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Hasty GST implementation, noteban to adversely affect GDP: Manmohan

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Manmohan Singh

[vc_row][vc_column][vc_column_text]Former Prime Minister’s earlier prediction of demonetisation bringing GDP growth down by 2 per cent had recently come true

With his prediction of demonetisation pulling down India’s GDP growth rate by two per cent having recently come true, former Prime Minister Dr Manmohan Singh has once again warned against the adverse impact of noteban coupled with effects of the hasty implementation of the Goods and Services (GST) regime on the country’s economy in the near future.

Singh, an economist of international repute, has warned that the hasty implementation of the GST regime that was rolled out in July along with the continuing effect of demonetisation will hit the country’s massive informal and small scale sectors which collectively account for nearly 90 per cent of India’s job creation.

Speaking to CNBC TV18, on Monday, the former Prime Minister said: “Both demonetisation and the GST have had some impact (on the GDP growth)… Both will affect the informal sector and the small-scale sector. These sectors are today responsible for 40 per cent of GDP.”

Singh added that “because the GST has been put into practice in haste, there are many glitches now coming up. This is bound to affect GDP growth.”

The senior Congress leader’s comments come in the wake of recent government data that showed the GDP growth slipping to a three-month low at 5.7 per cent for the April-June quarter – a decline that has been blamed on effects of demonetisation and the GST by a large section of economists and business leaders across the country.

Although the ruling government has been singing praises for Prime Minister Narendra Modi’s decision of October last year to declare the Rs 500 and Rs 1000 currency notes as no longer legal tender – a sudden announcement that flushed out 86 per cent of India’s currency from the market – the slump in the GDP had forced even Union finance minister Arun Jaitley to admit that the new tax regime had impacted the country’s manufacturing sector.

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.

Jaitley had said that the fall in GDP growth was a “matter of concern”, although he expressed hope that the economy will bounce back to a 7 per cent growth once effects of GST implementation on de-stocking ease in the current quarter.

Singh, however, doesn’t share Jaitley and the Modi government’s optimism. Shortly after demonetisation was implemented, the former Prime Minister had, while speaking in the Rajya Sabha, called the move an “organised loot and legalised plunder”. In the aftermath of the GST rollout too, Singh had told a meeting of the Congress Working Committee – the apex decision making body of the principal Opposition party that the economy was “running on just one engine of public spending”.

While his prediction of a 2 per cent fall in GDP growth rate due to demonetisation has been proven true, much to the chagrin of the Modi government, it remains to be seen whether the Centre will pay heed to the former PM’s advice now.[/vc_column_text][/vc_column][/vc_row]

India News

India hits back at Shehbaz Sharif at UN, says terror will have consequences

India hit back at Pakistan Prime Minister Shehbaz Sharif’s UN speech, with New Delhi warning that terrorism will have consequences.

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India has responded to Pakistan Prime Minister Shehbaz Sharif’s remarks at the United Nations, delivering a strong message on terrorism and warning that such actions will have consequences.

The response came after Mr Sharif addressed the UN and raised issues concerning India and Pakistan. New Delhi rejected the narrative presented by the Pakistani prime minister and highlighted the issue of terrorism.

India’s message was delivered by Petal Gehlot, who represented New Delhi in the response to Pakistan.

India warns Pakistan over terrorism

India’s response focused on Pakistan’s record and its approach towards terrorism. New Delhi made clear that terrorism cannot be separated from its consequences and that those responsible cannot expect such actions to go unanswered.

The Indian side also pushed back against the claims and allegations made by Mr Sharif during his UN speech.

The exchange comes amid continuing tensions between India and Pakistan, with terrorism remaining a major point of disagreement between the two countries.

Shehbaz Sharif’s UN remarks

In his address, Pakistan Prime Minister Shehbaz Sharif spoke about India-Pakistan relations and raised several issues concerning New Delhi.

India subsequently exercised its right of reply to respond to Pakistan’s statements at the United Nations.

New Delhi’s response underlined its position that terrorism remains a serious issue in the relationship and that there would be consequences for terrorist actions.

The latest exchange at the UN adds to the continuing diplomatic confrontation between the two neighbouring countries.

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Veeramani POCSO case: Vijay questions Stalin over earlier probe

Tamil Nadu Chief Minister Vijay has questioned MK Stalin over the handling of the Veeramani POCSO case, while Stalin has rejected allegations that the previous DMK government protected anyone.

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Actor Vijay

Tamil Nadu Chief Minister and Tamilaga Vettri Kazhagam (TVK) president C Joseph Vijay has questioned DMK president MK Stalin over the handling of the POCSO case involving Gem Granites founder R Veeramani. The political exchange follows renewed investigation into allegations involving minor girls.

Vijay’s remarks came as the ruling TVK stepped up its questions about how the case was handled during the previous DMK government. The party’s IT wing has alleged that the earlier investigation was weakened and questioned why a final report was filed.

The allegations have been rejected by the DMK. Stalin has said that no order was issued by the DMK government to protect anyone in the case and has called the allegations false and defamatory.

What did Vijay say about the Veeramani case?

Vijay questioned Stalin over the handling of the case and demanded an explanation from the former chief minister.

The TVK has specifically questioned why action was not taken against Veeramani during the previous administration and why the earlier investigation resulted in a closure report.

The party has also raised questions about the role of officials involved in the earlier investigation. These are political allegations made by the TVK and have not been established as facts.

What is the Veeramani POCSO case?

The case concerns allegations of sexual abuse of minors involving R Veeramani, the founder of Gem Granites.

The case came under renewed scrutiny after a special POCSO court rejected an earlier closure report and ordered further investigation. The expanded probe has subsequently identified additional alleged survivors who were minors at the time of the alleged offences, according to current reporting.

The investigation is also examining the circumstances surrounding the earlier probe and whether there were any lapses in how the case was handled.

What has MK Stalin said?

Stalin has rejected allegations that the previous DMK government protected Veeramani.

He has said that no order was issued by the DMK government to shield anyone in the case. Stalin has also said that everyone responsible for the alleged offences, including anyone who aided or attempted to protect the accused, should face the law.

The DMK president has further said that the focus should remain on securing justice for the affected girls rather than making political allegations.

Why has the case become a political issue?

The Veeramani case has become the subject of a political dispute between the ruling TVK and the DMK over the handling of the earlier investigation.

The TVK is questioning the previous government’s handling of the case, while the DMK has denied that it intervened to protect the accused.

At this stage, claims about political interference or deliberate weakening of the earlier investigation should be treated as allegations unless established by the ongoing investigation or judicial proceedings.

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Women wrestlers challenge Brij Bhushan’s acquittal in sexual harassment case

Four women wrestlers have challenged the acquittal of former WFI chief Brij Bhushan Sharan Singh and co-accused Vinod Tomar in a sexual harassment case.

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Brij Bhushan Sharan Singh

Four women wrestlers have approached a Delhi court challenging the acquittal of former Wrestling Federation of India (WFI) chief and BJP leader Brij Bhushan Sharan Singh in a sexual harassment case.

The wrestlers have also challenged the acquittal of co-accused Vinod Tomar. The matter is scheduled to be heard by a Special Judge at the Rouse Avenue Courts.

The appeal challenges the order passed by an Additional Chief Judicial Magistrate on August 3, 2026, when Brij Bhushan and Tomar were acquitted in the case.

Wrestlers challenge court’s reasoning

In their appeal, the wrestlers have argued that the acquittal order is legally unsustainable and that the evidence was not assessed appropriately.

They have also alleged that the order relied on assumptions about how victims of sexual assault and harassment were expected to behave instead of assessing the evidence and circumstances of the complainants.

The challenge seeks judicial scrutiny of the findings that resulted in the acquittal of Brij Bhushan and Tomar.

Brij Bhushan was acquitted in August

The Rouse Avenue court acquitted Brij Bhushan Sharan Singh on August 3 in the sexual harassment case involving women wrestlers. The court’s decision followed consideration of the evidence and statements presented during the proceedings.

The case had emerged after several women wrestlers accused the former WFI chief of sexual harassment. The allegations had led to a major protest by wrestlers in 2023.

The latest appeal means the acquittal is now being challenged before a higher court.

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