Morning Brief: PM Modi Tears Into Opposition; India Inc's Cash Reserves Surge 35 Per Cent In Two Years; First MPC Meet Under New RBI Chief; Trump Wants Gaza; And More

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

PM Modi Tears Into Opposition In LS Speech

Prime Minister Narendra Modi unleashed a blistering attack on the opposition in Parliament on Tuesday (5 February). Just hours before Delhi goes to polls, he took a direct swipe at Arvind Kejriwal, mocking leaders obsessed with "Jacuzzis and stylish showers"—a pointed reference to allegations of Kejriwal’s Rs 45 crore bungalow renovation. Contrasting this with his government’s achievements, Modi highlighted the provision of tap water to 12 crore families and slammed AAP for abandoning its pre-poll promises. Turning to the Congress, he ridiculed its decades-old ‘garibi hatao’ slogan, declaring that under BJP rule, 25 crore people had actually been lifted out of poverty.

Gathering momentum, Modi tore into opposition leaders for staging "photo ops" in poor neighborhoods while ignoring real development. He also revived an attack on former Prime Minister Rajiv Gandhi, recalling his infamous admission that only 25 paise of every rupee meant for the poor reached them, and thundered that his government had directly transferred Rs 40 lakh crore into beneficiaries' accounts.

India Inc's Cash Reserves Surge 35 Per Cent In Two Years

India Inc. has significantly increased its cash reserves over the past two years, driven by cost optimisation efforts and cautious spending on capacity expansion amid uncertain demand. A BusinessLine analysis shows that the aggregate cash and cash equivalent balances of Nifty500 companies rose by 35 per cent, from Rs 10.6 lakh crore in September 2022 to Rs 14.3 lakh crore in September 2024.

Reliance Industries leads with Rs 2.15 lakh crore in cash reserves, accounting for 15 per cent of the total cash held by Nifty500 companies. Other major cash-rich firms include L&T, Tata Motors, TCS, and Wipro. Among the top 10 companies with the highest reserves, Interglobe Aviation, Reliance, and Hindustan Aeronautics saw the most growth in cash balances. The trend reflects companies' reluctance to reinvest profits into new projects.

First MPC Meet Under New RBI Chief Today

The newly appointed RBI Governor Sanjay Malhotra will lead his first Monetary Policy Committee (MPC) meeting today (5 February), where experts anticipate a repo rate cut to stimulate growth amid weak consumption. The benchmark interest rate has remained unchanged at 6.5 per cent since February 2023, with the last rate cut occurring in May 2020 during the COVID-19 pandemic. The MPC’s decision on the potential 25-basis-point reduction will be announced on February 7, 2025. Bank of Baroda’s Chief Economist Madan Sabnavis believes a rate cut is likely, especially after the central bank’s recent liquidity injection. Last month, the RBI introduced measures to infuse Rs 1.5 lakh crore into the banking system, which many see as a signal for an impending rate reduction.

Other Developments

Trump Proposes US 'Ownership' Of Gaza Strip

US President Donald Trump suggested that the US government should have a "long-term ownership position" over the Gaza Strip. Israeli Prime Minister Benjamin Netanyahu, speaking alongside Trump, said the idea was worth considering.

Trump also reiterated his call for the displacement of Palestinians from Gaza, saying they had no choice but to leave the war-ravaged enclave. He suggested that Jordan and Egypt take in Gazans while the territory is rebuilt. Trump emphasized his support for permanently resettling Palestinians, an idea previously rejected by Arab states and the Palestinian Authority. His remarks came as Gaza remained devastated after nearly 16 months of conflict between Israel and Hamas.

China Launches Antitrust Probe Into Google

China has launched an antitrust probe into Google, coinciding with retaliatory tariffs imposed by the Chinese government after the US introduced 10 per cent tariffs on Chinese products. China’s antitrust watchdog cited suspected violations of the country’s antitrust laws but did not specify the details in its announcement. This action is part of China’s broader response to US tariffs, which also included new tariffs on coal, natural gas, crude oil, agricultural machinery, and pickup trucks. Additionally, China’s Ministry of Commerce imposed fresh export controls on several metals. This follows a pattern of escalating scrutiny of US companies, as seen with the investigation into Nvidia.

'In No Rush' To Speak To Chin's Xi, Says Trump

US President Donald Trump dismissed China's retaliatory tariffs following Washington’s 10 per cent levy on Chinese imports, stating he is “in no rush” to speak with President Xi Jinping. When asked about Beijing’s response, he told reporters, “That’s fine. It’s fine,” and insisted the US would prevail in trade disputes. Trump criticized the Biden administration, claiming China had taken advantage of it and was using American money to build its military. US government data shows America’s trade deficit with China stood at $270 billion in 2024, down from $279 billion in 2023.

From The States

FIR Against Kejriwal On Eve Of Delhi Polls

A day before the Delhi Assembly elections, Haryana police filed an FIR against AAP leader Arvind Kejriwal over his remarks accusing the BJP-led Haryana government of poisoning the Yamuna. The case, registered in Kurukshetra based on a complaint by advocate Jagmohan Manchanda, cites multiple sections of the Bharatiya Nyaya Sanhita (BNS) Act. The FIR states that Kejriwal’s statement, made on January 28 and circulated in a viral video, contained provocative and baseless allegations against Haryana and its government. This action follows repeated directives from the Election Commission asking Kejriwal to provide evidence for his claim.

Maharashtra: EC Data Contradicts Rahul Gandhi’s Voter Claims

Rahul Gandhi alleged in Parliament that 70 lakh voters were added to Maharashtra’s rolls in five months and that 7,000 voters were registered from a single building in Shirdi. However, Election Commission data shows that only 40.81 lakh electors were added between the 2024 Lok Sabha and Assembly polls, with 1.22 crore added since 2019. His claim about Shirdi voters echoes an earlier Congress complaint, but that complaint mentioned bogus registrations in specific areas, not one building. The issue was raised before the finalisation of the electoral roll in August 2024.

Gujarat Forms Panel On UCC

The BJP government in Gujarat has announced the formation of a committee to evaluate the need for a Uniform Civil Code (UCC) and draft a bill. Chief Minister Bhupendra Patel stated that the committee will submit its report within 45 days and reaffirmed the government's commitment to implementing a nationwide UCC. This comes just days after Uttarakhand recently became the first state in the country to rollout UCC. 

Follow along for more updates throughout the day.