Dr. Manmohan Singh also expressed concerns about the GST’s design and implementation. He described the GST in its current form as a “fraud,” highlighting that it deviated from the original vision of a simple and unified tax structure. Dr. Singh warned that the hasty implementation could disrupt the informal economy and adversely affect small businesses.

Furthermore, the BJP government has faced criticism for making frequent modifications to GST rates. Over 400 changes have been made since its launch, leading to policy uncertainty and confusion among businesses. Critics argue that such frequent revisions indicate poor initial planning and a lack of long-term vision.

From the perspective of the common citizen, GST’s impact has been multifaceted. While the elimination of multiple taxes has simplified the tax structure, the imposition of GST on essential commodities has raised concerns about increased living costs.

Burden on Small and Medium Enterprises (SMEs)

The compliance burden on small and medium-sized enterprises (SMEs) has been significant. The requirement for regular filings and the complexity of the tax slabs have posed challenges for businesses with limited resources, leading to calls for further simplification and support mechanisms.

Many small traders have struggled to adapt to the digital filing system required for GST. The introduction of the e-invoicing system, aimed at reducing tax evasion, has further complicated compliance for businesses with low digital literacy. Additionally, the late refund of input tax credit (ITC) has led to working capital issues, forcing many small businesses into financial distress.

Employment and Informal Sector Impact

The introduction of GST significantly disrupted India’s vast informal economy. Before GST, many small traders operated outside the formal tax net. However, the requirement to register under GST has forced businesses to either comply or shut down. This has led to job losses, particularly in sectors such as textiles, handicrafts, and small-scale manufacturing.

The textile industry, which employs millions of workers, has faced challenges due to the imposition of GST on raw materials like synthetic fiber. Similarly, the handloom and handicraft sectors have struggled to cope with taxation that did not previously exist, leading to fears about cultural and artisanal decline.

Despite the government’s efforts to increase revenue through GST and other taxes, concerns have been raised about the allocation of these funds. Critics argue that despite substantial tax collections, there has been inadequate investment in critical sectors such as research, education, and youth employment.

Growing Fiscal Deficit and Debt Burden

The GST system has failed to fully replace previous revenue streams, leading the government to rely on increased borrowing. India’s fiscal deficit remains a key concern, with public debt reaching Rs. 196 lakh crore. Economists argue that while GST has boosted revenue, the government’s expenditure on welfare schemes, infrastructure, and defense has escalated, exacerbating the fiscal deficit.

Some experts believe that GST collections should be linked directly to developmental projects, ensuring that funds are utilized efficiently. However, the lack of transparency in fund allocation has raised concerns about mismanagement and inefficiencies in public spending.

 Reforms and Way Forward

For GST to truly achieve its potential, certain reforms are necessary.

Single-Rate Structure and Rationalization

Economists and policymakers have long advocated for a single-rate GST structure to simplify compliance and enhance transparency. Countries such as Australia and Singapore have successfully implemented a uniform GST rate, reducing classification disputes and improving tax efficiency.

The GST Council has hinted at the possibility of merging the 12% and 18% slabs, but no concrete decision has been made. A more streamlined approach with a single rate for most goods and a higher rate for luxury items could improve compliance and ease the burden on businesses.

Enhanced Digital Infrastructure

While GST has increased digitization, further improvements in the GST Network (GSTN) are needed. The frequent technical glitches on the GST portal have frustrated taxpayers, leading to delays in filing returns. Upgrading the IT infrastructure and providing better digital literacy support to small businesses can enhance compliance rates.

Addressing State Concerns

A more equitable revenue-sharing model is needed to address concerns raised by states. The reintroduction of compensation or alternative revenue mechanisms should be explored to ensure that states do not bear disproportionate financial burdens.

The implementation of GST in India represents a landmark reform with the potential to unify the national market and enhance economic efficiency. However, its journey has been accompanied by challenges related to complexity, compliance, and socio-economic impacts. Continuous engagement with stakeholders, periodic reviews of tax rates, and a commitment to simplification are essential to ensure that GST realizes its foundational objectives and equitably benefits all segments of society.

( Author is Managing editor of The Emerging World)

Why AAP-ruled Delhi gives all Lok Sabha seats to BJP?

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Manoj Kumar Pathak

In the run-up to the 2024 Lok Sabha elections, let us ponder over the electoral mood of the national capital’s voters. The Emerging World’s analysis of all the recently held pre-poll surveys suggests all seven Delhi seats would go to the BJP if elections were held today. Now the question arises, Why do Delhi seats go to the BJP despite the AAP winning the Assembly polls decisively? Why does a state that has overwhelmingly voted for the Aam Aadmi Party (AAP) in two consecutive Assembly polls give all the Lok Sabha seats to the BJP? Experts say there are several factors at play.


The AAP made its debut in the 2013 Delhi election and managed to get 28 of the 70 Assembly seats. It formed a government in alliance with the Congress that didn’t last a full five-year term. In the elections of 2015 and 2020, the AAP won 67 and 62 seats, respectively.
The BJP, however, won all the seven Lok Sabha seats of Delhi in both 2014 and 2019. Despite a would-be Congress-AAP alliance, the pre-poll surveys show the BJP getting 57% of the vote share in Delhi. The AAP-Congress coalition if materializes, which would fare well in Punjab, fails to dent the BJP’s seats in Delhi.


“Punjab’s demographic composition is different from Delhi’s. It has always had an uneasy relationship with the Centre, even when the Congress party was in power in the 1970s and 80s,” Piyush Gautam, a poll analyst said. “This alliance [between the Congress and the AAP] in both Delhi and Punjab is not easy. Because in Punjab, AAP feels that they can gain these seats even without the Congress. So, you have seen the CM of Punjab making statements that we don’t need to have an alliance. And in Delhi, even if they come together, they will not be able to make any dent,” adds Gautam.


Why do two states give such different results with the same combination? One of the factors is different voting patterns in Assembly and parliamentary elections. “It’s a split vote, and it’s happening across India, across all the states. Every state, if you look into the vote share of the last assembly and the last Lok Sabha, you will see somewhere between 10% to 25% jump in favor of the BJP in Lok Sabha elections,” said Satyendra Singh, a political commentator.


There is an additional factor at work in Delhi that swings votes in favor of AAP in Assembly polls but doesn’t work for it in the Lok Sabha polls, according to political analyst Ramendra Dwivedi. “Delhi’s story is very simple. It is due to the Muslim vote that swings. In Assembly elections, Muslim votes tend to favor Arvind Kejriwal’s party, and in the Lok Sabha elections, they favor the Congress. So that is why there is a kind of mismatch,” Dwivedi said. Going by that logic, the seats of Chandni Chowk or East Delhi, where the minorities are in big numbers, could be foul areas of the Congress and the AAP. They can come together and put up a tough fight for the BJP.


However, what needs to be kept in mind is that the minority factor comes into play in Assembly elections because Assembly constituencies are smaller, and the numbers are enough to decide the fate of the seats. That isn’t the case in the Lok Sabha polls. Experts say that after the delimitation process of 2008, the entire composition of the Delhi seats has changed. In Delhi, there is not even a single Lok Sabha seat now that can be decided by voters of the minority community, according to the experts on The Emerging World.


Apart from that, the Modi factor plays an important role in the Lok Sabha election in Delhi like it does in most other places. That helps in the consolidation of votes for the BJP. The other reason could be that the people of Delhi still see the AAP as a regional party despite its efforts to grow in several states. So, multiple factors make Delhi seats go to the Aam Aadmi Party in Assembly polls but to the BJP in the Lok Sabha polls. That would even be the case if the 2024 Lok Sabha polls were held today or later on.


Another renowned political analyst Jeev Kant Jha said,’ Whether it will be a triangular fight or a direct contest with a single I.N.D.I.A candidate in each Lok Sabha seat in Delhi, the BJP is confident of maintaining its dominance over all seven Lok Sabha constituencies in the national capital for the third consecutive time.’ The party’s eagerness to maintain a 7-0 track record stems from its recent Assembly election victories and the discordant signals emerging from the rival I.N.D.I.A bloc on seat-sharing.

The AAP and the Congress are still determining the seats on which they will fight against the BJP, meaning that only one opposition candidate will face each BJP candidate. However, the buzz is that the AAP wants the Congress to fight on only two seats, while the Congress is keen on contesting at least three. If the seat-sharing talks fail, the two may be forced to go it alone on all seven seats.
BJP national vice president and Delhi unit in charge Baijayant Panda said that the BJP’s win in the recent assembly elections in Hindi heartland states has created a positive atmosphere for the party, and there should be no doubts about the results of the Lok Sabha elections.


“We are winning all seven seats in Delhi, but we will have to make efforts to increase the victory margin, for which we will have to contact the beneficiaries of the Central government schemes and talk to them,” said Panda. A source inside the I.N.D.I.A bloc said, “The contrast seen between the alliances in the recent elections raises many questions about whether it will continue till the Lok Sabha election or not.”
Psephologist Sanjay Dubey said that there is constant friction within the opposition alliance and the people who make decision for the I.N.D.I.A bloc has to take control of the alliance. Dubey added, “If they are agreeing upon it, then there should be further concrete steps. If there is a cricket team and there is no captain, who will give direction to the team?”

Stunning Jewelry Trends That Are Poised to Take Over in 2022

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Red is Red hot now-a-days

What’s the  the chicest way to add the cherry on top of any look? Jewelry, of course! Bits, bobbles, bracelets, and earrings—there’s a lot to love about these swoon-worthy accessories. And lucky for you, we’ve been checking out all the stunning jewelry trends are going to be taking over 2022. Safe to say, you’re going to love what’s coming (trust).

From bright colors and bold statement earrings to cute and and seriously fun charms, there’s something for every jewel lover out there. 

To give you a peek, we’ve rounded up the best jewelry trends you’ll be seeing everywhere next year. 

Congress stages protest over the Pegasus row in front of Raj Bhawan

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Ranchi: Demanding a Supreme Court-monitored judicial inquiry in the espionage case regarding hacking of phones of opposition leaders, senior military officials, election commissioners, journalists and some other dignitaries through the Israeli spyware Pegasus leaders and workers of Jharkhand Pradesh Congress Committee demonstrated in front of the Raj Bhawan on Thursday demanding the resignation of Home Minister Amit Shah.

Under the leadership of State Congress President Dr Rameshwar Oraon a small protest was held in front of the Raj Bhawan. The party had postponed the march and procession in the wake of the instructions received regarding the corona guidelines.

Addressing the event state Congress President Dr Rameshwar Oraon said that monitoring of opponents and hacking of phones by the central government through the Israeli spyware Pegasus is completely unconstitutional and illegal, it also violates the powers conferred under Article 21. Central government had encroached into ones private space, therefore the Supreme Court should take suo moto cognizance of this matter and order a judicial inquiry, he said, adding that there is talk of investigation of such immoral acts in other countries as well.

He said that this espionage work is possible only at the behest of the Prime Minister. The BJP-led central government, finding itself weak is engaged in spying on the opponents he said, adding that it was through this that work was done to break the governments in Karnataka and Madhya Pradesh whereas the Israeli government clearly says that it can be used only and only by the government to curb terrorist and criminal activities.

(EW correspondent)

BSPS Submits 10-Point Demand Letter to Prime Minister, Including Journalist Protection Law

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Sanjay Pandey

New Delhi: The National President of Bharti Shramjeevi Patrakar Sangh (BSPS), Ashok Pandey, has called upon Prime Minister Narendra Modi to fulfill his pre-election promise of implementing a Journalist Protection Law at the earliest. Addressing a one-day protest at Jantar Mantar in New Delhi, Ashok Pandey urged the government to take immediate action on journalists’ safety and welfare.

Journalists from across the country participated in the demonstration, highlighting a 10-point demand charter that included: Implementation of a Journalist Protection Law: Introduction of a health insurance scheme for journalists, Reinstatement of railway concessions for media professionals, Exemption from toll charges for accredited journalists, Uniform implementation of a journalist housing scheme across India, Fast-track investigation and special court trials for journalist murder cases, Formation of a committee to investigate false cases against journalists, Development of a new policy for YouTubers and digital media platforms, GST exemption for small and medium newspapers, Mandatory representation of BSPS in DAVP and IPRD committees. The protest was addressed by several national and state leaders of BSPS, including National General Secretary Shah Nawaz Hasan, Vice President Raghavendra Mishra (Andhra Pradesh), Organizing Secretary Giridhar Sharma (Uttarakhand), National Secretary Dr. Naveen Anand Joshi (Madhya Pradesh), National Secretary Chandan Mishra (Jharkhand), National Treasurer S.S. Nasreen (West Bengal), and National Spokesperson Indu Bansal (Haryana).

Several state representatives and journalists actively participated in the event, including leaders from Madhya Pradesh, Chhattisgarh, Uttar Pradesh, West Bengal, Tamil Nadu, Rajasthan, Bihar, and Jharkhand. During the protest, BSPS submitted a signed memorandum addressed to the Prime Minister, urging urgent steps to ensure journalists’ safety, rights, and professional growth.A  protest organized by journalists from various states saw a robust participation of notable figures in the media fraternity. Among those present were Sanjay Pandey, Joint National Secretary of BSPS, Dr. Arun Saxena, State President of Madhya Pradesh unit, Mahendra Sharma, State General Secretary, Gangesh Dwivedi from Chhattisgarh state president, and from Uttar Pradesh unit, Shibu Nigam, Munna Tripathi, Jayad Wajpayee. Shailendra Panda, State President of West Bengal, Bani Vrat Karar, Subhashish Pal, Manoj Shah, Swapna Karar, P. Ravi Chandran from Tamil Nadu, Munnu Swami, Gandhi Ganeshan, and from Rajasthan unit, Rajendra Sharma, RK Joshi, Saris Bajpai from Kanpur Press Club, Sanjeev Jaiswal from Bihar, Nandan Jha, Rajiv Mishra, Javed Islam, Arvind Thakur, Jagdish Saluja from Jharkhand. The demonstration also received support from leaders of various political parties, including NCP’s National General Secretary Sanjay Prajapati, BSP National Vice President Kavita Verma, representatives from AAP and Lok Samaj Party, Independent MP Pappu Yadav, BKU leader Rajesh Agarwal, BJP MP Manish Jaiswal, Congress MP Sukhdev Bhagat, TMC MP Arup Chakraborty, and National Conference MP from Kashmir Agha Syed Ruhullah Mehdi. This protest marks a significant step in strengthening journalists’ unity and advocating for their rights, with growing support from political circles for the demands of media professionals.

Betraying Pensioners: Government’s Cruel Pay Cut

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Amit Pandey

The recent amendments to the Central Civil Services (Pension) Rules, which exclude existing pensioners from the benefits of the new Pay Commission while making them applicable only to future retirees, have sparked widespread outrage and uncertainty. This decision, which essentially freezes the pension of those who retired before the latest recommendations, has left millions of elderly pensioners grappling with economic distress. With inflation soaring and the cost of living becoming increasingly unbearable, this legislative move raises troubling questions about the government’s commitment to social security and its responsibilities towards those who have served the nation for decades.

A retired government servant who once worked under the pay grade of ₹4,800 will now have to survive on the same pension for life, despite multiple Pay Commission revisions benefiting current employees. The disparity is glaring, and the rationale behind such discrimination remains unclear. Why has the government chosen to isolate its retired workforce from the benefits of economic progress? And more alarmingly, why does this policy decision bear a resemblance to Pakistan’s recent pension reforms, where retirees have been forced to accept only half their entitled pension due to economic instability? Is India, a nation that boasts of being a Vishwaguru and an emerging global power, now looking towards failing economies for policy inspiration?

The impact of this decision extends far beyond numbers—it is an attack on the dignity of those who once formed the backbone of governance. Pension is not merely a post-retirement benefit; it is a form of social assistance, a recognition of years of dedicated service. As former Prime Minister Atal Bihari Vajpayee once remarked, “Pension is not charity, but a right earned through a lifetime of service.” If that fundamental principle is now being undermined, it signals a shift in the government’s priorities—from social welfare to a corporate-style efficiency model where financial constraints dictate policy, regardless of human consequences.

The government’s silence on the rationale behind this move only amplifies concerns. Are financial constraints truly so severe that the state cannot honor its commitments to the elderly? If so, why is the burden of economic adjustments being placed disproportionately on pensioners, rather than on other avenues of expenditure? The opposition, led by MPs like NK Premachandran and KC Venugopal, has rightly raised these concerns, questioning the ethical basis of depriving pensioners through what they term “backdoor legislation.”

In the epic Mahabharata, there is a tale of Bhishma Pitamah, who lay on a bed of arrows, awaiting his rightful moment of departure. A warrior who had once protected the kingdom with all his might was left abandoned when he was no longer of use. Is this the fate that awaits India’s pensioners—forgotten and sidelined once their service is no longer deemed economically viable?

As Urdu poet Bashir Badr poignantly wrote:
“Log toot jaate hain ek ghar banane mein,
Tum taras nahi khaate bastiyan jalane mein…”

(People break themselves to build a home, yet you show no mercy in burning down entire settlements…)

The essence of this verse rings true today, as those who spent their lives building the nation find their financial security crumbling. In a country that claims to uphold Ram Rajya, where governance is meant to be just and compassionate, this decision appears more reflective of a Trump Rajya—where policy is dictated by economic pragmatism at the cost of social justice.

If pensioners are left to fend for themselves amidst economic turbulence, the fundamental question remains—who truly bears the responsibility of ensuring their dignity and survival?

A Legacy of Unfulfilled Promises: The Historical Perspective

India’s pension system has long been a subject of political and economic contention. From the introduction of the One Rank One Pension (OROP) scheme for defense personnel to the continuous recommendations by successive Pay Commissions, pension reforms have often been driven more by political considerations than genuine welfare concerns.

Historically, pensioners were assured that their financial security would be adjusted to keep pace with inflation and economic fluctuations. The 6th and 7th Pay Commissions made significant enhancements to pension structures, ensuring that retirees received benefits that reflected the economic realities of their time. However, the recent amendment marks a departure from this precedent, effectively dividing pensioners into two classes: those who retired before the new implementation date and those who retire after, with the latter receiving enhanced benefits while the former are left to fend for themselves.

Opposition leaders like Kerala MP NK Premachandran have vocally criticized the move, calling it a “betrayal” of millions of senior citizens who contributed decades of service to the nation. Congress MP K C Venugopal has questioned the government’s intent, arguing that the exclusion of pre-implementation retirees amounts to “systemic financial discrimination.”

Inflation and Economic Hardships

India’s pensioners—numbering over 6.79 million as of March 2023—now face an economic crisis that threatens their survival. The government’s decision to exclude pre-existing pensioners from Pay Commission benefits has left millions struggling with stagnant pensions while inflation erodes their purchasing power. This move, coupled with rising living costs, raises serious questions about the government’s commitment to the welfare of those who have spent their lives in service to the nation.

The Consumer Price Index (CPI) inflation rate stood at 8.39% in December 2024, indicating a sharp increase in essential commodity prices. This trend disproportionately affects pensioners, whose fixed incomes remain unchanged while expenses soar. Food, healthcare, and daily necessities have become unaffordable for many retirees, forcing them into financial distress. The lack of inflation-adjusted pension increases means that pensioners are effectively losing income each year, pushing them closer to poverty.

Take, for instance, Ram Prasad Sharma, a retired government clerk receiving ₹18,000 per month. In 2020, this amount was sufficient for basic expenses. However, by 2024, due to inflation, the cost of groceries, medicines, and utilities has increased significantly. With a 30% rise in medical expenses and a 20% increase in food prices, Sharma is now forced to cut back on essential needs, despite having served the government for over three decades. His case is not isolated—millions of pensioners share his struggle.

The government’s refusal to revise pensions aligns with its broader economic strategy, but at what cost? By neglecting pensioners, the government not only abandons its duty but also creates indirect unemployment. Many retirees, unable to sustain themselves, seek low-paying jobs, increasing competition in an already saturated job market. This effectively forces pensioners to return to work, limiting opportunities for younger job seekers.

While the government justifies its decision citing fiscal responsibility, critics argue that denying pension revisions while increasing salaries for current employees is unfair. The government’s approach raises a fundamental question: Can a nation that aspires to be a global economic power justify abandoning its senior citizens?

The decision to exclude pre-existing pensioners from financial benefits contradicts the constitutional principles of Article 14 (Right to Equality) and Article 21 (Right to Life with Dignity). The Supreme Court has ruled that pensions are not a privilege but a vested right, meaning the government has a duty to ensure fair adjustments in pension schemes.

Moreover, the Bombay High Court ruled that pension is a form of ‘property’ under Article 300A, meaning the government cannot arbitrarily deprive retirees of fair pension adjustments. By refusing to align pensions with inflation, the government is betraying its constitutional oath and failing in its duty as a welfare state.

India’s pension crisis is more than a financial issue—it is a moral and constitutional failure. Pensioners, who have given their prime years to the nation, deserve economic security in their retirement. The government must revisit its policy, ensure inflation-adjusted pension benefits, and uphold the constitutional rights of retirees. Anything less is a betrayal of the very foundation of a welfare state.

A Debate on Equity and Fairness

The opposition has strongly opposed the amendments, staging a walkout in the Lok Sabha when the bill was passed. Critics argue that the government is using “backdoor legislation” to bypass a proper discussion on pension reforms. “It is unacceptable that millions of pensioners are being deprived of their rightful benefits through arbitrary rule changes. The government must clarify why it is discriminating against senior citizens,” said NK Premachandran during the Lok Sabha debate.

The government’s defense has been that Pay Commission benefits have traditionally been applied prospectively, rather than retrospectively. However, experts argue that this justification is weak given the current economic climate. With economic inequality on the rise and inflation hitting pensioners the hardest, there is an urgent need for a more inclusive pension policy that ensures financial security for all retirees, not just those retiring after a certain date.

Senior economist Usha Sunil has called the move “economically regressive,” stating, “A government that refuses to protect its retired workforce from inflationary pressures is failing in its fundamental duty. The state must recognize that pensions are not charity but a right earned through decades of service.”

A Call for Reform and Justice

The government’s amendments to pension rules have shattered the hopes of millions of retirees who dedicated their lives to public service. By creating a system where only future pensioners benefit while past retirees are left to struggle, the government has turned its back on its most loyal citizens. This betrayal strikes at the core of fairness and economic justice, leaving pensioners to battle inflation with stagnant incomes.

With inflation surpassing 8.39% and healthcare costs rising exponentially, survival has become a daily challenge for pensioners. The dream of a dignified retirement is fading, replaced by uncertainty and helplessness. Opposition leaders and pensioner associations continue to fight for justice, warning that if the bill is passed in its current form, it will set a dangerous precedent, depriving future retirees of financial security.

As Faiz Ahmed Faiz once wrote in despair:
“Hum jo tareek raahon mein maare gaye” (We who were slain in the darkness of the path)
India’s pensioners are not asking for favors; they are asking for justice. The government must uphold its constitutional duty and ensure financial dignity for all retirees, lest history remembers this as a grave injustice to those who served the nation.

 

Coal Mining in India: A Historical Perspective and Contemporary Challenges

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Sanjay Pandey

Coal mining in India has had a long and complicated history, deeply intertwined with colonial exploitation, economic development, and contemporary corruption. What began as a means to sustain the British industrial and military complex has evolved into one of the key drivers of India’s economic and industrial growth. However, beneath this progress lies a murky world of mismanagement, mafia control, and policy failures that have significantly impacted both the workforce and national revenues.

The history of coal mining in India can be traced back to 1774, during the tenure of Warren Hastings. The East India Company initiated coal mining in Raniganj, West Bengal, along the western basin of the Damodar River. This was not to fuel India’s economic growth but to power British weapon factories and industries. The first shaft coal mine was opened between 1815 and 1820 in Raniganj. By 1843, the Raniganj coal fields were transferred to the renowned Bengali businessman Prince Dwarkanath Tagore, leading to the establishment of M/s Carr Tagore & Co., later evolving into Bengal Coal Company.

It was only in the 19th century that organized coal mining commenced in India. However, colonial policies ensured that coal production remained under British control, with Indian resources benefiting the imperial economy rather than the native population.

Post-Independence Nationalization and Growth

After independence, the coal industry was largely unregulated and dominated by private players, leading to erratic production and exploitative labor practices. Recognizing the strategic importance of coal, the Indian government under Prime Minister Indira Gandhi initiated the nationalization of coal mines in two phases during the 1970s:

  1. 1972 – Nationalization of coking coal mines.
  2. January 30, 1973 – Nationalization of non-coking coal mines.

This led to the formation of Coal Mines Authority Limited (CMAL), later merged into Coal India Limited (CIL) on November 1, 1975. The registered headquarters was established at 10, Netaji Subhash Road, Kolkata.

Over the years, CIL expanded, incorporating entities such as National Coal Development Corporation (NCDC) and Bharat Coking Coal Limited (BCCL). By January 1, 1993, Coal India had seven coal-producing subsidiaries, along with a planning and design institute that operates today as the Central Mine Planning and Design Institute (CMPDI).

India’s Coal Reserves and Production

As of today, India’s coal reserves stand at a staggering 193,777 million tons, making it one of the world’s largest coal producers. The country also possesses 6,500 million tons of lignite reserves. The leading coal-producing states are:

StateEstimated Coal Reserves (Million Tons)Percentage of Total
Jharkhand64,37133.21%
Odisha46,21823.84%
Madhya Pradesh39,02220.13%
West Bengal25,12312.95%
Maharashtra6,2763.22%
Andhra Pradesh10,8375.54%
Uttar Pradesh1,2760.64%
Northeastern States8640.43%

As of today, India has 449 active coal mines, with Coal India Limited operating 50 stockyards to manage production and distribution.

Despite its vast reserves and strategic importance, India’s coal sector has been plagued by corruption and inefficiency. Coal transportation mafias, contractor favoritism, and administrative collusion have resulted in financial losses running into thousands of crores.

Key Issues Plaguing the Sector:

  1. Collusion Between Transport Mafia and Officials – Fake documentation and inflated invoices have resulted in huge financial losses to Coal India and its subsidiaries.
  2. Project Shutdowns Due to Poor Management – Several coal projects have been shut down, with management blaming workers, while underlying issues remain unaddressed.
  3. Politicization of Labor Unions – Major coal labor unions, including INTUC, AITUC, CITU, HMS, and BMS, have allegedly supported the shutdown of projects for their vested interests.
  4. Systemic Irregularities in Coal Transportation – Reports indicate that fake transport claims have been used to siphon off crores from coal companies.

Economic Blockades and Regional Politics

Jharkhand has been at the center of India’s coal economy, with its rich reserves fueling industries across the country. However, political movements like Jharkhand Mukti Morcha (JMM) and AJSU have leveraged economic blockades as a tool to pressurize the central government.

One of the most significant blockades occurred in June 1989, when JMM enforced a six-day economic blockade that severely impacted industrial production nationwide. By halting coal transportation, they brought industries to a standstill, forcing the central government to engage in dialogue regarding Jharkhand’s statehood demand.

The Future of Coal in India

With climate change concerns and global pressure to transition to renewable energy, India faces a paradox. Coal remains the backbone of its power generation, yet over-reliance on it contradicts global sustainability goals. While renewable energy projects are gaining traction, coal remains irreplaceable in the short term. The government must balance economic imperatives with environmental responsibilities, ensuring cleaner mining technologies and improved efficiency.

However, without tackling corruption, mismanagement, and mafia dominance, coal mining will continue to be a sector where economic potential is squandered due to systemic inefficiencies. If India is to truly capitalize on its coal reserves, it needs transparent policies, strict governance, and accountability at all levels.

The question remains: will India clean up its coal sector, or will it remain a dark spot in the nation’s economic and industrial landscape?

( Author, a seasoned bilingual journalist, is an expert on Jharkhand’s sociopolitical landscape.He can be reached at pandeysanjay945@gmail.com)

India’s Taxpayer or Modi’s Travel Fund?

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The High Cost of Diplomacy

Amit Pandey

In an era where diplomacy shapes a nation’s global standing, Prime Minister Narendra Modi’s extensive foreign visits have become a defining feature of India’s international engagement. With ₹258 crore spent on 38 trips between May 2022 and December 2024, these visits raise a crucial question—are they an indispensable investment in India’s strategic and economic future, or an extravagant burden on taxpayers? While diplomacy is an essential tool for fostering international partnerships, securing trade deals, and enhancing geopolitical influence, the sheer scale of expenditure on these visits has sparked a heated debate.

Supporters argue that Modi’s diplomatic outreach has significantly elevated India’s position on the global stage. His engagements with world leaders have facilitated major trade agreements, strategic defense partnerships, and increased foreign investments, all of which contribute to India’s long-term economic and security interests. Under his leadership, India has assumed a more assertive role in global affairs, participating actively in forums like the G20, BRICS, and the Quad alliance. These visits have also reinforced India’s soft power, drawing global recognition for its technological advancements, infrastructure projects, and cultural influence.

However, critics question whether the benefits of these foreign trips outweigh their financial burden. At a time when India faces pressing domestic challenges such as inflation, unemployment, agrarian distress, and struggling public healthcare, is it justifiable to allocate such vast sums to diplomatic engagements? While international partnerships are crucial, does the Indian taxpayer receive tangible returns from these high-profile visits? The lack of transparency regarding the expenditure breakdown only fuels skepticism—could these trips be conducted more efficiently to reduce costs?

Another contentious issue is whether these diplomatic missions are genuine strategic necessities or political grandstanding. Modi’s foreign visits are often accompanied by massive public receptions, elaborate speeches, and extensive media coverage, projecting a carefully curated image of India’s rising global stature. While such optics enhance India’s brand abroad, they also raise concerns about whether these visits are strategically planned or merely serve as political spectacles to bolster domestic support. Compared to other world leaders who prioritize selective and high-impact engagements, does Modi’s frequency of travel truly translate into superior diplomatic outcomes?

Furthermore, while India has undoubtedly gained diplomatic leverage, critics argue that the government must prioritize domestic governance with the same vigor. If ₹258 crore can be spent on foreign visits, why does public healthcare remain underfunded? Why do essential social welfare programs continue to face budgetary constraints? The fundamental question remains—can a developing nation afford such grand diplomatic expenditures when millions struggle with basic necessities?

Diplomacy is an indispensable aspect of leadership, but its effectiveness should be measured not by the number of trips undertaken but by the tangible outcomes they deliver. At a time when governance requires a fine balance between global aspirations and local priorities, the justification for such large-scale spending remains a contentious issue that cannot be overlooked. As India charts its path forward, it must assess whether its diplomatic strategy aligns with the real needs of its people or if it risks becoming an exercise in extravagance at the cost of domestic welfare.

The Cost Breakdown: What Are We Paying For?

The most recent data shared by the government reveals that PM Modi’s 38 foreign trips between 2022 and 2024 amounted to ₹258 crore. This includes official visits, security arrangements, transport logistics, and the media representation necessary to cover these high-profile events. One of the most expensive of these visits was the Prime Minister’s trip to the United States in June 2023, which cost the Indian government over ₹22 crore.

It’s essential to understand the nature of these expenses. Apart from the obvious costs of flying a high-ranking official with a security detail across the globe, there are numerous other factors at play. These include hotel arrangements, transportation, diplomatic events, and security measures that come with the territory when a leader of a country embarks on international tours. For example, the media contingent, which covers these trips in full, adds to the cost, as does the presence of large diplomatic and business delegations.

The government’s detailed breakdown of these costs shows that various countries and visits came with different price tags. A trip to Nepal in May 2022 was relatively modest, with ₹80 lakh spent. However, other visits, like to Japan in May 2023 and the U.S. in June 2023, had significantly higher costs – ₹17 crore and ₹22 crore, respectively. These expenses are a direct reflection of the complexities of modern-day diplomacy, which often involves high-level political meetings, business engagements, and large ceremonial gatherings.

 Historical Context: The Rising Costs of Diplomacy

The most recent figures raise a pertinent question: are these trips more expensive than they have been in the past? Looking at data from earlier years, particularly before 2014, the costs of foreign trips were significantly lower. For instance, trips to the United States (2011), Russia (2013), and France (2011) cost ₹10.7 crore, ₹9.9 crore, and ₹8.3 crore, respectively.

It’s important to note, however, that these figures are not adjusted for inflation or changes in global circumstances. With the growing importance of high-profile state visits, the size of the delegations, and security concerns in today’s world, it is no surprise that the cost of such visits has risen. The world today is not the same as it was in 2011. With rising global tensions, enhanced security protocols, and a more dynamic media presence, costs are naturally going to increase.

Yet, even with these factors in mind, the jump in expenditure is hard to ignore. How do we justify such a significant increase in expenditure when the country faces mounting domestic challenges? Is it an investment in India’s global standing, or is it a misuse of public resources?

The Value of Diplomacy: Is It Worth the Price?

Supporters of the Prime Minister argue that these foreign trips are critical to enhancing India’s stature on the world stage. Each of these visits is seen as an opportunity to strengthen economic ties, bolster national security, and secure future trade deals. For instance, Modi’s U.S. trip in 2023 was not just a diplomatic mission but a platform to solidify the growing India-U.S. partnership in defense, trade, and technology. Similarly, visits to nations like Japan, Russia, and France were geared towards strengthening strategic partnerships that can have lasting economic benefits.

However, the question of whether these costs are justified remains. The government often highlights the business deals and economic partnerships that follow such trips. But can these benefits be quantified in such a way that justifies the substantial costs incurred? Or is there a more prudent way to engage in diplomacy that doesn’t require such lavish spending?

The true value of these trips lies not just in short-term gains but in their long-term impact on India’s global standing. For example, attracting foreign investment, forging strategic partnerships, and promoting India as a hub for innovation are outcomes that may take years to materialize. If these trips eventually lead to job creation, better trade deals, and stronger global influence, the initial costs may be viewed as an investment. Yet, whether this investment pays off for ordinary citizens remains an open question.

The Transparency Issue: Where’s the Breakdown?

While the government has provided an overview of the costs associated with these trips, it has been criticized for not providing a more detailed breakdown of where exactly the money is going. For example, how much is being spent on the Prime Minister’s personal security? What is the cost of transportation for the accompanying delegations? How much is the media coverage adding to the bill?

Such transparency is crucial, especially when public trust is at stake. Without detailed insights into how taxpayer money is being spent, it’s easy for the opposition to criticize the high costs as being wasteful. Providing a clear, itemized breakdown of these expenses would not only ensure greater accountability but also address any concerns about misuse of public funds.

Moreover, when these figures are released, the government should also consider providing comparative data on the costs of similar trips taken by other world leaders. This would allow for a more informed discussion on whether the expenditures are reasonable or if there are areas where savings could be made.

The political implications of these expenditures are immense. For opposition parties, especially the Congress, these figures are a goldmine for criticism. They argue that the government’s priorities are misplaced. At a time when India is grappling with economic difficulties, high inflation, and social inequality, spending ₹258 crore on 38 foreign trips seems excessive.

On the other hand, Modi’s supporters believe that these diplomatic missions are necessary for strengthening India’s position on the world stage. They point to the growing influence of India in international forums like the United Nations, the G20, and the Shanghai Cooperation Organization, attributing this success to Modi’s foreign policy. For them, these trips are investments in India’s future, securing partnerships that will pay off in the long run.

This divide in perspective highlights the ongoing struggle between fiscal conservatism and strategic global engagement. While both sides make valid points, it’s clear that the debate is not just about the costs of these trips but about the broader direction of India’s foreign policy and economic priorities.

 Rethinking the Costs of Diplomacy

As India continues to rise as a global power, the costs associated with its diplomatic efforts will likely increase. While these trips are an essential part of PM Modi’s foreign policy, the growing expenditure warrants careful scrutiny.

The question is not whether diplomacy is important, but whether the current model of conducting it is cost-effective. The government must consider finding a balance between maintaining a strong international presence and ensuring that taxpayer money is spent wisely. Transparency, accountability, and clear justifications for the costs of these trips will go a long way in addressing public concerns and ensuring that India’s global ambitions are realized in a fiscally responsible manner.

At the end of the day, the price of diplomacy should be weighed not just in monetary terms but in terms of the long-term benefits it brings to the citizens of India. Only then can we determine whether the cost of these high-profile foreign trips is truly worth the investment.

A Nation Struggles, But MPs Get a Pay Hike: Who Really Benefits?

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Amit Pandey

In a country where the common man struggles to make ends meet, inflation eats into salaries, and job opportunities remain elusive, the news of a 24% hike in MPs’ salaries lands like a thunderbolt. Is this a reflection of economic prudence, or does it expose the widening gap between those who govern and those who are governed? While the government insists on fiscal discipline, cutting down research grants, outsourcing university jobs, and leaving thousands of government vacancies unfilled, it has shown remarkable generosity when it comes to its own pockets. If austerity is the call of the hour, why does it apply only to the struggling middle class, the salaried employees, and the unemployed youth, while lawmakers grant themselves a comfortable raise without opposition?

This is the same government that justified job stagnation by pushing the narrative that street vendors, vegetable sellers, and even roadside snack vendors could be the torchbearers of India’s entrepreneurial dream. If selling pakoras is now considered dignified employment, why then do MPs need a fatter paycheck? Why does the economic burden never trickle up to those in power? The contradiction is glaring—while government employees are forced to make do with a meager 2% Dearness Allowance (DA) hike, citing economic distress, MPs unanimously approve their own raise without debate. How does this align with the claim that the government is struggling financially? If the economic crisis is real, should lawmakers not set an example by tightening their belts rather than loosening them?

The question remains—why do government employees, from high-ranking bureaucrats to fourth-class staff, not unite in protest against the systematic erosion of their financial rights? Why does collective bargaining seem impossible for those who serve the nation while unity among politicians is unwavering when it comes to personal financial gains? Ideologies may differ, party symbols may change, but when it comes to self-interest, Parliament speaks in one voice. If salary hikes for MPs can be sanctioned effortlessly, why can’t the same urgency be applied to long-pending employee promotions, better working conditions, and a reasonable DA increase?

The government’s priorities are laid bare. A country where research is undervalued, universities are forced into outsourcing, and public sector jobs remain unfulfilled cannot claim to be on a path of development. When was the last time Parliament unanimously stood for the working class, the jobless, or the financially squeezed government employees? If lawmakers can secure their futures without resistance, who will fight for the millions left behind?

Let’s break it down.

The Announcement

 The Ministry of Parliamentary Affairs issued a notification, officially increasing the monthly salaries of MPs by a significant 24%. While some may view this as a reasonable adjustment given the inflationary pressures that have plagued the country in recent years, others see it as yet another example of a disconnect between the people and their representatives. The new salary now stands at Rs 1.24 lakh per month, up from the previous Rs 1 lakh. In addition, the daily allowance for MPs has been raised from Rs 2,000 to Rs 2,500. The increase is also extended to former MPs, with pension hikes ranging from Rs 25,000 to Rs 31,000 per month, and additional pension for every year of service beyond five years being raised from Rs 2,000 to Rs 2,500 per month.

But what does all this mean for the average Indian citizen, the ones who voted for these very MPs and have to make ends meet every day?

 The Economic Rationale: Is It Justified?

At first glance, the government’s rationale for this salary increase seems grounded in reason. The notification cites the Cost Inflation Index (CII) specified in the Income Tax Act of 1961, which accounts for the increasing cost of living. After all, salaries and allowances of public officials should, theoretically, reflect the changing dynamics of inflation, just like any other sector of the economy.

However, let’s consider the context. According to data from the Reserve Bank of India (RBI), inflation has been a persistent issue in India for years, particularly in the food and fuel sectors. The common man has felt the heat of rising costs, especially with essentials becoming more expensive. While the increase in salaries for MPs might seem justified on paper, is this the right time to increase the salaries of elected representatives?

Take a moment to think about it. Average workers, who have also been dealing with rising prices, often see little to no increments in their salaries. In fact, many have faced job losses, wage cuts, and layoffs. The situation for farmers and blue-collar workers is even more dire. So, when MPs, who are supposed to represent these people, receive a substantial pay raise, one can’t help but question the fairness of the situation. It raises the uncomfortable question: are politicians too insulated from the economic realities of their constituents?

The Political Fallout: The Trust Deficit

For a country that is struggling with trust deficits in its political system, this hike might not sit well with the people. The truth is, the common man is already disillusioned with the political establishment. Elections, while hotly contested, often reveal a bitter reality – voters feel that they have no choice but to pick the “lesser evil” among candidates. Scandals, corruption, and a perceived lack of accountability continue to plague India’s political system.

In this context, a pay hike for MPs can be viewed as a tone-deaf move by the government, further deepening the divide between the political class and the public. For many, it’s hard to justify why MPs should get a raise when so many people are struggling to get by. 

Additionally, MPs already have significant perks, ranging from government-provided housing, free travel, and hefty pensions post-retirement. A salary hike at this juncture, when unemployment is on the rise and economic recovery is slow, risks exacerbating the public’s frustration with the political system.

The Psychological Impact: A Disconnect

India, like many other democracies, is based on the principle that the elected officials are “servants of the people,” working on behalf of their constituents. However, every move made by these politicians seems to further this feeling of a growing divide between the rulers and the ruled. The thought that those representing the people in the corridors of power might be out of touch with the daily struggles of the common man isn’t new. Still, this increase in salary only reinforces that idea.

The psychological impact of such a move can be enormous. People might start questioning the integrity and sincerity of their MPs. How can someone who is supposed to be working for the people justify such a large increase in their salary when the average citizen is struggling to survive on a meager income? This feeling of alienation can further erode public faith in the political system and its leaders.

Let’s not forget the former MPs who benefit from this increase in pension. Former members of Parliament, who no longer serve the people, are also entitled to pensions that will now rise from Rs 25,000 per month to Rs 31,000 per month. While it might seem like a modest increase, one must ask: Is this fair?

Are we, as a society, comfortable with providing these individuals who have served only a few years in office with such perks, while millions of hardworking Indians do not have a stable pension scheme or social security? Former MPs are entitled to additional pension for every year of service in excess of five years, meaning that for those who served longer periods, the payout could become substantial. 

Moreover, the additional pension for every year of service beyond five years being raised from Rs 2,000 to Rs 2,500 per month means that former politicians, after having served for several years, stand to gain a fairly comfortable retirement compared to the average citizen.

The Political Economy: The Need for a Broader Debate

We need to understand that increasing MPs’ salaries isn’t simply a matter of “fairness” to those in public service. It’s a question of how such policies fit into the broader political economy of the country. What does this say about the government’s priorities when it comes to wealth distribution?

In a country where income inequality is growing, where millions still live below the poverty line, and where jobs are scarce, increasing the salary of MPs should be a part of a larger debate. Instead of just increasing the salary of parliamentarians, why not push for policies that directly benefit the common man? Why not focus on providing better healthcare, affordable education, or social security? Why not address issues like unemployment, rising prices, and economic instability?

The real question is: can India afford to keep rewarding its political class, when so many of its citizens remain trapped in cycles of poverty and economic distress?

A Step Toward Reform or More of the Same?

At the end of the day, the 24% hike in MPs’ salaries is symbolic of a much deeper issue at play – the disconnect between the political establishment and the common citizen. While the increase may have been justified by the rising inflation and cost of living, the timing and the optics of the move raise uncomfortable questions about fairness, accountability, and the priorities of the government.

Is this a necessary step toward reform, an adjustment to ensure MPs’ wages keep up with inflation? Perhaps. But at a time when the public’s trust in the political system is already at a historic low, such moves should be accompanied by broader policy shifts that directly benefit the people of India. Without addressing the root causes of public discontent, such measures risk being seen as yet another example of a political class that is more concerned with its own well-being than the well-being of the nation.

India’s democracy can and should be a reflection of its people. And until politicians start sharing the same concerns and struggles as the citizens they represent, the divide between the powerful few and the powerless many will only continue to grow.

( Author is Managing Editor of The Emerging World)

Journalists from across the country will raise their voice in New Delhi

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EW News, New Delhi

New Delhi : In a major demonstration, journalists from across India will gather at Jantar Mantar, New Delhi, on March 26 to demand the implementation of a Journalist Protection Law, a National Journalist Pension Scheme, and a Journalist Health Insurance Scheme. The protest has been organized by the Bharti Shramjeevi Patrakar Sangh (BSPS) and has already seen widespread participation commitments from journalists nationwide. BSPS National President Ashok Pandey, National General Secretary Shahnawaz Hasan and National Treasure SS Nasrin have been actively involved in organizing and managing the event for the past week. Journalists from Madhya Pradesh, Jharkhand, Telangana, Chhattisgarh, Bihar, Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Haryana, Chandigarh, Manipur, and several other states have already started their journey towards the capital.
Upon reaching New Delhi, BSPS’s national leadership, along with state officials, have been overseeing preparations for the protest. On the evening of March 24, a review of the arrangements at the protest site was conducted.
The journalists’ movement has also gained the support of legal professionals and intellectuals. Meanwhile, the increasing momentum of the protest has reportedly prompted the government to take note of the demands raised by the journalists.

Let us tell you that BSP has been raising the issues of journalists across the country for a long time. Dharnas have been held in many states regarding the demands. After a long time, journalists from across the country will gather at Jantar Mantar where they will put forward their demands prominently.

Make in India or Depend on Foreign Tech?

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The Dilemma of Indian IT

Amit Pandey

India’s technology sector, often celebrated as a global IT powerhouse, has predominantly built its success on service-oriented models rather than groundbreaking innovations. This trend has raised concerns among industry experts and policymakers about the nation’s technological self-reliance and its aspirations to become a “Vishwaguru” or world leader in technology.

A recent development that underscores this issue is the partnership between India’s leading telecom companies, Reliance Jio and Bharti Airtel, with Elon Musk’s SpaceX to bring Starlink’s satellite internet services to India. Announced in March 2025, these collaborations aim to provide high-speed internet access, especially in remote and rural areas, leveraging Starlink’s satellite technology .

This move, however, raises critical questions about the capabilities and ambitions of Indian tech giants. Why did these companies feel the need to partner with a foreign entity like Starlink? Does this indicate an inability to develop indigenous solutions that can compete on a global scale? Such partnerships suggest a reliance on external technologies, highlighting a gap in domestic innovation.

Historically, Indian IT companies such as Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, and Tech Mahindra have focused primarily on IT services and outsourcing. While this strategy has driven significant economic growth, it has also led to a limited emphasis on research and development (R&D). According to the Department of Science & Technology’s Research and Development Statistics for 2019-20, the contribution of the IT sector to India’s Gross Domestic Expenditure on R&D (GERD) has been relatively low .

This risk-averse approach raises concerns about the long-term sustainability of India’s position in the global tech arena. Are these companies prioritizing short-term profits over long-term innovation? By focusing on low-risk service models, are they neglecting opportunities to invest in high-risk, high-reward research that could lead to groundbreaking technologies?

The government’s role in this scenario is also crucial. Despite providing various incentives such as tax deductions, subsidies, and policy support to promote initiatives like “Make in India,” there has been limited success in fostering indigenous technological innovation. For instance, while the “Make in India” initiative aimed to transform India into a global manufacturing hub, its impact on the IT sector’s innovation capabilities has been minimal. This raises questions about the effectiveness of such policies and the accountability of corporations benefiting from them.

The recent partnerships with Starlink have also sparked political debates. Some opposition leaders have criticized these deals, suggesting they may have geopolitical implications. For example, Congress leader Jairam Ramesh alleged that these partnerships were orchestrated to “buy peace” with the United States, given Elon Musk’s close ties with the U.S. administration. Such claims, whether substantiated or not, add another layer of complexity to the discourse on India’s technological autonomy.

Furthermore, concerns about national security have been raised. The Communist Party of India (Marxist) expressed apprehensions regarding potential security risks associated with allowing a foreign entity like Starlink to operate in India’s critical communication infrastructure  These concerns highlight the delicate balance between embracing global technological advancements and safeguarding national interests.

In conclusion, the reliance on foreign technology, exemplified by the recent Starlink partnerships, underscores the need for a strategic shift in India’s tech industry. Indian IT giants must move beyond their traditional service-oriented models and invest in R&D to develop indigenous technologies. The government, on its part, should reassess its policies to ensure that incentives lead to tangible innovations. Only through such concerted efforts can India aspire to become a true “Vishwaguru” in technology, reducing dependency on external entities and enhancing its global standing.

Title 1: The Grand Illusion of Indian Tech Giants: Service Providers, Not Innovators

When Union IT Minister Ashwini Vaishnaw recently criticized Indian tech companies for being mere service providers rather than innovators, his remark resonated with those who have long questioned India’s lack of technological breakthroughs. Despite a massive IT workforce and government-backed initiatives, India remains a follower rather than a leader in the global technology sector. The question is: Why?

India’s IT boom began in the 1990s, driven by outsourcing from Western nations. Companies like Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, and Tech Mahindra capitalized on the demand for cost-effective software solutions. However, while global giants like Microsoft, Google, and Apple invested in research and development (R&D), Indian firms chose the safer route: service-based models that guaranteed profits but required minimal innovation. The National Association of Software and Service Companies (NASSCOM) reports exponential growth in India’s IT exports, yet the sector’s contribution to groundbreaking advancements remains negligible.

A stark comparison can be drawn with China and South Korea. Huawei has heavily invested in 5G technology, and Samsung has revolutionized semiconductor manufacturing. In contrast, Indian firms rely on government-backed schemes like “Make in India” without taking the risks necessary for pioneering technology. The government’s tax reductions, corporate bailouts, and loan write-offs have fostered complacency, ensuring these companies’ survival without demanding technological progress.


A Global Competition Crisis

Elon Musk’s Starlink recently partnered with Indian telecom giants Jio and Airtel to introduce satellite internet services. Instead of developing indigenous alternatives, Indian firms opted to act as intermediaries, further exposing their inability to compete globally. This raises a critical question: If Indian tech firms are so reliant on foreign innovation, can India ever claim to be a technological powerhouse?

Airtel and Jio collectively serve over 540 million consumers in India. With such an extensive market, why haven’t these firms invested in their own satellite-based communication networks? The answer lies in their risk-averse approach. Service-based models ensure steady revenue without the uncertainty of R&D. Developing satellite communication technology requires years of investment, strategic risk-taking, and commitment—something Indian companies systematically avoid.

This over-reliance on foreign technology is not just a business failure; it has geopolitical and security implications. A country that imports its critical communication infrastructure exposes itself to cybersecurity vulnerabilities. In 2023, the Uttarakhand government’s Integrated Management Financial System (IMFS) site was hacked due to outdated, pirated software procured at exorbitant costs. According to sources, the software was purchased by a government-appointed committee at a highly inflated price, only to later discover it was a pirated version. Even a moderately skilled hacker could breach it, yet the government accepted the purchase. When the hack occurred, why weren’t the responsible officials held accountable? Why weren’t the companies involved called for questioning? This incident exposes a nexus where officials and tech firms exploit government funds without scrutiny.

Multiple state governments face similar issues, where outdated and overpriced technology is procured, leading to massive financial losses. The Madhya Pradesh government faced a similar cybersecurity breach in 2022, yet no structural reforms followed. Without audits or penalties, companies selling faulty software continue to thrive under government contracts. This nexus between the government and corporate entities prevents India from achieving true technological self-reliance.


The Myth of “Make in India”

One of the biggest deceptions in India’s tech landscape is the illusion of “Make in India.” While the initiative was designed to encourage domestic manufacturing, it has largely resulted in India becoming an assembler rather than a manufacturer of technology. A prime example is the LED bulb industry, aggressively promoted as an energy-saving revolution. Indian companies like Philips and Surya benefited from tax cuts and subsidies, but a deeper look into the supply chain reveals a troubling reality.

In 2018, European markets rejected large shipments of LED bulbs due to quality concerns, leading these companies to dump the products into the Indian market at inflated prices. This raises serious concerns: Is India becoming a dumping ground for outdated and rejected technology from developed nations? Are Indian consumers unknowingly paying a premium for substandard products under the guise of innovation?

This culture of assembling extends beyond LED bulbs. India’s electronics industry is heavily dependent on Chinese imports, with over 80% of components used in smartphones, laptops, and other devices sourced from China. Despite government attempts to promote indigenous semiconductor manufacturing, India has made little progress in establishing a self-sufficient ecosystem. The global chip shortage further exposed India’s vulnerability, as domestic manufacturers scrambled to meet demand without the infrastructure to produce critical components.

Even in areas where India has made strides, such as space technology with ISRO, the involvement of private Indian tech companies remains minimal. Unlike SpaceX, which has revolutionized space exploration, Indian firms have shown little interest in pushing boundaries beyond government contracts.


What Must Change?

The fundamental problem lies in the lack of accountability and vision among Indian tech giants. These companies have benefitted immensely from government incentives but have failed to contribute to technological progress. To address this, the following steps must be taken immediately:

  1. Conditional Government Funding: Financial incentives should be tied to R&D investments. Companies must dedicate a fixed percentage of revenue to innovation.
  2. Public-Private Collaboration: The government must actively partner with private firms to develop indigenous alternatives in AI, semiconductors, and cybersecurity.
  3. Reduction in Import Dependence: India must enforce stricter policies to limit foreign technology imports unless no domestic alternatives exist.
  4. Corporate Accountability: IT firms must be held responsible for utilizing government benefits effectively. Companies that fail to innovate should face penalties rather than additional subsidies.

The narrative of India as a “Vishwa Guru” in technology remains political rhetoric. Without concrete action to push Indian companies toward self-reliance in innovation, India will remain a service-oriented economy rather than a technological leader. The time for complacency is over—India must shift from being a passive consumer of global technology to an active contributor to the digital future.

( Author is Managing Editor Of The Emerging World)

PM CARES Fund: A Billion-Dollar Black Box or a Lifeline?

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Amit Pandey

legal status as a separate entity with its own set of guidelines and rules. This decision did little to assuage concerns about the fund’s transparency, and critics argue that this move further entrenched the secrecy surrounding its operations.

The government’s justification for maintaining this separate fund is that it enables faster relief. While this argument holds weight in theory, the lack of oversight and accountability raises red flags. When a massive amount of public money is involved, it’s essential that there be systems in place to ensure that the funds are being used appropriately and effectively.

The Political Implications: A Trust or a Tool for Control?

The most intriguing aspect of the PM CARES Fund is the political control it offers to those in power. With just three key political figures controlling the fund, there is an undeniable sense of centralization and consolidation of power. Critics argue that this concentration of control over such a large sum of money could be used to further political agendas, particularly in an election year.

Moreover, the fund has become a symbol of the growing gulf between the political elite and the common man. While politicians and big businesses have had a direct hand in shaping the flow of funds, ordinary citizens remain out of the loop. They are left with only the government’s word that the money is being used for its intended purpose. But without the necessary checks and balances, that word means little.

The PM CARES Fund is undoubtedly one of the most significant financial initiatives in recent Indian history, raising billions of rupees in a matter of months. While its intention—to provide relief during emergencies—is commendable, the way it has been handled leaves much to be desired. The lack of transparency, the absence of public scrutiny, and the concentration of control in the hands of a few individuals raise serious concerns.

Whether the PM CARES Fund will continue to be a lifeline for millions or become an emblem of governmental opacity and mismanagement remains to be seen. However, what is clear is that until the fund’s workings are opened up to public scrutiny, the questions surrounding its legitimacy will continue to overshadow its potential to help those in need.

In the end, transparency isn’t just about giving people access to numbers and figures; it’s about fostering trust. And until that trust is restored, the PM CARES Fund will remain a black box—a tool for relief or a political chess piece, only time will tell.

( Author is Managing Editor of The Emerging World)

Rahul Gandhi’s Bold New Political Line: Crafting Alliances with Fear and Strategy

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Ravindra Ojha

The political horizon of India has always been an unpredictable playground, where alliances, rivalries, and ideological shifts dictate the flow of power. In this ever-changing arena, it is not just the policies or manifestos that drive the narrative but also the strategies that leaders deploy to maintain relevance and command influence. In this context, Rahul Gandhi, the scion of the Congress Party, seems to have found a new “political line” post the Delhi elections, which may just turn out to be the game-changer he’s been seeking for years. But is it really a new beginning, or is it just an attempt to salvage what remains of a crumbling legacy?

The Emergence of a New Strategy

The Delhi Assembly elections marked a significant point in Indian politics, not just because of Arvind Kejriwal’s landslide victory, but also because of the Congress Party’s humiliating defeat. It was during this period that Rahul Gandhi seemed to recalibrate his approach towards alliances and leadership. His new political line involves the idea of bringing his ‘ally’ parties, who have thrived on Congress’s turf, into the fold by enforcing discipline, something that Congress seemed to have lost over the years. The idea is simple yet compelling: control the narrative and make the allies fall in line, ensuring that they abide by Congress’s rules.

But Rahul Gandhi’s strategy is not just about internal management; it is about ensuring that the stakes are high for everyone. For allies like the RJD, the Shiv Sena, or the NCP, Congress’s survival in the opposition bloc means political survival for them too. The key to enforcing this control, Rahul seems to believe, lies in the threat of electoral defeat. Just as he framed it: “When there is a fear of losing, even the mightiest of political players start following the rules.” This statement is a subtle admission of Congress’s current lack of power and influence, but at the same time, it points to a cunning realization. Congress, with nothing left to lose, is ready to play hardball.

The Congress Party, for years, has been the elephant in the room in Indian politics. It used to set the tone for political debates and policy decisions. But with the rise of the BJP, the decline of the UPA coalition, and internal party infighting, Congress has been relegated to a position of insignificance in the national arena. This, however, has also led to a paradoxical situation. When you have nothing to lose, you can afford to play a different kind of game. 

Rahul Gandhi, like many of his predecessors, has realized that Congress cannot continue to operate in the same manner. The fear of defeat, it seems, has been replaced by a sense of liberation. Now, Congress has nothing left to protect except its future relevance. This is why Rahul has been shifting his focus from trying to outdo Narendra Modi’s BJP to recalibrating the power dynamics within the opposition itself. A key part of this recalibration is making sure that regional parties, who have grown by exploiting Congress’s weakness, understand that they can no longer operate on their own terms.

What does this mean in practical terms? It means that Congress has stopped playing the conciliatory game with its allies. If they want Congress’s support, they will have to respect its conditions. The rhetoric may sound harsh, but it’s not without its merit. The question, however, is whether the likes of Nitish Kumar, Lalu Yadav, and others will be ready to accept this new power dynamic.

 The Bihar Gambit: Rahul Gandhi’s Challenge to Lalu Yadav

Bihar presents a crucial test for Rahul Gandhi’s new political strategy. Bihar, once a Congress bastion, saw its fortunes plummet in the face of Lalu Yadav’s RJD and Nitish Kumar’s JD(U). In the 2019 elections, Congress was reduced to a shadow of its former self in Bihar, thanks to the unrelenting grip of Lalu Yadav’s political machinery. For Rahul, it’s not just about reclaiming Congress’s position in Bihar; it’s about challenging the very people who have relegated Congress to a non-entity in the state. 

In this new phase, Congress has thrown the gauntlet down by appointing Rajesh Kumar, a Dalit MLA, as the new Bihar Congress president. The symbolic nature of this move is not lost on anyone. By giving power to a Dalit leader, Rahul Gandhi is signaling a shift in Congress’s approach towards caste-based politics. But the real challenge lies in whether Lalu Yadav, the master of caste politics, will allow this shift to occur. Lalu, who has been instrumental in Congress’s downfall in Bihar, is unlikely to roll over without a fight.

The question arises: will Lalu Yadav accept Rahul Gandhi’s terms for an equitable partnership, or will he resist it with all the political capital he has amassed over the years? The calculus for Lalu is simple: Congress has no real power left in Bihar, and it needs his political machinery to win anything. For Lalu, any concession to Rahul could mean losing his dominant position in the state. However, the fear of BJP’s growing clout in Bihar may push Lalu to rethink his stance. If the BJP consolidates its position in Bihar further, it could endanger not only Congress’s future but Lalu’s as well. This is where Rahul’s calculated approach could work in his favor.

Rahul Gandhi’s approach is undoubtedly risky. By making fear of defeat the centerpiece of his strategy, he is relying on the assumption that allies and opposition parties alike will be driven by a fear of losing power. The danger here lies in the fact that fear can often lead to irrational decisions. If allies like Lalu or Nitish feel cornered, they might just break away from Congress, taking their political base with them. The trick for Rahul is to ensure that the fear of losing to the BJP outweighs the fear of losing power within the opposition bloc.

This brings us to the larger picture of Indian politics. For too long, the narrative has been driven by polarizing figures like Narendra Modi and Amit Shah. Rahul Gandhi’s newfound strategy is an attempt to shift that narrative back into Congress’s hands. But whether or not it succeeds depends largely on whether he can convince the fractured opposition that Congress is the only viable counterweight to the BJP. And more importantly, whether he can control his own party’s internal disarray.

The Road Ahead: A Complicated Game

Rahul Gandhi’s new political line is an interesting development in the Indian political scene. On the one hand, it represents a tactical shift towards stronger leadership and internal discipline. On the other hand, it also risks alienating allies who may feel that Congress is overplaying its hand. With regional parties like the TMC and AAP looking to carve out their own space in the opposition, Congress’s position as the unifying force in the anti-BJP bloc is far from assured.

But one thing is certain: Rahul Gandhi’s new approach is bound to shake things up. Whether it leads to a successful resurgence for Congress or ends in further fragmentation of the opposition, only time will tell. But one thing is clear: in the volatile world of Indian politics, Rahul Gandhi has found a way to make his voice heard again. And that, in itself, is no small achievement.

In the coming months, we can expect to see more of this high-stakes political maneuvering. The opposition, with all its cacophony and chaos, is in for a tumultuous ride. But in this political game of fear, ambition, and survival, Rahul Gandhi’s new line may just be the spark that ignites the next phase of India’s political evolution. Whether it leads to Congress’s revival or its further decline will be the ultimate test of this bold new strategy.

India-China Relations Reimagined

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Zaheer Mustafa

Prakash Karat’s recent statement advocating for fostering better India-China relations without forming a formal alliance underscores a multifaceted issue embedded within the broader context of geopolitics, domestic political considerations, economic interdependence, and historical tensions. The statement comes amidst longstanding disputes between the two nations that have been punctuated by territorial disagreements, economic dependencies, and episodes of diplomatic engagements. It merits careful analysis to unravel its implications and the layers of meaning it might carry.

India and China share a deeply complex relationship characterized by unresolved border disputes, economic interdependence, and differing political systems. Among the most contentious issues is the territorial dispute over Arunachal Pradesh and the Aksai Chin region. These disagreements, dating back to the mid-20th century, resulted in the Sino-Indian War of 1962, an event that profoundly influenced bilateral relations. More recently, the skirmishes in Galwan Valley in 2020 further highlighted the volatility and fragility of the relationship. While India has sought to strengthen its territorial claims and bolster its defense posture, China has continued to assert its own claims, creating an environment of mistrust that complicates any efforts at reconciliation.

Economically, the relationship between the two countries is marked by significant asymmetry. While India has a burgeoning economy with a diverse industrial base, it remains heavily reliant on China for certain goods and sectors. For instance, in 2024, India’s trade deficit with China reached $85.1 billion, underlining the extent of economic interdependence. This reliance is particularly pronounced in sectors like electronics, pharmaceuticals, and machinery. While economic engagement offers potential benefits, it also presents risks, as it allows China to wield considerable economic leverage. Critics argue that this dynamic could be exploited by China to advance its geopolitical objectives, particularly in the absence of trust and mutual respect.

Karat’s call for improved relations must also be viewed through the lens of India’s foreign policy objectives and its position in a multipolar world. India has historically pursued a policy of strategic autonomy, seeking to balance its relationships with major global powers without aligning too closely with any one bloc. In this context, fostering better ties with China could be seen as a pragmatic move to enhance India’s position in the global order. By engaging with China, India could potentially strengthen its negotiating position on global issues and counterbalance the influence of other powers, such as the United States. However, such engagement must be carefully calibrated to ensure that it does not compromise India’s core interests or exacerbate existing vulnerabilities.

The timing of Karat’s statement also raises questions about its political motivations. The Communist Party of India (Marxist), or CPI(M), has experienced significant setbacks in recent years, particularly in its former strongholds of West Bengal and Tripura. These electoral defeats have left the party grappling with questions about its relevance and future direction. In this context, Karat’s remarks could be interpreted as an attempt to reposition the party and align its foreign policy stance with the broader national interest. By advocating for improved relations with China, the CPI(M) may be seeking to demonstrate its pragmatism and relevance in the current political landscape.

However, the CPI(M)’s historical alignment with China adds another layer of complexity to this narrative. The party has often been perceived as ideologically sympathetic to China’s communist regime, a perception that has fueled criticism from its political opponents. Karat’s emphasis on maintaining autonomy and avoiding formal alliances could be seen as an attempt to distance the party from its ideological ties and present a more balanced and pragmatic approach to foreign policy. Whether this shift will resonate with the broader electorate and enhance the party’s political fortunes remains to be seen.

The ongoing tariff discussions between India and China further underscore the strategic calculations at play. These negotiations, which aim to address trade imbalances and reduce economic dependency, have significant implications for both countries. For India, the discussions represent an opportunity to address its trade deficit and strengthen its economic position. For China, engaging in these talks could help mitigate the impact of its own economic challenges, including deflation and a housing market crisis. Karat’s advocacy for dialogue and engagement aligns with these broader economic imperatives, highlighting the potential benefits of a more collaborative approach.

At the same time, it is essential to consider the risks associated with closer engagement with China. The unresolved border disputes and instances of aggressive behavior, such as China’s construction of infrastructure in disputed areas, underscore the challenges of building trust and fostering genuine cooperation. Additionally, China’s track record of using economic leverage to advance its geopolitical objectives raises concerns about the potential consequences of deepening economic ties without addressing the underlying issues.

Karat’s statement also reflects broader debates about India’s role in the global order and its approach to navigating a multipolar world. As emerging powers like China and India seek to assert their influence on the global stage, the dynamics of their relationship will play a crucial role in shaping the contours of the international system. By advocating for improved relations without forming an alliance, Karat underscores the importance of strategic autonomy and the need for India to chart its own course in the face of complex global challenges.

In conclusion, Prakash Karat’s call for fostering better India-China relations offers a nuanced perspective on a multifaceted issue. While his proposal aligns with the principles of strategic autonomy and pragmatism, its feasibility and implications must be carefully examined. The unresolved territorial disputes, economic dependencies, and historical tensions between the two countries present significant challenges that must be addressed to build a foundation for genuine cooperation. At the same time, the potential benefits of improved economic and diplomatic engagement cannot be overlooked, particularly in the context of a rapidly evolving global order.

Ultimately, any shift in India’s approach to China must prioritize national interests and strategic autonomy. While dialogue and engagement offer a pathway to addressing shared challenges and advancing mutual interests, they must be accompanied by a clear-eyed assessment of the risks and a commitment to safeguarding India’s core interests. As India navigates the complexities of its relationship with China, the principles of pragmatism, resilience, and strategic autonomy will remain essential in shaping its foreign policy and securing its place in a multipolar world. Karat’s statement, while rooted in political and ideological considerations, serves as a reminder of the need for a balanced and forward-looking approach to one of India’s most complex and consequential relationships.