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Rafale deal: Congress launches fresh attack, alleges crony capitalism to favour Reliance

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Rafale deal

The Congress on Friday came out with a fresh set of papers accusing the Modi government of deceiving the country and saying that Defence Minister Nirmala Sitharaman “misled” the nation on the Rafale fighter aircraft deal.

The Congress focused on award of offset contract to Reliance Defence Ltd and alleged that something was amiss in grant of the contract.

Although the offset contract given to the Dassault Reliance Aerospace Limited – a joint venture between RDL and Dassault – is worth Rs 30,000 crore, the Congress released RIL’s papers which claimed that “a consequent Lifecycle Cost Contract” of Rs 1 lakh crore was also awarded to it.

Congress president Rahul Gandhi tweeted on Friday evening, “Dear Trolls, I apologise for my earlier tweet in which I stated Mr 56’s friend’s JV, received 4 Billion US$’s of “offset” contracts. I forgot to add the 16 Billion US$ RAFALE “lifecycle” contract. 20 BILLION US$, is the actual benefit. So Sorry!! #130000CroreRafaleScam”

AICC communication department head Randeep Surjewala said, “What is surprising is that one of the biggest defence offset contracts went to a company, Reliance Defence Ltd Reliance Defence was incorporated on March 28, 2015, just 12 days before the announcement of purchase of 36 Rafale aircrafts by PM in France on 10th April, 2015. The company Reliance Defence Ltd. did not have the license to manufacture fighter aircrafts at that time.”

Surjewala placed records of the ministry of corporate affairs, RIL’s press releases and company records to make his point that the Modi government had gifted the Anil Ambani-owned company a huge defence contract despite the fact that it neither had any industry experience nor any required assets, said a report in The Wire.

He highlighted a separate contract around the same time of the Rafale deal in which RDL’s sister company, Reliance Aerostructure Ltd benefitted. “Another subsidiary of RIL, Reliance Aerostructure Ltd (RAL), was given the license to manufacture fighter aircraft in 2016 around the same time when RDL got the offset contract in the Rafale deal.”

Surjewala claimed that RAL, which was “given the industrial licence to manufacture fighter aircraft” on February 22, 2016, did not own any land or building when it applied for the licence, reported The Indian Express (IE).

“In its licence application for manufacturing fighter aircraft, Reliance Aerostructure Ltd has given its address and location as ‘Survey No. 589, Taluka Jafrabad, Village Lunsapur, District Amreli, Gujarat’. At that time, these premises were not owned by Reliance Aerostructure. The address belonged to Pipavav Defence and Offshore Engineering Co Ltd,” the Congress leader was quoted by IE as saying.

Surjewala said 2015-16 annual report of the Reliance Group itself says that “acquisition of Pipavav Defence and Offshore Engineering Co. was successfully completed in January 2016.”

“Even on the date of license i.e 22.02.2016, Reliance Aerostructure Ltd. did not own the land or building at the aforesaid address. It was Reliance Defence Ltd. that acquired the company only on 18.01.2016 and name was then changed to Reliance Defence and Engineering Limited,” Surjewala was quoted as saying by The Wire.

He cited the company’s annual report 2015-16, page number 5 to substantiate his allegation. Similarly, he said even RAL was allotted 104 acres in Mihan SEZ, Nagpur, Maharashtra on 28 August 2015 for around Rs 63 crore, which was paid only in July, 2017. “So when the RAL was awarded the license to manufacture fighter aircrafts, it technically had no assets of its own. Is the Modi government serious about our country’s security?”

Surjewala also alleged that there were discrepancies in the Defence Ministry’s statement and the annual report of Dassault Aviation. The defence ministry’s statement issued on February 7, 2018 claimed “no Indian offset partner for the 2016 deal for 36 Rafale aircraft has been selected by the vendor [DA]”

But, the 2016 annual report of Dassault Aviation clearly stated Anil Ambani-led Reliance Group will “manage its offsets provided for in the country by the Make in India initiative”.

The Congress further alleged that on February 16, 2017, a press release from Reliance Defence Ltd., the joint venture partner, put the value of the deal at €7.87 billion, or approximately Rs. 60,000 crore, despite the Modi government claiming it cannot disclose it owing to a secrecy clause.

He also quoted a “investor presentation” slide of Reliance Infrastructure which talks about the joint-venture with Dassault Aviation. It talks about the offset contract worth Rs 30,000 crore, and that “life cycle opportunity (is) estimated at Rs 1 lakh crore over 50 years”.

Targeting defence minister Nirmala Sitharaman, Surjewala said that the ministry of defence had issued a press release on February, 7, 2018, which said, “…no Indian Offset Partner for the 2016 deal for 36 Rafale Aircrafts has been so far selected by the vendor (Dassault Aviation) because as per the applicable guidelines, Dassault Aviation is free to select the Indian Offset Partners and provide their details at the time of seeking offset credits, or one year prior to discharge of offset obligation”.

However, he said that RIL had issued a press release a year earlier on February 16, 2017, to announce that it had secured the offset contract in the Rafale deal. “Even Dassault Aviation in its Annual Report 2016-17 has claimed that ‘offset contract’ is being executed by Reliance.” Surjewala said.

Surjewala asked, “The simple question is, who is lying: the Defence Minister or Reliance/Dassault Aviation?”

He further said that if Dassault was free to choose its offset partner, as the defence ministry claims, it would be a clear violation of guidelines in such matters.

He said that the Defence Offset Contract Guidelines issued by the Defence Offset Management Wing (DOMW) of the Defence Ministry stipulates that all offset proposals will be approved by Defence Minister and approved by the Acquisition Manager. The guidelines, he said, also says the vender will submit six-monthly reports and that an officer of DOMW may conduct an audit to verify the actual status of implementation.

“The defence offset guideline warrant and mandate that every offset contract has to be approved by the Defence Minister. Did she approve it? If she did not approve it, how did she permit Dassault Aviation to handover the contract to a private company superseding a Government company? It only shows that the national interest was being compromised by the Prime Minister and Defence Minister of India,” he said.

The Congress alleged that the Modi government cancelled the UPA government’s deal that mandated government-owned Hindustan Aeronautics Ltd. only to suit a private company.

“The culture of crony capitalism is the DNA of the Modi government. It is truer than ever in case of the Rs. 60,145 crore Rafale deal …. Does the Prime Minister represent the interest of private companies and private industrial houses or is his duty and obligation to protect an existing signed contract between an experienced government company,” asked Surjewala.

India News

Union Budget 2026: What the middle class gains despite no income tax slab changes

Union Budget 2026 retains income tax slabs but offers indirect relief to the middle class through TCS cuts, simpler tax filing, cheaper medicines and higher job-creating expenditure.

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Union Budget 2026: what the middle class gains despite no income tax slab changes

Union Budget 2026 may not have delivered direct income tax relief to salaried taxpayers, but the government has introduced several indirect measures aimed at easing financial pressure on middle-class households.

While tax slabs remain unchanged, the Budget outlines steps to simplify compliance, reduce taxes on overseas spending, lower the cost of essential medicines, and support job creation through higher public spending.

Income tax status quo continues

The government has retained the existing income tax framework for individuals. Annual income up to Rs 12 lakh continues to remain tax-free, and with the Rs 75,000 standard deduction, effective tax-free income rises to Rs 12.75 lakh.

No changes have been announced in income tax slabs, signalling policy continuity rather than immediate relief for salaried taxpayers.

Compliance relief and tax rationalisation measures

A key focus of Budget 2026 is reducing compliance burdens and improving the taxpayer experience.

The government has proposed a reduction in Tax Collected at Source (TCS) on overseas tour programme packages to 2%, down from the earlier rates of 5% and 20%. TCS under the Liberalised Remittance Scheme (LRS) for education and medical expenses has also been cut to 2% from 5%, providing relief to families sending money abroad for essential purposes.

To ease return filing pressure, timelines have been staggered. Individual taxpayers filing ITR-1 and ITR-2 can continue to file returns till July 31, while non-audit businesses and trusts will now get time till August 31.

Protection for small investors

The Budget proposes taxing all share buybacks as capital gains instead of dividends, a move aimed at protecting minority retail investors.

In another relief measure, interest awarded by Motor Accident Claims Tribunal (MACT) to individuals will be exempt from income tax, and the applicable TDS will be removed.

A single-window system will also be introduced for submitting Form 15G and Form 15H through depositories for TDS on dividends and interest, simplifying compliance for senior citizens and small savers.

Cheaper medicines and essential products

Healthcare costs may ease slightly as the government has announced duty exemptions on about 17 cancer medicines. Personal imports of medicines for seven rare diseases will also be allowed duty-free.

In addition, customs duty relief has been extended to critical components used in the manufacture of microwave ovens, television equipment, leather goods and footwear, which could help moderate consumer prices.

Job creation through higher spending

The government has raised capital expenditure to over Rs 12 lakh crore, with allocations for railways, tourism, logistics and technology sectors. These investments are expected to support employment generation and long-term economic activity, indirectly benefiting middle-class households.

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India News

Budget 2026 balances high capex and growth, says PM Modi

Prime Minister Narendra Modi said Union Budget 2026 strikes a balance between high capital expenditure and strong growth while reinforcing reforms and fiscal discipline.

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Prime Minister Narendra Modi on Saturday said the Union Budget 2026 strikes a fine balance between high capital expenditure and sustained economic growth, calling it a roadmap for long-term national development.

Speaking after Finance Minister Nirmala Sitharaman presented her ninth consecutive Budget, the prime minister said the proposals reflect a vision of trust-based governance and a human-centric economic framework. He added that India is not just focused on being the fastest-growing economy but is working towards becoming the world’s third-largest economy.

PM Modi said the Budget also reinforces India’s strong global standing and will provide fresh momentum to the country’s reform agenda. According to him, the measures announced will energise what he described as India’s “reform express”.

The prime minister highlighted the Budget’s focus on promoting tourism in the northeastern region, noting that it would create new opportunities and support regional development.

On fiscal management, the finance minister retained the states’ share in the divisible pool of central taxes at 41 per cent. She announced that Rs 1.4 lakh crore has been provided to states as Finance Commission grants for 2026–27, in line with the recommendations of the commission.

The Finance Commission, chaired by Arvind Panagariya, had submitted its report to the President in November 2025 after consultations with states and Union Territories, several of which had sought a higher share.

Sitharaman pegged the fiscal deficit for 2026–27 at 4.3 per cent of GDP, lower than the revised estimate of 4.4 per cent for 2025–26. She also said the debt-to-GDP ratio is projected to decline to 55.6 per cent in 2026–27 from 56.1 per cent in the previous fiscal.

A gradual reduction in the debt burden will help free up resources for priority sectors by lowering interest outgo, the finance minister said.

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India News

India to build seven high-speed rail corridors, Finance Minister announces

Union Budget 2026-27 unveiled seven high-speed rail corridors and a dedicated east-west freight corridor to boost sustainable transport and economic growth.

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India to build seven high-speed rail corridors, Finance Minister announces

Finance Minister Nirmala Sitharaman, presenting the Union Budget 2026-27 in Parliament on Sunday, announced that India will develop seven high-speed rail corridors connecting key cities across the country.

These corridors, described as ‘growth connectors’, aim to promote environmentally sustainable passenger transport systems. The proposed high-speed rail links will connect:

  • Mumbai and Pune
  • Hyderabad and Pune
  • Hyderabad and Bengaluru
  • Hyderabad and Chennai
  • Chennai and Bengaluru
  • Delhi and Varanasi
  • Varanasi and Siliguri

In addition to passenger rail, Sitharaman announced a dedicated east-west freight corridor connecting Dankuni in the east with Surat in the west. This initiative, along with the operationalisation of 22 new national waterways over the next five years, is intended to enhance multimodal transport and reduce logistics costs.

“These initiatives will strengthen freight movement and support sustainable cargo transportation,” the Finance Minister said.

The Budget also emphasizes infrastructure development in cities with populations over five lakh (Tier II and Tier III), which have emerged as key growth centres. Sitharaman further proposed a public capital expenditure of Rs 12.2 lakh crore for the financial year 2026-27.

She outlined that the Union Budget is guided by three core responsibilities—accelerating economic growth, fulfilling aspirations, and ensuring equitable access to resources for families, communities, and regions.

Describing the plans as part of a broader reform agenda, she added, “The ‘Reform Express’ is on its way.”

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