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Surjit Bhalla announces his resignation from PM’s Economic Advisory Council

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Surjit Bhalla announces his resignation from PM’s Economic Advisory Council

Surjit Bhalla has quit the Economic Advisory Council (EAC) to Prime Minister Narendra Modi earlier this month, he said on microblogging website Twitter today (Tuesday, Dec 11).

The announcement comes a day after Reserve Bank of India (RBI) Governor Urjit Patel’s sudden resignation following a prolonged spat with Narendra Modi government over the central bank’s autonomy and tussle over its reserves which the government wanted handed over to itself.

This makes it an unprecedented tally of five economists quitting: a dubious distinction for Modi government. Apart from the two above, the others are: Arvind Subramanian who was chief economic advisor, Arvind Pangariya who was vice chairman of Niti Ayog, and Raghuram Rajan who was RBI governor before Urjit Patel.

Announcing his resignation, Bhalla did not mention reasons for his leaving.

In the Twitter post about an election forecast article published in the Indian Express, Bhalla described his credentials as contributing editor, Indian Express, and consultant at Network18 Group. “I resigned as part-time member PMEAC on 1 December,” said his post.

Bhalla explained in a subsequent twitter post that he left the EAC because of other work commitments. “…I resigned from the EAC-PM and the reasons were also given – consultancy with CNN IBN and work on a book about Indian elections since 1952 and my resignation was effective 1 December when I joined CNN IBN,” said Bhalla.

Bhalla’s resignation was reported to have been accepted.

He was appointed as a member to PMEAC which is a non-constitutional, non-permanent and independent body constituted to give economic advice to the Government of India, specifically to the Prime Minister. The council is headed by another noted economist Bibek Debroy.

Bhalla, a Contributing Editor with The Indian Express IE), has been critical of the RBI keeping interest rates elevated and overestimating inflation expectations, said a report in IE.

In his column on December 1 on the recently released back series data on Gross Domestic Product, Bhalla, wrote: “I, along with others, also found it inappropriate for NITI Aayog to be directly involved in the presentation of statistical data by the CSO (Central Statistics Office).”

The data was released by the NITI Aayog and the CSO in a joint press conference on November 28, in which the government revised down the GDP growth rates for the 2006-2012 period. The new data showed that growth during the NDA government was higher than in the UPA period. Many economists criticised presence of NITI Aayog, which is chaired by Prime Minister, in the process of release of the GDP numbers. They argued that calculation of GDP back series being a technical exercise should have best left to the CSO.

Bhalla, who holds a PhD in economics from Princeton University, is also a senior analyst at the Observatory Group, a New York-based advisory firm. In his book ‘The New Wealth of Nations’ published last year, Bhalla argued that income inequality was declining in the world due to the spread of education.

India News

Lok Sabha clears bill to levy cess on pan masala and similar goods for health, security funding

The Lok Sabha has passed a bill to impose a cess on pan masala manufacturing units, aiming to create a dedicated revenue source for public health and national security initiatives.

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Nirmala Sitharaman

The Lok Sabha has approved the Health Security se National Security Cess Bill, 2025, paving the way for a new cess on pan masala manufacturing units. The legislation aims to generate dedicated funds for strengthening national security and improving public health, both areas identified as critical national priorities.

Bill aims to create predictable funding stream

Finance Minister Nirmala Sitharaman, responding to the debate before the bill was passed by voice vote, said that the cess will be shared with states because public health falls under the state list.

The new cess will be applied over and above the GST, based on production capacity and machinery used in units manufacturing pan masala and similar goods. The minister clarified that this cess will not affect GST revenue, and that pan masala already attracts the maximum GST slab of 40 per cent.

According to the bill text, the objective is to build a “dedicated and predictable resource stream” to support expenditure related to health and national security.

Sitharaman also mentioned that cess collection as a percentage of gross total revenue currently stands at 6.1 per cent, lower than the 7 per cent average between 2010 and 2014.

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India News

Simone Tata passes away at 95: A look at the visionary who shaped Lakme and modern retail

Simone Tata, the pioneering business leader who built Lakme and helped shape India’s modern retail sector, passed away at 95. Here’s a look at her legacy.

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simone tata

Ratan Tata’s stepmother and celebrated business leader Simone Tata passed away on December 5, 2025, at the age of 95. Known for her pioneering role in building Lakme and transforming India’s retail landscape, she leaves behind a remarkable legacy that redefined Indian consumer culture.

A legacy that shaped Indian business

Simone Tata, born in Geneva in 1930, first came to India at the age of 23. Two years later, in 1955, she married Naval H. Tata and gradually became an integral part of the Tata family’s business vision. Her journey with the Tata Group began in the 1960s, when she was appointed to Lakme—then under Tata Oil Mills.

Under her leadership, Lakme quickly grew into one of India’s most trusted cosmetic brands. She rose to the position of managing director and later chairperson, introducing global formulations and modernising beauty products for the Indian market. Lakme’s rise was also rooted in a strong national vision—launched on former Prime Minister Jawaharlal Nehru’s suggestion to reduce foreign exchange spent on imported makeup.

Transforming retail through Trent and Westside

After Lakme was sold to Hindustan Lever Limited in 1966, Simone moved to Trent, where she helped build one of India’s earliest modern retail chains. This later gave birth to Westside, a brand that has become synonymous with contemporary Indian shopping culture.

She also played a key role in philanthropic initiatives, guiding organisations such as the Sir Ratan Tata Institute and supporting cultural and children-focused foundations.

Family, personal life and final farewell

Simone Tata is survived by her son Noel, daughter-in-law Aloo Mistry, and grandchildren Neville, Maya and Leah. She also drew public attention in recent years for being the only member of the Tata family to attend Cyrus Mistry’s funeral, despite the widely known strained ties between the families.

Her funeral will take place on Saturday morning at the Cathedral of the Holy Name Church in Colaba, Mumbai.

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India News

Centre orders probe into IndiGo crisis, expects normal flight operations in three days

Amid record cancellations by IndiGo, the Centre has ordered a high-level inquiry and expects flight schedules to stabilise by Saturday, with full normalcy in three days.

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indigo

The Centre has initiated a high-level inquiry into the massive disruption of IndiGo’s operations, with the government projecting that flight schedules will begin stabilising by Saturday and full normalisation is expected within three days. The announcement comes as cancellations by the airline crossed 500 for the second consecutive day, severely impacting passengers across major airports.

Civil Aviation Minister Ram Mohan Naidu said the government has directed urgent measures to ensure swift restoration of services. Within minutes of his statement, the aviation regulator DGCA announced the formation of a four-member committee to examine the circumstances leading to the delays and cancellations.

DGCA forms committee as cancellations spark scrutiny

The DGCA said IndiGo was given sufficient time to implement revised Flight Duty Time Limitations (FDTL), yet the airline recorded the highest number of cancellations in November. The regulator added that the pattern suggested gaps in the carrier’s internal oversight and preparedness, warranting an independent probe.

The committee will review the sequence of events that triggered disruptions and recommend measures to prevent a recurrence.

Flight duty rules relaxed; minister defends move

Amid criticism from the Opposition and experts, the DGCA temporarily suspended certain FDTL rules, increasing pilot duty limits from 12 to 14 hours. The changes were widely questioned, with allegations that the government was yielding to pressure from IndiGo.

Naidu defended the decision, stating the move was taken solely to safeguard passengers and that safety standards would not be compromised.
He reiterated that passenger care and convenience remain the top priority.

Assurance of refunds, real-time updates, and support

Highlighting steps taken to ease passenger distress, the minister said airlines must:

  • Provide accurate, real-time updates before travellers leave for airports
  • Initiate automatic refunds for cancelled flights without requiring follow-ups
  • Arrange hotel accommodation for passengers stranded for extended periods

Senior citizens and persons with disabilities have been accorded special priority, including access to lounges and additional assistance. Refreshments and essential services are to be provided to all affected travellers.

Inquiry to determine accountability

The government said the high-level probe will identify what went wrong at IndiGo, establish responsibility, and recommend systemic corrections to ensure such disruptions do not occur again.

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