Similar to the results in Uttar Pradesh, the BJP and its alliance partners faced disappointment in Vidarbha, with the “Mahayuti” (Grand Alliance) winning only 3 out of 10 Lok Sabha seats in the region. This is a stark contrast to their performance in previous elections, where the NDA secured all 10 seats in 2014 and nine out of 10 in 2019.

Union Minister Nitin Gadkari, often referred to as the ‘highway man of India,’ secured his third term from the Nagpur Lok Sabha constituency, defeating his Congress rival, Vikas Thakre, by approximately 1.40 lakh votes. However, senior BJP leader and Maharashtra minister Sudhir Munganttiwar suffered a significant loss by over 2 lakh votes in the Chandrapur constituency to Congress’ Pratibha Dhanorkar.

In the Amravati constituency (reserved for SC), sitting BJP MP Navneet Rana was defeated by Congress’ Balwant Wankhede. Rana had won the seat in 2019 as an independent with support from the united NCP and Congress, later joining the BJP despite opposition from some local BJP members.

The BJP managed to retain the Akola seat with Anup Dhotre defeating his nearest Congress rival, Dr. Abhay Patil, by a margin of over 40,000 votes. Notably, Vanchit Bahujan Aghadi leader Prakash Ambedkar, the grandson of Dr. Babasaheb Ambedkar, became an insignificant player in these elections after unsuccessful negotiations with the opposition alliance.

In Buldhana, three-term sitting MP Prataprao Jadhav of Shiv Sena (Shinde faction) retained his seat, defeating Shiv Sena (UBT) candidate Narendra Khedekar by over 34,200 votes. However, in Bhandara-Gondia, sitting BJP MP Sunil Mendhe, who initially led, lost to Congress’ Dr. Prashant Padole by over 29,000 votes.

The Maha-Vikas-Aghadi candidates secured victories in other constituencies, displacing the BJP-led coalitions. In Gadchiroli, Congress nominee Namdeo Kirsan won by a significant margin of over 1.40 lakh votes against BJP’s two-term MP, Ashok Nete. Congress also won the Ramtek (reserved for SC) seat, with newcomer Shyamrao Barve defeating Sena (Shinde) nominee Raju Parwe by over 80,000 votes. Initially, Congress had nominated Barve’s wife, Rashmi, but her candidacy was rejected due to a false caste certificate, leading to Shyamrao’s nomination.

In Wardha, incumbent BJP MP Ramdas Tadas lost to NCP (Sharad Pawar) candidate Amar Kale by around 85,000 votes. The opposition accused Tadas of abandoning his daughter-in-law Pooja and her baby, prompting Pooja to run against Tadas. Although she lost her security deposit, her campaign negatively impacted Tadas’ prospects.

In Yavatmal-Washim, Sanjay Uttamrao Deshmukh from SS (UBT) defeated Rajshri Hemant Patil from SS (Shinde) by around one lakh votes. SS (Shinde) had denied a party ticket to its five-time MP Bhavna Gawli, instead fielding Rajshri Patil, wife of Hemant Patil, who represented Hingoli in the 2019 elections.

A new central excise law is set to replace the nearly 80-year-old Central Excise Act, the finance ministry announced on Tuesday, inviting public comments on a draft bill.

With most goods now covered under the Goods and Services Tax (GST), only crude oil, petrol, diesel, natural gas, and jet fuel remain under the Central Excise Act. These commodities still generate significant tax revenues for the Union government and state governments, which levy value-added tax (VAT) on them instead of state GST (SGST). In FY24, the Centre collected over ₹3 trillion from central excise, slightly lower than the ₹3.19 trillion collected the previous year.

The finance ministry stated that the Central Board of Indirect Taxes and Customs (CBIC) is seeking feedback on a draft Central Excise Bill, 2024 by 26 June as part of the pre-legislative consultative process. Given the timing of the draft release and the comment submission deadline, this new bill might be introduced in the upcoming budget session, noted Gunjan Prabhakaran, partner and leader of indirect tax at BDO India.

“Once enacted, the Bill shall replace the Central Excise Act, 1944. The Bill aims to create a comprehensive modern central excise law, promoting ease of doing business and repealing outdated provisions,” the ministry stated. The proposed bill consists of twelve chapters, 114 sections, and two schedules. Replacing old laws has been a legislative priority for the National Democratic Alliance (NDA) government. Over time, numerous amendments have made the current law complex and difficult to understand. A modern law could aid professionals and businesses in compliance.

Despite industry demands to include crude oil and petroleum products within GST, consensus has not been reached as states are reluctant to relinquish their taxation authority on these items to the GST Council. Unlike excise law, GST eliminates issues like ‘tax on tax’ by taxing only the value added at each stage of the supply chain, reducing the cost of doing business and the tax burden on the end consumer.

Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) did not achieve a simple majority in the 543-seat Lok Sabha on Tuesday. However, the National Democratic Alliance (NDA) it leads is still in a strong position to form the next central government, according to experts.

Despite these surprising election results, which significantly weakened the ruling coalition and strengthened the opposition led by the Congress, the ambitious reform agenda of the new government might face delays. Nonetheless, experts believe that, based on the NDA’s track record over the past decade, next-generation structural reforms are expected to proceed, alongside a continued focus on welfare economics.

The new government is anticipated to undertake major policy initiatives, such as implementing the next generation of structural reforms, boosting capital expenditure for infrastructure, and increasing farmers’ income through measures like overhauling the minimum support price (MSP) for crops. Additionally, new welfare initiatives and demand-side measures are likely to be introduced to sustain economic growth.

A former government official, speaking anonymously, suggested that the previous government’s talk of next-generation reforms might not be abandoned if the same coalition returns to power, even with a reduced mandate. The new government would inherit a relatively strong economy, allowing room for further reforms while pursuing welfare economics.

In the 2019 Lok Sabha elections, the NDA won 353 seats, with the BJP securing 303 and the Congress 52. In the latest 2024 elections, the BJP won or led in 240 seats, while the Congress was at 100 as of the latest count on Tuesday.

Recent GDP data supports the economy’s health, with India’s real GDP growing by 7.8% in January-March and achieving an 8.2% growth rate for the 2023-24 fiscal year, marking the third consecutive year of over 7% growth. Government finances are also robust.

However, experts suggest that due to the fractured mandate, the new government will likely focus more on issues like unemployment and rural distress. Abheek Barua, chief economist and executive vice-president at HDFC Bank, anticipates that public spending, especially in infrastructure, will continue, alongside efforts for fiscal consolidation with the RBI dividend. With the election over, addressing unemployment and rural distress will become a higher priority.

Outgoing Finance Minister Nirmala Sitharaman indicated that if the Modi government is re-elected, it plans to introduce next-generation structural reforms across land, labor, capital, and digital public infrastructure to promote inclusive growth. This would be the focus in the initial months of the new term.

Unfinished measures from previous terms are likely to include legislation advancing land reforms, simplifying industrial land acquisition, and ensuring fair compensation for landowners. In labor, the implementation of new labor codes will allow workforce mobility and create more employment opportunities. Capital reforms will continue towards full convertibility of the rupee, and further digital public infrastructure projects will facilitate easier regulatory implementation.

The new government’s policy should consider India’s medium to long-term growth objectives in the context of global developments. Ensuring medium-term growth of 7% plus in both urban and rural areas will require maintaining the savings ratio at 31-32% of GDP. The recent drop in household sector financial savings to 5.1% of GDP in FY23 needs addressing. Combined with net capital inflow of 1.5-2% of GDP, this would support an investment ratio of 35-37% in real terms, benefiting from a lower capital goods price deflator that provides a margin of 2-3 percentage points when converting nominal to real investment ratios, according to DK Srivastava, chief policy advisor at EY India.

On Monday, a court in Nagpur sentenced former BrahMos engineer Nishant Agarwal to life imprisonment for espionage on behalf of Pakistan’s intelligence agency, ISI. He was found guilty under sections 3 and 5 of the Official Secrets Act (OSA) and fined ₹3,000. Nishant Agarwal, a senior system engineer with BrahMos Aerospace, was arrested in 2018 for leaking sensitive information to Pakistan.

“The court sentenced Agarwal to life imprisonment and rigorous imprisonment for 14 years under the Official Secrets Act and fined him ₹3,000,” stated Special Public Prosecutor Jyoti Vajani.

The verdict was delivered by Additional Sessions Court judge MV Deshpande, who stated that Agarwal was convicted under section 235 of the Criminal Procedure Code for an offense punishable under section 66 (f) of the IT Act and various sections of the Official Secrets Act.

BrahMos Aerospace, a significant player in India’s defense sector in collaboration with a Russian company, is crucial in developing India’s supersonic cruise missile capable of launching from land, air, and sea.

Agarwal shared sensitive information about the supersonic missile technology with Pakistan-based ISI handlers via Facebook. The communication was conducted through accounts named Neha Sharma and Pooja Ranjan, according to investigative agencies.

The agencies reported that Agarwal became an easy target online due to his casual and reckless approach. He was influenced by Pakistan-based handlers to share sensitive information about the BrahMos missile.

Agarwal’s actions were particularly shocking to his colleagues, who considered him a hard-working and talented employee with a promising future. He had been recognized with the Young Scientist Award by India’s premier defense research agency, the Defence Research and Development Organisation, for his significant contributions to various technologies.

There has been an increase in cases where Pakistan’s intelligence agency targets Indian officials and security personnel on social media to extract sensitive information about India’s defense programs.