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Modi touts India's roaring economy as he seeks reelection, but many feel left behind

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Modi touts India's roaring economy as he seeks reelection, but many feel left behind

SAMASTIPUR, India (AP) — Narendra Modi swept to power a decade ago on promises to transform India’s economy, and it would be hard to argue he hasn’t made strides. As he seeks a third term as prime minister, the country’s economic growth is the envy of the world, its stock markets are booming, and new buildings and highways are popping up everywhere.

There are cracks in the facade, though, that his political challengers hope to benefit from, including high unemployment, persistent poverty and the sense that only a small portion of India’s 1.4 billion people has been able to cash in on the good fortune.

“You have a booming economy for people higher up on the socioeconomic ladder, but people lower down are really struggling,” said Milan Vaishnav, director of the South Asia Program at the Carnegie Endowment for International Peace.

Modi and his Bharatiya Janata Party have remained popular since he was first elected prime minister in 2014 on a strident Hindu-first platform and pledges to succeed where past governments had failed by finally transforming the economy from rural to industrial.

He promised to clamp down on deeply rooted corruption and to leverage the country’s manpower advantage to turn it into a manufacturing powerhouse. While campaigning this spring — the six-week-long election concludes Saturday — Modi has vowed to make India’s economy the world’s third-largest, trailing only those of the U.S. and China. Votes will be counted Tuesday.

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Modi has had successes. The economy is growing by 7% and more than 500 million Indians have opened bank accounts during his tenure — a big step toward formalizing an economy where many jobs are still off the books and untaxed. His administration has also poured billions of dollars into the country’s creaky infrastructure to lure investment, and notably streamlined its vast welfare program, which serves around 60% of the population and which his party is leveraging to try to win over poor and disillusioned voters.

Despite these advances, though, Modi’s economic policies have failed to generate employment that moves people from low-paying, precarious work to secure, salaried jobs. With inequality, joblessness and underemployment soaring, they’ve become central themes of the election.

Even as India’s millionaires multiply, nearly 90% of its working-age population earns less than the country’s average annual income of around $2,770, according to a World Inequality Lab study. The top 1% own more than 40% of the country’s wealth, while the bottom 50% own just above 6%, the study found.

To stem economic discontent, Modi and the BJP are hoping to win over poor and disgruntled voters with more than $400 billion in welfare subsidies and cash transfers.

At the heart of their welfare agenda is a free ration program, which serves 800 million people. It existed under the previous government and is a right under India’s National Food Security Act. But it was greatly expanded during the pandemic to provide grain for free, instead of just cheap, and then extended for another five years beginning in January.

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Through roughly 300 programs, hundreds of millions have received household goods ranging from cooking gas cylinders to free toilets. Millions of homes have been built for the poor, who now have greater access to piped water, Wi-Fi and electricity. And the government has ramped up cash transfers to farmers and other key voting blocs.

When Rajesh Prajapati lost his job at a chemical factory in Prayagraj, a city in India’s largest state, Uttar Pradesh, his family of five survived on government grain.

“For almost a year, the free ration was our only solace,” he said, adding that it was the reason they voted for Modi again.

Indian parties have always used welfare to win elections. But experts say the BJP has done it better.

Benefits such as subsidies, pensions and loans are now delivered through cash transfers directly to bank accounts linked to each individual’s biometric identity card, which the government says has helped eliminate leakages and corruption by cutting out intermediaries.

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These large-scale handouts provide relief, but some say they are only a temporary fix and a sign of rising economic distress. To reduce inequality, they should be accompanied by investment in health and education, which have stagnated in recent years, said Ashoka Mody, an economist at Princeton University.

Subsidies are helpful, “but they do not create the ability of people to put themselves on a trajectory where they and their children can look forward to a better future,” he said.

Tuntun Sada, a farmworker from Samastipur, a city in the eastern state of Bihar, said the 18 kilograms (40 pounds) of free grain that helps feed his family of six each month has only marginally improved their lives. He still earns less than $100 a month after working the fields of wealthier landowners.

“People like us don’t get very much,” Sada said. “Modi should walk the talk. If we don’t earn enough, how will we raise our children?”

The free rations don’t last through the month, piped water has yet to reach his community and there are no nearby schools for his four kids to attend. What he really needs, he said, is a better job.

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Modi’s opposition, led by the Congress party, are betting on the jobs crisis to dent the BJP’s chances of securing a majority. Before the election, a survey by the Center for Study of Developing Societies found that more than 60% of voters were worried about unemployment and believed finding a job had become tougher. Only 12% felt like economic opportunities had increased.

Official government data, which many economists question, shows the unemployment rate declining. But a recent report from the International Labor Organization found that youth unemployment in India is higher than the global average, that more than 40% of Indians still work in agriculture, and that 90% of workers are in informal employment.

The liberalizing of India’s economy in the 1990s laid the foundation for the remarkable growth since, with millions escaping poverty and spawning a middle class. But it has also allowed for the growing disparity between rich and poor, economists say.

Rahul Gandhi, the main face of the opposition, has sought to tap into the growing resentment felt by the country’s many have-nots by promising to take on the issue of wealth distribution if his alliance gains power.

Modi, who says his government has lifted 250 million Indians out of poverty, is unapologetic. In a TV interview this month, he said wealth distribution is a gradual process and dismissed criticism of the growing inequality by asking, “Should everyone be poor?”

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Both the BJP and the Congress party say they will create more employment through various sectors including construction, manufacturing and government jobs. Experts say this is crucial for reducing economic disparities, but it’s also hard to do.

Mass unemployment and underemployment have always been intractable problems in India, so parties inevitably fall back on the promises of handouts, said Mody, the Princeton economist. Case in point: The Congress party has pledged to double people’s free rations if voted into power.

“It’s completely the wrong focus… what we need is job creation,” Mody said. “And there is no one today who has an idea of how to solve that problem.”

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Pathi reported from New Delhi.

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Follow AP’s Asia-Pacific coverage at https://apnews.com/hub/asia-pacific

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Video: Deadly Storm Causes Massive Flooding Across Gaza

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Video: Deadly Storm Causes Massive Flooding Across Gaza

new video loaded: Deadly Storm Causes Massive Flooding Across Gaza

Nearly 795,000 displaced people in Gaza were at risk of dangerous floodwaters, according to the United Nations. The heavy rain and strong winds flooded makeshift shelters and collapsed several buildings, according to the Gaza Civil Defense.

By Jorge Mitssunaga, Nader Ibrahim and Saher Alghorra

December 12, 2025

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Archaeologists uncover rare fresco of Jesus in town Pope Leo XIV recently visited

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Archaeologists uncover rare fresco of Jesus in town Pope Leo XIV recently visited

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Archaeologists in Turkey have discovered a fresco of a Roman-looking Jesus as the “Good Shepherd,” which is being hailed as one of the most important finds from Anatolia’s early Christian era.

The work of art was found in August in an underground tomb near the town of Iznik, where the Nicene Creed, a foundational statement of Christian belief, was adopted in A.D. 325. The tomb itself is believed to date back to the third century, when the area was still under the Roman Empire and Christians faced persecution.

POPE LEO XIV OPENS FIRST FOREIGN TRIP IN TURKEY WITH A VISIT TO CHRISTIANITY’S EARLY HEARTLANDS

Archaeologists clean and restore frescoes inside a 3rd-century tomb where a rare early Christian depiction of Jesus as the “Good Shepherd” was discovered, in Iznik, Turkey, Friday, Dec. 12, 2025. (Khalil Hamra/AP Photo)

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The fresco shows a youthful, clean-shaven Jesus dressed in a toga and carrying a goat on his shoulders, according to The Associated Press, which was the first international media organization given access to the tomb. The outlet noted that researchers say the fresco represents one of the rare instances in Anatolia in which Jesus is portrayed with Roman attributes.

The lead archaeologist on the project believes the artwork could be the “only example of its kind in Anatolia,” the AP reported.

A fresco depicting Jesus as the “Good Shepherd” adorns the wall of a 3rd-century tomb in Hisardere, where archaeologists uncovered one of Anatolia’s best-preserved early Christian artworks, in Iznik, Turkey, Friday, Dec. 12, 2025. (Khalil Hamra/AP Phto)

POPE LEO XIV CALLS FOR ‘DIVINE GIFT OF PEACE’ IN MAIDEN VISIT TO MIDDLE EAST

Pope Leo XIV recently visited the town as part of his first overseas trip since taking the helm of the Vatican. While in Iznik, Pope Leo XIV marked the 1,700th anniversary of the Council of Nicaea, which set forth the Nicene Creed that millions of Christians still read today.

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Turkish President Recep Tayyip Erdogan (L) welcomes Pope Leo XIV (R) with an official welcoming ceremony at the Presidential Complex in Ankara, Turkiye, on Nov. 27, 2025.  (Utku Ucrak/Anadolu via Getty Images)

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Turkish President Recep Tayyip Erdoğan presented a tile painting of the “Good Shepherd” discovery to the pope, according to the AP.

While in Turkey, Pope Leo XIV was joined by Eastern and Western patriarchs and priests as they prayed that Christians would one day be united once again. They prayed together over the site where the council produced the Nicene Creed. The men recited the creed, which the pope said was “of fundamental importance in the journey that Christians are making toward full communion,” according to the AP.

The Associated Press contributed to this report.

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Three years on, former MEP Kaili remains in limbo still awaiting trial

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Three years on, former MEP Kaili remains in limbo still awaiting trial

The detention of former EU foreign policy chief Federica Mogherini earlier this month in a fraud investigation in Belgium has raised fresh questions about why suspects in the European Parliament’s corruption scandal still have not faced trial, three years after arrests that shocked Brussels.

Mogherini, who led the EU’s diplomatic service from 2014 to 2019 and then served as rector of the prestigious College of Europe, was questioned alongside two others on suspicion of alleged procurement fraud, corruption and conflict of interest related to an EU-funded diplomatic training programme.

The Italian top diplomat, who was eventually released pending charges, has since resigned from her post at the College of Europe.

Meanwhile, the protracted European Parliament corruption scandal investigation, which began with raids across Brussels on 9 December 2022, has moved at a glacial pace.

Greek MEP Eva Kaili became the face of the scandal when Belgian police revealed it had discovered €150,000 in cash — purportedly in large bags — at her Brussels residence during the raids.

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Since then, Kaili has spent the intervening years in a legal purgatory, or what some have since dubbed “Belgiangate”.

Brussels rocked by Parliament sting

Authorities said they discovered a total of €1.5 million in cash during the 2022 sting, including €600,000 at the home of former Italian MEP Antonio Panzeri and the money found at the Brussels residence of Kaili, who was also serving as one of 14 vice presidents of the European Parliament at the time.

Kaili’s father Alexandros was apprehended at the Sofitel hotel at Place Jourdan with a suitcase containing “several hundred thousand euros,” according to authorities.

A special police team accompanied by investigating judge Michel Claise then raided Kaili’s home that evening, arresting her in front of her two-year-old daughter.

Stripped of her parliamentary immunity, Kaili spent four months in pre-trial detention followed by house arrest with an electronic bracelet until May 2023, all while maintaining her innocence in what prosecutors allege was a scheme by three non-EU countries to buy influence in the European Parliament.

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She remains charged with participation in a criminal organisation, corruption and money laundering.

The 47-year-old former MEP has consistently denied all charges. Her partner Francesco Giorgi, a parliamentary assistant and former aide to Panzeri, admitted accepting bribes but alleged Kaili was not directly involved in the corruption scheme. He is the father of Kaili’s daughter.

Byzantine court drama

The case centres on allegations that Qatar, Morocco and Mauritania sought to influence European Parliament decisions through bribes paid to MEPs and staff. Authorities say the scheme aimed to kill off parliamentary resolutions condemning Qatar’s human rights record and secure visa liberalisation for Qatari citizens. Both Qatar and Morocco deny the allegations.

Panzeri struck a deal with prosecutors in January 2023 to become a cooperating witness in exchange for a reduced sentence. Under the agreement, he committed to revealing “the identity of the persons he admits to having bribed.”

Defence lawyers have challenged Panzeri’s credibility and the methods used to secure his confession.

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The case took another hit after Claise, the investigating judge who ordered Kaili’s arrest, was forced to recuse himself in June 2023 after it emerged his son was a business partner of Belgian MEP Marie Arena’s son — Arena herself later charged in the scandal.

Defence lawyers claim Claise knew about these connections and should have recused himself earlier, and that he protected Arena by delaying her indictment.

Marie Arena was charged only in January with participation in a criminal organisation but not with corruption or money laundering. Police found €280,000 in cash at her son’s home, according to Belgian media reports.

Another significant development came in September 2024 when a Brussels judge ordered Committee R, an independent body overseeing Belgian intelligence, to review the legality of “specific and exceptional methods” used by Belgian secret service VSSE in the investigation.

“It’s a very important and extraordinary decision that the appeal court made,” Kaili’s lawyer Sven Mary told Euronews at the time, adding that the finding could open a “new Pandora’s box” about the role Belgian intelligence played.

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The Committee had issued an opinion in January confirming that the VSSE acted within the law. However, defence lawyers pointed out that Belgium’s penal code was not amended to criminalise foreign interference until April 2024 — a year and a half after the raids. At the time of the original investigation, only military espionage qualified as a prosecutable offence of interference.

Kaili has also challenged other parts of the investigation, arguing that Belgian authorities subjected her to “medieval” conditions during detention.

Her lawyers claimed she was held in solitary confinement for three days in January 2023 without adequate blankets, with lights on continuously, which they described as “torture”. Belgian prosecutors disputed these claims.

Case known as Belgiangate?

The procedural challenges facing the investigation are substantial. Defence lawyers have questioned the case on multiple fronts, including how Kaili’s immunity was lifted, the role of Belgian intelligence services, and the credibility of key witness Antonio Panzeri.

A crucial dispute centres on whether investigators artificially created a flagrant delicto situation. When Kaili’s father was arrested carrying a suitcase of cash on 9 December 2022, Judge Claise used this to justify an immediate search of Kaili’s home.

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Defence lawyers argue immunity can only be lifted when someone is caught in the act, and that investigators manufactured these conditions specifically to bypass her parliamentary protections.

Questions about Panzeri’s reliability intensified after Giorgi secretly recorded an investigator saying, “Panzeri is lying.”

The recording, revealed by Belgian outlet La Libre, is said to have captured the investigator repeatedly questioning the credibility of the man Belgian authorities consider the scheme’s mastermind.

Prosecutors want the recording excluded, citing “unclear” circumstances. Defence lawyers insist it proves Panzeri’s cooperation agreement was granted too hastily and should have required court approval.

In September 2024, Kaili and Giorgi filed a defamation complaint against Panzeri with prosecutors in Milan.

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In July of this year, Kaili won a legal victory when the EU’s General Court ruled that the European Parliament had wrongly denied her access to documents about her alleged mismanagement of parliamentary assistant allowances, part of an EPPO claim.

All still in limbo

The case has expanded significantly since the initial arrests. In March, prosecutors requested that parliamentary immunity be waived for Italian S&D MEPs Elisabetta Gualmini and Alessandra Moretti.

In total, at least 10 people now face charges, including former MEPs Panzeri, Cozzolino and Marc Tarabella, as well as lobbyist Niccolò Figà-Talamanca and Luca Visentini, general secretary of the International Trade Union Confederation.

The Brussels Chamber of Indictment only began reviewing the legality of the investigation this week, with hearings involving more than 20 parties to the case.

Kaili, who did not seek re-election in 2024, now lives in Italy and Greece, where authorities froze her assets shortly after her arrest, while it remains unlikely a trial will begin before late 2026 at the earliest.

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