Morning Brief: Grumpy Diplomats, Double Standards: Jaishankar Calls Out Canada’s 'Free Speech' Farce; Pakistani Terror Outfit Links Tunnel Attack To Chinese Interests; And More

Grumpy Diplomats, Double Standards: Jaishankar Calls Out Canada’s 'Free Speech' Farce

External Affairs Minister S Jaishankar criticised Canada's double standards, pointing out how it treats its own diplomats differently from those of other countries. He noted that while Indian diplomats face restrictions in Canada, Canadian diplomats freely gather intelligence on India's military and police without issue. This imbalance, Jaishankar argued, highlights Canada's hypocrisy in handling diplomatic relations.

Jaishankar also condemned Canada's justification of threats against Indian leaders and diplomats as "freedom of speech." He sarcastically pointed out the inconsistency, saying that while Indian diplomats must accept threats as free speech, Canada gets upset even when an Indian journalist comments that their High Commissioner left South Block looking "grumpy." Jaishankar was responding to Canada's accusations that Indian media outlets were engaging in foreign interference and "information manipulation."

Pakistani Terror Outfit Links Attack On Z-Morh Tunnel To Chinese Interest

A Chinese angle to the targeting of the strategically important Z-Morh tunnel has emerged following a statement from the Pakistan-based terrorist group People’s Anti-Fascist Front (PAFF). This comes after a mass shooting at a tunnel-construction site in Gagangir village, Kashmir, which resulted in the deaths of a doctor and six workers.

The Resistance Front (TRF), an offshoot of the Pakistan-backed Lashkar-e-Taiba, claimed responsibility for the attack. PAFF commended the TRF for what it described as a “strategic attack” on workers involved in the Z-Morh tunnel project.

The group asserted that the attack aimed to disrupt Indian military deployments along the eastern border and claimed to serve the interests of their “Chinese friends.”

However, officials pointed out that while China and Pakistan share strategic ties, there is no evidence supporting Beijing's involvement in this incident. They suggested that the reference to China is likely rhetorical. The Z-Morh tunnel is a crucial infrastructure project for connecting Kashmir and Ladakh, and its inauguration is slated for early November.

RBI Projects 7.2 Per Cent GDP Growth For FY 2024-25

The Reserve Bank of India’s October Bulletin projects real GDP growth at 7.2 per cent for the fiscal year 2024-25, driven by strong consumption and investment demand. The Bulletin forecasts growth of 7 percent in Q2, followed by 7.4 percent in Q3 and Q4, citing improved rural demand and a robust agricultural outlook as key factors supporting private consumption.

Urban demand is also expected to remain steady, boosted by the services sector and government-led capital expenditure. The first quarter saw real GDP growth of 6.7 percent, with investment reaching its highest share in GDP since 2012-13. On the supply side, gross value added (GVA) grew by 6.8 percent, outperforming GDP growth, with the industrial and services sectors making significant contributions.

Other Developments

Patrolling Rights Restored In Ladakh's Depsang, Demchok

India and China have made significant progress in resolving the military standoff along the Line of Actual Control (LAC) in eastern Ladakh, agreeing to restore patrolling rights in the Depsang Plains and Demchok region. These areas, identified as legacy issues from before the 2020 Chinese incursions, will see patrolling up to the old points along the LAC.

Indian Steelmakers Benefit From China’s Real Estate Stimulus

Indian steelmakers are benefiting from China’s recent stimulus package, which has led to a surge in Chinese steel prices above domestic levels for the first time in months. Hot-rolled coil (HRC) from China is now selling at a premium of Rs 3,000 per tonne compared to domestic prices, with HRC trading at around Rs 48,500 per tonne in Mumbai.

This price increase follows China's stimulus for the real estate sector, which has improved market sentiment. Until September, Chinese steel was selling at a discount, putting pressure on Indian producers and pushing prices to nearly four-year lows.

The change in pricing dynamics could signal a potential recovery for Indian steel prices, though an inventory build-up is preventing immediate price hikes. Additionally, Indian steel exports may see short-term improvements as global demand shifts.

Government Set To Receive Record Rs 65,000 Crore In Dividends From PSUs

The central government is expected to surpass its Rs 56,260 crore dividend target from public-sector enterprises, with receipts projected to reach around Rs 65,000 crore by March. This estimate excludes dividends from nationalized banks and financial institutions. Improved professionalism and business growth in these state-owned firms have boosted dividend payouts. Experts say the surge in dividends has been achieved through better financial performance in recent years, with the Narendra Modi government overhauling the management of many PSUs in recent years.

From The States

Gujarat Joins Opposition-Ruled States In Demanding 50 Per Cent Tax Share

During a meeting with the 16th Finance Commission, the Gujarat government recommended increasing the share of states in the “divisible pool of taxes” from 41 per cent to 50 per cent. The Bhupendra Patel government emphasised that states like Gujarat, which have consistently maintained fiscal prudence, should receive a “reward” from the Commission to encourage other states to adopt similar practices. Currently, 41 per cent is devolved to the states while 59 per cent goes to the Central government. This development is notable, especially since opposition-ruled states like Tamil Nadu, Karnataka, and Kerala have made similar demands in the past.

Maharashtra: Congress-Uddhav Rift Deepens Over Seats

The rift between Congress and Uddhav Thackeray’s Shiv Sena faction has escalated over 17 Vidarbha seats, which the Sena (UBT) demands but Congress is unwilling to concede. Vidarbha, holding 62 assembly seats, is a key battleground where Congress feels confident of sweeping all seats.

This dispute follows earlier clashes over seats in Mumbai and Nashik, especially after tensions with state Congress chief Nana Patole. In the recent Lok Sabha polls, the Maha Vikas Aghadi won seven of Vidarbha’s 10 seats, with Congress leading by securing five.

Congress May Skip UP Bypolls Over SP's 2-Seat Offer

Tensions between Congress and Samajwadi Party continue as SP offers only two seats—Ghaziabad and Khair—against Congress' demand for five in the Uttar Pradesh bypolls. Congress has informally indicated it may opt out rather than contest just two seats. Meanwhile, SP has announced candidates for seven seats, with Tej Pratap Yadav, former UP CM Akhilesh Yadav's nephew, filing nomination for Karhal. A final discussion between Rahul Gandhi with Akhilesh Yadav over seat sharing is likely to happen soon, reports say.