Diverted to markets.

"According to NSDL data, India's mutual funds industry now controls Rs 76.41 trillion in assets under custody, slightly ahead of FIIs at Rs 76.22 trillion." "This marks the first time domestic funds have surpassed foreign investors in overall holdings." This is because SIP (systematic investment plans) have increased to a record Rs 320.87 billion in March 2026. "Annual SIP investments hit Rs 3.34 trillion in 2025, up from Rs 2.68 trillion in 2024, according to AMFI data." msn.com. "Mutual fund SIP inflows rose by Rs 8.27 billion or 3% month-on-month to Rs 317.81 billion in June, from Rs 309.54 billion in May." "SIP assets stood at Rs 17.70 trillion," and "The number of Contributing SIP accounts stood at 97.83 million in June 2026." ET. "Foreign portfolio investors (FPIs) are a far cry from turning bullish on Indian shares, with the recent buying in the cash market attributable to the closing out of reverse arbitrage (arb) positions rather than fresh market buying, per market experts." "Reverse arb, the opposite of arbitrage, involves purchasing stock futures and selling the underlying stock to lock in the spread." Mint. "Arbitrage refers to the practice of simultaneously buying and selling the same asset in different markets to profit from price discrepancies." "Arbitrage opportunities are usually short-lived because markets adjust rapidly." bajajfinserve.in. "Corporate India's recent balance sheet numbers confirm that," "Even as profits recover, they are investing in financial assets at twice the rate at which they invest in factories and machinery. The shift underscores corporate caution as subdued demand, moderate capacity utilization, and geopolitical volatility keep a much-awaited broader private investment cycle on hold," wrote Abhinaba Saha & Niti Kiran. Demand is subdued because households are losing confidence in the economy. The Urban Consumer Confidence Survey by the Reserve Bank of India (RBI) shows that "the Current Situation Index has fallen for the third consecutive round, down to 90.7 from 95.7 just two months earlier." The Rural Index has fallen to 95.2. Anything below 100 is negative. TNIE. "Experts are of the opinion that making an investment just for the sake of it is not a good idea." Investors err when they invest without a defined goal, chase recent performances (recency bias, wikipedia), underestimate valuation and risk, churn their portfolios too often and do not respect asset allocation. Mint. Perhaps, people are being forced by the RBI to gamble on the stock markets because they are losing money in banks. In its last meeting in June 2026, the Monetary Policy Committee of the RBI held its interest rate at 5.25%. NDTV. "Retail inflation based on Consumer Price Index (CPI) in May 2026 was 3.93%." pib.gov.in. This means the real interest rate works out to 1.32%. "Consumer inflation, measured by the annual change in the CPI is expected to have quickened to 4.3% in June from 3.93% in May, economists forecast in the poll conducted July 3-9." Reuters. Which means a meager real interest rate of 0.95%. Since bank interest is taxable as income, the returns on bank deposits are deeply negative. People are gambling to protect the value of their savings. In the last fortnight in June, bank deposits grew by 2.7% to a total of Rs 265.4 trillion, while banks credit or advances jumped 18.6% to Rs 219.3 trillion. TOI. "Analysts warned that the widening gap between loans and deposits has pushed the banking system's loan-to-deposit ratio to one of its highest levels in more than a decade, raising concerns over funding sustainability." ET. Consumers have little confidence in the economy and bank deposits. Companies are shy of investing. The RBI is channeling money into stocks. Will the markets drag everything down. The RBI will have to explain.

It's a stalemate.

"US President Donald Trump has repeated his claim of settling the conflict between India and Pakistan, adding that 11 jets were shot down during the four-day hostilities in May last year." "India has consistently denied any third-party intervention." "Trump said Pakistan Prime Minister Shehbaz Sharif credited him with saving 30 to 50 million lives by stopping the Indo-Pak conflict." ET. Three days ago, US Attorney Bill Essayli announced charges against the leader of an Indian criminal group in connection with the assassination of a Sikh leader. "He spoke alongside officials of the Los Angeles Police Department, the FBI and the Royal Canadian Mounted Police." "Lawrence Bishnoi, 33, and his childhood friend Satinderjeet Singh are accused of orchestrating the assassination of a well-known Sikh independence activist Hardeep Singh Nijjar." ABC. Nijjar was shot on 18 June 2023 in the parking lot of the Guru Nanak Singh Gurdwara in British Columbia in Canada. Then Prime Minister of Canada Justin Trudeau blamed the Indian government for the killing, which was followed by tit-for-tat expulsions of diplomats from both countries and relations between India and Canada dropping to its lowest point. wikipedia. This is extremely odd. Why is a US lawyer announcing charges in a crime that occurred in Canada? Has Canada ceded jurisdiction on crimes committed on its soil to the US, or is the US attempting to create a rapprochement between India and Canada? If so, who gains? "According to a report submitted by Canada's auditor general to parliament..., the share of Indians in the country's incoming international student population was just 8.1% in September 2025 - a sharp drop from 51.6% in 2023." "Study permit rejections rose from 38% in 2023 to 52% in 2024 in Canada according to ICEF Monitor, which focuses on international student mobility." "So the question has shifted from how to go to Canada to whether to go at all." BBC. Lawrence Bishnoi, born Balkaran Bishnoi, has been incarcerated in Sabarmati Jail in Gujarat, India since 28 August 2023. "According to sources, Bishnoi is being held in complete isolation from other inmates." And yet, he is apparently able to run his criminal empire from behind bars. TNIE. Bishnoi's friend Goldie Brar is thought to have ordered the murder of Punjabi rap singer Sidhu Moose Wala. "Not much is known about Brar, apart from the fact he is on the Interpol Red Corner list, and is a key operative in a network of gangsters operated by Bishnoi." "It is thought Brar emigrated to Canada" where "he initially worked as a truck driver." BBC. While taking on the Nijjar case from Canada, the US is yet to conclude the alleged plot to murder Gurpatwant Singh Pannun, with dual citizenship of the US and Canada living in New York, also in 2023. TOI. Indian national Nikhil Gupta was arrested from Prague in the Czech Republic on 30 June 2023 and extradited to the US. On 13 February 2026, Gupta confessed to offering $15,000 to a hitman, who happened to be an undercover Drug Enforcement Administration (DEA) agent, to kill Pnnun. The Wire. The US named former Research and Analysis Wing (R&AW) officer Vikash Yadav as Nikhil Gupta's handler. Yadav has been charged with abduction and extortion of a city-based businessman. In August 2025, a non-bailable warrant was issued by Additional Sessions Judge Saurabh Partap Singh "against Yadav after he failed to appear before the court despite repeated summons in the alleged kidnapping and extortion case." "On 24 March this year, a court had granted Yadav an exemption from personal appearance on his bail plea citing threat to his life after his personal details were made public." TOI. Brilliantly done. Since crimes in India take precedence over US charges and since court cases can, and do, continue for decades in India, Yadav can lead a normal life without having to appear for hearings. That also prevents one of our intelligence officers from being interrogated by US justice officials. Bishnoi is safe in prison. We seem to have reached a stalemate. Time to move on?  

The risk of anything new.

"A new generation of small nuclear reactors is up an running - or nearly so - in the United States," The milestone made possible by billions in private and government funding, was on display in the middle of the Idaho desert." These small modular reactors (SMRs) are "compact enough that one was transported to the site by a pickup truck." "SMRs promise cheaper, faster-to-build nuclear power that can go almost anywhere," and is "positioning itself as a tool for American influence abroad." ET. SMRs "are advanced nuclear reactors that have a power capacity of up to 300 MW(e) per unit, about one-third of the generating capacity of traditional nuclear power reactors." "SMRs offer savings in cost and construction time, and they can be deployed incrementally to match increasing energy demand." iaea.org. "Even as $2.3 trillion in market value was erased from tech's elite 'Magnificent Seven' stocks last month," "the Semiconductor sector has experienced a historic surge. The Philadelphia Semiconductor Index has rallied more than 90% this year, tacking on another 6% gain just this month." TOI. Last year, Google let off two "firebombs", wrote Nilesh Jasani. The first was Google's generative AI Gemini which it integrated with its "existing services to sustain its dominance over a sprawling billion-user ecosystem."  The second was "its latest Ironwood Tensor Processing Unit" which "boasts 4,614 T-flops of peak compute power and 192GB of high-bandwidth memory, showing Google's ability to engineer hardware optimized exclusively for its models." Companies in the US spend vast sums of money on innovating new products, often encouraged by the US government, which puts them ahead in new technologies while the rest of the world tries to play catch-up. Sadly, R&D figures in India have fallen from "an already modest 0.83% of GDP in 2009-10 to 0.64% in 2020-21." Until the liberalisation of the 1990s, high customs barriers protected Indian companies from competition with foreign companies. "Today, the culture of rent seeking is perpetuated - despite the relative openness to the world inherited from the reforms of the 1990s - by the influence of industrialists close to the government, known as oligarchs or 'cronies', who succeed in owning or having the governments they finance raise customs barriers (often non-tariff barriers) that hinder the entry of foreign competitors into the Indian market," wrote Prof Christophe Jaffrelot. The Indian government has set aside Rs 10 billion ($120) for its AI mission. "One Nvidia H100 GPU, which is essential for modern AI, costs about $30,000 to $40,000." "What's even more surprising is that out of the meager Rs 20 billion set aside for FY26, only about Rs 8 billion was actually used - a 40% utilisation rate," wrote Arindam Goswami. "Operating under the department of atomic energy, which is headed by the Prime Minister, Indian Rare Earths Ltd (IREL) is today 75 years old." It should be producing rare earth magnets but "India's ecosystem lacks the technology to make rare earth magnets. And entrepreneurs are absent, too," wrote T Surender. Indian businessmen are averse to risks that innovation brings. Ironically, the CEO of Google Sundar Pichai is of Indian origin. wikipedia. Indians can do things. But, not in India. 

Well done Sri Lanka.

"Sri Lanka has regained upper middle-income status just three years after a severe economic crisis brought the country to the brink of collapse in 2022." The World Bank reclassified it "from the lower-middle-income category after the economy expanded by 5% in 2025, supported by broad-based recovery across industries and growth in tourism and financial services." TNIE. In May 2022, "Sri Lanka has defaulted on its debt for the first time in its history as the country struggles with its worst financial crisis in more than 70 years." "Sri Lanka is seeking to restructure debts of more than $50 billion it owes to foreign creditors, to make it more manageable to pay." BBC. India's Real GDP, or GDP at Constant Prices, grew at 7.7%, while Nominal GDP, or GDP at Current Prices, grew at 8.9% in 2025-26. pib.giv.in. Although it has fallen from an all-time high of $728.494 billion, India's foreign exchange reserves were at $666.933 billion during the week ended 26 June. CNBC TV18. And yet, "India remains in the lower-middle-income category," while The Philippines, Vietnam and Jordan have also been upgraded. India Today. "India is facing an acute jobs and wages crisis. Young people have disproportionately felt the impact. Just 7% of the population is now prosperous enough to pay I-T (income tax), and no young person entering the job market, even with professional or postgraduate qualifications, is paid enough to be in even the lowest tax bracket," wrote Rathin Roy. Jobs have to be created and for that India needs to offer goods and services that people will want. Patent filings have rocketed to 60,000 in 2023 from 40,000 in 2013, but "Patents are not subjected to blind peer review by experts," and "There is no measure of intrinsic quality, impact or scientific merit. Since the legal test is all that must be met, a surge in filings need not reflect a wave of genuine innovation." Universities have increased their patent filings to 42% of all filings in 2023 from 20% in 2013, which helps for advertising, wrote Mihir Mahajan & Arindam Goswami. "The Annual Survey of Unincorporated Sector Enterprises (ASUSE) of 2025 counts 79.2 million unincorporated non-agricultural establishments in India." "The Annual Survey of Industries (ASI) 2023-24, reports that the average registered factory employs 73 workers, ASUSE shows the average unincorporated establishment employs only 1.6. This is near solo work." Because, "When the modern sector does not create enough stable, productive wage jobs, self-employment becomes the default option rather than entrepreneurial choice," wrote Prof Saumitra Bhaduri & Shubham Anand. Even our laws are aganst the unincorporated sector. The law says that "buyers are legally obligated to settle vendor bills within 45 days if a written contract exists, or 15 days in its absence. The statue mandates a penalty and compound interest liability for non-compliance." And yet, "Large private entities and government bodies routinely stretch payment cycles to 90,120,or 180 days." The government may not pay on time but it wants its cut straight away. GST must be paid by the 20th of the next month from when the invoice is generated, regardless of whether the bill has been settled, wrote Ajit Ranade. The government and its cronies blatantly break the rules. No wonder Sri Lanka, Vietnam and Jordan have climbed higher than us. We are down there with Pakistan. World Bank. Siamese twins.        

Optimistic Indians.

"Morgan Stanley yesterday assigned a 25% probability to the BSE Sensex hitting 100,000 by June 2027. It said the bull case scenario was based on assumptions including oil prices staying below $80 a barrel, reflation policies beginning to deliver results and earnings growth compounding at 19% annually over FY 2026-29." BT. A 25% probability means a 75% against and no one can predict the price of oil. "Reflation is a policy response to economic slowdowns that aims to boost spending and counter deflation." "Reflation aims to stop deflation - the general decline in prices for goods and services that occurs when inflation falls below 0%." Investopedia. That is definitely not the case in India. Consumer price (CPI) inflation came in at 3.93% in May 2026, higher than 3.48% in April. pib.gov.in. The Indian rupee has fallen to over 95 to one dollar from about 88 in 2025. bankbazaar.com. If the rupee falls further it could cancel out any fall in the price of oil and increase consumer prices by increasing the cost of transport. "India's economy is expected to maintain growth of above 7% in 2026-27 (FY 27), supported by strong domestic consumption and investment, even as global growth could slip below 3%...the Associated Chambers of Commerce and Industry said. Morgan Stanley's prediction is not a "bull case scenario", it is bull something else. It is an irresponsible incitement of Indians to invest in the stock market. "This should not be called a share market. This should be called a poison market. This is poison and it will kill everyone one day," said Shankar Sharma. "if you close the stock market for 10 years in India, then India will really grow." India Today. Earlier he said, 'India cannot afford to offer foreign capital fully convertible currency exits amid a balance of payments deficit. A price must be extracted for exits. A crashing stock market is that price. In fact, a crushed stock market almost always guarantees massive foreign inflows." Mint. The rupee is sinking mainly because Indian stock markets are overvalued compared with their peers." Foreign investors (FPIs) have withdrawn $53 billion from Indian markets in the last 18 months. But the market is barely down. Because, "Fund managers have convinced investors that they should not try to time their entry into markets and invest a regular sum every month. This has induced a rising SIP (Systematic Investment Plan) inflow, up from Rs 200 billion/month at the start of 2025 to Rs 320.8 billion in March 2026." And this has allowed FPIs to exit at a high price, wrote Swaminathan Aiyar. The stock market exuberance is despite the May 2026 Consumer Confidence Surveys by the Reserve Bank of India (RBI) which show that the Urban Current Situation Index has fallen to 90.7 from 95.7 two months earlier. A reading below 100 is negative and 90.7 falls in pessimistic territory. The Rural Current Situation Index has fallen to 95.2. TNIE. "India ranks as the second-most optimistic country among 30 markets in the April 2026 wave of Ipsos' What Worries the World survey, with 72% of urban Indians saying the country is moving in the right direction. This places India among a small cluster of high-confidence economy." Ipsos'.com. But now, "The Future Expectations Index for urban India dropped to 118.7, its lowest reading since September 2023." "Worsening expectations threaten consumption demand - the largest component of growth in India." So, why did Morgan Stanley make such a ridiculous suggestion? Is it, like our 'godi (lapdog) media', trying to flatter our government, or is it trying to push up our stock prices to boost profits of US investors? Either way, it's unethical. Even wrong.        

Aiming high.

"India's higher nominal GDP growth in FY 27 is likely to help the government keep its fiscal deficit under control," "while real economic growth may moderate from FY 26 levels amid global headwinds, higher inflation is expected to lift nominal GDP growth, supporting tax collections and helping the Centre manage its finances." ET. High inflation reduces the value of the rupee and the value of our earnings and wealth but is great for our rulers. That's what matters in India. "Given wages (after inflationary erosion is accounted for) have not grown across livelihoods, households have been forced to meet consumption expenses through borrowing." This "explains the fall in India's household net financial savings, to a historical low of 5.2% of gross national disposable income (GNDI) in FY 23 from its longstanding average of 7-8%," And, "resulting in a combined household debt - outstanding secured and unsecured loans - breaching 40% of GDP by the end of 2023," wrote Prof Deepanshu Mohan & Srisonia Subramoniam. "Bank lending accelerated in the April-June quarter of FY 27, but deposit mobilisation continued to trail credit growth, widening the funding gap across the banking system and highlighting mounting pressure on banks' liability franchises, according to the Times of India." ET. "Earlier this year, Prime Minister Narendra Modi announced that India aims to achieve developed country status by 2047, the centenary of its independence from the British Empire." "While the country has 167 billionaires, more than 129 million people still live below the poverty line," and "over half the country's fifth grade students struggle to read at a second-grade level." Restrictive labor laws mean that "while 46% of India's labor force works in agriculture, the share of manufacturing workers declined from 12% to 11% between 2023 and 2024." World Finance. "The just-released sixth National Family Health Survey shows that India's child malnutrition rate was at a substantial 32% in 2023-24," "far higher than sub-Saharan Africa's 20-22% levels." Wasting was at 19% compared to just 7% in 35 African nations. Even malnutrition among adults is higher. The number of women with body mass index below 18.5 (the threshold for adult malnutrition) has risen from 18.7% in 2019-21 to 19.7% in 2023-24, while that of men has risen from 16.2% to 19.7%, a rise of 15%. TNIE. India must grow at 8% per annum over two decades to become a developed economy. "Yet, from 2014-2024, the economy grew at only 6.2% annually (base 2012), compared to 7.8% per annum over 2004-2014." In 2024, there were 330 million non-farm workers in India's 610 million workforce and about 28 million educated youth were looking for jobs. "Shockingly, 40% of all youth (15-29 years) in the workforce are in unpaid family labor," wrote Profs Santosh Mehrotra & Jajati Parida. "In May, the NCRB reported that 63% of all suicide victims came from economically insecure households." These problems are being created by India's success in services. "India's services exports, which were almost nothing in 1995, have risen to $418 billion in 2025-26, nearly as large as goods exports (442 billion). Add $144 billion that India gets from remittances from Indians abroad - you could call this labor exports - and you find that goods exports have become a minority." "In 2025-26, low-skilled goods exports totaled $187 billion against $254 billion for high-skilled manufactures and $412 billion from services (mostly high-skilled)," wrote Swaminathan Aiyar. Fall of low-skilled exports means lower earnings for low-skilled workers. Which explains rising malnutrition among children and adults. The solution seems to be simple. Intense education and high nutrition for our children and we can expand high- skilled exports. But then, 28 million educated youth are still looking for jobs. Developed country? First get to sub-Saharan level.    

Oral proof is absolute.

"Within hours of India and Japan unveiling a series of agreements on defence, critical minerals, artificial intelligence, energy security and economic resilience, Beijing cautioned that cooperation between countries should not target a third party or 'create exclusive small groupings'." "Chinese officials may not publicly acknowledge it, but much of the summit agenda touched areas where China currently enjoys significant leverage. The push for diversified supply chains and reduced dependence on any single country was especially notable." ET. "At the invitation of the President of the Republic of Indonesia, H.E. Mr Prabowo Subianto, Prime Minister Shri Narendra Modi will pay a visit to Indonesia from 6-8 July, 2026. This will be the Prime Minister's fourth visit to Indonesia." mea.gov.in. "If India and Indonesia finally seal a long-discussed BrahMos missile agreement, it will mark far more than another defence success for New Delhi." "The Philippines has already acquired BrahMos batteries and Vietnam has now joined the list." "Malaysia and Thailand have also reportedly shown interest." "Long range coastal missile batteries allow relatively smaller powers to exploit that geographic advantage without matching China ship for ship." ET. Poking China in the eye may be so satisfying but, "A tribal organisation in Arunachal Pradesh's upper Subansiri district has alleged that the Chinese People's Liberation Army (PLA) has gradually occupied parts of its ancestral land along the India-China border, prompting calls for an official verification and an immediate response from the state and Central governments." MC. In June 2020, an unprovoked attack by the PLA barbarians, armed with nail-studded clubs, resulted in the death of 20 Indian soldiers at Galwan Valley in Ladakh. BBC. China is estimated to have lost over 40 soldiers. All those nations with BrahMos missiles will not come to the aid of India, so we must deal with our existential enemy China by ourselves. "On the one hand, India increasingly seeks a greater role in world affairs. On the other hand, its response to major international crises remains cautious and selective." "It seeks a permanent seat on the UN Security Council. Its capabilities, however, remain those of a rising power still undergoing economic and technological transformation." DH. "For more than a decade now, India has sought to build its 'strategic autonomy'. New Delhi has booked a place at every high table - the Quad with Washington, the Shanghai Cooperation Organization with Beijing, BRICS with Moscow, and the I2U2 Group with Tel Aviv and Abu Dhabi." "Officials, cultivated the art of the rhetorical win, and crafted exquisite put-downs for neighbors and superpowers alike." The result is that, "India has friends everywhere, but leverage nowhere," wrote Mihir Sharma. In a WSJ piece, US Treasury Secretary Scott Bessent quotes a sentence by Alexander Hamilton on 5 December 1791 which said that every nation "ought to endeavor to possess within itself all the essentials of national supply," wrote Aditya Sinha. To that end India started the Atmanirbhar (self reliance) Bharat Abhiyan on 13 May 2020 with an allocation of Rs 20 trillion. tribal.nic.in. The problem is that in 2024-2025, 93% of India's permanent magnet imports, 70% of bulk drugs and intermediaries and 87% of some antibiotic categories, all came from China. How can India become strong when the government does not consider any of us as citizens? Every Indian has to acquire all kinds of identity documents but not one certifies citizenship (ABP). Despite providing 15 documents a man could not prove his citizenship as the Gauhati High Court "held that oral testimony alone, without relevant documentary evidence to back it up, was not sufficient to establish the link between father and son." ET. Actually, oral testimony is conclusive. Just take swabs from the mouths of both men and test for DNA. Simple and conclusive.. Most worrying: if our soldiers are not citizens why are they dying to protect India? And our leaders. Who probably are the only citizens.      

Stop restricting foreigners.

"India's economy remains on a sustained growth path supported by strong macroeconomic fundamentals, government officials said." "The government has maintained its emphasis on capital expenditure despite an unexpected rise in fuel and fertiliser subsidies caused by a prolonged blockage at the Strait of Hormuz." "In April and May 2026,capital expenditure stood at Rs 2.51 trillion compared to Rs 2.21 trillion during the same period last year, registering a 14% jump." HT. "India's gross Goods and Services Tax (GST) collections rose 13.9% year-on-year to Rs 1,94,812 crore (Rs 1.95 trillion) in June 2026, driven largely by a sharp increase in tax revenues from imports, according to provisional data." "Total GST refunds increased 29.1% to Rs 324.36 billion in June 2026." From April to June, "gross GST collections reached 6,31,699 crore (Rs 6.32 trillion)." TOI. "India's foreign exchange reserves declined by $5.65 billion to $666.93 billionin the week ended 26 June," according to the Reserve Bank of India (RBI). ET. "India's external debt rose by $26.3 billion to $762.8 billion by March 2026," so that the external debt-to-GDP ratio increased to 20.8%. "Long-term external debt - with an original maturity of more than one year - stood at $613.5 billion at the end of March 2026," which is good, but "On a residual maturity basis, which includes long-term debt maturing within the next 12 months, short-term debt accounted for 42.9% of total external debt at the end of March 2026." BS. Which means $327.24 billion will need to be repaid within one year out of our reserves. Of course, India will earn more foreign exchange in that time, but should we be worried? Foreign tourists should be a lucrative source of foreign exchange. On paper, India received 18.89 million international tourists in 2023, higher than the pre-pandemic 17.91 million in 2019, but a large proportion were non-resident Indians (NRIs) and Bangladeshis, many of whom came for medical treatment. "On the economic front, foreign exchange earnings from tourism rose 31.5% to $28.08 billion but could rise to $50 billion by FY 27-28 through "policy vision and execution", thinks Dipak Deva, CEO of Travel Corporation India Ltd., wrote Varuni Khosla. "Net foreign portfolio (FPI) outflow hit Rs 2 trillion in 2026 recently, already 25% more than FPIs pulled out in all of 2025." One reason might the yield spread between US Treasuries and Indian government securities (G-Secs). "From a 21st century average of 350-400 basis points (bps), spreads have shrunk to 250 bps today." A second reason is the over-valuation of our equity markets, which is because of buying by domestic investors, resulting in a vicious cycle. "FPIs sell, saying Indian valuations are relatively high, but then domestic liquidity funds orderly exits without much price impacts," wrote Somnath Mukherjee. Foreign direct investment (FDI), which is for business, is considered more stable. In 2022, Amazon withdrew from bidding for the Indian Premier League cricket tournament. "Amazon has said its investment in India will surge past $35 billion by 2030, but much of that will go to data centers dedicated to artificial intelligence (AI) - not e-commerce." Probably because India will not allow foreign companies to hold or control inventory. ET. However, Indian quick commerce companies operate from dark stores which stock a wide assortment of goods, from fresh vegetables to mobile phones. BT. We want foreigners to give us their money but we do not welcome them as tourists or as investors. So they take our money and run. Not surprising, is it?    

Statistics or color.

"US consumer spending showed little sign of buckling from the fallout of the Iran war, even as prices rose at the fastest pace in three years." "The personal consumption expenditures price index rose 4.1% from a year earlier, the most since April 2023, Bureau of Economic Analysis data showed." "Economists predict that the higher temperatures climb, the more bloated household costs like groceries may become." ET. "Federal Reserve Chairman Kevin Warsh said...he will stick firmly to the US central bank's 2% inflation target and 'disappoint' anyone who expects loose monetary policy despite President Donald Trump's call for interest rate cuts." Reuters. "US job growth slowed more than expected in June and data for the prior month was revised lower, but the unemployment rate fell to 4.2%, pointing to continued labor market stability." "A historically low level of layoffs is a big part of the strength in payrolls, which had not been mirrored in other labor market surveys, including hiring plans by small businesses." BS. "An unemployment rate of 5% is often considered full employment. This level of unemployment is enough to minimize inflation and allow workers to move between jobs, but those wanting full time jobs should be able to find it (even if it is not their preferred occupation)." A useful policy target is the "non-accelerating rate of unemployment (NAIRU), that represents the rate of unemployment that is consistent with a low, stable rate of price inflation". Investopedia. "The US economy expanded at a solid and unexpected 2.1% annual pace from January through March, the Commerce Department reported...in its first estimate of first-quarter growth." "The growth in gross domestic product - that nation's output of goods and services - marked a rebound from a sluggish 0.5% in the last three months of 2025 when a 43-day federal government shutdown weighed on the economy." msn.com. "The new Federal Reserve Chair Kevin Warsh is unlikely to differ much from the late Alan Greenspan on how to deal with financial asset bubbles." "Some, including Warsh, defend the Fed's unwillingness to rein in the parabolic rise of often loss-making internet stocks in the late 1990s." "However, there are fewer apologists for the housing, mortgage and credit boom that followed that sharp easing." Reuters. "The measure, known as 'labor share of income', tracks how much of the nation's economic output flows to workers in the form of wages and salaries, as opposed to the share that goes to investors and corporations through profits, dividends and other capital income." "As of early 2026, American workers received 54.1% of national income," whereas "that figure topped 65% almost 80 years ago." CBS. "Tracking household incomes from from 1979 to 2024 using inflation-adjusted benchmarks," a study by Stephen J Rose and Scott Winship "finds that while the 'core' middle-class (defined as 250-500 percent of the Federal poverty guideline) shrank from 36% to 31%, this was largely because more families moved into higher income brackets. The upper-middle class, once just 10% of households in 1979, now accounts for 31%," while "the number of Americans living below middle-class thresholds has fallen from 54% in 1979 to 35% in 2024." The Print. So, does it mean that the share of the national income for American workers has fallen because the number of workers has shrunk as automation has increased productivity and the upper-middle class? Or that the investor class is doing well while the working class struggles? Perhaps it is a case of 'lies, damned lies and statistics' (wikipedia). Or, whether you are blue or red.      

Not happy hour.

"Foreign Institutional Investors (FIIs) remained net sellers in the Indian equity market yesterday, offloading shares worth Rs 11.405 billion, according to provisional exchange data." "Domestic Institutional Investors (DIIs), meanwhile, continued to provide support, emerging as net buyers to the tune of Rs 31.5924 billion." "FIIs have remained net sellers throughout the week, withdrawing a cumulative Rs 50.476 billion over the first three trading sessions." "DIIs, meanwhile, continued to offset the foreign outflows, purchasing a cumulative Rs 128.0269 billion worth of equities." CNBC TV18. "Foreign portfolio investors (FPIs) offloaded $29.28 billion (Rs 2.74 trillion) in the equity market in the first six months of 2026, according to NSDL." "In comparison, FPIs have invested around $6.8 billion (Rs 637.84 billion) in the debt market this year." BT. Higher investment in government bonds is because of the removal of taxes on profits from bonds and relaxation in the upper limit of FPI investment. A higher influx of foreign exchange supports the rupee. "An astonishing $53 billion has exited Indian stocks in the last 18 months." It is because domestic investors are keeping the share prices relatively higher, so that "India's price-earnings (P/E) ratio - the ratio of share price to net profit per share - is 22.5 on a trailing basis and 18.8 projected for the coming year." China's P/E ratio is just 12-14, Korea is 10-12 and Brazil is 8-10, wrote Swaminathan Aiyar. Curiously, the cumulative effort of the government and the RBI to keep the rupee strong against the dollar allows FIIs to get more dollars in exchange for their rupee profits. So DIIs, the RBI and the government are incentivizing FIIs to sell. India "is the fastest growing major economy with political stability, a young population, a large domestic market, and robust growth prospects. Yet India remains a paradox: It can attract much more foreign investment, but it does not." This is because of the political inability to reform labor and land acquisition laws. "Reforms create losers in the short run, while benefits accrue only later. Jean Claude-Juncker, former head of the European Commission, once said, 'We all know what needs to be done. We just don't know how to get re-elected after doing it," wrote Aiyar. Calculating the monthly per-capita consumption expenditure (MPCE) at 2023-24 prices, just the bottom 0.5% of the rural population today has the same MPCE of the bottom 10% in 2011-12 while for urban India it is 0.4%. In 2011-12, 121 million of the population fell in the bottom 10%, in 2023-24, that has fallen to 6.5 million, wrote Ashish Kumar and Payal Seth. Extreme poverty may almost have been eliminated but people aspire to a much higher standard of living, inspired by smartphones. Only salaried jobs can fulfill their dreams. But, "last year, 11.6 million Indians in their 20s were unemployed and about 6.8 million of them had been job hunting for over a year." "These numbers understate the full picture: another 78 million in the same age group were not looking for work at all as per our estimates based on the Periodic Labour Force Survey data for 2025," wrote Prof Vidya Mahambare & Asrar Alam. "The most concerning fact, set to get worse with the advent of AI, is that as education levels rise, so does the unemployment level." Even for those with jobs, salaries do not reflect company profits. "Profit before taxes for over 33,000 sampled companies nearly quadrupled between 2019-20 and 2022-23." GDP grew at 6.7% annually between 2021--22 and 2023-24 while real wages for regular workers contracted by 0.7%, wrote Ajit Ranade. Political paralysis, corporate greed, and a frustrated, defeated youth. A sad cocktail.   

Deleted by SIR.

"Recent Announcement: Marriage Certificate is Not A Proof That You Are Married. It's just a Document To Show That You Had Attended Your Marriage Ceremony," mocked journalist Rajdeep Sardesai. Memes like these have flooded social media in India after, "A passport is primarily a travel document and should not be treated as proof of citizenship, a senior external affairs ministry official said." TOI. Does that mean that there are citizens of other countries traveling with Indian passports? If so, how many? "R Rajagopal, who worked at The Telegraph newspaper, says his passport renewal was held up after his name was removed from the electoral roll in West Bengal during a controversial voter list revision. Known as the Special Intensive Revision (SIR), the exercise is being carried out by the Election Commission of India (ECI) to identify ineligible voters." BBC. Renewal of a passport requires the old passport, proof of address, which include utility bills, driving license or rent agreement, and two recent photographs. Bajaj Finance. It does not need a voter card which is now being issued by the ECI after an SIR. As per the ECI an elector (a voter) is one who is a "Citizen of India. At least 18 years of age. Ordinarily Resident of the Constituency. Not disqualified under any law." eci.gov.in. If a passport does not certify citizenship, why is Mr Rajagopal being denied one because the ECI refuses to recognize him as a citizen. Even though he undoubtedly is. So what is the recourse? Obviously a court of law. But this is where one could disappear. "Even as Supreme Court has repeatedly invoked the legal maxim 'that justice delayed is justice denied' - with CJI Surya Kant recently saying 'justice delayed is justice destroyed'," "SC took almost 14 years to decide the appeal. During the period, two out of three convicts died." "The appeal came up for hearing on 12 dates over the last 14 years." TOI. On 23 June, the Orissa High Court delivered a verdict in favor of two daily-wage sweepers after 27 years of litigation. TOI. "Indian entrepreneur Prakash Dadlani has backed Zoho founder Sridhar Vembu's argument that corruption is pushing up costs across the economy, saying it is quietly making Indian manufacturing more expensive by raising the cost of land, approvals, interest and rents." He said, "corruption is not only making homes unaffordable but is also weakening India's ability to compete with manufacturing hubs such as China and Vietnam." BT. If you can prolong a case till death, there is little fear of punishment. So, "A total of 17,043 encounter operations were carried out across Uttar Pradesh in the past nine years, in which 289 criminals were killed and 34,253 were arrested. A total of 11,834 accused were injured." NDTV. "Encounter killings, often simply referred to as encounters, is a euphemism used in India and Pakistan to refer to extrajudicial killings by security forces." wikipedia. "In 'encounter' deaths, the logic of Uttar Pradesh Police is always the same. The accused attacks the police while being taken for interrogation. In an act of defence, the police retaliate, in which the accused dies." 101reporters.com. Apparently, UP Police have changed tactics and now shoot the legs. "According to Uttar Pradesh Police data, there have been 13,000 such incidents in the last seven years, in which the accused were shot in the knee. This is called 'half fry' in UP Police parlance." Hindus are cremated after death, so the 289 dead were fully fried and the 13,000 crippled for life just half fried. How droll.     

Cover up to keep cool.

"Europe's unprecedented early summer heatwave may be responsible for hundreds of excess deaths," with 1,000 excess deaths recorded in France. "At least 74 people have drowned in France since the beginning of the heatwave, according to the Interior Minister Laurent Nunez." BBC. It is apparently because of an 'Omega Block'. "An omega block takes its name from the shape of the Greek letter omega (wikipedia) - with a bulge of warmer, settled high pressure held between two cooler low pressure systems." "Under normal conditions, the jet stream carries carries weather systems steadily from west to east. But during an omega block, that flow becomes disrupted and can buckle dramatically north and south, isolating the pressure systems." Reuters. In 2003, "the hottest summer recorded in Europe since 1540" resulted in 70,000 excess deaths. "In France, 14,802 heat-related deaths (mostly among the elderly) occurred during the heatwave, according to the French National Institute of Health." wikipedia. "Air conditioning is very rare in European homes." "While nearly 90% of US homes have air conditioning, in Europe it's around 20%." The main reason is that up until now there has been no need for AC, houses are built to keep out heat in the summer and energy is very expensive. CNN. One reason for excess deaths among Europeans may lie in their reaction to heat. They tend to take off their clothes which exposes their bodies directly to heat and sunlight. The Arabian Middle East is desert-like and temperatures can reach 55 degrees Celsius in summer. Britannica. Of course, deserts radiate heat after sunset, so nights can be pleasant. The Rub al-Khali (rub means quarter, khali means empty) in Saudi Arabia is the largest area of continuous sand in the world. Britannica. Saudi men wear an ankle-length robe of fine cotton, called thawb (Pinterest) and cover their heads with a square piece of cloth, called Ghutra (saudipedia.com). Over centuries Arabs have adapted their clothing to the weather. White reflects light, and the body, head and neck are all protected from the sun and the hot wind. "The record-shattering June heat that's baked Europe this week would have been'virtually impossible' just a few decades ago, according to a new analysis, which says the human-driven climate crisis is 'unequivocally to blame'." "A similar heatwave occurring in June 1976 would have been a startling 3.5 degrees Celsius cooler, according to the study, which has not been peer-reviewed." CNN. "As of April 2026, real-time data and reports from the India Meteorological Department (IMD) indicate that 95 of 98 of the world's hottest cities are located in India." India is undoubtedly the hottest country in the world. "In 2016, for example, severe heat wave conditions affected Bihar, Jharkhand, Gangetic West Bengal, Odisha, Punjab, Haryana, Chandigarh, Rajasthan, Maharashtra,  West Madhya Pradesh and Gujarat." etvbharat.com. To survive such prolonged extreme heat people need water. India is blessed with hundreds of rivers, Fed by over 5,000 glaciers. wikipedia. Alarmingly, glaciers in the Himalayas and the Hindu Kush are melting rapidly (pib.gov.in) and there is nothing that the government can do to halt the process. "Water has become a struggle in the capital (Delhi), deciding people's sleep, work and daily routine." "In some areas, a family member stays at home or even skips work to wait for tankers so that water can be collected whenever it arrives." TOI. "In yet another act of unprovoked aggression against India, a Pakistani Minister threatened to 'cut off those hands' that sought to claim Islamabad's so-called share of water under the Indus Water Treaty. NDTV. Could desperate leaders of countries with citizens dying of thirst actually declare war on their neighbors? The end of the world could be nigh, indeed. Till then Europeans could adopt the Arab thawb. Cheaper than AC. No running cost.      

Don't wait for the Fed.

"In early June, RBI governor Sanjay Malhotra reportedly said that India had enough reserves to cover 11 months of imports." Even accounting for $110 billion in forward market commitments and $235 billion of short-term debt, reserves of $337 billion is enough to cover 5-6 months of imports, wrote Sudipto Mundle. In order "to attract stable long-term foreign capital" and increased participation in Government Securities (G-Secs) by foreign portfolio investors (FPI), the government has announced "tax exemptions on interest income, long term capital gains (LTCG) and short term capital gains (STCG), expansion of specified securities under the Fully Accessible Route (FAR), and streamlined investment norms." pib.gov.in. The Reserve Bank of India (RBI) was not to be left behind. In October 2025, the RBI loosened restriction on external commercial borrowings. "Companies may raise up to $1 billion or 300% of their net worth (whichever is higher), while financial sector firms regulated by RBI, Sebi, Irdai, or PFRDA face no cap." TOI. The idea is that companies will borrow at cheaper rates abroad to invest in India which will create jobs and increase economic growth, while the influx of foreign exchange will strengthen the rupee. The problem is that companies will have to repay in foreign currency and if profits and/or the rupee were to fall significantly they might find it difficult to service their loans. Last week, "India's central bank has allowed domestic lenders to extend loans to non-residents (NRI) against foreign currency deposits, including via their offshore branches." "Earlier this month, the RBI offered to subsidise hedging costs for foreign currency non-resident (FCNR) deposits as a way to encourage banks to bring in dollar flows from the Indian diaspora." Reuters. Public sector banks (PSB) are offering up to 6.5% on FCNR(B) deposits (ET), which is more than they offer to domestic investors on fixed deposits of similar duration  (paisabazaar.com). Given a consumer price index (CPI) inflation rate of 3.93% (pib.gov.in) the real returns for domestic investors drops to around 2% and the weakening of the rupee reduces the value of their investment. Indian banks are offering around 100 basis points above yields on US 5-year Treasuries, which is at 4.142% (investing.com), but investors are demanding higher yields (ET). It will be lucrative for NRIs "as the nominal FCNR interest rate of 6-7% is higher than international floating rates and NRIs can expect high returns from arbitrage. If they leverage their deposits, annual returns could rise to a whopping 12-19%, according to a Times of India report," wrote Mundle. Since our foreign exchange reserves are adequate why are the government and the RBI so anxious to augment our reserves? Maybe because they are unsure of what the US Federal Reserve is going to do. "The central bank held rates steady at 3.50% to 3.75% this month, as widely expected, but at his first press conference Fed Chair Kevin Warsh surprised many by stressing returning inflation to 2% target as the priority with hardly any mention of the jobs market. But most say the Federal Open Market Committee will prefer to keep rates where they are in coming months." Reuters. "The dollar surged in response and looks set for a period of relative strength." "The dollar rally is an opportunity for Asian capitals to reconsider their options. Indonesia and India, whose currencies have also been under siege could have used a less muscular tone from Warsh," wrote Daniel Moss. "India is trying to defend both the rupee and the stock market simultaneously," wrote Shankar Sharma. Domestic investors are keeping share prices higher through systematic investment plans (SIP) allowing foreign investors to exit at higher prices. The RBI is preventing a fall in the value of the rupee giving foreigners more foreign currency in exchange. "The RBI cannot burn forex reserves defending the rupee, giving foreign capital minimal-cost exits. Nor can Indian investors blow up their savings, giving foreign capital zero-cost exits. India cannot fight a two-front war." Unlike Warsh, the RBI seems unwilling to annoy the government by raising interest rates. Borrowing at high rates to support the rupee to keep cost of oil, gas, and cooking oil down. Must be paid back in future. With interest.

Fighting to lose.

"The UN's International Maritime Organization (IMO) has paused the planned evacuation of more than 11,000 stranded in the Strait of Hormuz after a cargo ship passing through the waterway was attacked." "The attack came after Iran's Islamic Revolutionary Guard Corps (IRGC) had warned that attempts to cross the strait along the route designated by the IMO would be 'unacceptable and completely dangerous' and vessels should communicate with Iran." BBC. Following that unprovoked attack, "The US military attacked Iran...in response to an Iranian drone strike on a cargo ship in the Strait of Hormuz," to which Iran said that, "Iranian naval forces responded by striking US military targets in the region. Tehran did not provide details." Reuters. It is incredible why Iran still has a navy when the US and Israel started attacks on Iran on 28 February (wikipedia), exactly four months to today. They should have destroyed every ship, boat, jetty right at the beginning. After all, ships and boats cannot be hidden in caves like missiles and drones. Starting 4 March, Iran's strategy has been to stop ships carrying oil and gas through the Strait  (congress.gov), causing a sharp rise in prices, in order to pressure the US. And so, "Alongside naval deployments and patrols, there have been reported incidents of gunboat fire to keep vessel movement through the Strait minimal," and "Central to sustaining this closure is Iran's use of naval mines, which can be tactically placed across the narrow maritime corridor to deter and deny the movement of ships." ORF. "Certain conventional surface vessels, like war ships or patrol boats, feature mine laying capabilities." Fishing boats can lay certain types. "Mines can also be dropped into the water via air, through either fixed or rotary winged aircraft, Submarines can use their torpedo tunes to lay some mines." Strauss Center. The US military has been attacking boats suspected of smuggling drugs since 2 September. "The US has since struck 59 boats in the Caribbean Sea and eastern Pacific Ocean." At least 205 people have been killed. pbs.org. By now, every Iranian ship, boat, submarine, even inflatable dinghies, should have been destroyed. To allow Iran to engage in such open piracy is probably why the US keeps losing every war since Vietnam. Last week, "The presidents of the US and Iran have signed an initial peace deal aiming to end the war, allowing it to immediately take effect." It includes "reopening the Strait of Hormuz, a $300 billion plan for Iran's 'reconstruction', and the US terminating 'all types of sanctions on Iran'." BBC. This sounds like a complete surrender and Trump haters in the US, Europe and India have been celebrating. Trump's deal is much weaker than the Joint Comprehensive Plan of Action negotiated by Barack Obama in 2015. Reuters. Yesterday, "The US struck multiple targets inside Iran for a second straight night...after Tehran allegedly attacked another oil tanker passing through the Strait of Hormuz,...and pushing the already fragile ceasefire to the edge of collapse." NDTV. Soon after the US had lifted the naval blockade on Iran, Iran's Supreme Leader Mojtaba Khamenei said that "Trump had 'out of desperation used all kinds of leverage' to bring the deal about." BBC. Strangely, even as the regime and the media in Iran celebrated a victory over the US, hardliners in Iran warned that the "agreement would turn the Islamic Republic into a 'colony of the United States' and open the Strait of Hormuz to Israel." CNN. If both countries lost, which lost more? The Strait is a body of water. Iran should have nothing that operates on or below the water surface. First control the water. Then negotiate for oil.      

Don't stay down.

"About 10 years ago, less than one in 10 of India's poorest rural households owned a bike or car; now close to half do." Ownership of refrigerators has jumped from 2.9% to 22.5% in the bottom 40% of rural India while it has increased from 20.9% to 57.9% in urban areas. Mobile phones are ubiquitous. TOI. About 97% of people in the age group 15-29 years own mobile phones and 95.5% of them own smartphones. Over 92% have accessed the internet in the last three months (pib.gov.in) and a majority of them have used the United Payments Interface (UPI) (Kotak) for online transactions. The Household Consumption Expenditure Survey (HCES) 2023-24 shows that the monthly per capita expenditure (MPCE) of only 0.5% of rural and 0.4% of urban households, at 2023-24 prices, are at the same level as the bottom 10% of the population in 2011-12. In rural areas most are found in the 10th to 40th percentiles while in urban areas most are in the 20th to 30th percentiles. "Even accounting for population growth, this implies that nearly 114.5 million people or about 8% of India's current estimated population have moved above the real consumption level that defined the bottom decile," wrote Ashish Kumar & Payal Seth. This is a real eyeopener. But how was it achieved? The large proportion may be because, "The population covered by social protection systems has increased from 22% in 2016 to 64.3% in 2025, indicating substantial expansion in social security coverage in the country, data released by statistics ministry showed." TOI. "Over the past decade, government cash transfers, particularly directed at women and farmers, have emerged as a major welfare tool for poverty. Federal and state allocations for such schemes grew more than 20 times from under $2bn in 2015 to nearly $30bn, according to data from Project DEEP," BBC. During elections, "Free electricity, free bus rides, loan waivers, cash transfers, subsidised meals, free liquefied petroleum gas (LPG) cylinders, free consumer appliances and restoration of pension schemes have become familiar features of electoral campaigns." Political parties try to outbid each other in making reckless promises, uninhibited by any worries about how to finance these handouts, such are the perks of power in India. "Many states have to depend on heavy borrowing because their revenues are insufficient to meet growing commitments." In time, interest payments on their debt become a major part of their budgets. NUS. Handouts may prevent poverty and even increase spending of the bottom 10% but they are not going to create wealth. Jobs with proper salaries will. "Last year, 11.8 million Indians in their 20s were unemployed and about 6.8 million of them had been job hunting for over a year." "In terms of overall unemployment rate, about 10% of young Indian adults in their 20s were unemployed last year. This does not include around 40% who were not even looking for a job," wrote Prof Vidya Mahambare & Asrar Alam. Not sure of consumers' ability to spend, it is no surprise that Indian companies are reluctant to invest in new capacity despite higher earnings. "The aggregate net income of listed Indian firms is approaching 6% of gross domestic product (GDP). Even so, their capital expenditure has remained flat at 3.6% to 3.7% of GDP." "The good jobs that come with new factories, warehouses, and showrooms are becoming elusive." "India's per capita real income is less than half of 1950s America," wrote Andy Mukherjee. "India's predictable slide into economic mediocrity follows a well-trodden path into middle-income trap." "Weak authoritarian regimes" "provide only polarisation, slogans and hubris. But they are powerless when an external crisis hits." "High GDP growth that does not translate into more and better jobs, and results in weak inflation due to poor demand, signals a middle-income trap," wrote Rathin Roy. Trapped below the 1950s. Is there a way out? Not by staying down. Push everyone up instead.   

A country without citizens.

"A passport is primarily a travel document and should not be treated as proof of citizenship, a senior external affairs ministry official said...at an event to highlight the expansion of passport services across the country on 14th Passport Seva Divas. The passport attests the nationality of Indians when they are abroad but it isn't a document of citizenship, officials clarified." TOI. "In international law, nationality is a legal identification establishing a person as a subject, a national of a sovereign state." wikipedia. What then is the difference between a nation and a state? "A nation is a group of people with a common language, history, culture and (usually) geographic territory. A state is an association of people characterised by institutions of government, including laws; permanent territorial boundaries; and sovereignty (political independence)." Britannica. "There are 28 states and 8 Union territories in the country." And, "From the largest to that smallest, each State/UT of India has a unique demography, history and culture, dress, festivals, language etc." india.gov.in. Therefore, each state in India is a nation, but the states are not sovereign and cannot issue passports. Only the Union government can. But the Union government cannot attest to our nationality, only the states can. This confusion is dangerous. China "claims approximately 90,000 sq km of Indian territory in State of Arunachal Pradesh, Indian territory under occupation of China in Jammu & Kashmir is approximately 38,000 sq kms." mea.gov.in. If the people of these states are not citizens of India what will they defend? An application for a new passport requires any one of eight documents as proof of identity but not of citizenship. Bajaj Finserve. Apparently, the only real proofs of citizenship are Certificate of Naturalisation or a Certificate of Registration issued to foreign nationals obtaining Indian citizenship and birth certificate of an individual born after 1950 and their parents. News 18. So, what of those of us born before 1950 when no one had a birth certificate? We were born here, grew up here and have been paying taxes all our lives but we are not citizens. No wonder, "Close to one million Indians have renounced their citizenship over the last five years, with annual numbers crossing the 200,000 mark consistently since 2022, according to data presented by the government tin Parliament." TOI. Since they were not recognized as citizens by the Indian government they lost nothing. But they have gained citizenship of another country. Strangely, "An immigration officer in London, Paris or Washington is expected to place complete faith in the document, while the country that issues it reserves the right to treat with extreme caution and suspicion and ultimately to disregard it entirely." "A death certificate that merely suggested the possibility of death, a birth certificate that did not confirm birth, a driving licence that did not prove the holder could drive,...or a marriage certificate that did not affirm marriage would be laughed out of existence," wrote Rahul Bedi. If an Indian passport is issued on production of documents none which certify citizenship, is it being issued to illegal immigrants? If so, why? In 2019, 20 illegal immigrants from Bangladesh were arrested in Tamil Nadu who had "allegedly not only acquired ration cards and driving licenses but had also managed to get authentic Aadhaar cards and, through Aadhaar, passports." TINE. Perhaps, what the officials can't, or won't, say is that the entire bureaucracy is not to be trusted. Documents obtained with money aren't certifiable. Easier to deny citizenship to all Indians. The government is safe.       

Lavish gifts for foreigners.

"Kevin Warsh took office as chairman of the Board of Governors of the Federal Reserve System on May 22, 2026, for a four year term," and "also serves as chairman of the Federal Open Market Committee, the Federal Reserve System's principal monetary making body." Federal Reserve History. Warsh was expected to be dovish on interest rates, but "The Federal Reserve held US interest rates between 3.5% and 3.75% after Kevin Warsh's first meeting in charge of the central bank." The Fed's conclusion was, "The Committee will deliver price stability." BBC. Which hints at a tightening bias. "The dollar surged in response and looks set for a period of relative strength. That is precisely what beleaguered Asian currencies did not need," wrote Daniel Moss. Japan's yen fell to 161 against the dollar. "Japan spent an unprecedented $74 billion in the month to 27 May to back the yen." On 16 June, "the Bank of Japan (BOJ) raised its so-called policy rate to 1% from 0.75% - a level not seen since 1995." "Japan's interest rates were cut aggressively in the 1990s to combat the fallout from a collapse in prices of assets like property and shares." "The bank has been gradually raising its interest rate since March 2024." BBC. Japan's consumer price inflation rose to a high of 4% in January 2025, but has been well below the BOJ's target of 2%. rateinflation.com. Currencies of Indonesia and India have also been under pressure. " Indonesia "has waded into the market repeatedly over the past year," "But developments became more serious this month, when it (the rupiah) broke through the critical level of 18,000 per dollar and demand for the country's bonds crumbled. That pushed the Bank of Indonesia into an emergency quarter-point rate increase, followed by a hike of the same magnitude last Thursday." The Reserve Bank of India (RBI) has been extremely clever. As always. "The RBI is not thinking about raising interest rates at the moment, Governor Sanjay Malhotra said." It is too early to discuss rate hikes, he said. India Today. "India's foreign currency reserves dropped USD 9.985 billion to USD 671.625 billion during the week ended 12 June due to a sharp drop in gold reserves, the RBI said." TNIE. "The RBI sold a net $8.94 billion in the foreign exchange market in April, while its gold holding remained stable." "The Indian rupee slumped to a record low of 96.96 per dollar last month," and so, "The currency was then shored up by firm RBI intervention over multiple trading sessions." "The RBI's net outstanding forward dollar sales stood at $95.30 billion as of end-April, compared with $103.06 billion as of end-March." Reuters. The central government "promulgated an ordinance exempting foreign institutional investors and the Bank of International Settlements (BIS) from tax on interest income and capital gains arising from investment in government securities." The RBI will bear hedging costs for external commercial borrowings of public sector banks. TNIE. The RBI has allowed banks to offer higher interest on FCNR(B) accounts of non-resident Indians (NRI) and "RBI absorbs the currency hedging cost (estimated at around 3.5%)," so that "Banks are now offering 6% to 7.1% on USD FCNR(B) deposits." Investmates. FCNR(B) accounts are held in foreign currencies are fully repatriable, can be converted to any other currency, earn a higher rate of interest than in the parent country and are free of tax in India. cleartax.in. Who will pay for all this generosity by the RBI for foreigners? The hapless Indian taxpayer of course. While determined not to increase interest rate, so that savers can earn more, the RBI is now projecting a higher consumer price index (CPI) inflation at 5.1% for this financial year (ANI). So Indians are to suffer higher costs, get less interest on bank savings, lose wealth from rupee depreciation and reward foreigners with lavish gifts. The colonial mentality has not gone. Still subservient to foreigners. We are second class.     

Water tankers in Delhi.

"In 2018, India sought to achieve 20% ethanol blending in petrol by 2030 but reached the goal five years early." "According to the government, ethanol blended petrol has so far helped the country save $1.7 trillion in foreign exchange," and "India slashed carbon emissions by 87 million tonnes, equivalent to planting 350 million trees." India produces ethanol from rice, maize and sugarcane and "it takes 9,854 liters of water to produce 1 liter of ethanol from rice (excluding water used during processing)." From maize it takes 3,714 liters and from sugarcane 3,837 liters, wrote Sayantan Bera. In August 2025, "With the launch of the India Semiconductor Mission and an outlay of Rs 760 billion, several fabrication and design facilities have been established," as well as, "Rs 100 billion allocated under IndiaAI mission to strengthen AI capabilities." pib.gov.in. Semiconductor manufacturing consumes vast volumes of water. "In 2023 alone, Semiconductor giant TSMC reported consumption of a staggering 101 million cubic meters of water." idtechex.com. In addition, "The global AI demand may even require 4.2-6.6 billion cubic meters of water withdrawal in 2027," and "Simultaneously, the total scope-1 and scope-2 water consumption of global AI could exceed 0.38-0.62 billion cubic meters, i.e. roughly evaporating the annual withdrawal of half of Denmark or 2.5-3.5 Liberia." oecd.ai. Ethanol, semiconductors, AI, everything needs water, so what? India has the world's largest population at 1.477 billion and rising. worldometers. Producing ethanol to save on crude oil is not only guzzling water but "Food grains have overtaken sugarcane as ethanol feedstock, risking food security. Farmers are shifting to maize and away from pulses, oilseeds and other cereals." BT. "India, once the world's second-largest sugar exporter, is expected to have little surplus for export for at least three seasons as El Nino weather conditions threaten cane production and rising ethanol demand squeezes supply." "India exported 6.8 million metric tons annually on average in the five seasons through 2022-23," but "This year after exporting around 800,000 tons, India banned shipments until 30 September." "India was expected to produce 30.95 million tons of sugar this season but output is now forecast at 27.9 million tons, below annual consumption of about 28.5 million tons." Reuters. "After nearly two weeks of stagnation, India's southwest monsoon is showing signs of life." But, According to the latest India Meteorological Department (IMD) data, the country has received just 53.1 mm rainfall between 4 June and 22 June, against a normal of 97.6 mm, leaving India with a rainfall deficit of 46%. Large parts of central, northern and peninsular India continue to remain in the deficient or large-deficient rainfall category." India Today. The result is that "live water storage in the country's 166 major reservoirs has dipped to 27.5% of their total storage capacity." However, this is still better than the average storage over the last 10 years. TOI. If that was meant to reassure us, it is actually terrifying. It means we are inches away from dying of thirst. "The Delhi Jal Board (DJB) supplies potable water in water deficit areas through around 800 department and hired water tankers from 25 emergency centers in different zones in Delhi." DJB. Saving money on petroleum to spend on importing pulses and cooking oil. Losing money on sugar exports. Wasting water on ethanol and chips when there is no drinking water. Never mind, happy news. "Prime Minister Narendra Modi is likely to undertake a three-nation Indo-Pacific tour covering Indonesia, Australia and New Zealand from July 6 to 11." TOI. Dear Leader working so hard for us. Brings tears to our eyes. That's precious water. Any sacrifice for Dear Leader.
  

The Empire's hangover.

 "British Prime Minister Keir Starmer said he would quit on Monday (yesterday), paving the way for the country to have its seventh leader in ten years. The chaos dates back to the Brexit referendum 10 years ago to the day on Tuesday (today). Reuters. "On 23 June 2016, the UK held a referendum on its membership of the European Union (EU)." "51.89% of voters voted to leave the EU. The UK left the EU on 31 January 2020." government.nl. Having lost the referendum David Cameron left in 2016, Theresa May in 2019, Boris Johnson in 2022, Liz Truss, after just 44 days in office, also in 2022, Rishi Sunak after losing the general election in 2024, which brought in Keir Starmer, with a super-majority for Labour in the House of Commons with 411 out of a total of 650 seats (House of Commons Library), but even that could not save him. Starmer lasted just two years, less than May and Johnson. According to the US National Bureau of Economic Research, "Brexit reduced UK GDP by 6%-8% by 2025 compared with if Britain had remained in EU, Productivity and employment reduced by 3% to 4% and Investment reduced by 12%-18%." These are enormous figures, but Covid may have contributed to the slowdown. Other institutions have calculated differently. Reuters. The Keir Starmer government was pro-EU, "But the tangible benefits have been limited." "Opinion polls show that a majority of people in Britain regret leaving the EU and want to rejoin the bloc. But a YouGov poll this month showed that support fell away once people were asked about the possible implications or costs of rejoining, particularly around immigration and the future of the pound." Reuters. Voters wanted a sharp reduction in immigration, but in this  "Brexit has failed spectacularly. Net migration to the UK has averaged 550,000 a year since 2021,...compared to 250,000 in the 2010s, according to the Migration Observatory of Oxford. In 2023, net migration was just under 950,000, an all-time high, as immigration by non-EU citizens spiked before dropping sharply." CNN. Why do people from other countries want to migrate to the UK, a tiny country with a land area of just 242,741 sq km, with a population of about 70 million (wikipedia), and a nominal GDP of $3.686 trillion in 2024 (World Bank)? Maybe because between one and two billion people in 88 countries and territories speak English  (wikipedia) and "An estimated 90% of the training data for current generative AI systems stems from English (The Convesation)." "Mainstream American English is entrenched in the digital infrastructure of the internet, in Silicon Valley's corporate priorities, and in the data sets that fuel everything from autocorrect to AI generated synthetic text." If you want your research paper in science to be read widely, it must be in English. "In 2023, about 85% of the roughly five million articles indexed in major global databases covering the natural, medical and social sciences were written in English. In 1990, the proportion was considerably higher: 94%." phys.org. The reason for this anomaly was the British Empire. "At its height in the 19th and early 20th centuries, it was the largest empire in history," and "By 1913, the British Empire held sway over 412 million people, 23% of the world population at the time, and by 1920, it covered 35.5 million sq km, 24% of the Earth's total land area." wikipedia. The British should realize that those days are over. Now the UK is just a small island with no natural resources. Get close to the EU, stop coddling illegal immigrants. concentrate on trade and services you are good at. Learn from Dubai, Singapore, Switzerland and other successful small countries. Or keep changing prime ministers.