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Ramniklal Solanki, BBC Asian Network presenter Tommy Sandhu, Rishika Lulla and Shailesh Solanki
INDIAN prime minister Narendra Modi's government will present the annual budget on 1 February, with a focus on economic growth, job creation, and trade policies amid global uncertainties.
Finance minister Nirmala Sitharaman will deliver the budget speech.
The budget comes as India faces slowing economic growth, inflation concerns, and trade disruptions. Economists expect measures to boost disposable income, support local manufacturing, and provide relief to the middle class.
"We could see a nod from the government, to signal to the middle class that we are aware of your challenges and we would like to raise disposable incomes, which increases spending power," Priyanka Kishore, director and principal economist at Asia Decoded, said.
The government is considering personal income tax cuts, Reuters reported last month. Tariff reductions on key imports to encourage domestic manufacturing are also expected. Dhiraj Nim, an economist at ANZ, said tax cuts on fuel and cooking gas may also be introduced.
India’s job market remains a concern despite strong economic growth. Last year’s budget allocated nearly £19.4 billion over five years for job creation programmes, but these schemes have not yet been implemented due to delays in finalising details.
"They will focus more on direct measures for employment generation and skilling," Kishore said.
Trade policies and global supply chain strategy
India is also preparing for potential disruptions from US trade policies. To support local production, the government may offer lower tax rates to companies manufacturing in India, reduce import duties on intermediate goods, and increase tariffs to counter cheaper imports from China, Nomura economists said.
India sees an opportunity to gain a larger share of the global supply chain due to trade shifts. A government source said India is considering import tax cuts on components used in local production, including mobile phone parts like printed circuit board assemblies, camera module components, and USB cables.
Additionally, the government may introduce incentives for the textile and garment industry, including financial support and tariff reductions on key inputs. This comes as Bangladesh’s exports face challenges due to political instability.
Infrastructure spending will likely remain a priority. Government spending in this sector has played a key role in recent economic growth, but the current fiscal year’s £102.8 billion infrastructure allocation is expected to fall short of targets, according to ICRA economists.
The budget is also expected to increase spending for the agriculture sector by around 15 per cent, the highest increase in six years, alongside moderate increases in key subsidies to support rural economic recovery.
Fiscal strategy and growth outlook
India plans to project higher economic growth in the budget, according to Reuters. The economy is expected to grow between 6.3 per cent and 6.8 per cent in the next fiscal year, lower than the 8.2 per cent growth recorded in 2023-24 but in line with global forecasts.
"Headwinds to growth include elevated geopolitical and trade uncertainties and possible commodity price shocks," the Finance Ministry said in its annual economic survey.
The government will have to balance spending measures with its fiscal constraints. India’s fiscal debt-to-GDP ratio remains above 80 per cent, which is high for emerging markets, Nim said. The fiscal deficit target for the next financial year is expected to remain at 4.5 per cent of GDP, according to a Reuters poll.
With limited fiscal space, the burden of economic recovery may shift to the Reserve Bank of India, analysts said. The government is expected to borrow £132.7 bn in the next fiscal year, slightly higher than this year’s £130.2 bn borrowing plan.
Focus on women, the middle class, and social policies
Modi has indicated that the budget will include measures to support women, the middle class, and lower-income groups.
Speaking before the budget session, he referred to Lakshmi, the Hindu goddess of wealth, and said he prayed for "special blessings for the poor and middle class."
He also stressed the need for ensuring equal rights for women, free from religious and sectarian divides. "Significant decisions towards this goal will be taken during this session," Modi said.
India's president Droupadi Murmu, in her address to parliament, echoed the government’s focus on economic policies benefiting the poor, middle class, youth, women, and farmers.
"The nation is witnessing major decisions and policies being implemented at an extraordinary speed, with the highest priority given to the poor, middle class, youth, women, and farmers," she said.
The budget session will also include discussions on various policy bills and proposals. Modi said these measures will strengthen the country’s economy and governance framework.
(With inputs from agencies)
Jennifer Love Hewitt recently reflected on her early years in Hollywood, revealing how she was sexualised as a teenager without fully understanding it at the time. In a candid conversation on Mayim Bialik’s 'Breakdown' podcast, the 45-year-old actress shared that at just 16, she was subjected to inappropriate comments from grown men about her body, particularly her breasts. These remarks were often made openly in interviews, which Hewitt now finds disturbing, given the context of her age.
Hewitt, who became famous after starring in I Know What You Did Last Summer in 1997, recalled how the attention on her physical appearance increased after she appeared on the cover of 'Maxim' in 1999. Men would approach her, mentioning how they took her magazine on trips, but at the time, she didn’t fully grasp the sexual undertones of these comments. “I didn’t know what that meant,” she admitted, adding that it felt strange to be labelled a sex symbol before even knowing what being "sexy" meant.
Jennifer Love Hewitt recalls the unsettling experience of becoming a sex symbol before she even understood what it meantGetty Images
As her career progressed, jokes about her body became normalised, especially after the release of 'I Know What You Did Last Summer'. Hewitt recalled how uncomfortable jokes about her body were common during interviews, with people laughing along as if it was a joke. “It didn’t register with me that this is a grown man talking to me and passing inappropriate comments about my body on national television,” she reflected. While she doesn’t blame anyone for the comments made at the time, she acknowledged that it was a period where such behaviour was accepted as the norm in Hollywood.
Looking back as an adult, Hewitt explained that when she reached her 30s, she began to evaluate her teenage years more critically. The environment back then made it difficult for her to recognise the inappropriateness of the sexualisation she faced. She also shared that watching the Britney Spears documentary helped her realise how deeply such experiences can affect someone.Today, Hewitt is grateful she didn’t internalise the objectification and expressed appreciation for how society’s views on body image have evolved. She hopes future generations won’t face the same level of sexualisation and that the industry continues to prioritise respect and awareness.With the Premier League producing yet another controversial refereeing decision, it is about time the PGMOL are held accountable.
Bizarre red card dished out at Molineux
Arsenal found themselves on the receiving end of yet another controversial refereeing call, this time away at Wolverhampton Wanderers. The Gunners have now been awarded the most red cards this season, and those decisions were fairly debatable as to whether they should’ve stood. However, the decision at Molineux was categorically the wrong one, and the person who made that call was none other than Michael Oliver, supposedly the best referee this country has to offer.
Firstly, referees should receive criticism, but personal attacks and abuse, which Oliver has allegedly received, cross the line. However, it seems as though the media and refereeing board, PGMOL, are using this to deflect from accountability for poor refereeing decisions.
Eighteen-year-old Myles Lewis-Skelly was left bemused as the victim of the decision. As Wolves looked to counter Arsenal’s corner, the young left-back appeared to trip Matt Doherty in the 43rd minute whilst the ball was still very much in the Wolves half. This tactical foul would surely warrant a yellow card rather than a red. The reasoning for the red was dangerous foul play for a high-studded challenge, but footage illustrated anything but that. Mistakes are part of the game, which is where you look towards VAR for help, but in this instance, VAR official Darren England upheld the on-field decision.
Justice prevailed
Fortunately for Arsenal, the red card didn’t impact the result. During the second half, they played with such intensity you’d have thought they still had 11 players on the pitch. Around the 70th minute, the game became a level playing field as Joao Gomes received a second yellow card for a challenge on Jurrien Timber, which was undoubtedly a far more dangerous tackle than Myles Lewis-Skelly’s and should’ve earned him a straight red and a three-match ban rather than one.
It was substitute left-back Ricardo Calafiori, who replaced Lewis-Skelly, that netted the winner on the half-volley in the 74th minute, rescuing Arsenal from a precarious situation alongside heroic saves from keeper David Raya. Following Arsenal’s appeal, the red card for Lewis-Skelly has since been rescinded, and his three-match ban has been rightly lifted, further proving just how ridiculous the decision was to begin with.
Reaction to the red card
There has been widespread scrutiny towards Michael Oliver’s blunder. Alan Shearer, who’s usually quick to begrudge Arsenal for complaining about referees, described it as one of the worst refereeing decisions he has ever seen. Arsenal legend Ian Wright also expressed his frustration on social media. Moreover, during the Ref Watch segment on Sky Sports, ex-referee Dermot Gallagher also admitted a yellow card should’ve been shown, which is significant as he usually rushes to defend referees after shocking officiating.
PGMOL lack accountability
With the news of a proposed Football Governance Bill that aims to bring an independent regulator to the English game, perhaps we should question whether the independent regulator’s remit should extend beyond the Premier League and also towards the PGMOL. This seems a good idea, not only due to poor refereeing standards and lack of accountability but also in light of the ex-referee David Coote scandal, where he was guilty of alleged substance abuse earlier this season, alongside a leaked video of him using vulgar language when speaking about Jurgen Klopp.
Perhaps with an entity to answer to, the PGMOL will be more cutthroat in response to poor officiating, rather than resting on their laurels and brushing incidents under the carpet.
THE OWNERS of the Indian Premier League (IPL) team Mumbai Indians have reportedly secured a deal to acquire a 49 per cent stake in Oval Invincibles, a franchise in England’s Hundred competition.
Reports on Thursday stated that Reliance Industries Limited (RIL), which owns Mumbai Indians, emerged as the successful bidder.
All eight city-based teams in the Hundred, each with a men’s and women’s side, are expected to be paired with preferred investors over the next week.
The England and Wales Cricket Board (ECB) aims to attract private investment to remain competitive in the global market and secure top international players.
According to ESPNCricinfo, RIL won a virtual auction for the minority stake, valued at around £60 million. The company will now enter an exclusivity period to negotiate terms with county club Surrey and the ECB.
Oval Invincibles, based at the Oval in London, are the reigning champions in the men’s Hundred competition.
Mumbai Indians are considered one of the most influential franchises in the IPL. Mukesh Ambani, chairman and managing director of RIL, is among India’s leading business figures.
Surrey chairman Oli Slipper had previously assured club members that Surrey "must and will retain the controlling stake" in the Invincibles.
The ECB has not commented on the deal and is expected to announce the results of all eight tenders once the process concludes in the coming days.
The Hundred has drawn criticism from some English county cricket supporters who argue that the tournament takes key players away from their teams during the domestic season.
However, the ECB has stated that proceeds from selling stakes in the eight franchises will help fund the 18 county clubs.
(With inputs from AFP)
DONALD TRUMP’S second term as US president will call for a pragmatic approach by the UK, experts have said, adding that India may yet benefit from the America-China “power struggle”.
V Muraleedharan served as former junior foreign minister in India from 2019 to 2024. He told Eastern Eye India wants to sustain a “strong and healthy” relationship with the US under Trump.
“India’s foreign policy is not tied to the individuals in power in a particular country. We always aim to protect India’s interests, and changes in administration in any country do not alter that approach,” he said.
“Recently, there have been changes in administration in countries such as the UK, Sri Lanka and Japan. However, we continue to maintain strong diplomatic relations with them.
“India’s prime minister Narendra Modi has a good relationship with the US president. This rapport might prove beneficial for the country.”
Muraleedharan was the minister of state for external affairs when Trump visited India in 2020.
He said, “India always wants to maintain a country-to-country and peopleto-people connection.”
Trump and India’s prime minister spoke on a call on Monday (27), when the US president pressed Modi for “fair” trading ties and also discussed plans for a visit to the White House, a readout of the call said.
US secretary of state Marco Rubio with India’s foreign minister Subrahmanyam Jaishankar in Washington DC last Tuesday (21)
It came a day after British prime minister Sir Keir Starmer spoke to Trump last Sunday (26) in a wide-ranging conversation on Gaza and the economy.
“The two leaders stressed the importance of the close and warm ties between the UK and the US, and the president spoke of his respect and affection for the royal family,” a Downing Street statement said. “They agreed to meet soon and looked forward to further discussions then.”
Trump began the call by offering condolences for the death of Starmer’s brother Nick last month.
The US president praised Starmer last Saturday (25) for doing “a very good job”.
“I think he’s done a very good job thus far,” Trump told reporters aboard Air Force One. “I like him a lot”.
Alice Copland, policy and parliamentary affairs manager at the UK’s Foreign Policy Centre, told Eastern Eye, “Keir Starmer and his colleagues have been clear in their intention to pursue good relationships with Trump and his allies and develop the US-UK relationship.
Anit Mukherjee
“Trump’s positive remarks about Starmer and their call over the weekend will be seen as a boost. However, the future remains ambiguous, particularly as the UK government also prioritises its manifesto commitment to ‘reset relationships’ with Europe and deliver steadfast support for NATO.
“What this means for the ‘special relationship’ remains to be seen.”
“The raft of executive orders signed by Trump in his first few days in office provide an indication of future challenges that could impact the UK’s relationship with the US. Withdrawal from the World Health Organisation and the Paris Climate Agreement are prominent examples, and these breaks from international norms and institutions could provide a point of tension for Starmer and his cabinet as they attempt to build productive relationships with US counterparts.
V Muraleedharan
“Looking forward, there will be no moment where the USUK relationship is ‘secured’. What often appears to be impulsive policymaking by Trump and an increased use of social media to outline priorities will mean that uncertainty will always remain. It’s going to be an ongoing balancing act for Starmer, when at any moment Trump, and his officials and allies, might suddenly upset the apple cart.”
Starmer last Sunday praised Trump for his “role in securing the landmark ceasefire and hostages deal in Gaza,” as they discussed the “importance of working together for security in the Middle East”.
Trump, meanwhile welcomed the release of BritishIsraeli dual national Emily Damari, who was freed a week ago by Hamas.
Trump also “expressed his well wishes for the King and the royal family”.
The two leaders discussed “how both countries can promote a fair bilateral economic relationship,” with Downing Street highlighting the UK’s efforts at “deregulating to boost growth.”
Dr Sasikumar S Sundaram
Starmer is keen to promote Britain to Trump and big US companies as the Labour government seeks new sources of investment to try to breathe life into a stagnant British economy.
“There are some real tensions between the Trump administration and the UK, particularly regarding how the UK government, under Starmer, supported Kamala Harris’s run for presidency,” Dr Sasikumar S Sundaram, senior lecturer at the department of international politics at City, University of London, and vicechair of the Global South Caucus, told Eastern Eye.
He added, “[Billionaire businessman] Elon Musk really does not like this because he believes it’s a far-left government which is engaged in woke politics. Having said that, the current UK government is also very pragmatic about trying to ensure they achieve the deal without creating a lot of performances, public appearances, and media frenzy.
“The biggest debate will be on tariffs and whether the UK will be affected by Trump’s tariff plan. The government has already made plans to establish proper mechanisms to avoid the sort of ‘tariff bite’.”
Sundaram dwelt on Britain and America’s ties with Asia. “The US also wants to have trade deals with India. There will be a lot of competition between these two countries as to how to approach India for new trade deals,” he said.
“We know that Narendra Modi and Trump are good friends, and they want to use their personal charisma to create more trade deals.
“However, the UK would also try to appeal to Indian industries and try to create a more favourable investment climate.” In his view, India will play the role of a “swing state” in global geopolitics, in terms of placing its central role between the US and the UK. Sundaram said, “Whether those deals can be delivered by the Indian industry is an entirely different question. India still wants to protect domestic industry that resonates with Hindu nationalism. But the real politics is not in focusing on Hindu nationalism, but on being pragmatic to leverage the role of state in global geopolitics. For this, India should reduce its emphasis on Hindu nationalism versus the liberal international order, and focus on what is in India’s best interest in a decade from now. The resolution of tensions with China is a right step in that direction.”
Trump on Monday stressed the importance of India buying more American-made security equipment and moving toward a fair bilateral trading relationship in his phone call with Modi. Both leaders also spoke about immigration. It is anticipated that Modi will visit the US some time in February.
Modi and Trump enjoyed warm relations during the president’s first term, but during his re-election campaign last year, he called India a “very big abuser” on trade and vowed to use tariffs on global imports into the US to correct imbalances.
The US is India’s largest trading partner. Two-way trade surpassed $118 billion (£93.4bn) in 2023-2024, with India posting a surplus of $32bn (£25.4bn).
Trump has also threatened the BRICS group of nations, of which India is a part, with tariffs if they did not accept his demand of committing to not creating a new currency.
Anit Mukherjee, senior lecturer at Kings College, London, said he expected continuity rather than change in Trump’s relations with both the UK and India.
“The UK understands the importance of its partnership with the US, and the Americans also understand it. While there are apprehensions about the role of Elon Musk and his understanding with Keir Starmer, overall I do not see a big shift in UK-US relations,” Mukherjee told Eastern Eye.
He said the comments by some in the Trump administration were just part of a “social media storm”.
“In the world of diplomacy, people don’t get swayed by that. I think that’s just something you will see more in the X world than in the real world.
“While those concerns may have been expressed by some people close to Trump, eventually the president will not be swayed by such arguments and will actually look for what’s in it for America,” the academic said.
He believes the US will be looking at India to buy more American goods of all kinds, especially in the defence sector.
“Apart from that, there shouldn’t much change, since US-India ties enjoy bipartisan support. Moreover, the current form of the Quad came about during the first Trump administration and so there should be more continuity than change,” Mukherjee added.
Dr Uma Purushothaman, an assistant professor in the department of international relations and politics at the Central University of Kerala, said Trump was likely to pursue a more active policy of managing China’s rise by focusing on the Indo-Pacific.
India is also an important strategic partner in US efforts to counter China.
“Trump’s conciliatory approach towards Russia would give India more flexibility in its foreign policy. However, concerns over tariffs and illegal and legal immigration from India would remain, meaning it’s not going to be a totally smooth ride for IndoUS relations,” she said.
There was also likely to be less pressure on concerns over human rights from the US, she added.
D Dhanuraj, founder and chairman of Centre for Public Policy Research, an India-based thinktank, said India should work to strengthen the institutional mechanisms in mutually beneficial areas, instead of falling into sensitive matters that the new administration is focusing on in its early days.
“India must wait and watch the administration’s approach to India and south Asia, for some time. Continuous engagement with the administration and focusing on the commitments from both sides on the deliverables is the way to go, at this stage,” he said.