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Interim Budget: WHO BENEFITS THE MOST?, By Dhurjati Mukherjee, 7 February 2024 Print E-mail

Open Forum

New Delhi, 7 February 2024

Interim Budget

WHO BENEFITS THE MOST?

By Dhurjati Mukherjee 

Budget analysis from various angles is found reflected in the media. Economists, financial experts, and others involved in the analysis rarely try to find out how much of the allocated sum reaches the lower segments of society, i.e., low-income groups, economically weaker sections and the poor. This aspect is necessary as around 60% of the population or more belong to the above category. 

Experts note that fiscal consolidation was attempted in the interim budget and there were no populist measures, such as reducing the tax slab or increasing the standard deduction so that the middle class pay less taxes. However, emphasis on infrastructure, specially railways with allocation of Rs 2.55 lakh crore needs to be appreciated. The three major economic railway corridors announced shall improve logistic efficiency, reduce costs, ensure safety and higher travel speed for passengers. Besides, the decision to roll out the first set of 10 Vande Bharat trains with sleeper facilities and converting 40,000 bogies to such standards shall enhance passenger comfort. 

The other positive aspects include the vision of ‘Viksit Bharat’ which emphasises a prosperous nation in harmony with nature and the steps outlined therein are welcome. Though the focus of assisting States in accelerating development of aspirational districts and blocks is well received, the target for each year and the funds to be disbursed have not been outlined.  

The interim budget allocates significant resources to bolster the green energy sector, with a focus on harnessing India’s vast offshore wind energy potential. One such notable initiative includes viability gap funding for development of 1 gigawatt (GW) of offshore wind energy, which is expected to play a crucial role in diversifying India’s renewable energy portfolio and reducing reliance on fossil fuels. Besides, there’s an ambitious goal to set up coal gasification and liquefaction projects capable of processing 100 metric tonnes by 2030 to diminish India’s import dependency on natural gas, methanol, and ammonia, while simultaneously promoting cleaner sources. There are plans too to set up one crore rooftop solar power units for households. 

As regards the farm sector, the government’s resolve to increase output of oilseeds, milk aquaculture production to help reduce dependence on imports for its food security and boost exports is a long-awaited step. Experts have been emphasising diversification of agriculture beyond crops to livestock and fisheries to increase farm income. For the masses, support for 20 million rural homes is possibly the only area of satisfaction as over Rs 50,000 crore has been allocated to PMAY-G for 2024-25, which is almost double the Rs 28,174 crore spent in the current fiscal, as per revised estimates.  

Inequality remains a key problem in the Indian economy and as per government data, per capita national income increased from Rs 72,805 in 2014-15 to Rs 98,374 in 2022-23 –a 35% hike. However, as known this is unequally distributed. A few big capitalists make some big investments, but these are not enough to offset the decline in medium and small enterprises or generate the much-needed employment. The big economic concerns are unemployment and underemployment, poor viability of farming, high food prices relative to workers’ incomes and inadequate access to basic services. 

Reacting to the interim budget, Congress leader and former finance minister P. Chidambaram had said the fundamental flaw in NDA’s approach to the economy and governance is it is biased in favour of the rich.“It is a government of the rich, by the rich and for the rich,” he said, pointing out further “the government is either ignorant or callous to the fact that the top 10% owns 60% of the nation’s wealth and earn 57% of the nation’s income and that income inequality has widened significantly in the last 10 years”. 

Regarding government’s claim that it was empowering women by increasing their participation in the work force, he said the Labour Force Participation Rate among urban women is 24% against 73.8% for men. Perhaps, the government increases workforce participation for women by including unpaid helpers in family enterprises who don’t get remuneration for their work. 

The other basic problem of the economy is the lack of momentum in the manufacturing sector, with weak private consumption and investment and a rising divide between strong high-end and subdued low-end purchases. Though there is much talk of fiscal consolidation, the basic economic problems remain unresolved. 

An important area that’s been the subject of much discussion is the health sector. The country has 166,000 Health and Wellness Centres. Beyond affordability and accessibility, the quality of healthcare is too poor and can in no way be compared with other emerging nations. As per the Asian Development Bank (ADB), the integration of quality into universal health coverage is yet to be adequately addressed. 

Apparently, there’s been a meager 1.7% rise in the budget for 2024-25 in the annual outlay for health programmes after slashing the current year’s health expenditure by Rs 8500 crore. This means a 4.3% decline in real terms, keeping in view inflation of 6%.As Chidambaram pointed out that the budget for health is 1.8% and for education 1.5% of total expenditure, “None of the boasts can be accomplished with such low expenditure.” 

The government’s claim of inclusive development has come under scrutiny as the National Campaign on Dalit Human Rights (NCDHR) found that Scheduled Castes and Scheduled Tribes had been allocated a paltry amount in the budget. The total estimated expenditure is Rs 51.08 crore, whereas the total allocation for the welfare of SCs is just Rs 1.66 lakh crore and even less for the STs at Rs 1.21 lakh crore. 

Undoubtedly, more resources are needed for welfare schemes, and this is only possible if taxations are increased. Organisations like Oxfam have repeatedly stressed the need to levy a wealth tax on the millionaires and billionaires of the country. Besides, there is need to impose an inheritance tax of at least 25% as in most other countries, including the US, it’s around 40%. But these suggestions sadly have been ignored. 

It’s basic knowledge that generation of more revenue will lead to increase in development expenditure. Most experts have been insisting on the need to increase tax to GDP ratio, which would of course affect the corporate. This too is being ignored by the ruling dispensation perhaps as some experts feel that top corporates may be making donations to the party and/or for temples etc. The inequality spectrum requires sustained attention.---INFA 

(Copyright, India News & Feature Alliance)

 

Uttarakhand UCC: IS INDIA NEXT ?, By Poonam I Kaushish, 6 February 2024 Print E-mail

Political Diary

New Delhi,, 6 February 2024

Uttarakhand UCC

IS  INDIA  NEXT ?

By Poonam I Kaushish 

It’s been an in-n-out political doors week: one Chief Minister switches sides, another is arrested and a third anointed in his place topped by Opposition accusing BJP of ‘luring’ aka bribing MLAs to dump their Party. Amidst this, in salubrious hilly Uttarakhand history was made when it became the first State to implement the Uniform Civil Code (UCC), the last of BJP’s core agendas after it fulfilled repeal of Article 370 in J&K and construction of a ‘magnificent’ temple in Ayodhya, following recommendations from a Government-appointed committee. 

Primarily, UCC a long-debated legal reform aims at uniformity in personal laws, like marriage registration, child custody, divorce, adoption, property rights and inter-State property rights regardless of religious beliefs. It gives importance to safeguarding interests of women, children and differently-abled and covers equal rights for daughters living on ancestral properties and gender equality. The State also seeks a ban on polygamy, child marriage and registration of live-in relationships. 

It divests religion from social relations and personal laws related to marriage, inheritance, family, land etc, bypasses contentious issue of reform of existing personal laws based on religion --- Hindu Marriage Act (1955), Hindu Succession Act (1956) Hindu Code Bill, Shariat law and Muslim Personal Law Application Act (1937). It would ensure all Indians are treated equally, provide gender equality and help improve women’s condition. Tribals’ though have been kept out of its purview.

Pertinently, the need for a UCC arises due to existence of discriminatory practices and is considered crucial to achieving social reform, eliminating inequities, and upholding fundamental rights. The BJP is clear: It believes no country should have any religion-based law other than a single law for citizens. Moreover, UCC provides protection to vulnerable sections and religious minorities, while encouraging nationalistic fervour through unity.

Naturally, Opposition opposes this on the fallacious ground UCC would interfere in religious groups personal laws and right of religious freedom unless religious groups are prepared for change (sic). It’s a ‘minority vs majority’ issue and Hindutva Brigade’s policy for Muslims living in India. It would disintegrate the country and hurt its diverse culture, they warn. 

Many whoop for UCC underscoring it is a comprehensive common law governing personal matters: marriage, divorce, adoption, inheritance and succession for citizens irrespective of religion, harmonising diverse cultural groups, removing inequalities and protecting women rights.

Moreover, as India's political realities have changed so much since 2014 and modern society is gradually becoming homogenous whereby traditional barriers of religion, community and caste are slowly dissipating thus supporting national integration. A thought echoed by Supreme Court in various judgments. 

Those against it argue it violates Constitutional freedom to practice religion of choice which allows communities to follow their respective personal laws. For example, Article 25 gives every religious group the right to manage its own affairs and Article 29 the right to conserve their distinct culture. Also, the Constituent Assembly’s Fundamental Rights sub-committee deliberately did not include UCC as a Fundamental Right.

As the cacophony for and against UCC grows louder the correct answer lies somewhere in between. However, what cannot be denied is UCC will benefit BJP electorally alongside the consecration of the Ram mandir as it will be used  as a ploy to corner the Opposition about being pro-Muslim. A majority of Hindus would view it as the Party implementing its agenda.

Towards that end Assam’s Chief Minister Biswas avers he might copy paste Uttarakhand’s Bill while Gujarat unleashed its UCC genie November 2022 by setting up a committee to study its implementation and intends rolling it out pre-poll, the third State after Himachal and Goa already has a UCC regardless of religion, gender, caste. It has a common family law whereby all Hindus, Muslims and Christians are bound with the same law related to marriage, divorce, succession. 

However, some are wary UCC will impose a Hinduised code for all communities as it could include provisions regarding personal issues like marriage that are in line with Hindu customs but will legally force other communities to follow the same.

Legal experts are divided on whether a State has the power to bring about UCC. Some assert as issues like marriage, divorce, inheritance and property rights come under the Concurrent List, 52 subjects on which laws can be made by both Centre and States, State Governments have the power to impose it.

Not a few disagree as giving States the power to bring about UCC could pose a number of practical issues. Think. What if Gujarat has UCC and two people who get married there move to Rajasthan? Which law will they follow?

Besides, being a Directive Principle of State policy it is not enforceable. Notably, Article 47 directs the State to prohibit consumption of intoxicating drinks and drugs which are injurious to health. But alcohol is sold in most States and different States have different legal ages for drinking alcohol.

Arguably, what is it about the Code that makes politicians other than Hindutva Brigade see red? Why should UCC be viewed as anti-minority? If Hindu personal law can be modernized and a traditional Christian custom struck down as unconstitutional, why should Muslim personal law be treated as sacred? Should the State discriminate by caste and religion? 

Alas, over the years deliberate distortions of religion to suit narrow personal-political agendas and vote-banks have vitiated the country, obfuscating a crucial fact: Ambedkar advocated “optional” UCC. He made two observations.  One, Muslim Personal Law was not immutable and uniform throughout India.

Regrettably, in today’s politico-social reality Ambedkar’s advice is ignored and dismissed as utopian hypothesis and Article 44 remains a dead letter. Undoubtedly, both Hindus and Muslims have lost sight of their respective religions essentials, instead largely misled by bigots and fundamentalists. Worse, even the educated are speaking language barely distinguishable from that of Hindu-Muslim fundamentalists. Their stock answer to every critique: Religion is in danger.

Complicating matters there are too many religious practices and beliefs governed by personal laws, and unless we as a society are ready to give up everything that we are used to, then there can be a UCC. Think. Marriage, divorce, inheritance are not concepts that can be regulated strictly by uniform laws, because they are all part of a personal lifestyle which is interwoven within religious identity.

Certainly the path to UCC is sensitive and difficult but it must be taken. A beginning has to be made if the Constitution is to have any meaning. Discrimination cannot be justified on the grounds of traditions and customs. To establish equality the law that regulates population of a country should also be one. A common civil code will help the cause of national integration by removing desperate loyalties to laws, which have conflicting ideologies. 

What next? Ultimately, no community should be allowed to veto or block progressive legislation. Time now, to reject different laws for different communities, implement Article 44 and reform India.  

One cannot progress riding on past’s wheels. India needs uniform laws and should figure what is satisfactory to all groups. Criminal and commercial laws are basic, so there is little purpose behind common laws to appear as something else. It just partitions Indians on the premise of religion that should not happen in the 21st century. It is beyond endurance of sensitive minds to allow injustice to be suffered when it is so palpable. What gives? ---- INFA 

(Copyright, India News & Feature Alliance)

 

Jharkhand Drama: OATH DELAY, POACHING THREAT, By Insaf, 5 February 2024 Print E-mail

Round The States

New Delhi, 5 February 2024

Jharkhand Drama

OATH DELAY, POACHING THREAT

By Insaf 

High drama engulfs Jharkhand. The Champai Soren-led coalition government must win the trust vote on Monday, which looks certain, but not after guarding itself against BJP’s alleged attempts of ‘poaching’ some of its MLAs or indulging in now familiar horse-trading? This, as past week saw political twists and turns. On Wednesday, ED arrested JMM leader and then chief minister Hemant Soren in a money laundering and land mafia case. He resigned before ED took him and senior leader and aide of Shibhu Soren, Champai was named his successor. However, it took two days for Raj Bhavan to administer him oath, unlike Nitish Kumar, back with BJP in Bihar who was re-administered oath hours after breaking ties with RJD. 

Anxious over the delay, JMM-Congress-RJD alliance flew its MLAs (43 in 81-member Assembly) to Hyderabad, Congress-ruled Telangana soon after the swearing-in fearing poaching threat and chose to prove its majority within 48 hours instead of ‘10 days’ given. Predictably, lady luck shall be on Champai’s side given the ‘resort politics’, unlike his predecessor, wherein the Supreme Court refused to entertain Hemant’s writ petition and interfere with his arrest, “a well-orchestrated conspiracy” by Centre ahead of general elections and asked it to approach the High Court. When his lawyers persisted saying “We are dealing with a chief minister who has been arrested. See the evidence. This is not fair,”, the top court advised it was at liberty to seek expeditious listing of his petition before the Jharkhand HC.   Sooner the better.

*                                               *                                               *                                               *

Puja At Gyanvapi Mosque

Muslim organisations under umbrella of AIMPLB (All India Muslim Personal Law Board) are seeing red. following developments in mosque case. With Varanasi court allowing puja in the Gyanvapi mosque’s southern cellar and Allahabad High Court refusing interim stay, the Board said it would go up to Supreme Court. Said its President Maulana Rahmani: “The court (Varanasi) ruled in haste and other (Muslim) side wasn’t even given a chance to put arguments in detail. This has hurt minorities confidence in judiciary.” Jamiat Ulema-e-Hind President Maulana Madani said: “If such a big minority says it’s losing faith in judiciary, it’s not good for country.” Noting ‘nation’s dignity and impartiality of judicial system and administrative affairs being grossly compromised’ the group urged all constitutional officials to take timely notice of it.” While that’s uncertain, security was stepped up at the mosque on Friday for prayers as attendance was at its capacity. Shops in the city and nearby vicinity remained closed as mosque committee called for a shutdown. Growing tension needs to be nipped in the bud.   

*                                               *                                               *                                               *

‘Fraud & Forgery’ Poll

The Chandigarh Mayoral elections continue to be dogged by controversy. AAP-Congress bloc, confident of victory has alleged the polls were rigged by presiding officer Anil Masih. BJP  BJP candidate Manoj Sonkar won the top post with 16 votes of 35-member corporation, and bloc candidate Kuldeep Kumar got 12 votes, with Masih rejecting 8 votes as ‘invalid.’ Alleging  ‘complete fraud and forgery’, Kumar promptly petitioned Punjab & Haryana High Court seeking setting aside of poll; holding fresh polls under retired HC judge’s supervision; restraining Sonkar from his mayor’s functions and asking respondents to preserve/present before it entire poll process, including ballot papers’ record and videography. With the court refusing interim stay and issuing notices to Chandigarh administration, corporation, Masih and Sonkar, among others, to file replies within 3 weeks, Kumar approached Supreme Court for ‘urgent hearing’, challenging HC order ‘as the returning officer was caught on video smudging the ballots.” The court said it would consider it. Whoever said time is of the essence.

*                                               *                                               *                                               * 

Never Ending Woes

Delhi AAP’s woes are never ending. On Saturday last, a Delhi police crime branch team went to Chief Minister Arvind Kejriwal’s residence to serve him a notice regarding investigation over his claim that BJP was trying to buy AAP MLAs. But he refused to take it. At the same time, Kejriwal has refused to appear before the Enforcement Directorate, its fifth summon for questioning in Delhi excise policy scam. Recall, that he has termed these notices “illegal” and not in ‘consonance with the law’ and these be withdrawn. Indeed, AAP fears that the ED shall arrest the leader, as it has done in Manish Sisodia and Sanjay Singh’s case till now and the party would be at a loose end with general elections round the corner. Worse, AAP itself could be made party to the case and could face prospects of losing recognition by the Election Commission, though there hasn’t been such a case before it. The fear is not unfounded as developments in Jharkhand and the arrest of Hemant Soren ring warning bells. All eyes will be on far the cat and mouse game will be played out.   

*                                               *                                               *                                               * 

From Films To Politics

Tamil super star Vijay has decided to script a new role for himself. On Friday last, the 49-year-old actor announced the launch of his political party ‘Tamizhaga Vetri Kazhagam’ as people of Tamil Nadu, he said were yearning for a change. However, it will pan out slowly as he will neither be contesting nor supporting any party in ensuing Lok Sabha elections. The new role, from cinema to politics, is aimed at 2026 Assembly polls given his concern over “administrative deterioration, corruption and divisive politics.” ‘Thalapathy,' as he is addressed by his ardent fans, called for a people’s movement, as it can only usher in the much-needed political change –'a selfless, transparent, visionary and efficient administration that is free of corruption, and caste and religious differences.’ Dialogue oft heard. An application has been submitted to Election Commission for registration, following which policies, flag symbol, among others, would be planned. Will he succeed as MGR or Jayalalitha did or will his fate be like Rajnikanth and Kamal Hasan, time will tell. For will there be takers to his commitment:  “Politics is not just another profession, it’s a sacred service to the people…”---INFA 

(Copyright, India News & Feature Alliance)

FM Promises Golden Era: HI DEBT FUNDS Rs 47tr BUDGET, By Shivaji Sarkar, 3 February 2024 Print E-mail

Economic Highlights

New Delhi, 3 February 2024

FM Promises Golden Era

HI DEBT FUNDS Rs 47tr BUDGET

By Shivaji Sarkar 

It is a sparkling poll budget right from the President’s address of Draupadi Murmu harping on the economy, to Finance Minister Nirmala Sitharaman harping on the need to give hope to the people, attract investments, highest capital expenditure, focus on rural recovery with housing, post-harvest activities unveiling series of programmes for farmers, women, middle class and dream GDP growth of 7.3 per cent. 

The election emphasis was sharper in the President’s speech as she unfolded the narrative of space to the economy and the finance minister announced bringing a White Paper on mismanagement of the economy till 2014, which marks an era of one of the five fragile economies led by Congress-led UPA. It may also illustrate how it is becoming one of the top five economies. 

The President in her ceremonial address to the joint session of Parliament in the new building presented the government’s achievements over 10 years across a variety of areas, offering a glimpse into the issues the BJP-led NDA might focus ahead of the 2024 elections. “Since childhood we have been hearing the slogan of “Garibi Hatao” (Indira Gandhi’s plank in 1971), now for the first time in our lives, we are witnessing eradication of poverty on a massive scale” adding that the poor people, youth, women, and farmers would be the four ‘strong pillars’ of Viksit Bharat. 

Repeating the “four pillars”, Sitharaman stressed on the various programmes on the path to progress and growth. She repeatedly harped on all kinds of farming classes – farmers, fishermen and dairy developers, the potential voters. 

The interim budget is not without its focus to impress. It has large figures such as Rs 47.65 lakh crore expenditure (about Rs 3 lakh crore more than 2023-4), Rs 30.8 lakh crore revenue including Rs 26.06 lakh crore from taxes, capital expenditure outlay rise by 11.1 per cent to Rs 11,11,111 crore, 3.4 per cent of GDP, a 50-year-interest free innovation loan and foreign direct investment of $596 billion – twice the inflow during 2005-2014, the UPA period, inflow. 

But a matter of concern is its fiscal deficit and maturity of dated securities, long term bonds that are to mature and have to be repaid. Though technically fiscal deficit comes down to 5.1 per cent from last year’s 5.8 per cent, she said gross and net borrowings through dated securities would be Rs 14.25 and 11.75 lakh crore. Total debt, external and internal, at Rs 168.72 lakh crore on 31 March 2024 is set to rise to 183.67 lakh crore. Outstanding debt has increased by Rs 15 lakh crore entailing the higher interest liabilities. 

One interesting factor is the technicality in economic terms, and she is right. Debt is earning and boosts GDP. The Finance Ministry so far has never reneged on its repayment commitments. The debt burden seems higher than revenue earnings. 

The finance minister has cut Rs 32000 crore subsidies in food, fertiliser and petroleum. The food subsidy cut comes amid the rising minimum support prices. It banks on reduction of numbers of beneficiaries following Adhar linkages. The allocation to MNREGA, however, is raised to Rs 86000 crore from Rs 60000 crore of the current fiscal.

Outgo to States as their share of revenue is Rs 22.22 lakh crore. Interest payment liability has been budgeted at Rs 11.90 lakh crore, 10.18 per cent more than 2023-24. The innovation funding as interest free loans for 50 years may be reviewed. The timeframe is too long though and may give a psychological edge. 

Sitharaman has not announced any concession on the tax front. The highest income tax rates remain at 39 per cent while corporate tax remains at 22 per cent and a new venture 15 per cent. Her core supporters are critical as she ignored the “middle class” facing high cumulative inflation of 27.5 per cent in five years at the rate of Reserve Bank’s India’s 5.5 per cent a year. One comment is interesting. It says, “We are clearly not a vote bank that needs to be appeased”. 

Expectedly her focus is on climate, farmers, agriculture growth and other measures that would immensely improve the conditions of the people as per the principle of ‘Reform, Perform and Transform’ and goes on to include MSMEs, aspirational districts, the Eastern region, and its people – Bihar and West Bengal, key electoral targets! Other than the PM housing for rural area, for the first time she mentioned housing for the middle class “living in rented houses, or slums, chawls and unauthorised colonies” to buy or build their own houses. 

Along with are mentioned agriculture and food processing to employ 10 lakh persons, post-harvest activities including aggregation, modern storage, supply chains and marketing, intense dairy development, setting up of fisheries department to boost Matsya Sampada, five aquatic parks and sea food exports. Also announced was the Atmanirbhar Oilseeds Abhiyan. The premise is that these sectors would transform critical sectors and please the crucial electorate in the farm sector in various parts of the country. However, difference of farmgate prices and high retail for consumers has yet to be bridged. 

Women have been wooed in different ways. A laudable scheme of course is vaccination for girls in age group of 9 to 14 for prevention of cervical cancer. Similarly, maternal and child health care is being brought under one comprehensive programme. Anganvadis are upgraded as centres for nutrition delivery, early childhood care and development. Ayushman Bharat benefits are being extended to all Asha, Anganvadi and helpers. It is expected to incentivise the grassroot workers. 

Overall health has got Rs 1095 crore more at Rs 90,170 crore and education Rs 13000 crore at Rs 1.25 lakh crore. The budget also effects cut in Rs 32000 crore subsidies in food, fertiliser and petroleum. 

The government is adhering to the fiscal glide path, retaining the capex focus offering as much as trillion rupees in 50-year interest-free loans to private players to take up scientific research. The finance minister is buoyant on consumer confidence and has subtle satisfaction of inflation being in the 2 to 6 per cent range even though the RBI has been insisting on 4 per cent target for stabilising the economy. 

The government’s growth strategy seems to be one that will kickstart a virtual cycle while guarding against fiscal slippage, in view of international war situations. The budget has many promises making good noises, but one only hopes that the final July budget would be different.---INFA 

(Copyright, India News & Feature Alliance)

 

Macron & Modi: SYMBOLISM & SUBSTANCE, By Prof. (Dr.) D.K. Giri, 2 February 2024 Print E-mail

Round The World

New Delhi, 2 February 2024

Macron & Modi

SYMBOLISM & SUBSTANCE

By Prof. (Dr.) D.K. Giri

(Secretary General, Assn for Democratic Socialism) 

French President Emanuel Macron was the Chief Guest on the 75th Republic Day celebration of India, stepping in for American President Joe Biden, who had declined the invitation. In addition to growing proximity between France and India, Macron was perhaps reciprocating Prime Minister Narendra Modi’s presence at the Bastille Day celebration in Paris, on 14 July last year. Macron’s last-minute response to Modi’s invitation bespeaks French willingness to stand by India in symbolism as well as substance of India-France bilateralism. 

Interestingly, France, although a member of NATO as well as European Union, has been taking, at times, a strategic posture, independent of the United States. That is why it aligns with India’s ‘strategic autonomy’ in her foreign policy. New Delhi may not have common ground with USA and Russia, but it is on the same page with France. Modi-Macron interactions resulted in a joint statement that carries the convergence of perspectives like – condemnation of terror attack in Israel, the need for humanitarian assistance in Gaza and Ukraine, nuanced differences on the war in Ukraine, concerns over the attack in Red Sea, attitude towards Houthis and Hezbollah’s etc. 

What is of major interest is the reiteration of French support to the newly-planned India-Middle East-Europe Corridor (IMEC) during the G-20 Summit last September. Macron, once again, applauded the leadership of Modi, on successful conduct and conclusion of the Summit. Both leaders agreed that project IMEC would be of great strategic importance and would significantly enhance the potential and resilience of the flow of commerce and energy between India, the Middle East and Europe. To many observers, it is obvious that the proposed IMEC is an alternative to the Belt and Road Project of China. 

In the current volatile international political situation, France and India have decided to stand by each other. This is quite an encouraging development for both Paris and New Delhi as there is grave tension from Morocco to Iran, in South-East Asia due to Chinese hegemony. In South Asia, Beijing plans to encircle India by seducing her neighbours. China is ‘gobbling up’ Maldives inch-by-inch, having gripped Nepal, Bhutan, Bangladesh and Pakistan. Sri Lanka is resisting but as India is jittery, Colombo might also fall for China. For India to resist Chinese expansionism, it needs strong partners and France is proving to be one. Apparently, the French President instructed his officials in multiple sectors to allow India ‘no limit’ in accessing its technologies and know-how. 

Scanning the agreements arrived at during Macron’s visit, there were number of deals done. In principle, France decided to support India in developing top-of-the-line defence platforms such as fighter aircraft engines, nuclear attack submarines, underwater drones, all of which are to be locally made. The idea is to make India self-reliant with a robust industrial base. A Letter of Intent on defence partnership was signed between Union Ministry of Defence and the Ministry of the Armed Forces of France. Another unprecedented defence agreement for Space, which has not been reported widely, was signed between the two countries. 

From the available information, as President Macron was at the ‘At home’ reception in Rashtrapati Bhawan, this important deal was signed by the French Defence Minister Sebastian Locornu and India’s National Security Advisor Ajit Doval on 26 January. This agreement will facilitate protection of communication and surveillance satellites and will make the battlefield more transparent in air, land and sea. This agreement will also help develop and launch military satellites to protect the national security of both countries. Moreover, this will not only protect the space assets of India but track the movement of adversaries. Similarly, another important agreement was signed for South-West Indian Ocean. This will build on joint surveillance missions carried out from the French Island territory of La Reunion. 

More important for New Delhi, it was decided to jointly manufacture in India and to export the products to third countries. As an example of collaboration in third countries, it was decided to set up a solar academy in Senegal under the star-C programme of international programme of International Solar Alliance, which was primarily jointly created by India and France. Overall, in industrial defence cooperation, both countries would co-design, co-develop and co-produce defence hardware for the air, land and the sea. 

A Memorandum of Agreement between Tata Advanced Systems Ltd (TASL) and Airbus was signed to set up an assembly of civilian helicopters in India. A Declaration of Intent was signed between Union Ministry of Health and Family Welfare and the Ministry of Labour and Solidarity of France for cooperation in the field of health and medicine. There was a renewal of agreement between the Union Ministry of Housing and Urban Affairs and the Ministry of Ecological Transition and Territorial Cohesion of France on the cooperation in the field of sustainable urban development. 

For Indian students, good news is in store. President Macron declared that he would like to have 30,000 Indian students by 2030. He said, “When this target is met, I will be the happiest President”. There would be special Classes Internationales for Indian students to learn French, necessary for admission into various colleges and universities. Macron said that this was a new initiative called French for All, French for Better Future. France will continue to offer scholarships to meritorious Indian students to be able to study there. So far, India is the largest beneficiary of French scholarships. Furthermore, France will offer five-year short stay Schengen Visa for alumni of French educational institutions. 

Modi spread a red carpet for Macron by receiving him personally in Jaipur and asking his Foreign Minister to accompany Macron from his arrival to departure. Macron landed in Jaipur and was taken to Jantar Mantar, a world heritage site since 2010. Modi and Macron had tea at a Jaipur teal stall on 25 January, where Macron paid for it by using the UPI. Both had a road show from Jantar Mantar to Sanganeri state with a stopover at Hawa Mahal. Macron was impressed by the huge turnout of people to greet them as well as the pro-incumbency of Modi government weeks before the elections. 

Overall, Macron’s visit was a success from the Indian point of view as well as for Macron who is trying to re-establish his political popularity after a shaky start to his second term. The reception and the publicity he got from India may stand in good stead for him back home. However, a closure look at the two-day visit of the French President shows a lot of symbolism as well as some substance. Interestingly, quite a few observers argue that any warmth and goodwill coming India’s way is a function of the defence deals that India makes with those countries. France is India’s second largest arm supplier and of course, has been the closest partner in Europe. 

While there may be multiple interpretations of India-French relations including the latest visit by French President, which, in fact, is the third one by Macron, France is a solid partner of India. At the end of the day that is what should count for New Delhi in its undeclared rivalry with Beijing. ---INFA 

(Copyright, India News & Feature Alliance)

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