- 38 minutes ago
The US House of Representatives has passed the Lindsey Graham Sanctioning Russia and Iran Act of 2026, authorising tariffs of up to 100% on major buyers of Russian energy, including India and China.
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00:00Good evening, you're watching India First. I'm Gaurav Savan.
00:03There is a new tariff threat that looms large over India
00:07as U.S. tries to tighten the news around Russia and Iran.
00:12So the new U.S. House of Representatives bill,
00:15the House of Representatives, they've passed a bill
00:17empowering U.S. President Donald Trump to impose sanctions on Russia
00:22and tariff up to 100%, up to 100% on countries buying Russian oil and gas.
00:28And directly in the line of fire would be countries like India and China.
00:34This is the Lindsay Graham Sanctioning Russia and Iran Act of 2026.
00:39This was cleared by a 262 in favour and 159 against vote
00:44days ahead of Chinese President Xi Jinping's scheduled visit to the United States of America.
00:50The bill, already passed by the Senate, targets Russia's leadership, energy sector
00:56and shadow feet of vessels helping Moscow bypass the sanctions.
01:01It also authorises steep tariffs on five of the largest importers of Russian oil or gas,
01:07potentially opening a new front in the India-U.S. trade relations of friction.
01:14India and China are among the biggest buyers of Russian crude.
01:18However, countries importing less than 15% of Russia's gas exports
01:22and they're taking steps to reduce those purchases may qualify for an exemption.
01:28The legislation now awaits the presidential signature.
01:32If enacted, it could add fresh uncertainty to India's trade negotiations with Washington DC.
01:38The Ministry of External Affairs insists India is very closely monitoring further developments on this story.
01:46India remains committed to ensuring that energy security for 1.4 billion Indians is ensured through diversified sourcing.
01:57New Delhi has flagged the potential impact on bilateral ties in global energy markets.
02:02The government says it will take all necessary measures that need to be taken to protect India's trade and economic
02:09interests.
02:11India's population is top priority for the government.
02:14That's the focus. That's our top focus story on India Today at 8.
02:18Coming up at 8.30 tonight, on the occasion of the 76th birthday of Prime Minister Narendra Modi,
02:25the challenges that lie ahead and the achievements so far.
02:29Chief Economic Advisor, Dr. Anand Nageswaran, he joins us live and shares the Prime Minister's economic vision for Aviksit Bharat
02:38by 2047.
02:39Stay tuned. But first, let's get you our top story from Washington DC.
02:44China and India, to you, you better clean up your act, buy your oil and gas somewhere else.
02:51An open threat from a veteran US senator.
02:54Celebrating a bipartisan victory in the US House of Representatives.
02:59On this vote, the yeas are 262, the nays are 159.
03:03The motion is adopted.
03:05A legislation allowing the US president to impose tariffs of up to 100 percent was passed in the House on
03:12Wednesday.
03:13The sweeping sanctions bill targets the five biggest buyers of Russian oil or natural gas
03:19and could expose India, China and NATO member Turkey to new tariffs.
03:25The legislation now goes to Trump for his signature, which could happen in the next few days.
03:31To Vladimir Putin, we have your number.
03:35Your economy is reeling.
03:37We're going to throttle your war machine.
03:40China and India, to you, you better clean up your act, buy your oil and gas somewhere else.
03:48It's also a message to those enablers, those countries that are helping China and Russia evade our sanctions,
03:55that we will take action against you.
03:58The tariff threat comes just days after the BRICS summit in New Delhi,
04:03where Prime Minister Narendra Modi not only brought the Russian and Chinese presidents together,
04:07but also arranged a meeting between recent enemies, Iran and UAE.
04:16Meanwhile, before the ink could even dry on the US legislation,
04:20India has reacted, warning the tariffs could impact bilateral ties.
04:25A press release said that while India was closely monitoring further developments on the matter,
04:31the government will stay committed to ensuring energy security for its 1.4 billion citizens.
04:36India will also continue sourcing energy through diversified channels based on market conditions.
04:42There was also a warning that the issue has been discussed at high levels with US interlocutors
04:48and that its potential implications on bilateral ties and global energy markets have been made clear.
04:55India also made it clear that it will take all necessary steps to protect its trade and economic interest.
05:02The real verdict came from the stock markets.
05:05When the broad-based Nifty shot up as much as 150 points in trade, brushing off tariff fears.
05:12I think we will react accordingly.
05:14But I don't think, given the verbatim and the decision of the government of India,
05:20to bring in energy for India and India's population requirement from anywhere in the world at a reasonable price is
05:27the most important thing.
05:34The Modi government has seemingly hardened its stance on tariffs in a trade deal with the US in the past
05:40months.
05:41It has been made clear that a financial deal will not be signed till India secures a preferential tariff.
05:47What's more, exports to the US have been on the rise the past one year despite all uncertainties.
05:55Beara Report, Business Today Television.
06:02Joining me on this India First special broadcast is Jayant Krishna, former CEO, ED, NSDC and Prime Minister.
06:09Skill India Mission in a moment will be joined by Raymond Vickery Jr.
06:12Sandeep Unnithan, my colleague, also with me on this broadcast.
06:16Jayant Krishna, India imported about $40.8 billion worth of Russian crude in 25-26.
06:23And that accounted for almost 30.3% of our crude imports.
06:26So, how serious is that risk if America were to actually use this power?
06:35See, you know, if you look at, you know, this bill, it gives sweeping powers to President Trump.
06:43I think that's very, very clear, right?
06:45And which is very, very unfair because he could misuse it as past has shown us.
06:50You know, even without the sweeping powers, you know, he has misutilized his powers and so on and so forth.
06:57So, I think it's very, very unfortunate.
06:59And, you know, I think what we need to realize is that the cost of this, while India will suffer,
07:05no doubt, you know,
07:06because with 100% tariff, no country can survive, no country can do exports.
07:10But the issue is the average American family would also suffer to an extent of, almost estimates have been made
07:18that almost $3,000 worth of loss,
07:22the average American family would suffer because of high tariffs being imposed.
07:26So, I think, you know, one has to look at it very, very clearly.
07:30And, you know, let's understand, 100% is not the absolute number one would levy.
07:35It is up to 100%.
07:36No, but the threat, Sandeep, is that this sword of democracy will keep hanging on your head
07:43and exporters wouldn't know what kind of tariff do they have today, what kind of tariff will they have tomorrow,
07:49how much should they manufacture, how much should they export.
07:53So, this risk is brought in to a very smooth, what should be a very smooth and predictable regime.
08:01Absolutely, Gaurav.
08:02And, you know, the unpredictability that these U.S. tariffs have introduced into this whole equation is what worries us.
08:08You know, just a few days back, we've seen Saudi oil literally collapse, right?
08:12So, that's another big supplier of oil to us.
08:16And now you have Russian oil under threat.
08:18So, where is a country, the world's most populous country, which imports all its energy?
08:23Where are we supposed to get our energy from?
08:25I mean, is this going to be at the whim and the diktats of the United States,
08:30which is actually responsible for our plight, Gaurav?
08:32You know, all of these wars in West Asia in the last few months have been at the insistence of
08:39the United States.
08:40There was no problem at the Strait of Hormuz.
08:42As of February 28th.
08:44There was no problem at the Babel Mandap before that.
08:47And all of this is something that the United States has to, you know, answer for.
08:52And now you have tariffs being slapped on India of our, you know, by our strategic partners.
08:59Imagine.
09:00On the one hand, we are exercising with them, military exercises with them.
09:03We are buying weapons from them.
09:05And on the other hand, we are receiving the kind of, you know, this kind of treatment.
09:10And, you know, more than that, Gaurav, it is the language that is being used when it comes to India.
09:15And this is the kind of language we have not seen come from Washington in a long, long time.
09:19I mean, this is probably the language of the Cold War or the 1971 India-Pakistan War when the U
09:26.S. was on the side of Pakistan.
09:28So, I think that is what is happening here.
09:30One of our most important economic relationships, our partnerships, which is the India-U.S. relationship, is under threat.
09:37For reasons, you know, that are beyond our immediate comprehension, Gaurav.
09:43And not of our making at all.
09:45I want to bring in Raymond Vickery Jr. joins us on this broadcast.
09:51Mr. Vickery, welcome.
09:52The U.S. has given President Trump power to impose 100%, up to 100% tariff for importing Russian energy.
10:02You know, with Saudi market going down, with the demand for energy going up, what are countries like India expected
10:10to do?
10:10A complete halt on Russian oil purchases will make prices skyrocket.
10:16Global economy will be in tailspin, sir.
10:20Well, thanks for having me.
10:21It seems to me that this is a crisis situation.
10:27It is significant in two ways.
10:30One, it gives to the president tariff authority, which the Supreme Court said that he did not have because Congress
10:39had not acted previously.
10:42So, in this case, he will seem to be on solid ground.
10:47On the other hand, it is plain that this is not the imposition of 100% tariff.
10:54And there are miles to go before one finds out really what the impact will be.
11:03This only gives authority.
11:06And as we have seen in the past, President Trump does not have a strategy.
11:13He doesn't have partners.
11:14He doesn't really have principles upon which he's negotiating.
11:18So, it's very, very difficult to see what the outcome will be.
11:23In the past, he's given Putin sort of a free pass.
11:28So, will he use this or not?
11:31That's the question.
11:32And on that question, it seems to me that the message for India is that it is a great democracy.
11:41And it needs to behave like a great democracy and provide leadership in these very troubling times.
11:50The U.S. won't decide how India behaves, sir.
11:52You know, we've been a democracy far longer than the United States of America.
11:57And clearly, Jayant Krishna, India does not need lessons from the West on democracy.
12:03But at the same time, you do need access to American markets.
12:07It just seems to be a very, very difficult position for the country to be in.
12:12And if I may, Jayant Krishna, Russia supplied 51.1% of India's crude imports July 2026.
12:20India imports more than 88% of our crude requirements.
12:24Can India afford to reduce Russian oil purchases without significantly increasing the import bill,
12:30putting pressure, you know, on our economy at a time when the Saudi market seems to be going down?
12:38So, Gaurav, I mean, if you look at the last year's data, yes, India did import a lot of crude
12:43oil from Russia.
12:44But, you know, after this 25% plus another penalty of 25% tariff was, you know,
12:51there was a threat that U.S. is going to impose on India.
12:54After that, India had reduced dependence on the crude oil.
12:57And if you look at the data for November, December 25, you know,
13:03it was the lowest in the last 38 months, you know, that India imported.
13:08But India had to again go back to Russia for major imports,
13:13primarily because of the uncertainty created by, you know, the Iran war.
13:17And the fact that Iran was not able to supply to India,
13:20and a lot of countries in that region were not able to supply crude oil to India.
13:24So India has to go, I mean, it can't, you know,
13:27it's the operations of a country like India with the most populous country in the world
13:31can't come to a grinding halt just because there's a threat of tariff.
13:34We have to keep our, you know, economy moving.
13:39So I think India had no choice but to import from that places
13:43because a lot of sources of crude oil had disappeared because of the…
13:47And it was all a creation of U.S. and Israel.
13:50We all know that.
13:50Unless there is pressure, unless there is pressure that's mounted directly or indirectly,
13:55so sanctions if you buy from Iran, sanctions if you buy from Russia,
14:00Saudi market is down, then the pressure would be,
14:03you either buy from U.S. or you buy from Venezuela.
14:06Of course, we have a diversified basket, Sandeep, from 40-odd countries,
14:10but the pressure automatically would be increased from Russia,
14:14from America and Venezuela, and that would increase costs.
14:18Absolutely. You know, and you've hit the nail on the head.
14:21Look at the way the oil market has been in the last couple of months.
14:24You know, at the start of this war, this utterly unnecessary war on February 28th,
14:30oil prices were at, what, 70-odd barrel?
14:33Today, they are over 100, right?
14:36And every dollar increase in the price of oil means that India pays
14:40between $1 to $2 billion extra.
14:43So, who are we to blame for this, the $30 increase?
14:49It's a 50% increase almost in the price of oil in the last couple of months.
14:54We are paying the bill for it, a developing country like ours,
14:57which has absolutely no bones with anyone.
15:00We just focused on getting to 2047, Viksit Bharat, a $30 trillion economy.
15:06And these are the kind of minefields that we have to cross,
15:09which are not of our own creation.
15:11And a minefield which is not of our creation.
15:14And Raymond Vickery, Jr., if Washington, D.C. wants countries like India
15:18to move away from Russian oil or Iran oil,
15:21what's the alternative, sir, when 88% of our crude energy is imported?
15:27Or is Washington, D.C. underestimating the economic importance
15:30of discounted, important, you know, Russian oil
15:33for countries or economies like India?
15:36Well, I think that there's no question that the Trump administration
15:40is underestimating India.
15:44We have had 30 years of continued upward progress in the relationship.
15:50And he has been a bull in a China shop with these tariffs.
15:55First of all, the so-called Liberation Day tariffs,
15:58and then a 25% tariff in regard to Russian oil.
16:03He thinks that tariffs are his weapon of choice,
16:08that he can bring people to his way of thinking,
16:13whatever that may be.
16:15It's hard to figure out what that thinking is,
16:17but he can do it by tariffs.
16:20And, of course, that's completely inadequate.
16:22In order to be able to wage peace like you wage war,
16:28you have to have a strategy,
16:31you have to have partners,
16:33and you have to have principles.
16:35And, of course, that's not within his lexicon.
16:38And his approach is one of a real estate transactional approach to it.
16:45Now, that having been said,
16:47India has plenty of alternatives
16:52to work its way through a situation.
16:55The sky is not falling.
16:57It is the case that before the Russian invasion of Ukraine,
17:03India basically imported no oil from Russia.
17:09Very, very little.
17:11It was only because of a price differential
17:14that India then turned to Russia.
17:18So, yeah, sure, there are problems with Saudi Arabia.
17:21In fact, the Strait of Hormuz was open at that point of time.
17:26The Strait of Hormuz is not open today.
17:29Post-28th of February,
17:31and that's US actions there,
17:33it's changed the game,
17:35even for countries like India,
17:37adversely impacting us, Jayant Krishna, isn't it?
17:41Sorry, Gaurav?
17:43It's, you know, the Strait of Hormuz was open before 28th of February.
17:47So, when India wasn't buying Russian, discounted Russian oil before,
17:51now we are compelled to,
17:52because you can't buy it from Iran,
17:54the Strait of Hormuz is closed,
17:55so you can't get it from Saudi Arabia,
17:57you can't get it from Kuwait,
17:58you can't get it from Oman,
17:59you can't get it from, you know, Qatar.
18:02The situation is very precarious.
18:04So, absolutely, Gaurav.
18:05You know, India has a Hobson's choice, you know.
18:07I mean, and the fact is,
18:09while the price at which we are importing now from Russia has gone up,
18:12it's not as low as it used to be a year ago.
18:15But the fact is,
18:16it is still lower than the price which would,
18:18you know, suppose we start importing from US or Venezuela, right?
18:21I think they can't match the price which Russia is giving.
18:25You know, so I think, you know,
18:26these are the economic decisions
18:28every country should have the liberty to take its own,
18:30in its own national interest.
18:32And, you know,
18:33it is very surprising that, you know,
18:36this bill has been passed with 262 members voting for it
18:40and only 159 opposing it, you know.
18:43I think it's very, very surprising.
18:44I think, you know,
18:45they need to be educated,
18:46they need to be told the rationale
18:48that why India is buying from there.
18:51It has very few sources left.
18:53And it should be free, you know,
18:56to do whatever it wants to.
18:57In fact, Sandeep,
18:58this may adversely impact
19:00even the trade agreement
19:02between India and the United States of America
19:04because we would want to see
19:06what tariffs are being imposed on different countries
19:08and we would want to ensure
19:10that we have a better deal
19:12compared to our peers
19:14before signing the dotted line.
19:16Absolutely, Gaurav.
19:17And, you know,
19:17this is possibly, you know,
19:18a compelling tool
19:19that the United States is using against us
19:22because Commerce Minister Piyush Gowell
19:24travels to Washington
19:26for negotiating that India-U.S. trade agreement.
19:31And this is possibly
19:32one of those coercion tactics
19:35to, you know,
19:36get him to agree to,
19:37get us to agree
19:38to an unequal trade deal.
19:41And if you've noticed,
19:41Gaurav,
19:42the tone of the government's response today
19:44was a little different
19:45from what it was in the past
19:47where the government has mentioned,
19:49the government of India has mentioned
19:50that this could impact
19:51the India-U.S. relationship.
19:53Yes.
19:54And there has been
19:54a certain hardening of stance
19:56on our part as well.
19:58We are looking for other markets.
20:01You know,
20:02it truly is a diplomatic tightrope walk.
20:04Raymond Vickery Jr.,
20:05Jayant Krishna and Sandeep,
20:07many thanks for joining me.
20:08I want to focus
20:09on the other big story
20:11that we're tracking here
20:12on India First.
20:14Islamabad
20:15is now being called
20:17Containerabad.
20:18Now, you'd wonder
20:19why is it being called
20:20Containerabad?
20:21It's the images
20:22that I'm about to show you
20:23of containers
20:24being put across Islamabad
20:27to prevent
20:28one rally after the other
20:30from the 20th
20:31to the 24th
20:32to the 27th
20:33because Pakistan is gracing
20:34for a series of protests.
20:36Watch those images
20:37on your television screen.
20:38These shipping containers,
20:40anywhere there is no trade
20:41in Pakistan
20:42or in Pakistan
20:43or with Pakistan,
20:45most of the countries
20:46don't want to trade
20:47with a global terror epicenter.
20:48So, all these containers
20:49are now being brought
20:50and put around Islamabad.
20:53We'll get you more
20:54in this report.
20:57Welcome to Containerabad
20:59where shipping containers
21:01are being used
21:01to block roads
21:03as Pakistani authorities
21:04prepare for upcoming protests.
21:07More than 1,000 heavy
21:08shipping containers
21:09have been deployed
21:10across Islamabad.
21:12Over 17,000 security personnel
21:14have been mobilized
21:16and key arteries
21:17into the Pakistani capital
21:19are being sealed.
21:20Authorities are sealing
21:21major routes
21:22into Islamabad
21:23and tightening access
21:25to the Red Zone.
21:27The first test comes
21:28on September 20th
21:30when Jamaat-Islami
21:31is planning a march
21:32over soaring fuel prices
21:33and the petroleum levy.
21:35Five days later,
21:36on September 25th,
21:38the Farmers' Alliance
21:39or Kisan Itihad
21:40is expected to march
21:42in Islamabad.
21:43And on September 27th,
21:45the Pakistan Tehri Kainsaf
21:47and its allies
21:48are set to hold
21:49another major protest.
21:52The Pakistan government's response?
21:55Containers.
21:56More police.
21:57More barricades.
21:59More crowd control equipment.
22:01Containers are being positioned
22:02at critical points
22:03including D-Chalk,
22:05Embassy Road,
22:06Paisabad,
22:07NAD-RA Chalk,
22:08Margala Road
22:09and Motorway Chalk.
22:11Security has been tightened
22:12across Red Zone entry points,
22:14heavily guarded
22:15with right gear,
22:16tear gas
22:17and water cables.
22:18As it was in Pakistan before,
22:21there is no strategy
22:23that you have
22:24to stop the people
22:24coming to come.
22:25You have to listen to them,
22:27what to do.
22:27This is the thing.
22:28But we have to make
22:30a container of Islamabad
22:30to make a container of Islam.
22:32Look at this.
22:33Here we start from here.
22:35This is 26 number.
22:37You have to look at the container
22:39to come here.
22:39Sohail Afridi didn't come to Mars.
22:43He was sitting with his daughter with Imran Khan.
22:48He was sitting at 7-8.
22:50At this time, Red Zone is located.
22:53You can see that it has been sealed with containers.
22:57Red Zone is coming from the streets.
22:59We also look at the containers.
23:03There is also a block of road.
23:19From a capital city to a container city, Islamabad's road to resolving its issue remains blocked
23:27and now so do roads across the city.
23:31Bureau Report, India Today.
23:37Prime Minister Narendra Modi is now 76 years old and as the nation celebrates his 76th birthday,
23:43we talk about the achievements and the challenges ahead.
23:48We, Anant Nageswaran, the Chief Economic Advisor to Government of India,
23:53joins me on the other side of a quick break.
23:54Stay with us.
24:25We'll see you next time.
24:35Welcome back.
24:36Prime Minister Narendra Modi is 76 years old today and we're talking about his journey.
24:42From a young boy who sold tea at the Vadnagar railway station in Gujarat to being the Prime Minister of
24:51India,
24:52the longest consecutively serving Prime Minister of India, 12 years and counting,
24:59his journey actually reads like a script that even Bollywood would think twice before writing because it sounds like fiction,
25:07too good to be true, too good to be true, but it's a story of hard work.
25:11From the by-lanes of Vadnagar to the Prime Minister's office to Seven Lok Kalyan Marg.
25:17From Jan Sevak to Pradhan Sevak.
25:20His rise is one of the defining political journeys of modern India.
25:25And perhaps what stands out is not just where he's reached, but the road ahead.
25:31He's talking about a Vikasit Bharat by 2047.
25:36You speak to anyone who's worked with him, he's very clear about the big picture, about the goals and the
25:43roadmap.
25:43So what is he talking about? Sankalp, Seva and Netritwa.
25:49His tenure has been built on a monumental list of initiatives.
25:53Jan Dhan, Swachh Bharat, UPI, Ayushman Bharat and so many more.
25:59But to talk about what he's been able to achieve and the challenges that lie ahead.
26:04And he's championed the cause of Atmanirbhar Bharat.
26:08That's one way and especially in this churn that the world is watching.
26:14The Prime Minister is very clear.
26:17You have to be self-reliant in the road ahead.
26:20Let's talk about the Prime Minister's journey.
26:24Joining me is V. Anant Nageswaran, Chief Economic Advisor to Government of India.
26:29Sir, welcome.
26:31You work closely with the Prime Minister.
26:34Sir, you're a part of this journey, Viksit Bharat by 2047.
26:39As India emerges as the fastest growing major economy, in your view, sir, how much of this is the reforms
26:47he initiated?
26:49What do you make of this journey so far?
26:52Thank you for having me on your show.
26:54To answer your question, I would say a very, very high proportion of the credit to India's journey towards becoming
27:03a Viksit Bharat.
27:05And the fact that many Indians are even able to aspire for and dream of that possibility owes a lot
27:12to the kind of economic stewardship that the Honourable Prime Minister has provided in the last 12 years.
27:19He inherited an economy that was partly or largely broken because we had a high current account deficit, we had
27:29double-digit inflation rates, and we had a currency that had just cratered, and fiscal deficit was very high, and
27:37the banking system was in a crisis, and so were corporate balance sheets.
27:42We should not forget that these, we should not forget, we should not forget that these were the legacy that
27:46he inherited on the macroeconomic trend.
27:50So given that, to have repaired the bank balance sheets, and today Indian banks not performing assets are at a
27:57historical low, and the insolvency and bankruptcy code also helped corporate balance sheets to become healthy.
28:04And then he unleashed financial inclusion to the PM, and then handled COVID so well compared to many other nations
28:17that India was able to recover and bounce back with very high growth rates in 21-22 and 22-23,
28:25and sustain them in the following three years as well.
28:28And I'm leaving out an important landmark reform, single nation, single tax, the goods and services tax, apart from the
28:36fact that from 2017-18, public investment in infrastructure and capital expenditure had gone up by 3.5 to 4x,
28:45four times.
28:46And so much so that India's infrastructure when it comes to airports, road connectivity, energy generation, the number of cities
28:56that have metro rail, and the inland water transport for free, etc., if you really look at them, these have
29:04lifted India's potential growth rate.
29:07And it has also lifted India's aspirations, and all the while maintaining macroeconomic stability, having inherited a very high fiscal
29:16deficit, and with the COVID compounding it, he has fixed it.
29:21India earned its first credit rating upgrade in 2025.
29:24So we can go on.
29:26So clearly…
29:26It's interesting you point out, sir, that from Fragile 5, he was in 2013-14, he's been able to bring
29:34it to the fastest growing large economy right now.
29:38But the challenges, you know, that were en route, and we'll talk about those in a moment, but the challenges
29:44right now, there are many who say jobs, for example, or private investment, for example, that's yet to pick up
29:51at the full scale.
29:52In your view, sir, what's holding that back?
29:55What more needs to be done to unlock that animal instinct or that potential?
30:00Sure.
30:01No, you are right.
30:02The private corporate sector…
30:04But first of all, let me tell you that India's overall capital formation rate at 33-34% of GDP
30:11is a very high number.
30:13So there is capital formation happening, and you can say that it is because of public investment by government,
30:18and the state governments as well, given the 50-year interest-free loans.
30:23And within the private sector, I think there are some research reports that show that listed companies have been doing
30:31better than non-listed companies or unlisted companies when it comes to capital formation.
30:36But the biggest reason that you are looking at a much higher number, but it is not there, are multiple.
30:43One is the global uncertainty, the kind of extraordinarily high degree of manufacturing competition coming from China,
30:52given their own deflation, given their own domestic economy travails.
30:56They rely extremely heavily on exports, and their deflation is making them, you know, utilize the global markets,
31:06which naturally makes investors in other countries pull back and decide when to put their money to work, etc.
31:13But having said that, India's capital formation in the private sector is beginning to rise in the last few quarters,
31:21and the bank credit growth to industry is running at 20%.
31:26And I think given the kind of steady growth rate that we have witnessed in the Indian economy,
31:31the private sector capital formation, and I hear I refer to the unlisted space,
31:36I think it will catch up with the households and with the public sector.
31:41In fact, making them step back a bit, and private sector capital formation will probably take over the baton from
31:47these two segments of the economy.
31:50Back to you.
31:51Sir, you spoke of the global headwinds, you know, you spoke of COVID-19.
31:56So, 2020, that was a huge challenge.
31:59Then, 2022, the Russia-Ukraine war, both energy and fertilizers adversely impacted.
32:06Then again, 2025 and 2026, you've had Iran-US and Israel conflict, the impact again on energy and fertilizers.
32:16What's it like working with the Prime Minister when these challenges come and you sit in the Prime Minister's office
32:23and talk about how do you overcome these challenges?
32:26Of course, I mean, I don't sit in the Prime Minister's office.
32:29The Chief Economic Advisor's office is part of the Ministry of Finance.
32:32But I do regular periodic updates on the macro situation to the Honorable Prime Minister.
32:39I think one of the things that you alluded to in your own initial intro remarks is his laser-like
32:45focus and his ability to remember details and to ensure follow-up and a steady hand.
32:53At the same time, not losing focus on the underlying inherent strengths of the economy for meeting short-term needs.
33:03He doesn't sacrifice the long-term macroeconomic stability or financial prudence, even if the short-term situation calls for remedies.
33:12He's able to keep an eye on the medium-term strengths that have been serving Indian economy very well over
33:18the last 12 years,
33:19even as he has to take short-term measures to make sure that the economy is able to handle the
33:25crisis.
33:25We saw that in the pandemic.
33:27We saw that during the 2022 Russia-Ukraine crisis.
33:30And even this year, in ensuring supply of cooking gas, natural gas, crude oil, diversifying the sources,
33:38using the crisis to make people move from cooking gas to pipe natural gas, etc.
33:43And then in the last two years, you have seen the liberalization of nuclear energy.
33:48The draft rules have been announced recently and also launching the critical minerals and rare earth mission.
33:55So, it is the ability to manage the short-term crisis and the exigency, while keeping a very firm and
34:02clear-eyed focus on the medium-to-long-term priorities,
34:05I would say, are his core strengths.
34:09And, you know, you've talked of GDP growth numbers.
34:12They remain strong, 7.8%, even though there was a storm in a teacup or more politically over certain numbers.
34:20But if we were to come to rural income, for example, or wages, you know, which would give you that
34:27sense that
34:28as India grows, that journey towards Viksit Bharat, salaries are also going up.
34:33Now, that also remains under pressure.
34:36Now, what more needs to be done?
34:38And what is the Prime Minister and your entire team, you know, the Finance Minister, you, the entire team doing
34:44to ensure that that growth should be felt across sectors?
34:48Yeah, absolutely, undoubtedly.
34:50I mean, economic growth per se would count for very little unless it touches people's lives and makes a difference.
34:57There should be no doubt about that.
34:59And rural income and rural employment growth, if you look at the annual numbers,
35:04they have been steadily improving post-COVID.
35:06In fact, it is the recent monthly data that have been somewhat cyclically drifting lower,
35:14but annual numbers show a very robust growth in both the rural employment and incomes.
35:20Clearly, rural income growth is cyclical in nature, and this year's monsoon has introduced
35:26a certain sense of uncertainty with respect to agricultural output and rural demand down the road.
35:33So government will be very much alive to the situation and responding to that if necessary.
35:38But to your broader question about what we should be doing, and in fact, the government has been doing a
35:44lot.
35:44I think memories are a bit short these days because of the onslaught of information from social media.
35:50But July 2024 budget by the government was exclusively focused on employment,
35:56whether it is corporate internship, apprenticeship schemes, incentives for first-time jobs created by companies
36:03in manufacturing and in non-manufacturing sectors, contributing to some of the provident fund contributions
36:11by the employees, the government taking over the employers' contributions so that they don't feel disincentivized to hire
36:17because of pension contributions which the government took over.
36:21So the entire July 2024 budget was about employment generation.
36:25Second, the labor-intensive free trade agreements that the government is now signing with the UK,
36:32it is now active.
36:33And with the European Union, it is going to become active by the end of the year.
36:37And these agreements open labor-intensive goods and services sectors for Indian producers and entrepreneurs.
36:45And the third thing that the government is doing, it is actively facilitating deregulation efforts in states.
36:52And that is an effort underway, both in the union government, of course, that is separate,
36:57but in the states as well, where there is a touchpoint of the local governments with the businesses, small businesses.
37:04And this deregulation will lower the cost of doing business for small and medium businesses in states
37:11and therefore contributing to their hiring much more.
37:14So I would say fiscal initiatives, free trade agreements, deregulation initiatives,
37:22and the various incentives given for capital formation by the states, 50-year interest-free loans,
37:30and ensuring that credit availability to MSMEs, look at the MSME credit go from the banking sector,
37:37it is running at nearly 23%.
37:39So all these things, and then the various initiatives given for startups and new businesses,
37:44et cetera, all of these things, given the uncertainties, despite the global uncertainties,
37:50all of these things are contributing to keeping up job creation.
37:55I will continue to facilitate job creation in the Indian economy in the coming years.
38:00And manufacturing, that's been one of the key focus areas and key result areas for the Prime Minister.
38:07We've heard him talk about Atmanir Bharat, increased manufacturing on ground.
38:13I mean, considering China manufactures so much that it's exporting finished products,
38:19on ground, how much of our manufacturing is actually taking off?
38:23What more needs to be done to ensure that our manufacturing is world-class, competitive, and export-oriented too?
38:32I mean, the entire PLI initiative is all about bringing manufacturing to a greater share of gross value addition, GVA,
38:42in the economy.
38:43And in fact, in constant prices, India's manufacturing share of GVA has been rising from 14% something to 16
38:51.1% in the last three years,
38:53in constant price terms.
38:56And I think apart from the PLI initiatives, ensuring energy availability, ensuring skilling,
39:03creating these free trade agreements so that manufacturing can export goods with lower or no duties, et cetera.
39:10And also creating this, reducing the customs duties on intermediate goods and inputs,
39:19which were the major plans of the budget announced in February, 2026.
39:25And then creating demand visibility for manufactured goods in the country
39:29through reduction in direct taxes and indirect taxes in the course of 2025.
39:34All these are all measures to ensure that Indian businesses continue to grow their manufacturing share
39:43because free trade agreements bring in an element of competition as well.
39:47And then also induce businesses to invest in R&D.
39:51So multiple measures are underway and the manufacturing share of GVA rising
39:55is showing that these efforts are bearing fruit.
39:58And how would you describe, you know, Prime Minister Narendra Modi's personal role
40:04in shaping the economic policies in the past 12 years and of course the road ahead?
40:09Because $4 trillion to reach that $30 trillion mark by 2047,
40:14this will have to grow a multifold and manifold now, sir.
40:19How to describe his personal role is to simply say that he is the architect of the economic policy.
40:24He is the architect of the manufacturing vision and of the world-class infrastructure
40:30that India has been creating over the last 12 years.
40:34And also he is the one who anticipated the supply chain disruptions and weaponization that could happen
40:42and which is why he called for Atmanidbartha and indigenization since the Russia-Ukraine war broke out.
40:49And I think his emphasis on indigenization is turning out to be prescient,
40:54even that more and more supply chain choke points and weaponization is emerging increasingly so in the world.
41:01And then when you look at the fiscal prudence and fiscal stability,
41:04which has brought down the overall interest rates in the Indian economy,
41:08even though it has gone up in the last few weeks or so,
41:12the 10-year bond yield at 7% from India is at historical lows,
41:17which is what brought us the credit rating upgrade as well,
41:20even as it improved the quality of fiscal expenditure by increasing the capital expenditure share
41:26and lowering the revenue expenditure share.
41:29All of these things, he is the architect of all these policies,
41:33whether it is financial inclusion, Jandan Yojana and the mobile phone and the jam trinity,
41:40digital public infrastructure.
41:41We all know that he is a big believer in the role of technology in improving lives
41:48and improving efficiency in the economy.
41:50So I would say his imprint is very evident in almost every major policy initiative
41:57and the macroeconomic stability that have underpinned India's rise amidst massively rising global uncertainties.
42:05So that is why we are confident that while there are challenges,
42:09because we are a lower middle income economy right now,
42:12there are challenges about in geopolitics, in climate change, in supply chain, etc.
42:17We are confident that we can meet these challenges because he has focus,
42:22he has determination and he has vision and the passion to deliver on India's Viksit Bharat aspirations.
42:31Sir, for joining me here on this India First special broadcast,
42:35because that vision and that dream of a Viksit Bharat by 2047,
42:40you know, that's actually a nation's dream to be a developed country and that inclusive development.
42:46Many thanks for joining me and hope to have you on India First more often.
42:50Many thanks, sir.
42:51Welcome.
42:57What a journey from the bylanes of Vadnagar in Gujarat to seven Lokalyan Marg in the national capital
43:06and someone who's hailed as working relentlessly for a Viksit Bharat.
43:13He had a dream, he has a dream and he's working to fulfill the dream.
43:18His journey actually reads like a script.
43:22Someone who was serving chai as a young lad at the railway station in Vadnagar,
43:28becomes a pracharak, becomes the organizational BJP general secretary,
43:33then the chief minister of Gujarat, long stint there and then prime minister of India in 2014
43:41and continues to serve the nation.
43:44I quickly want to cut across and bring into this conversation Kiran Rijiju,
43:49Union Minister for Parliamentary Affairs and Minority Affairs, Government of India,
43:53to talk about Prime Minister Narendra Modi's journey.
43:56Sir, welcome.
43:57You've worked extensively with the Prime Minister, but you've known him much longer.
44:02The two of you, and not many people perhaps would know that,
44:06were party general secretaries in the late 1990s, 98, 99.
44:12You know, now that he's turned 76, we're talking about the Prime Minister's journey.
44:17What are your thoughts about him when he was a party general secretary in 98, 99?
44:23Well, Gaurav, it is a momentous occasion for all of us to speak about Modiji.
44:31When I met him for the first time in 1999, he was the party general secretary in charge of the
44:39organization.
44:40And I was also looking after the organization in the state of Arunachal Pradesh.
44:45So, during the meeting, we came across and I found that he is so different.
44:54He is different from others.
44:56Now, he was different from other people then also.
45:01Modiji was so effective as a general secretary organization
45:05that he, in a way, transformed the way we function as a party karekarta.
45:12Initially, we used to just work as a normal party karekarta,
45:16whatever programs and whatever duties are given.
45:21We just simply execute.
45:23But Modiji taught us that it is not only execution of the work.
45:29It must be execution with perfection, on time bound,
45:36with the target of whatever is to be achieved,
45:40must be achieved within a set time and discipline in life.
45:46Everything was so focused that we changed the way we used to function.
45:51So, Modiji has transformed my own working system,
45:56my own way of looking at things,
45:59in a way transformed my lifestyle.
46:02Oh, he has transformed your lifestyle.
46:04But you have been quite an energetic, if I may, young man,
46:08you know, for over two decades that I have known you, sir.
46:13But how did the Prime Minister transform your lifestyle?
46:15And if I may, he has given you a lot of work experience,
46:21you know, from MOS home, to sports, to youth affairs,
46:26to food processing, to earth science, to a cabinet minister,
46:31law and justice, you know, big, big promotion there,
46:34parliamentary affairs, minority affairs,
46:37a great experience he's given you.
46:39Yes, Gaurav, it has been, as I said,
46:43a tremendous opportunity provided to me by the party.
46:47And later on, when we formed the government,
46:49Prime Minister Modiji has assigned me in different critical portfolios.
46:54Before that also, when he was the chief minister,
46:57I was the national secretary of the party.
47:00So, as a national secretary of the Bharatya Janta party,
47:04we often meet and we always talk about so many things
47:09and we keep learning from him.
47:11But when Modiji became the Prime Minister,
47:14it was altogether a new life for me.
47:18When I was made first time as Minister of State in the Home Affairs,
47:24he was hands-on with every minister's daily,
47:29you know, curricular activities,
47:31the performance of the ministers.
47:33He used to come back and tell us
47:36that you have done this, you have done that,
47:39and this could have been done in this manner.
47:41So, the way he follows up with the work,
47:44so I became extremely alert and cautious also,
47:49so that I don't falter.
47:50So, the first time I was in the Home Ministry for five years,
47:56that was the beginning of my understanding of the administration.
48:00During Vajpayee's time, I was in the commission,
48:03but that was a different era.
48:06Modiji's time, you can't make a mistake.
48:09You can't make a mistake.
48:10And just to remind you and through you to your audience and the viewers,
48:15the art of governance has truly changed in India after 2014.
48:21But tell me this, sir, the prime minister has now become India's longest-serving elected prime minister
48:28in terms of continuous, you know, service and office.
48:32What has been the biggest factor in your view behind, you know,
48:37the ability to maintain this political continuity and remain a popular prime minister?
48:44Foremost, what comes into my mind is,
48:48the prime minister has a vision.
48:51Then he has the road map of that entire vision.
48:56He doesn't think in a fragmented manner.
48:59He has a long-term plan.
49:02And each step is connected.
49:05If you connect all the dots,
49:06it's all in a series of planning and series of steps he has taken.
49:12That is why, electorally, he has been the most successful prime minister
49:17because he has not only ensured the continuous victory of NDA and Bharatiya Janta party,
49:26serving as the longest elected prime minister,
49:29he has also ensured the victory of the party in the states.
49:33That means, in the states also, people vote in the ML election in the name of Modiji.
49:41Even in the municipal elections also, people vote in the name of Modiji.
49:46So today, if Bharatiya Janta party has become such a colossal political party in India,
49:52NDA is successful because of the Modiji's effort to run it as a family,
50:00these are great examples of leadership.
50:03And I think the great success of prime minister Modiji
50:07is to not only show a strong leadership,
50:11but a cohesive coalition bring along everybody
50:15and to work with the team,
50:18Sabka Sat, Sabka Vikas,
50:20and Ek Bharat, Shresth Bharat,
50:22to join everybody together.
50:25Nobody should be left out with a global ambition,
50:30with a local aspiration.
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