- 7 minutes ago
The United States House of Representatives has passed the Lindsey Graham Sanctioning Russia and Iran Act of 2026, sending legislation to President Donald Trump that enables tariffs of up to 100 percent on major buyers of Russian crude oil and natural gas, including India and China. In response, the Ministry of External Affairs affirmed India's commitment to securing energy supplies through diversified sources while communicating bilateral and market implications to US interlocutors. Amid geopolitical developments and Russian crude accounting for 51.1 percent of Indian oil imports in July 2026, Chief Economic Advisor Dr V Ananth Nageswaran and Union Minister Kiren Rijiju examined India's economic trajectory and governance roadmap toward Viksit Bharat by 2047. Discussion points included banking sector balance sheet reforms, capital expenditure expansion, the Production Linked Incentive scheme, trade agreements, and administrative strategies under Prime Minister Narendra Modi.
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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 to 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.
03:43You 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
03:54evade our sanctions, that 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'll react accordingly, but I don't think given the verbatim and the decision of government of India
05:20to bring in energy for India and India's population requirement from anywhere in the world at a reasonable price
05:27is the most important thing.
05:28So let us see.
05:30They've spoken about it.
05:31How much of it materializes is something that we'll have to wait and watch out.
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.
05:48What's more, exports to the US have been on the rise the past one year despite all uncertainties.
05:55Beera 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.
06:10We'll be joined by Raymond Vickery Jr., Sandeep 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 the average American family would suffer because of high tariffs being imposed.
07:27So 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%. Maximum is 100%.
07:38No, but the threat, Sandeep, is that this sword of democracies 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. And, you know, the unpredictability that these U.S. tariffs have introduced into this whole equation
08:06is what worries us. You know, just a few days back, we've seen Saudi oil literally collapse, right?
08:13So that's another big supplier of oil to us. And 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 as 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 partner.
08:59On 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.
09:20I 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,
09:37is under threat for 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 part 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, and there are
10:56miles 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.
11:12He 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.
11:53You know, we've been a democracy far longer than the United States of America, and clearly, Jayant Krishna, India does
11:59not 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.
12:13And 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.
12:23Can India afford to reduce Russian oil purchases without significantly increasing the import bill, putting pressure, you know, on our
12:33economy 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, there was a
12:51threat 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, it was the lowest in the last
13:0538 months, you know, that India imported.
13:08But India had to again go back to Russia for major imports, primarily because of the uncertainty created by, you
13:16know, the Iran war.
13:17And the fact that Iran was not able to supply to India and a lot of countries in that region
13:22were not able to supply crude oil to India.
13:24So, India has to go, I mean, it can't, you know, it's the operations of a country like India with
13:30the most populous country in the world can'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 because a lot of sources of crude
13:44oil had disappeared because of the, and it was all a creation of U.S. and Israel.
13:49Unless there is pressure, unless there is pressure that's mounted directly or indirectly.
13:56So, sanctions if you buy from Iran, sanctions if you buy from Russia, Saudi market is down.
14:02Then the pressure would be, you 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 and, from 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, oil prices were at what,
14:3270 a barrel?
14:33Today, they are over 100, right?
14:36And every dollar increase in the price of oil means that India pays between $1 to $2 billion extra.
14:44So, who are we to blame for this?
14:45The $30 increase, it's a 50% increase almost in the price of oil in the last couple of months.
14:54We are paying the bill for a developing country like ours, which has absolutely no bones with anyone.
15:00We just focused on getting to 2047, Vixit, Bharat, a $30 trillion economy.
15:06And these are the kind of minefields that we have to cross, which 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 to move away from Russian oil or Iran
15:21oil,
15:22what's the alternative, sir, when 88% of our crude energy is imported?
15:27Or is Washington, D.C. underestimating the economic importance of discounted Russian oil for countries or economies like India?
15:36Well, I think that there's no question that the Trump administration is 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, and then a 25% tariff in regard to Russian oil.
16:03He thinks that tariffs are his weapon of choice, that he can bring people to his way of thinking, whatever
16:14that may be.
16:15It's hard to figure out what that thinking is, but 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, you have to have a strategy, you have
16:31to have partners, and 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.
16:44Now, that having been said, India has plenty of alternatives to work its way through a situation.
16:55The sky is not falling.
16:57It is the case that before the Russian invasion of Ukraine, India basically imported no oil from Russia.
17:09Very, very little.
17:11It was only because of a price differential that India then turned to Russia.
17:17So, yeah, sure, there are problems with Saudi Arabia.
17:22Sir, with due respect, the Strait of Hormuz was open at that point of time.
17:25The Strait of Hormuz is not open today.
17:29Post-28th of February, and that's U.S. actions there, it's changed the game, even 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 discounted Russian oil before, now we are compelled to, because you can't buy it from
17:53Iran,
17:54the Strait of Hormuz is closed, so you can't get it from Saudi Arabia, you can't get it from Kuwait,
17:58you can't get it from Oman, you can't get it from, you know, Qatar.
18:02The situation is very precarious.
18:03So, absolutely, Gaurav, you know, India has a Hobson's choice, you know, I mean, and the fact is,
18:09while the price at which we are importing now from Russia has gone up, it's not as low as it
18:13used to be a year ago.
18:15But the fact is, it is still lower than the price which would, you know, suppose we start importing from
18:20U.S. or Venezuela, right?
18:21I think they can't match the price which Russia is giving, you know, so I think, you know, these are
18:27the economic decisions.
18:28Every country should have the liberty to take its own, in its own national interest.
18:32And, you know, and it is very surprising that, you know, this bill has been passed with 262 members voting
18:40for it,
18:41and only 159 opposing it, you know.
18:43I think it's very, very surprising.
18:44I think, you know, they need to be educated, they need to be told the rationale that why India is
18:50buying from there.
18:51It has very few sources left.
18:53And it should be free, you know, to do whatever it wants to.
18:57In fact, Sandeep, and this may adversely impact even the trade agreement between India and the United States of America,
19:04because we would want to see what tariffs are being imposed on different countries,
19:08and we would want to ensure that we have a better deal compared to our peers before signing the dotted
19:15line.
19:16Absolutely, Gaurav.
19:17And, you know, this is possibly, you know, a compelling tool that the United States is using against us,
19:22because Commerce Minister Piyush Gowell travels to Washington for negotiating that India-U.S. trade agreement.
19:31And this is possibly one of those coercion tactics to, you know, get him to agree to, get us to
19:38agree to an unequal trade deal.
19:41And if you've noticed, Gaurav, the tone of the government's response today was a little different from what it was
19:46in the past,
19:47where the government has mentioned, the government of India has mentioned that this could impact the India-U.S. relationship.
19:53And there has been a certain hardening of stance on our part as well.
19:58We are looking for other markets, you know…
20:02It truly is a diplomatic tightrope walk.
20:04Raymond Vickley Jr., Jayant Krishna and Sandeep, many thanks for joining me.
20:46Welcome back.
20:47Prime Minister Narendra Modi is 76 years old today.
20:50And we're talking about his journey from a young boy who sold tea at the Vadnagar railway station in Gujarat
20:59to being the Prime Minister of India,
21:03the longest consecutively serving Prime Minister of India, 12 years and counting.
21:10His journey actually reads like a script that even Bollywood would think twice before writing,
21:16because it sounds like fiction, too good to be true, but it's a story of hard work.
21:22From the by-lanes of Vadnagar to the Prime Minister's office to Seven Lok Kalyan Marg.
21:28From Jan Sevak to Pradhan Sevak.
21:31His rise is one of the defining political journeys of modern India.
21:36And perhaps what stands out is not just where he's reached, but the road ahead.
21:42He's talking about a Vikasit Bharat by 2047.
21:47You speak to anyone who's worked with him, he's very clear about the big picture, about the goals and the
21:54road map.
21:55So what is he talking about?
21:57Sankalp, Seva and Netritwa.
22:00His tenure has been built on a monumental list of initiatives.
22:04Jandhan, Swachh Bharat, UPI, Ayushman Bharat and so many more.
22:10But to talk about what he's been able to achieve and the challenges that lie ahead.
22:15And he's championed the cause of Atmanirbhar Bharat.
22:19That's one way and especially in this churn that the world is watching.
22:25The Prime Minister is very clear.
22:27You have to be self-reliant in the road ahead.
22:31Let's talk about the Prime Minister's journey.
22:34Joining me is V. Anant Nageswaran, Chief Economic Advisor to Government of India.
22:40Sir, welcome.
22:42You work closely with the Prime Minister.
22:45You're a part of this journey, Vikasit Bharat by 2047.
22:50As India emerges as the fastest growing major economy, in your view, sir, how much of this is the reforms
22:58he initiated?
22:59What do you make of this journey so far?
23:03Thank you for having me on your show.
23:05And it's, I mean, to answer your question, I would say a very, very high proportion of the credit to
23:11India's journey towards becoming a Vikasit Bharat.
23:15And the fact that many Indians are even able to aspire for and dream of that possibility owes a lot
23:23to the kind of economic stewardship that the Honourable Prime Minister has provided in the last 12 years.
23:31He inherited an economy that was partly or largely broken because we had a high current account deficit.
23:39We had double-digit inflation rates, and we had a currency that had just cratered, and fiscal deficit was very
23:47high, and the banking system was in a crisis, and so were corporate balance sheets.
23:53We should not forget that these were the legacy that he inherited on the macroeconomic front.
24:00So given that, to have repaired the bank balance sheets, and today Indian banks not performing assets are at a
24:08historical low, and the insolvency and bankruptcy code also helped corporate balance sheets to become healthy.
24:15And then he unleashed financial inclusion to the PM Jandan Yojana, and then handled COVID so well compared to many
24:27other nations that India was able to recover and bounce back with very high growth rates in 21-22 and
24:3422-23, and sustain them in the following three years as well.
24:39And I'm leaving out an important landmark reform, single nation, single tax, the goods and services tax, apart from the
24:47fact that from 2017-18, public investment in infrastructure and capital expenditure had gone up by 3.5 to 4x,
24:56four times, and so much so that India's infrastructure when it comes to airports, road connectivity, energy generation,
25:05the number of transportation, the number of transportation, the number of cities that have metro rail, and the inland water
25:11transport for free, etc., if you really look at them, these have lifted India's potential growth rate, and it has
25:19also lifted India's aspirations, and all the while maintaining macroeconomic stability, having inherited a very high fiscal deficit, and with
25:28the COVID compounding it, he has fixed it.
25:31India earned its first credit rating upgrade in 2025. So, we can go on.
25:37It's interesting you point out, sir, that from Fragile 5, he was in 2013-14, he's been able to bring
25:45it to the fastest growing large economy right now, but the challenges, you know, that were en route, and we'll
25:53talk about those in a moment, but the challenges right now,
25:55there are many who say jobs, for example, or private investment, for example, that's yet to pick up at the
26:02full scale. In your view, sir, what's holding that back? What more needs to be done to unlock that animal
26:09instinct or that potential?
26:10Sure. No, you are right. The private corporate sector, but first of all, let me tell you that India's overall
26:18capital formation rate at 33-34% of GDP is a very high number.
26:24So, there is capital formation happening, and you can say that it is because of public investment by government and
26:30the state governments as well, given the 50-year interest-free loans.
26:33And within the private sector, I think there are some research reports that show that listed companies have been doing
26:42better than non-listed companies or unlisted companies when it comes to capital formation.
26:47But the biggest reason that you are looking at a much higher number, but it is not there, are multiple.
26:54One is the global uncertainty, the kind of extraordinarily high degree of manufacturing competition coming from China, given their own
27:04deflation, given their own domestic economy travails.
27:07They rely extremely heavily on exports, and their deflation is making them utilize the global markets, which naturally makes investors
27:18in other countries pull back and decide when to put their money to work, etc.
27:24But having said that, India's capital formation in the private sector is beginning to rise in the last few quarters,
27:31and the bank credit growth to industry is running at 20%.
27:36And I think given the kind of steady growth rate that we have witnessed in the Indian economy, the private
27:43sector capital formation, and I hear I refer to the unlisted space, I think it will catch up with the
27:49households and with the public sector.
27:51In fact, making them step back a bit, and private sector capital formation will probably take over the baton from
27:58these two segments of the economy.
28:01Back to you.
28:01Sir, you spoke of the global headwinds, you know, you spoke of COVID-19.
28:07So 2020, that was a huge challenge.
28:10Then 2022, the Russia-Ukraine war, both energy and fertilizers adversely impacted.
28:17Then again, 2025 and 2026, you've had Iran, US and Israel conflict, the impact again on energy and fertilizers.
28:27What's it like working with the prime minister when these challenges come and you sit in the prime minister's office
28:33and talk about how do you overcome these challenges?
28:37Of course, I mean, I don't sit in the prime minister's office.
28:40The chief economic advisor's office is part of the ministry of finance.
28:43I do do regular periodic updates on the macro situation to the honourable prime minister.
28:49I think one of the things that you alluded to in your own initial intro remarks is his laser-like
28:56focus and his ability to remember details and to ensure follow-up and a steady hand.
29:04At the same time, not losing focus on the underlying inherent strengths of the economy for meeting short-term needs.
29:14He doesn't sacrifice the long-term macroeconomic stability or financial prudence, even if the short-term situation calls for remedies.
29:22He's able to keep an eye on the medium-term strengths that have been serving Indian economy very well over
29:29the last 12 years, even as he has to take short-term measures to make sure that the economy is
29:34able to handle the crisis.
29:36We saw that in the pandemic, we saw that during the 2022 Russia-Ukraine crisis, and even this year, in
29:43ensuring supply of cooking gas, natural gas, crude oil, diversifying the sources, using the crisis to make people move from
29:51cooking gas to pipe natural gas, etc.
29:54And then in the last two years, you have seen the liberalisation of nuclear energy, the draft rules have been
30:00announced recently, and also launching the critical minerals and rare earth mission.
30:05So, it is the ability to manage the short-term crisis and the exigency, while keeping a very firm and
30:12clear-eyed focus on the medium- to long-term priorities, I would say, are his core strengths.
30:19Okay. And, you know, you've talked of GDP growth numbers, they remain strong, 7.8%, even though there was a
30:26storm in a teacup or more politically over certain numbers.
30:30But, if we were to come to rural income, for example, or wages, you know, which would give you that
30:38sense that as India grows, that journey towards Viksit Bharat, salaries are also going up.
30:44Now, that also remains under pressure.
30:47Now, what more needs to be done, and what is the Prime Minister and your entire team, you know, the
30:53Finance Minister, you, the entire team doing, to ensure that that growth should be felt across sectors?
30:59Yeah. Absolutely. Undoubtedly. I mean, economic growth, per se, would count for very little, unless it touches people's lives and
31:07makes a difference.
31:08There should be no doubt about that.
31:09And rural income and rural employment growth, if you look at the annual numbers, they have been steadily improving post
31:16-COVID.
31:17In fact, it is the recent monthly data that have been somewhat cyclically drifting lower, but annual numbers show a
31:27very robust growth in both the rural employment and incomes.
31:31Clearly, rural income growth is cyclical in nature, and this year's monsoon has introduced a certain sense of uncertainty with
31:40respect to agricultural output and rural demand down the road.
31:44So, government will be very much alive to the situation and responding to that, if necessary.
31:49But to your broader question about what we should be doing, and in fact, the government has been doing a
31:54lot, I think memories are a bit short these days because of the onslaught of information from social media.
32:01But July 2024 budget by the government was exclusively focused on employment, whether it is corporate internship, apprenticeship schemes, incentives
32:11for first-time jobs created by companies in manufacturing and in non-manufacturing sectors,
32:17contributing to some of the provident fund contributions by the employees, the government taking over the employers' contributions so that
32:25they don't feel disincentivized to hire because of pension contributions which the government took over.
32:31So, the entire July 2024 budget was about employment generation.
32:36Second, the labor-intensive free trade agreements that the government is now signing with the UK, it is now active.
32:44And with the European Union, it is going to become active by the end of the year.
32:48And these agreements open labor-intensive goods and services sectors for Indian producers and entrepreneurs.
32:56And the third thing that the government is doing, it is actively facilitating deregulation efforts in states.
33:03And that has an effort underway both in the union government, of course, that is separate,
33:08but in the states as well, where there is a touchpoint of the local governments with the businesses.
33:15And this deregulation will lower the cost of doing business for small and medium businesses in states and therefore contributing
33:23to their hiring much more.
33:25So, I would say fiscal initiatives, free trade agreements, deregulation initiatives, and the various incentives given for capital formation by
33:38the states,
33:3950-year interest-free loans, and ensuring that credit availability to MSMEs, look at the MSME credit code from the
33:47banking sector, it is running at nearly 23%.
33:49So, all these things, and then the various initiatives given for startups and new businesses, etc.,
33:56all of these things, given the uncertainties, despite the global uncertainties,
34:01all of these things are contributing to keeping up job creation and will continue to facilitate job creation in the
34:08Indian economy in the coming years.
34:10And manufacturing, that's been one of the key focus areas and key result areas for the Prime Minister.
34:18We've heard him talk about Atmanir Bharat increased manufacturing on ground.
34:25I mean, considering China manufactures so much that it's exporting finished products on ground,
34:30how much of our manufacturing is actually taking off, what more needs to be done to ensure that our manufacturing
34:37is world-class, competitive, and export-oriented too?
34:43Sure. I mean, the entire PLI initiative is all about bringing manufacturing to a greater share of gross value addition,
34:52GVA, in the economy.
34:53And, in fact, in constant prices, India's manufacturing share of GVA has been rising from 14% something to 16
35:02.1% in the last three years in constant price terms.
35:07And I think apart from the PLI initiatives, ensuring energy availability, ensuring skilling, creating these free trade agreements
35:15so that manufacturing can export goods with lower or no duties, et cetera, and also creating this, reducing the customs
35:27duties on intermediate goods and inputs,
35:29which were the major plans of the budget announced in February 2026.
35:35And then creating demand visibility for manufactured goods in the country through reduction in direct taxes and indirect taxes in
35:43the course of 2025.
35:45All these are all measures to ensure that Indian businesses continue to grow their manufacturing share
35:53because free trade agreements bring in an element of competition as well and then also induce businesses to invest in
36:01R&D.
36:02So, multiple measures are underway and the manufacturing share of GVA rising is showing that these efforts are bearing fruit.
36:10And how would you describe, you know, Prime Minister Narendra Modi's personal role in shaping the economic policies in the
36:17past 12 years
36:18and, of course, the road ahead?
36:20Because $4 trillion to reach that $30 trillion mark by 2047, this will have to grow multifold and manifold now,
36:28sir.
36:29How to describe his personal role is to simply say that he is the architect of the economic policy.
36:34He is the architect of the manufacturing vision and of the world-class infrastructure that India has been creating over
36:43the last 12 years.
36:44And also, he is the one who anticipated the supply chain disruptions and weaponization that could happen,
36:53and which is why he called for Atmanidbartha and indigenization since the Russia-Ukraine war broke out.
37:00And I think his emphasis on indigenization is turning out to be prescient,
37:05given that more and more supply chain choke points and weaponization is emerging increasingly so in the world.
37:12And then when you look at the fiscal prudence and fiscal stability,
37:15which has brought down the overall interest rates in the Indian economy,
37:19even though it has gone up in the last few weeks or so,
37:22the 10-year bond yield at 7% from India is at historical lows,
37:27which is what brought us the credit rating upgrade as well,
37:31even as it improved the quality of fiscal expenditure
37:34by increasing the capital expenditure share and lowering the revenue expenditure share.
37:40All of these things are, he is the architect of all these policies,
37:44whether it is financial inclusion,
37:47Jandan Yojana and the mobile phone and the Jam Trinity,
37:51digital public infrastructure.
37:52We all know that he is a big believer in the role of technology in improving lives
37:59and improving efficiency in the economy.
38:01So I would say his imprint is very evident in almost every major policy initiative
38:08and the macroeconomic stability that have underpinned India's rise amidst massively rising global uncertainties.
38:16So that is why we are confident that while there are challenges,
38:19because we are a lower middle-income economy right now,
38:23there are challenges in geopolitics, in climate change, in supply chain, etc.
38:28We are confident that we can meet these challenges
38:31because he has focus, he has determination,
38:35and he has vision and the passion to deliver on India's Viksit Bharat aspirations.
38:42Sir, for joining me here on this India First special broadcast,
38:45because that vision and that dream of a Viksit Bharat by 2047,
38:51you know, that's actually a nation's dream to be a developed country
38:55and that inclusive development.
38:57Many thanks for joining me and hope to have you on India First more often.
39:01Many thanks, sir.
39:02Welcome.
39:08What a journey from the bylanes of Vadnagar in Gujarat
39:13to seven Lok Kalyan Marg in the national capital
39:17and someone who's hailed as working relentlessly for a Viksit Bharat.
39:24He had a dream, he has a dream, and he's working to fulfill the dream.
39:29His journey actually reads like a script.
39:33Someone who was serving chai as a young lad at the railway station in Vadnagar
39:38becomes a pracharak, becomes the organizational BJP general secretary,
39:44then the chief minister of Gujarat, long stint there,
39:49and then prime minister of India in 2014, and continues to serve the nation.
39:55I quickly want to cut across and bring into this conversation
39:58Kiran Rijiju, Union Minister for Parliamentary Affairs and Minority Affairs,
40:03Government of India, to talk about Prime Minister Narendra Modi's journey.
40:06Sir, welcome.
40:08You've worked extensively with the Prime Minister, but you've known him much longer.
40:13The two of you, and not many people perhaps would know that,
40:17were party general secretaries in the late 1990s, 98, 99.
40:23You know, now that he's turned 76, we're talking about the Prime Minister's journey.
40:28What are your thoughts about him when he was a party general secretary in 98, 99?
40:34Well, Gaurav, it is a momentous occasion for all of us to speak about Modiji.
40:42When I met him for the first time in 1999, he was the party general secretary in charge of the
40:50organization.
40:51And I was also looking after the organization in the state of Arunachal Pradesh.
40:56So, during the meeting, we came across, and I found that he is so different.
41:05He is different from others now. He was different from other people then also.
41:12Modiji was so effective as a general secretary organization that he, in a way, transformed the way we functioned as
41:21a party karakarta.
41:22Initially, we used to just work as a normal party karakarta, whatever programs and whatever duties are given, we just
41:32simply execute.
41:34But Modiji taught us that it is not only execution of the work, it must be execution with perfection, on
41:45time bound, with the target of whatever is to be achieved, must be achieved within a set time and discipline
41:55in life.
41:57Everything was so focused that we changed the way we used to function.
42:02So, Modiji has transformed my own working system, my own way of looking at things, in a way transformed my
42:12lifestyle.
42:13Oh, he's transformed your lifestyle, but you've been quite an energetic, if I may, young man,
42:18you know, for over, you know, two decades that I've known you, sir, but how did the Prime Minister transform
42:25your lifestyle?
42:26And if I may, he has given you a lot of work experience, you know, from MOS home, to sports,
42:36to youth affairs, to food processing, to earth science, to a cabinet minister, law and justice, you know, big, big
42:44promotion there, parliamentary affairs, minority affairs, great experience he's given you.
42:50Yes, Gaurav, it has been, as I said, a tremendous opportunity provided to me by the party.
42:58And later on, when we formed the government, Prime Minister Modiji has assigned me in different critical portfolios.
43:05Before that also, when he was the chief minister, I was the national secretary of the party.
43:11So, as a national secretary of the Bhartyajanta party, we often meet and we always talk about so many things
43:20and we keep learning from him.
43:22But when Modiji became the prime minister, it was altogether a new life for me.
43:28When I was made, first time as minister of state in the home affairs, he was hands-on with every
43:38minister's daily, you know, curricular activities, the performance of the ministers.
43:44He used to come back and tell us that you have done this, you have done that, and this could
43:51have been done in this manner.
43:52So, the way he follows up with the work, so I became extremely alert and cautious also, so that I
44:00don't falter.
44:01So, the first time I was in the home ministry for five years, that was the beginning of my understanding
44:10of the administration.
44:12During Vajpayee's time, I was in the commission, but that was a different era.
44:17Modiji's time, you can't make a mistake.
44:19And Gaurav, just to remind you and through you to your audience and the viewers, the art of governance has
44:29truly changed in India after 2014.
44:32But tell me this, sir, the prime minister has now become India's longest-serving elected prime minister in terms of
44:40continuous, you know, service and office.
44:43What has been the biggest factor, in your view, behind, you know, the ability to maintain this political continuity and
44:51remain a popular prime minister?
44:55Foremost, what comes into my mind is, prime minister has a vision.
45:01Then he has the roadmap of that entire vision.
45:06He doesn't think in fragmented manner.
45:10He has a long-term plan, and each step is connected.
45:16If you connect all the dots, it's all in a series of planning and series of steps he has taken.
45:22That is why, electorally, he has been the most successful prime minister, because he has not only ensured the continuous
45:34victory of NDA and Bharatiya Janta Party, serving as the longest elected prime minister.
45:40He has also ensured the victory of NDA and Bharatiya Janta Party in the name of NDA, even in the
45:52municipal elections also, people vote in the name of NDA.
45:56So today, if Bharatiya Janta Party has become such a colossal political party in India, NDA is successful because of
46:06the Modiji's effort to run it as a family.
46:10These are great examples of leadership, and I think the great success of Prime Minister Modi is to not only
46:20show a strong leadership, but a cohesive coalition, bring along everybody, and to work with the team,
46:30and to join everybody together, nobody should be left out with a global ambition, with a local aspiration.
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