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The muddle of saffron socialism

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9 years ago

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Modi greets BJP leaders on the occasion of the swearing-in of Adityanath Yogi, the new UP CM

[vc_row][vc_column][vc_column_text]The Modi plan for New India is based on a guided economy

By Parsa Venkateshwar Rao Jr

The Congress party, the communists and others assumed that the pro-poor socialist agenda is theirs alone, and it is the weapon to be used against right-wing parties like the Bharatiya Janata Party (BJP). That is why Congress vice-president Rahul Gandhi as well as Communist Party of India-Marxist (CPI-M) general secretary Sitaram Yechury portray the BJP as anti-poor, pro-rich. But Prime Minister Narendra Modi has outflanked the traditional left-of-centre and left parties by appropriating the pro-poor, anti-rich slogan for his party, and going by the electoral success in Uttar Pradesh, it seems that it has worked. Modi has successfully forged socialism with BJP features and turned it into the standard of the party.

Modi has not invented socialism of the right. He has taken the idea from BJP/Jan Sangh ideologue Deen Dayal Upadhyay, from the rhetorical formulations of Swami Vivekananda about the need to serve the poor, apart from Gandhi’s idea of the rich being the custodians of the riches which are to be used for the poor. But he has consistently harped on his commitment and that of his party for the welfare of the poor. He has projected demonetisation as pro-poor-anti-rich, that is illicitly rich, measure. It remains a debatable point whether UP poll verdict is an endorsement of demonetisation as it is being made out to be in a knee-jerk fashion. The intent of the UP voter in voting overwhelmingly in favour of BJP is quite complex and it cannot be inferred as an approval of the nearly three-year Modi government at the Centre.  Demonetisation remains a wrong economic decision and an electoral victory cannot make it right. All that one can say about demonetisation and the UP electoral outcome, if there is any connection between the two, is that bad economics makes for good politics. Modi’s jibes against the critics of the measure will remain just that, jibes, and they do not alter unsoundness of the measure. As a matter of fact, it is the true measure of populism that it seeks vindication not in terms of its own inherent logic but in extraneous factor.

It will be difficult to label BJP as a Hindutva party alone any more, though it remains a Hindutva party in terms of realpolitik. It has become a populist party, and it is right-wing populism at that because it combines nationalism with egalitarianism of a kind. The dreaded word, national socialism, has to be used despite its negative connotations derived from the German experience with the Nazis, the National Socialists. Speaking at the victory celebration do at the party headquarters in New Delhi on Sunday (March 12) evening, Modi put forward a convoluted argument. He declared that the poor are not looking for sops but they want the state to provide them the opportunity to make their own fortune. The converse of the theorem is that once the poor are able to get on and get off on their own, the middle class need not carry the burden of national well-being. The underlying theme is quite evident: the tax-paying middle class is carrying the weight of welfare measures and subsidies.

If this is the rhetorical flourish of the prime minister, the thinking of Modi government at the policy level is to create a welfare state, which is administered by private entrepreneurs and not by the state, and which is supported by increased tax collections. The prime minister maintains a conspicuous silence on the tax booty, while Finance Minister Arun Jaitley is clearly looking for higher tax collections in order to finance welfare measures. The plan will come under stress if the economy does not grow, and tax buoyancy will disappear. The non-performing assets (NPAs) of the public sector banks are a sign of the stress in the financial system. Apart from the evils of crony capitalism that is behind part of the NPA story, there are issues of how the financial system is to bankroll the engines of economic growth. It can be seen in the last three years that public investment is carrying the burden of keeping the growth rate ticking, and there is no sign of private investment picking up. And then there are major problems involved in empowering the poor through educating them, skilling them, and by prodding investment that will create jobs for them. The economy is not at the beck and call of a leader or his party. And even the poor have their own ideas as to how they want to get ahead in their lives. They do not want a paternalist state to make them walk on the straight and narrow path of what the policy-makers believe to be the right path.  It is on the rocks of unbound reality that the best laid plans of the politicians break.

Modi’s vision of New India envisages a national economy managed by the state through private sector that will provide full employment. It is a socialist vision of an indirectly planned economy. It poses a challenge to those who hated the Congress variant of socialism, and despite the market meltdown of the last decade have not lost faith in the ideal of a free market economy. One of the reasons that pro-free marketers supported the BJP was their hope that the right-wing party will get rid the country of the state-controlled economy spawned by the Nehruvian socialists. They will now have to come to terms with the Modi plan of making the free market a handmaid of national power and pride and for serving the needs of the poor. Even if they now decide to become the foot soldiers of BJP’s nationalist socialism, it does not alter the ominous truth established by Friedrich Hayek in his 1944 book, Road to Serfdom. Socialism of any kind comes at the price of liberty.

If socialism as such has turned out to be a failed system, and it can now be argued that Nehruvian socialism could not have succeeded with the best of intentions, then it is inevitable that the epitaph for saffron socialism would have to be written as well, and that sooner than later. [/vc_column_text][/vc_column][/vc_row]

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India and Russia vow to walk together against terrorism, reaffirm strategic partnership

PM Modi and President Putin reaffirm India-Russia unity against terrorism, deepen energy and trade cooperation, and discuss peace efforts amid the Ukraine conflict.

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3 hours ago

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December 5, 2025

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Prime Minister Narendra Modi and Russian President Vladimir Putin on Friday underlined that India and Russia “walk together in the fight against terrorism,” reinforcing a decades-old strategic partnership that remains steady amid global geopolitical churn. The leaders issued the joint statement following talks at Hyderabad House in Delhi, where they also announced steps to boost trade, economic cooperation, and energy collaboration.

India-Russia stand firm on counter-terror cooperation

PM Modi described President Putin as a “dear friend” and highlighted Moscow’s consistent support to India on counter-terror efforts. Russia had earlier strongly condemned the terror attack in Jammu and Kashmir’s Pahalgam, allegedly linked to Pakistan-based Jaish-e-Mohammed, and reiterated solidarity with India’s fight against terrorism in all forms.

The joint remarks emphasized that the bilateral friendship, rooted in trust and mutual respect, has remained resilient for decades despite global challenges.

Focus on energy, trade and use of national currencies

A key highlight of the engagement was Russia reaffirming “uninterrupted shipments” of fuel to India. PM Modi expressed gratitude for Russia’s commitment, noting energy cooperation as a crucial pillar of the relationship. While he did not specifically mention oil purchases, given ongoing Western pressure, he emphasised cooperation in civil nuclear and clean energy.

The two countries also discussed expanding economic ties, including a possible free trade agreement. President Putin said bilateral trade was being targeted to reach USD 100 billion, and acknowledged progress toward using national currencies for payments — a remark expected to draw global attention.

Putin shares peace plan insights on Ukraine conflict

Putin briefed the Prime Minister on Russia’s perspective for a peaceful resolution to the ongoing Ukraine war and appreciated India’s continued role as a “champion of peace.” PM Modi reiterated India’s consistent position on dialogue and diplomacy.

Agreements across jobs, health, shipping and minerals

Officials exchanged multiple agreements covering employment mobility, health, shipping, chemicals and cooperation in critical minerals — further broadening the strategic footprint of the partnership.

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RBI cuts repo rate to 5.25%, paving the way for cheaper loans

The RBI has cut the repo rate to 5.25%, aiming to support growth as inflation softens. The central bank also raised GDP projections and announced liquidity-boosting measures.

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8 hours ago

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December 5, 2025

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Reserve Bank of India

The Reserve Bank of India (RBI) reduced the key repo rate by 25 basis points to 5.25% on Thursday, signalling relief for borrowers as banks are expected to offer lower EMIs on home and vehicle loans. Governor Sanjay Malhotra announced the move after the conclusion of the three-day Monetary Policy Committee (MPC) meeting.

RBI prioritises growth as inflation eases

Malhotra said the decision was unanimous, with the central bank choosing to focus on supporting economic momentum despite concerns over a weak rupee. The repo rate was earlier cut in June from 6% to 5.5% amid easing inflation trends.

The RBI now projects Consumer Price Index (CPI) inflation at 2% for FY2025-26, significantly softer than earlier estimates. For the first quarter of FY2026-27, inflation is expected at 3.9%, lower than the previous projection. The governor noted that rising precious metal prices may contribute to the headline CPI, but overall risks to inflation remain balanced.

GDP outlook strengthened

In a strong upward revision, the central bank increased the GDP forecast for the current financial year to 7.3%, previously estimated at 6.8%. Growth for the October–December quarter has also been revised to 6.7%.

The last quarter registered a six-quarter high expansion of 8.2%, reflecting resilient demand and steady credit flow.

“The growth-inflation balance continues to offer policy space,” Malhotra said, reiterating that the RBI’s stance remains neutral.

Other key decisions

Alongside the repo rate cut, the RBI announced adjustments to key policy corridors:

  • Standing Deposit Facility (SDF): 5%
  • Marginal Standing Facility (MSF): 5.5%

To improve liquidity and strengthen monetary transmission, the RBI will conduct forex swaps and purchase ₹1 lakh crore worth of government bonds through Open Market Operations (OMO).

RBI reviews a challenging year

Reflecting on 2025, Malhotra said the year delivered strong growth and moderate inflation even as global trade and geopolitical uncertainties persisted. He added that bank credit and retail lending remained healthy, providing support to the economy.

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India News

IndiGo flight chaos deepens as over 500 services cancelled, passengers stranded for hours

Over 500 IndiGo flights were cancelled nationwide, leaving passengers stranded without food, clarity or their luggage as airports struggled to manage the disruption.

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8 hours ago

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December 5, 2025

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IndiGo flight

India’s largest airline continued to face massive operational breakdowns, triggering frustration among travellers at major airports across the country. From piles of unattended suitcases to passengers waiting over 12 hours without food or clarity, the disruption stretched into its fourth consecutive day.

Long delays, no communication leave passengers anguished

Several travellers at Delhi airport described the situation as “mental torture”, as thousands of unclaimed suitcases lay scattered across the terminal. Many slept on the floor, while others expressed anger over the lack of communication from airline staff.

One flier said he had been waiting for over 12 hours without any explanation: “Every time they say one-hour or two-hour delays. We were going to a wedding but don’t even have our luggage.”

A passenger in Hyderabad recounted a similar ordeal, saying the flight was delayed indefinitely with no food, water, or updates from the airline. At the airport, some travellers blocked an Air India flight in protest over the lack of arrangements.

Goa and Chennai airports also witnessed tense moments. Videos from Goa showed fliers shouting at IndiGo staff as police attempted to calm the situation. At Chennai, CISF denied entry to IndiGo passengers due to heavy congestion.

Major metro airports impacted; cascading cancellations nationwide

Flight cancellations and delays were reported across multiple airports:

  • Over 200 flights were cancelled in Delhi
  • More than 100 each in Mumbai and Bengaluru
  • Around 90 in Hyderabad
  • Dozens more in Pune, Vishakhapatnam, Chennai and Bhopal

Pune airport stated that parking bay congestion worsened the situation, as several IndiGo aircraft remained grounded due to lack of crew. Other airlines continued operations without disruption.

Airport authorities said they had mobilised additional manpower for crowd control and passenger support.

IndiGo admits planning lapses, says more cancellations expected

The airline acknowledged a “misjudgment” in assessing crew requirements under revised night-duty norms, which it said created planning gaps. Winter weather and airport congestion further aggravated the crisis.

IndiGo informed the aviation ministry and DGCA that some regulatory changes—such as the shift in night-duty timings and a cap on night landings—have been rolled back temporarily to stabilise operations.

The airline warned that cancellations may continue for another two to three days, and from December 8, schedules will be trimmed to prevent further disruption.

In a message to employees, CEO Pieter Elbers said restoring punctuality would not be an “easy target”.

Airline issues apology amid nationwide frustration

In a late-night statement, IndiGo apologised to customers and industry partners, acknowledging the widespread inconvenience caused by the disruptions. The airline said all teams were working with authorities to bring operations back to normal.

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