News Brief
Your morning briefing is here.
Catch up on the day’s must-read stories with Swarajya's roundup of the morning's headlines.
Deals For 400 Defence Drones Scrapped Over Chinese Parts
The government has scrapped three contracts for 400 logistics drones after finding Chinese components in them. These contracts, worth over Rs 230 crore, were signed in 2023 with a Chennai-based firm under emergency procurement for Army deployment along the LAC. The move is part of a broader effort to prevent military drones from containing Chinese electronics or malicious codes. The cancelled deals included 200 medium-altitude, 100 heavy-weight, and 100 light-weight drones. The defence establishment is also implementing stricter mechanisms to ensure future drone acquisitions are free of Chinese parts.
PM Modi Blames Congress For 'Hindu Rate of Growth' Label
PM Modi on Thursday accused Congress of hindering India's growth in the first four decades after Independence, highlighting its role in fostering the "Hindu rate of growth." The term, coined by economist Raj Krishna, was used globally to describe India's weak economic performance and was unfairly tied to the Hindu community. Modi slammed Congress for its governance failures, corruption, and incompetence, which he claimed led to a stagnating economy. The Prime Minister also criticized Congress-era policies, recalling a time when buying a scooter or obtaining a gas connection was a long and arduous process. He attributed India's entrepreneurial stifling to the 'licence raj' and government-controlled markets, which he argued were finally dismantled under his leadership.
World's Largest Sovereign Wealth Fund Boosts India Portfolio
Norway’s Government Pension Fund Global, the world’s largest sovereign wealth fund, increased its investments in India in 2024 despite market volatility. The number of Indian companies in its portfolio rose from 449 to 550, with its India equity investments reaching $30.8 billion, a 28 per cent increase from the previous year. Its top holdings include HDFC Bank ($2 billion), Reliance Industries ($1.5 billion), and major stakes in ICICI Bank, Bharti Airtel, and Infosys. Financials remained the fund’s largest sector investment in India at $9.2 billion, followed by consumer ($5.6 billion) and technology ($3.5 billion). While its China equity investments were valued at $40.69 billion, India held the second-largest weight in the MSCI EM index at 19.4 per cent, behind China’s 27.8 per cent.
Other Developments
Centre Ties Health Mission Funding To Quality Standards
The Centre has now made funding for states and Union territories under the National Health Mission (NHM) dependent on the certification of their government health facilities for quality standards. The Union health ministry emphasised the importance of National Quality Assurance Standards (NQAS) certification at regional conferences last year, including in Shillong, Srinagar, and Vijayawada.
As of December 31, only 22,787 of the 175,000 health facilities, such as district hospitals and primary health centers, had received NQAS certification. A 2018 Lancet report highlighted that poor healthcare quality in India leads to 1.6 million deaths annually, with improved healthcare quality potentially saving 60 per cent of these lives.
US Revokes Sanctions Waiver For India's Chabahar Port Project
US President Donald Trump has revoked sanctions waiver related to Iran's Chabahar Port, where India holds management rights for 10 years. The move, aimed at increasing pressure on Iran, is expected to hurt Afghanistan and other US regional partners, including their counterterrorism efforts. While the decision may not significantly impact Iran, it could disrupt US-aligned efforts in counterterrorism and narcotics control. A White House memorandum stated that the administration will tighten sanctions to curb Iran’s nuclear threat, missile program, and support for terrorist groups. India is assessing the implications, and the issue may be discussed during Prime Minister Narendra Modi’s upcoming meeting with Trump at the White House.
US President Donald Trump stated that Israel would hand over Gaza to the United States after the fighting ended and its population was resettled elsewhere, ensuring no US troops would be needed. His remarks followed global criticism of his plan to transform Gaza into the "Riviera of the Middle East," prompting Israel to prepare for the “voluntary departure” of Palestinians. Israeli Defence Ministersupported the proposal, announcing plans to facilitate Gaza residents' exit via land, sea, and air. Trump's plan stirred anger across the Middle East, with Saudi Arabia rejecting the idea and Jordan’s King Abdullah opposing any displacement of Palestinians. Meanwhile, Israel and Hamas were set to begin ceasefire talks in Doha, aiming for an Israeli withdrawal.
From The States
Delhi: Two More Exit Polls Predict BJP Victory
The BJP is projected to return to power in Delhi, with two more exit polls, Today's Chanakya and CNX, predicting a clear victory over the ruling AAP. Earlier, six other polls, including Chanakya Strategies, P Marq, and People’s Pulse, gave BJP+ a clear edge, with seat estimates ranging from 39 to 60. However, two exit polls, Matrize and D V Research, indicated a tight race, while three others, including Mind Brink Media and Wee Preside, forecasted an AAP win. These projections suggest a major setback for AAP and its leader Arvind Kejriwal, who resigned as Chief Minister last year amid corruption charges. However, past election results have shown that exit polls often miss the mark.
SC Questions TN Governor's Withholding of Bill Assent
The SC has observed that the Tamil Nadu governor appeared to have adopted his own procedure in withholding assent to several state Bills. The court noted that he withheld assent just days after the court had clarified in a Punjab-related case that governors must decide on Bills without delay. The DMK government has challenged the governor’s actions, arguing that his indefinite withholding of assent effectively nullifies a constitutional proviso. The court questioned whether the governor’s move amounted to a “pocket veto” and asked for records justifying his decision.
Senior lawyers contended that the governor acted arbitrarily, while the court acknowledged the argument that his role should be advisory.
Shinde’s Defiance Puts BJP's Patience To Test
Eknath Shinde, the Shiv Sena president and Maharashtra's Deputy Chief Minister, continues to stir tension within the BJP-led Mahayuti coalition. Despite being a key ally, Shinde skipped a crucial "war room" meeting called by Chief Minister Devendra Fadnavis to discuss key projects in health, housing, and water supply, which were under Shiv Sena's jurisdiction. Shinde also missed the Cabinet meeting last week and canceled several official engagements, including those related to his Housing and Urban Development portfolios. Meanwhile, Ajit Pawar, the NCP chief and another Deputy CM, attended the meeting. Shinde’s frustration stems from being denied the CM position, which led him to reluctantly accept the Deputy CM role after the Mahayuti's victory in December.
Karnataka HC's Verdicts On Siddaramaiah, Yediyurappa Today
The Karnataka High Court is set to deliver verdicts on two politically important cases involving Congress Chief Minister Siddaramaiah and former BJP Chief Minister B S Yediyurappa. Justice M Nagaprasanna will pronounce the verdict on a plea by an RTI activist seeking a CBI investigation into alleged corruption by Siddaramaiah and his family regarding land allotments by the Mysore Urban Development Authority in 2021. The Karnataka Lokayukta police had already conducted an investigation into this matter. Additionally, the same bench will rule on a plea by Yediyurappa to quash a case filed against him under the Protection of Children from Sexual Offences (Pocso) Act, for which a chargesheet has been filed by the Karnataka Police.
Follow along for more updates throughout the day.