India Last Week #44
A round-up of research & reportage on India across climate, energy, foreign policy, politics & more over the last week
Climate, Energy & Environment –
“The union ministry of tribal affairs (MoTA) has effectively scrapped guidelines that were meant to enable the recognition of rights over forest land for purposes of habitation, livelihood and socio-cultural needs of two communities—pastoralists and particularly vulnerable tribal groups (PVTGs)… Scrapping the guidelines renders these communities vulnerable to loss of access to forest land and resources such as medicinal plants, roots and tubers, bamboo and honey. At present, there are about 70 pastoral communities in India comprising around 13 million people. Indian pastoral communities own very small land holdings or none, and practise a wide variety of herding systems, including grazing in forests or on uncultivated land. Many of them are also semi-nomadic… Eight years after the FRA was enacted, a study commissioned by the UNDP, at the behest of the MOTA, found that the process of filing claims for habitat rights and granting these rights had been marred by a lack of clarity including among government officials about the concept and meaning of ‘habitat’.” Read more: Rishika Pardikar, Article 14
“Union minister of state (Independent Charge) for science and technology and earth sciences Jitendra Singh informed the Lok Sabha that India’s nuclear power generation capacity has reached 35,333 MW, up from 22,480 MW in 2014, while installed capacity has doubled from 4,780 MW to 8,888 MW in the same period. Addressing a parliamentary discussion on nuclear power plants, he reaffirmed the government’s commitment to expanding nuclear energy capacity, ensuring safety compliance, and allowing private sector participation. Singh highlighted the increasing geographical spread of India’s nuclear infrastructure, citing the operationalization of a previously inactive unit in Rajasthan and the announcement of a new reactor in Gorakhnagar, Haryana. He said Rajasthan currently houses seven of the country’s 25 operational nuclear reactors. Traditionally, Tamil Nadu, Andhra Pradesh, Maharashtra and Gujarat have hosted the majority of nuclear installations.” Read more: Saurav Anand, EnergyWorld
“Less than 1 per cent of the Rs 858 crore allocated to the Ministry of Environment, Forest and Climate Change for the ‘Control of Pollution’ scheme in the financial year 2024-25 has been utilised so far, according to a report tabled in Parliament Tuesday. The department-related standing committee on science and technology, environment, forests and climate change expressed its shock in the Demands for Grants (2025-26) report and asked the ministry to “introspect” and take serious note of the reasons for the gross underutilisation… “…the committee is shocked to note that amount to the tune of Rs 858 crore allocated for ‘Control of Pollution’, which is 27.44 percent of the annual RE (revised estimate) allocation of the ministry, remains unutilized since the approval for continuation of Control of Pollution Scheme till 2025-26 is, awaited, even at the fag end of the financial year,” the House panel stated in its report.” Read more: Nikhil Ghanekar, Indian Express
“Reliance Industries Ltd. has paused further purchases of Venezuelan crude after US President Donald Trump authorized a 25% tariff on countries buying the South American country’s oil. India’s largest privately owned refiner is expected to take delivery of a cargo of Merey crude that’s currently on route from Venezuela, but additional buying has been put on hold, according to people familiar with the situation, who asked not to be identified because the matter is sensitive. Reliance secured waivers from the US last year to resume importing crude from Venezuela, and Kpler estimates the refiner has taken 6.5 million barrels since the start of the year. Trump’s executive order on Monday, however, will target any nation taking Venezuelan oil with “secondary” tariffs, with effect from April 2.” Read more: Rakesh Sharma and P. R. Sanjai, Bloomberg
Economy –
“India has ordered Samsung and its executives in the country to pay $601 million in back taxes and penalties for dodging tariffs on import of key telecoms equipment, a government order showed, for one of the biggest such demands in recent years. The demand represents a substantial chunk of last year's net profit of $955 million for Samsung in India, where it is one of the largest players in the consumer electronics and smartphones market. It can be challenged in a tax tribunal or the courts. The company, which also imports telecoms equipment through its network division, received a warning in 2023 for misclassifying imports to evade tariffs of 10% or 20% on a critical transmission component used in mobile towers. It imported and sold these items to billionaire Mukesh Ambani's telecom giant, Reliance Jio. Samsung pushed India's tax authority to drop the scrutiny, saying the component did not attract tariffs and officials had known its classification practice for years.” Read more: Aditya Kalra and Aditi Shah, Reuters
“Prime Minister Narendra Modi has a $346 billion debt problem that his administration wants help for from the nation’s households. A record 29.7 trillion rupees ($346 billion) of sovereign bonds are due over the next five years, a result of pandemic-era borrowing and Modi’s infrastructure-spending binge. To tackle the burden, the Reserve Bank of India and the government are swapping maturing debt with longer-dated notes. These refinancing debt auctions are gaining momentum thanks to an increasingly influential player: households. They’ve been pouring money into insurers, which in turn are buying heaps of long-dated sovereign bonds. The demand is so great that the head of Life Insurance Corp. of India, the nation’s largest, even floated the idea of issuing 100-year paper… For India’s public finance managers, this demand is a welcome shift from just a few years back, when bond vigilantes would quickly push up borrowing costs at the slightest hint of increased borrowings. To be sure, the government’s switch strategy faces challenges. A sharp increase in provincial debt sales, driven by increased spending on welfare programs, may reduce the attractiveness for insurers.” Read more: Bhaskar Dutta, Bloomberg
“HSBC and UBS are expanding their wealth management arms in India to compete with local rivals after a listings boom minted a new class of millionaires. The Swiss bank is looking to acquire shares in one of India’s largest wealth management companies 360 ONE, said two people familiar with the matter, while HSBC announced in January it would nearly double its branches in India with a focus on “cities identified for their growing wealth pools”. A record year of initial public offerings in 2024 created a new crop of rich Indians, prompting big banks to start offering bespoke services and cater to wealthy households outside the large metropolitan areas. Wealth under management is expected to triple to more than $850bn in the next five years, according to broker and asset manager Motilal Oswal Financial Services. Property consultancy Knight Frank estimates the number of people in India with more than $30mn will rise by half to nearly 20,000 in the five years to 2028, the fastest pace globally and higher than the 28 per cent worldwide average.” Read more: Krishn Kaushik and Chris Kay, Financial Times
“After the turmoil in the stock market, the failure of another scheme is threatening the country’s gold reserves. Highly promoted at one time, today it has become a burden worth Rs 1.12 lakh crore…. We are talking about the sovereign gold bond (SGB) scheme. Launched in 2015 with much fanfare, it aimed at reducing the country’s gold imports while providing a decent investment opportunity to those seeking gold. The idea sounded fine on paper. Instead of buying physical gold, the RBI issued gold bonds. Those who wanted to invest in gold could buy these paper-based bonds instead of actual gold… The RBI has not released exact data on how many people invested in these gold bonds. However, according to its 2024 annual report, Rs 72,274 crore was raised from this scheme – representing around 146.96 tonnes of gold. Today, 132 tonnes of gold bonds are still held by investors. Out of the 67 tranches, the government has only redeemed six so far. The remaining 132 tonnes are valued over Rs 1.12 lakh crore at today’s market price.” Read more: Kavita Kabeer, The Wire
Foreign Policy –
“The US is pushing for India to reduce high tariff barriers for all American goods in one comprehensive move rather than adopting a piecemeal approach, according to people familiar with the negotiations ahead of crucial talks this week. In exchange, Washington is willing to address New Delhi’s concerns through built-in mechanisms such as quota restrictions in the proposed bilateral trade agreement to protect Indian farmers and small industries, said these people, who asked not to be named… The talks come amid growing pressure as President Donald Trump’s April 2 deadline for imposing reciprocal tariffs approaches. New Delhi’s approach mirrors mechanisms India has already adopted in recent free trade agreements with Australia and the United Arab Emirates (UAE), they added… A second source said the US side wants negotiations broadly on sectors such as agricultural products, alcoholic beverages and automobiles, instead of specific individual items. “They want the trade deal to be comprehensive,” the official said… Separately, news agency Reuters reported on Tuesday that India is open to cutting tariffs on more than half of US imports worth $23 billion in the first phase of the trade deal the two nations are negotiating.” Read more: Rajeev Jayaswal and Rezaul Laskar, Hindustan Times
“With some dialling down of tensions between India and China along the border, policy makers are more open to upgrading bilateral economic relationships now. It is being viewed as an opportune time, particularly when US President Donald Trump is pushing India to the corner on reducing tariffs and forcing it to agree to terms set by Washington, especially on tariffs. According to sources aware of developments, discussions are on between departments to dilute or neutralise some of the restrictions on trade and investments that were put in place five years ago after clashes between Chinese and Indian soldiers in Galwan in 2020. Some of these proposals have gained traction following industry demands, and include low hanging economic outcomes such as easing of visa restrictions for Chinese personnel and lifting some tariff and non-tariff barriers on imports of consignments… On the investment front, there are indications the Indian side is now open to allowing inflows from Beijing as a countermeasure to the widening trade deficit between the two countries. Despite the many restrictions as on date, trade flows continue to be remarkably in favour of China.” Read more: Sandeep Singh and Anil Sasi, Indian Express
“India has been teetering on the edge, not allowing a Taliban-appointed Ambassador into the Embassy in New Delhi, but not supporting the Republic’s diplomats either. After closing its embassy in Kabul in 2021, India reopened a “technical mission” in 2022, engaging Taliban ministers at the level of a Ministry of External Affairs official. That may be set to change, as a wide range of sources say that India is now negotiating to expand its presence in Kabul, while allowing a Taliban-appointed Ambassador to serve in Delhi. In addition to the humanitarian aid it sends, India also wants to revive its development projects in Afghanistan… The relationship India forged with the Afghan Republic: a strategic partnership (Afghanistan’s first), intelligence sharing with the National Directorate of Security (NDS), and working with the Afghan National Defense and Security Forces (ANDSF) to protect Indian interests, cannot be built with the Taliban… New Delhi should worry instead about losing mind-space amongst Afghans, who have been deeply disappointed by the Modi government’s decision not to open out visas for Afghans fleeing the Taliban in 2021, including those who risked their lives to protect Indians. According to officials privy to a high-level meeting on the issue, India’s security establishment worried that those who come as “refugees” would later prove to be “terrorists”.” Read more: Suhasini Haidar, The Hindu
“To consolidate the Navy’s stature as the ‘preferred security partner’ and ‘first responder’ in the Indian Ocean Region (IOR), India will conduct its first major naval exercise, AIKEYME (Africa-India key maritime engagement), with 10 African nations next month. This initiative is part of India’s ongoing military outreach to the continent, where China has made significant strategic inroads. The inaugural edition of AIKEYME will be co-hosted by the Indian Navy and the Tanzania People’s Defence Force (TPDF) and is scheduled to take place off Dar es Salaam, Tanzania, in mid-April 2025. The exercise will be formally inaugurated by India’s Defence Minister Rajnath Singh. Spanning 6 days, the exercise will see participation from India, Tanzania, Comoros, Djibouti, Eritrea, Kenya, Madagascar, Mauritius, Mozambique, Seychelles, and South Africa. The initiative aims to become a biennial event… India’s defence engagement with Africa is not solely focused on security—it also aligns with broader economic interests. As one of the world’s leading emerging markets, India is positioning itself as a key defence exporter.” Read more: Debdutta Chakraborty, ThePrint
People & Politics –
““Very disturbing and depressing”: that is how the arbitrary demolition of the homes and properties of persons accused of offences by state authorities was characterised by Justice Ujjal Bhuyan of the Supreme Court at a public event on March 22. “According to me, using a bulldozer to demolish a property is like running a bulldozer over the Constitution,” Bhyuan contended… His observations came four months after extra-judicial demolitions had been declared illegal by a Supreme Court bench of Justices BR Gavai and KV Viswanathan. The judgement provided detailed guidelines for municipal authorities to follow when demolishing any property. It fixed personal responsibility on the officials carrying out such actions… Indeed, in over four months since the Supreme Court order, there have been several documented instances of the authorities conducting illegal demolitions without following the Supreme Court’s November 13 guidelines. This has been done under the pretext that the properties targetted were unauthorised or built on public land… The continuation of the regime of illegal punitive demolitions of property signals a disregard for the Supreme Court’s November 13 order and for rule of law, say lawyers involved in these matters.” Read more: Vineet Bhalla, Scroll
“The Lok Sabha witnessed a heated exchange and was briefly adjourned during Question Hour on Tuesday after members of Parliament from the opposition camp protested against the Union government over the alleged delay in releasing pending central funds, including those for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The uproar intensified after Union minister of state for rural development Chandra Sekhar Pemmasani, while addressing the issue, cited alleged financial misappropriation by the West Bengal government… His remarks triggered strong reactions from Opposition leaders, who accused the Centre of withholding funds as a punitive measure… DMK MP Kanimozhi raised a similar issue regarding Tamil Nadu, claiming that ₹4,034 crore had been pending for five months.” Read more: Snehashish Roy, Hindustan Times
“Almost two months since a stampede at the Mahakumbh killed at least 30 people, several families say they are yet to get the Rs 25 lakh compensation that the Uttar Pradesh government had promised. When contacted, mela adhikari Vijay Kiran Anand said District Magistrate Prayagraj, Ravindra Kumar Mandar, had transferred the compensation to the accounts of the deceased’s kin and advised contacting him for further details. Mandar, when contacted, did not share any information and redirected queries to the Mahakumbh authorities. Compounding their woes is the fact that an official list of the deceased is still not out. Deputy IGP, Kumbh, Vaibhav Krishna had earlier said the list of the dead would be made public soon. The state government maintains the death toll stands at 30, but has not released the names. The Indian Express spoke to several families who said their relatives had died in the January 29 stampede. Some said they had not been provided compensation, some said they had received Rs 5 lakh, and some said they had received the same amount but also been told the rest would be released in instalments.” Read more: Manish Sahu and Sweety Kumari, Indian Express
“[I] n 2020, the carpet bombing coverage by highly competitive television media served as a distraction from administrative failures over the Covid-19 pandemic, and it was Chakraborty and her family who bore the brunt of a media trial. The CBI closure reports, which will be placed before a magistrate's court next month, were received with more benign coverage for Chakraborty and her family, a far cry from the chasing and outpouring of vitriol in news broadcasts and social media posts in 2020, that was nothing short of diabolical… Now, some of Chakraborty's colleagues in the film industry, who have welcomed the CBI closure report, have sought an apology from the television channels that conducted a media trial. But is an apology enough? Sections of the news media have got away with levelling wild allegations and blatantly indulging in privacy violations and illegal practices like door-stepping… In the Rajput case, the media's diversionary role in engineering a nationwide, 24x7 soap opera in the midst of a pandemic cannot be understated. But what of the law-enforcing agencies that aided this exercise? Can the Mumbai police, the Enforcement Directorate and the Narcotics Bureau be let off the hook?” Read more: Geeta Seshu, The Tribune
Tech –
“In a big boost for local manufacturing, the country is set to witness its electronics exports surpass Rs 3 lakh crore for the first time this fiscal (FY25), driven by smartphones. As per latest industry data, electronics exports reached Rs. 2.87 lakh crore in the 11 months in FY25 (April-February), an impressive growth of 35 per cent from Rs. 2.11 lakh crore in the same period last fiscal (FY24). At Rs. 1.75 lakh crore, smartphones continue to be the top contributor to electronics exports growth in the April-February period, according to industry data… Apple’s iPhone exports reached Rs. 1.25 lakh crore in the first 11 months of FY25, contributing 43 per cent of the total electronics exports and 70 per cent of the total smartphone exports… India’s electronics good exports, led by smartphones, have been accelerating in recent years on the back of government’s production-linked incentive (PLI) scheme which has succeeded in attracting foreign tech giants such as Apple and its suppliers, looking to set up alternative supply chains outside China after the Communist country came under US sanctions.” Read more: Economic Times
“The government is likely to withdraw the 6% ‘equalization levy’ introduced in 2016 on online advertisement services rendered to Indian businesses by offshore digital economy firms through amendments to the Finance Bill, 2025, to be taken up by Parliament this week, two persons familiar with the development said. In August, the government had removed a 2% levy that applied to a wide array of services rendered to Indian businesses by offshore tech firms including cloud services and e-commerce services. The government had then retained the 6% levy that applied to online advertisement services by offshore technology companies that do not have a physical presence in India… The move to drop the controversial levy—nicknamed the ‘Google tax’—comes in the wake of ongoing trade talks between the US and India. The proposal is part of amendments to be moved in Parliament regarding the Finance Bill, 2025, which is under debate and will be taken up for approval in the House early this week… The 2% levy on e-commerce, dropped last year, had drawn more criticism from the US but, in anticipation of more tariff retaliation by the US, India is trying to show a more accommodative stance and the removal of the 6% levy on online advertising is a step in that direction, said Amit Maheshwari, tax partner, AKM Global, a tax and consulting firm.” Read more: Gireesh Chandra Prasad, Mint
"Tata Group is seeking additional 80 acres of land for expansion of its mega semiconductor chip plant coming up in Gujarat’s Dholera, a Business Standard report said on Wednesday. Previously, the Gujarat government had allocated 20-acre parcel to the Tata Group... The Dholera semiconductor plant is India's first chip fabrication unit which was approved the Centre in February last year. The Dholera plant is part of Centre's India Semiconductor Mission. The semiconductor chip plant is likely to commence work by 2027, the BS report added. Tata Group is setting up the Dholera chip fabrication unit at the cost of over Rs 91,000 crore. While the value of the land is somewhere around Rs 200 crore, the company will spend Rs 15,710 crore for the plant and other facilities." Read more: Moneycontrol
Bonus –
““In the last one-and-a-half years, a dire situation has emerged in the Hindi film industry where work is concerned. It’s unfortunate, but projects aren’t getting made,” actor Mohd Zeeshan Ayyub tells us… It’s ironic that since the OTT boom over five years ago, there have been more platforms than ever in the industry, but so is the scarcity of stories and opportunities. “When OTT came in, it made huge investments. So, there was a flood of content. But it didn’t work, because those projects lacked passion. That ecosystem has crashed,” says actor-producer Sohum Shah… Filmmaker Anurag Kashyap hardly minces words speaking about the functioning of streamers in India. “There’s no dearth of talent in the industry. There’s only dearth of risk-taking producers, studios and platforms. Most titles today are acquired titles. Where are today’s Gulshan Rai and Yash Johar? Where are those producers, who used to mortgage their houses to make movies? All the producers today are just doing jobs. They don’t want to lose their lifestyle. Their mandate is to increase subscribers, not make good cinema.” If it’s established that an original story won’t find a happy ending on OTT, what about the theatrical space? Turns out, it’s also a slave to the streamers.” Read more: Priyanka Sharma, Mid-Day