NEW DELHI: India is expected to have a new government in place by the middle of June after a six-week election that began on April 19. Votes will be counted on June 4 and analysts expect Prime Minister Narendra Modi to win a third straight term.
Here are some key issues the winning party, or coalition, will need to tackle in office.
ECONOMIC DISPARITY
India’s economy is expected to have grown by about 8 percent in the last fiscal year, one of the fastest rates among major economies, but voters have pointed to disparities on the ground, with growth more visible in cities than in the vast hinterland.
The economy has jumped five places to be the fifth-largest in the world in the past decade under Modi and he has said he will lift it to the third position if elected. But the country’s per-capita income still remains the lowest among G20 nations.
Nevertheless, S&P Global Ratings in late May raised India’s sovereign rating outlook to ‘positive’ from ‘stable’ while retaining the rating at ‘BBB-’, saying the country’s robust economic expansion was having a constructive impact on its credit metrics.
INFLATION ABOVE CENBANK TARGET
Annual retail inflation (INCPIY=ECI) in April stood at 4.83 percent, slightly lower than March, but still above the central bank’s 4 percent target.
Food inflation, which accounts for nearly half of the overall consumer price basket, was an annual 8.70 percent in April, compared with a 8.52 percent rise in the previous month. Food inflation has been at more than 8 percent year-on-year since November 2023.
Countering the steep increase in food prices has been one of the key campaign planks of the main opposition Congress party, which has promised several cash handouts to alleviate the situation.
Modi has meanwhile banned exports of wheat, rice and onions to contain domestic inflation.
UNEMPLOYMENT
Unemployment in India has also been one of the main issues in the campaign with Congress accusing the Modi government of doing little to provide jobs for the country’s youth.
The unemployment rate in India rose to 8.1 percent in April from 7.4 percent in March, according to the private think-tank Center for Monitoring Indian Economy.
Government estimates for the latest January-March quarter show that the urban unemployment rate in the 15-29 age group ticked higher to 17 percent from 16.5 percent in the prior quarter.
Overall, urban unemployment rate in the January-March quarter stood at 6.7 percent, compared to 6.5 percent in the previous quarter, according to government data.
The Indian government does not release quarterly unemployment figures for rural India.
FOREIGN RELATIONS
India’s rising world stature and assertive foreign policy have been touted as major recent achievements by Modi’s administration.
A key diplomatic strain, however, remains with China which was spurred by a 2020 border clash that left 20 Indian and four Chinese soldiers dead. Modi said last month the countries should address the “prolonged situation” on their border.
Modi’s government has been trying to attract foreign companies to diversify supply chains beyond China.
Relations with Canada have also been strained in recent months after Ottawa and Washington accused an Indian official of directing the plot in the attempted murder of Gurpatwant Singh Pannun, a Sikh separatist and dual citizen of the United States and Canada.
In May, Canadian police arrested and charged three Indian men with the murder of Sikh separatist leader Hardeep Singh Nijjar last year and said they were probing whether the men had ties to the Indian government.
TAXES
An industry lobby group earlier this year called for a tax exemption limit for individuals to be increased and linked with inflation to help boost consumption.
The Confederation of Indian Industry also asked that the government review its capital gains tax structure by bringing consistency in tax rates for different asset classes such as debt, equity and immovable assets.
FARMERS
Stagnant farm income is a major sign of widening inequality between urban and rural India that has led to widespread protests. The BJP had promised to double farm income by 2022 in its manifesto for the last election, but has failed to do so.
Despite that, Modi has set a new goal to lift rural per-capita income by 50 percent by 2030 but farmers in the hinterland remain skeptical of such plans, Reuters reported earlier.
LAND, LABOUR REFORMS
In February, a BJP spokesperson told Reuters that Modi could make labor reforms a priority if he wins the general election.
New labor codes, which would make it easier for firms to hire and fire workers and impose operating restrictions on unions, were approved by parliament in 2020, but they have yet to be implemented following resistance from workers and states.
The new government may also continue to delay taking on land reforms as any such moves would be contentious and lead to losses in state elections later this year.
In his first term as prime minister, Modi tried to push through legislation that would have made it easier to buy land for industrial corridors, rural housing and electrification, and for defense purposes. However, the plan was put on the backburner amid stiff resistance from the opposition.
What lies ahead for the new Indian government
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What lies ahead for the new Indian government
- Economic disparity, inflation, taxes and unemployment likely to be key challenges
- Foreign relations with China, Pakistan, Canada will continue to plague any new administration
US restricts food, metal imports on Uyghur forced labor concerns
- Goods wholly or partially made by the sanctioned firms will be restricted from entering the US, says the Department of Homeland Security
- China is accused of incarcerating over 1 million Uyghurs and other Muslim minorities in Xinjiang, although officials strongly deny this
WASHINGTON: The United States said Friday that it is barring imports from dozens more China-based companies — ranging from businesses in the metals to food industries — citing worries over forced labor.
Officials are adding around 30 entities to the Uyghur Forced Labor Prevention Act entity list, meaning that goods wholly or partially made by these firms will be restricted from entering the United States.
The new additions bring the total number on the list to 107, said the Department of Homeland Security.
The reason is that the companies were found to either source materials from China’s northwestern Xinjiang region or work with its local government “to recruit, transfer, and receive workers, including Uyghurs, out of Xinjiang,” said the US Trade Representative’s office.
Beijing has been accused of incarcerating over one million Uyghurs and other Muslim minorities in a network of detention facilities in Xinjiang, although officials strongly deny this.
The newly-targeted companies make goods ranging from agricultural to aluminum products, along with polysilicon materials.
They also mine and process metals like copper, gold and nickel, the USTR statement added.
Among them are companies tied to Chinese electric vehicle battery manufacturer CATL and China-linked Gotion too, a bipartisan US congressional committee noted on Friday.
Earlier this year, the House Select Committee on the Chinese Communist Party and others flagged CATL and Gotion’s ties to two businesses, Xinjiang Nonferrous and Xinjiang Joinworld.
Both were included in the latest update.
The committee’s chairman John Moolenaar and other lawmakers released a statement saying: “While we are pleased with this initial step, we remain concerned that CATL and Gotion’s supply chains are deeply tied to the Xinjiang region.”
The rule comes into effect on November 25.
“Companies should not secure unfair advantages by exploiting workers,” said US Trade Representative Katherine Tai.
“We will enforce our laws to address forced labor and prevent companies that violate workers’ rights from benefiting from the US market,” she added in a statement.
The Uyghur Forced Labor Prevention Act was signed into law in 2021.
Trump plans to assemble investigative teams to look into 2020 election, Washington Post reports
WASHINGTON: US President-elect Donald Trump plans to assemble investigative teams at the Department of Justice to search for evidence in battleground states that fraud tainted the 2020 election, the Washington Post reported on Friday, citing a source.
Trump, who won the 2024 election but lost the 2020 election to President Joe Biden, has falsely claimed that he lost the 2020 election due to extensive voter fraud, a view shared by millions of his supporters.
Trump was indicted last year on federal charges for his attempts to overturn the election. The charges stemmed from an investigation by Special Counsel Jack Smith.
The Washington Post, citing two people close to Trump’s transition team, reported that Trump plans to fire the entire team that worked with Smith.
Dutch court weighs a lawsuit against arms sales to Israel
- Opening the case at the court in The Hague, Judge Sonja Hoekstra noted: “It is important to underline that the Dutch State does not contest the gravity of the situation in Gaza, nor is the status of the West Bank”
THE HAGUE: Pro-Palestinian groups took the Dutch state to court on Friday, urging a halt to arms exports to Israel and accusing the government of failing to prevent what they termed a genocide in Gaza.
The NGOs argued that Israel is breaking international law in Gaza and the West Bank, invoking, among others, the 1948 UN Genocide Convention.
“Israel is guilty of genocide and apartheid” and “is using Dutch weapons to wage war,” said Wout Albers, a lawyer representing the NGOs.
“Dutch weapons are killing children every day in Palestine, including my family,” said Ahmed Abofoul, a legal adviser to Al-Haq, one of the groups involved in the suit. Israel furiously denies accusations of genocide as it presses on with the offensive in Gaza.
Opening the case at the court in The Hague, Judge Sonja Hoekstra noted: “It is important to underline that the Dutch State does not contest the gravity of the situation in Gaza, nor is the status of the West Bank.”
“Today is about finding out what is legally in play and what can be expected of the state if the state can be expected to do more or act differently than it is currently acting,” she added.
She acknowledged this was a “sensitive case,” saying: “It’s a whole legal debate.”
The lawyer for the Dutch State, Reimer Veldhuis, said the Netherlands has been applying European laws in force for arms exports.
Veldhuis argued the case should be tossed out.
“It is unlikely that the minister responsible will grant an arms export license to Israel that would contribute to the Israeli army’s activities in Gaza or the West Bank,” said Veldhuis.
The case comes one day after another court based in The Hague, the International Criminal Court, issued arrest warrants for Israel’s prime minister and former defense minister.
How COP29 outcome may impact countries most affected by climate change
- UN Climate Change Conference in Baku brought together policymakers, researchers and environmentalists from 200 countries
- Discussions covered energy transition, climate finance, loss and damage funding and environmental cost of geopolitical tensions
BAKU, Azerbaijan: The 2024 United Nations Climate Change Conference concluded in the capital of Azerbaijan on Friday with climate activists, world leaders and investors reflecting on climate change’s global impacts and the urgent need for actionable solutions.
This year’s event emphasized financing mechanisms, particularly to alleviate the suffering of vulnerable nations, and especially the developing countries most affected by climate change.
COP29 — the 29th Conference of the Parties under the United Nations climate organization UNFCCC — ran from Nov. 11 to 22 and brought together policymakers, researchers, and environmentalists from 200 countries.
A dominant theme was energy transition, as fossil fuel emissions remain the biggest driver of global warming.
The UN reports that burning coal, oil, and gas accounts for more than 75 percent of global greenhouse gas emissions and roughly 90 percent of all carbon dioxide emissions.
Policymakers argued that reducing reliance on traditional fuels and adopting modern energy solutions could significantly shrink the global carbon footprint and bring the world closer to net-zero targets.
The University of Exeter’s Global Carbon Budget recently projected total CO2 emissions to rise from 40.6 billion metric tons in 2023 to 41.6 billion in 2024.
Sharing his perspective on the COP29 negotiations and the change he hopes to see, climate activist Philip McMaster, known on social media as SustainaClaus, told Arab News he is campaigning for a a healthier environment for children.
“The message of SustainaClaus is ‘Make childhood great again.’ Why? Because we all had a childhood before,” he said on the sidelines of the conference. “It was either great or not, but it was a very important period of time, and that is what these negotiations should be about: how we make the world a better place for the next generations.”
He added: “I hope to see global change.”
DID YOUKNOW?
• In the first week of COP29, as a step to foster sustainable energy, Saudi Arabia signed an executive program with Azerbaijan, Uzbekistan, and Kazakhstan to strengthen collaboration on renewable energy development.
• The COP29 agenda included energy transition, finance, urbanization and Article 6.
• Climate finance was the main topic discussed in Baku, along with the need to raise funds for vulnerable nations.
Military activity also emerged as a significant environmental threat. Olga Lermak, communications lead at Greencubator, a Ukraine-based cleantech accelerator, noted the ecological devastation caused by war.
“War creates a climate crisis not just where it happens; it pollutes air, water, and land,” she said.
Ukraine accounts for 35 percent of Europe’s biodiversity, including 70,000 plant and animal species, according to the World Wide Fund for Nature. Among its endangered animals are the sandy blind mole-rat, the Russian desman, and the saker falcon.
The country’s ongoing conflict with Russia has caused significant damage to that biodiversity, according to Lermak.
“I hope that the negotiations held here bring great solutions, something that will help us to move forward,” she said. “I hope it is not just conversations, not just talking, but real action after this.”
Opinion
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Another key issue debated at COP29 was loss and damage funding — addressing “unavoided” damage caused by climate change in the most vulnerable countries as well as “unavoidable” damage such as that caused by rising sea levels. Investment in emissions reduction was one of the key solutions put forward for dealing with unavoided damage.
Researchers from the International Institute for Applied Systems Analysis and the Euro-Mediterranean Center on Climate Change estimate that the loss and damage needs of vulnerable countries will amount to between $130 billion and $940 billion in 2025 alone.
Gloria Bulus, team lead at Nigeria’s Bridge that Gap Initiative, emphasized that beyond highlighting loss and damage, there must also be a focus on delivering investment and implementing concrete solutions.
“We are expecting a lot to be (invested) in terms of the loss and damage, so that it goes beyond the speeches,” she said.
Highlighting some of the pressing environmental challenges her country is facing, Bulus expressed her hope for “fair” negotiations.
“Negotiations have been very slow for us,” she said. “What we want is action. What we want is an outcome that favors people, where we have renewable energy transition.”
Among other steps, COP29 promised to secure “the highest ambition outcome possible,” proposing that wealthier countries contribute $250 billion annually to developing nations to support their efforts in tackling climate change.
UK car wash owners trafficked thousands of people from Middle East to Europe
- Migrants from Syria, Iraq, Iran offered different tiers of service
- Dilshad Shamo and Ali Khdir trafficked 100 people per week in trucks, ships and by plane
LONDON: Thousands of people from the Middle East were trafficked into Europe through a vast people smuggling network based out of a British car wash.
In an operation that at times resembled a travel agency, people from Syria, Iraq and Iran were offered different tiers of service to be smuggled into Europe by various routes.
Two men pleaded guilty in a UK court on Friday to charges related to their roles in the people smuggling ring.
The UK’s National Crime Agency said Dilshad Shamo, 41, and Ali Khdir, 40, operated from the unlikely location of a car wash in Caerphilly, a town in Wales.
They were arrested in April 2023 after they had been placed under surveillance as part of an investigation that found they were trafficking about 100 people a week over a period of two years, the BBC reported.
The men used messaging and social media apps to advertise their services with videos from people who had made the journeys.
One video shows a man hidden in the back of a truck with other migrants.
“Lorry route agreement, crossing agreement with the knowledge of driver,” he says. “Here we have men, women and children. Thank God the route was easy and good.”
Another video shows a family traveling by plane. “We are very happy … this is the visa, may God bless him, we are really happy,” the migrant says.
Shamo and Khdir offered three tiers of service, the lowest being smuggling people into Europe by foot or vehicle; the next by cargo ships or yachts; and the highest level arranged travel by plane.
The smuggling routes went through Turkiye, Belarus, Moldova and Bosnia and ended in Italy, Croatia, Romania, Bulgaria, Slovenia, Germany and France. The NCA said many of the migrants continued to the UK.
Payment was made using informal “hawala” money transfers through brokers based in Iraq and Istanbul.
Once a deposit was made, Shamo and Khdir would receive a message and arrange for the migrants to be transported by their specified route or timeframe. The two men used WhatsApp to communicate with people smugglers across Europe.
The NCA said they were part of a larger organized crime group and could have made hundreds of thousands or millions of pounds that is unlikely to be recovered, the BBC reported.
“Ali Khdir and Dilshad Shamo were leading a double life,” NCA Branch Commander Derek Evans said. “While on the surface they seemed to be operating a successful car wash, they were actually part of a prolific people smuggling group moving migrants across Europe and taking thousands in payment.
“We worked painstakingly to piece together their movements to prove their important roles in a group, from advertising their services through videos to boasting of successful trips on messaging groups.”
The UK’s Minister for Border Security and Asylum Angela Eagle said criminals like Khdir and Shamo put countless lives at risk by smuggling vulnerable people in a “shameless attempt to make cash.”
She added: “We are taking action against the people smuggling gangs and will stop at nothing to dismantle their networks and bring justice to the system.”
Shamo and Khdir pleaded guilty 10 days into their trial at Cardiff Crown Court and will be sentenced at a later date.
UK Prime Minister Keir Starmer made smashing people smuggling gangs a key pledge of his election campaign earlier this year.
He has vowed to treat traffickers like terrorists and announced a new Border Security Command with additional powers to track human traffickers and shut down their bank accounts.
Politicians in the EU are battling to stem public anger at rising immigration with more than 380,000 illegal border crossings made into the EU in 2023.
Many fear that if conflicts in the Middle East escalate, Europe could face a steep rise in illegal migration similar to 2015 at the height of the Syrian Civil War.
