Free is expensive.

"India's central bank will close a discounted forex swap facility for banks to hedge overseas deposits raised from non-resident Indians (NRI) a month earlier than planned," as "The RBI said it received $52.3 billion via FCNR deposits raised by banks." The scheme will now close on 31 August instead of on 30 September. Reuters. Higher foreign exchange reserves are necessary as, "India's goods exports in July, driven by higher electronics exports and engineering items, jumped nearly 20% to $44.24 billion but higher input costs due to West Asia crisis also drove imports 17.51% higher to $76.22 billion, pushing the goods trade deficit to a six-month high of $32 billion, data released by the Commerce and Industry Ministry showed." TIE. From April to July, FY 2026-27, total Merchandise exports were $173.78 billion and imports were $292.38 billion, while Services exports were $142.64 billion and imports were $73.47 billion, resulting in a total trade deficit of $49.43 billion. pib.gov.in. India's electronics export is booming. "In July, India exported $5.92 billion of electronics goods, up 57.4% from a year earlier, while imports surged 46.03% to $14.37 billion. For every $100 of electronics exported, it imported about $243." "China remained India's largest import source, with imports rising 34.4% in July to $14.67 billion." Exports to China were a tiny $2.20 billion. MC. India's "farmers use more urea - a nitrogen-heavy crop nutrient - than the US and Brazil combined, buoyed by government support which keeps prices well below market rates." As supplies through the Strait of Hormuz have stopped, India "has faced lofty costs for the natural gas imports...that serve as a crucial feedstock for domestic fertilizer production. The country's fertilizer subsidy bill is likely to exceed Rs 3 trillion ($31 billion) in the current fiscal year, well above the budgeted Rs 1.71 trillion." "Farmers still pay Rs 266.5 (2.80) for a 45-kilogram bag of urea, less than a tenth of the price paid in an April tender to procure it." ET. "Studies show that plants absorb only 30-40% of applied fertilizers such as urea and DAP (Diammonium Phosphate), leaving 60-65% of nutrients unused." "This is leading to groundwater contamination, air pollution and inefficient use of subsidized farm inputs, according to manufacturers and experts." Mint. "The total outstanding agricultural loans of banks neared Rs 31.35 trillion as on 31 December 2025." "Over the past decade, it reached nearly Rs 28.67 trillion in 2024-25 from Rs 8.45 trillion in 2014-15." Public sector banks (PSBs) account for over 70% of these loans. The Kisan (farmer) Credit Card Scheme (KCC) had 77.2 million operational accounts with loans outstanding of Rs 10.20 trillion, as on 31 March 2025. HT. It is unlikely that farmers, already poor, will be able to repay any of these loans and so the whole amount becomes a subsidy. Meanwhile, "The Parliamentary Standing Committee on Defence has flagged poor demand, high production costs and recurring quality issues at the country's small-arms factories." High overheads "resulted in cumulative losses of Rs 3.66 billion across three factories on 12 selected small arms between 2015-16 and 2019-20." "Even after corporatisation,Speaking on infrstructure" Advance Weapons and Equipment India Ltd (AWEIL) "recorded losses of Rs 2.34 billion between FY 2023-24 and FY 2025-26." India Today. Why not shut them down? Probably because a large number of poor quality workers will lose their jobs and that might cost votes. Speaking on infrastructure, Chief Economic Advisor, V Anantha Nageswaran said, "Free is the most expensive word in public policy." Waste of trillions of rupees is being used as subsidy. Then borrowing to fill up the hole. This is not voodoo economics. It's worse.