National Spokesperson BJP – Gopal Krishna Agarwal

Operation Sindoor won’t hurt Indian economy

May 29, 2025

By Gopal Krishna Agarwal,

The BJP leader addressed fears in some quarters that India’s military response to Pakistan would impact the economy amid ongoing geopolitical tensions and a global tariff war.

Operation Sindoor will not have any adverse effect on the Indian economy, BJP national spokesperson Gopal Krishna Agarwal said on Friday. Addressing a press conference in New Delhi. Agarwal sought to dispel fears in some quarters that India’s military response to Pakistan following the terror attack in Pahalgam would impact the economy amid ongoing geopolitical tensions and a global tariff war.

There will be no negative impact, as India has never had significant economic relations with Pakistan,” the BJP leader said. “On the other hand, as Prime Minister Narendra Modi said yesterday, if Pakistan does not stop terrorism, its economy will be completely destroyed.”

Agarwal emphasised the strength of India’s defence capabilities, underlining that 65 percent of the country’s defence requirements are met through domestic procurement. India’s PSUs -long seen as a liability- have shown exemplary market performance and profitability, especially in the defence sector, with defence exports also rising rapidly, he said.

“You will find companies like Hindustan Aeronautics and Mazagon Dock have orders booked years in advance,” Agarwal said. “The BrahMos missile and the HAL Tejas combat aircraft have acquired a global reputation.”

He also highlighted India’s growing global engagement and strengthening diplomatic ties with the United States and European nations. Agarwal referred to PM Modi’s statement during the Russia-Ukraine war, in which he tweeted, “This is not the era of war.”

“This assertive message echoed globally, urging both nations to resolve their issues through dialogue. His call for peace received significant international praise and support,” Agarwal added.

The BJP spokesperson also referenced External Affairs Minister S Jaishankar, asserting that India seeks equal partners, not “preachers.”

India’s global confidence is growing.

He noted that growing global confidence in India is mirrored in domestic stability. Despite rising inflation worldwide, India has managed to keep price inflation under control at 4.4 percent, lower than the RBI’s target band. While fiscal deficit levels have reached alarming levels in countries like the United States, India has kept its deficit under control. Agarwal also noted that India’s foreign exchange reserves stand at $700 billion, even as the country continues to attract significant foreign direct investment.

He also pointed to global praise for India’s Digital Public Infrastructure, especially at the G20 summit held in 2023. This includes the Direct Benefit Transfer (DBT) scheme, which directly transfers welfare benefits into beneficiaries’ bank accounts. He highlighted the exponential growth of India’s capital markets, citing Morgan Stanley reports that project India’s capital market-currently at 81,000-to reach 1,00,000 by 2026.

The BJP leader acknowledged that challenges remain, particularly due to the ongoing global tariff war and its disruptions. However, Agarwal suggested that this may offer India an opportunity to present itself as an alternative global manufacturing hub, referencing Apple’s recent substantial investment in Bengaluru.

“Compared to our competitor countries, our reciprocal tariffs remain low. We will take advantage of this.” Agarwal said. He also noted that, according to the RBI’s May bulletin. India’s manufacturing sector is expected to remain strong even if the country does not become a global manufacturing hub-thanks to its robust domestic consumption base.

The BJP leader also referenced the recent HSBC composite PMI index for India, which stood at 61.2. Indicating expansion in both the services and manufacturing sectors.

Agarwal cited other reports, including those by Moody’s and Fitch, highlighting India’s strong growth potential. “The economy is driven by perception, and the sentiment around India is very positive,” he said.

The press conference underscored the Modi government’s ongoing commitment to fostering economic growth through strategic reforms and policy initiatives. The creation of the Deregulation Commission aims to reduce bureaucratic hurdles and improve the ease of doing business, aligning with Finance Minister Nirmala Sitharaman’s recent warning against overregulating enterprises and the role of the Competition Commission of India. Efforts are also underway to implement labour law reforms at the state level and to accelerate the finalisation of trade agreements, thereby enhancing India’s global trade prospects. At the same time, significant initiatives are being rolled out to expand the country’s renewable and nuclear energy capacities.

(The writer is National Spokesperson of BJP)

Need to Maximise valuations just selling off loss-making PSUs not the answer

May 20, 2025

In pre-budget parleys with Centre, party offers suggestions on boosting valuation

Improved corporate governance, restraint in setting out targets and monetization of assets are some of the suggestions from the BJF to the government to improve valuation of the PSUs as part of a better divestment policy.

The ruling party also believes that the disinvestment of the LIC is not advisable.

Talking to BusinessLine, the BJP’s economic affairs spokesperson, Gopal Krishna Agarwal, said concerns and solutions about the continued low valuation of the PSUs have been conveyed to the government in the post-pandemic resource crunch. The focus on the middle class will not exactly result in direct tax concessions. It believes tax incentives to boost consumption are a better idea.

“How does one generate resources when fiscal deficit is already quite high and the borrowings have also gone up? The only alternative for resource generation is divestment. The issue is, even when the capital market is booming to almost record highs, the PSUs are still not getting proper valuation. We believe large-scale tweaking is required. The Government has to look into the reasons,” Agarwal said

Lessons learnt

Citing the instance of Hindustan Zinc Ltd (H21), where the valuation went up post-divestment, Agarwal said corporate governance needs to be factored into any future policy regarding divestment.

“One of the important suggestions from the capital market is corporate governance. Also, we believe that the idea of the Government clearly setting out targets is also counter-productive. People know that this is coming for sale, and there is a supply overhang. Monetization of assets is also critical,” he said.

Policy for strategic sale

According to Agarwal, an overarching policy is required for strategic sale and maximising valuation. He said simply selling off loss-making PSUs is not a good option. He also categorically said that the party is not in favour of selling LIC.

“Five or six years back, perhaps Air India was getting a good price and attracting buyers. Now with a liability of 160,000 crore, who will buy it? We should not always think of offloading a loss-making company. A strategy is required. We have to learn from examples such as HZL, where the valuation went up because of corporate governance. In case of LIC, we do not believe it should be disinvested. LIC is a holding company,” he said. He said while focusing on giving incentives to middle class, the suggestion is not to give any reduction in taxes.

“We have not suggested any reduction in taxes because already taxation limits for corporates and individuals has been brought down. Relaxation in saving limits is an option as is tax incentives to boost consumption.

Gopal Krishna Agarwal, BJP’s spokesperson Economic Affairs