Morning Brief: Growth To Drop To Four-Year Low Of 6.4 Per Cent In FY25; Atmanirbharta Will Come At A Cost, And We Must Accept It—IAF Chief After China Unveils New Fighters; And More

Catch up on the day’s must-read stories with Swarajya's roundup of the morning's headlines.

Growth Likely To Drop To Four-Year Low Of 6.4 Per Cent In FY25

India’s economy is projected to grow at 6.4 per cent in FY25, marking its lowest growth rate in four years and a sharp decline from 8.2 per cent in FY24, according to the government’s first advance estimates. The slowdown is attributed to weaker performance across all sectors, including industry and services. This estimate is lower than the RBI’s revised projection of 6.6 per cent and the Finance Ministry’s forecast of 6.5 per cent.

While per capita nominal GDP is expected to increase by Rs 35,000 compared to FY23, the farm sector is projected to grow at 3.8 per cent, a significant improvement from 1.4 per cent last year. However, industrial growth is expected to dip to 6.2 per cent, and the service sector will grow at a slightly slower rate of 7.2 per cent, with investment growth also slowing to 6.4 per cent from 9 per cent the previous year.

“Atmanirbharta Will Come At A Cost, And We Should Accept It': IAf Chief

China's recent unveiling of two new-generation stealth fighter jets has stunned the world, highlighting the country's rapid military modernisation. On Tuesday, Air Chief Marshal A P Singh cited this development to highlight the urgent need for India to push for self-reliance in defence R&D and production despite higher costs, saying, “Atmanirbharta will come at a cost, and we should accept it.” While China already operates 5th-generation Chengdu J-20 jets, India remains far behind, having only recently begun work on its first 5th-generation fighter, the AMCA, approved last year at Rs 15,000 crore.

Stressing the importance of timely innovation, Singh remarked, “R&D loses its relevance in case it is not able to meet timelines. Technology delayed is technology denied.” He called for a greater willingness to accept risks and failures in R&D to ensure India’s defence capabilities keep pace with global advancements.

Other Developments

New RBI Chief Faces Rupee Policy Dilemma Amid Dollar Surge

The new Reserve Bank of India (RBI) chief faces a critical decision on how to manage the rupee’s exchange rate amidst a surging dollar. Former RBI Governor Shaktikanta Das focused on reducing currency volatility to provide stability for both foreign investors and local businesses. However, critics argue that his policy effectively pegged the rupee to the dollar, hurting India's export competitiveness during a period of slowing growth.

With the leadership change, speculation has arisen about whether the RBI will adopt a more flexible approach to the rupee’s value. Signs suggest that Sanjay Malhotra, the new governor, may allow the rupee to fluctuate more naturally, as its volatility reached a one-year high in December due to the dollar’s continued rally.

British Indians Condemn 'Asian Grooming Gangs' Label

British Indians have expressed outrage` at the use of the term "Asian grooming gangs" by UK Prime Minister Keir Starmer and the media in discussions on sexual grooming. They argue that this broad term unfairly implicates them in crimes committed by predominantly Pakistani offenders. Hindu Council UK criticised the PM for whitewashing the issue and pointed out that Hindu and Sikh girls were also victims. The Network of Sikh Organisations also condemned the vague labelling, emphasising that it reflects a reluctance to openly address the ethnic and religious identity of the majority of offenders.

Trump Threatens 'Economic Force' To Make Canada 51st State

US President-elect Donald Trump threatened to use "economic force" to pressure Canada into becoming the 51st state, citing concerns about US military assistance and trade imbalances. He proposed imposing substantial tariffs on goods from Canada and Mexico, emphasizing the economic security of the US.

Trump remarked that absorbing Canada would be a significant move but also hinted at the strain of ongoing cooperation. When questioned about a potential military confrontation over Greenland or the Panama Canal, Trump declined to rule it out, citing economic security needs. In response, Canadian Prime Minister Justin Trudeau dismissed Trump's threat, stating that there was "no chance in hell" of Canada joining the US, with his government considering counter-tariffs if Trump follows through.

From The States

Congress Faces Tough Challenge In Uttarakhand Civic Polls

As Uttarakhand prepares for urban local body polls on January 23, political tension is rising between the ruling BJP and the opposition Congress. The elections will cover 11 municipal corporations, 43 municipal councils, and 46 nagar panchayats. The Congress party suffered a blow last Saturday when its vice-president (organization) Mathura Dutt Joshi, along with former MoS Bittu Karnatak and ex-Pithoragarh Nagar Palika Parishad chairman Jagat Singh Khati, defected to the BJP.

Despite a poor performance in the April-June Lok Sabha elections, where the Congress lost all five seats to the BJP, the party managed to secure two Assembly bypoll wins in July 2024 in Badrinath and Manglaur. However, the BJP regained momentum with a victory in the Kedarnath bypoll in November, further strengthening its position.

Delhi CM Bungalow Row Escalates As Poll Dates Are Announced

Political tensions erupted in Delhi after the Election Commission announced the dates for the upcoming Assembly polls, with Chief Minister Atishi accusing the BJP of orchestrating a vendetta to remove her from her official residence at 6 Flag Staff Road. Atishi alleged that the Public Works Department (PWD) issued her an eviction notice just a day before the polling schedule for Delhi Elections was revealed.

The controversy over her residence dates back to October 2024, when AAP claimed her belongings were forcibly removed by order of Delhi Lieutenant Governor. The BJP rejected the accusations, with BJP leader Amit Malviya asserting that Atishi misled the public and refused to move into the bungalow to avoid offending her predecessor, Arvind Kejriwal. The political battle continues to heat up.

Ajit Pawar's Faction Targets Sharad Pawar's MPs For Defection

In what could deepen the rift within the Sharad Pawar-led Nationalist Congress Party (NCP), leaders from the Ajit Pawar faction reportedly approached seven of its eight sitting MPs in late December with an offer to join their camp. The proposal suggested that all MPs, except Sharad Pawar and his daughter Supriya Sule, would be welcomed into the Ajit Pawar-led faction. However, the offer was quickly rejected, and reports claim that Sharad Pawar was angered by the move and reprimanded Ajit Pawar's leaders.

The proposal, which came from senior figures in the Ajit Pawar camp, sparked speculation about the NCP's future, especially after its poor performance in the recent Assembly elections. In response, Sharad Pawar is said to have contacted senior leaders of the Ajit Pawar faction, urging them to cease their attempts to further divide the party.

Follow along for more updates throughout the day.