India’s economy grows at its fastest pace in six quarters in election boost for Modi

Indian Prime Minister Narendra Modi waves as he visits International Media Center, on the second day of the G20 summit in New Delhi, India, September 10, 2023. (REUTERS)
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Updated 29 February 2024
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India’s economy grows at its fastest pace in six quarters in election boost for Modi

  • India’s economy grew 8.4% in the October-December quarter, much faster than 6.6% estimate
  • India has beaten market expectations, is ranked as one of fastest-growing economies in the world

NEW DELHI: India’s economy grew at its fastest pace in one-and-half years in the final three months of 2023, led by strong manufacturing and construction activity and bolstering Prime Minister Narendra Modi’s economic record just months before a national election.
Asia’s third largest economy grew 8.4 percent in the October-December quarter, much faster than the 6.6 percent estimated by economists polled by Reuters and higher than the 7.6 percent recorded in the previous three months.
“The ongoing growth momentum is indicative of the Indian economy’s resilience, notwithstanding global headwinds,” said Sunil Kumar Sinha, economist at India Ratings, noting that industrial growth continued its good run in the quarter.
India has consistently beat market expectations and is ranked as one of the fastest-growing economies in the world, with China struggling to recover after the pandemic and the euro zone narrowly escaping a recession.
India revised its growth estimate for the current fiscal year to March 31 to 7.6 percent from 7.3 percent.
Such a strong showing in the last major economic data release before elections due by May could bolster Modi’s chances after he made high economic growth one of his main platforms at rallies across the country.
The December growth “shows the strength of Indian economy and its potential,” Modi said in a social media post.
Modi has sharply raised government spending on infrastructure and offered incentives to boost manufacturing of phones, electronics, drones and semiconductors to help India compete with likes of Vietnam and Thailand.
The manufacturing sector, which for the past decade has accounted for 17 percent of Asia’s third-largest economy, expanded 11.6 percent year-on-year in the December quarter, while investment growth was above 10 percent for the second consecutive quarter, and the construction sector grew by more than 9 percent.
“Manufacturing sector growth was supported by lower input costs,” said Rajani Sinha, Economist at CareEdge
Private consumption, accounting for 60 percent of gross domestic product (GDP), recovered slightly in the quarter, with a 3.5 percent year-on-year rise, compared with 2.4 percent in the previous three months.
Government spending contracted 3.2 percent year-on-year, compared with 1.4 percent growth in the previous quarter.
RURAL WEAKNESS
The farm sector, which accounts for about 15 percent of the $3.7 trillion economy, continued to struggle due to unfavorable monsoon rains. It contracted 0.8 percent in the December quarter, compared with 1.6 percent growth in the September quarter.
Slowing rural growth dragged down farm incomes and some farmers have hit the streets
demanding higher procurement prices.
Rural weakness has led to slower growth for major retail companies like Hindustan Unilever and Britannia Industries.
The pace of growth in real rural wages was around 1 percent in 2023 after contracting nearly 3 percent in the previous two years, according to ICRA, while average salaries in urban areas have been going up by nearly 10 percent a year.
However, policymakers remain optimistic about rural recovery.
“With the anticipated better value addition in the farm sector next financial year, rural demand growth and rural income growth will be even better and more evident in FY25,” country’s Chief Economic Adviser V Anantha Nageswaran said.


India to rerun election at 11 places in Manipur after violence

Updated 21 April 2024
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India to rerun election at 11 places in Manipur after violence

  • Friday marked start of voting by nearly 1 billion people in world’s most-populous country
  • The main opposition Congress party had demanded a rerun at 47 Manipur polling stations

NEW DELHI: India, staging the world’s biggest election, will rerun voting at 11 polling stations in the northeastern state of Manipur on Monday after reports of violence and damage to voting machines in the state torn by months of ethnic clashes.
The election authorities declared the voting void at the 11 locations and ordered the fresh poll, the chief electoral officer of Manipur said in a statement late on Saturday.
Friday marked the start of voting by nearly one billion people in the world’s most-populous country, in an election running through June 1. Prime Minister Narendra Modi is forecast to win a rare third term on the back of issues such as growth, welfare and Hindu nationalism.
The main opposition Congress party had demanded a rerun at 47 Manipur polling stations, alleging that booths were captured and elections were rigged.
There were scattered incidents of violence on Friday in the state, including clashes among armed groups and attempts to take over polling stations under heavy security. Voters turned out in large numbers, despite the threat of clashes that have killed at least 220 people in the past year.
Manipur has been roiled by fighting between the majority Meitei and tribal Kuki-Zo people since May. It remains divided between a valley controlled by Meiteis and Kuki-dominated hills, separated by a stretch of no-man’s land monitored by federal paramilitary forces.


UN urges probe into Libyan activist’s death in custody

Updated 21 April 2024
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UN urges probe into Libyan activist’s death in custody

  • Dughman had died “while attempting to escape prison on Friday” when he fell “from a window, fracturing his skull"

TRIPOLI: The United Nations Support Mission in Libya called Sunday for an investigation into a political activist’s death while detained at an eastern military base controlled by military strongman Khalifa Haftar.
UNSMIL also demanded the “immediate release” of other prisoners it said were being detained “arbitrarily” by the war-torn country’s eastern-based authorities.
In a statement on X, the UN mission said it was “deeply saddened by the death of activist Siraj Dughman while in custody at Rajma military camp” and urged the Libyan “authorities to conduct a transparent and independent investigation into the circumstances surrounding his death.”
Plagued by political instability and violence since the overthrow of longtime dictator Muammar Qaddafi in 2011, Libya is split between an internationally recognized government, based in Tripoli, and a rival administration in the east backed by Haftar.
The base at Rajma, about 25 kilometers (16 miles) east of Benghazi, serves as Haftar’s headquarters.
In a video published on Saturday, the Haftar-affiliated Eastern Internal Security Agency confirmed Dughman’s death.
The agency said it had commissioned a forensic examination according to which Dughman had died “while attempting to escape prison on Friday” when he fell “from a window, fracturing his skull.”
The agency said he was arrested in October 2023 together with several others accused of “participating in a campaign” inciting the “overthrow of official state agencies” including Haftar’s forces.
UNSMIL said that Dughman “was arbitrarily arrested and detained in 2023” with other Benghazi-based staff members of the Libyan Center for Future Studies, an independent think tank, who “were never formally charged or appeared in court.”
Dughman was the director of the organization’s office in Benghazi, eastern Libya’s main city.
Extrajudicial arrests, detentions and assassinations of political dissidents, activists and human rights defenders have become common in Libya, particularly in the North African country’s east.
The Libyan Center for Future Studies said the security agency was “responsible for his death” which occurred in “obscure circumstances.”


Ukrainian and Western leaders laud US aid package while the Kremlin warns of ‘further ruin’

Updated 21 April 2024
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Ukrainian and Western leaders laud US aid package while the Kremlin warns of ‘further ruin’

  • US House of Representatives swiftly approves $95 billion in foreign aid for Ukraine, Israel and other allies in a rare Saturday session

KYIV: Ukrainian and Western leaders welcomed a desperately needed aid package passed by the US House of Representatives, as the Kremlin claimed the passage of the bill would “further ruin” Ukraine and cause more deaths.
The House swiftly approved $95 billion in foreign aid for Ukraine, Israel and other US allies in a rare Saturday session as Democrats and Republicans banded together after months of hard-right resistance over renewed American support for repelling Russia’s invasion.
With an overwhelming vote, the $61 billion in aid for Ukraine passed in a matter of minutes. Many Democrats cheered on the House floor and waved Ukrainian flags.
Ukrainian president Volodymyr Zelensky, who had warned that his country would lose the war without US funding, said that he was grateful for the decision of US lawmakers.
“We appreciate every sign of support for our country and its independence, people and way of life, which Russia is attempting to bury under the rubble,” he wrote on social media site X.
“America has demonstrated its leadership since the first days of this war. Exactly this type of leadership is required to maintain a rules-based international order and predictability for all nations,” he said.
The Ukrainian president noted that his country’s “warriors on the front lines” would feel the benefit of the aid package.
One such “warrior” is infantry soldier Oleksandr, fighting around Avdiivka, the city in the Donetsk region that Ukraine lost to Russia in February after months of intense combat.
“For us it’s so important to have this support from the US and our partners,” Oleksandr told The Associated Press. He did not give his full name for security reasons.
“With this we can stop them and reduce our losses. It’s the first step to have the possibility to liberate our territory.”
Ammunition shortages linked to the aid holdup over the past six months have led Ukrainian military commanders to ration shells, a disadvantage that Russia seized on this year — taking the city of Avdiivka and currently inching toward the town of Chasiv Yar, also in the Donetsk region.
“The Russians come at us in waves — we become exhausted, we have to leave our positions. This is repeated many times,” Oleksandr said. “Not having enough ammunition means we can’t cover the area that is our responsibility to hold when they are assaulting us.”
Other Western leaders lauded the passing of the aid package.
“Ukraine is using the weapons provided by NATO Allies to destroy Russian combat capabilities. This makes us all safer, in Europe & North America,” NATO Secretary-General Jens Stoltenberg wrote on X.
European Commission President Ursula von der Leyen said that “Ukraine deserves all the support it can get against Russia.”
In Russia, Kremlin spokesperson Dmitry Peskov called the approval of aid to Ukraine “expected and predictable.”
The decision “will make the United States of America richer, further ruin Ukraine and result in the deaths of even more Ukrainians, the fault of the Kyiv regime,” Peskov was quoted as saying by Russian news agency Ria Novosti.
“The new aid package will not save, but, on the contrary, will kill thousands and thousands more people, prolong the conflict, and bring even more grief and devastation,” Leonid Slutsky, head of the Russian State Duma Committee on International Affairs, wrote on Telegram.
The whole aid package will go to the US Senate, which could pass it as soon as Tuesday. President Joe Biden has promised to sign it immediately.


From Karachi to Mumbai, 130-year-old Indian restaurant traces history to pre-partition era

Updated 21 April 2024
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From Karachi to Mumbai, 130-year-old Indian restaurant traces history to pre-partition era

  • Opened in 1895 in Karachi, Bhagat Tarachand has over 25 branches in India
  • Founder’s family migrated to Mumbai upon the partition of British Raj in 1947

New Delhi/Karachi: Some of the first dishes cooked at the Bhagat Tarachand restaurant were the potato curries that Prakash Chawla’s grandfather prepared at a small eatery in 19th-century Karachi. Nearly 130 years later, they are still on the menu, albeit across the border in Mumbai.

Established by Tarachand Chawla in 1895, the restaurant started in the seaside megalopolis and the capital of what is now the Pakistani province of Sindh.

It served simple meals of Sindhi roti — wheat-flour bread spiced with onions and ghee — and seasonal vegetables.

Initially nameless, Chawla’s eatery soon became known by his name and the honorific “bhagat” (a noble man) that people added to it in reverence.

“My grandfather was a generous man, and he wouldn’t let anyone go hungry, whether that person had money or not. That way ‘bhagat’ was added to his name,” Prakash told Arab News.

Bhagat Tarachand died in Karachi in 1942, a few years before the partition of the British Raj.

In 1947, when it was split into Hindu-majority India and Muslim-majority Pakistan, his sons, including Prakash’s father, Khemchand, moved to Mumbai on the Indian side — some 900 km away.

The family became part of one of the biggest migrations in history, which forced about 15 million people to swap countries in a political upheaval that cost more than a million lives.

“It was not an easy beginning after moving to India, with my father struggling to establish the restaurant in Zaveri Bazaar,” Prakash said. “It was just a six-table eatery.”

Since then the restaurant has been officially known as Bhagat Tarachand, in memory of its founder.

The undated file photo shows popular items from the menu of Bhagat Tarachand restaurant. (Bhagat Tarachand)

Once the business started to flourish, Khemchand’s brothers opened other branches. He remained at the original location in the historical Mumbai gold market, where Prakash started to work at the age of 19.

Nearly half a century later, he is still leading the business, having expanded it into a four-story restaurant and added new dishes to the menu.

Now one of India’s leading vegetarian restaurants, Bhagat Tarachand has 25 branches led by Prakash and his cousins across the states of Maharashtra, Gujarat and Madhya Pradesh.

The most popular meal at his outlets is a vegetarian platter.

“In the veggie platter, we give three types of vegetables, lentils, chapati, rice or pilav, as per your choice, one sweet dish, one crispy item, and a pickle,” he said. “It is sufficient for two people”.

Some other flavors have been there since the Karachi times: aloo matar — potato and pea curry; and aloo methi — potato and fenugreek curry.

“Those are some of the oldest dishes that we’ve been serving since at least my father remembers,” said Vishal Chawla, Prakash’s son, who helps him run the business.

“When my great-grandfather ran the restaurant, my grandfather, and even to a certain extent my father, there was no menu card. They used to write just the dish of the day ... It depended on, you know, what were the fresh vegetables available in the market.”

Setting sights on expansion to the UAE and Singapore, both of which have significant Indian diasporas, Vishal has also been thinking about his ancestral city.

But as long as India and Pakistan have a complicated relationship, even obtaining a visa is not easy. One of his uncles has already tried, but to no avail.

“I hope that our countries have better relations in the future, at least in my lifetime ... And if that becomes a possibility, I would love to reconnect with the roots of this restaurant,” he said.

“From the perspective of our restaurant and family, they are all proud that they are able to continue this legacy.”


Maldives election day draws attention of India, China in Indian Ocean power play

Updated 21 April 2024
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Maldives election day draws attention of India, China in Indian Ocean power play

  • Muizzu's presidency heightened the India-China rivalry as he leaned towards China, leading to the removal of Indian troops from a Maldivian islet

MALE: Maldivians voted in parliamentary elections Sunday, in a ballot crucial for President Mohamed Muizzu, whose policies are keenly watched by India and China as they vie for influence in the archipelago nation.
Both countries are seeking a foothold in the Maldives, which has a strategic location in the Indian Ocean.
Muizzu's election as president last year sharpened the rivalry between India and China, with the new leader taking a pro-China stand and acting to remove Indian troops stationed on one of the country's islets.
Securing a majority in Parliament will be tough for Muizzu because some of his allies have fallen out and more parties entered the race.
Six political parties and independent groups are fielding 368 candidates for 93 seats in Parliament. That is six more seats than the previous Parliament following adjustments for population growth.
About 284,000 people were eligible to vote and tentative results were expected to be announced late Sunday.
Muizzu's election campaign theme for president was “India out,” accusing his predecessor of compromising national sovereignty by giving India too much influence.
At least 75 Indian military personnel were stationed in the Maldives and their known activities were operating two aircraft donated by India and assisting in the rescue of people stranded or faced with calamities at sea. Muizzu has taken steps to have civilians take over those activities.
Relations strained further when Indian social media activists started a boycott campaign of Maldives tourism. That was in retaliation for three Maldivian deputy ministers making derogatory statements about Indian Prime Minister Narendra Modi for raising the idea of promoting tourism in Lakshadweep, India's own string of islands similar to the Maldives.
According to recent Maldives government statistics, the number of Indian tourists has fallen, dropping that country from being the top source of foreign visitors to No. 6.
Muizzu visited China earlier this year and negotiated an increase in the number of tourists and inbound flights from China.
In 2013, Maldives joined China's “Belt and Road” initiative meant to build ports and highways to expand trade — and China’s influence — across Asia, Africa and Europe.