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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.
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
PHILADELPHIA (AP) — Philadelphia Phillies third baseman Alec Bohm has sued his parents for millions of dollars, accusing them of siphoning large amounts of his money into financial accounts they managed for him and then using some of the cash to pay their own expenses.
Bohm’s lawsuit, filed Wednesday in a Philadelphia court, comes after he began to review his personal and financial affairs in recent months, and said that his parents refused to give him access to the accounts or provide him with the information he sought about them.
They sought to “freeze” him out of four accounts — established as limited liability companies — and he now believes they “converted a sizeable amount” of his money from those accounts “to their own use,” the lawsuit said.
By the time he sought the information, his parents had already transferred millions of dollars from his personal accounts to the accounts they controlled, the lawsuit said.
Bohm’s parents, Daniel and Lisa Bohm, denied doing anything wrong and, through their lawyer, said they are “deeply saddened by the allegations” and will aggressively defend themselves. Alec Bohm has had full access to the accounts and his parents are paying his expenses on their personal credit cards, their lawyer, Robert Eckard, said in a statement.
“Mr. and Mrs. Bohm love their son very much and have always acted in his best interests, both personally and professionally, and still do so to this day,” Eckard said.
After Thursday’s 2026 season opening game, Bohm declined comment to reporters, saying “I’m not going to address any personal matters right now.”
Both parties say the first of the accounts was opened in 2019. His parents told him that they assigned themselves a 10% stake, strictly for administration purposes, and that Bohm was the “true” owner of all of the LLC’s assets, Bohm’s lawsuit said.
The accounts had various purposes, such as investing in securities or buying real estate. Bohm’s lawsuit also said they used money from The Alec Bohm Foundation to pay their expenses.
Bohm’s lawsuit asks his parents to pay at least $3 million in damages, hand over control of the accounts and hire an accountant to track every dollar they transferred from Bohm’s personal accounts to the accounts they controlled.
Bohm, 29, has a $10.2 million contract with the Phillies for the 2026 baseball season. The lawsuit said his parents live in a recreational vehicle and travel the country.
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Secretary of State Marco Rubio arrived in France on Friday to attend the G7 foreign ministers meeting where he will deliver a clear message on U.S. priorities for the ongoing war with Iran.
In the days leading up to the meeting, other members have taken markedly different approaches to the war. Nearly all of Washington’s partners — Britain, Canada, France, Germany, Italy and Japan — have reacted cautiously to the U.S.-Israeli military campaign and declined to participate in offensive operations, even as they condemn Iranian actions.
Before departing on Thursday, Rubio signaled a defiant approach to the talks: “I don’t work for France or Germany or Japan… the people I’m interested in making happy are the people of the United States. I work for them,” he said in a video posted on X.
The divergence has drawn frustration from President Donald Trump, who has pressed allies to contribute more, particularly in securing key maritime routes such as the Strait of Hormuz. While some countries have signaled a willingness to support defensive or maritime security efforts, they have stopped short of joining direct military strikes.
TRUMP PRESSES NATO PARTNERS ON SUPPORT AS HEGSETH BLASTS HESITATION
“The U.S. is constantly asked to help in wars and we have. But when we had a need, it didn’t get positive responses from NATO. A couple leaders said that Iran was not Europe’s war. Well, Ukraine isn’t our war, yet we’ve contributed more to that fight than anyone,” Rubio added.
“The Strait of Hormuz could be open tomorrow if Iran stops threatening global shipping, which is an outrage and a violation of international law. For all these countries that care about international law, they should be doing something about it,” he said before boarding his plane to France.
The remarks set the tone for a summit already marked by growing friction between Washington and some of its closest allies over how to handle the Iran conflict. Rubio has framed the stakes in stark terms. “Iran has been at war with the United States for 47 years… Iran has been killing Americans and attacking Americans across this planet,” he said during a White House cabinet meeting, adding that allowing Tehran to obtain nuclear weapons would be “an unacceptable risk for the world.”
But even before Rubio arrived at the meeting, European officials were signaling a markedly different approach.
“We need to exit from the war, not escalate this further, because the consequences for everybody around the world are quite severe,” Vice President of the European Commission Kaja Kallas said during a briefing on the sidelines of the G7 on Thursday.
JACK KEANE CALLS OUT NATO’S WEAKNESS AS SHIPPING CRISIS GRIPS STRAIT OF HORMUZ
(L/R, clockwise) French President Emmanuel Macron, European Commission President Ursula Von der Leyen, NATO Secretary General Mark Rutte, Japanese Prime Minister Shigeru Ishiba, German Chancellor Friedrich Merz, US Secretary of Treasury Scott Bessent, Canadian Prime Minister Mark Carney, Ukrainian President Volodymyr Zelenskyy, British Prime Minister Keir Starmer, and Italian Prime Minister Giorgia Meloni meet during the Group of Seven (G7) Summit at the Pomeroy Kananaskis Mountain Lodge in Kananaskis, Alberta, Canada on June 17, 2025 (LUDOVIC MARIN/AFP via Getty Images)
“It can only be a diplomatic solution… sit down and negotiate to have a way out,” she added.
The contrast between Rubio’s framing and Kallas’s message captures the core tension shaping the meeting.
U.S. officials say Rubio is heading into the talks with a broader agenda that goes beyond Iran.
According to a State Department spokesperson, who spoke to Fox News Digital on background, Rubio will use the meeting to “advance key U.S. interests” and push discussions on the wars in Ukraine and the Middle East, as well as “international burden sharing” and the overall effectiveness of the G7.
The U.S. is also expected to emphasize maritime security, including freedom of navigation in the Strait of Hormuz and the Red Sea, while urging allies to take on a greater share of responsibilities in conflict zones and international organizations, the spokesperson said.
RUBIO, RATCLIFFE TO DELIVER CLASSIFIED IRAN BRIEFING TO ‘GANG OF EIGHT’ AHEAD OF TRUMP’S STATE OF THE UNION
U.S. Secretary of State Marco Rubio speaks to reporters before boarding a plane as he is headed to France where he will take part in the G7 foreign ministers’ meeting, at Joint Base Andrews in Maryland, U.S., March 26, 2026. (Brendan Smialowski/Pool via Reuters)
European officials have instead emphasized the broader risks of the conflict.
France’s foreign minister, Jean-Noël Barrot, said discussions at the G7 would build on a recent joint statement condemning Iran’s actions while also addressing maritime security concerns.
He said the “discussions will provide an opportunity to revisit positions already agreed at the G7 level… including the unjustifiable attacks carried out by Iran against Gulf countries… which we condemned in the strongest possible terms.”
Barrot added that ministers would also focus on securing global shipping routes.
A satellite image shows the Strait of Hormuz, a key maritime passage connecting the Persian Gulf to the Gulf of Oman, vital for global energy supply. (Amanda Macias/Fox News Digital)
“We will also have the opportunity to address maritime security and freedom of navigation… including an international mission… to ensure the smooth flow of maritime traffic in a strictly defensive posture, thereby helping to ease pressure on energy prices,” he said.
Kallas echoed that global framing. “All the countries in the world are one way or another affected by this war… it is in the interest of everybody that this war stops,” she said.
IRAN SIGNALS NUCLEAR PROGRESS IN GENEVA AS TRUMP CALLS FOR FULL DISMANTLEMENT
Kaja Kallas, High Representative of the European Union (EU) for Foreign Affairs and Security Policy speaks to the press during EU Summit in Brussels, Belgium on Dec. 19, 2024. (Photo by Nicolas Landemard/Anadolu via Getty Images)
Her remarks also pointed to the interconnected nature of the crisis. “Russia is helping Iran with intelligence… and also supporting Iran now with drones,” she said, linking the Iran conflict to the war in Ukraine.
That uncertainty is already affecting the structure of the summit, with officials dropping plans for a unified final communiqué to avoid exposing divisions, Reuters reported.
Analysts say those differences reflect deeper structural tensions in the alliance. “Europe has criticized Donald Trump’s ‘maximum pressure’ strategy towards Iran while pursuing a failed diplomatic approach that has enabled the regime to expand its terrorist networks and edge closer to nuclear threshold status,” Barak Seener, senior research fellow at the Henry Jackson Society, told Fox News Digital.
“This reflects a lack of European capability to project power in the region, particularly in safeguarding the Strait of Hormuz.”
FILE PHOTO: Cargo ships in the Gulf, near the Strait of Hormuz, as seen from northern Ras al-Khaimah, near the border with Oman’s Musandam governance, amid the U.S.-Israeli conflict with Iran, in United Arab Emirates, March 11, 2026. (REUTERS/Stringer/File Photo/File Photo)
Seener added that years of reliance on Washington have left Europe increasingly exposed as the U.S. shifts its strategic priorities. “Years of underinvestment in defense and reliance on the United States have created a dependency that Washington increasingly views as a betrayal of the peace it has guaranteed Europe since the Second World War,” he said.
“With the U.S. placing greater value on its relationship with Israel than NATO, the result may be further erosion of the alliance, reduced support for Ukraine and rising economic pressure on Europe.”
He warned that the immediate test will come at the G7 itself. “Divisions over how to respond to Iran and to any U.S. request for support are likely to expose a deeper transatlantic split,” Seener said.
“Operation Epic Fury has showcased President Trump’s ability to assemble a coalition of allies to eliminate a common threat — in this case the Iranian regime — and stabilize international trade,” Jacob Olidort, chief research officer and director of American security at the America First Policy Institute, told Fox News Digital.
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A satellite view shows the Strait of Hormuz, a key global energy chokepoint connecting the Persian Gulf to the Gulf of Oman, on Oct. 2, 2024. (Gallo Images/Orbital Horizon/Copernicus Sentinel Data via Getty Images)
“The failure of Western Europe to participate in securing the Strait of Hormuz is particularly egregious because those countries depend on it more than we do,” he added.
“At the same time, the historic successes of Operation Epic Fury have awakened a new confidence in our Middle East partners to eradicate the threats from the Iranian regime and to work together to shape a more peaceful and prosperous region.”
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On today’s show:
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Top story: G7 Summit debrief with Méabh Mc Mahon and Maia de la Baume.
Explainer by Jakub Janas: What’s the point of the G7 meeting?
Iran war update with Méabh Mc Mahon and Babak Kamiar.
Interview with Ghassan Salamé, Lebanese Culture Minister.
Interview with Valérie Hayer, Member of the European Parliament (Renew Europe, France).
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