World
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.
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.
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.
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.
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?”
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
Tehran holds back from talks to cement ceasefire due to ongoing Israeli attacks on southern Lebanon.
Published On 19 Jun 2026
Planned talks in Switzerland between the United States and Iran to discuss the technical terms of their ceasefire deal have been postponed.
The Swiss Foreign Ministry confirmed early on Friday that the talks, which were scheduled to take place in Burgenstock, would now not go ahead.
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Reports suggest that Iran has delayed sending its delegation to discuss the technical issues linked to the ceasefire deal – digitally signed by the two countries on Wednesday – due to Israel’s ongoing military campaign in Lebanon.
Israeli strikes overnight and into Friday have reportedly killed at least 16 people in southern Lebanon, with Iran-linked Hezbollah reporting intense fighting.
Talks postponed
A ceremony followed by talks was expected to be held at the Burgenstock Resort in Stansstad, near Lucerne in central Switzerland.
It is owned by Katara Hospitality, part of Qatar’s sovereign wealth fund, which helped mediate peace in the conflict.
On Friday, in a message to media outlet AFP, the Swiss foreign ministry said: “The planned talks between the US, Iran, Qatar and Pakistan have been postponed”.
“Switzerland remains ready to facilitate these talks. The relevant preparatory work at Burgenstock is continuing,” it added, without providing a new date for the talks.
The announcement followed a report from media outlet Al-Mayadeen that Iran was delaying sending its delegation to Switzerland over Israel’s ongoing military campaign in Lebanon.
Israeli Prime Minister Benjamin Netanyahu said Thursday that Israel’s military will stay in a “security zone” of southern Lebanon as long as “Israel’s security needs require it.”
Israel and Hezbollah are not parties to the agreement, but Iran has insisted Israel must withdraw from the large swath of southern Lebanon it is occupying.
Logistics have never been ‘simple or predictable’
The US push to quickly begin high-stakes talks with Iran hit a snag just two days after the signing of a 14-point memorandum of understanding with the US that sets out a framework for talks during a 60-day negotiation period.
Vice President JD Vance had been prepared to make an overnight flight to meet with his Iranian counterparts at the mountainside resort in the tiny Swiss village of Obburgen.
His staff and a small pack of journalists had even gathered at Joint Base Andrews outside Washington in anticipation of the trip.
Meanwhile, dozens of White House officials, advance staffers and more media gathered in Switzerland to prepare for Vance’s anticipated arrival.
But then, abruptly on Thursday evening, the trip was called off.
The White House issued a statement explaining Vance – who has been tapped by President Donald Trump to lead the negotiations – and his delegation were prepared for talks, but they were unable to finalise plans and the vice president would remain in Washington.
“The logistics of these negotiations have never been simple or predictable,” the statement noted.
Also on Thursday, Pakistan’s Prime Minister Shehbaz Sharif cancelled his trip to Switzerland, his spokesperson told AFP.
new video loaded: A Small Election Could Change British Politics
transcript
transcript
A Small Election Could Change British Politics
Voters in the northern English district of Makerfield cast ballots on Thursday to choose their representative in Parliament, the outcome of which could lead to Prime Minister Keir Starmer’s ouster.
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Well, I don’t think there should be a leadership election. I think that the last government proved that parties that spend their whole time in leadership elections don’t go on to win the next general election.
By Alisa Shodiyev Kaff
June 18, 2026
World
From bear hugs to handshakes: How India lost its edge with Trump while Pakistan quietly gained ground
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This week, President Donald Trump and Indian Prime Minister Narendra Modi came face-to-face at the G7 summit in France, their first such encounter since February 2025. Rather than his trademark bear hug, Modi greeted Trump with a smile and handshake.
Then on Wednesday, the two held a bilateral meeting. It was a friendly chat, but one that came against a backdrop of compounding tensions.
As India works at restoring its relationship with Washington, its arch-foe Pakistan has expanded its own diplomatic profile, complicating India’s campaign against its nuclear-armed rival.
COMMERCE SECRETARY HOWARD LUTNICK MAKES QUIET TRIP TO INDIA DAYS AFTER TARIFF SETBACK
President Donald Trump looks at Pakistan’s Prime Minister Shehbaz Sharif speaking following the official signing of the first phase of the Gaza ceasefire agreement between Israel and Hamas. Shariff announced his intention to nominate Trump for the Noble Peace Prize for a second time. (Evelyn Hockstein / Reuters)
For years, India built an international case against Pakistan, projecting it as an isolated or destabilizing state. This hardline stance appeared to be working, with Modi declaring to Pakistan, “India has been successful in isolating you, and we will intensify those efforts.”
But a decade later, Pakistan is rapidly emerging as a key global player in the region and beyond.
While Modi initially tried to engage Pakistan, his government’s approach eventually hardened around the mantra that “terror and talks cannot coexist.”
In Washington, India has typically been favored, with Presidents Trump, Biden, Obama and George W. Bush all making visits during their time in office.
President Donald Trump (R) shakes hands with Indian Prime Minister Narendra Modi during a bilateral meeting at the G7 Summit on June 17, 2026 in Evian-les-Bains, France. (Anna Moneymaker/Getty Images)
Modi built a rapport with Trump during his first term in office and was one of the first world leaders invited to the White House after Trump’s inauguration. But over the past year, that relationship has come under strain as Islamabad quietly clawed its way back to credibility.
“India misjudged Trump in term two, banking on once friendly relations,” Sid Dubey, a visiting professor at Bennett University in India, told Fox News Digital. “They have yet to start recovering from that.”
PRESIDENT TRUMP, INDIA’S MODI TO TACKLE TRADE, TARIFF TENSIONS AT HIGH-STAKES MEETING
U.S. President Donald Trump and Indian Prime Minister Narendra Modi wave to the crowd at Sardar Patel Stadium in Ahmedabad, India, Monday, Feb. 24, 2020. India poured on the pageantry with a joyful, colorful welcome for President Donald Trump on Monday that kicked off a whirlwind 36-hour visit meant to reaffirm U.S.-India ties while providing enviable overseas imagery for a president in a re-election year. (AP Photo/Aijaz Rahi)
The shift first became apparent in May 2025, when President Trump announced he had secured a ceasefire between nuclear-armed India and Pakistan. The fighting had come over India-administered Kashmir and was the worst in decades.
Islamabad promptly praised Trump for ending the deadly dispute and even nominated him for a Nobel Peace Prize. New Delhi, however, rejected the claim, insisting the ceasefire was the result of direct bilateral talks with Pakistan.
The response reflected India’s long-standing sensitivity to third-party involvement in what it fiercely maintains is a bilateral dispute.
In the months that followed, frictions only deepened.
FILE — In this Jan. 11, 2013 file photo, a Pakistani Ranger in black uniform and his Indian counterpart march during a flag-off ceremony, at the joint Pakistan-India border check post of Wagah near Lahore, Pakistan. (AP Photo/K.M. Chaudary, File)
President Trump hit India with some of the steepest tariffs imposed on any major economy. Meanwhile, U.S. sanctions pressure on Russian oil rattled energy import-dependent India, while disputes over H-1B visas added further strain. Analysts say Trump’s America First agenda increasingly overshadowed the friendship Modi had cultivated during Trump’s first term.
“When Trump unfortunately said the May 2025 clash ended because of him personally, that upset India a lot, and they made that known,” Dubey said. “Then the tariffs were another slap in India’s face. Meanwhile, Pakistan took advantage, leaving India at a bit of a loss. From there, relations fell further with the Iran conflict.”
India is among the countries most indirectly affected by the strategic fallout from the Iran war, facing economic pressure and mounting energy concerns.
IRAN WAR FUELS ASIA ENERGY CRUNCH AS INDIA, JAPAN, OTHERS FEEL STRAIN
Iranian Parliament Speaker Mohammad Bagher Ghalibaf meets with chief of Defence Forces of Pakistan, Field Marshal Asim Munir, in Tehran, Iran, May 23, 2026. (Iranian Parliament Speaker Office/WANA (West Asia News Agency)/Handout via Reuters)
Last week, a U.S. strike further exacerbated tensions after three Indian seafarers became collateral damage in the conflict. They were the first and only seafarers confirmed killed as part of the U.S. blockade, sparking outrage across India.
New Delhi instantly summoned Washington’s Chargé d’Affaires Jason Meeks, expressing deep concern over the renewed attacks and arguing that its nationals were becoming casualties in a war not their own.
India also warned of the broader humanitarian, economic, and energy consequences of the conflict, which are expected to linger even as an agreement has now been reached.
U.S. Vice President JD Vance, center, walks with Pakistan’s Chief of Defence Forces and Chief of Army Staff Field Marshall Asim Munir, left, and Pakistani Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar after arriving for talks with Iranian officials in Islamabad, Pakistan, Saturday, April 11, 2026. (Jacquelyn Martin/Pool via AP Photo)
All the while, Pakistan was gaining diplomatic visibility, finding itself in the unusual position of currying favor in Washington while maintaining deep ties with China, Iran and the Gulf states.
Pakistan’s prominent role in recent months highlighted how Islamabad has been more nimble in its diplomacy than India,” Council on Foreign Relations Senior Fellow Sadanand Dhume told Fox News Digital. “Additionally, Pakistan decisively outmaneuvered India’s quixotic bid to isolate Pakistan on the world stage.”
Regional dynamics have also been reshaped by the two rivals’ competing strategies. India has deepened its strategic partnership with the U.S. through alliances such as the Quad partnership with the U.S., Australia, and Japan and has expanded cooperation across South Asian states, including a burgeoning relationship with Afghanistan. Meanwhile, Pakistan’s growing regional relevance has been reflected in its strengthened ties with China, improved relations with regional partners like Bangladesh and expanded security cooperation with Gulf states.
RUBIO VISIT TO INDIA PUSHES DEEPER ENERGY TIES AS IRAN CONFLICT RATTLES GLOBAL OIL MARKETS
Additionally, Trump, who accused Pakistan of “deceit and lies” during his first term, has since repeatedly praised its leadership. In June 2025, the president invited Pakistan’s army chief Asim Munir to the White House for a high-profile lunch meeting.
Munir was the first Pakistani military chief who was not also president to be hosted by a U.S. president. He also led the war effort against India earlier that year.
In this photo released by the Inter Services Public Relations, Pakistan’s Chief of Defense Forces and Army Chief Gen. Asim Munir, center, Pakistan Naval Chief Admiral Naveed Ashraf, left, and Pakistan Air Force Chief Air Chief Marshal Zaheer Ahmed Babar attend a guard of honor ceremony at the joint military command headquarters in Rawalpindi, Pakistan, Monday, Dec. 8, 2025. (Inter Services Public Relations via AP)
Trump described Munir as his “favorite Field Marshal” and an “exceptional human being.”
Their relationship has been further reflected in trade deals and, most recently, Pakistan’s role as a principal mediator in restoring diplomacy between the U.S. and Iran.
“India tried to make Pakistan an international pariah. Instead, Pakistan has wormed its way into Trump’s good books through a combination of concrete co-operation with the U.S. and outrageous flattery of the president, leading to Trump elevating Field Marshal Asim Munir and Prime Minister Shehbaz Sharif as heroes,” Dhume said.
India, meanwhile, has maintained close ties with Israel while generally sticking to more measured messaging.
TRUMP’S FAVORITE FIELD MARSHAL: WHO IS PAKISTAN’S POWERFUL ARMY CHIEF ASIM MUNIR WITH DEEP INTEL TIES
On June 15, upon the agreement of a deal with Iran, Modi released a statement, saying, “India hopes that the implementation of this understanding will help restore peace and stability in the region and ensure the freedom of navigation and commerce.”
“Hats off to Pakistan. They worked really hard to bring this awfully disruptive war with Iran to an end,” Dubey told Fox. “India unfortunately lost out by not seeking to be a problem solver like Pakistan. It could have played its cards better as a peacemaker, given its traditionally strong relations with Tehran.”
Still, analysts caution these are rapidly evolving dynamics. There is no guarantee that Pakistan’s current moment will last, and the tide for India could still turn.
“Pakistan’s mediation role has allowed it to substantially reset its international image. It has positioned itself as a responsible international actor rather than a rogue state responsible for both nuclear proliferation and exporting Islamic terrorism. How long this lasts depends in large measure on two things: will Pakistan find a way to remain in Trump’s good books, and will it be able to change its behavior sufficiently to convince the world that it has indeed turned over a new leaf,” Dhume told Fox News Digital.
Meanwhile, India is working to regain its position and show the U.S. it is still a reliable partner.
Marco Rubio visited India last month, his first since becoming Trump’s top diplomat last year, which was widely seen as an attempt to reset ties.
Secretary of State Marco Rubio speaks as President Donald Trump looks on during a cabinet meeting in the Cabinet Room of the White House in Washington, DC, on April 30, 2025. (JIM WATSON/AFP via Getty Images)
Trump and Modi’s G7 meeting marked another significant step.
Trump praised Modi as “calm, cool and totally killer” and said he would be traveling to India “sometime in the future.” India has been pressing Trump for a visit, potentially as part of a broader meeting involving Japan and Australia.
Trump also said the United States would defend India.
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“If anybody attacks that man, we’re going to be there,” Trump said, referring to Modi. “Now, if there’s a new leader, I’m not sure about it.”
The Pakistani and Indian governments did not respond to Fox News Digital requests for comment.
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