FOLLOW US: @TheStatesmanLtd @thestatesmanltd thestatesman1875 www.thestatesman.com People’s Parliament, Always in Session India’s National Newspaper since 1818 | Pages 12 | ` 5.00 | KOLKATA | NEW DELHI | MUMBAI | BHUBANESWAR | LUCKNOW | Annamalai breaks with BJP, announces plans for new party Tariff reboot PERSPECTIVE Purple revolution a model for rural communities Page 4 Page 6 BRIEFLY Firhad Hakim resigns as Kolkata Mayor: Page 7 New Delhi, 5 June Govt announces major reforms to boost foreign investment: New Delhi: The Central Government on Friday announced a series of reforms aimed at attracting greater foreign investment into India’s equity and government securities markets, while strengthening the country’s position as a leading global investment destination. The measures, announced by the Ministry of Finance, are expected to make investment in Indian markets easier, improve market access for overseas investors and encourage long-term foreign capital inflows. As part of the reforms, individual Persons Resident Outside India (PROIs) will now be allowed to invest in equity instruments of listed Indian companies through the Portfolio Investment Scheme, a facility that was earlier available only to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs). Page 10 I ndia is poised to sustain its position among the world’s fastest-growing major economies, with Real Gross Domestic Product (GDP) projected to expand by 7.7 per cent in FY 2025-26, according to the latest estimates released by the Ministry of Statistics and Programme Implementation (MoSPI). Nominal GDP is expected to grow by 8.9 per cent during the fiscal year. The estimates indicate broad-based economic strength, with Real Gross Value Added (GVA) projected to rise by 7.9 per cent, while Nominal GVA is expected to grow by 9.1 per cent in FY 2025-26. The growth story is being led by the secondary and tertiary sectors, which are estimated to register robust expansions of 8.8 per cent and 9.3 per cent, respectively, at constant prices. PM Modi hails GDP expansion in FY2025-26: New Delhi: Prime Minister Narendra Modi on Friday welcomed India’s latest GDP data, calling it proof of economic resilience, reform impact and the hard work of 140 crore Indians. In a post on social media platform X, Mr Modi said: “India’s growth momentum remains strong!” He pointed to the 7.7 per cent GDP growth for FY 2025-26 and 7.8 per cent in Q4, saying these numbers “reflect the inherent strength of our economy, the success of reforms and the hard work of 140 crore Indians.” The PM reiterated the government’s focus on speeding up reforms and creating opportunities, especially for youth: “We shall leave no stone unturned to further ‘Ease of Living’, ‘Ease of Doing Business’ and increase opportunities for our youth.” These sectors have emerged as key drivers of economic activity, reflecting sustained industrial output and strong performance across services. The primary sector is also expected to post a healthy growth rate of 3.2 per cent, supported largely by positive contributions from the agriculture and fisheries segments. Hyderabad, 5 June The Telangana Health Department has been put on high alert after the number of suspected Ebola cases at Gandhi Hospital in Hyderabad rose to two amid heightened surveillance over the spread of the virus in Central African countries. According to hospital officials, a 36-year-old Sudanese national, identified as Mohammed Yagouch Ahmed, arrived in Hyderabad early India begin rebuild as Afghanistan test their growth in New Chandigarh Page 12 Among individual industries, the manufacturing sector, along with trade, repair, hotels, transport, communication and services related to broadcasting, as well as financial, real estate and professional services, is projected to achieve double-digit growth at both constant and current prices during FY 2025-26, underscoring the resilience of India’s productive and service-oriented sectors. On the demand side, economic activity continues to be buoyed by strong domestic consumption and investment. Both Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) are estimated to grow by more than 7.5 per cent during the fiscal year, highlighting healthy consumer demand and sustained capital formation. The fourth quarter of FY 2025-26 is expected to reinforce the economy’s positive trajectory. Real GDP growth is estimated at 7.8 per cent, while Nominal GDP growth is projected at 9.1 per cent during the January-March period. Similarly, Real and Nominal GVA are estimated to grow by 7.9 per cent and 9.9 per cent, respectively, in the fourth quarter. The secondary and tertiary sectors are again expected to be the principal growth engines during the quarter, driving both real and nominal GVA expansion. Investment activity remained particularly strong, with GFCF recording a growth rate of 10.8 per cent, while PFCE is estimated to grow by 7.1 per cent at constant prices in the fourth quarter, indicating continued confidence among businesses and consumers alike. Three civilians killed, houses torched in fresh violence in Manipur STATESMAN NEWS SERVICE Imphal, 5 June Three civilians were killed and at least seven houses set ablaze in an attack today at Loibol Khullen village, Kangpokpi district, by unknown armed persons in a fresh upsurge of violence in Manipur. Police said armed assailants reportedly targeted the village, leading to an exchange of gunfire and widespread panic among residents. The deceased have been identified as Letkhongam Haokip, his wife Tinmary Haokip, and Jangminlal Haokip. The incident occurred in the Keithelmanbi region, a sensitive area along the border of Kangpokpi and Imphal West districts that has witnessed repeated episodes of violence since the outbreak of the ethnic conflict in May 2023. Authorities have not yet officially confirmed the identity of the attackers or the exact circumstances leading to the clash. Friday’s killings come less than a week after another arson incident in Kangpokpi district, where several houses in Kharam Vaiphei village were allegedly torched by armed miscreants, underscoring continuing tensions in the hill district. A series of kidnappings of people belonging to Kuki and Naga communities was reported in May and stirs demanding the release of 20 abducted persons in the district are still going on. (Representational image) Adhikari holds Delhi consultations RBI MPC keeps repo rate unchanged at 5.25 ahead of Cabinet portfolio allocation pc; revises GDP growth projection to 6.6 pc STATESMAN NEWS SERVICE New Delhi, 5 June West Bengal Chief Minister Suvendu Adhikari paid a whirlwind visit to New Delhi on Friday, meeting senior Bharatiya Janata Party leaders as the newly formed state government moves closer to finalising the allocation of portfolios among the 35 ministers inducted into the expanded Cabinet. According to sources, Mr Adhikari held discussions with BJP national president Nitin Nabin and BJP national general secretary Sunil Bansal, with deliberations focusing primarily on the distribution of key ministerial responsibilities in the West Bengal government. Sources familiar with the discussions said that while broad agreement has been reached on most departments, consultations have continued over a handful of significant portfolios, including School Education and Higher Education, prompting a slight delay in the formal announcement of responsibilities for the newly inducted ministers. The portfolio allocation, which was initially expected earlier this week, is now likely to be finalised within days after the party leadership Hyderabad: Two suspected Ebola cases admitted to Gandhi Hospital STATESMAN NEWS SERVICE Saturday, 06 June 2026 Indian economy sustains momentum; real GDP expected to grow 7.7 pc in FY26 STATESMAN NEWS SERVICE Kolkata: Ending days of speculation, Kolkata Municipal Corporation (KMC) Mayor Firhad Hakim resigned on Friday. “In accordance with the provisions of KMC Act 1980, I hereby tender my resignation from the office of Mayor of Kolkata, with immediate effect,” Mr Hakim, a prominent Trinamul Congress leader, said in a letter addressed to the civic body’s chairperson Mala Roy. Mr Hakim had been serving as the 38th mayor of Kolkata since 3 December 2018. He had replaced Sovan Chatterjee who had stepped down from the post because of personal reasons. Page 2 | SPORTS NATION EDITORIAL SILIGURI on Thursday. During routine medical screening at Rajiv Gandhi International Airport, Shamshabad, authorities detected symptoms suspected to be linked to the Ebola virus. The passenger was immediately shifted to Gandhi Hospital and admitted to a special isolation ward for treatment and observation. Doctors said Ahmed is reportedly a student at an educational institution in Hyderabad. Another individual who came into close contact with him has also been placed under special observation and is undergoing medical tests. Dr Sunil Kumar, Ebola nodal officer at Gandhi Hospital, said blood samples collected from the patient had been sent to the Centre for Cellular and Molecular Biology (CCMB), Hyderabad, for preliminary testing and would subsequently be forwarded to the National Institute of Virology (NIV), Pune, for confirmation. Final test results are expected within a week. Health officials stated that all precautionary measures are being taken and a 20-bed special isolation ward has been kept ready at Gandhi Hospital to handle any emergency situation. Authorities urged the public not to panic but advised people experiencing symptoms such as fever, severe fatigue or bleeding to seek immediate medical attention. (Representational image) completes consultations on key assignments. Mr Adhikari, who assumed office after leading the BJP to a historic victory in West Bengal, travelled to the national capital after attending official engagements in Kolkata during the morning. He spent several hours in Delhi meeting senior party functionaries before returning to Kolkata later in the evening. Party insiders described the visit as part of the BJP's effort to ensure smooth coordination between the state government and the party's central leadership during the crucial early weeks of the administration. The expanded cabinet, comprising 35 newly inducted ministers, is expected to play a key role in implementing the government’s governance agenda across sectors. STATESMAN NEWS SERVICE New Delhi, 5 June The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has unanimously decided to keep the repo rate unchanged at 5.25 per cent while maintaining a neutral policy stance. The Liquidity Adjustment Facility (LAF) rate also remains unchanged at 5.25 per cent. The Standing Deposit Facility (SDF) rate continues at 5 per cent, while the Marginal Standing Facility (MSF) rate and the Bank Rate remain at 5.50 per cent, RBI Governor Sanjay Malhotra announced on Friday while unveiling the policy decision. The RBI has revised its GDP growth projection for 2026–27 to 6.6 per cent from the earlier estimate of 6.9 per cent. Quarterly growth projections stand at 6.6 per cent for Q1, 6.3 per cent for Q2, 6.5 per cent for Q3, and 6.8 per cent for Q4. “The prolonged global supply-chain disruptions, heightened volatility in global financial markets, and weatherrelated shocks continue to pose downside risks to the domestic growth outlook,” Governor Malhotra said. The Governor noted that headline Consumer Price Index (CPI) inflation edged up to 3.4 per cent in March and 3.5 per cent in April 2026, primarily due to higher food inflation. “Fuel inflation remained modest as retail fuel prices largely remained unchanged in March and April despite the sharp spike in international energy prices,” he said. Core inflation, excluding food and fuel, remained unchanged at 3.7 per cent between January and April. Excluding precious metals, core inflation was significantly lower at 2.1–2.2 per cent. According to the Governor, this indicates that input-cost pressures, reflected in the sharp rise in the Wholesale Price Index (WPI) in April, have not yet fully translated into CPI inflation. UN warns Artificial Intelligence boom could exact heavy environmental toll by 2030 STATESMAN NEWS SERVICE New Delhi, 5 June The rapid expansion of artificial intelligence (AI) could come at a significant environmental cost, with a new United Nations report warning that the rising energy demands of AI systems may place additional pressure on global resources. According to the report, AI-related energy consumption could double by 2030, potentially accounting for around 3 per cent of the world's total electricity use. The resulting carbon emissions could reach levels comparable to the United Kingdom's current emissions, while water consumption for cooling data centres could exceed the annual drinking water requirements of the global population. The report highlights that AI's growth could follow the economic principle known as the "Jevons Paradox", wherein improvements in efficiency lead to increased overall consumption rather than a reduction in resource use. Named after economist William Stanley Jevons, the paradox was first observed in 19th-century England, when greater efficiency in coal use resulted in higher overall coal consumption as costs fell and demand expanded. The UN report suggests that as AI models become cheaper and more accessible, their widespread adoption could spur new applications and significantly increase usage, potentially offsetting the benefits of improved efficiency. Data centres already consume vast amounts of energy. Last year, their electricity consumption was estimated to be equivalent to that of Saudi Arabia, one of the world's largest electricity consumers. If AI-driven energy demand doubles by 2030, the resulting carbon footprint could require nearly 6.7 billion trees grown over a decade to offset the emissions. The report further estimates that data centres could require approximately 9.3 trillion litres of water and land covering an area nearly ten times the size of Mexico City to support future AI infrastructure. Beyond environmental concerns, the report points to growing global inequalities in AI infrastructure. Only 32 countries currently host AI-specific cloud infrastructure, with nearly 90 per cent of that capacity concentrated in the United States and China. It warns that countries lacking AI infrastructure may face a widening digital divide while simultaneously bearing environmental costs associated with mineral extraction, supply chains and electronic waste. The report identifies two key factors shaping AI's environmental footprint: the scale of AI deployment and the nature of the tasks being performed. Text generation, coding, image creation and video processing each require varying levels of computing power and energy. It also notes that the choice of AI models plays a crucial role, as different systems carry varying energy demands and environmental impacts. Calling for responsible AI development, the UN report emphasises the need for comprehensive value-chain governance, covering everything from mineral sourcing and infrastructure development to recycling and safe disposal.