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Shah defends demonetisation, says it expanded India’s formal economy

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[vc_row][vc_column][vc_column_text]BJP national president tells FICCI that dip in GDP growth to 5.7 per cent was due to “technical reasons”

At a time when Reserve Bank of India’s (RBI) report stating that 99 per cent of demonetised notes had been deposited with various banks has unleashed renewed criticism of Prime Minister Narendra Modi’s maverick move, BJP national president Amit Shah, on Saturday, pitched a new defence of noteban, asserting that it had expanded India’s “formal economy”.

Addressing an interactive session organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) in New Delhi on Saturday, Shah said: “I definitely believe that the formal economy has increased due to demonetisation. Money lying at various places is now part of the economy.”

Asserting that declaring Rs 500 and Rs 1000 notes as no longer legal tender was a “hard decision” taken to boost the Indian economy and that the BJP doesn’t link policy decisions with vote bank, Shah said: “We have taken some decisions for which we have faced severe criticism. But let me make one thing clear that BJP’s Narendra Modi government does not believe in taking decisions that just appear good to people, but it believes in taking decisions that are actually good for people.”

While Prime Minister Modi and his government may have also faced flak for offering different figures of new tax payers brought under the income tax net in the past three years – and especially since demonetisation – Shah didn’t shy away from giving his own numbers.

“Those people who are asking about the benefits of demonetisation, I would like to tell them that since independence, we were able to add only 3.7 crore in our tax payer base…In last three years, we have increased the number of taxpayers from 3.7 crore to 6.3 crore. This shows that our economy is growing, and our transparency is also growing, but for this, some of the difficulties have to be faced right now,” the BJP president said.

Shah, however, conceded that the BJP “may have faced” or could face in the future some “political losses” due to demonetisation but qualified his statement by saying that it was a risk that the party was willing to take “in the interest of the country”.

He also asked the business community to “encash” the “Brand India” built by the government globally and claimed that the NDA dispensation’s most significant contribution was that it had transformed the “scale of thinking“.

The Modi government was focusing on long-term goals rather than short-term gains, Shah said, adding that direct benefit transfers now reach 36 crore people from 8.5 crore in 2014 and saved over Rs 59,000 crore in subsidies. Earlier, this money would have disappeared due to corruption, he said.

Shah also played down the dip in the GDP growth rate to 5.7 per cent in the last quarter, saying it was due to some “technical reasons” and added it had gone up to 7.1 per cent after falling to 4.7 per cent in 2013-14 when the UPA was in power.

The BJP president also touched upon the issue of banks’ non-performing assets (NPAs), seen as a drag on the economy, saying the Modi government had inherited these bad loans and none of them happened during its tenure. It was a very “courageous move” of the Modi dispensation to ask banks to bring NPAs to their books, he said.

“The issue (of NPAs) is looked at politically. But I want to make it very clear that none of these loans which turned NPAs were offered during our government. Opposition targets us saying so many accounts have turned into NPAs. But not a single account is from our time. We have inherited it,” he said.

The Union government along with states had taken over 7,000 decisions to increase the ease of doing business, he said, adding: “Some critics of our government claim that development has stalled but I would like to tell them not to look at statistics but travel around to find development.”[/vc_column_text][/vc_column][/vc_row]

India News

Luthra brothers vanish after Goa fire tragedy, second property to be demolished

The Goa government will demolish a shack owned by Gaurav and Saurabh Luthra, who fled to Thailand hours after a fire at their nightclub killed 25 people. An Interpol Blue Corner Notice has been issued as the search intensifies.

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A beach shack linked to Gaurav and Saurabh Luthra — the proprietors of the Goa nightclub where 25 people were killed in a massive fire last week — is set to be demolished as authorities intensify action against the absconding brothers. The Goa Chief Minister’s office confirmed that the structure, operating under the name Romeo Lane in Vagator, will be brought down after 3 pm.

The demolition comes days after the nightclub Birch by Romeo Lane in Arpora turned into a death trap, with investigations now revealing severe safety lapses at the venue.

Brothers fled to Thailand hours after fire

According to police, the Luthra brothers boarded an IndiGo flight to Phuket just three hours after the fire incident, a move officials believe was aimed at evading arrest. They have since been charged with culpable homicide not amounting to murder and conspiracy, but have not contacted investigators.

Police discovered their disappearance when they reached their Delhi residence during the probe. Authorities have now confirmed that Interpol has issued a Blue Corner Notice to help trace their location and movement.

Rapid rise in hospitality before disaster

The brothers’ entry into the hospitality business began in 2016 with the launch of Mama’s Buoi in Delhi’s Civil Lines. The success of this venture paved the way for Dramebaaz and later Romeo Lane, which soon became a popular nightclub chain. They eventually expanded to Goa with Birch by Romeo Lane, promoted online as the region’s first “island club”.

Serious safety lapses revealed

Investigators noted that the Goa nightclub’s bamboo-heavy décor significantly accelerated the spread of the fire. Access to the club was restricted to a narrow pathway built over a small lake, which served as both entry and exit — a bottleneck that hindered evacuation and prevented fire engines from reaching the site. Firefighters were forced to park nearly 400 metres away.

Further inspection found that the establishment lacked fire safety clearance. No working fire extinguishers or alarm systems were present, despite the venue hosting over 100 people on peak nights.

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India News

Amit Shah counters Priyanka Gandhi’s remark on Vande Mataram debate in Parliament

Amit Shah refuted Priyanka Gandhi’s claim that the Vande Mataram debate was politically motivated, while Congress leaders countered his remarks with historical references.

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Amit Shah

Union Home Minister Amit Shah firmly rebutted Congress leader Priyanka Gandhi Vadra’s criticism over the ongoing parliamentary discussion on Vande Mataram, asserting that the national song transcends electoral politics and holds significance beyond any regional context.

Shah says linking Vande Mataram to Bengal polls is “unfortunate”

Responding to Priyanka Gandhi’s allegation that the government initiated the discussion with an eye on next year’s Bengal polls, Shah said the national song belongs to the entire nation and has been a symbol of courage for freedom fighters across the world.

He remarked that questioning the relevance of the debate reflects a lack of understanding of the song’s historic and emotional value. According to him, the contribution of Bankim Chandra Chattopadhyaya should not be viewed through a political lens.

Shah emphasised that the discussion was necessary when the song was written, during Independence, today, and even in 2047.

Shah targets Nehru, Indira Gandhi over past decisions

The Home Minister also criticised former Prime Ministers Jawaharlal Nehru and Indira Gandhi, alleging that appeasement politics led to restricting Vande Mataram to two stanzas. He claimed that decisions taken then contributed to the political climate that eventually resulted in Partition.

Shah further said that during the Emergency, those who raised the Vande Mataram slogan were imprisoned, reflecting suppression of democratic voices.

Kharge responds, starts speech with Vande Mataram

Congress president Mallikarjun Kharge countered Shah’s remarks, beginning his speech with Vande Mataram and reminding the House that the Congress popularised the slogan during the freedom struggle.

He asked why Nehru was being singled out when the Congress Working Committee, not just Nehru, approved singing only the first two stanzas at national events in 1937.

Kharge also accused the government of pushing the debate to divert attention from current issues and said the true tribute to the nation would be constructive parliamentary work.

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India News

Starlink says India pricing was a glitch, clarifies no orders being taken yet

Starlink has clarified that the India pricing visible on its website was only dummy data shown due to a technical glitch. The company says it is not yet accepting orders and is awaiting final government approvals.

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Elon Musk

Starlink has clarified that the India pricing briefly visible on its website on Monday was the result of a configuration error, stressing that the figures were only dummy data and not the final cost for Indian customers.

Starlink fixes website error after India pricing appears briefly

The satellite-based internet service displayed monthly pricing of ₹8,600 and a hardware kit cost of ₹34,000 before the company removed the information. Starlink said the numbers were unintentionally visible due to a glitch and do not represent its official India pricing.

Lauren Dreyer, Starlink’s Vice President and Senior Director of Business Operations at SpaceX, said in a post on X that the India website is not yet live and that service pricing has not been announced. She reiterated that Starlink is currently not accepting orders from customers in India.

Dreyer added that teams are working to secure final government approvals to begin services in India, and the website will go live only after this process is completed.

Maharashtra signs LoI with Starlink for satellite-based connectivity

Even as commercial rollout details remain pending, Starlink’s India preparations appear to be moving ahead. Recent hiring activity in Bengaluru indicates strengthening operations, with roles announced across payments, accounting, treasury and taxation.

Separately, the Maharashtra government has signed a Letter of Intent (LoI) with Starlink Satellite Communications Private Limited to deploy satellite-based internet services for government institutions and underserved districts including Gadchiroli, Nandurbar, Dharashiv and Washim.

Chief Minister Devendra Fadnavis said the initiative marks Maharashtra as the first Indian state to formally collaborate with Starlink for remote connectivity solutions.

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