Morning Brief: India Puts Bangladesh On Notice Over Hostile Rhetoric, FII Outflows Hit Rs 1.1 Lakh Crore In 2025, Bullet Train Project Faces More Delays, And More

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

India Puts Bangladesh On Notice Over Hostile Rhetoric

India has issued a sharp warning to Bangladesh, with External Affairs Minister S. Jaishankar stating that Dhaka cannot claim to want good relations while blaming India for its internal issues. Days after meeting his Bangladeshi counterpart in Muscat, Jaishankar called out the absurdity of these daily accusations, making it clear that such hostility is unacceptable. He also slammed the ongoing communal attacks on minorities in Bangladesh, emphasizing that India cannot remain silent on the matter. Pointing to the long and special history between the two nations, he said ties cannot be built on constant finger-pointing. Jaishankar made it clear that Bangladesh must decide whether it wants genuine cooperation or to continue its rhetoric against India.

FII Outflows Hit Rs 1.1 Lakh Crore In 2025

Foreign institutional investors (FIIs) have aggressively sold Indian equities in 2025, offloading Rs 1.1 lakh crore by February 21, leading to a 4 per cent drop in Nifty year-to-date. Analysts attribute the outflows to rising US capital inflows post-Trump’s election and renewed interest in undervalued Chinese stocks, with the Hang Seng index surging 18.7 per cent in a month. India’s high valuations and weak corporate earnings have triggered profit booking, while upcoming IPOs like Reliance Jio and Zepto are expected to divert liquidity from the secondary market. The Sensex has lost 2,300 points, with FIIs pulling out Rs 23,000 crore, leading to sharp corrections in small and midcap stocks.

Bullet Train Project Faces More Delays

The Mumbai-Ahmedabad high-speed rail corridor is facing delays due to the unavailability of trains from Japan and late tendering, BusinessLine reported. Initially slated for completion in 2022 and later 2024, sections of the project were expected to be operational by August 2027. However, new train models are now expected to arrive only around 2033. A progress report indicates that construction is at 49.09 per cent, falling short of the target of 62.2 per cent as of January 2025. Delays in Maharashtra, caused by slow land acquisition, postponed tenders, and disruptions during the Covid-19 pandemic, have further slowed the project. Officials also point to delays in awarding key system and rolling stock contracts from the Japanese side as a major hurdle.

Other Developments

Panchayat Devolution Index- Key Findings

The Panchayat Devolution Index for 2024 is out. Prepared by the Ministry of Panchayati Raj based on a study by the Indian Institute of Public Administration, the report assessed 172 panchayats across 68 districts. 

1. Karnataka, Kerala, and Tamil Nadu topped the 2024 Panchayat Devolution Index, while Manipur, Arunachal Pradesh, and Jharkhand ranked the lowest.

2. Uttar Pradesh and Bihar recorded the most improvement in their Panchayat Devolution Index scores over the past decade.

3. Maharashtra, despite being among the top states, is the only one in the top 10 to have declined in panchayat performance over the decade.

4. Odisha had the highest proportion of women in panchayat representation at 61.51%, while Uttar Pradesh had the lowest at 33.33% (state’s rules provide for only one-third reservation for women).

5. Funding remains a major challenge, with only Rs 10,761 crore of the allocated Rs 47,018 crore for 2023-24 being released by November 2023.

Germany To Get New Chancellor

Friedrich Merz, leader of Germany's conservative Christian Democratic Union (CDU), is poised to become the next chancellor following the party's victory in the recent federal election. The CDU/CSU alliance secured approximately 28.5 per cent of the vote, surpassing the Social Democratic Party (SPD) of outgoing Chancellor Olaf Scholz, which garnered 16.4 per cent, marking its worst performance in modern history.

Merz has called for the formation of a "grand coalition" with the SPD to establish a stable government, explicitly ruling out any collaboration with the far-right Alternative for Germany (AfD). The AfD achieved a historic 20.8 per cent of the vote, becoming the second-largest party, with significant gains in former East German states. The surge reflects a shift in Germany's political landscape.

Zelenskyy Open To Resigning If It Secures NATO Membership

Amid attacks from US President Donald Trump, who called him a “dictator without elections,” Ukrainian President Volodymyr Zelenskyy said he was willing to step down if it ensured peace for Ukraine, even suggesting he could trade his position for NATO membership. He defended Ukraine’s martial law, enforced since Russia’s invasion, and stressed the need for US security guarantees. Zelenskyy also expressed hope that Trump would offer more than just mediation between Kyiv and Moscow. He also addressed ongoing negotiations with Washington over US access to Ukrainian natural resources in exchange for security assistance. Rejecting Trump’s claim that Ukraine owes the US $500 billion in wartime aid, he maintained that grants should not be treated as loans.

Musk Vs Patel: MAGA Allies Split Over Federal Job Purge

A rift has emerged between Trump appointees and MAGA stars Elon Musk and FBI Director Kash Patel over a federal workforce review. Musk, leading a new government efficiency push, emailed all federal employees demanding a summary of their weekly work, stating that failure to respond would be considered a resignation. Patel pushed back, instructing FBI personnel to ignore the directive, asserting that internal reviews would follow bureau procedures. Trump backed Musk, calling him a “patriot” and urging him to be even more aggressive. This is the first time a rift has emerged between two of Trump’s appointees who are both very popular among the president’s MAGA base.

From The States

Kerala: Tharoor Keeps Congress Guessing

Facing criticism for praising both PM Modi and Kerala’s LDF government, Shashi Tharoor said he remains with Congress but has “options” if the party doesn’t need him. Speaking on a podcast, he dismissed rumours of switching sides, saying he never saw himself as a politician. His praise for Kerala’s governance and Modi’s diplomacy has reportedly upset Congress leaders. Tharoor said the party must expand its base in Kerala to attract new voters. He also pointed out the lack of a strong leader in the state unit. The four-time Thiruvananthapuram MP had met Rahul Gandhi last week.

Punjab: Police Stations Turn Into Bunkers

Police stations in Punjab’s two border districts - Amritsar and Gurdaspur - have ramped up security with metal sheets, barbed wires, and armoured tractors following a series of grenade attacks since December 2024. With 12 grenades hurled at police posts and officers' residences, entry gates now shut by 10 pm, and barricades restrict public movement. While no injuries have been reported, the Babbar Khalsa International (BKI) and Khalistan Zindabad Force (KZF) have claimed responsibility. Authorities are leaving nothing to chance as tensions rise along the border.

Maharashtra: Mahayuti Cracks Widen Amid MSP Row

The BJP-led Mahayuti government in Maharashtra has escalated tensions with ally Eknath Shinde’s Shiv Sena by targeting a key decision from the previous administration. Citing “irregularities” in MSP schemes and crop procurement, the state has set up a panel to draft a new policy. The move, led by BJP’s Marketing Minister Jaykumar Rawal, follows complaints of corruption and extortion by procurement agencies approved earlier. The six-member committee will review the implementation of the PM-AASHA scheme and recommend reforms.

Follow along for more updates throughout the day.