What lies ahead for the new Indian government

What lies ahead for the new Indian government
Supporters of the ruling Bharatiya Janta Party (BJP) holding cut-outs of India’s Prime Minister and their leader, Narendra Modi shout slogans during an election campaign rally of their president and election candidate Jagat Prakash Nadda (not pictured), in Amritsar on May 30, 2024 ahead of the seventh and final phase of voting in India’s general election. (AFP)
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Updated 30 May 2024
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What lies ahead for the new Indian government

What lies ahead for the new Indian government
  • Economic disparity, inflation, taxes and unemployment likely to be key challenges 
  • Foreign relations with China, Pakistan, Canada will continue to plague any new administration

NEW DELHI: India is expected to have a new government in place by the middle of June after a six-week election that began on April 19. Votes will be counted on June 4 and analysts expect Prime Minister Narendra Modi to win a third straight term.
Here are some key issues the winning party, or coalition, will need to tackle in office.
ECONOMIC DISPARITY
India’s economy is expected to have grown by about 8 percent in the last fiscal year, one of the fastest rates among major economies, but voters have pointed to disparities on the ground, with growth more visible in cities than in the vast hinterland.
The economy has jumped five places to be the fifth-largest in the world in the past decade under Modi and he has said he will lift it to the third position if elected. But the country’s per-capita income still remains the lowest among G20 nations.
Nevertheless, S&P Global Ratings in late May raised India’s sovereign rating outlook to ‘positive’ from ‘stable’ while retaining the rating at ‘BBB-’, saying the country’s robust economic expansion was having a constructive impact on its credit metrics.
INFLATION ABOVE CENBANK TARGET
Annual retail inflation (INCPIY=ECI) in April stood at 4.83 percent, slightly lower than March, but still above the central bank’s 4 percent target.
Food inflation, which accounts for nearly half of the overall consumer price basket, was an annual 8.70 percent in April, compared with a 8.52 percent rise in the previous month. Food inflation has been at more than 8 percent year-on-year since November 2023.
Countering the steep increase in food prices has been one of the key campaign planks of the main opposition Congress party, which has promised several cash handouts to alleviate the situation.
Modi has meanwhile banned exports of wheat, rice and onions to contain domestic inflation.
UNEMPLOYMENT
Unemployment in India has also been one of the main issues in the campaign with Congress accusing the Modi government of doing little to provide jobs for the country’s youth.
The unemployment rate in India rose to 8.1 percent in April from 7.4 percent in March, according to the private think-tank Center for Monitoring Indian Economy.
Government estimates for the latest January-March quarter show that the urban unemployment rate in the 15-29 age group ticked higher to 17 percent from 16.5 percent in the prior quarter.
Overall, urban unemployment rate in the January-March quarter stood at 6.7 percent, compared to 6.5 percent in the previous quarter, according to government data.
The Indian government does not release quarterly unemployment figures for rural India.
FOREIGN RELATIONS
India’s rising world stature and assertive foreign policy have been touted as major recent achievements by Modi’s administration.
A key diplomatic strain, however, remains with China which was spurred by a 2020 border clash that left 20 Indian and four Chinese soldiers dead. Modi said last month the countries should address the “prolonged situation” on their border.
Modi’s government has been trying to attract foreign companies to diversify supply chains beyond China.
Relations with Canada have also been strained in recent months after Ottawa and Washington accused an Indian official of directing the plot in the attempted murder of Gurpatwant Singh Pannun, a Sikh separatist and dual citizen of the United States and Canada.
In May, Canadian police arrested and charged three Indian men with the murder of Sikh separatist leader Hardeep Singh Nijjar last year and said they were probing whether the men had ties to the Indian government.
TAXES
An industry lobby group earlier this year called for a tax exemption limit for individuals to be increased and linked with inflation to help boost consumption.
The Confederation of Indian Industry also asked that the government review its capital gains tax structure by bringing consistency in tax rates for different asset classes such as debt, equity and immovable assets.
FARMERS
Stagnant farm income is a major sign of widening inequality between urban and rural India that has led to widespread protests. The BJP had promised to double farm income by 2022 in its manifesto for the last election, but has failed to do so.
Despite that, Modi has set a new goal to lift rural per-capita income by 50 percent by 2030 but farmers in the hinterland remain skeptical of such plans, Reuters reported earlier.
LAND, LABOUR REFORMS
In February, a BJP spokesperson told Reuters that Modi could make labor reforms a priority if he wins the general election.
New labor codes, which would make it easier for firms to hire and fire workers and impose operating restrictions on unions, were approved by parliament in 2020, but they have yet to be implemented following resistance from workers and states.
The new government may also continue to delay taking on land reforms as any such moves would be contentious and lead to losses in state elections later this year.
In his first term as prime minister, Modi tried to push through legislation that would have made it easier to buy land for industrial corridors, rural housing and electrification, and for defense purposes. However, the plan was put on the backburner amid stiff resistance from the opposition.


Australian jury convicts two men for murder of Indigenous teen

Australian jury convicts two men for murder of Indigenous teen
Updated 7 sec ago
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Australian jury convicts two men for murder of Indigenous teen

Australian jury convicts two men for murder of Indigenous teen
  • Some witnesses said the attackers had used racial slurs before the attack, but racism was not an alleged motive in the court proceedings
  • A fourth person charged over Turvey’s killing, Aleesha Gilmore, was cleared of both murder and manslaughter charges, court documents showed
SYDNEY: An Australian jury on Thursday found two men guilty of murdering Cassius Turvey, a 15-year-old Indigenous boy whose killing sparked nationwide anti-racism protests.
Turvey was attacked and beaten with a metal pole in October 2022 in the western city of Perth, the court heard. He died 10 days later in hospital.
Jurors convicted the two men — Jack Brearley and Brodie Palmer — of his murder, papers from the Supreme Court of Western Australia showed.
A third man, Mitchell Forth, was found guilty of manslaughter but cleared of murder.
All three men got out of a pick-up truck and chased a group of teenagers that included Turvey, Australian public broadcaster ABC said.
Brearley assaulted Turvey with a pole from a shopping trolley, the court heard.
Prosecutors said Brearley was angry because someone had smashed his car windows — though there was no suggestion Turvey was responsible, the ABC said.
Some witnesses said the attackers had used racial slurs before the attack, but racism was not an alleged motive in the court proceedings.
In the days after the killing, thousands of protesters held rallies and vigils around Australia.
At the time, Prime Minister Anthony Albanese said the attack was racially motivated, describing it as a “terrible tragedy.”
Aboriginal and Torres Strait Islander people face stark inequalities compared to other Australians, with shorter life expectancies, poorer health and education, and higher incarceration rates.
A fourth person charged over Turvey’s killing, Aleesha Gilmore, was cleared of both murder and manslaughter charges, court documents showed.

Pakistan shoots down Indian drone near naval base in the city of Lahore

Pakistan shoots down Indian drone near naval base in the city of Lahore
Updated 10 min 15 sec ago
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Pakistan shoots down Indian drone near naval base in the city of Lahore

Pakistan shoots down Indian drone near naval base in the city of Lahore
  • They spoke on condition of anonymity in keeping with departmental regulations
  • Local media reported that two additional drones were shot down in other cities in Punjab province, of which Lahore is the capital.

LAHORE, Pakistan: Pakistan’s air defense system shot down an Indian drone early Thursday near a naval air base in the eastern city of Lahore, Pakistani police and security officials said, as India evacuated thousands of people villages near the two countries’ highly militarized frontier in the disputed region of Kashmir.
The incident comes amid a crisis triggered a day after India launched strikes in Pakistan’s Punjab province and Pakistan-controlled Kashmir that killed 31 civilians, including women and children, according to Pakistani officials.
Tensions have escalated since April 22, when gunmen killed 26 people, mostly Indian Hindu tourists, in India-controlled Kashmir. India accused Pakistan of backing militants who carried out the attack, something Islamabad has denied.
Local police official Mohammad Rizwan said only that a drone was downed near Waltan airport, a small airfield in a residential area of Lahore that also contains military installations, about 25 kilometers (16 miles) east of the border with India.
Local media reported that two additional drones were shot down in other cities in Punjab province, of which Lahore is the capital.
Two security officials say a small Indian drone was taken down by Pakistan’s air defense system, speaking on condition of anonymity because they were not authorized to speak to media. It was not immediately clear whether the drone was armed.
The incident could not be independently verified, and Indian officials did not immediately comment.
India said its strikes Wednesday targeted at least nine sites in Pakistan linked to planning terrorist attacks against India.
In response, Pakistan’s air force shot down five Indian fighter jets, its military said.
Pakistani Prime Minister Shehbaz Sharif vowed overnight to avenge the killings but gave no details, raising fears of a broader conflict between the two nuclear-armed neighbors.
Across the de-facto border in Indian-controlled Kashmir, tens of thousands of people slept in shelters overnight, officials and residents said Thursday.
Indian authorities evacuated civilians from dozens of villages living close to the highly militarized Line of Control overnight while some living in border towns like Uri and Poonch left their homes on their own, three police and civil officials said. They spoke on condition of anonymity in keeping with departmental regulations.


Global temperatures stuck at near-record highs in April: EU monitor

Global temperatures stuck at near-record highs in April: EU monitor
Updated 08 May 2025
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Global temperatures stuck at near-record highs in April: EU monitor

Global temperatures stuck at near-record highs in April: EU monitor
  • Burning fossil fuels largely blamed for global warming that has made extreme weather disasters more frequent and intense
  • Scientists say the current period is likely to be the warmest the Earth has been for the last 125,000 years

PARIS: Global temperatures were stuck at near-record highs in April, the EU’s climate monitor said on Thursday, extending an unprecedented heat streak and raising questions about how quickly the world might be warming.
The extraordinary heat spell was expected to subside as warmer El Niño conditions faded last year, but temperatures have stubbornly remained at record or near-record levels well into this year.
“And then comes 2025, when we should be settling back, and instead we are remaining at this accelerated step-change in warming,” said Johan Rockstrom, director of the Potsdam Institute for Climate Impact Research.
“And we seem to be stuck there. What this is caused (by) — what is explaining it — is not entirely resolved, but it’s a very worrying sign,” he told AFP.
In its latest bulletin, the Copernicus Climate Change Service said that April was the second-hottest in its dataset, which draws on billions of measurements from satellites, ships, aircraft and weather stations.

All but one of the last 22 months exceeded 1.5 degrees Celsius above pre-industrial levels, the warming limit enshrined in the Paris agreement, beyond which major and lasting climate and environmental changes become more likely.


Many scientists believe this target is no longer attainable and will be crossed in a matter of years.
A large study by dozens of pre-eminent climate scientists, which has not yet been peer reviewed, recently concluded that global warming reached 1.36C in 2024.
Copernicus puts the current figure at 1.39C and projects 1.5C could be reached in mid 2029 or sooner based on the warming trend over the last 30 years.
“Now it’s in four years’ time. The reality is we will exceed 1.5 degrees,” said Samantha Burgess of the European Center for Medium-Range Weather Forecasts, which runs Copernicus.
“The critical thing is to then not latch onto two degrees, but to focus on 1.51,” the climate scientist told AFP.
Julien Cattiaux, a climate scientist at the French research institute CNRS, said 1.5C “would be beaten before 2030” but that was not a reason to give up.
“It’s true that the figures we’re giving are alarming: the current rate of warming is high. They say every 10th of a degree counts, but right now, they’re passing quickly,” he told AFP.
“Despite everything, we mustn’t let that hinder action.”

This photograph shows a general view of the Atacama Desert covered by flowers in Copiapo, Chile, taken on July 10, 2024. (AFP)

Scientists are unanimous that burning fossil fuels has largely driven long-term global warming that has made extreme weather disasters more frequent and intense.
But they are less certain about what else might have contributed to this persistent heat event.
Experts think changes in global cloud patterns, airborne pollution and Earth’s ability to store carbon in natural sinks like forests and oceans, could be factors also contributing to the planet overheating.
The surge pushed 2023 and then 2024 to become the hottest years on record, with 2025 tipped to be third.

Smoke pours from the exhaust pipes on a truck on November 05, 2019 in Miami, Florida. (AFP)

“The last two years... have been exceptional,” said Burgess.
“They’re still within the boundary — or the envelope — of what climate models predicted we could be in right now. But we’re at the upper end of that envelope.”
She said that “the current rate of warming has accelerated but whether that’s true over the long term, I’m not comfortable saying that,” adding that more data was needed.
Copernicus records go back to 1940 but other sources of climate data — such as ice cores, tree rings and coral skeletons — allow scientists to expand their conclusions using evidence from much further into the past.
Scientists say the current period is likely to be the warmest the Earth has been for the last 125,000 years.
 


US denounces Russian obstruction in UN sanctions on North Korea

US denounces Russian obstruction in UN sanctions on North Korea
Updated 08 May 2025
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US denounces Russian obstruction in UN sanctions on North Korea

US denounces Russian obstruction in UN sanctions on North Korea
  • US envoy charged that Russia's obstructions was its way to avoid facing reproach for using Pyongyang’s weapons in the war against Ukraine
  • Last year, Russia vetoed a Security Council resolution, ending the UN sanctions monitoring system for Pyongyang’s sanctions

NEW YORK CITY: At the United Nations Wednesday, the United States denounced Russia for “cynically obstructing” the monitoring of North Korea’s compliance with sanctions, in Moscow’s bid to avoid facing reproach for using Pyongyang’s weapons in the war against Ukraine.
Several members of the Security Council, including the US and South Korea, convened a meeting Wednesday to ensure member states are “aware of sanctions violations and evasion activity” that generates revenue for North Korea’s “unlawful” weapons of mass destruction and “ballistic missile programs despite Russia’s veto,” said interim US ambassador Dorothy Shea.
In March 2024, Russia vetoed a Security Council resolution, ending the UN sanctions monitoring system for Pyongyang’s sanctions.
Sanctions were implemented in 2006, and were strengthened several times by the Security Council, but the committee responsible for such monitoring no longer exists.
Shea alleges that since late 2023, North Korean has transferred over 24,000 containers of munitions and munitions-related material, and more than 100 ballistic missiles to Russia for use against Ukraine.
“The DPRK continues brazenly to violate the Council’s resolutions by exporting coal and iron ore to China, the proceeds of which directly fund its unlawful WMD and ballistic missile programs,” Shea said.
“It is clear from evidence presented today that Russia is cynically obstructing the Council on DPRK sanctions implementation in order to try to escape reproach for its own violations.”
South Korean Ambassador Joonkook Hwang agreed, denouncing the “illegal military cooperation between Russia and North Korea,” saying it has “severely undermined the Security Council sanctions regime on North Korea and threatens regional and global peace and security.
In May 2022, Russia and China vetoed a resolution imposing new sanctions against Pyongyang, and have advocated for easing sanctions since 2019.
The current sanctions on North Korea have no end date.
 


China’s BYD, Tsingshan scrap plans for Chile lithium plants as prices plunge

China’s BYD, Tsingshan scrap plans for Chile lithium plants as prices plunge
Updated 08 May 2025
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China’s BYD, Tsingshan scrap plans for Chile lithium plants as prices plunge

China’s BYD, Tsingshan scrap plans for Chile lithium plants as prices plunge
  • Retreat a blow to Chile’s aim to develop more domestic processing of lithium
  • Chile is the world’s no. 2 producer of the key metal for electric vehicle batteries

SANTIAGO: Chinese automaker BYD and metals group Tsingshan are backing out of multi-million dollar plans to build lithium cathode plants in Chile, the country’s economic development agency said on Wednesday.
The retreat by the two huge Chinese companies is a blow to Chile’s aim to develop more domestic processing of lithium, a key metal for electric vehicle batteries. Chile is the world’s no. 2 lithium producer.
Both projects were hit by plunging lithium prices, said government economic development agency Corfo, which in 2023 had tapped BYD and Tsingshan for a preferential lithium price deal as part of its efforts to spur investment in Chile.
“The companies selected by Corfo have been affected in their investment decisions by the global market conditions, which have shown a sharp drop in prices,” Corfo said in a statement.
Tsingshan told Reuters it has withdrawn plans for a $233 million project to produce 120,000 metric tons of lithium iron phosphate (LFP). Chile’s national assets ministry told Reuters that BYD filed an intent to withdraw its plans in January.
BYD, the world’s biggest maker of electric cars, declined to comment. BYD last year flagged delays to a planned $290 million plant, which was expected to produce 50,000 metric tons per year of LFP for cathodes.
Chilean newspaper Diario Financiero first reported the scrapped investments.
Chile’s effort in 2018 to encourage lithium-related investments via a pricing deal also fell apart. Chilean chemical company Molymet, China’s Sichuan Fulin Transportation Group Co. , and a joint venture between Korean firms Posco and Samsung for various reasons withdrew their plans.
Tsingshan and BYD would have had access to preferential prices of lithium produced by Chilean miner SQM through 2030, a timeframe that Corfo said also may have influenced the withdrawal of the projects.
In addition, Corfo said Tsingshan had wanted to assign the project development to a unit of the company that had not participated in the bidding process, which Corfo said was not possible.
Corfo last week opened a second bidding process for a similar scheme, this time to provide a purchasing deal with US lithium producer Albemarle through 2043 for companies that commit to lithium-related projects.
Albemarle and the selected investors will be able to use an “alternative form” to determine a price agreement, Corfo said.