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OUR VIEW MY VIEW | THE INTERSECTION GUEST VIEW M I N T C U R AT O R

A cabinet committee on science Monetary policy: It’s best to hold Trump’s birthright citizenship
stunt diminishes the country
and technology is a must today rates steady for the time being America’s ‘greatness’ is its generosity in welcoming liberty seekers
It’s a strategic imperative for India as technology is at the core of power in today’s information age
RBI should keep price stability in focus to favour the rupee and growth while it manages liquidity and awaits path clarity

commercial interests in the US and while others require long gestation MINT

abroad. If the US has adopted its tech periods. Many reports rightly argue for
industry’s interests as its national inter- a whole-of-government approach with-
ests, China has been doing so from the out being clear on how that will be
other direction. For Beijing, its tech achieved. A CCST is the answer.
industry is a tool to further the interests Finally, much like the discussion
of the Communist Party of China at between Arjuna and Krishna on the PATRICIA LOPEZ
home and abroad. Geopolitical consid- battlefield, a lot of tech policy is about is a Bloomberg Opinion columnist covering
erations alone recommend that India determining what is more important. Is politics and policy.
NITIN PAI respond to the unfolding circumstances market competition more important
is co-founder and director of The by equipping our strategic establish- than scale for global competition? GAURAV KAPUR
Takshashila Institution, an independent ment well to navigate these tides. Should we depend on a foreign strategic is chief economist, IndusInd Bank Ltd.
centre for research and education in public Second, India needs a better way to partner for technology or try to develop
policy manage trade-offs across ministerial it in-house? Can we afford the cost of

Flex reason over muscle

boundaries. A few years ago, the railway waiting? Should we prioritize climate
ministry decided to completely electrify goals over building energy-intensive

I O
ndia’s government must set up a Cab- the train network to achieve environ- data centres for AI? How do we respond n 20 January, as US President
inet Committee on Science and Tech- mental and modernization goals. Yet, to export controls, sanctions and coer- Donald Trump attended an inau-

I
nology (CCST) to make India a global such a goal would be inconsistent with cive steps by our geopolitical partners? n its February meeting, the Monetary Policy gural service at Washington

to honour our republic power of this century. Chaired by the

Prime Minister, it should include the
ministers for home affairs, finance,
external affairs, defence, electronics
defence preparedness. Both the Indian
army and central paramilitary forces
depend on railways to rapidly move
their forces to areas of deployment.
As much as a CCST can coordinate at
the Union government level, much of
the action is at the state level. I do not
know if the way it works currently
Committee (MPC) of the Reserve Bank of India
(RBI) will deliberate on whether the trajectory
of policy rates has reached an inflexion point
from where an easing cycle can begin. With a
National Cathedral, Episcopal Bishop Mar-
iann Budde pleaded with him. “In the name
of our God, I ask you to have mercy upon
the people in our country who are scared
A closed-door country goes against a key
factor in US success. AP

dent will matter little to the court that over-

and information technology, commerce Decentralized, self-propelled diesel allows for state chief ministers to be new RBI governor at the helm, the MPC will now,” she said. The vast majority of immi- turned Roe vs Wade in 2022, robbing
and education. In this information age, locomotives are better for this than invited to a Union cabinet committee consider the latest information on consumer price grants are not criminals, Budde said, but women of reproductive rights guaranteed
Democracy is integral to India’s popular conception of itself but it’s unclear if the same can technology is a core element of national grid-supplied electric ones. We need a meeting. It might, however, be a good index (CPI)-based inflation and GDP growth avail- pay taxes and are good neighbours. Trump by the Constitution for almost 50 years. Or
power, the primary agent of economic better way to resolve such dilemmas. idea to invite officials of the states con- able since the last meeting. Average headline CPI scarcely looked at her. He has made no perhaps he expects to fail, as many legal
be said of republican ideals. So long as we’re ready to reason with ourselves, this isn’t a worry transformation and an important aspect Cross-domain coordination will be cerned to ensure policy alignment. inflation in the third quarter of 2024-25 at 5.6% secret of his desire to restrict entry to the scholars suspect, but still feels the gambit
of the day-to-day life of citizens. Indi- much more important in the coming Interestingly, China not only quietly was well above the target, though in line with RBI’s US and won both the Electoral College and gives him a talking point and another way
vidual departments and states must still years. It is hard to foresee effective set up a secretive Central Science and baseline estimate. The National Statistical Office’s the popular vote. to blame opponents for thwarting him.
be responsible for governing the tech- public policy in nuclear energy, radio Technology Commission (CSTC), but first estimate placed real GDP growth at 6.4% in The flurry of executive orders he signed Twenty-two Democratic-led states are

I
ndia’s embrace of democracy has been governments the King is law,” argued Paine, nological aspects of their domains in a spectrum, AI, autonomous vehicles, seems to have replicated the set-up at 2024-25, again largely in line with RBI’s forecast of aim to do just that. Among the most chill- filing lawsuits and injunctions will be
affirmed many times over by the ‘power of “so in free countries the law ought to be King; decentralized manner, as they do now. advanced military systems, biological the provincial level too. This commis- 6.6%. Given these in-line outcomes, the MPC will ing: an attempt to override the 14th sought. The American Civil Liberties
But there is a case for a higher-level weapons and information warfare with- sion appears to oversee the science and decide the way forward based on its outlook on Amendment, limit birthright citizenship, Union has filed its own lawsuit.
the vote’ as a lived experience. That We and there ought to be no other.” mechanism to set the overall policy out high-level inter-departmental technology ecosystem, approve mega- growth and inflation risks. and create a subclass of children who were The birthright citizenship ploy is just
the People live in a republic, with no Back home, it should not surprise us that direction, coordinate between minis- negotiation. projects and interface with the military Near-term risks to price stability have risen since born here, but who, through a cruel trick of one part of Trump’s frontal assault on
hereditary right to rule, remains far more Ambedkar, who had grappled with the “graded tries and oversee strategic plans in vari- Third, the old model of managing establishment. While there is little pub- the December meeting. The rupee has depreciated timing, are not Americans. This takes effect immigration. He has suspended the entire
abstract in comparison. Three-quarters of inequality” of caste heritage, sought relief from ous science and technology domains. A strategic programmes like atomic lic information on its mission and com- by over 3%, weighed by renewed dollar strength in less than a month. Babies born in the US US Refugee Resettlement Program, saying
a century ago, whether democracy would inherited authority across all of Indian society. cabinet committee is an appropriate energy and space will not work in position, it has been set up to provide and increased financial-market volatility amid after that to undocumented parents would, that Biden admitted far too many refugees.
structure in our governmental system. today’s setting. Expertise is diffused in political direction to China’s scientific heightened uncertainty around US tariff plans and Trump said, no longer be recognized by Another executive order requires a plan
endure was seen as our big challenge. In his Today, it’s hard to tell if people accord republi- There are four major reasons. First, private industry, research institutions and tech establishment. Mixing science their impact on inflation and rates. The US Federal the federal government as US citizens. that assigns the Defense Department’s US
last address to the Constituent Assembly after can ideals much value, even though our elect- we are in an era where world politics is and public sector enterprises. Getting with politics is not a good idea, as Soviet Reserve has issued a hawkish forward guidance Altering birthright citizenship has been Northern Command to seal the borders.
the ‘final reading’ of the Constitution, on 25 oral democracy is held dear. On the right, some by technology, of technology and for things done requires careful navigation and Chinese history has shown, but and signalled fewer rate cuts in 2025, triggering a high on Trump’s agenda. Nevertheless, it Other actions cancelled thousands of
November 1949, B.R. Ambedkar made a case argue that the ruling Bharatiya Janata Party’s technology. While technology has been across several genuine regulatory con- when has that stopped Xi Jinping? risk-off mood among investors. According to the is shocking to see the scope. The order not appointments with asylum seekers.
for ‘social democracy,’ based on a union of campaign against dynastic politics has driven a source of power throughout history, it siderations. Harnessing national capa- It is abundantly clear that we are amid baseline forecast of RBI, headline inflation is only includes undocumented immigrants, Although Trump’s border czar, Tom
is central to global politics today. The bilities requires programme structures a global tech war which will intensify. expected to hold above its 4% target for the next 6 tal spending by the Centre has slowed the growth Bank deposit and lending rates too remain stable. but also includes legal immigrants whose Homan, said before Trump took office that
liberty, equality and fraternity. If any of these home the idea of a republic, making it harder Biden administration’s moves to throt- that enlist capital, human resource and With the right structures in place, India months. High but easing food inflation and sticky in capital formation; its contribution to headline Bank credit growth has slowed down this year, in status is considered temporary. Hundreds the administration would prioritize the
were to be divorced from the other, he held, it for descendants of well-known leaders to get far tle China’s semiconductor and artificial knowledge residing across the country. could better harness its resources, core prices are likely to keep it in the 4.5-5% range growth has almost halved compared to the year part due to regulatory measures. But at 12.5%, it is of thousands who entered the US legally on removal of criminals, Trump specifically
would defeat “the very purpose of democracy.” in the political arena. On the left, some reckon intelligence (AI) industry development We now have national missions to expertise and human capital to emerge during that period. A weaker rupee presents an before. That is likely to reverse with a pick-up in holding well above nominal GDP growth. Yield student visas, the H-1B programme for broadened enforcement beyond that nar-
The weak link, in his view, was equality: “On that political appeals drawn from olden times implicate the rest of the world. Donald develop AI, quantum computing, as a major power. More than an admin- upside risk to that trajectory. Pressure on the rupee public capex, which would help drive aggregate movements in the bond market (both government skilled foreign workers or through refugee row charge and removed earlier guidelines
the 26th of January 1950, we are going to enter have stalled the idea’s progress. Regardless of Trump’s principal backers are tech genomics and aerospace. Some of these istrative convenience, the establish- can intensify as the dollar’s strength and Chinese demand as well as potential growth higher. and corporate) also remain orderly, suggesting that schemes such as Temporary Protected Sta- against conducting raids in schools, hospi-
leaders determined to promote their might call for speedy implementation ment of a CCST is a strategic imperative. yuan’s weakness are likely to persist. Higher rela- Private consumption, the largest component of financial conditions are broadly supportive. Other tus, would be subject to the same restric- tals, churches, shelters and more. Trump
a life of contradictions. In politics, we will have its explicit advance, arguments over inherit- tive inflation in India is also contributing to rupee GDP, will also be aided by an ongoing recovery in than frictional pressures on liquidity, RBI will also tions. No permanent status, no American clearly intends to wage a campaign of
equality, and in social and economic life we ance and privilege are likely to go on. This in overvaluation in trade-weighted inflation-adjusted rural demand on the back of improved farm-sector be closely monitoring the decline in the durable citizen children. ‘shock and awe’ against immigrants, with
will have inequality.” Equality denied for too itself may be seen as a republican victory of real effective exchange rate (REER) terms. That activity, while urban demand will get support from liquidity surplus, which now stands at ₹64,350 Yes, the H-1B programme needs an over- the brutality of it sending a message to
long in the two other spheres, he feared, would sorts. Yet, in the social sphere, while caste is will get corrected through nominal depreciation relatively stable growth in services. crore, down from its peak of ₹4.885 trillion in early haul. So do other temporary programmes. “keep out.”
imperil our political democracy. It was India’s often used to mobilize votes, its lineage link and require vigilance on price stability. The pace of Thus, the growth outlook is of a return to its October. A durable liquidity shortage can push But this punitive approach is hardly the Trump appears not to believe that immi-
disinflation as envisaged in the baseline forecast is potential level after three consecutive years of over rates higher than warranted. Moreover, any easing way. Ultimately, of course, this will be a grants are part of what makes America
status and credentials as a republic, though, stays in place. In our economic life, to the extent thus at risk from imported inflationary pressures. 7% growth. Considering increased risks to infla- in monetary policy rates without adequate liquid- matter for the Supreme Court. Trump exceptional. Each wave of immigration has
that pre-occupied him in the years to follow. prosperity relies on market forces and the right www.livemint.com New Delhi, Mumbai, Bengaluru, Kolkata, Chennai, Ahmedabad, Hyderabad, Chandigarh*, Pune* Tuesday, January 27, 2015 Vol.9 No.23 `4.00 in Delhi-NCR/`5.00 outside Delhi-NCR 32 PAGES
The outlook on growth, on the other hand, is tion, a status quo on policy rates may be prudent, ity in the system will dilute their effect. With a CRR lacks the power to alter the 14th Amend- made its contributions, creating a mosaic
OBITUARY: R.K. Laxman, an

In the West, the concept rode into public to property, the heft of inherited wealth cannot uncommon man, dies at 94 >32
NATION: Women power to the fore at
Republic Day parade >4
reasonably strong, with GDP expansion likely to especially to support growth. A wait-and-watch cut already undertaken, RBI has the option of mak- ment, which explicitly states that “All per- of cultures that enliven this nation and
awareness on the back of revolutions. In be wished away. Nor, for practical reasons, twitter.com/
livemint
facebook.com/
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plus.google.com/
+livemint
pinterest.com/
livemint/
POLICY: Government outlines vision for
education sector >6
CORPORATE: Indian start-ups warm
up to venture debt >10
pick up in the second half from the first, helped by approach will also help provide more clarity on ing open market purchases of government bonds, sons born or naturalized in the United expose us to new ways and new thinking.
France, royalty was ousted from power in a fit should it. Soviet-style economic models that
SENSEX 29,278.84 ®

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India, US to
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QUICK EDIT
an uptick in private consumption. While real GDP spillovers from external developments. especially if its dollar sales drain durable liquidity. States, and subject to the jurisdiction Have there been rough spots? Yes. Do we
After celebrations, India and battle it out Greek
drama growth for 2024-25 is estimated to be lower than In the meantime, RBI can manage liquidity con- Overall, price stability should remain the focus thereof, are citizens of the United States.” need immigration reforms? Undoubtedly.
of hair-raising fury, but America snapped apart tried to flatten ownership saw their incentives US get down to business
at WTO over
solar policy T he victory of the radical
Syriza party in Greece

last fiscal year’s 8.2%, nominal GDP growth at 9.7% ditions in the banking system to ensure that the of monetary policy. This will help support growth Intended to guarantee citizenship for Many Americans are frustrated with levels
Diversity doesn’t look
is expected to increase eco-
B Y D . R AV I K A N T H nomic uncertainty in
[email protected] Europe. It is not surprising
MANVENDER VASHIST/PTI ···························· that the euro has sunk to

from the yoke of Britain’s monarchy by calmly for value-generation collapse. The rise of Com-
GENEVA
Two nations strike a its lowest level in 11 years.

conciliatory note on E ven as Prime Minister Syriza has campaigned

is expected to be unchanged from 9.6% last year. operating target—the weighted average call rate— while maintaining macroeconomic stability amid newly freed slaves, the amendment has that seem to be rising beyond this nation’s
Narendra Modi and US Pres- against austerity policies in
divisive issues such as ident Barack Obama signed an Europe. It also wants
agreement on Sunday to pro- Greece to renegotiate its
IPR, taxation, bilateral mote clean energy and expand debt to other European
investment pact solar energy initiatives, a move nations. Neither of these

like anyone. It looks

widely seen as giving US compa- positions will get much
B Y A SIT R ANJAN M ISHRA , nies access to the lucrative support from creditors,

declaring itself free before it sent ‘redcoats’ munist China, notably, only followed its market
E LIZABETH R OCHE & Indian market, the two countries especially the Germans,

This is suggestive of higher inflation having pulled remains within its policy-rate corridor. Since mid- heightened financial and capital-flow volatility. A long been interpreted as establishing capacity to adapt. But this is not the
R AGINI VERMA are preparing to slug it out in the who have been underwrit-
···························· World Trade Organization ing the Greeks since 2008.
NEW DELHI (WTO) over India’s solar policy. Hard positions on both

I ndia and the US moved to

deepen their economic
engagement, both striking a
conciliatory note on divisive
Next week, a dispute settle-
ment panel of the WTO will
commence hearings on a trade
dispute between Washington
sides could lead to Greece
leaving the monetary
union, though the risks
seem minimal right now.

down real growth, particularly hurting mass urban December, liquidity has returned to a deficit, amid wait-and-watch approach would be best. More- birthright citizenship. That principle was humane reform many Americans seek.
issues such as intellectual prop- and New Delhi over the Indian It is worth speculating if

packing. In both cases, arguably, the stage pivot. The emergence of our remixed economy like everyone.
erty rights (IPR), taxation and a government’s imposition of local the backlash against aus-
bilateral investment pact, a day content requirements for solar terity in Greece is the first
after Prime Minister Narendra cells and solar modules under stage of a wider shift in fis-
Modi and President Barack the Jawaharlal Nehru National cal policy in the euro area.
Obama broke the stalemate on Solar Mission (JNNSM). Monetary policy has
the civil nuclear deal between The panel, which will be already shifted after the
the two countries. chaired by former New Zealand European Central Bank

was set by the 1776 pamphlet Common Sense, is a similar story. It took a rational rethink of
The US committed itself to
starting a dialogue that may lead
to a so-called totalization agree-
ment that would eliminate dual
social security taxation, a situa-
tion that occurs when a worker
from one country works in
trade envoy David Walker, will
begin its proceedings on 3 Feb-
ruary when the US will make its
first submission as to how India
violated WTO commitments by
implementing JNNSM.
In its dispute notification, the
embraced quantitative eas-
ing this month. A mix of
easier monetary and fiscal
policy may seem attractive
as Europe battles deflation,
but that can only be a tem-
porary palliative. Europe
demand and highlighting the need for a cautious a build-up in government cash balances and RBI over, given the uncertainty around US industrial, affirmed in US vs Wong Kim Ark, the 1898 I am a daughter of naturalized immi-
monetary stance. The International Monetary dollar sales to contain exchange-rate volatility. RBI fiscal and monetary policies, supporting the rupee case of a Chinese American man born in grants and my father believed to his last day
another and is required to pay needs structural reforms.
social security taxes to both on TURN TO PAGE 2®
the same earnings.

written by Thomas Paine, a French immigrant, economic policy. Whatever the ideals pursued,
India, for its part, signalled
flexibility on its IPR regime.
Prime Minister Modi also sig- INNOVATIVE MODELS
nalled his willingness to reverse

As Indian cities get

Fund projects growth in India to hold around 6.5% had cut the cash reserve ratio (CRR) by 50 basis through price stability will help manage any San Francisco, but to Chinese citizens. The that this was the greatest country in the
retrospective taxation introduced

KAREN DRAPER
by the Congress-led United Pro-
gressive Alliance (UPA) that had
prompted concerns among for-
eign investors. smarter, so do buses
in the US. While its basic point was that an a republic evolves through the active exercise of
The moves to deepen trade
and investment ties came on the
second day of Obama’s three-day Deeper engagement: (From left) Prime Minister Narendra Modi, US President Barack Obama and Indian BY A MRIT R AJ which will automatically charge

in the next two years, in line with the economy’s points in December and continues to address adverse spillovers. A rate cut at this stage without precedent set in that ruling has stood for world and that his greatest gift to me was my
visit to India, his second in five President Pranab Mukherjee at the Republic Day celebrations in New Delhi on Monday. [email protected] its battery while the bus moves
years. On Monday, Obama ···························· about, thus doing away with the
became the first US President to even reverse the retrospective tax of investment in India, but a lot building block for expanding the NEW DELHI
hassle of having to set up charg-
be in attendance at India’s
annual Republic Day parade as
chief guest, an occasion marked
clause introduced by his prede-
cessor Manmohan Singh’s gov-
ernment.
of their films are being pirated.
He said the laws are there, but
they are not being implemented.
relationship. The point that was
made in the CEO forum is that
we take feedback from both sides
B uses are getting smarter—
and greener—in anticipa-
tion of smart cities. The National
ing points at bus depots.
Its rival Ashok Leyland is in
talks with the Odisha govern-

oppressor could not possibly protect people, reason in a contemporary context. Even the
by a display of India’s military Modi’s government was criti- Finance minister Arun Jaitley before concluding the treaty so Democratic Alliance govern- ment and BMTC for its Optare

potential. This appears plausible. Continued sup- liquidity tightness through measures like daily var- surplus liquidity may not help bring down rates in well over a century. US citizenship. It saddens me to think that
might and cultural diversity. cized for not doing so in its first said ‘we have to look into it’. Modi that the treaty becomes mean- ment’s proposal to create 100 all-electric buses, which were
On Sunday, Obama and Modi budget despite having a majority also acknowledged that there is ingful,” she added. smart cities has prompted com- introduced on the roads of Lon-
had decided to make the US-In- in the Lower House of Parlia- piracy, both in information tech- At the business summit, mercial vehicle manufacturers to don in July last year.
dia civil nuclear deal operational, ment. nology (IT) software and films Obama said the relationship line up buses and vans of the Toyota, on the other hand, is
opening up a market potentially “Our immediate target is to and we have to tackle this and between the two countries is likes that have never been seen targeting high-end fleet opera-
worth billions of dollars to US bring us from the rear ranks of take strong legal action,” he said. defined by much untapped in India. tors and embassies with its
companies and giving India the world into the top 50. You India also raised the issue of potential. Expected to hit Indian roads HiAce, which in effect may also
access to important technologies will find a tax regime that is pre- the totalization agreement. India Obama said that while the US soon are an articulated bus and take on Pune-based Force

the primary purpose of government, the blow sudden rise of ‘reasoning’ models of artificial
in another sign of warming rela-
tions between the two countries.
Both leaders addressed busi-
ness leaders on Monday at the
India-US CEO Forum and the
India-US Business Summit.
Modi told the summit that his
dictable and competitive. We
have removed some of the
excesses of the past. We will now
soon address the remaining
uncertainties,” he added.
On the contentious IPR regime
that US companies have been
has been demanding such an
agreement, claiming it loses
more than $1 billion every year
in the absence of such a pact.
“In the joint statement, the US
made a commitment that we will
have a dialogue with the Indian
does about $560 billion trade
with China, its trade with India
stands only at about $100 billion.
“That may give you some sense
of both the kind of growth that
India might unleash and the
potential for greater trade
two low-floor hybrid buses from
Tata Motors Ltd, the electric bus
Optare Versa from Ashok Ley-
land Ltd, and Toyota Motor
Corp.’s 10-seater van HiAce.
Articulated buses, also known
as banana buses or bendy buses,
Motors Ltd’s Traveller.
HiAce will be introduced in
India by the middle of this year
as completely built units, N.
Raja, senior vice-president (sales
and marketing), Toyota Kirloskar
Motor Pvt. Ltd, said.
port for fixed investments in the Union budget for iable rate repo (VRR) auctions. As a result, the call the wider economy. And, given that the room for Perhaps Trump thinks there is no way a Trump’s America may become a place that
2025-26 will help underpin growth. The Centre’s rate has hovered between the repo rate of 6.50% monetary easing is limited under a ‘neutral’ policy Supreme Court with a conservative 6-3 turns its back on what makes the US truly
government will provide a non- critical of, Modi said he agrees it government on totalization. We between our two countries,” he have two single-deck compart- Tata Motors is also working on
adversarial tax regime and may is an important issue and every- have said that we need a time- said. ments that are linked by a pivot- an inter-city hybrid bus for

his essay landed on anybody’s ‘divine right’ to intelligence implies that the future may belong
body should work together to bound programme on totaliza- Obama said both sides had ing joint. Commonly used all smaller cities and towns.
NOTE TO READERS sort out the problem. “We have
constituted a joint working group
tion so that there is a definitive
agreement reached within some
agreed to resume discussion that
would move the two countries
over Europe, they allow opera-
tors to carry more passengers.
To be sure, the support system
for such vehicles will be the
The Media Marketing Initiative on on this—US-India working time,” Deepak Parekh, chairman towards a bilateral investment Tata Motors has received an rapid transit system, which has
Page 9 is the equivalent of a group; whatever suggestions of Housing Development order for 30 articulated bus from not really been a success in India

focus on capital expenditure along with fiscal con- and the marginal standing facility (MSF) rate of stance, it will reduce the space available to support majority—three of whom he appointed— great: its generous and welcoming spirit,
paid-for advertisement, and no come up form this forum, we will Finance Corp. Ltd, said after the TURN TO PAGE 2® Hubli-Dharwad BRTS Co. Ltd though more such corridors are
Mint journalists were involved in implement this,” Modi said at the meeting. and is also in talks with the Ban- expected to be built as part of
creating it. Readers would do well CEO forum. Chanda Kochhar, managing ALSO SEE galore Metropolitan Transport Prime Minister Narendra Modi’s
to treat it as an advertisement. An Indian CEO present at the director of ICICI Bank Ltd, said Corp. (BMTC) for 30 hybrid smart cities plan. Vehicle manu-

rule made it an ode to the republican ideal, as to countries that deploy reason well. The power
>India-US relationship not aimed at
closed-door CEO forum said the US side raised the issue of a containing China, says White House >P3 buses and Navi Mumbai Munici- facturers say they are also bank-
Walt Disney chairman and CEO bilateral investment treaty. >C. Uday Bhaskar: The implications of the pal Transport for another 10 ing on the government making
Mint is also available for R8 with Robert Iger raised the issue. “Bilateral investment treaty is India-US nuclear deal >P7 hybrid buses. These buses will
Hindustan Times in Delhi-NCR only “He said his company has a lot going to be a very important >Ten years of a nuclear odyssey >P30 be fitted with an electric motor TURN TO PAGE 2®

solidation is likely to continue, aided by stable tax 6.75%, suggesting that despite liquidity tightness, growth in the future if the need arises. would defy him on one of his obsessions. refreshed by the sweat and toil of newcom-
encoded in the rule of law. “For as in absolute India can wield might well be shaped by it. revenue growth. In 2024-25, a contraction in capi- short-term rates have remained largely stable. These are the author’s personal views. Maybe he thinks the longstanding prece- ers seeking freedom. ©BLOOMBERG

MY VIEW | MODERN TIMES MY VIEW | GENERAL DISEQUILIBRIUM

Migrating to the US has long been a rite of humiliation Deal-making will dominate 2025 and drive the budget
America and the ‘Free World’—if you were secuted migrated. They fled. Even the early poor treatment. Every little discrimination limited how much their kids could watch administration, artificial intelligence dis- frequent golf partner, may have speeded up by booking profits in low-tax jurisdictions. The budget essentially has to strike a deal
MANU JOSEPH not standing in that queue with a science European migrants to the US were either stings them. those TV shows precisely because they pro- RAJRISHI SINGHAL rupting normal operations and a widespread proceedings. The order, which invalidates years of G20 that optimizes the interests of five sets of
degree, what would become of you? destitute or mistreated. The social elite had This may explain why many of them moted mediocrity… and their kids went on to corporate desire to rebalance portfolios. The Trump had, of course, promised on the negotiations and an agreement signed by stakeholders. One comprises middle-class
That America is a “land of immigrants” is no reason to move out. Then, in the mid- began to love India more than Indians them- become wildly successful STEM graduates…” report expects the M&A engine to accelerate campaign trail that his White House will 130 nations, is viewed as mostly beneficial to salaried employees who feel squeezed
among the nonsensical flourishes of lan- 20th century, the upper classes of poor selves back home. When an old elite feels The truth reveals itself if you trace the lin- through 2025, knocked occasionally by vol- drive multiple deals. Soon after his inaugu- technology companies like Google, Amazon between rising inflation, allegedly unfair tax
guage, on par with “spirit of Mumbai.” nations began moving to the US. These were slighted in a new place, it compensates with eage of successful individuals of ‘Indian ori- atility caused by geopolitical shifts and a new ration, he signed a flood of executive orders. and Meta; the chief executives of all these laws and stagnant wages. The second cohort

L T
ong before Donald Trump, from the America may have once accepted all sorts of the cultural elite, if not the economic elite, great love for what made it feel special. An gin’ who claim to have done well because hese winter months are turning out to tariff regime. These included withdrawing the US from companies were present in full strength at includes agriculturalists and the broader
time I remember, migration to the people, but they and their descendants have who had an immense head unspoken history of the they “worked hard.” The first wave of Indian be a season for deal-making, corporate The biggest deal in recent times was the the Paris climate accord Trump’s inauguration. rural population, which, in the face of stag-
United States was a rite of humiliation. no particular fondness of immigrants any- start in their own society. It world is how America, to immigrants did well chiefly because they or geopolitical. The annual deal-mak- breakthrough achieved in convincing the and the World Health The second order seeks nating incomes, has been forced to depend
Yet, it was exactly what the finest of my gen- more. At most, they only want the rich and was yet another opportu- That America which the elite of poor were the actual or metaphorical Brahmins of ing Davos conference kicked off on 20 Janu- Israeli government and Hamas to sign a Organization, obliterating The FM needs to provide a 75-day on government handouts and loans to
eration prepared for. Even the most dignified talented, and even among the talented, only nity life gifted them— nations thronged, created where they came from; they had an enor- ary, the same day a self-appointed deal- complicated truce agreement. Mediated by transgender rights and dis- reprieve to social media finance consumption. The third is the vast
part of the process, which was the first step, those who would be of practical use. migrate to a richer nation. is a ‘land of expat nationalism. mous head-start not only over other Asian maker was sworn in as the next president of the Qatar government and pushed along by mantling federal pro- to strike a deal platform TikTok after US army of unemployed youth which sees no
where the bright applied for a student visa to So, generations of Indians worked hard to They had to pay a price. As another form of com- immigrants, but also over most Americans. the United States. India observes an annual representatives from both Joe Biden’s lame- grammes that promoted federal law banned it (for job opportunities and is therefore unable to
go study something in science, lacked grace. become useful to America. Some even From being masters in
immigrants’ pensation, possibly, some Their children, in turn, were better placed to deal-making day on 1 February every year duck government and Donald Trump’s diversity, equity and inclu-
that balances ostensibly posing a threat supply the advertised demographic divi-

is a journalist, novelist, and the

An enduring memory of my childhood in
Madras is the sight of a half mile-long queue
fooled themselves into believing they were
needed because Americans were “dumb.”
their home towns, atop the
social pyramid, they
is among the of these immigrants also
acquired an exaggerated
harvest their luck. Yet, it is important for the
Indian community in America to go on is a senior journalist and author
when the finance minister presents the bud-
get. The budget is technically supposed to be
incoming administration, a complex and
multi-phase ceasefire deal was announced,
sion. It revealed the presi-
dent’s desire to unilaterally
the interests of to national security), an
action that was subse-
dend. The fourth group includes the creamy
layer of the corporate sector, which has used
creator of the Netflix series,
‘Decoupled’
of the city’s cultural elite for their fateful visa
interviews. They were top rankers, IITians
But one way or another, talented Indians fig-
ured that their place in the US was created
became something else in
America that can be cap-
nonsensical swag—that they succeeded
in America because they
about “hard work.” The false preening of the
lucky often makes the less fortunate feel that
of ‘Slip, Stitch and Stumble: The
Untold Story of India’s Financial
a dull accounting statement but, by default,
has become India’s annual economic state-
with hostages and prisoners released by
both sides in its first phase as a gesture of
dictate the governance
agenda, independent of
five groups amid quently upheld by the US
Supreme Court. Trump’s
a bouquet of tax breaks and incentives to
enrich top management without benefiting
and doctors and those who had got job offers, because there were things Americans did tured by an expression flourishes of were bright and “worked it is all their fault, when usually it is not. Sector Reforms’ ment; in reality, it has always striven to strike deal acceptance. The truce could well be the US Congress. an economic executive order is an the broader workforce or the economy’s
and they waited for hours in the hot sun (the not wish to do anymore, or at least not for Indians once used com- very hard,” compared to Elite Indians in the US, it seems, want @rajrishisinghal deals between various sections of society temporary because any perceived transgres- But two specific orders attempt to provide TikTok investment ratio. The final silo includes both
consulate put up sun shades only years later). such low pay. Visa holders found their monly: “second-class citi- language other groups. Trump’s America to make a distinction through budgetary allocations and tax sion during its prolonged duration by either cast a sharp light on his slowdown breathing space to finalize foreign investors and domestic bean-coun-
For people like me, who had no prospects spouses could not work and their green zens.” What they meant by It is this popular but dim between Indians and Mexicans, and all the breaks. Given the deal blizzard that has wel- side could reignite hostilities. transactional mode of gov- a deal—essentially find a ters who view the budget through the lens of
and passed by Mount Road in public buses, cards did not always convert into citizen- this was that the American analysis that American poli- other immigrants who face his ire, including comed 2025, it will be interesting to see the But despite these knife-edge risks, the ernance, and both involve American suitor willing to its fiscal deficit to the exclusion of all else.
it was the first clear sight of what prospects ship. And now, strategically conceived chil- upper classes viewed them the way they tician Vivek Ramaswamy appears to have “irregular” Indian immigrants. deal structures finalized by finance minister negotiators soldiered on, modifying some large corporations. The first surprisingly buy a stake—that will help it side-step the Given these five sets and a discernible
really looked like—a wait outside the Ameri- dren born on US soil will not get US citizen- viewed lower classes in India. aired in a recent tweet: “Our American cul- But then, typically, the ruling class of a Nirmala Sitharaman. conditions, using available pressure points reverses the US’s acceptance of a global tax ban. Interestingly, TikTok CEO Shou Zi economic slowdown, the finance minister
can consulate. And my lack of prospects ship if Trump has his way. His order may get Everywhere, the migrant is treated badly. ture has venerated mediocrity over excel- society does not see people through income A Goldman Sachs report on mergers and to get some others accepted or using veiled deal facilitated by the Organisation for Eco- Chew was found seated next to Tulsi Gab- will have to design a five-cornered New Deal
didn’t seem so bad. struck down by courts, but it is hard to miss The poor are equipped to take it in their lence for way too long… A culture that cele- statistics and their college degrees. It goes by acquisitions for 2025 anticipates a stellar threats when necessary to get their points nomic Co-operation and Development, bard, the new director of national intelli- that stimulates consumption, spurs employ-
But when the bus turned a corner, a the layers of humiliation in going to a place stride because they are used to being treated brates the prom queen over the math olym- appearances. And to much of the American year for corporate deal-making as compa- across. This is exactly how corporate deals which sought to limit tax-evasion by large gence, at Trump’s swearing-in ceremony. ment generation, incentivizes capital
familiar fear filled all of us who chose to be where too many people wish to go. in this manner even if they are not migrants. piad champ… I know multiple sets of elite, maybe all Indians look the same. In nies try to act on monetary policy normaliza- are closed and the presence of Steve Witkoff, multinational corporations; these compa- So, what kind of deal is to be expected expenditure, maintains tax buoyancy and
artists and were apparently of no use to For centuries, only the poor and the per- The Indian upper class is not so suited for immigrant parents in the 90s who actively fact, all immigrants may look the same. tion, easier regulations under the new US a real-estate investor and President Trump’s nies dodged taxes in countries of operation from India’s budget? yet keeps a tight leash on the fiscal deficit.