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In a significant <keyword id="20359239" type="General" weightage="20" keywordseo="political-development" source="keywords">political development</keyword>, <keyword id="19969165" type="General" weightage="20" keywordseo="Atishi" source="keywords">Atishi</keyword> is poised to become the next Chief Minister of Delhi, following the resignation of Arvind Kejriwal. The <keyword id="19935664" type="General" weightage="20" keywordseo="Aam-Aadmi-Party" source="keywords" meta.keywordsubtype="org" meta.entityname="Aam Aadmi Party" meta.hostid="261" meta.entityid="Aam Aadmi Party">Aam Aadmi Party</keyword> (AAP) convened a legislative meeting earlier today, where all MLAs unanimously accepted Kejriwal's proposal to nominate Atishi for the top post. <h2>Who is Atishi?</h2>Atishi Marlena, widely known as Atishi, is a prominent figure within the AAP and currently holds multiple key portfolios in the <keyword id="19925995" type="General" weightage="20" keywordseo="Delhi-government" source="keywords">Delhi government</keyword>. A Rhodes scholar, she has long been a key architect of AAP’s <keyword id="20374249" type="General" weightage="20" keywordseo="education-reforms" source="keywords">education reforms</keyword> in Delhi, which transformed the public schooling system and gained national attention. Her work has earned her recognition as a progressive leader committed to enhancing education, governance, and <keyword id="20228723" type="General" weightage="20" keywordseo="public-welfare" source="keywords">public welfare</keyword>. Atishi has served as a Delhi MLA, representing the Kalkaji constituency, and has been an essential part of the Kejriwal-led government. She took on many responsibilities when Kejriwal was jailed in connection with the excise policy case, and her reputation for efficiency and dedication helped solidify her as a strong contender for the chief ministerial position. <div type="Article" hostid="261" msid="113312516" title="Supreme Court grants bail to Chief Minister Arvind Kejriwal in Liquor scam case" mstype="2" mssubtype="0"></div><h2>Kejriwal’s resignation and resultant suspense</h2>The sequence of events leading to Atishi's ascension began with Arvind Kejriwal's sudden announcement that he would resign as Delhi’s Chief Minister. On September 13, 2024, Kejriwal was released from Tihar Jail, where he was lodged for his alleged involvement in the Delhi liquor policy scam. Following his release, Kejriwal took to the public platform to declare that he would step down, pending a “certificate of honesty” from the people of Delhi. In a political gambit that stunned many, Kejriwal pushed for advancing the polls to November 2024, ahead of the originally scheduled February 2025 elections. His rationale was that only a fresh mandate from the people, whom he asked to consider his honesty as the deciding factor, would validate his return to power. Until then, he vowed not to reassume the office of Chief Minister. "I didn't resign (after arrest in excise policy case) because I respect democracy and the Constitution is supreme for me," Kejriwal had said earlier. <div type="Article" hostid="261" msid="113364559" title="Delhi CM Arvind Kejriwal announces resignation, demands Delhi elections in November" mstype="2" mssubtype="0"></div>Kejriwal’s resignation prompted a flurry of activity within AAP, as speculation mounted about who would succeed him. The party’s Political Affairs Committee (PAC) and other senior leaders, including Manish Sisodia, Saurabh Bharadwaj, and Gopal Rai, held several rounds of discussions. Names floated for the role included Atishi, Gopal Rai, Kailash Gahlot, Saurabh Bharadwaj, and even Kejriwal’s wife, Sunita Kejriwal. Some sources hinted that a surprise candidate from a minority community could also emerge. However, Atishi was always seen as the frontrunner. She holds a majority of the key portfolios in the Delhi government and was handpicked by Kejriwal to unfurl the national flag on August 15 while he was in jail — a symbolic gesture that hinted at her growing political stature within the party. <h2>Atishi’s nomination and the path ahead</h2>The AAP legislative meeting, held at Kejriwal’s residence earlier today, saw Atishi’s nomination as the new Chief Minister of Delhi. The decision was unanimously accepted by all AAP MLAs, with Kejriwal personally proposing her name. Once Kejriwal officially tenders his resignation later today, Atishi will likely meet Lieutenant Governor VK Saxena to stake her claim for the CM’s office. It is expected that Atishi will not take the oath of office immediately, as the process involves proving majority on the floor of the Delhi Assembly and appointing a new council of ministers. Sources suggest that the swearing-in ceremony may take place closer to the next Assembly session. Atishi’s rise to the Chief Ministerial post comes at a time of political turbulence for AAP. Kejriwal’s resignation, driven by his desire to restore his public image following his incarceration, has put the party in a precarious position. The opposition <keyword id="14666" type="General" weightage="20" keywordseo="bjp" source="Orion">BJP</keyword> has termed Kejriwal’s resignation a "PR stunt" aimed at deflecting attention from the corruption charges. Atishi, with her track record of governance and public service, represents a fresh face for AAP, one that can potentially rejuvenate the party’s image. She will need to navigate a host of challenges, including the corruption allegations surrounding Kejriwal and the upcoming elections. Whether she will be able to maintain the party’s grip on Delhi or lead it to a new electoral victory remains to be seen. (With inputs from agencies)

Atishi set to become Delhi's new Chief Minister as Arvind Kejriwal steps down months before the assembly elections

The State Bank of India (<keyword id="19898108" type="General" weightage="20" keywordseo="sbi" source="keywords">SBI</keyword>) in its latest report has asked for <keyword id="20213295" type="General" weightage="20" keywordseo="tax-reforms" source="keywords">tax reforms</keyword> after concerns were flagged over the recent decline in <keyword id="20202062" type="General" weightage="100" keywordseo="bank-deposits" source="keywords">bank deposits</keyword>. The report says tax Reforms for Deposits can accentuate the banking system's stability and resilience to the next level. SBI attributed the fall in deposits to the varied rates of return offered by different <keyword id="20139443" type="General" weightage="20" keywordseo="investment-options" source="keywords">investment options</keyword> for similar time frames and different tax rates on <keyword id="22837794" type="General" weightage="20" keywordseo="returns-on-deposits" source="keywords">returns on deposits</keyword>. The <keyword id="20352499" type="General" weightage="20" keywordseo="SBI-report" source="keywords">SBI report</keyword> said that "<keyword id="20658792" type="General" weightage="20" keywordseo="tax-treatment" source="keywords">Tax treatment</keyword> of bank and non-bank channels are non-uniform, even as bank deposits have a wider and denser pass-through effect across the populace sensitivity of Deposits on Tax is as much as 7 per cent" The report noted that a bank deposit of Rs 10 lac in a Savings Bank (SB) account at an investment return of 3 per cent would generate Rs 30,000 in returns and after accounting for taxes and exemptions, the <keyword id="22837795" type="General" weightage="20" keywordseo="net-return" source="keywords">net return</keyword> would be Rs 16,000. The report adds that the net returns vary significantly if deposits are made in different instruments like <keyword id="21041176" type="General" weightage="20" keywordseo="term-deposits" source="keywords">term deposits</keyword>, short and long-term investments in debt funds, liquid funds or bonds. The tax rates on these deposits also favour saving banks or term deposits. The report illustrates a term deposit of up to one year with the same principal amount of Rs 10 lac at a yield of 6.25 per cent would result in a net return of Rs 50,000 after taxes. But for term deposits exceeding one year the interest rate is higher and with an interest rate of 7.25 per cent, the gross return would be Rs 72,500. After taxes, the net return would be Rs 58,000. The data highlights that similar type of investments for the same period generates significantly different returns because of different tax treatment by the government. Similar variations are observed in other <keyword id="20105084" type="General" weightage="20" keywordseo="investment-plans" source="keywords">investment plans</keyword> as well. For instance, investments in equity and mutual funds with a 2 per cent dividend income of Rs 10,00,000 generate Rs 20,000, which after taxes the net return is Rs 16,000. However, Short-term investments of less than one year in equity and mutual funds, offering an 11 per cent return generate Rs 1,10,000, with a net return of Rs 88,000 after taxes. This investment if made in Long-term investments of more than one year the return increases to 15% on Rs 10,00,000 and generates Rs 1,50,000 annually. With a lower tax bracket of 12.5 per cent tax on long-term investments and applicable exemptions, the net return is Rs 1,43,750. These variations in returns across different deposits and investment options highlight the complexity and thus investors are choosing the higher return options over the bank deposits which in turn poses a threat to the deposit growth in the banking sector.

Decline in bank deposits because of non-uniform tax treatment on various investment options: SBI report

<ul class="summary-list"><li>The US government won a major Big Tech antitrust battle this week, against <a target="_blank" class="" href="https://www.businessinsider.com/google">Google</a>.</li><li>Washington has several more legal fights brewing against other tech companies.</li></ul>This week's ruling that <a target="_blank" href="https://www.businessinsider.com/google-violated-antitrust-law-to-keep-search-monopoly-judge-rules-2024-8">Google is an illegal monopolist</a> is a major victory for the yearslong movement to rein in the giant tech platforms.It's also one of the only victories that movement has had.And, tellingly, it didn't come as a result of new law, but from a judge's decision.Because in the US, that's how we're doing things these days: Congress can't or won't act. So, people who want Big Tech companies to change their ways are trying to do it via the courts.A very brief history lesson: <a target="_blank" href="https://en.wikipedia.org/wiki/Communications_Decency_Act">The last piece of meaningful legislation that regulated tech is from 1996</a>, when the internet was a novelty. Since then, Silicon Valley grew pretty much unchecked, and despite some murmurs that maybe someone should do … something about the power the biggest Big Tech companies had accumulated.But after Donald Trump's 2016 election, those concerns turned into a full-blown movement, with all kinds of lawmakers promising real reform.And since then … very little has happened. With two exceptions — the 2018 <a target="_blank" href="https://en.wikipedia.org/wiki/FOSTA-SESTA">FOSTA and SESTA</a> acts, aimed at sex trafficking on the internet, and <a target="_blank" href="https://www.businessinsider.com/tiktok-ban-passes-house-bytedance-2024-4">this year's bill forcing TikTok to find a US owner or leave the country</a> — Congress hasn't passed any laws that would meaningfully restrain Big Tech companies.<a target="_blank" href="https://thehill.com/policy/technology/3900219-david-cicilline-led-the-fight-against-big-tech-heres-what-comes-next/">You can debate why that happened</a> — Partisan gridlock? Well-funded pushback from the targeted companies? The fact that most Americans really like individual Big Tech companies? — but the result is still zero.Instead, it looks like any real reform we see from Big Tech will come from a courtroom via challenges launched by the federal government. This week's Google ruling came out of a lawsuit first filed by Donald Trump's Department of Justice; the Trump era Federal Trade Commission also filed a suit against <a target="_blank" class="" href="https://www.businessinsider.com/meta">Meta</a>. And Joe Biden's administration has brought charges against Amazon and Apple, along with a separate case against Google. It also refiled the Trump-era Meta case after a court turned the first attempt away.And Biden's administration has used the courts in another way, too: It has either sued or threatened to sue to stop a whole series of big tech acquisitions. <a target="_blank" href="https://nymag.com/intelligencer/2023/12/lina-khans-rough-year-running-the-federal-trade-commission.html">The track record for the suits it has brought hasn't been very good</a>, but the threat of litigation has, at a minimum, slowed down big tech M&amp;A significantly.Will any of that mean anything, long-term? We have no idea. The lawsuits in progress could take years to resolve. Appeals like the one the company promises to bring against this week's decision will extend the timeline even further.It's worth remembering that the last time the government used the courts to try to curtail Big Tech — <a target="_blank" href="https://en.wikipedia.org/wiki/United_States_v._Microsoft_Corp.">in 1998 when it went after Microsoft for monopolizing internet access</a> — a federal court declared that Microsoft should be broken up. But Microsoft successfully appealed that ruling and ended up in <a target="_blank" href="https://scholar.google.com/scholar_case?case=14986020318509032386&amp;q=373+F.3d+1199&amp;hl=en&amp;as_sdt=6,39">a settlement that ultimately took effect in 2004</a>. You may have noticed that Microsoft remains incredibly powerful today.The flip side: At least some former Microsoft executives will tell you that the government's legal case slowed the company down significantly, even if the company stayed intact. They argue that the legal proceedings and everything around them made Microsoft more timid and less able to adapt to shifts like the move from PCs to mobile.So if you think Big Tech is So Big That Something Must Be Done, taking those companies to court is anything but a sure thing. But in the US, it appears to be the only thing.

Big Tech reform is coming from the courts, not Congress. Is that good?

The pre-budget <keyword id="20613906" type="General" weightage="20" keywordseo="Economic-Survey" source="keywords" meta.keywordsubtype="org" meta.entityname="Economic Survey" meta.hostid="261" meta.entityid="Economic Survey">Economic Survey</keyword> on Monday called for urgent reforms in India's <keyword id="19915424" type="General" weightage="20" keywordseo="agricultural-sector" source="keywords">agricultural sector</keyword>, warning that the structural issues could impede the country's overall <keyword id="19900794" type="General" weightage="20" keywordseo="economic-growth" source="keywords">economic growth</keyword> trajectory. The survey, tabled in Parliament by Finance Minister <keyword id="19916618" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="keywords">Nirmala Sitharaman</keyword>, highlighted the untapped potential of the <keyword id="20682012" type="General" weightage="20" keywordseo="Indian-agriculture" source="keywords">Indian agriculture</keyword> sector compared to other economies. Chief Economic Advisor V Anantha Nageswaran called for a pan-India dialogue on the agriculture sector. The survey, presented ahead of the annual budget, emphasised that India has yet to fully leverage its agricultural sector for economic growth and job creation, unlike East Asian economies and Western developed nations. "Indian agriculture is not in a crisis now but requires a serious <keyword id="20544318" type="General" weightage="20" keywordseo="structural-transformation" source="keywords">structural transformation</keyword> because climate change and water criticality loom large in the times to come," the survey stated. The CEA advocated for a reassessment of existing policies, despite current government subsidies and support measures for farmers. "The payoff will be immense if we untie the knots that bedevil farm sector policies," Nageswaran said in the survey's preface. While the government provides substantial support to farmers through subsidies on water, electricity, and fertilizers, along with income tax exemptions and minimum support prices, there is room for improvement in policy implementation, he added. The survey identified several key challenges, including balancing growth with food inflation management, improving price discovery, and addressing land fragmentation. To address these challenges, the survey recommends multi-pronged reforms, which include: upgrading agricultural technology, enhancing marketing avenues, adopting farming innovations, reducing input wastage, and improving the agriculture-industry linkages. The document stressed the need to shift focus from basic <keyword id="19992806" type="General" weightage="20" keywordseo="food-security" source="keywords">food security</keyword> to nutritional security, aligning with a 'demand-driven food system' that is both nutritious and environmentally sustainable. The survey suggested that policymakers must strike a delicate balance between incentivizing farmers to increase production and keeping food prices within acceptable limits. "This dual objective requires careful policy interventions." The survey also emphasized the need for a farmer-friendly policy framework to ensure markets function in farmers' interests. It recommended avoiding bans on futures or options markets at the first sign of price spikes; invoking bans only under exceptional circumstances; re-examining the inflation-targeting framework; increasing the total net irrigated area, and aligning farming practices with <keyword id="22505922" type="General" weightage="20" keywordseo="climate-considerations" source="keywords">climate considerations</keyword>. Looking ahead to 2047, the survey highlighted the potential of agriculture and allied sectors (horticulture, livestock, fisheries, dairy, and food processing) for sustained <keyword id="20268655" type="General" weightage="20" keywordseo="employment-generation" source="keywords">employment generation</keyword>. "To sustain growth for nearly a generation up to 2047 or more and to ensure that it makes people's lives better and fulfills their aspirations, bottom-up reforms are necessary," it noted. It suggested that India may need to reconsider the traditional development model of transitioning from agriculture to industry and services.

Economic Survey calls for urgent agricultural reforms; cites growth hurdles

Joe Biden pitches Supreme Court reform in the wake of scandals

<ul class="summary-list"><li>House Speaker Mike Johnson criticized Biden's Supreme Court reform proposal as 'dead on arrival.'</li><li>Biden's plan includes term limits, a binding code of conduct, and no immunity for ex-presidents.</li></ul>Joe Biden's pitch to reform the Supreme Court is off to a rough start.House Speaker Mike Johnson has already sworn to fight the <a target="_blank" class="" href="https://www.businessinsider.com/biden-aims-rein-in-supreme-court-saying-its-gone-rogue-2024-7#:~:text=Biden%20has%20proposed%20a%20radical,a%20conservative%2Dleaning%20court%20composition.">Biden administration's proposal to rein in the Supreme Court</a>, calling it "dead on arrival."President Joe Biden's proposal, announced in a <a target="_blank" class="" href="https://www.whitehouse.gov/briefing-room/statements-releases/2024/07/29/fact-sheet-president-biden-announces-bold-plan-to-reform-the-supreme-court-and-ensure-no-president-is-above-the-law/">White House press release</a> on Monday, calls on Congress to make three major changes to the high court: setting up 18-year term limits for all justices of the court, a binding code of conduct for those justices, and approving a constitutional amendment that explicitly says former presidents aren't immune from prosecution for crimes committed while in office.Citing "<a target="_blank" class="" href="https://www.businessinsider.com/all-the-ethics-questions-hanging-over-the-supreme-court-2023-5">recent ethics scandals</a>" among the court's justices and the court's recent decisions overturning "long-established legal precedents protecting fundamental rights," Biden wrote that these reforms are necessary to "restore trust and accountability" in both the President and the Supreme Court.The Court has been a source of frustration for Democrats, with the conservative-led court handing former President Donald Trump and his allies victory after victory — culminating in a decision that ruled sitting presidents are granted presumptive immunity from prosecution.That ruling snarled the various criminal cases against Trump, who was convicted of fraud in New York and faces allegations of mishandling classified documents and conspiring to overturn the 2020 election.The Supreme Court's two arch-conservative justices, Clarence Thomas and Samuel Alito, have also been tied up in scandals. Thomas took lavish gifts and vacations from a GOP mega-donor without disclosing them and his wife communicated to Trump aides before the Capitol riot. Meanwhile, a flag bearing symbols linked to pro-Trump movements flew over Alito's house around the time of the riot; he's since blamed his wife. Despite the push from Biden for changes to the court, Johnson threw cold water on the idea immediately."President Biden's proposal to radically overhaul the U.S. Supreme Court would tilt the balance of power and erode not only the rule of law, but the American people's faith in our system of justice," <a target="_blank" class="" href="https://x.com/SpeakerJohnson/status/1817938406049296725">Johnson wrote on X</a> on Monday.He continued: "It is telling that Democrats want to change the system that has guided our nation since its founding simply because they disagree with some of the Court's recent decisions. This dangerous gambit of the Biden-Harris Administration is dead on arrival in the House."<h2 id="d2e246d1-a45e-45f6-bb30-a719be625766">Amendment on presidential immunity</h2>Biden's plan includes adding a "No One is Above the Law" amendment to the Constitution, which would dictate that no president has "immunity from federal criminal indictment, trial, conviction, or sentencing by virtue of previously serving as President," according to the press release.But amending the constitution isn't easy; it's only been done 27 times, the last time of which was in 1992.There are a few <a target="_blank" class="" href="https://www.whitehouse.gov/about-the-white-house/our-government/the-constitution/#:~:text=The%20founders%20also%20specified%20a,making%20amendments%20is%20quite%20onerous.">ways to propose a change to the constitution</a> that the Founding Fathers outlined. The first requires two-thirds support from members of both the House and Senate — a feat that would be near impossible to accomplish with Republicans controlling the House.The GOP has largely supported the Supreme Court's conservative majority, and has rebuked Democrats' attempts to limit its power.The second option requires two-thirds of state legislatures to call a convention to propose a change to the constitution.And that's just to get the amendment proposed — in order to get it ratified, three-fourths of state legislatures must support the amendment.This would also be a tough task with 23 states controlled by Republican trifectas (meaning the GOP runs both state legislatures and the governor's office) and 10 states having divided governments; only 17 states are controlled by Democratic trifectas, <a target="_blank" class="" href="https://ballotpedia.org/State_government_trifectas">according to Ballotpedia</a>.<h2 id="43d2ba31-3402-49c8-9577-c9bf341d2138">Term limits and a new code of conduct</h2>Biden's plan for the Supreme Court includes term limits that would mean a new justice was chosen every two years. In an op-ed for The Washington Post, Biden wrote that, "Term limits would help ensure that the court's membership changes with some regularity. That would make timing for court nominations more predictable and less arbitrary. It would reduce the chance that any single presidency radically alters the makeup of the court for generations to come."Biden also argued in The Post that "the court's current voluntary ethics code is weak and self-enforced," and that a binding, enforceable code of conduct should require justices "to disclose gifts, refrain from public political activity and recuse themselves from cases in which they or their spouses have financial or other conflicts of interest."The <a target="_blank" class="" href="https://www.businessinsider.com/supreme-court-ethics-rules-missing-word-should-shall-2023-11">court's current ethics code</a>, implemented in November, is not binding and does not contain any enforcement mechanism.Proposing both term limits and a stricter ethics code for justices would require the Republican-controlled House to not only allow a floor vote on the issue, but also to then pass it. Even if the House approved the bill, Republicans in the Senate could filibuster the bill, stopping it in its tracks.Democrats would need to throw out the filibuster — something they already lack the votes to do — to even bring the legislation to a vote.With powerful Republicans like Johnson already pushing back, getting all three of Biden's proposals implemented in the Supreme Court looks like a losing battle. But Biden's plan has already gotten support from Vice President and presumptive nominee Kamala Harris, all but guaranteeing that Democrats will use it on the campaign trail as a way to contrast against Trump.

Biden's plan to reform the Supreme Court is already 'dead on arrival' 

As the <keyword id="19938590" type="General" weightage="100" keywordseo="NDA" source="keywords">NDA</keyword> is all set to form the government, <keyword id="19949381" type="General" weightage="20" keywordseo="Fitch-Ratings" source="keywords">Fitch Ratings</keyword> on Thursday said <keyword id="21935526" type="General" weightage="20" keywordseo="coalition-politics" source="keywords">coalition politics</keyword> and a <keyword id="21957811" type="General" weightage="20" keywordseo="weakened-mandate" source="Orion">weakened mandate</keyword> could make it challenging to pass legislations on ambitious reforms. "We believe major reforms to land and labour laws will remain on the new government's agenda as it seeks to enhance India's manufacturing sector, but these have long been contentious and the NDA's weaker mandate will complicate their passage further. This could reduce the potential upside to India's medium-term growth prospects," <keyword id="19950093" type="General" weightage="20" keywordseo="fitch" source="keywords">Fitch</keyword> said in a statement. The <keyword id="19894848" type="General" weightage="20" keywordseo="bjp" source="keywords">BJP</keyword> fell short of a single-party majority in the 543-seat lower house of parliament for the first time since its latest period in government that began in 2014. But Fitch expects it to secure enough support from allied parties in the National Democratic Alliance (NDA) to form a government with Narendra Modi remaining Prime Minister. The outcome should support broad policy continuity, with the government continuing to prioritise infrastructure capex, improvements to the business environment, and gradual fiscal consolidation, Fitch Ratings said. "However, coalition politics and a weakened mandate could make it challenging to pass legislation on the more ambitious parts of the <keyword id="21957445" type="General" weightage="20" keywordseo="government-reform" source="keywords">government reform</keyword> agenda," it said in a detailed note post the Lok Sabha election results which were announced late on Tuesday. The NDA appears set to retain power with a narrower majority after India's recent election, following a weaker performance by its dominant member, the Bharatiya Janata Party (BJP). "We do not think that the government's losses at the ballot box will lead to substantial policy adjustments, but the post-election budget in July should provide greater clarity on its economic reform priorities and fiscal plans over the coming five years," Fitch said. It said implementation of <keyword id="20404815" type="General" weightage="20" keywordseo="economic-reforms" source="keywords">economic reforms</keyword> during the first two NDA terms was mixed, but some positive measures were passed including the Goods and Services Tax (GST) law and Bankruptcy Code in 2016. The government also increased public infrastructure investment significantly, helping to put India among the fastest-growing major economies in recent years, with real GDP growth reaching 8.2 per cent in the fiscal year ending March 2024 (FY24). Fitch expects growth to remain rapid at 7 per cent in current fiscal (April-March). "We expect India's medium-term growth performance to remain around our trend estimate of 6.2 per cent through FY28, despite the government's slimmer majority. The continued public capex drive to address infrastructure gaps, ongoing digitalisation efforts, and improved bank and corporate balance sheets - relative to the pre-pandemic situation - should facilitate a strong outlook for private investment," Fitch said. The rating agency expects the Production-Linked Incentives (PLI) scheme to remain intact, which will help attract FDI in target sectors, such as electronics. However, private investment has not yet accelerated meaningfully, which represents a risk for the outlook. Fitch believe land and labours laws reforms will continue to advance at the state level in some parts of the country. There is also some potential for judicial reforms that would look to lower costs and speed resolution of court cases. Weaker fiscal metrics relative to peers are a significant constraint for India's sovereign rating, which we affirmed at 'BBB-' with a Stable Outlook in January 2024. "The next government's ability to address high fiscal deficits and reduce debt will be important considerations for the rating in the next few years. "Sustained deficit reduction, particularly if underpinned by durable revenue-raising reforms, would be positive for India's sovereign rating fundamentals over the medium term," Fitch added. The government has improved its record on achieving deficit targets and has advanced fiscal consolidation gradually over the past few years. We expect this focus on gradual consolidation to broadly be sustained. The FY24 budget deficit came in at 5.6 per cent of GDP, below the revised budget estimate of 5.8 per cent (which matched Fitch's estimate). Fitch expects the 5.1 per cent deficit target for FY25 to be attained, and said government's goal of reducing the deficit to 4.5 per cent of GDP in FY26 appears increasingly achievable, although the election marginally increased risks of higher spending or slippage in capex to accommodate greater social spending.

Coalition politics, weakened mandate could make passing legislations on ambitious reforms challenging: Fitch

<ul class="summary-list"><li>America is facing a labor shortage problem as the population declines and more boomers retire.</li><li>Research Affiliates CIO Chris Brightman believes immigration reform is needed to boost the economy.</li></ul>Immigration is a hot political topic right now. But to one chief investment officer, immigration policy isn't a matter of political debate — it's an economic nonnegotiable.Chris Brightman, CEO and chief investment officer of the $147 billion investment manager Research Affiliates, believes immigration reform is long overdue — and billions of dollars are at stake if no action is taken.With an aging population and declining birthrate posing a significant economic risk in coming years, the US must take the necessary steps to boost immigration and economic productivity, Brightman wrote in a research note.<h2 id="d07da37b-d90a-4ec0-8bc0-42e235085dac">The depopulation issue</h2>Declining birth rates are causing a drag on many of the world's biggest economies, and the US is no exception.Fertility rates in the US are hovering around 1.6 children per woman, well below the replacement rate of 2.1, which means that natural US population growth is stagnating.According to Brightman, this is a big threat to US economic health. A declining population brings with it a declining labor force. With few workers and an increasingly aging population, programs like Social Security and Medicare become strained.Government initiatives to boost declining fertility rates aren't the answer, Brightman argues. Financial incentives in Japan, Korea, and Taiwan haven't raised fertility rates. Benefits offered by European countries such as paid parental leave and subsidized childcare have also failed to raise fertility rates.As seen in the graph below, US population growth is projected to trend negative in the coming years without additional inflows from immigration.<div type="image" title="Immigration rejuvenates population growth." height="691" width="942" msid="113937812" hostid="261" sizebytes="26162"></div><h2 id="cd3554fc-a73c-4f34-879d-067f5184864e">More immigration is the answer</h2>Brightman points out that immigrants have a long track record of driving productivity and innovation in the US economy. Immigrants have won 40% of all Nobel Prizes awarded to Americans since 2000 and originated a disproportionate number of US patents. Over half of US unicorns, or startups valued at over $1 billion, are founded by immigrants.Beyond these accomplishments, immigrants are necessary to bolster the <a target="_blank" class="" href="https://www.businessinsider.com/labor-market-indicators-jobs-pre-pandemic-levels-healthy-goldman-sachs-2024-10">US labor market</a>. As <a target="_blank" class="" href="https://www.businessinsider.com/best-retirement-cities-buy-home-baby-boomers-florida-north-carolina-2024-10">baby boomers enter retirement</a>, they're leaving behind unfilled job openings — a trend that began in 2010 and has only continued to worsen. There are currently more job openings than unemployed workers.<div type="image" title="More unfilled jobs than employed workers" height="631" width="942" msid="113937813" hostid="261" sizebytes="22280"></div>With a declining population growth rate and an increase of workers aging out of the workforce, increased skilled immigration is the ideal solution to prevent economic decline, in Brightman's view.<h2 id="24a88d05-7dcb-4bb3-b7a2-af31cfd4efd1">Immigration policy solutions</h2>Brightman sees the need for more friendly immigration policies such as providing permanent residency to immigrants who graduate from US universities.Admitting more computer scientists, engineers, doctors, accountants, educators, and other skilled professionals would greatly help the US labor shortage. Brightman highlights that the economy especially needs more healthcare workers and skilled tradespeople.Countries like Canada, New Zealand, and Australia use a point system with selection criteria such as education, professional skills, and language. Brightman believes the US can emulate this immigration model.One popular reform proposed by policymakers is to exempt immigrants with advanced STEM degrees from statutory limits on the number of green cards granted per year. According to an analysis by the Penn Wharton Budget Model (PWBM), such a proposal would boost the US population by 825,000 in the next 10 years and by over 2.5 million in the next 20 years.This proposal will not only fill gaps in the labor market but also significantly reduce the federal deficit in the next two decades, according to PWBM.An increased number of immigrants leads to increased tax revenues. PWBM estimates that if green card limits were lifted for immigrants with STEM degrees, the US government would see an extra $133 billion in revenues with only a $4 billion increase in outlays for a net deficit reduction of $129 billion.The effect would be even more dramatic by 2044, with $708 billion in tax revenue and $74 billion in outlays for a $634 billion reduction in the deficit.Immigration has a reputation for being a polarizing topic, but Brightman sees such a proposal as a necessary policy that'll tackle one of the biggest challenges facing the US economy.

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