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As GDP slumps to three-year low at 5.7 %, Congress hits out at Centre over DeMo, GST

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As GDP slumps to three-year low at 5.7 %, Congress hits out at Centre over DeMo, GST

[vc_row][vc_column][vc_column_text]The disappointing GDP figures for the April-June quarter come at a time when the Centre is already facing harsh criticism over the purported failure of demonetisation, with the RBI claiming that 99 per cent of banned notes made their way back to various commercial banks

Even as the Centre was trying hard to defend Prime Minister Narendra Modi’s 10-month old demonetisation move amid counter-claims that almost established how the move to curb black money had failed miserably, the latest GDP figures – 5.7 per cent for the April-June quarter – have further strengthened the argument that noteban was bad for the economy.

On Thursday, data released by the government revealed that the economic growth of India had slipped to a three-year low of 5.7 per cent in April-June, possibly due to disruptions caused by demonetisation and the rollout of the Goods and Services Tax regime and a slowdown of the manufacturing sector which itself was a result of a combination of noteban and GST rollout. GDP stood at 6.1 per cent in the preceding quarter. A revised growth of 7.9 per cent had been pegged by the government for the first quarter of 2016-17.

The latest GDP data has come, by Union finance minister Arun Jaitley’s own confession, as a “matter of concern”. The Congress party – which had been steadfast in its criticism of demonetisation and also the manner in which the GST rollout took place – has expectedly hit out at the Centre for the slump in the GDP growth figures.

As businesses destocked inventories ahead of the GST kick-off from July 1, gross value added (GVA) in manufacturing declined to a low of 1.2 per cent, from 10.7 per cent, year on year. Gross Domestic Product (GDP) growth in the first quarter of 2017-18 was lower than 6.1 per cent of the preceding one and 7.9 per cent in the same period last fiscal.

The finance minister admitted that the slump in the GDP was fuelled by the GST rollout, although he didn’t count demonetisation as a reason for the same. “Since it was announced that GST would come into operation from July 1, most manufacturers were de-stocking during period April-June. As a result, trading went up because sales were taking place but it was stocks which were being sold. No new manufacturing happened,” Jaitley said, adding that the slump in GDP “seems to be the pre-GST impact of de-stocking”.

When asked about whether the GDP can grow at 7 percent this fiscal, Jaitley said, “I am hopeful, because of the pre-GST de-stocking, this would really be the bottoming out.”

As GDP slumps to three-year low at 5.7 %, Congress hits out at Centre over DeMo, GSTFormer finance minister P Chidambaram, who has already been vociferous in his criticism of the manner in which the GST rollout took place and of demonetisation since the RBI admitted that 99 per cent of banned Rs 500 and Rs 1000 notes had been deposited back with the banks, took to Twitter to hit out at the Centre over the decline in the GDP numbers, which he called a “catastrophe”.[/vc_column_text][vc_raw_html]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[/vc_raw_html][vc_column_text]Economic experts too admitted that the slump in GDP was due to a combination of the GST rollout and impact of demonetisation.

Abheek Barua, Chief Economist of the HDFC BANK said, “GDP numbers are certainly disappointing. The numbers seem to suggest that the slowdown from last quarter has intensified due to the combination of long-term slowdown and temporary shock factors like demonetisation and GST (goods and services tax) destocking… We have to revise our GDP outlook numbers for the full year closer or perhaps lower than 7 percent.”

Noted economist Arup Kumar too expressed similar views, saying “demonetisation has been a complete and utter failure and its impact on the GDP growth figures is evident… the GST rollout too has taken its toll on economic growth and I don’t see the impact of either of these factors, especially demonetisation, waning for at least another quarter”.

It is perhaps timely to recall that in late November 2016, former Prime Minister Manmohan Singh had – while addressing the Rajya Sabha – called demonetisation a ‘mammoth tragedy’ and warned about a 2 percent hit on GDP in the aftermath of the demonetisation. The Narendra Modi government and demonetisation cheerleaders had then rubbished Singh’s prophecy. After 10 months of demonetisation, with no major tangible gains from the exercise and a severe hit on the economy, Dr Manmohan Singh is probably having the last laugh now.[/vc_column_text][/vc_column][/vc_row]

India News

Thick smog engulfs Delhi, flights and trains delayed as air quality slips to very poor

Delhi remained under a thick smog cover as air quality dipped into the very poor category, causing delays in flights and train services due to low visibility.

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A dense blanket of smog covered Delhi on Saturday morning, pushing air quality into the ‘very poor’ category and disrupting flight and train operations across the national capital and adjoining areas. Reduced visibility due to smog led to delays in air and rail traffic, while authorities warned that pollution levels could worsen further in the coming days.

The Air Quality Index (AQI) in Delhi was recorded at 380, placing it in the ‘very poor’ bracket. Visuals from Bhairav Marg near Pragati Maidan showed motorists using headlights during early hours, as visibility remained low. At around 7 am, the AQI at this location stood at 433.

Nearly half of Delhi’s air quality monitoring stations reported ‘severe’ pollution levels. Anand Vihar recorded an AQI of 428 with PM2.5 as the dominant pollutant, while Jahangirpuri reported an AQI of 425.

Transport services hit by low visibility

Flight operations at Delhi airport were impacted due to low visibility conditions. The airport issued an advisory asking passengers to check with their respective airlines for updated flight information, as low visibility procedures were in place. Runway visibility was reported to be between 800 and 1,200 metres.

Live flight tracking data showed multiple flights running behind schedule. One airline also warned passengers about possible disruptions at several airports in northern and eastern India, including Delhi, due to dense fog conditions. Travellers were advised to verify flight status before heading to the airport, with options offered on select flights to reschedule or seek refunds without additional charges.

Rail services were also affected, with more than 30 trains running late by an average of three to four hours. Some long-distance trains reported delays of over six to eight hours, causing inconvenience to passengers travelling to and from the capital.

Air quality likely to worsen

The weather department had earlier forecast dense to very dense fog at isolated places over Delhi and several parts of north and central India. According to the Air Quality Early Warning System for Delhi, pollution levels are expected to remain in the ‘very poor’ category on Saturday and may slip into the ‘severe’ category on Sunday and Monday. In view of the deteriorating conditions, an ‘orange’ alert has been issued for Saturday.

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PM Modi inaugurates India’s first nature-themed airport terminal in Assam

Prime Minister Narendra Modi inaugurates the new nature-themed terminal at Guwahati airport, the largest in Northeast India, built around bamboo, orchids and regional heritage.

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Prime Minister Narendra Modi is set to inaugurate the new terminal building of Lokapriya Gopinath Bordoloi International (LGBI) Airport in Guwahati today, marking a major milestone for aviation infrastructure in the Northeast. Built at an estimated cost of around Rs 4,000 crore, the facility is being projected as the largest airport terminal in the region and a key boost to connectivity, tourism and economic activity in Assam.

The Prime Minister is scheduled to arrive in Guwahati around 3 pm as part of his two-day visit to the state.

Northeast’s largest airport terminal takes shape in Guwahati

The newly constructed terminal is nearly seven times larger than the existing one and has been designed to cater to the region’s rapidly growing air traffic. Once fully operational, it is expected to handle up to 13.1 million passengers annually by 2032.

Officials said the terminal is planned as a regional connectivity hub, with a focus on strengthening air links between India and Southeast Asia. The airport will be capable of handling up to 34 air traffic movements per hour, the highest capacity among airports in the Northeast. The facility will also be equipped with one of the most advanced Instrument Landing Systems to support safer and more efficient operations.

Nature-inspired design rooted in Assam’s identity

What sets the Guwahati terminal apart is its distinctive nature-themed architecture. Conceptualised under the theme “Bamboo Orchids”, it is being described as India’s first airport terminal inspired entirely by natural and cultural elements.

The interiors draw from the landscapes of Northeast India, with design elements reflecting indigenous orchids, locally known as Kopou Phool, and the flow of the Brahmaputra river. The terminal incorporates more than 2,000 species of plants, includes a dedicated zone inspired by Kaziranga National Park, and features artefacts representing Majuli Island.

A key architectural highlight is the expansive bamboo vault, created using around 140 metric tonnes of locally sourced bamboo. The space has been envisioned as a multifunctional cultural centre aimed at encouraging community interaction and showcasing the region’s heritage. Design elements such as japi motifs, the iconic rhino symbol and 57 orchid-inspired columns further reinforce the cultural narrative.

Arriving passengers will also experience a unique “Sky Forest”, featuring nearly one lakh plants of indigenous species, designed to create an immersive forest-like ambience within the terminal.

Focus on digital integration and passenger convenience

Spread over nearly 1.4 lakh square metres, the integrated new terminal has been designed to handle around 1.3 crore passengers annually. It is supported by significant upgrades to the runway, airfield systems, aprons and taxiways.

The terminal places strong emphasis on digital integration, with 14 entry points, including four DigiYatra gates, aimed at easing passenger movement. Facilities such as full-body scanners for non-intrusive security checks, automated baggage handling systems, fast-track immigration and AI-driven airport operations have been incorporated to ensure smoother travel experiences.

Other engagements during PM Modi’s Assam visit

During his two-day stay, the Prime Minister will also lay foundation stones for multiple development projects and address public gatherings. He is scheduled to visit the Swahid Smarak Kshetra to pay tribute to the martyrs of the historic Assam Movement.

Later in the day, PM Modi will perform the bhoomipujan for a new brownfield Ammonia-Urea Fertiliser Project at Namrup in Dibrugarh district, within the existing premises of the Brahmaputra Valley Fertiliser Corporation Limited.

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Assam train accident: Eight elephants killed after Rajdhani Express derailment in Hojai

Eight elephants were killed after the Rajdhani Express collided with a herd in Assam’s Hojai district, causing multiple coaches to derail and disrupting train services.

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At least eight elephants were killed and a calf was injured after a herd collided with the Sairang–New Delhi Rajdhani Express in Assam’s Hojai district, leading to the derailment of the locomotive and five coaches early Saturday. Railway officials confirmed that no passengers were injured in the incident.

Forest department officials said the collision occurred when the New Delhi-bound Rajdhani Express struck a herd of elephants on the tracks. The impact caused multiple coaches to derail, disrupting rail traffic on the busy route connecting the Northeast with the national capital.

Train services hit, passengers shifted to other coaches

Following the derailment, rail movement towards Upper Assam and other parts of the Northeast was affected due to damaged coaches and elephant remains scattered on the tracks. Accident relief trains and senior railway officials rushed to the site to restore services.

Passengers travelling in the affected coaches were temporarily accommodated in vacant berths in other coaches of the same train. Officials said that once the train reaches Guwahati, additional coaches will be attached to ensure all passengers can continue their journey.

Collision occurred outside designated elephant corridor

According to officials, the accident took place at a location that is not marked as a designated elephant corridor. The loco pilot reportedly applied emergency brakes after spotting the herd on the tracks, but the elephants ran into the train, resulting in the collision and derailment.

Forest authorities confirmed that eight elephants died on the spot, while one injured calf was rescued. Local residents said the herd consisted of around eight elephants at the time of the accident.

Elephant deaths in train accidents remain a concern

The incident comes amid continued concerns over wildlife deaths on railway tracks. Data shared by the Environment Ministry in Parliament earlier showed that at least 79 elephants have died in train collisions across India over the past five years, based on reports from states and Union Territories.

The ministry has said that several preventive steps are being taken in coordination with the Railways, including speed restrictions in elephant habitats, use of sensor-based detection systems, and construction of underpasses, ramps and fencing at vulnerable locations. Guidelines and capacity-building programmes have also been introduced to reduce human-animal conflict along railway lines.

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