Centre Passes on Greater Tax Share for States to Spend More

Higher share of tax money for states to boost economy by spending more: The Union government on Friday, released tax devolution of ₹1,73,030 crore ($20.76 billion) to state governments, as against the devolution of ₹89,086 crore ($10.72 billion) in December 2024. The tax devolution comes ahead of schedule after the government’s first advanced estimates said GDP is likely to grow at a four-year low of 6.4% in FY25, down from 8.25% in FY24. In terms of state-wise allocation, Uttar Pradesh, Uttarakhand, and Bihar received the biggest share of funds. Uttar Pradesh received ₹31,039.84 crore ($3.74 billion), Bihar ₹17,403.36 crore ($2.08 billion), and Madhya Pradesh ₹13,582.86 crore ($1.63 billion).

Shiv Sena, National Conference unsure of INDIA bloc's future

Shiv Sena doubtful about INDIA bloc’s future: Shiv Sena (UBT) Sanjay Raut voiced concerns about the INDIA bloc on Friday, echoing Omar Abdullah, the chief minister of Jammu and Kashmir, who also expressed reservations over the Opposition alliance's lack of coordination. He noted that since the Lower House polls, there hasn't been any strategic conversation about the future.

Omar Abdullah questions Opposition alliance's relevance: Following Trinamool Congress' alliance with the Aam Aadmi Party (AAP), Jammu & Kashmir Chief Minister Omar Abdullah challenged the relevance of a combined opposition in the country on Thursday. He said the INDIA bloc should be dissolved if it was meant only for the central elections. He pointed out that there is no clarity about the leadership of the bloc and that no discussions have been conducted to devise a plan for the future. He was responding to Rashtriya Janata Dal leader Tejashwi Yadav's comment that the bloc was only made for Parliamentary elections.

UN report on India’s economy

Indian economy to grow by 6.6% in 2025, says UN report: According to the United Nations (UN) World Economic Situation and Prospects 2025 report, the Indian economy is expected to grow by 6.6% in 2025 and 6.7% in 2026 supported by private consumption and investment growth. The First Advance Estimates from the National Statistics Office forecast the Indian economy to slow down to a four-year low of 6.4% in 2024-25, while the Reserve Bank of India’s (RBI) projection is 6.6%.

India’s NaBFID targets $4.7 billion for development

NabFID eyes $4.7 billion fundraising: To support the country's ambitious economic push, India's state-owned National Bank for Financing Infrastructure & Development (NaBFID) is aiming to raise $4.7 billion, the largest fundraising ever during the January–March timeframe. The financing would be achieved from the local debt markets through a combination of bonds and loans, the Business Standard reports. NaBFID has received approval from government-owned banks for some of the lending, and the new loan facilities will mostly have longer ten- to twenty-year tenures. Infrastructural development is one of the primary agenda of the current Indian government. According to a Knight Frank report, India needs a $2.2 trillion investment to increase the size of its economy to $7 trillion by 2030.

Taliban requests India for visa access

Taliban wants Indian visa for Afghan patients, students and businessmen: After India and Taliban-ruled Afghanistan held their first high-level meeting, the Taliban announced that they had urged Delhi to issue visas to Afghan businessmen, patients and students. Deputy Spokesperson for the Afghanistan Foreign Ministry, Hafiz Zia Ahmad, said the request for visas was conveyed by acting Foreign Minister Amir Khan Muttaqi to Foreign Secretary Vikram Misri when they met in Dubai on Wednesday. According to Hafiz Zia Ahmad, the “two sides agreed to facilitate visa and trade”. However, the Indian government’s statement on the meeting did not mention this. It only said Foreign Secretary Misri "conveyed India’s readiness to respond to the urgent developmental needs of the Afghan people." The Indian Express reports that Muttaqi and the Taliban delegation assured the Indian side that there would be no threat from those who would travel to India and that they would ensure the vetting of those being granted visas. While the Taliban is aware of the Indian hesitation in granting official legitimacy to their regime, they want to move forward on "pragmatic" and "workable" solutions.

Atishi claims Ramesh Bidhuri is BJP's pick for CM face

Delhi CM makes claims about BJP's CM face: Delhi Chief Minister Atishi claimed on Friday that the BJP is going to make Ramesh Bidhuri the Chief Minister if it is voted to power. She was speaking at a press conference. Aam Aadmi Party (AAP) has dubbed the BJP the "Gali-Galoch" (abusive) party. Atishi claimed that the BJP promotes only the most abusive among its rank and file. Ramesh Bidhuri was under fire last week over his remarks on Congress MP Priyanka Gandhi Vadra and Atishi. He received a major backlash on social media for his misogynistic comments. He said he would build roads in the Kalkaji constituency that would look like Priyanka's “cheeks.”

Read more:

Atishi Claims Ramesh Bidhuri to be BJP’s CM Face

Delhi Chief Minister Atishi claimed on Friday that the BJP is going to make Ramesh Bidhuri the Chief Minister if it is voted to power. She was speaking at a press conference. Aam Aadmi Party (AAP) has dubbed the BJP the “Gali-Galoch” (abusive) party. Atishi claimed that the BJP promotes

Delhi BriefingDaanish Narayan

Rahul Gandhi to take on AAP and BJP: Congress is stepping up its campaign for the Delhi assembly elections. Leader of the Opposition in Lower House Rahul Gandhi is set to address a public meeting in Seelampur on January 13. Congress Chief Ministers of states like Telangana, Himachal Pradesh and Karnataka are expected to visit the capital to drive support for the party candidates.

Sharad Pawar praises RSS and its cadre: NCP (SP) chief Sharad Pawar has praised the RSS for its dedication to its ideology and urged his party to create a worker base with commitment to progressive thoughts of Shahu Maharaj, Mahatma Phule, BR Ambedkar and political stalwart Yeshwantrao Chavan. Addressing party workers at a meeting in south Mumbai on Thursday, the former Union minister noted the Rashtriya Swayamsevak Sangh (RSS) has committed cadres who show unwavering loyalty to the Hindutva organisation's ideology and do not deviate from their path at any cost, reports PTI.

Measures to curb cybercrime

Parliamentarians discuss measures to tackle rising cybercrime amid digitisation: Parliamentarians on Thursday proposed several measures to the Home Ministry to address the surge in cybercrime, attributed to rapid digitisation. Members of the Parliamentary Standing Committee on Home Affairs were briefed on the issue during a meeting with Home Secretary Govind Mohan and other ministry officials. The committee discussed strategies for preventing and protecting against cyber crime.

Whiskey bribery case

Fresh complaint against Karti Chidambaram: Karti Chidambaram, a Congress MP and the son of former Finance Minister P Chidambaram, has been the subject of a new formal complaint filed by the Central Bureau of Investigation (CBI). The issue centres on claims that Karti assisted Diageo Scotland, a UK-based alcoholic beverage business, in getting past an Indian law that prohibited the duty-free selling of its Johnnie Walker whiskey. An initial enquiry in the case was initiated in 2018, which probed the processing and approval of Foreign Investment Promotion Board (FIPB) clearances. The new FIR alleges corruption in lifting the ban imposed on Diageo Scotland for the sale of duty-free liquor in India in 2008 besides FIPB clearance to Sequoia Capital. It is alleged that Karti received bribes through Vasan Health Care to grant FIPB clearance to Sequoia Capital. Vasan Health Care, Diageo Scotland and Sequoia Capital have also been named in the new complaint.

ED targets hawala operators

ED busts money laundering network: The Directorate of Enforcement (ED) has exposed a network of Chartered Accountants and hawala operators that is accused of having transferred over ₹10,000 crore in illicit funds out of the nation. Digital and other documents that exposed the accused's method of operation were found during a search conducted on January 2 in Thane, Mumbai, and Varanasi. The agency said, Jitendra Pandey, the main accused, opened over 98 shell companies and 269 bank accounts to launder the money to Singapore, Hong Kong and Thailand.

Investigation reveals second British soldier’s alleged ties to Punjab terror acts: Investigations by Punjab Police into grenade attacks and violence in the state suggest a second British Army soldier may be linked to terrorist activities, according to The Indian Express. The first soldier, Jagjeet Singh was earlier named in connection with the Khalistan Zindabad Force (KZF), while the second is allegedly tied to Harwinder Singh Rinda of Babbar Khalsa International (BKI). Police claim there is credible evidence connecting the soldiers to terror acts in India with potential involvement of other personnel. Authorities are also probing the possibility of Pakistan's Inter-Services Intelligence (ISI) recruiting British soldiers for the religious secessionist cause. 

US soldier’s arrest linked to 2024 BSNL data breach: An American soldier arrested in Texas for attempting to sell hacked telecom data is likely connected to a major data breach at India’s State-owned Bharat Sanchar Nigam Limited (BSNL), Hindustan Times reports. Cameron John Wagenius, a communications specialist stationed in South Korea, was arrested on December 20 for selling stolen data from American telecom companies. He is believed to be the hacker “kiberphant0m” on a dark web marketplace, where he tried to sell 278 GB of sensitive BSNL data in May for $5,000. The compromised data included subscriber details, SIM numbers, and security infrastructure information.

Nijjar murder accused still in jail: Contradicting Thursday’s reports, the four Indian nationals arrested last year for their alleged involvement in the killing of Khalistani separatist Hardeep Singh Nijjar remain in custody as they await trial before the British Columbia Supreme Court. The Hindustan Times reported, “all four accused have been detained, and they continue to remain in custody.”

FDI flow news - brought to you by

Indian law firms and industry bodies seek to raise FDI limits: To make the Indian economy more appealing, industry bodies and legal firms have proposed easing restrictions on the flow of capital from China, liberalising laws for plantations and agriculture, and raising the FDI limits for R&D and security agencies. The issues were discussed during a consultation by the Department for Promotion of Industry and Internal Trade (DPIIT) on Wednesday. Issues related to e-commerce, pharma and financial services were also discussed in the meeting. The Times of India reported that DPIIT also solicited ideas from law firms and industry stakeholders on whether any procedural simplifications were required to scale up FDI flows into the country.

L&T faces criticism

L&T gets backlash from the public after questionable work culture comments: Indian multinational conglomerate Larsen & Toubro (L&T) chairman SN Subhrahmanyan's comments on employees' working hours drew heavy backlash on social media from celebrities and industrialists alike. The controversy was triggered by a video, which was recorded during an employee interaction at L&T. In the video, Subhrahmanyan, when asked about the employees' working hours, responded by saying that he wanted employees to work even on Sundays: “What do you do sitting at home? How long can you look at your wife? Come on, get to the office and start working.” After the video went viral drawing flak for L&T, the company had to issue a statement saying that India needs collective effort for its development goals. “We believe this is India’s decade, a time demanding collective dedication and effort to drive progress and realise our shared vision of becoming a developed nation. The Chairman’s remarks reflect this larger ambition, emphasising that extraordinary outcomes require extraordinary effort,” said the statement. But Subhrahmanyan's comments were heavily criticised by actors like Deepika Padukone, Jwala Gutta and industrialist Harsh Goenka.

TCS clocks 3.9% QoQ growth: Even with demand slowed in its key markets across the US and the UK during the holiday season, Tata Consultancy Services reported that its net profit increased to ₹12,380 crore in the third quarter of FY25, a lower-than-expected gain of 3.9% sequentially and 5.5% year-on-year. Net profit increased 12% YoY after deducting a legal claim expense of ₹958 crore from the previous year.

Vodafone completes sale of 3% Indus Towers stake: British telecom firm Vodafone has sold its entire 3% stake in Indus Towers for ₹2,800 crore ($337 million). The sale involved 7.92 crore shares, with ₹890 crore ($107 million) used to settle lender dues, the company said in a regulatory filing. Vodafone's stake was held through its wholly-owned subsidiaries, Omega Telecom Holdings Private Limited and Usha Martin Telematics Limited. Additionally, Vodafone Idea utilised part of the funds to clear pending Master Service Agreement dues with Indus Towers.

December inflation 

Inflation at 5.3% in December: According to the Mint, India’s retail inflation has dropped to a four-month low of 5.3% in December. The figure was estimated to be 5.5% in November. The Mint’s estimates come from a survey of 25 economists. 

Russia, US cut crude oil exports to India

Russia, US scale down crude oil exports to India: Russia, the US, Venezuela, and Brazil reduced exports to India due to higher demand from their domestic refineries, collectively losing 17% of the Indian crude import market in December compared to the same month the previous year. Russia remained the leading supplier with a 33.4% share of India's crude imports in December, down from 41.3% in November. In December, India received 1.5 million barrels per day (mbd) of Russian crude, while in November, it received 1.75 mbd.

US, EU caution Indian exporters over dual-use goods to Russia: Indian exporters to Russia have been warned by the US and the European Union (EU) to assess their shipments carefully to avoid the risk of sanctions, The Hindu Business Line reports. Authorities from the US Bureau of Industry and Security (BIS) and the Office of Foreign Assets Control (OFAC) met with industry representatives to discuss the 50 high-priority sanctioned items, including dual-use goods and advanced technology, that could trigger penalties if their components are used for military purposes.

Republic Day chief guest

R-Day chief guest's rebound Pakistan visit raises concerns: India is not pleased with its Republic Day chief guest flying straight to Islamabad after the parade and celebrations. According to The Times of India, India has invited Indonesian President Prabowo Subianto to be the chief guest for the Republic Day celebrations on January 26 with an official announcement expected soon. However, The Times of India report suggests India is wary of his visit being coupled with a proposed three-day visit to Pakistan, following reports of his arrival in Islamabad on the same day. India has raised the issue diplomatically with Indonesia, urging Subianto to avoid flying directly to Pakistan after the celebrations. 

Steve Jobs' widow Laurene to visit mega Hindu monk congregation: According to media reports, American billionaire entrepreneur and philanthropist Laurene Powell Jobs, widow of Apple founder Steve Jobs, is scheduled to attend the Mahakumbh 2025 in Prayagraj. The Times of India reported she is expected to stay at the camp of Swami Kailashananda, the Mahamandaleshwar of the Niranjani Akhara. She will participate in various rituals and take a dip at the Sangam (the confluence of the Ganges, Yamuna, and the mythical Saraswati rivers). She will also observe Kalpavas, a spiritual practice followed during the event.

Defence reforms

India’s defence procurement policy to be reformed in 2025: Defence Secretary Rajesh Kumar Singh announced that India’s defence procurement policy will be reformed within six months to a year. The reforms will focus on streamlining timelines and fixing the procurement process. The announcement follows the Ministry of Defence’s decision to observe 2025 as the “Year of Reforms” and its December announcement that the Defence Acquisition Procedure (DAP) 2020 was “likely to undergo a complete revamp” in 2025. 

DRDO Chairman calls for foreign collaboration on sixth-generation jet engine: Chairman of the Defence Research and Development Organisation (DRDO), Samir V. Kamat stated that the only way India can develop a sixth-generation aero-engine and other technologies required is by co-development with a foreign manufacturer. He said that India’s defence budget for research and development needs to be increased by 15% to $5 billion, currently it is only at 5%. India is in discussions with France for the co-development of a 110KN engine for the fifth-generation jet, Advanced Medium Combat Aircraft (AMCA), expected to take at least a decade to produce a prototype. Kamat noted the need for advanced materials and testing facilities, and said that India should build capacity to produce 16 fighter jets annually, exploring public, private, or joint sector involvement.

ModiWatch: Prime Minister Narendra Modi on Thursday launched the genome sequencing data of 10,000 Indian nationals, marking an important step in biotechnology research. The Genome India Data, reflecting India’s genetic diversity, will be accessible to researchers at the Indian Biological Data Centre (IBDC) through managed access. The initiative aims to build a comprehensive catalogue of genetic variations in India’s population, supporting advancements in disease treatment, medication development, and lifestyle research. 

PM Modi will feature as the guest in the next episode of Zerodha co-founder Nikhil Kamath’s podcast, “People with the Prime Minister.” PM Modi talks about leadership, his tenure, global tensions, and politics, while also reflecting on his journey as a politician. The podcast's release date has not yet been announced.

Delhi Today: Hazy.

Fog delays 100 flights, 26 trains as Delhi imposes GRAP 3 to tackle 'severe' AQI: Delhi was blanketed by thick fog Friday morning, reducing visibility to zero and disrupting air and train services, according to PTI. Over 100 flights at Indira Gandhi International Airport were delayed, and 26 trains were running late. The minimum temperature dropped to 6 degrees Celsius, 0.9 degrees below normal. The air quality index (AQI) was recorded as "severe" with pollutants at 408 at 9 am. On Thursday, Delhi, Gurgaon, Faridabad, Ghaziabad, and Gautam Buddh Nagar imposed a ban on construction and demolition, and restriction on the movement of BS III petrol and BS IV diesel four-wheelers after the Commission for Air Quality Management (CAQM) invoked Stage III of the Graded Response Action Plan (GRAP). At 4 pm on Thursday, Delhi's AQI was 357 in the very poor range. However, the AQI rose to 393 in the higher end of the very poor category at 9 pm on Thursday. Stage III of GRAP was imposed to prevent further deterioration in air quality. 

Market: According to the Economic Times, retail investors showed unwavering faith in mutual funds as monthly systematic investment plan (SIP) contributions reached an all-time high of ₹26,459 crore in December 2024, surpassing ₹25,320 crore recorded in November, while foreign institutional investors (FIIs) sold off Indian equities worth almost $2 billion in the first seven trading days of 2025. The markets experienced a 0.3% decline. SENSEX dropped 241 points to close at 77,378, while the NIFTY50 dropped 95 points to close at 23,431. The Indian rupee fell further compared to the US dollar breaching the 86 mark.