Good morning. In today's briefing, we delve into two significant developments shaping India's political and economic landscape. First, exclusive insights into the Nationalist Congress Party's planned reunification, and second, a comprehensive analysis of the government's Economic Survey for 2025-26, tabled in Parliament yesterday.
NCP Merger: A Plan Set Before Tragedy
Will the two factions of the Nationalist Congress Party merge? According to revelations by The Indian Express, the party was actively preparing to announce its reunification on February 8, following the zilla parishad election results. This plan was reportedly in place before the untimely demise of senior leader Ajit Pawar.
NCP leaders have indicated that while Pawar's death may have introduced some uncertainty regarding the timeline, the fundamental process of merger remains intact. This reunification could potentially mark the return of the Sharad Pawar-led faction to the government, signaling a significant shift in Maharashtra's political dynamics.
Alok Deshpande provides detailed inside information on these developments, suggesting that the merger was strategically timed to capitalize on post-election momentum.
Economic Survey 2025-26: Key Highlights and Concerns
Geopolitical Impact on Rupee Stability
The government's annual Economic Survey for 2025-26, presented yesterday, offers a thorough review of India's economic performance. Chief Economic Advisor V Anantha Nageswaran has raised alarms about the adverse effects of geopolitics on the rupee's stability. He noted that India's "strongest macroeconomic performance in decades" is colliding with a "global system that no longer rewards macroeconomic success with currency stability, capital inflows or strategic insulation."
Foreign Investment Challenges
The Survey highlights concerning trends in foreign capital inflows, pointing to a drying up of investments and subdued investor sentiment towards India. It suggests that proactive reforms may be necessary to attract more foreign investment, emphasizing the need for policy adjustments in response to global economic shifts.
Domestic Corporate Investment Appetite
Another critical observation is the relative "lack of investment appetite" among Indian corporates when compared to private corporations in post-war America, Germany, Japan, and East Asia. The Survey argues that Swadeshi, or self-reliance, is "inevitable and necessary" in the face of a volatile global trading environment, urging domestic businesses to step up their investment efforts.
Budget Recommendations
The Economic Survey makes several recommendations that could feature prominently in the upcoming Union Budget. These include:
- Reducing government shareholding in listed public sector undertakings to enhance efficiency and attract private investment.
- Further correcting inverted duty structures to support domestic manufacturing and reduce import dependencies.
- Focusing on input tariff neutrality to create a level playing field for industries and promote fair competition.
Expert Perspectives
Subhash Chandra Garg, former Finance and Economic Affairs Secretary, critiques the Survey for lacking analysis of government policy or programme failures. He remarks, "ES-26 will adorn bookshelves, instead of being read and discussed," suggesting a need for more critical evaluation.
In contrast, Dharmakirti Joshi, chief economist at Crisil, observes that the Survey has evolved from analysis to advocacy. This year, it strongly urges the private sector to scale up investment in infrastructure building, highlighting a shift towards encouraging corporate participation in national development.
Other Top Stories
Uttarakhand Freedom of Religion Act Under Scrutiny
An investigation by The Indian Express into the Uttarakhand Freedom of Religion Act (UFRA), enacted in 2018 to curb forced religious conversions, reveals that judicial scrutiny has often undermined the state's claims. Court records show that only five cases have gone to full trial so far, all resulting in acquittals. Aiswarya Raj's report explores why these cases fail to hold up in court, raising questions about the act's implementation and effectiveness.
Supreme Court Stays UGC Regulations
The Supreme Court has stayed the University Grants Commission (Promotion of Equity in Higher Education Institutions) Regulations, 2026, which address caste discrimination in educational institutions. The court noted that these regulations raise pertinent questions that, if unexamined, could "divide society." Key changes in the 2026 regulations compared to the 2012 guidelines involve differences in definitions, which we explain in detail.
Mystery of Ashutosh Maharaj's "Deep Meditation"
Twelve years ago, Ashutosh Maharaj, founder of the Divya Jyoti Jagrati Sansthan (DJJS), was declared clinically dead. Yet, his body remains at the sect's Nurmahal ashram, kept under medical supervision. Followers insist he is in a state of "deep meditation," with some awaiting his "return." This intriguing case blends faith and science, as the dera chief's "survival" continues to attract growing numbers of devotees.
Gujarat's Big Cat Conservation Success
Last year, Gujarat achieved a unique distinction by becoming the only state in India to house all three big cats: tigers, lions, and leopards. A lone four-year-old Royal Bengal Tiger was spotted in the Ratanmahal corridor, and the state plans to retain it. Efforts include establishing a breeding centre to boost prey populations like deer and sambar, crucial for sustaining these majestic predators.
That concludes today's briefing. Wishing you a productive and informed day ahead.
