India's Union Budget FY 2026-27: Key highlights

February 01, 2026

 India's Union Budget FY   2026-27: Key highlights

Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2026–27 earlier today, February 1, 2026 in Parliament. The Budget is framed against a backdrop of global economic uncertainty, supply chain realignments, and evolving investment dynamics, while reaffirming India’s focus on sustained growth and fiscal discipline.

While presenting the Budget, the finance minister stated that the government aims to “transform aspiration into achievement and potential into performance.” She described this year’s Budget as a Yuva Shakti–driven Budget with proposals emphasising the strengthening of domestic manufacturing, scaling high-growth services, and reinforcing infrastructure as key drivers of long-term economic expansion.

Reflecting on the country’s growth journey so far, the finance minister also said, “We have pursued far-reaching structural reforms, 
fiscal prudence and monetary stability whilst 
maintaining a strong thrust on public investment.  Keeping atmanirbharta as a lodestar, we have built domestic manufacturing capacity, energy security and reduced critical import dependencies.” She also said, “We have ensured that citizens must benefit from every action of the Government, undertaking reforms to support employment generation, agricultural productivity, household purchasing power and universal services to people.”

This year’s Union Budget underscores the importance of regulatory certainty, ease of doing business, and targeted reforms to attract long-term capital and deepen India’s integration with global markets.

Let's look at the key focus areas of the Union Budget 2026–27:

Budget theme

1. Yuva Shakti–driven growth: Converting India’s demographic dividend into productive capacity through skilling, employment, and enterprise creation.
    
2. Three Kartavya (duties) guiding this year’s Budget

• Accelerating and sustaining economic growth by enhancing productivity, competitiveness, and resilience amid volatile global dynamics.
• Fulfilling aspirations and building capacity by strengthening human capital, skills, and institutional capabilities.
• Advancing Sabka Sath, Sabka Vikas by ensuring equitable access to opportunities across regions, communities, and sectors.

3. Investment-led development focus

• Scaling manufacturing in strategic and frontier sectors.
• Strengthening MSMEs as growth partners and supply-chain anchors.
• Reinforcing services as a core driver of growth, employment, and exports.

4. Strengthening India’s investment ecosystem

• Sustained public capital expenditure to crowd in private investment.
• Infrastructure-led regional development, especially in Tier II and Tier III cities.
• Long-term energy security, climate technologies, and resource resilience.

5. Enhancing ease of doing business and capital flows

• Regulatory simplification, tax certainty, and trust-based compliance.
• Measures to improve FDI facilitation, portfolio investment, and global integration.
• Launch of an Investment Friendliness Index of States in 2025, aimed at promoting competitive cooperative federalism and encouraging states to strengthen policy frameworks, facilitation mechanisms, and investor responsiveness.

Biopharma

The Union Budget 2026–27 places biopharmaceuticals at the centre of India’s strategy to scale up manufacturing in strategic and frontier sectors. To support the development of India as a global biopharma manufacturing hub, the Budget introduces a comprehensive framework to create an ecosystem, build capacity, and enable clinical research:

1. Biopharma SHAKTI

(Strategy for Healthcare Advancement through Knowledge, Technology & Innovation)

• Biopharma SHAKTI aims to develop India as a global biopharma manufacturing hub.
• The scheme will be launched with an outlay of ₹10,000 crore over the next five years.
• It will focus on building an ecosystem for the domestic production of biologics and biosimilars. The initiative will include the establishment of a biopharma-focused institutional network, comprising three new National Institutes of Pharmaceutical Education and Research (NIPERs) and the upgradation of seven existing institutes.
• A network of over 1,000 accredited clinical trial sites will be created to strengthen India's clinical research and development capabilities.

2. Institutional and Talent Capacity Development

• Establishment of three new national institutes and upgradation of seven existing institutes to strengthen advanced pharmaceutical education, research, and skills development.
• Alignment of academic and research capabilities with industry requirements and global benchmarks.

3. Clinical Research and Regulatory Infrastructure

• Creation of a network of 1,000 accredited clinical drug trial sites across the country.
• Strengthening of regulatory processes to improve approval timelines and enhance global acceptance of Indian-manufactured biopharma products.

Manufacturing

Through targeted schemes, cluster-based development, and capacity expansion, the Budget aims to create an enabling environment for long-term industrial investment in India. Key initiatives to scale up manufacturing in strategic and frontier sectors include:

Biopharma SHAKTI Scheme

• To develop India as a global biopharma manufacturing hub through ecosystem-led capacity creation

India Semiconductor Mission (ISM) 2.0

• To expand India’s semiconductor capabilities across equipment, materials, design, and supply-chain resilience, with an enhanced outlay of ₹40,000 crore

Electronics Components Manufacturing Scheme

• Outlay to be increased to ₹40,000 crore to deepen domestic value addition and capitalise on rising investment momentum

Rare Earth Corridors

• Establishment of dedicated corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to promote mining, processing, research, and manufacturing of rare earth materials

Chemical Manufacturing Infrastructure

• Support for States to establish three dedicated Chemical Parks on a cluster-based, plug-and-play model to strengthen domestic chemical production

Construction and Infrastructure Equipment (CIE)

• Introduction of a scheme to enhance domestic manufacturing of high-value and technologically advanced construction and infrastructure equipment

Container Manufacturing

• Launch of a dedicated Container Manufacturing Scheme with a budgetary allocation of ₹10,000 crore over five years to build globally competitive capacity

Rejuvenation of Legacy Industrial Clusters

• Introduction of a scheme to revive 200 legacy industrial clusters through infrastructure and technology upgradation to improve cost competitiveness and efficiency

Textiles

The Union Budget 2026–27 reaffirms textiles as a priority labour-intensive sector with strong linkages to employment, exports, and regional manufacturing clusters. The Budget adopts an integrated approach to modernise traditional textile ecosystems, strengthen fibre self-reliance, and upgrade skills across the value chain. Key measures for the textile sector include:

Integrated Textile Programme comprising five components:

• National Fibre Scheme to support self-reliance in natural, man-made, and new-age fibres
• Textile Expansion and Employment Scheme to modernise traditional clusters through capital support for machinery and technology upgradation
• National Handloom and Handicraft Programme to integrate and strengthen existing schemes for artisans and weavers
• Tex-Eco Initiative to promote globally competitive and sustainable textiles and apparel
• Samarth 2.0 to modernise and upgrade the textile skilling ecosystem through industry and academic collaboration

These measures aim to enhance productivity, support value addition, and strengthen India's position in global textile and apparel markets.

Infrastructure

The Union Budget maintains a strong focus on public capital expenditure to support logistics efficiency, urban development, and industrial expansion, thereby crowding in private investment.

Key infrastructure-related initiatives include:

• Public capital expenditure of ₹12.2 lakh crore in FY27 to sustain momentum in infrastructure creation
• Development of seven High-Speed Rail corridors to strengthen inter-city connectivity and support economic agglomeration across major growth regions.
• Expansion of inland water transport through the operationalisation of 20 new National Waterways, improving logistics efficiency and connectivity between industrial clusters, mineral-rich regions, and ports.
• Continued focus on infrastructure development in Tier II and Tier III cities with populations exceeding 5 lakh, which have emerged as new growth centres
• Development of City Economic Regions (CERs), with an allocation of ₹5,000 crore per region over five years, to unlock agglomeration-led growth and strengthen urban economic clusters through a challenge-based, reform-linked financing model.
• Infrastructure-led regional development to support manufacturing clusters, services hubs, and urban economic regions

Champion SMEs and Micro Enterprises

Recognising MSMEs as a critical driver of employment, exports, and supply-chain resilience, the Budget introduces targeted measures to support their scale-up and formalisation.

Key initiatives include:

• Creation of Champion SMEs through targeted equity, liquidity, and professional support
• Enhanced access to capital and risk finance to support growth-oriented enterprises
• Introduced a dedicated ₹10,000 crore SME Growth Fund to create future Champions, incentivising enterprises based on select criteria
• A ₹2,000 crore top-up for the Self-Reliant India Fund, set up in 2021, to support micro enterprises and maintain their access to risk capital

Digital Infrastructure and Data Centres​​​

The budget places digital infrastructure at the centre of India’s investment-led growth strategy, recognising data centres and cloud services as critical enablers of the digital economy, artificial intelligence, and next-generation services. The Budget signals long-term policy stability and regulatory certainty, supporting large-scale investments in data storage, processing, and digital service delivery.​​​

Key measures to strengthen digital infrastructure and attract investment include:​​​

1. ​​​​Tax holiday till 2047 for data centre operations​​​

• ​​​​Introduction of a long-term tax holiday for foreign companies providing cloud services using data centre infrastructure in India​​​
• ​​​​Intended to provide predictability and investment certainty for hyperscalers, cloud service providers, and digital infrastructure investors​​​
• ​​​​Applicable to data centre operations commencing on or before March 31, 2031​​​
• ​​​​Companies, however, need to provide services to Indian customers through an Indian reseller entity​​​
• ​​​​A safe harbour of 15% on cost to be provided if the company providing data centre services from India is a related entity​​​

2. ​​​​Support for large-scale digital infrastructure development​​​

• ​​​​Reinforcement of India’s position as a preferred destination for data centre investments, supported by improving power availability, connectivity, and regulatory frameworks​​​
• ​​​​Alignment with growing demand from digital services, fintech, e-commerce, AI, and global capability centres​​​

3. ​​​​Enabling ecosystem for digital and technology-driven services​​​

• ​​​​Strengthening the foundation for high-growth digital sectors, including cloud computing, artificial intelligence, analytics, and platform-based services​​​
• ​​​​Integration of digital infrastructure development with broader initiatives on ease of doing business, tax certainty, and investment facilitation

Education, Skills and Services-Led Growth

The Union Budget 2026–27 reinforces the role of services as a core driver of growth, employment, and exports, supported by targeted institutional and skills-building interventions.

Key initiatives include:

• Establishment of a High-Powered ‘Education to Employment and Enterprise’ Standing Committee
• Focus on strengthening the services sector to achieve a 10% global share by 2047
• Rationalisation of taxation for IT services, including software development services, ITeS, KPO, and contract R&D, under a unified category of Information Technology Services with a common safe harbour framework

AVGC and Creative Economy

The Budget recognises the growing role of the creative economy or the Orange Economy as a source of skilled employment and export potential. Key initiatives include:

• Support for the Animation, Visual Effects, Gaming and Comics (AVGC) sector, projected to require 2 million professionals by 2030
• Strengthening of creative talent pipelines through the establishment of AVGC Content Creator Labs in 15,000 secondary schools and 500 colleges, supported by the Indian Institute of Creative Technologies, Mumbai

Climate Technologies and Energy Transition

The Budget strengthens India’s commitment to climate action and industrial decarbonisation through targeted support for emerging clean technologies.

Key measures include:

• Carbon Capture Utilisation and Storage (CCUS)
• Proposed outlay of ₹20,000 crore over the next five years
• Focus on scaling CCUS technologies and achieving higher readiness levels across five industrial sectors: power, steel, cement, refineries, and chemicals

These initiatives aim to support India’s long-term energy security while enabling cleaner industrial growth.

Healthcare and Medical Value Tourism

The Budget emphasises strengthening healthcare services and positioning India as a global destination for medical value tourism.

Key initiatives proposed for strengthening the healthcare workforce include:

• Expansion of institutions for Allied Health Professionals (AHPs) to address skill gaps across critical disciplines
• Coverage of multiple healthcare roles, including diagnostics, clinical support, and behavioural health services
• Creation of a stronger talent pipeline to support both domestic healthcare needs and international patient services

Care Economy and Allied Health Services

• Development of a structured care ecosystem covering geriatric and allied care services
• Introduction of nationally aligned training programmes to support multi-skilled caregivers
• Intended to improve service quality, address demographic shifts, and generate employment across healthcare and care services

AYUSH and Traditional Medicine

Strengthening India’s traditional medicine ecosystem

• Establishment of new All India Institutes of Ayurveda
• Upgradation of AYUSH pharmacies and drug testing laboratories to improve certification and quality standards
• Enhancement of research, training, and global outreach for traditional medicine systems

Healthcare Infrastructure and Trauma Care

Expansion of emergency and trauma care capacity through

• Establishment of new institutions and upgradation of existing mental health and trauma care facilities
• Strengthening district-level healthcare infrastructure to improve access and resilience

Medical Value Tourism Hubs

Support for States to establish five Regional Medical Value Tourism Hubs in partnership with the private sector. These hubs are envisaged as integrated healthcare complexes, combining:

• Advanced medical and surgical services
• Medical education and research institutions
• Diagnostics, post-treatment care, and rehabilitation infrastructure
• Dedicated facilitation centres for international patients

Tourism

This year’s Budget has adopted a comprehensive approach to strengthen tourism infrastructure, enhance skills development, and leverage digital platforms to improve visitor experiences and destination management. Key initiatives to strengthen the tourism sector include:

1. Destination development and experiential tourism

• Development of 15 archaeological sites into vibrant, experiential cultural destinations through curated access and immersive interpretation
• Promotion of ecologically sustainable tourism, including mountain trails, turtle trails, and bird-watching trails across select regions

2. Regional and niche tourism promotion

• Targeted initiatives to strengthen tourism circuits in emerging destinations, including heritage, spiritual, and nature-based tourism hubs
• Alignment of tourism development with regional infrastructure and connectivity initiatives

These measures aim to position tourism as a scalable economic activity that supports job creation, regional development, and investment opportunities across hospitality, transport, digital services and allied sectors.

Tax Reforms

• Introduction of a simplified and modernised Income Tax framework, with redesigned rules and forms to reduce compliance complexity and improve ease of filing.
• Tax holiday till 2047 for foreign companies providing cloud services using data centre infrastructure in India, aimed at strengthening India’s position as a global data centre and digital services hub.
• Measures to reduce litigation and improve trust-based tax administration, including rationalisation of penalties, decriminalisation of minor offences, and integration of assessment and penalty proceedings.
• Extension and rationalisation of safe harbour provisions, particularly for Information Technology and IT-enabled services, to provide greater certainty on transfer pricing and tax outcomes.
• Targeted tax measures to support manufacturing, services, and export-oriented sectors, including incentives for data centres, cloud services, toll manufacturing, and bonded warehousing.
• Reforms to support foreign investment and global mobility, including exemptions and simplified tax treatment for non-resident experts and foreign service providers operating from India.
• Rationalisation of customs and indirect tax provisions to support energy transition, critical minerals, electronics manufacturing, and export competitiveness.
• Continued emphasis on predictability, transparency, and stability in the tax regime, aimed at improving India’s overall investment climate and long-term investor confidence.

Customs reforms

• Simplification of the customs tariff structure to support domestic manufacturing, promote export competitiveness, and correct duty inversion.
• Phased removal of long-standing customs duty exemptions on items manufactured domestically or where imports are negligible.
• Incorporation of effective rates from customs notifications directly into the tariff schedule to improve transparency and certainty for businesses.
• Expansion of duty-free and concessional duty provisions to support export-oriented sectors, including marine products, leather, textiles, electronics, and energy transition technologies.
• Enhanced trust-based customs systems, including extended duty deferment periods and greater facilitation for authorised and compliant importers, to enable faster clearance and reduced transaction costs.
• Measures to improve customs processes through automation and risk-based assessments, supporting smoother movement of goods across borders and strengthening India’s trade facilitation framework.

Read the full budget speech here: https://www.indiabudget.gov.in/

போலிச் சுதந்திரம்- ENB சுவரொட்டி

 

India-US ‘trade deal’

 EXPLAINER

Modi, Trump announce India-US ‘trade deal’: What we know and what we don’t

US president says deal reached with India after Modi agreed to stop buying Russian oil. But details are scarce.

US President Donald Trump takes questions during a joint news conference with Indian Prime Minister Narendra Modi in the East Room of the White House in Washington, DC, on February 13, 2025 [Jim Watson/AFP]

ByYashraj Sharma 3 Feb 2026















































































New Delhi, India – United States President Donald Trump has announced what he described as a “trade deal” with India to reduce market barriers between the two countries, which have a combined gross domestic product of $33 trillion.
On Monday, Trump said he would reduce trade tariffs on Indian goods from 50 to 18 percent after New Delhi agreed to stop buying Russian oil – one of the major sticking points between the two sides.

Published On 3 Feb 2026

Trump said he reached the agreement with Indian Prime Minister Narendra Modi in a telephone call. The agreement comes at the end of the first year of Trump’s global trade war – of which India had been one of the worst casualties and which had seen relations between the two countries fall to new lows in recent months.

On Tuesday, India’s commerce minister, Priyush Goyal, confirmed that the two countries would sign a deal “shortly”. A joint statement will be released when the final details have been agreed, he said. However, he gave no further details about the contents of the agreement.

Beyond Trump’s announcement about tariffs on Indian goods, therefore, uncertainty about the future of US-India trade relations remains. For one, while Trump claims New Delhi has agreed to buy oil from the US instead, India has not publicly confirmed this.

And, while Trump claimed that Modi had agreed to eliminate Indian tariffs on US goods altogether, this has also not been confirmed by India.

Subsequent announcements from Trump and Modi about the agreement the two had reached also differed greatly, geopolitical observers and economists told Al Jazeera.

We unpack what we know, what we don’t, and why Modi is facing criticism at home following the announcement.

US President Donald Trump and Indian Prime Minister Narendra Modi hold a joint news conference in the East Room of the White House in Washington, DC, on February 13, 2025 [Andrew Caballero-Reynolds/AFP]

What have Trump and Modi said about this agreement?

On Monday, Trump wrote on his Truth Social platform that he had spoken with Modi – calling him “one of my greatest friends” – about several issues, including ending Russia’s war in Ukraine.

“He [Modi] agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela,” Trump said.

Then, Trump wrote that upon Modi’s request, and out of “friendship and respect” for him, Washington “agreed to a Trade Deal”, whereby the US “will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%”.

White House officials were quoted in US media confirming that the additional 25 percent tariffs levied on Indian goods last year as punishment for buying Russian oil would also be dropped. In total, that would bring 50 percent tariffs down to 18 percent.

In turn, India would reduce “their Tariffs and Non Tariff Barriers against the United States, to ZERO”, Trump wrote.

Trump added that Modi had also committed to “‘BUY AMERICAN’, at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products”.

“Our amazing relationship with India will be even stronger going forward,” he wrote.

Shortly after, Modi’s statement was posted on X. In it, he completely avoided mention of a “trade deal”, or of any agreement to stop purchasing Russian oil, or committing to buy $500bn worth of goods from the US.

Instead, Modi simply confirmed that “Made in India products will now have a reduced tariff of 18%,” and expressed his gratitude over “this wonderful announcement”.

Then, he hailed Trump, writing: “President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace.”

Analysts said these statements leave too much uncertainty, however.

“It’s no deal, but just a declaration by both leaders when nothing has been signed,” said Jayati Ghosh, an economist and professor at the University of Massachusetts Amherst.

“So far, whatever little has been revealed, it’s already a bad deal for India. I feel it could be even worse in detail,” she told Al Jazeera.

How are India-US trade relations?

For years, the US and China have remained India’s top two trading partners.

Last year, the US took the top slot with bilateral trade with India worth $129.2bn, according to US government trade data. That was only a little higher than India-China trade worth $127.7bn.

But, unlike China, where the bilateral balance sheet is highly skewed towards Beijing, which has a trade deficit with India of about $95bn, India has a much more favourable trade balance with Washington.

In 2024, US exports to India amounted to about $41bn. While oils and fuels account for a nearly 30 percent share at $13bn, they are followed by precious pearls and stones, amounting to $5.16bn. India also imports parts for nuclear reactors, electrical machinery and equipment, and medical instruments from the US.

By comparison, Indian exports to the US, its biggest market, totalled nearly $87bn in 2024, including pearls, electrical machinery, and pharmaceutical products among the lead export products.

Now, Trump says Modi has agreed to buy unspecified US goods worth more than $500bn across several sectors, including energy, technology, coal, and agricultural products, among others.

But $500bn on its own is a promise to increase purchases by 1,150 percent.

Last week, the Modi government unveiled its annual budget, which included total spending plans of $590bn. Trump’s claimed promise from Modi would be worth about 85 percent of India’s annual budget.

This seems a stretch, analysts say.

“This is a come-down for the government of India. This deal is quite disconcerting for New Delhi,” said Biswajit Dhar, a trade economist who has worked on several Indian trade deals.

“So, the US will impose 18 percent tariffs on India, and India is going to give them duty-free access. That is 0 versus 18,” Dhar told Al Jazeera. “Can this be a cause of celebration on the Indian side?”

Farmers burn an effigy of US President Donald Trump (C, top) and India’s Prime Minister Narendra Modi during a protest in Amritsar on April 4, 2025, following Trump’s sweeping new tariffs on imports to the US from countries across the globe [Narinder Nanu/AFP]

Is India really opening up its agricultural sector?

Agriculture has been one of the main sticking points in trade talks between the US and India for years. Washington has demanded that New Delhi open its market to genetically modified crops from the US – a sore point for Modi.

Almost half of India’s 1.4 billion people are still reliant on agriculture to earn a living, and the country has kept the sector guarded from foreign trade to protect farmers’ interests.

Furthermore, one of the most sustained protests Modi has faced since he came to power in 2014 has been from farmers opposed to new farm laws that the government wanted to bring in. In the end, Modi was forced to back down in a rare win for dissenters under his rule.

Amid growing pressure from the US during trade talks, Modi in August declared he was willing to pay a personal “price” for defending the interests of farmers.

“For us, the welfare of our farmers is of the highest priority. Bharat will never compromise on the interests of its farmers, dairy farmers and fishermen,” he said, using the Hindi name for India. “And I am fully aware that I may have to pay a very heavy price personally, but I am prepared for it.”  

But on Monday, US Secretary of Agriculture Brooke Rollins wrote in a post on X: “New US-India deal will export more American farm products to India’s massive market, lifting prices, and pumping cash into rural America.”

She added: “In 2024, America’s agricultural trade deficit with India was $1.3 billion. India’s growing population is an important market for American agricultural products, and today’s deal will go a long way to reducing this deficit.”

An unnamed Indian government official was quoted by the Reuters news agency as saying on Monday that India had agreed to buy US goods, including in the telecommunications and pharmaceutical industries, as part of its commitments under the deal. Publicly, however, New Delhi has been silent on this.

“This is really quite, quite disastrous,” Dhar said. “That goes against the verbatim commitment by the PM himself that farmers’ interests would be protected.

“The US agri-companies are really large, and the bottom line of any trade negotiation – to save Indian farmers – seems to have been dropped now.”

Ghosh, the Indian economist, said she doubted “if the domestic politics would even allow Modi to open the agriculture sector to Trump”.

“India cannot afford to do that. The impact would be huge, and the farmers’ protest will be even bigger amid a lot of discontent,” she told Al Jazeera.

Garment workers stitch shirts at a textile factory in Noida, India, on July 31, 2025 [Bhawika Chhabra/Reuters]

Is India in a more favourable position now?

On the face of it, the 18 percent US trade tariff on Indian goods makes India better placed than neighbouring rivals, such as Pakistan with 19 percent, Bangladesh and Vietnam with 20 percent, and China with 34 percent.

However, nearly all of India’s neighbours are beneficiaries of the US’s Generalized System of Preferences concession, under which Washington facilitates duty-free entry for selected goods from developing countries to support their exports.

New Delhi, which was previously the biggest beneficiary of this, was removed from that list in 2019 amid trade tensions as India resisted opening up its markets.

What other things do we not know about this ‘deal’?

Most importantly, we do not know if an India-US Free Trade Agreement (FTA) has been formally negotiated and concluded.

India signed a major FTA with the European Union last week, hailing it as the “mother of all deals”. While that deal, which creates a new $27bn market, has yet to go through legal scrutiny, it offers clarity on key areas relating to non-tariff barriers, investments and selective limits to market access, unlike Trump’s announcement.

Dhar told Al Jazeera there are significant areas of contention which could stoke anxiety in stock markets. “What happens to India’s intellectual property laws, especially patent laws?” he asked, arguing a change could lead to a significant hike in medical bills, for example, for patients in India.

“What are the other conditions that have been imposed, like with respect to environment and labour standards?” Dhar added.

Another example, Ghosh said, was that while India is planning to implement a digital service tax, whether US tech giants would be included in that – or exempted – has not been clarified.

“India has already given in far too much,” she said. “Not just at the cost of domestic security, but health, safety, and now livelihoods and employment.”

Members of the Communist Party of India (Marxist), holding placards with caricatures of India’s Prime Minister Narendra Modi (L) and United States President Donald Trump, shout slogans in Chennai on February 17, 2025, during a protest to condemn the treatment of unregistered migrants deported from the US to India [R Satish Babu/AFP]

What have the reactions in India been?

Modi held a meeting with members of parliament on Tuesday morning, in which he was reportedly congratulated over the supposed deal.

India’s home minister, Amit Shah, hailed “the historic India-US trade deal”, writing in a post on X that the “agreement will open new doors of opportunities for every Indian. This deal, which will give a new momentum to our economy, will not only boost employment but will also prove to be a milestone in realising our resolve to make India a leader in every sector by 2047.”

Despite giving no further details about the agreement when he confirmed it in a press conference on Tuesday, India’s commerce minister, Piyush Goyal, was similarly effusive.

“It will protect the sensitive sectors – the interests of our agriculture and our dairy sectors,” Goyal said, without explaining how. “It will open up huge opportunities for our labour intensive sectors and export sectors. This is truly a deal every Indian can be proud of.”

But Trump’s announcement from Washington drew ire from the political opposition in India, which pressed the Modi government to reveal the details of the deal.

“The main thing is that our PM is compromised. The public needs to think about this. Narendra Modi ji has sold your hard work in this trade deal because he is compromised. He has sold the country,” said Rahul Gandhi, the leader of the opposition in the Indian parliament.

Does this mark an upturn in India-US relations?

The public statements by Trump and Modi seem to signal a major thaw in relations that had turned frosty since the US president took office in January last year, experts say.

Sources of tension have anged from the handling of Indian immigrants to the US, a steep fee hike for the US’s H-1B worker visa, India’s continued purchase of Russian oil, and stalling trade negotiations. In addition, Trump has repeatedly claimed to have brokered a ceasefire between India and Pakistan following their four-day hostilities last May. While Pakistan hailed the US president’s role and nominated him for the Nobel Peace Prize, India denied that Trump had played a major role.

“Trump is playing to the domestic theatre to show that there’s a major victory coming out of this,” Harsh Pant, vice president of the New Delhi-based Observer Research Foundation think tank, said. “It is equally important for Modi to showcase that he’s able to withstand the pressure from Washington.

“This is the beginning of a new phase where the relationship will take on a different texture with clarity on lots of things [for leaders],” Pant told Al Jazeera. However, he cautioned that it will likely still take time to restore confidence fully between the two sides, particularly from India’s perspective.

Pant also added that issues like the purchase of Russian oil will persist, as New Delhi will try to protect its traditional ties with the Kremlin, as well.

But with the Monday announcement, Pant said, these niggles may be easier to resolve.

பல்கணி பேச்சு

இந்த நாட்டிற்கு ஒரு வலுவான எதிர்க்கட்சி தேவை!

Balcony talk 

5th Column Sunday Times LK 01-02-2026

பல்கணி பேச்சு

என் அன்பான மாமா ரணில்,

சில வருடங்களுக்கு முன்பு இங்கிலாந்து சென்றதற்காக நீங்கள் மீண்டும் நீதிமன்றத்தில் ஆஜராகி தலைப்புச் செய்திகளில் இடம்பிடித்திருப்பதால் நான் உங்களுக்கு எழுதுகிறேன். இதன் விளைவாக இப்போது நீதிமன்றத்திற்கு அதிக பயணங்கள் ஏற்பட்டுள்ளன, மேலும் மருத்துவமனைக்கும் கூட செல்ல வேண்டியுள்ளது. உங்கள் வழக்கறிஞர்கள் நீங்கள் கடன் வாங்கிய நேரத்தில் இருப்பதாக நீதிமன்றத்தில் தெரிவித்த பிறகு, முதலில் மோசமான நிலையை நாங்கள் அஞ்சினோம்.

இருப்பினும், நீங்கள் சமீபத்தில் நீதிமன்றத்தில் ஆஜராவதற்கு முன்பே, கண்டியிலும் வேறு பல வழிபாட்டுத் தலங்களிலும் உள்ள தலைமைக் குருக்களைச் சந்தித்து, வெளியே சுற்றித் திரிந்ததை நாங்கள் கண்டோம். ஒரு அரசியல்வாதி அப்படிச் செய்யும்போது, ​​ஏதோ நடக்கிறது என்பதை நாங்கள் அறிவோம். உங்கள் வழக்கு விசாரிக்கப்படுவதற்கு முன்பு பொதுமக்களின் ஆதரவை வளர்ப்பதற்கான ஒரு உத்தி என்று சிலர் கூறினர்.

இந்த வழக்கைப் பற்றி நான் எதுவும் சொல்லப் போவதில்லை. அது சட்டத்தின் நுணுக்கங்களை நன்கு அறிந்தவர்களுக்கு உரிய விஷயம். நீங்களே ஒரு வழக்கறிஞராக இருப்பதால், அது உங்களுக்கு நன்றாகவே தெரியும். இருப்பினும், நீதிமன்றத்திற்கு வெளியே உங்களுக்காகப் போராடுபவர்களையும் நீங்கள் உன்னிப்பாகக் கண்காணிக்க வேண்டும். சில சமயங்களில், அவர்கள் நன்மையை விட அதிக தீங்கு விளைவிக்கலாம்.

உதாரணமாக, அந்த பட்டமளிப்பு விழாவில் உங்களிடம் ஒரு 'பால்கனி' இருக்கை மட்டுமே இருப்பதாக ஒருவர் சொன்னபோது, ​​உங்கள் சமூக ஊடக வீரர்களின் படையில் சில காலாட்படை வீரர்கள் மேடையில் அமர்ந்திருக்கும் ஒரு நபரின் புகைப்படத்தை பரப்பினர், அது நீங்கள்தான் என்று கூறி. அது தெளிவாக ஒரு ' சுட்டா '. சில நேரங்களில், தற்காப்பு 'தாக்குதலை' விட மோசமாக இருக்கலாம்!

ரணில் மாமா, உங்கள் வழக்கு விசாரணைக்கு வருவதற்கு முன்பே நீங்கள் கூறிய ஒரு கருத்து எனக்கு மிகவும் ஆர்வமாக இருந்தது. ஒரு பிரச்சினை குறித்து ஊடகங்கள் கருத்து தெரிவிக்கக் கேட்டபோது, ​​நீங்கள் சிரித்துக்கொண்டே இனி அரசியலில் இல்லை என்று சொன்னீர்கள். நீங்கள் எப்போதும் அரசியல் விலங்காக இருப்பதால், இதுபோன்ற வார்த்தைகளை அலட்சியமாகப் பேச மாட்டீர்கள் என்பது எங்களுக்குத் தெரியும்.

உங்கள் கருத்து பலரை, குறிப்பாக 'தொலைபேசி' விருந்தில் உற்சாகப்படுத்தியுள்ளது. உங்கள் மாமா ஜே.ஆர்., சஜித்தின் தந்தையிடம் தடியைக் கொடுக்க முடிவு செய்தது போல, நீங்கள் இறுதியாக சஜித்திடம் தடியைக் கொடுக்க முடிவு செய்துவிட்டீர்கள் என்று அவர்கள் நினைக்கிறார்கள். ஒரு தலைமுறைக்குப் பிறகு - கிட்டத்தட்ட 40 ஆண்டுகளுக்குப் பிறகு - வரலாறு மீண்டும் நிகழ வேண்டும் என்று அவர்கள் விரும்புகிறார்கள். 

ஆனாலும், இதேபோன்ற ஒரு அறிக்கையை நாங்கள் கடைசியாக உங்களிடமிருந்து கேட்டது, 6 ஆண்டுகளுக்கு முன்பு பொதுத் தேர்தலில் பசுமைக் கட்சி தோற்கடிக்கப்பட்டு ஒரு தனி இடமாக குறைக்கப்பட்டபோதுதான். நீங்கள் வீட்டிலேயே இருப்பீர்கள் என்று கூறி, அடுத்த பசுமைத் தலைவரை உருவாக்க ஒரு 'தலைமைத்துவக் குழு' பற்றிப் பேசினீர்கள். பலர் நீங்கள் 'ஓய்வு பெற்ற காயம்' அடைந்துவிட்டதாக நினைத்தார்கள்.

பல மாதங்களுக்குப் பிறகு, அந்த ஒற்றை இடத்தை யார் நிரப்புவது என்பது குறித்து பசுமைக் கட்சியினர் வழக்கம் போல் சண்டையிடத் தொடங்கியபோது, ​​நீங்கள் மீண்டும் முன்வந்து உங்கள் சேவைகளை வழங்கினீர்கள். அது உங்களை சரியான நேரத்தில் சரியான இடத்தில் வைத்தது. கோட்டா மாமா தப்பி ஓட வேண்டிய கட்டாயம் ஏற்பட்டபோது நீங்கள் பிரதமராக இருந்தீர்கள். மீதமுள்ளவை, அவர்கள் சொல்வது போல், வரலாறு.

பசுமைக் கட்சியினரும் 'தொலைபேசி' கட்சியினரும் பல மாதங்களாகப் பேசி வருகின்றனர், சில புகைப்படங்கள் மற்றும் சமூக ஊடகப் பதிவுகளைத் தவிர வேறு எதுவும் காட்டப்படவில்லை. சுவாரஸ்யமாக, சஜித் தானே 'தொலைபேசி' கட்சியினரைப் பிரதிநிதித்துவப்படுத்துகிறார், ஆனால் நீங்கள் உங்கள் 'ஏ' குழுவை அனுப்பியுள்ளீர்கள். நீங்கள் நம்பக்கூடிய நபர்கள் உங்களிடம் உள்ளனர், ஆனால் அவர் நம்பவில்லை என்று அர்த்தமா?

அடுத்த பெரிய தேர்தலில் ' மாலிமாவா'வை தோற்கடிக்க வேண்டுமென்றால், அனைத்து எதிர்க்கட்சிகளும் ஒரே கூட்டணியில் இணைய வேண்டும் என்ற உங்கள் முன்மொழிவுதான் மீண்டும் இணைவதற்கு முட்டுக்கட்டையாக இருப்பதாக எங்களுக்குச் சொல்லப்படுகிறது . சஜித்துக்கு இது எதுவும் பிடிக்காது என்றும், ' போஹோட்டுவா ' தனக்கு அருகில் எங்கும் வேண்டாம் என்று தொடர்ந்து கூறி வருவதாகவும் கேள்விப்படுகிறோம் .

பசுமைக் கட்சியினரும் 'தொலைபேசி' வீரர்களும் இணைவது அர்த்தமுள்ளதாக இருக்கிறது. அனுர சகோதரயா வெற்றி பெற்ற கடைசி பெரிய தேர்தலில் கூட , சஜித்தும் நீங்களும் சேர்ந்து 50 சதவீதத்திற்கும் அதிகமான வாக்குகளைப் பெற்றீர்கள். ' பொஹோட்டுவ'வைச் சேர்த்துக் கொள்வது நல்ல யோசனையா என்று எனக்குத் தெரியவில்லை . உண்மையில் அது உங்களுக்கு சில வாக்குகளை இழக்க நேரிடும்!

சஜித் இதற்கு உடன்பட மாட்டார் என்பது உறுதியாக இருப்பதால், பசுமைக் கட்சியினரும் 'தொலைபேசி' அணியினரும் மீண்டும் ஒன்று சேருவதைத் தடுக்கும் என்பதால், நீங்கள் இந்த யோசனையை முன்மொழிந்ததாக சிலர் கூறுகின்றனர். உங்களையும் உங்கள் தந்திரமான தந்திரங்களையும் அறிந்திருப்பது, அது சாத்தியமற்றது அல்ல, ஆனால் அது அப்படியல்ல என்று நான் நம்புகிறேன், மாமா ரணில்.

நீங்கள் குறுகிய காலத்திற்கு பிக் பாஸாக இருந்தபோது ' போஹோட்டுவா'வுடன் பணிபுரிவது எப்படி இருந்தது என்பதை நீங்கள் உணர்ந்திருப்பதாக மற்றவர்கள் கூறுகிறார்கள் . நீங்கள் எதிர்பார்த்ததை விட சிறப்பாக இருந்ததைக் கண்டறிந்ததாகவும், ' போஹோட்டுவா ' முகாமில் எந்தக் கட்சிக்கும் சொத்தாக இருக்கக்கூடிய ஒரு சிலராவது இருப்பதாக நீங்கள் உணர்கிறீர்கள் என்றும் அவர்கள் கூறுகிறார்கள்.

மறுபுறம், சஜித் ' போஹோட்டுவ'வுடன் ஒரே மேடையைப் பகிர்ந்து கொள்ள விரும்பவில்லை என்று கூறுபவர்களும் உள்ளனர் , ஏனெனில் இளம் நாமால் தன்னை மேடையில் தள்ளிவிடுவார் என்று அவர் அஞ்சுகிறார். எனக்கு அவ்வளவு உறுதியாகத் தெரியவில்லை. ஒடிசாவில் நமல் தன்னை அணிவகுத்துச் செல்வது அவரது தீர்ப்பு சஜித்தின் தீர்ப்பை விட மோசமானது என்பதைக் குறிக்கிறது!

ரணில் மாமா, பசுமை முகாமிலும் 'தொலைபேசி' கட்சியிலும் இருவருக்குமிடையே கூட்டணி வேண்டும் என்று விரும்பும் ஒவ்வொரு நபருக்கும், அதை விரும்பாத மற்றொரு நபரும் இருக்கிறார். இருப்பினும், நீங்கள் நினைவில் கொள்ள வேண்டியது என்னவென்றால், ' மாலிமாவாவை ' நேராகவும் குறுகலாகவும் வைத்திருக்க இந்த நாட்டிற்கு ஒரு வலுவான எதிர்க்கட்சி தேவை!

தங்கள் உண்மையுள்ள,

புஞ்சி புத்தா

பி.கு: சமன் போன்ற ஒருவர், தனது பணிக்காலம் முழுவதும் கடுமையாக உழைத்து, உங்களுக்காக பணம் செலுத்துவதற்கு ஒப்புதல் அளிக்க புள்ளியிடப்பட்ட கோட்டில் கையெழுத்திட்டதாகக் கூறப்படும் குற்றத்திற்காக தடுப்புக் காவலில் வைக்கப்பட்டதைக் கண்டது வருத்தமாக இருந்தது. மஹிந்த மாமாவின் ஆட்சிக் காலத்தில் லலித்துக்கும் இதே போன்ற கதி ஏற்பட்டது என்பதை நினைவில் கொள்க . நந்திகா இப்போதெல்லாம் பதட்டமாக இருப்பார் என்று நினைக்கிறேன்!

Namal's Odisha visit

 

China rolls out the red carpet for Keir Starmer

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© Carl Court/AFP via Getty Images

George Parker and Joe Leahy in Beijing

FT 29-01-2026 

to revitalise London-Beijing relationship

Sir Keir Starmer admitted he had to humiliate himself at the court of Xi Jinping on Thursday, but not in the way some of his critics had expected. “Xi’s a Manchester United fan and we arranged to get him a football signed by the players after their game against Arsenal on Sunday,” said one Downing Street insider. 

United beat Starmer’s Arsenal 3-2 and the prime minister was not happy: “He couldn’t believe he had to hand over that ball.” But on more obviously awkward moments for Starmer in the Great Hall of the People — discussions on human rights, Hong Kong and Ukraine among them — the British prime minister seemed relaxed. 

 

Starmer emerged from almost three hours in the company of Xi glowing about his “warm and constructive” talks with China’s president in which differences were discussed politely behind closed doors in the context of a revitalised London-Beijing relationship. 

Talks between Starmer and Xi ranged from Ukraine and human rights to their shared love of football © Carl Court/AFP via Getty Images 

The opposition Conservatives have accused Starmer of “kowtowing” to Xi, but the British premier insists it is in the national interest to seek better relations with China at a time of global instability. Starmer did not mention Donald Trump, but the US president’s erratic behaviour formed the backdrop for the talks, as Xi seeks to present himself as a friend to Europe when it comes to global peace, free trade and international order. 

 Although such claims will be met with scorn in many quarters, some British officials in Beijing this week admit the relationship with Xi’s China is nowadays more straightforward than the one with Trump’s US. The first rule in forging ties with China, familiar to all visiting leaders to Beijing, is to avoid offending your host. Starmer, accompanied by his national security adviser Jonathan Powell, stuck closely to that convention. 

In talks that spanned an 80-minute bilateral discussion with Xi and his team, a 20-minute “tête-à-tête” (also attended by the influential Powell) and an hour-long lunch, Starmer set about developing what he called a more “sophisticated” relationship with China. Downing Street said Starmer raised the jailing of Jimmy Lai, the UK national and Hong Kong pro-democracy campaigner, but refused to say exactly what he said or, indeed, whether he called for Lai’s release from prison. 

 

On the sensitive issue of Ukraine, Starmer raised the conflict but Downing Street again refused to say whether he had urged Xi to stop providing support to Vladimir Putin’s war effort. Instead Starmer’s spokesman blandly said they both agreed the war should end. 

Starmer said ‘good progress’ was made at the meeting on exchanging information about irregular migration © Carl Court/AFP via Getty Images 

The two sides also agreed to carry out more parliamentary exchanges even though China has imposed travel bans on nine British parliamentarians and Chinese legislators are not allowed in the House of Commons as a consequence. 

Had the prime minister persuaded Xi to lift the sanctions? Starmer said only that “progress” was being made. His argument, shared by many of the 60 CEOs and British cultural leaders on the trip, is that such reticence is sensible and that more stable relations with China are essential and a key to opening exports for UK companies as well as for the projection of British soft power into a huge market. “We made some really good progress on tariffs for whisky, on visa-free travel to China, and on information exchange co-operation on irregular migration,” Starmer told reporters. 

 

The sight of Starmer coming to town bearing a signed football and pouring praise on his hosts gave Xi a golden chance to troll Trump with talk about how “both China and the UK support multilateralism and free trade”. For China, the visit has so far played according to script, with Xi able to present himself as the voice of the calm superpower in contrast to the noise coming out of the US. 

Starmer and Chinese Premier Li Qiang look on as a memorandum of understanding is signed between the UK and China © Carl Court/AFP via Getty Images 

“For some time unilateralism, protectionism and power politics have been rampant, seriously undermining the international order,” Xi told Starmer. “China has always adhered to a path of peaceful development, . . . no matter how China grows, it will not pose a threat to other countries,” he added. 

 

The visit is seen by analysts as an opportunity for China to repair once warm relations with western countries such as the UK that were damaged by the tech and trade wars with the US, Russia’s full-scale invasion of Ukraine and bilateral issues such as, in the case of Britain, spying and Hong Kong. 

Starmer’s visit follows a similarly warm reception for Canadian prime minister Mark Carney. The red carpet was rolled out for Starmer and the visit received generous coverage in the local media.  Over a lunch of mushroom soup, roasted cod, steamed beef with yam, fried shrimp, stewed vegetables, sweet rice dumplings, steamed rice cake and mango dessert, the two leaders enjoyed small talk with a heavy focus on football. 

 

Xi also told Starmer that he was a big fan of Shakespeare and that one of the things he most enjoyed was reading the Bard’s complete works translated into Chinese, according to Number 10. 

 

Later Starmer was given a tour of the Forbidden City and hosted by Chinese premier Li Qiang at a banquet. In a signal that China was pulling out the stops to portray a favourable image of the visit, the Global Times, a Communist Party tabloid, highlighted Starmer’s visit to a Yunnan cuisine restaurant favoured by foreigners at which he thanked the staff in Mandarin, the article said. 

The prime minister visited a Yunnan cuisine restaurant at which he thanked the staff in Mandarin © In & Out Restaurant via Reuters 

On Friday the prime minister continues his four-day visit by travelling on to more business engagements in Shanghai. Starmer told his delegation this week that they were “making history”, noting that this was the first time a British leader had taken such a party to Beijing since Theresa May in 2018. It seems unlikely that there will be a similar hiatus before the next visit and Downing Street left the door open for a future visit to the UK by Xi. 

 

Speaking to business leaders in the Great Hall of the People after his meeting with Xi, Starmer summed up his approach: “President Xi tells the story of blind men being presented with an elephant. 

 

“One touches the leg and thinks it’s a pillow, another feels the belly and thinks it’s a wall. Too often this reflects how China is seen. But I profoundly believe that with broader and deeper engagement, this is our way of seeing the whole elephant and therefore building a more sophisticated relationship fit for these times.”

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