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Stalin's balancing act: Red carpet for Modi, memo on long-pending demands

Stalin's balancing act: Red carpet for Modi, memo on long-pending demands

India Today2 days ago
Coinciding with Prime Minister Narendra Modi's visit to Tamil Nadu on July 26-27, the DMK (Dravida Munnetra Kazhagam) government in the state submitted a detailed memorandum reiterating its longstanding policy positions and pressing developmental demands, including for education, stalled rail projects and fisherfolk welfare.The memorandum was approved by chief minister M.K. Stalin on July 26 even as he remained hospitalised for a medical procedure. In his absence, finance minister Thangam Thennarasu represented the government at key events during Modi's visit.advertisementThe state's opposition to certain provisions of the National Education Policy (NEP) 2020 found renewed expression in the memorandum. A call was made for release of Rs 2,151.59 crore in pending central funds under the Samagra Shiksha scheme for 2024-25. The state government urged the Centre to expedite this amount as well as the first installment for 2025-26 without tying the release to Tamil Nadu's participation in the PM SHRI schools programme.With over 4.39 million students, 220,000 teachers and over 32,000 support staff in its public school system, the state government warned that delays in funding would disproportionately impact the most vulnerable sections among students.
The DMK government, while committed to strengthening public education, has consistently rejected the NEP's three-language formula and 5+3+3+4 school structure on legal and policy grounds. While the memorandum set out these differences clearly, the government ensured full participation in the prime minister's public programmes.Thennarasu was present at events in both Thoothukudi and Gangaikonda Chozhapuram, describing Modi's visit to the ancient Chola capital as 'a matter of pride'. The minister's presence demonstrated the state's respect for institutional protocol even as it continued to assert its distinct policy identity.Among the many long-pending infrastructure needs raised were railway projects that had received approval over a decade ago but remained unimplemented. These include the Tindivanam-Tiruvannamalai line via Senji (70 km), Erode-Palani (91 km), Madurai-Thoothukudi via Aruppukottai (60 km) and Chennai-Cuddalore via Mahabalipuram (180 km). Tamil Nadu also sought the Centre's approval for new lines, including Tirupattur-Krishnagiri-Hosur and suburban services around Madurai. Detailed project reports or route surveys were requested for lines connecting Coimbatore, Bhavani, Gobi and Salem.The memorandum called for improvements in the Chennai suburban rail network, including a fourth track between Tambaram and Chengalpattu, better peak-hour frequency, additional coaches (both AC and non-AC), and early implementation of the Avadi-Sriperumbudur rail line. The state urged faster clearances and timely fund allocations for all pending proposals.Expanding urban mobility in Tier 2 cities was also a priority. The state has already cleared metro rail projects for Coimbatore and Madurai, to be implemented by the Chennai Metro Rail Limited. The proposed Coimbatore Metro spans 34.8 km at a cost of Rs 10,740.49 crore while the Madurai Metro is projected to cover 32 km, with an outlay of Rs 11,368.35 crore. The state sought equal financial participation from the Centre under the Metro Rail Policy, 2017.advertisementThe Tamil Nadu government again raised concerns over the repeated arrests of Indian fishermen by Sri Lanka. Despite earlier interventions by the external affairs ministry and diplomatic efforts, the arrests continue. The memorandum urged Modi to personally intervene to secure a permanent diplomatic solution and ensure the immediate release of detained fishermen and their boats.The memorandum also pressed for reallocation of over 1,500 acres of unused land at the Salem Steel Plant for the creation of a defence industrial cluster. This would be part of the Defence Industrial Corridor for Tamil Nadu, announced in the Union Budget for 2018-19. The state government expressed its keenness to support India's self-reliance in defence manufacturing by accelerating this long-delayed initiative.Tamil Nadu's demands reflect its continued emphasis on development, federal dialogue and the constitutional right to shape its own policy direction while remaining constructively engaged with national governance. However, sources indicate that some of the DMK's allies are uneasy with the party's overt gestures of goodwill towards the prime minister. DMK supporters, on the other hand, argue that the state's approach demonstrates how divergent policy priorities can coexist with formal cooperation on administrative goals.advertisementSubscribe to India Today Magazine- EndsMust Watch
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Centre scrambles to revamp export plan as US tariffs hit Indian goods, favour ASEAN rivals
Centre scrambles to revamp export plan as US tariffs hit Indian goods, favour ASEAN rivals

Mint

time40 minutes ago

  • Mint

Centre scrambles to revamp export plan as US tariffs hit Indian goods, favour ASEAN rivals

New Delhi: Faced with steep tariffs imposed by the US government, the Centre is huddling with export promotion councils and manufacturers to find a way to rework the country's exports strategy, two government officials aware of the development said. The development comes on the back of a deadlock in bilateral trade agreement (BTA) negotiations between India and the US, which the two countries have been grappling with since June, as reported by Mint on 11 June. The new plan involves diversifying into markets such as the UK, with which India recently signed a free trade agreement (FTA), and the European Union (EU), where negotiations are in the final stage and a deal could be signed before the end of the year, the officials cited above said on the condition of anonymity. India's plan would also focus on sector-specific challenges and policy measures to support exports, including exploring new markets with the help of Indian missions overseas, the officials said. The government sees strong export potential in regions like Saudi Arabia, France, Vietnam, the Netherlands, Mexico, and Ethiopia, among other countries. The review will additionally focus on India's growing competitiveness gap with Bangladesh and with ASEAN countries such as Vietnam and Indonesia, which have received significant tariff relief under the latest US executive order. While India faces a 25% duty — just 1 percentage point down from 26% in the 2 April notification — Vietnam's tariffs have been reduced from 46% to 20%, Indonesia's from 32% to 19%, and Bangladesh's from 37% to 20%, giving these exporters a clear edge in the US market. 'Sectoral discussions will have special attention to cases like Vietnam, which imports Indian shrimp, processes it, and re-exports it to the US under a more favourable tariff, and Indonesia, which enjoys a lower duty on electronics exports," one of the officials said. 'Bangladesh, a major garments exporter, now benefits from a lower 20% rate compared to the 25% levied on Indian textiles." The meetings will also examine the implications of the new US rules on transshipment, which impose a 40% punitive duty on goods rerouted to evade tariffs, this person said. Queries sent to the commerce ministry, which is spearheading the consultations with industry, remained unanswered till press time. The tariffs explained On Thursday, the US imposed a 25% tariff on the value of all goods shipped from India that will come into effect on 7 August. To be sure, Indian goods will also attract existing MFN (most-favoured nation) duties, which average 3% but differ across sectors. Goods that are already on their way to the US and will reach ports there before 5 October will have to pay 10% duty. Further, certain sectors are exempted from the new 25% tariff, but they still have to pay the MFN duty. 'As of now, exports worth around $30 billion — comprising sectors like petrochemicals ($4 billion), pharmaceuticals ($15 billion), and electronic goods ($11 billion) — would not be impacted, as these are exempt from the additional duty," said the first among the two officials mentioned above. The first official added that sectors that are of concern are textiles (exports worth $10.91 billion), engineering goods ($19.16 billion), agriculture ($2.53 billion), gems and jewellery ($9.94 billion), leather ($948.47 million), marine products ($2.68 billion), and plastics ($1.92 billion). Notably, India exported goods worth $86.5 billion to the US in FY25, which is 20% of the country's total merchandise exports of $433.56 billion in FY25. Industry reactions According to the Global Trade Research Initiative (GTRI), a Delhi-based think tank, India's goods exports to the US may decline by 30% to $60.6 billion in FY2026. 'This order is more than just a tariff measure — it's a pressure tactic," said Ajay Srivastava, founder of GTRI, adding that the US is using access to its markets through tariffs as leverage to advance its geopolitical goals and extract one-sided trade concessions. 'Countries like China have retained exemptions on critical goods such as pharmaceuticals, semiconductors, and energy. But India has been singled out for harsher treatment, with no product-level exemptions whatsoever," Srivastava added. Tariffs on China have not been revised under the latest order and will continue at 30%. Vipul Shah, former chairman of the Gem & Jewellery Export Promotion Council (GJEPC), said the government should consider incentivising exporters, especially those heavily dependent on the US market, as the new tariffs are a significant blow to sectors like gems and jewellery. 'Immediate support is crucial to help these industries navigate the shock," he said. However, Ashwani Mahajan of the Swadeshi Jagran Manch, which opposes a one-sided trade deal, said India should not be overly worried about higher US tariffs, as the country is not as export-dependent as China. 'Work is already underway to diversify and explore new markets," he said. Mithileshwar Thakur, secretary general of the Apparel Export Promotion Council (AEPC), said the Indian apparel industry has an exposure of about 33% to the US market. He added that the FTA with the UK and ongoing FTA negotiations with the EU together can offer significant opportunities for the Indian apparel industry, and partly offset losses in US business. But, to tide over the current crisis, the government should offer incentive in the immediate term to the exporting community to stay afloat in the US market. 'It is unfortunate that India has been hit with the highest tariffs. This will definitely impact our competitiveness. We are in a wait-and-watch mode to see whether prices rise in the US market and if American buyers can absorb the increased costs or not," said Pankaj Chadha, chairman of Engineering Export Promotion Council (EEPC). Exploring newer markets For engineering goods, the government is focusing on expanding exports to new target markets such as Sao Tome, Macao, Georgia, Croatia, Guinea-Bissau, Belize, Azerbaijan, Myanmar, Lithuania, Norway, Somalia, and Greece. Currently, key export destinations for Indian engineering goods include the U.S., UAE, Saudi Arabia, Germany, and Italy. The Netherlands, South Korea, Belgium, Mexico, Japan, and Kuwait are also seen as promising markets. For pharmaceuticals, new destinations identified include Montenegro, South Sudan, Chad, Comoros, Brunei, Latvia, Ireland, Sweden, Haiti, and Ethiopia, while Greece is listed as a promising market. Traditional export markets for Indian drugs are— US, UK, Netherlands, South Africa, and Brazil. In electronics, the government has listed Sao Tome, Montenegro, Cayman Islands, St. Vincent, Mongolia, El Salvador, Turkmenistan, Honduras, Bahrain, Somalia, Puerto Rico, Vietnam, and Sweden as new export destinations. Russia, Mexico, and Turkey are marked as promising markets. For agricultural and processed food products, the focus will be on Nigeria, Switzerland, Lithuania, Slovenia, Mexico, Sweden, Portugal, Cameroon, Djibouti, Latvia, Egypt, Senegal, Canada, Argentina, and Brazil.

Good step: Trump welcomes reports of India possibly halting Russian oil imports
Good step: Trump welcomes reports of India possibly halting Russian oil imports

India Today

timean hour ago

  • India Today

Good step: Trump welcomes reports of India possibly halting Russian oil imports

US President Donald Trump on Friday welcomed reports that India may stop buying Russian oil, calling it a 'good step,' though he acknowledged he was not sure if the claim was to a question by ANI about whether he had a number in mind for potential penalties or plans to engage with Prime Minister Narendra Modi, Trump said: 'I understand that India is no longer going to be buying oil from Russia. That's what I heard. I don't know if that's right or not. That is a good step. We will see what happens.'#WATCH | "I understand that India is no longer going to be buying oil from Russia. That's what I heard, I don't know if that's right or not. That is a good step. We will see what happens..." says, US President Donald Trump on a question by ANI, if he had a number in mind for the ANI (@ANI) August 1, 2025advertisementHis comments come amid heightened geopolitical pressure on countries that continue purchasing Russian oil, as the US intensified efforts to curb Moscow's revenue streams during the ongoing Ukraine war. India, the world's third-largest oil importer, has been a key buyer of discounted Russian oil since Western sanctions were imposed on Moscow in recent media reports suggest that Indian state refiners have temporarily paused Russian oil purchases due to narrowing discounts and shipping challenges. The Indian government has yet to officially confirm this remark also follows a week of sharp criticism directed at India. In a post on Truth Social, he slammed New Delhi for maintaining high tariffs and 'obnoxious' trade barriers while continuing to purchase Russian energy and military White House recently announced a 25 per cent tariff on all Indian exports to the US, along with an unspecified 'penalty' for its continued energy trade with to the developments, Randhir Jaiswal, spokesperson of the Ministry of External Affairs, defended India's long-standing ties with Moscow.'India and Russia share a steady and time-tested partnership,' he said. Jaiswal also reaffirmed the strength of the India-US relationship, noting it is based on 'shared interests, democratic values, and robust people-to-people ties,' and expressed confidence that bilateral relations would continue to move forward despite current tensions.- EndsTune InMust Watch

No slums will be demolished, open to policy change: Delhi CM Rekha Gupta
No slums will be demolished, open to policy change: Delhi CM Rekha Gupta

Indian Express

timean hour ago

  • Indian Express

No slums will be demolished, open to policy change: Delhi CM Rekha Gupta

Facing fire from the Opposition and dissent within party ranks over the ongoing slum demolitions in the Capital, Delhi Chief Minister Rekha Gupta Friday said her government is open to amending Delhi's slum policy — countering claims that the BJP is reneging on its promises to the urban poor. Calling slum dwellers the 'backbone of Delhi's working class,' Gupta announced a halt on all demolitions unless alternative housing is provided in advance. The Delhi government has also made it clear that no slum will be removed in the Capital. Gupta directed land-owning agencies like the Railways, Delhi Development Authority, and other departments to 'immediately cease' any eviction drives and warned that her government would approach the courts if necessary. Her statement comes weeks after eviction notices were served to residents of a jhuggi cluster in R K Puram, an area where Prime Minister Narendra Modi had earlier assured slum dwellers that 'no jhuggi would be demolished'. The BJP has also faced internal criticism from its MLAs and booth workers, who had campaigned extensively in slums with the slogan 'jahan jhuggi, wahan makan'. Since the BJP government has taken charge in Delhi, major slums have been demolished over the past few months: Madrasi Camp (340 structures demolished), Bhoomiheen Camp (344 structures demolished), Jailer Wala Bagh (300 structures) and Taimoor Nagar (100 structures). Criticising both AAP and Congress, accusing them of historic neglect and using slum residents merely as 'vote banks', Gupta said: 'The Congress named colonies after their leaders but gave nothing. The AAP promised the world, but didn't even ensure clean drinking water or drainage. They pushed these communities into neglect and addiction.' She also announced that 50,000 unallotted flats in Outer Delhi — long left in disrepair — will be renovated under the PMAY-Urban and handed over to slum dwellers. The Centre has allowed Rs 732 crore, previously underutilised under Jawaharlal Nehru National Urban Renewal Mission, to be repurposed for this housing initiative. In response to Gupta, AAP's Delhi unit chief Saurabh Bharadwaj said, 'Rekha Gupta and her party have been bluffing the poor residents of Delhi for many months now. If Rekha Gupta is actually serious about what she is saying, then she should ask the central government and its agencies — DDA, Railways, and L&DO — to withdraw cases against these JJ clusters in the High Court and the Supreme Court.' Attempting to reframe the demolition narrative, Gupta claimed the BJP is the first government to pair evictions with actual housing handovers, unlike her predecessors. 'Previous governments simply watched slums grow. We are finally giving people homes — and dignity,' she said. She said slums are an inseparable part of the national capital and asserted that her government is making sincere efforts to ensure their rightful recognition as residents of Delhi.

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