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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

WhatsApp gets more time to respond on username feature, rollout in India put on hold

WhatsApp has been granted more time to respond to the government’s concerns over its username feature and has assured that it will not launch the feature in India until discussions are completed.

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WhatsApp

Meta assures the government that the feature will not be introduced in India until ongoing consultations are completed.

Meta-owned WhatsApp has been granted an extension to submit its response to the Centre regarding its proposed username feature, while assuring the government that it will not roll out the feature in India until discussions on the matter are concluded.

According to sources, the government has allowed WhatsApp three additional days to file its response after the company sought more time. The original deadline for the reply was Friday.

The proposed username feature would allow users to connect with others without revealing their phone numbers, a move that has raised concerns within the government over its potential impact on cyber safety.

Last week, the Centre issued a notice to Meta questioning the feature, expressing concerns that it could increase online fraud, phishing attempts, impersonation, and so-called “digital arrest” scams. The government also directed the company to pause the rollout until consultations are completed to its satisfaction.

Sources said representatives from Meta met officials from the Ministry of Electronics and Information Technology (MeitY) on Friday following the issuance of the notice. During the discussions, WhatsApp reportedly assured authorities that the feature would not be introduced in India before the consultation process is completed.

The government has also asked Meta to explain why action should not be initiated under the Information Technology Act and the relevant rules if the proposed feature is found to compromise user safety. It reminded the company that WhatsApp, as a significant social media intermediary, must comply with due diligence obligations under Indian law.

A WhatsApp spokesperson had earlier clarified that the username feature is not yet live and is expected to be introduced gradually later this year.

The company said it has built several safeguards into the feature to prevent impersonation. According to WhatsApp, usernames of public figures, government entities, celebrities, and verified Meta accounts have been reserved so that they can only be claimed by their legitimate owners. It also said lookalike variations of such usernames are being restricted.

WhatsApp also clarified that users will still need a phone number to create and use a WhatsApp account. The username feature is intended only as an alternative way for people to connect.

The company added that users would need to know another person’s exact username before initiating contact. It also plans to limit how many new users an account can message, prevent repeated attempts to guess usernames, and use automated systems to detect impersonation and abusive behaviour.

To help users identify unfamiliar contacts, WhatsApp said it will display contextual information whenever someone sends a message through a username for the first time. Users will be informed whether the sender is a new account, an existing contact, someone who shares a mutual group, or a person located in another country before deciding whether to respond.

Following its notice to WhatsApp, the IT Ministry also issued notices to Telegram and Signal, seeking details on how their existing username-based systems address concerns related to fraud and impersonation. While WhatsApp has around 500 million users in India, Telegram has a significantly smaller user base.

In recent days, Meta and Telegram have also come under regulatory scrutiny on separate issues. The government recently issued a notice to Meta regarding child sexual abuse material appearing in Instagram advertisements, while Telegram was directed to strengthen action against the circulation of pirated films, OTT content, and other copyrighted audio-visual material on its platform.

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Heavy rain disrupts flights, triggers flood alerts as monsoon intensifies across India

Heavy monsoon rainfall disrupted flights in Mumbai, prompted an orange alert in Delhi and led the IMD to issue heavy rain warnings for several states as a Bay of Bengal depression intensified.

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Monsoon

Heavy monsoon rainfall continued to affect several parts of the country on Sunday and Monday, disrupting air travel, inundating roads and prompting weather alerts in multiple states. The India Meteorological Department (IMD) has warned that a depression over the Bay of Bengal is likely to bring widespread heavy to very heavy rainfall across eastern India over the next 24 hours.

Mumbai bears the brunt of heavy rainfall

Mumbai experienced one of the most severe impacts of the ongoing monsoon spell after heavy overnight rain and strong winds temporarily halted runway operations at Chhatrapati Shivaji Maharaj International Airport for around an hour.

The disruption led to the cancellation of four IndiGo flights, while 13 incoming flights were diverted before operations gradually returned to normal. Flight tracking data also showed significant delays, with nearly 90 per cent of departing flights delayed by more than an hour on average and almost half of arriving flights running behind schedule.

The IMD maintained a red alert for Mumbai after several areas recorded more than 200 mm of rainfall within 24 hours, with some locations receiving close to 300 mm.

IMD forecasts widespread heavy rainfall

According to the IMD, a well-marked low-pressure area over the Bay of Bengal has intensified into a depression and is expected to cross the north Odisha coast within the next 24 hours.

The weather system is expected to bring widespread heavy to very heavy rainfall across eastern India, while several other regions continue to remain under rainfall alerts due to active monsoon conditions.

Delhi under orange alert after hottest July day in two years

The IMD has issued an orange alert for Delhi, forecasting a generally cloudy sky with moderate rainfall across the national capital.

The alert comes after Delhi recorded its hottest July day in two years on Sunday, with the maximum temperature reaching 38.6 degrees Celsius. Despite the heat, moderate showers provided temporary relief in several areas of Delhi-NCR.

Chhatarpur recorded the highest rainfall in the region, receiving 49 mm of rain by Sunday afternoon. However, waterlogging was reported in parts of the locality, affecting commuters and residents.

Heavy rain forecast for Tamil Nadu

The IMD has also forecast heavy rainfall at isolated locations in Coimbatore and the Nilgiris on Monday.

According to the Regional Meteorological Centre in Chennai, multiple weather systems, including a trough extending from south Gujarat to Kerala and the depression over the Bay of Bengal, are expected to support widespread rainfall across parts of Tamil Nadu. Other districts along the Western Ghats are also likely to receive moderate rainfall accompanied by gusty winds.

Rain-related incidents reported in Maharashtra

Heavy rainfall also led to several rain-related incidents in Maharashtra’s Thane and Palghar districts.

A 17-year-old boy drowned in the swollen Kamvari River in Bhiwandi, while two people were injured after part of a second-floor balcony collapsed in Navi Mumbai’s Vashi area. Authorities said continuous rainfall also triggered structural collapses and tree-fall incidents in several locations.

With active monsoon conditions continuing across large parts of the country, authorities have urged residents in affected regions to remain cautious and follow official weather advisories.

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Ram Mandir Trust to hold key meeting today amid donation theft investigation

The Shri Ram Janmabhoomi Teerth Kshetra Trust is meeting in Ayodhya to deliberate on key resignations, review the ongoing donation embezzlement investigation and discuss the temple’s future administrative structure.

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The Shri Ram Janmabhoomi Teerth Kshetra Trust is scheduled to hold an important meeting on Monday in Ayodhya as investigations into the alleged embezzlement of temple donations continue. The deliberations are expected to focus on the resignations submitted by the Trust’s general secretary Champat Rai and trustee Anil Mishra, along with other administrative matters.

The meeting will be held at Mani Ram Chhawni, the monastery of Trust president Nritya Gopal Das. It will be the Trust’s first formal gathering since allegations related to the alleged theft of donations came to light.

Trust treasurer Govind Dev Giri has invited all regular and ex-officio members to participate in the meeting. The ex-officio members include Union Home Ministry Additional Secretary Prashant Lokhande, Uttar Pradesh Chief Minister’s Additional Chief Secretary Sanjay Prasad, Ayodhya District Magistrate Shashank Tripathi and former Principal Secretary to the Prime Minister Nripendra Mishra.

According to sources, Trust president Nritya Gopal Das is expected to attend the meeting after recently being discharged from hospital. The 89-year-old had been admitted in Lucknow on June 29 due to a urinary tract infection and breathing-related complications before being discharged on Friday.

Senior trustee K Parasaran, who is unable to travel because of age-related health issues, is likely to participate through video conferencing, according to sources.

Administrative changes may be discussed

The Trust is expected to consider the resignations of Champat Rai and Anil Mishra, who stepped down after their names surfaced in connection with the donation theft controversy. If the resignations are accepted, discussions may also take place on restructuring the Trust’s administrative setup.

The role of special invitee Gopal Rao is also likely to come up during the meeting. Besides leadership issues, trustees are expected to receive a briefing on the interim findings of the Special Investigation Team (SIT), which is conducting an administrative inquiry into the alleged embezzlement case.

The Trust may also review its future management framework, including the possible appointment of a chief executive officer to oversee the administration of the Ram Temple.

Financial statements to be placed before trustees

Sources said the meeting agenda also includes the presentation of the unaudited income and expenditure statement, balance sheet and other financial documents for the 2025-26 financial year for approval.

Speaking to reporters, special invitee Gopal Rao said all 14 trustees had been invited for the meeting and expressed hope that every member would attend. He added that Trust treasurer Govind Dev Giri had informed all members about the scheduled deliberations.

At present, the Trust has 11 regular members, including president Nritya Gopal Das, Vasudevanand Saraswati, Vishwaprasannatirth, Parmanand Giri, Govind Dev Giri, Krishna Mohan, Dinendra Das and K Parasaran.

Following the resignations of Champat Rai and Anil Mishra, along with the recent demise of trustee Bimlendra Mohan Pratap Mishra, the Trust currently has no vice president to chair meetings in the absence of the president.

Two parallel investigations underway

The meeting comes while two separate investigations into the alleged donation embezzlement are ongoing. The Special Investigation Team is carrying out an administrative probe, and its tenure has been extended until the end of July.

Meanwhile, the police are conducting a criminal investigation after an FIR was registered on the Trust’s complaint.

According to sources, statements of Champat Rai, Anil Mishra and special invitee Gopal Rao have been recorded by both the SIT and the police. However, no FIR has been registered against any of the three Trust functionaries so far.

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