World

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

Published

7 months ago

May 31, 2024

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

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World

Saudi executions rose sharply in 2024

Published

25 minutes ago

December 26, 2024

Press Room

Saudi Arabia executed 330 people this year, the highest number in decades, despite de facto ruler Mohammed bin Salman’s 2022 assertion that the death penalty had been eliminated except for murder cases under his vision for a new open kingdom.

World

Israel launches strikes in Yemen on Houthi military targets, IDF says

Published

1 hour ago

December 26, 2024

Press Room

Israel launches strikes in Yemen on Houthi military targets, IDF says

The Israeli military claimed responsibility for a series of airstrikes in Yemen on Thursday that hit Sana’a International Airport and other targets in the Houthi-controlled capital.

The Israel Defense Forces said the strikes targeted military infrastructure used by the Houthis to conduct acts of terrorism.

“The Houthi terrorist regime has repeatedly attacked the State of Israel and its citizens, including in UAV and surface-to-surface missile attacks on Israeli territory,” the IDF said in a statement.

“The targets that were struck by the IDF include military infrastructure used by the Houthi terrorist regime for its military activities in both the Sana’a International Airport and the Hezyaz and Ras Kanatib power stations. In addition, the IDF struck military infrastructure in the Al-Hudaydah, Salif, and Ras Kanatib ports on the western coast.”

PROJECTILE FROM YEMEN STRIKES NEAR TEL AVIV, INJURING MORE THAN A DOZEN: OFFICIALS

Black smoke rises near Sana’a International Airport in Yemen after reported Israeli airstrikes. (Reuters)

The strikes come days after Israel’s defense minister promised retaliation against Houthi leaders for missile strikes launched at Israel from Yemen.

Houthi rebels, who control most of northern Yemen, have fired upon Israel for more than a year to support Hamas terrorists at war with the Jewish State. The Houthis have attempted to enforce an embargo on Israel by launching missiles and drones at cargo vessels crossing the Red Sea – a major shipping lane for international trade.

US NAVY SHIPS REPEL ATTACK FROM HOUTHIS IN GULF OF ADEN

This photo released by the European Union’s Operation Aspides naval force shows the oil tanker Sounion burning in the Red Sea following a series of attacks by Yemen’s Houthi rebels, on Saturday Sept. 14, 2024. (European Union’s Operation Aspides via AP)

Overall, the Houthis have launched over 200 missiles and 170 drones at Israel since Hamas’s Oct. 7, 2023, massacre of 1,200 people. Since then, the Houthis have also attacked more than six dozen commercial vessels – particularly in the Bab-el-Mandeb, the southern maritime gateway to Egypt’s Suez Canal.

On Saturday, a projectile launched into Israel from Yemen struck Tel Aviv and caused mild injuries to 16 people, Israeli officials said. The incident was a rare occasion where Israeli defense systems failed to intercept an attack.

NETANYAHU WARNS HOUTHIS AMID CALLS FOR ISREAL TO WIPE OUT TERROR LEADERSHIP AS IT DID WITH NASRALLAH, SINWAR

Israeli Defense Minister Israel Katz looks on, amid the ongoing conflict in Gaza between Israel and Hamas, in Jerusalem, November 7, 2024. (REUTERS/Ronen Zvulun)

Israel retaliated by striking multiple targets in areas of Yemen under Houthi control, including power plants in Sana’a.

Israeli leaders have vowed to eliminate Houthi leadership if the missile and drone attacks do not cease.

On Monday, Israeli Defense Minister Israel Katz said, “We will strike their strategic infrastructure and decapitate their leaders. Just as we did to [former Hamas chief Ismail] Haniyeh, Sinwar and Nasrallah, in Tehran, Gaza and Lebanon – we will do in Hodeidah and Sanaa.”

Prime Minister Benjamin Netanyahu has also urged Israelis to be “patient” and suggested that soon the military will ramp up its campaign against the Houthis.

“We will take forceful, determined and sophisticated action. Even if it takes time, the result will be the same,” he said. “Just as we have acted forcefully against the terror arms of Iran’s axis of evil, so too will we act against the Houthis.”

Fox News Digital’s Amelie Botbol contributed to this report.

Chris Pandolfo is a breaking news reporter for Fox News Digital. Send tips to chris.pandolfo@fox.com and follow him on Twitter @ChrisCPandolfo.

World

Retraction of US-backed Gaza famine report draws anger, scrutiny

Published

2 hours ago

December 26, 2024

Press Room

Retraction of US-backed Gaza famine report draws anger, scrutiny

United States President Joe Biden’s administration is facing criticism after a US-backed report on famine in the Gaza Strip was retracted this week, drawing accusations of political interference and pro-Israel bias.

The report by the Famine Early Warning Systems Network (FEWS NET), which provides information about global food insecurity, had warned that a “famine scenario” was unfolding in northern Gaza during Israel’s war on the territory.

A note on the FEWS NET website, viewed by Al Jazeera on Thursday, said the group’s “December 23 Alert is under further review and is expected to be re-released with updated data and analysis in January”.

The Associated Press news agency, quoting unnamed American officials, said the US asked for the report to be retracted. FEWS NET is funded by the US Agency for International Development (USAID).

USAID did not immediately respond to Al Jazeera’s request for comment on Thursday afternoon.

Israel’s war in Gaza has killed more than 45,300 Palestinians since early October 2023 and plunged the coastal enclave into a dire humanitarian crisis as access to food, water, medicine and other supplies is severely curtailed.

An Israeli military offensive in the northern part of the territory has drawn particular concern in recent months with experts warning in November of a “strong likelihood” that famine was imminent in the area.

“Starvation, malnutrition, and excess mortality due to malnutrition and disease, are rapidly increasing” in northern Gaza, the Integrated Food Security Phase Classification said in an alert on November 8.

“Famine thresholds may have already been crossed or else will be in the near future,” it said.

The report

The FEWS NET report dated December 23 noted that Israel has maintained a “near-total blockade of humanitarian and commercial food supplies to besieged areas” of northern Gaza for nearly 80 days.

That includes the Jabalia, Beit Lahiya and Beit Hanoon areas, where rights groups have estimated thousands of Palestinians are trapped.

“Based on the collapse of the food system and worsening access to water, sanitation, and health services in these areas … it is highly likely that the food consumption and acute malnutrition thresholds for Famine (IPC Phase 5) have now been surpassed in North Gaza Governorate,” the FEWS NET report had said.

The network added that without a change to Israeli policy on food supplies entering the area, it expected that two to 15 people would die per day from January to March at least, which would surpass the “famine threshold”.

The report had spurred public criticism from the US ambassador to Israel, Jack Lew, who in a statement on Tuesday said FEWS NET had relied on “outdated and inaccurate” data.

Lew disputed the number of civilians believed to be living in northern Gaza, saying the civilian population was “in the range of 7,000-15,000, not 65,000-75,000 which is the basis of this report”.

“At a time when inaccurate information is causing confusion and accusations, it is irresponsible to issue a report like this,” he said.

pic.twitter.com/f9rxgHdVPm
— Ambassador Jack Lew (@USAmbIsrael) December 24, 2024

‘Bullying’

But Palestinian rights advocates condemned the ambassador’s remarks. Some accused Lew of appearing to welcome the forced displacement of Palestinians in Gaza.

“To reject a report on starvation in northern Gaza by appearing to boast about the fact that it has been successfully ethnically cleansed of its native population is just the latest example of Biden administration officials supporting, enabling and excusing Israel’s clear and open campaign of genocide in Gaza,” the Council on American-Islamic Relations said in a statement.

The group urged FEWS NET “not to submit to the bullying of genocide supporters”.

Huwaida Arraf, a prominent Palestinian American human rights lawyer, also criticised Lew for “relying on Israeli sources instead of your own experts”.

“Do you work for Israel or the American people, the overwhelming majority of whom disapprove of US support for this genocide?” she wrote on X.

Polls over the past year have shown a high percentage of Americans are opposed to Israel’s offensive in Gaza and want an end to the war.

A March survey by Gallup found that 55 percent of people in the US disapproved of Israel’s actions in Gaza while a more recent poll by the Pew Research Center, released in October, suggested about three in 10 Americans believed Israel’s military offensive is “going too far”.

While the Biden administration has said it is pushing for a ceasefire in Gaza, it has rebuffed calls to condition US assistance to Israel as a way to bring the war to an end.

Washington gives its ally at least $3.8bn in military assistance annually, and researchers at Brown University recently estimated that the Biden administration provided an additional $17.9bn to Israel since the start of the Gaza war.

The US is required under its own laws to suspend military assistance to a country if that country restricts the delivery of American-backed humanitarian aid, but Biden’s administration has so far refused to apply that rule to Israel.

“We, at this time, have not made an assessment that the Israelis are in violation of US law,” Department of State spokesperson Vedant Patel told reporters in November despite the reports of “imminent” famine in northern Gaza.