FRIDAY 30 JANUARY, 2026 epaper.morningstandard.in facebook.com/TheMorningStandard X.com/TheMornStandard TEHRAN CRACKDOWN EU BLACKLISTS IRAN’S PARA FORCE MAHARASHTRA BIDS A TEARFUL ADIEU TO AJIT PAWAR ‘DADA’ The EU has listed Iran’s paramilitary Revolutionary Guard as a terrorist organisation over Tehran’s bloody crackdown on nationwide protests A CAPITAL VIEW OF NEWS PAGE 14 Policy prescriptions TARIFF IMPACT Focus on building national capabilities and economic sovereignty in the face of shrinking space for rules-based trading, anti-immigrant stance, weaponisation of energy and export controls 2% COSTLY FREEBIES Direct cash transfers to voters ahead of elections — a new strategy adopted by political parties — have long-term viability risks. Aggregate spending on such transfers would be `1.7 lakh crore in FY26, it warned  NEW DELHI COOL INFLATION Retail inflation is unlikely to cause any major worries for the economy, supported by favourable supply-side conditions and GST rate cuts. Inflation is likely to average 2% this fiscal. The new CPI series, due to kick in on Feb 12, will have implications for inflation assessment  J8.00 G RAM G VS MGNREGS The VB-G RAM G Act, 2025 was brought in because there was a notable decline in work under MGNREGS. Since its enactment in 2005, MGNREGS provided wage employment, stabilised rural income, and created basic infrastructure, but the nature of rural employment requirements transformed overtime. VB-G RAM G is a comprehensive statutory overhaul of the earlier scheme, it said ECONOMIC SURVEY 2025-26 Despite trade risks and global volatility, GDP to grow at 6.8-7.2% in FY27, says CEA India to keep fastest growth tag P U S H P I TA D E Y @ New Delhi INDIA’s economic engine is revving up and is expected to enter the next financial year at full throttle, the Economic Survey 2025-26 tabled in Parliament on Thursday signalled as it projected a real GDP growth rate 6.8%-7.2% for FY27. This outlook follows a strong performance in FY26 where the economy is estimated to grow at 7.4%, reinforcing India’s position as the world’s fastestgrowing major economy for the fourth consecutive year. The Survey upgraded India’s medium-term potential growth rate to 7% from the previous estimate of 6.5%. However, it flagged global uncertainties and warned of a 2008-like crisis in 2026. Given the potential risks, having a strong and sustained manufacturing growth would be the need of the hour, the finance ministry said. “First Advance Estimates place real GDP growth at 7.4% with growth largely driven by domestic demand. Private consumption and capital formation continue to support expansion, while services remain the key contributor on the supply side,” the Survey said. Higher tax collection, better export market, lower inflation and better employment will contribute to the growth momentum. The Survey tabled by , Finance Minister Nir mala Sitharaman in both Houses on Thursday, highlighted how internal resilience has helped create a buffer for the economy against external headwinds. The Survey highlighted the tax reforms – both in direct and indirect taxes – during the previous year, and noted that these helped India make a calibrated fiscal strategy, anchored in India is indeed an oasis of macro stability in an otherwise turbulent world. Numbers speak for themselves — Chief Economic Advisor V Anantha Nageswaran credible deficit reduction leading to resilient revenue mobilisation, and better spending toward capital formation. The Survey listed strong fiscal indicators – revenue receipts rising from 8.5 % of GDP in the pre-pandemic period (FY16-FY20) to 9.1% in FY22FY25, moderation of revenue expenditure from 13.6% of GDP in FY22 to 10.9 % in FY25, and halving of fiscal deficit from 9.2% in FY21 to 4.4% in FY26. The Survey advocated more de-regulation to create a self-reliant (Swedeshi) economy When . “trade is no longer reciprocal” and “markets are no longer neutral”, Swadeshi-oriented policies will be empirical to Indian economic growth. P9 & 12  PAGES 16 The NCP chief was cremated with full state honours at a college ground in Baramati on Thursday. As thousands gathered to pay their last respect, Pawar’s sons, Parth and Jay, lit the funeral pyre in the presence of Union Home Minister Amit Shah. Sharad Pawar sat quietly, watching a legacy he helped build become a memory | P10 VAGUE, CAPABLE OF MISUSE SC stays UGC fiat on campus equity S U C H I T R A K A LYA N M O H A N T Y @ New Delhi THE Supreme Court on Thursday stayed till March 19 the University Grants Commission (Promotion of Equity in Higher Education Institutions) Regulations, notified on January 23 after hearing a batch of pleas challenging the Commission’s controversial order. The new Promotion of Equity in Higher Education Regulations, 2026 had revised measures to tackle castebased discrimination in campuses by restricting grievance mechanisms only for SC, ST and OBC categories. “The 2026 UGC regulations on what amounts to castebased discrimination shall be kept in abeyance. The 2012 Regulations will continue. The provisions are prima facie vague and capable of misuse,” the court said. A two-judge bench of Chief Justice Surya Kant and Justice Joymalya Bagchi passed the order noting that the court was prepared to examine the constitutionality of the new regulations. The petitions before the court alleged that the UGC adopted a non-inclusive definition of caste-based discrimination and excluded certain categories from institutional protection. Several pleas challenged the regulations for excluding ‘general category’ students from the g rievance redressal mechanism. The court orally observed that if it does not intervene in the matter, it “will lead to a dangerous impact” and “divide the society”. In strong remarks during the hearing, the Chief Justice questioned Solicitor General Tushar Mehta, asking whether the country was becoming regressive. It also questioned why ragging had been left out of the scope of the new regulations, though it is a common form of harassment within educational institutions. Referring to provisions in the new regulations that contemplate separate hostels for different castes, the court said, “For God’s sake, don’t do this. We all used to stay together.” The Centre, UGC and others have been asked to file detailed responses by March 19. P4 Tharoor and Rahul smoke the peace pipe P R E E T H A N A I R @ New Delhi AMID reports of unease with the party leadership, Congress MP Shashi Tharoor on Thursday held a detailed meeting with party president Mallikarjun Kharge and Leader of Opposition in the Lok Sabha Rahul Gandhi, signalling a possible thaw in relations. According to sources, Tharoor was assured by Rahul that he would receive due recognition within the party going forward as both sides emphasised unity and coordination as the party gears up for the crucial Kerala assembly elections scheduled for April–May . The nearly two-hour meeting at Kharge’s Parliament office addressed concerns over Tharoor’s perceived sidelining within the organisation and his role in the party’s future strategy ahead of the assembly elections. Sources said Rahul conveyed to Tharoor that his services were crucial for the Congress and assured him that he would be included in the decision-making processes going forward. Tharoor’s main grievance stemmed from a sense that his contributions were not being acknowledged by the central or state leadership.