Morning Brief: 'One Nation, One Election' Expected In Modi 3.0: Reports; Census Prep Begins, But Decision On 'Caste Count' Pending; Tata Plans Two More Semiconductor Fabs

Dear Reader, start your day informed with our quick roundup of key news and updates.

'One Nation, One Election' To Be In Modi 3.0, Say Reports 

The One Nation One Election idea, long debated in Parliament, will be implemented during the current tenure of the Narendra Modi government, reports have revealed. Prime Minister Modi had highlighted the need for this in his Independence Day speech, emphasising the need to streamline the electoral process. A committee led by former President Ramnath Kovind has proposed simultaneous elections for the Lok Sabha and state assemblies, with local body polls to follow within 100 days.

The Law Commission is expected to support this, recommending aligned elections for all three government tiers starting in 2029 and provisions for a unity government in certain scenarios. The Opposition has voiced concerns about constitutional issues. Government sources remain hopeful for a consensus to move forward with the plan.

Census Prep Begins, But Decision On 'Caste Count' Pending

The Centre has said that it has begun preparations for the census, with an announcement expected soon, and remains open to the idea of including a caste column, according to a report in the Times of India. This will be the first time the government has publicly acknowledged the possibility of such inclusion since the census was last conducted with a caste column in 1931. Opposition parties and BJP allies have called for a caste count, while the RSS supports it if used for welfare rather than political purposes.

The census was originally scheduled to start in April 2020 but was delayed due to Covid-19. The implementation of the Women's Reservation Act is tied to the census data.

Tata Plans Two More Semiconductor Fabs

Tata Electronics plans to establish two additional semiconductor fabs in Dholera, Gujarat, aiming to build chips locally and meet global demand. Partnering with Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) for the initial Rs 91,000-crore phase, Tata will decide on the timing and partners for the subsequent fabs based on the first fab's progress and market needs. The second phase of development is expected to start in five to seven years, with the first fab slated to produce chips by 2026. The new fabs will match the scale of the first, with technology and nodes to be determined.

Foundation work for the first fab is underway, with production expected to include power management circuits, display drivers, and other high-tech components. At full capacity, the fab will produce up to 50,000 wafers monthly.

Other Developments

Trump Survives Second Assassination Attempt

Two months after being shot at an election rally, former US President Donald Trump survived a second assassination attempt while golfing in Florida on Sunday. Trump confirmed he is “safe and well” following the incident, which the FBI is investigating as an apparent assassination attempt. The shooting occurred when a Secret Service agent spotted a rifle barrel in the bushes and engaged the suspect, who was 300 to 500 yards away from Trump. The Palm Beach County Sheriff reported that agents fired at the man, who was found with a rifle. Trump was moving between holes at the time.

Credit Growth Moderates, Narrowing Gap With Deposits

The gap between non-food credit and deposit growth in Indian banks decreased from 3.11 percentage points on July 26 to 2.75 percentage points on August 23, according to the Mint, citing Reserve Bank of India data. As of August 23, credit growth was at 13.6 percent year-on-year, while deposits grew by 10.8 percent. This shift is significant as credit growth had previously outpaced deposit growth. With recent regulatory measures taking effect and banks moderating their lending, the gap is narrowing. Credit growth is expected to continue its downward trend for the remainder of the financial year.

Govt To Study Quick Commerce Purchases for Economic Insights

The government is considering analyzing purchases made on quick commerce platforms to understand shifts in consumption patterns and economic activity. This move is part of a broader effort to update the base year for national accounts and other official statistics. Quick commerce, which has seen significant growth with players like Zepto, Blinkit, and Swiggy Instamart, now accounts for 5-6 per cent of household grocery spending.

China To Raise Retirement Age For First Time Since 1950s

China will "gradually raise" its retirement age for the first time since the 1950s in response to an aging population and a shrinking pension fund. The plan is to increase the retirement age from 50 to 55 for women in blue-collar jobs and from 55 to 58 for women in white-collar roles. Men’s retirement age will rise from 60 to 63.

The changes, set to begin on January 1, 2025, will be implemented incrementally over the next 15 years. Early retirement will not be permitted, though individuals can delay retirement by up to three years.

Starting in 2030, workers will need to contribute more to the social security system, and by 2039, they will need 20 years of contributions to qualify for pensions.

From The States

Mayawati Fires 59-Page Salvo Against Akhilesh

Five years after their failed 2019 Lok Sabha election alliance, the Samajwadi Party (SP) and Bahujan Samaj Party (BSP) are blaming each other for their breakup. Mayawati shared a 59-page booklet recounting her “unpleasant experience,” accusing Akhilesh of ignoring her calls after the election. She claimed that BSP’s self-respect led to the split. Akhilesh responded by saying he had tried to contact Mayawati for clarification.

The SP and BSP, along with Jayant Chaudhary's RLD, had contested the polls together. While the SP contested 37 seats, the BSP and the RLD contested 38 and 3 seats respectively. The alliance crumbled soon after the disappointing election results.

Kejriwal’s Plan To Step Down Stirs Early Election Talk

Delhi Chief Minister Arvind Kejriwal, just days after his release on bail granted by the Supreme Court, has announced his intention to resign, leading to speculation about early elections in Delhi. Kejriwal stated he will step down until the people of Delhi pass their judgment, and he plans to return only if elected by them. He has called for the Delhi elections to be held in November, alongside the polls in Maharashtra. The Aam Aadmi Party (AAP) will convene within two days to select a new Chief Minister. 

Maharashtra Polls Expected By November Second Week: Shinde

Maharashtra Chief Minister Eknath Shinde has said that state assembly elections are likely to be held in the second week of November. He also mentioned that seat-sharing among the ruling allies would be finalized in the next 8 to 10 days. Shinde suggested that a two-phase election might be preferable for the 288-member assembly. The government, comprising the Shiv Sena, BJP, and Ajit Pawar-led NCP, is focusing on welfare, with a recent initiative to provide job training and stipends to 1.5 lakh youths.

Engineer Rashid, Jamaat Form Alliance For J-K Elections

In a major political move, Engineer Rashid’s Awami Ittehad Party (AIP) and former Jamaat-e-Islami (JEI) members have formed an alliance for the Jammu and Kashmir assembly polls. The banned JEI, whose leaders are contesting independently, last contested in 1987 under the Muslim United Front. Their candidates held a rally this month, marking the first political activity since 1987. Despite the ban, three former JEI members are running as independent candidates in the Union Territory.

Stay tuned for more insights through the day.