Nandamuri Balakrishna ‘Overjoyed’ After Receiving Padma Bhushan

 Nandamuri Balakrishna ‘Overjoyed’ After Receiving Padma Bhushan

Veteran Telugu actor and Hindupur MLA Nandamuri Balakrishna was presented India’s third-highest civilian honour, the Padma Bhushan, by President Droupadi Murmu at Rashtrapati Bhavan on Monday. The ceremony recognized his five decades of contributions to Indian cinema and public service. (Nandamuri Balakrishna 'Overjoyed' After Receiving Padma Bhushan, Nandamuri Balakrishna reacts to getting Padma Bhushan award ...)

Speaking to ANI afterward, Balakrishna said, “I am overjoyed. I am thankful to my fans. I also thank the Government of India.” He went on to note the scope of his support network—“I have 4,500 registered fans from Andhra Pradesh, Telangana, Karnataka, Maharashtra, Odisha and beyond”—and expressed heartfelt gratitude to each one. (Nandamuri Balakrishna reacts to getting Padma Bhushan award ..., What Is Nandamuri Balakrishna's First Comment After Padma ...)

Reflecting on the timing of the award, Balakrishna remarked that while many felt he merited the Padma honour earlier, “the timing is right because I’ve delivered four hit films, it’s been 15 years since I became Chairman of the Basavatarakam Indo-American Cancer Hospital, and I have completed 50 years as an actor.” (Nandamuri Balakrishna reacts to getting Padma Bhushan award ..., Padma Bhushan Award: Balakrishna Expresses Gratitude)

Alongside Balakrishna, the 2025 Padma Bhushan list included Tamil star Ajith Kumar, acclaimed filmmaker Shekhar Kapur, and playback singers Arijit Singh and Jaspinder Narula, underscoring the award’s recognition of diverse artistic achievements. (Nandamuri Balakrishna reacts to getting Padma Bhushan award ...)

On the work front, Balakrishna was last seen in the action drama Daaku Maharaj and is slated to reprise his dual roles in Boyapati Srinu’s forthcoming Akhanda sequel, continuing a career marked by both box-office success and community service. (Nandamuri Balakrishna reacts to getting Padma Bhushan award ...)

Meet The CEO Managing A $30 Billion Empire Alone With Only 30 Workers And No HR

 Pavel Durov: The Man Behind Telegram’s Lean and Powerful Operation

New Delhi: Pavel Durov, the 39-year-old founder and CEO of Telegram, runs his $30 billion enterprise with an astonishingly small team of just 30 employees—without even a formal human resources (HR) department. While this may seem unusual for a tech giant serving nearly a billion users, Durov has embraced a highly unconventional approach to managing his business. As the company’s self-proclaimed “only product manager,” he personally oversees operations and takes on recruitment duties, hiring top engineers through coding contests.

Meet The CEO Managing A $30 Billion Empire Alone With Only 30 Workers And No HR

A Remarkable Business Model Highlighted

This unique aspect of Telegram’s structure was recently brought into the spotlight by prominent Indian businessman Harsh Goenka, known for his social media commentary. In a post shared on X (formerly Twitter), Goenka marveled at the efficiency of Telegram’s model, writing, “Telegram, led by recently arrested founder Pavel Durov, has ~1B users, market cap $30bn, no ads, only 30 employees, and no HR (Durov runs the show solo, recruiting top talent through contests). Talk about lean!”

Despite its massive scale, with over 900 million users worldwide, Telegram’s staff size is minimal compared to other major tech companies. This has contributed to its reputation for being nimble and focused. The platform, founded in 2013 by Durov and his brother Nikolai, has become synonymous with privacy and flexibility. Telegram stands out not only for its robust encryption features but also for its ability to host large groups and sync seamlessly across multiple devices.

Pavel Durov: A Revolutionary Leader in Tech

Durov’s journey to becoming one of the tech world’s most enigmatic figures began in the former Soviet Union. A graduate of St. Petersburg University, he first gained recognition as the co-founder of VKontakte (VK), a social media platform that became widely popular in Russia. However, in 2014, Durov’s refusal to comply with Russian government requests for user data led to his forced departure from the country. Reflecting on this experience in a 2024 interview, he noted, “It was painful because my first company was my baby. But I realized that I would rather be free than take orders from anyone.”

X Open 🔗 Link

Now a billionaire with citizenship in France, the UAE, and Russia, Durov has turned Telegram into a global success. His strict focus on user privacy has helped the app stand out among its competitors, including WhatsApp. Today, Telegram is known not just as a messaging platform but as a symbol of freedom from intrusive governments and companies alike.

The Arrest and Ongoing Investigation

In recent months, Durov’s name has surfaced in headlines for more troubling reasons. On August 24, 2024, he was arrested at Le Bourget Airport near Paris by French authorities. This arrest is linked to a police investigation into allegations that Telegram has allowed criminal activity to occur unchecked on its platform. The investigation centers on the app’s lack of moderation and its limited cooperation with law enforcement agencies.

Sources familiar with the case, as cited by Reuters, suggest that the French authorities are concerned about Telegram’s failure to curb illicit activities, including its use by criminal groups. Despite the legal challenges, Durov has not commented publicly on the situation, though clips from his interview with Trucker Coulson following the arrest have garnered widespread attention.

The Future of Telegram Under Scrutiny

As the investigation continues, questions arise about Telegram’s future and how it will navigate the growing pressures from governments to regulate content on its platform. Telegram's focus on user privacy has won it legions of loyal followers, but it may also place the company at odds with legal systems worldwide. Whether Durov's unorthodox leadership style will help Telegram weather these challenges remains to be seen.

However, what’s clear is that Durov’s vision for Telegram has always been one of freedom—freedom from surveillance, freedom from ads, and freedom from bloated corporate structures. His minimalist approach to running a $30 billion company with just 30 employees might be a rare phenomenon in the tech world, but it speaks to his singular focus on independence and privacy, qualities that continue to define both the man and the app he created.

Giorgia Meloni sends birthday greetings to PM Modi

 In a display of diplomatic warmth and personal charm, Italian Prime Minister Giorgia Meloni sent heartfelt birthday wishes to her Indian counterpart, Prime Minister Narendra Modi, with a message that was as much about friendship as it was about future possibilities.

Giorgia Meloni sends birthday greetings to PM Modi

Taking to the social platform X, Meloni penned, "Happy birthday to the Prime Minister of India, Narendra Modi." But it wasn't just a simple greeting. With her signature optimism, she added a note of hope, underscoring the growing bond between Italy and India: "I am sure that together, we will continue to deepen our friendship and cooperation, and face the global challenges ahead."

Credit: X

Meloni’s message came as Modi, born on September 17, 1950, in the small town of Mehsana, Gujarat, celebrated his remarkable journey from modest beginnings to becoming one of the most influential leaders on the global stage. The subtext of Meloni’s note? A belief that, with their nations working hand in hand, the future holds limitless possibilities. It’s a message of camaraderie wrapped in ambition, pointing to a dynamic partnership that promises to shine even brighter in the coming years.

RazorPay, PayPal, and other low-value transactions might be subject to 18% GST, according to the GST Council. This is what it will do to you.

 In the upcoming GST Council meeting scheduled for September 9th, a significant change may be introduced that could impact how small-value transactions are handled in India. The council is expected to deliberate on whether to impose an 18% Goods and Services Tax (GST) on payment aggregators (PAs), such as Razorpay, Stripe, PayU, Pine Labs, and others. These aggregators facilitate online payments made via debit and credit cards, and the proposed tax would apply specifically to transactions valued at Rs 2,000 or less. Until now, payment aggregators have enjoyed an exemption from GST on these small transactions. This article breaks down what the potential change means and how it could affect consumers and businesses alike.

RazorPay, PayPal, and other low-value transactions might be subject to 18% GST, according to the GST Council. This is what it will do to you.

The Proposed Change

The fitment committee, which consists of revenue officials from both central and state governments, is currently reviewing the possibility of implementing an 18% GST on PAs. The rationale behind this proposal is that payment aggregators are seen as intermediaries facilitating card-based transactions rather than being equivalent to banks. As a result, officials believe they should be brought under the GST regime. 

If the proposal is approved during the 54th GST Council meeting, consumers can expect their transactions made through credit or debit cards to become more expensive when processed by PAs. Currently, payment aggregators are exempt from paying GST on any transaction below Rs 2,000, but this exemption would no longer apply under the new rules.

What are Payment Aggregators (PAs)?

Payment aggregators act as third-party service providers that enable businesses to collect payments from customers through various methods, including UPI, credit, and debit cards. They serve as intermediaries, ensuring that transactions are completed securely and efficiently. Customers benefit from the flexibility to choose different payment options, while businesses gain the ability to track and manage transactions, refunds, and fund collections. In exchange for these services, PAs charge businesses a payment gateway fee, which typically ranges from 0.5% to 2% of each transaction.

Historical Context: The Push for Digital Payments

Following India's demonetization in 2016, when Rs 500 and Rs 1,000 currency notes were withdrawn from circulation, the government temporarily removed taxes on transactions of up to Rs 2,000 made via credit and debit cards. This move was part of a broader effort to promote digital payments. However, if the GST is applied to payment aggregators, they are likely to pass these additional costs onto businesses.

Will UPI be Affected?

Unified Payments Interface (UPI), another popular digital payment system in India, will remain unaffected by the proposed GST changes. Currently, UPI transactions do not incur a merchant discount rate (MDR) charge, which is the fee businesses pay for card-based payments. This means UPI transactions below Rs 2,000 will continue to be an attractive option for merchants, as they will not be subject to the new GST rules.

Impact on Small Businesses

Small businesses that rely on numerous low-value transactions are likely to feel the brunt of this change. For example, imagine a merchant processes a Rs 1,500 payment through Razorpay using a credit card. If the payment aggregator charges a 1% fee, the business would typically pay Rs 15. With the introduction of an 18% GST, the total fee would increase by Rs 2.7, bringing the total cost to Rs 17.7. While this difference may seem small, when multiplied across hundreds or thousands of transactions, it could add up to a substantial financial burden for small businesses.

In conclusion, the imposition of GST on payment aggregators could make card-based transactions more expensive for both businesses and consumers, particularly for small businesses dealing with frequent low-value payments. However, UPI transactions remain exempt, which may incentivize businesses to adopt this mode of payment for smaller transactions to avoid the additional costs.

Big bets on AI and green energy from Reliance Industries, but no indication on when Jio and the retail company will go public

Big bets on AI and green energy from Reliance Industries, but no indication on when Jio and the retail company will go public

 Mukesh Ambani emphasized that the Reliance Group is on track to more than double its size by the end of this decade. He identified key sectors such as Oil-to-Chemicals (O2C), Retail, Jio (its digital services arm), Media, and Green Energy and Fuels as the primary drivers of future growth.

The 47th Annual General Meeting (AGM) of Reliance Industries Limited (RIL), held since its Initial Public Offering (IPO), was perhaps the most anticipated event of the week. The market was eagerly awaiting announcements regarding the IPO timelines for Reliance Jio and the retail business. However, during his hour-long speech, RIL’s Chairman and Managing Director, Mukesh Ambani, did not address these IPO timelines. Instead, he focused on the growth trajectory, stating that he expects both Jio and Retail to double their revenues over the next three to four years.

Regarding the revenue outlook, Ambani stated, "Jio is poised to be a cornerstone of India‘s digital future." He projected that both Jio and the Retail business would double their revenues and EBITDA within the next three to four years. He also highlighted the significant growth potential in the media sector.

The high expectations surrounding the IPO timelines for Reliance Retail and Jio stemmed from a declaration made at the 2019 AGM, which stated that these businesses would be listed within five years. 

Despite the absence of an IPO update, Mukesh Ambani outlined the company's growth strategy, emphasizing the "five growth engines"—O2C, Retail, Jio, Media, and Green Energy and Fuels. He noted that Reliance is uniquely positioned to expand into new businesses adjacent to these core sectors. He highlighted that three of these growth engines already have a valuation of over $100 billion each and are expected to grow even faster in the future.

On rewarding investors, Ambani emphasized the company's commitment to wealth creation, mentioning that the Board is considering issuing bonus shares in a 1:1 ratio on September 5. He assured investors that Reliance would continue to operate within a prudent financial framework, allocating resources to high-return projects while maintaining a strong balance sheet.

A significant part of Ambani's address focused on Deep Tech and Artificial Intelligence (AI). He shared his vision for the future, which includes transforming Reliance from a technology implementer to a creator of cutting-edge technologies. The company plans to build large-scale AI infrastructure, including Gigawatt-scale AI-ready Data Centers in Jamnagar powered by green energy, to offer AI for all. These initiatives aim to have a transformative impact on sectors such as agriculture, healthcare, education, and small businesses.

Ambani also highlighted the strong performance of Reliance’s Upstream and Oil-to-Chemicals (O2C) businesses. Key factors contributing to this success include a focus on operational excellence, diversification in processing 60 grades of crude oil (including 13 new grades), chartering more vessels on a long-term basis amidst geopolitical tensions, strong domestic demand for fuels and downstream chemicals, and leveraging deep-tech and advanced manufacturing capabilities. The company is pioneering the use of AI-powered real-time optimization across its supply chain and advanced crude oil and feedstock characterization to drive increased profitability.

Ambani also reiterated Reliance’s emergence as a deep-tech and new energy entity. He stated that affordable and sustainable round-the-clock clean energy is critical for India’s accelerating growth. The company has committed Rs 75,000 crore to establish a new energy ecosystem. He revealed that construction has begun on an advanced chemistry-based battery manufacturing facility with an annual capacity of 30 GWh in Jamnagar, with production expected to start in the second half of next year. This facility will initially assemble Battery Energy Storage Systems (BESS) for various markets and progressively integrate backward to cell manufacturing and eventually to battery chemical production. According to Ambani, this deep integration will help control quality and costs, ultimately resetting energy costs.

"Nvidia’s Earnings Will Evaluate the S&P 500’s $4 Trillion Rebound"

 The upcoming quarterly earnings announcement from Nvidia (NVDA), often hailed as an AI frontrunner, is set to captivate global financial markets. The company's second-quarter fiscal year 2025 financial results are scheduled for release on August 28, 2024, at 2:00 PM PT. With the earnings report being issued after market hours on Wednesday, it could prove to be a pivotal moment for the U.S. financial landscape.

Equity investors are looking forward to Nvidia, the giant of AI, releasing its earnings report today.

Nvidia's current stock price is approximately $126, reflecting an impressive return of over 150% for investors so far in 2024, as well as a remarkable gain over the past year. Notably, Nvidia has contributed nearly 25% of the S&P 500's 17% annual growth, making its performance a focal point for market observers eager to see if the company can sustain its extraordinary trajectory.

According to Nigel Green, CEO and Founder of deVere Group, one of the world's leading independent financial advisory and asset management firms, Nvidia is expected to surpass its previous earnings results when it reports on Wednesday. Green's optimistic forecast characterizes this upcoming earnings release as potentially the "single most important earnings report of the year."

In addition, today's release of the FOMC minutes and Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Symposium on Friday are anticipated to further influence market dynamics.

Nvidia's stock has surged by 150% just this year and by an astonishing 3,000% over the past five years, marking an exceptional growth trajectory. Sheraz Mian, Research Director at Zacks Research, emphasizes Nvidia's prominent role in the AI sector, attributing its consistent high-quality quarterly results to its advanced chips designed for complex computations

However, the earnings season has been challenging for tech giants, with companies facing repercussions if their performance does not align with high valuations and substantial AI investments. John Blank, Chief Equity Strategist at Zacks Research, notes that Nvidia's remarkable multi-year performance and the current AI enthusiasm are drawing comparisons to the dot-com bubble of over two decades ago. The recent negative market reactions to disappointing results from major companies like Alphabet (GOOG) and Tesla (TSLA) suggest that investors may be particularly unforgiving, given the elevated valuations in the tech sector.

Despite these concerns, Nigel Green believes Nvidia's best days may still lie ahead. He asserts that Nvidia has firmly established itself as the leader in the AI chip market, a sector poised to revolutionize industries worldwide. In an era increasingly driven by AI technologies, Nvidia is positioned far ahead of its competitors.

"States are also being cautious about reducing GST rates: Finance Minister Sitharaman"

 Finance Minister Nirmala Sitharaman stated on Tuesday that states are also cautious about proceeding with reductions in tax rates. She clarified that her intention was not to criticize them, explaining that states are keen to generate revenue without imposing a heavy burden on the public. “When state officials take their positions, they are aware that their responsibility is not to appease anyone but to safeguard revenue,” she mentioned to reporters.

"States are also being cautious about reducing GST rates: Finance Minister Sitharaman"

These remarks were made in the context of ongoing discussions about revising the rates on goods and services under the Goods and Services Tax (GST). Sitharaman suggested that any changes to these rates would take some time to implement. The GST Council is expected to begin discussions on these potential changes during its meeting scheduled for September 9.

In recent months, the central government has faced criticism over the high GST rates. However, Sitharaman defended the current rates by pointing out that they are lower for nearly all goods and services compared to the rates in July 2017, when the GST was first introduced. This introduction replaced multiple other taxes and cesses.

She also addressed misinformation circulating on social media, stating, “There is a lot of vicious, false campaigning on social media. I won’t delve into that... the entire country is benefiting from GST.” She elaborated that aside from the adjusted rates, the elimination of border checks has resulted in smoother and faster movement of goods.

Additionally, Sitharaman noted that the revenue-neutral rate has now dropped below 11.6%, lower than the 15.3% suggested by an expert panel before GST was launched in 2017. This is also below the level estimated in 2019.

The group of ministers on rate rationalization, led by Bihar's Deputy Chief Minister Samrat Chaudhary, has recommended maintaining the current four GST slabs—5%, 12%, 18%, and 28%—while exploring adjustments to other rates.

Sitharaman also emphasized that, contrary to popular belief, the discussions between state finance ministers and the central government are conducted in a cordial manner, and decisions are made following thorough deliberations. She mentioned that the extension of the compensation cess on luxury and sin goods is another topic up for discussion. Initially, this cess was supposed to end in 2022, but to help states meet their financial requirements, the GST Council agreed to extend it until March 2026 to cover their borrowings. Government officials anticipate that the borrowings, totaling 2.7 lakh crore, will be repaid by November 2025.

The five-point plan for India's financial future presented by RBI Governor Shaktikanta Das at GFF 2024

The five-point plan for India's financial future presented by RBI Governor Shaktikanta Das at GFF 2024

 At the Global Fintech Festival (GFF) 2024 held in Mumbai, the Governor of the Reserve Bank of India (RBI), Shaktikanta Das, delivered a powerful speech that highlighted India's remarkable transformation into a rapidly expanding economic powerhouse. He attributed this impressive growth to a combination of factors, particularly the country's tech-savvy population and a dynamic, evolving fintech ecosystem. During his address, Das outlined five strategic priorities he believes are crucial for shaping the future of India's financial landscape.

1. Financial Inclusion  

Governor Das began by celebrating the substantial progress India has made in the area of financial inclusion. He pointed out that the RBI’s Financial Inclusion Index, a measure of the extent of access, usage, and quality of financial services, has risen significantly from 53.9 in March 2021 to 64.2 in March 2024. This improvement has been largely driven by initiatives like the Pradhan Mantri Jan Dhan Yojana, a flagship financial inclusion program that has successfully completed a decade. Through this initiative, more than 530 million bank accounts have been opened, with a significant 66% of these accounts being in rural and semi-urban areas, and 55% of them benefiting women.

“Despite initial skepticism, Jan Dhan accounts have demonstrated significant savings accumulation,” Das remarked, emphasizing the tangible impact the scheme has had on millions of lives. Looking ahead, he stressed the need to leverage technology over the next two decades to address the financial needs of underserved regions. He highlighted the vital role fintech companies will play in bridging existing gaps and ensuring seamless access to financial services.

2. Enhancing Digital Public Infrastructure  

The second priority outlined by Das focused on the enhancement of Digital Public Infrastructure (DPI), which he identified as a key factor in integrating advanced technologies into India's financial system. He spoke about the RBI's pilot project on the Unique Lending Interface (ULI), which is set to be launched on a larger scale soon. This initiative, along with the existing JAM (Jan Dhan-Aadhaar-Mobile) trinity and UPI, marks a new era in India’s financial journey.

“DPI has the potential to revolutionize financial services in India,” Das asserted, underscoring the transformative impact these initiatives are expected to have on the financial landscape. By streamlining access to financial products and services, DPI is anticipated to enhance financial inclusion and increase efficiency across the country.

3. Strengthening Cybersecurity  

In a world that is becoming increasingly digital, cybersecurity has emerged as a critical pillar in safeguarding India’s financial ecosystem. Das emphasized the importance of real-time monitoring and strict regulatory compliance, especially in light of the recently enacted Digital Personal Data Protection Act. This new legislation empowers individuals by giving them greater control over their personal data, thereby enhancing trust in digital financial services.

“Banks and fintech firms, particularly Non-Banking Financial Companies (NBFCs), are expected to adopt a customer-centric approach, ensuring transparency in financial products and fair lending practices,” Das stated. He also highlighted the need for continuous vigilance against cyber threats and stressed the importance of promoting cybersecurity awareness to build a secure digital economy.

4. Promoting Long-Term Sustainable Finance  

Das then turned his focus to the importance of long-term sustainable finance. He highlighted the RBI’s efforts in promoting sustainability within the financial sector, such as through the issuance of sovereign green bonds and the introduction of green deposits. However, he also acknowledged the challenges associated with scaling these initiatives, noting that the green bond market still requires significant expansion.

“Technology, particularly artificial intelligence and big data, will play a transformative role in assessing environmental risks and accelerating the transition to sustainable finance,” Das explained. He emphasized the crucial role fintech companies are expected to play in driving this transition over the next two decades, positioning India as a leader in sustainable finance.

5. Reinforcing Financial Infrastructure  

Finally, Das underscored the need to strengthen India’s financial infrastructure, with a specific focus on cross-border payments. He highlighted the RBI’s ongoing efforts to make UPI and RuPay truly global, emphasizing this as a key strategic priority moving forward.

“We must adopt artificial intelligence carefully and in a calibrated manner, understanding both its potential and the risks it poses,” Das cautioned. He also pointed to the Internet of Things (IoT) as the next frontier of opportunity for the financial sector, stressing the importance of innovation in reinforcing India’s financial infrastructure.

Conclusion  

The Global Fintech Festival (GFF) 2024 in Mumbai provided a platform for industry leaders, policymakers, and innovators to discuss the future of fintech in India. As one of the fastest-growing economies in the world, India has witnessed a surge in fintech startups, with over 11,000 companies being founded and $6 billion in funding secured over the last three years. This growth is reflective of the country's broader economic trajectory, driven by a young, tech-savvy population eager to embrace digital financial services.

Governor Das’s address at the GFF 2024 reflected the RBI’s strategic vision for the future of India’s financial sector, emphasizing the need for innovation, inclusion, and resilience. The priorities he outlined are set against the backdrop of India’s broader economic goals, which include achieving universal financial inclusion, fostering sustainable growth, and positioning the country as a global leader in fintech.

In summary, Governor Shaktikanta Das’s comprehensive address at the GFF 2024 provided a clear roadmap for the future of India’s financial sector. By focusing on financial inclusion, enhancing Digital Public Infrastructure, strengthening cybersecurity, promoting sustainable finance, and reinforcing financial infrastructure, Das highlighted the essential components of a robust and resilient financial system. His vision for the future reflects a strong commitment to leveraging technology, ensuring security, and fostering innovation to propel India forward in its journey towards becoming a global economic powerhouse.

Congress uses a "U-turn" counter the day after the Center introduces the Unified Pension Scheme, saying, "U in UPS stands for."

 The day after the Union Cabinet approved a new Unified Pension Scheme (UPS) for Central government employees, the Leader of Opposition in Rajya Sabha, Mallikarjun Kharge, criticized the decision. He remarked that the ‘U’ in UPS represents the "U-turns" often made by the Narendra Modi-led government on various policies and issues.

Congress uses a "U-turn" counter the day after the Center introduces the Unified Pension Scheme, saying, "U in UPS stands for."

The newly approved scheme by the Union Cabinet guarantees that Central government employees will receive a pension amounting to 50 percent of their average salary over the last 12 months of service.

In a post on X, Kharge commented, "The 'U' in UPS stands for Modi Govt's U-turns! Since June 4, the power of the people has overcome the Prime Minister’s arrogance." He highlighted several policy reversals by the Modi government, such as the rollback of changes in the budget related to Long Term Capital Gain/Indexation, sending the Waqf Bill to the Joint Parliamentary Committee (JPC), withdrawing the Broadcast Bill, and reversing the Lateral Entry initiative. Kharge asserted, "We will continue to ensure accountability and protect the 140 crore Indians from this despotic government!"

What is the New Pension Scheme?

Union Minister Ashwini Vaishnaw announced the new pension scheme, which guarantees a minimum assured pension of Rs 10,000 per month upon retirement after at least 10 years of service. This scheme is set to benefit around 23 lakh Central government employees.

Under the new scheme, the employees’ contribution remains unchanged at 10 percent of their basic pay plus dearness allowance. The UPS will become effective from April 1, 2025, and will be available to employees who have completed 25 years of service in the government. The scheme includes several key features, such as:

- A family pension for the spouse, which is 60 percent of the employee’s pension income after their death.

- A minimum pension of Rs 10,000 per month for employees who have completed at least 10 years of service.

- Inflation indexation to adjust for rising prices of goods and services.

- An option to withdraw a lump sum amount at the time of retirement.

These new features mark a shift from the existing National Pension Scheme (NPS), which provided pensions based on the contributions made by both employees and the government. The announcement of the new scheme comes at a time when several non-BJP states have decided to return to the DA-linked Old Pension Scheme (OPS), and employee organizations in some other states are also demanding the same.

Since January 1, 2004, the NPS has been in place for all government employees, except those in the armed forces, who joined the central government after that date. The Old Pension Scheme (OPS) ensured that retired government employees received 50 percent of their last drawn salary as a monthly pension, with adjustments for any increase in dearness allowance (DA) rates.

"Unified Pension Scheme" for government workers is approved by the center

 On Saturday, the Narendra Modi government approved a new Unified Pension Scheme, guaranteeing 50 percent of an employee's salary as a pension for government workers.

"Unified Pension Scheme" for government workers is approved by the center

Union Minister Ashwini Vaishnaw announced the decision, stating, "Government employees have requested modifications to the New Pension Scheme. In response, Prime Minister Modi set up a committee led by Cabinet Secretary TV Somanathan. This committee engaged in over 100 meetings with various organizations and representatives from almost all states."

Vaishnaw highlighted a distinct difference between how Prime Minister Modi operates compared to the opposition. He noted, "Unlike the opposition, PM Modi believes in comprehensive consultations. The committee, after extensive discussions with all stakeholders, including the Reserve Bank of India and the World Bank, has recommended the implementation of a Unified Pension Scheme. Today, the Union Cabinet has approved this scheme, and it will be rolled out in the near future."

‘50% Assured Pension: The First Pillar of the Scheme’

Minister Vaishnaw elaborated, stating, "The first pillar of the Unified Pension Scheme (UPS) is the assurance of a 50 percent pension. The second pillar ensures a family pension for employees. Approximately 23 lakh central government employees will benefit from the UPS. Additionally, employees will have the option to choose between the existing New Pension Scheme (NPS) and the new Unified Pension Scheme."

Explaining the details of the scheme further, Vaishnaw said, "The Unified Pension Scheme is built on five main pillars. The employees demanded a guaranteed pension amount, which is a reasonable expectation. Therefore, the scheme ensures a 50 percent pension based on the average of the basic pay of the last 12 months before retirement. If an employee has served for 25 years, they will receive this assured pension amount."

PM Modi Praises the Unified Pension Scheme 

Prime Minister Narendra Modi expressed his approval of the Unified Pension Scheme, stating, "We are proud of the dedication and hard work of all government employees who play a crucial role in the progress of our nation. The Unified Pension Scheme is designed to provide financial security and dignity to government employees, reflecting our commitment to their well-being and ensuring a secure future for them."

The government is set to move forward with the implementation of the scheme, which promises to address the concerns of government employees and provide them with greater financial stability in their retirement years.

India's GDP growth projections for 2024 and 2025 are lowered by Goldman Sachs due to a decline in government spending: Report

 Goldman Sachs has revised its forecast for India's GDP growth, reducing it by 20 basis points for both the current year and the next, according to a report by Bloomberg. The downward revision comes as a result of a significant reduction in spending by the Union government. 

India's GDP growth projections for 2024 and 2025 are lowered by Goldman Sachs due to a decline in government spending: Report

The investment bank now projects that India's economy will grow by 6.7 percent in 2024 and 6.4 percent in 2025. The lowered forecast for this year takes into account a sharp 35 percent year-on-year decline in government spending during the April to June quarter, which coincided with the general elections, as noted by economists from Goldman Sachs, led by Santanu Sengupta, in their August 23 report.

Earlier in August, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) estimated the real GDP growth rate for 2024-25 to be higher, at 7.2 percent. The central bank's projections, released after the Lok Sabha elections in June 2024, outlined an expected growth of 7.2 percent for the year, broken down by quarters as follows: 7.1 percent in Q1, 7.2 percent in Q2, 7.3 percent in Q3, and 7.2 percent in Q4. These figures represent a slight adjustment from their previous projections for each quarter, which were 7.3 percent, 7.2 percent, 7.3 percent, and 7.2 percent respectively.

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In contrast, the rating agency ICRA has predicted a more modest growth for India's GDP, expecting it to slow to a six-quarter low of 6.0 percent in the first quarter (Q1) of FY2025, down from 7.8 percent in Q4 FY2024. This anticipated decline is attributed to a reduction in government capital expenditure and a dip in urban consumer confidence. 

ICRA's forecast is significantly lower than the RBI’s, which has estimated a 7.1 percent growth rate for the first quarter of 2024-25. The agency attributed the slower growth in the first quarter of FY2025 to a temporary slowdown in certain sectors influenced by the parliamentary elections and reduced government capital expenditure by both the central and state governments.