Amit Shah on Pahalgam attack, Manipur crisis, China threat and Modi's governance philosophy

Union Home Minister
Amit Shah
, in an interview marking 11 years of the Modi government, spoke to Rahul Tripathi and Pranab Dhal Samanta on a range of issues — from the Pahalgam attack and the broader security situation to India's growth prospects and Modi's governance approach.
Excerpts:
What are your thoughts on the Pahalgam attacks and its impact on normalcy in J&K?
Our policy of zero-tolerance against terrorism is intact. What we have tried to do as a government is to address the root causes, be it in Kashmir, Naxal areas or the Northeast. For instance, 12 agreements have been signed in the Northeast. To tackle Naxalism, there's no option but to strike those with weapons. But, even today, the number of those who have surrendered is higher than those killed. We brought a lucrative surrender policy. Similarly, we went to the root causes in Kashmir. Firstly, no one can deny the provocation from Pakistan, role of the ISI and the Pakistan Army. This is a known fact. But why did the Kashmiri youth pick up weapons. We went into that question deeply. It emerged that the maximum number of youth armed themselves after the elections conducted by Indira Gandhi ji. Next, due to Article 370, a theory kept evolving that we are special and that we can even get independence. We closed that chapter of Article 370 and then peaceful elections ensued, followed by panchayat elections. The earlier hold of a few political families was broken and some 19,000 youth became sarpanch, zila adhyaksh, MLAs etc. So, a democratic process began. Plus, Kashmir has witnessed unprecedented development work since 2014. We achieved 100% saturation in all welfare schemes. Electricity shortage is almost over. Most villages are now connected. Many infrastructure projects like the Chenab bridge have taken off. All this also encouraged tourism. The Pahalgam attack is a temporary setback to tourism. I am confident that within a year or two, things will be back to normal.
What is the role of foreign terrorists and the extent of local participation?
In the past one and a half years, not a single Kashmiri youth has picked up weapons. This is an agreed figure among all Intelligence agencies. There has not been a single incident of stone pelting in the past three years. Also, there's not been a single funeral procession of a terrorist for the past four years. So, they are sending foreign terrorists. We have sent them a strong signal thrice already –– through a surgical strike, air strike and this time, we have gone deep inside Pakistan territory to hit them. And Modi ji has clearly said that Operation Sindoor is not over yet.
Does the new normal mean, India can get to wage war any time?
This is not the right interpretation. New normal means that what kind of activity or attack they do here, they will get a strong and disproportionate response from us. This is now the Indian government's policy.
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How many foreign terrorists are there in J&K?
It's very difficult to give an accurate figure of foreign terrorists because an assessment is yet to be made on how many got in during the melee and fight of Operation Sindoor. As for the whereabouts of particular terrorists, our fight is not against some specific terrorists, but all of them. Many killed in Operation Sindoor, for instance, were involved in the Mumbai attacks. This is anot fight against X or Y terrorist. This is a fight against terrorism, which includes every terrorist.
Has the delayed census not affected economic panning?
Nowadays there are many surveys done for planning. There was a time in the days of the British when census was the sole survey for economic planning. Not today. Plus, there's constant updation of the voters' list. On the basis of all this, new districts etc are made. Our government believes in timely conduct of census and it will be done by 2027.
How will you enumerate caste?
This is no rocket science. Already, every individual's religion is asked. Now, caste will also be asked.
What plans are afoot after the suspension of the Indus Waters Treaty?
We have five projects that we will start soon. We will link the waters of Indus and Chenab with Beas and take it to Ganganagar.There's no need to make reservoir dams. Actually, the mountainous terrain is not conducive for making big reservoirs. The best option is to first saturate the usage in J&K and then divert the excess water to Beas. For that, all we have to do is build a 160 km canal to link the rivers. Will this also bring water to Delhi? If it goes to Ganganagar, it will go via Delhi.
India is among the fastest growing economies but still short of 8% growth. Your thoughts.
In today's world, our growth cannot be very different from the global rates of growth. We will be in competition with the top-10 economies of the world, so growth rates will be in that range. Every economy experienced low growth after the pandemic. But not only did India maintain its growth, we have been the fastest growing economy for the past 7-8 years. When the calculation of 8% was made, it was in the context of the global economic performance then. Now, we are the fourth-largest economy in the world, aiming to become the third-largest. So, this speed can only be compared with the GDP of other countries.
While FDI flows have increased, there's also been significant exit. Your views.
We cannot be conservative on this front. Much of the outward movement is related with investment by Indian companies overseas. So, should Indian companies not become global? Let's not create a negative environment. With India emerging as a manufacturing destination, investment is moving with facilities of Indian companies located in India and elsewhere. We should, therefore, applaud the expansion of Indian companies. Since 2014, India has attracted $749 billion FDI, which is a143% increase when compared to $308 billion between 2003 and 2014. Forex reserves have doubled, rising to $654 billion from $309 billion .
Your views on local currency trade in the light of Donald Trump's position.
He may have issues but remember, no country can progress without hurdles. Ifeel trade in local currencies is today a requirement for many countries doing business with each other.
While India is ranked high on GDP, criticism is it's still low on per capita income.
How can someone make such wild allegations when in the last 11 years India has become the 4th largest economy from the 10th, rising from a size of $2.03 trillion to $ 4.19 trillion; when capital expenditure has risen from `. 1.9 lakh crore to `. 10.46 crore, when per capita income has risen from `. 68,572 to `. 133,488; when the growth of FDI inflow has been a phenomenal 143%, from $308 billion to $749 billion; when the average rate of inflation has reduced from 10.1% to 4.6%; electronics exports have jumped from $7.6 billion to $38.6 billion; when multi-dimensional poverty has reduced from 29.7% to 11.6%; when forex reserves double from $309 billion to $654 billion; when the speed at which highways are built has increased from 12 km to 21.3 km per day, when the number of airports has more than doubled from 74 to 162; when metro rail has increased from 248 km to 1000 km. Those who look at things from a Leftist and narrow perspective will always find ways to puncture India's growth story. In the banking sector, when the Modi government assumed charge, the NPA of banks was in two digits, but now it has reduced to 2.3%. As many as 55 crore new bank accounts have been opened in the last 11 years under the initiative made for financial inclusion. The total deposit held by these accounts is `. 2.61 lakh crore, and 56%, and 67% of these accounts are in the rural and semi-urban areas in which 55 ministries have transferred `. 44 lakh crore through DBT under 439 schemes. As many as 37 crore RuPay cards have been distributed. India's digital transactions now account for almost 50% of the total digital transactions. Under PM Modi, India's banking reforms & financial inclusion of the poor are a model for the world to study.
And the low ranking in Human Development Index?
That's because of the Congress legacy. They left 70 crore people in poverty. We have lifted 25 crore of them out.
What is the situation in Manipur?
We are trying to get both sides to talk. Look, whenever there's been ethnic violence, it takes time for things to mend. But I believe that from a law and order perspective, the situation has greatly improved. Will Vikas or caste be the main issue in the Bihar polls? What becomes an election issue is always a people's call. But I believe vikas (development) is a big issue for the people of Bihar.
Who is NDA's CM candidate?
Only time will decide who will be the Bihar. But what is clear is that we will fight this election with Nitish Kumar as chief minister.
Eleven years at the Centre, 14 years in Gujarat. What's your take on the Modi governance model?
The biggest feature of Modi ji's governance approach is that all schemes and plans are inspired from the ground, not imaginary. Next, instead of trying to carve out big new plans, he believes in first plugging gaps so that whatever has been done till now is better optimised. For instance, if you were making 20,000 homes till now, you now make 3.65 crore and we will increase by 3 crore homes. As a result, the problem of housing is solved. Likewise, by achieving 13 crore gas connections, the entire problem gets solved. The same is happening with drinking water and health. So, instead of solving issues in bits and pieces, to go for a final solution with complete saturation...this is a big shift under Modi.
How do you see your government's track record on reforms?
For easing investment, we have decriminalised over 3,400 laws, brought in a framework of policy continuity. We have created a healthy competition among states on manufacturing. Since 2014, we have reformed the taxation system, brought in faceless scrutiny. Simple slabs (5%-30%) without deductions have been introduced. Corporate taxes have been cut from 30% to 22%, it's just 15% for new manufacturing companies. Incentives worth Rs 1.46 lakh crore have been given in 14 sectors through PLI schemes.
How do you address regional disparity in growth?
You can't say this now. The Narendra Modi government has worked hard since 2014 to ensure the fruits of growth are spread evenly. Who could have imagined a `. 27,000-crore investment for a semiconductor plant in Assam. I head the Northeast Council and let me tell you the ground is ready for investment and growth. Remember, as a land mass, the Northeast is bigger than Uttar Pradesh.
Has GST helped?
The role of GST is providing symmetric development is an area which gets very little attention. Earlier, say a good was being manufactured in Gujarat and sold in Kolkata. The 12-16% transport cost was compensated by the high sales tax rates. Now, because of a common rate, the transport cost is extra, which is forcing business to invest in manufacturing locally. States like West Bengal, Uttar Pradesh, Odisha and others which were lagging in manufacturing are now benefiting. The earlier picture where only a few western states and Tamil Nadu were able to attract investment for manufacturing is undergoing a change because of GST. So, a businessman from Gujarat is now investing in UP or someone from Maharashtra is going to the Northeast. Many companies have expanded into these states. This is a big change.
What's the roadmap for GST reforms?
GST has made a big change in India's sales tax regime. Some 16 different taxes and cess have been collapsed into one tax. And I believe that the Narendra Modi government has, after resolving all the teething problems, now brought GST to the doorstep of the next stage of reforms. I can say that following all stakeholder discussions, we are now ready for the next stage of GST reforms.
How do you respond to criticism on lack employment opportunities?
Any honest assessment of a government's performance is always comparative. And I believe we have generated four times more employment than the UPA government. You cannot become a $4 trillion economy, have 300% growth in infrastructure, new avenues in manufacturing and not have generated employment.
Do you see the trend on freebies ebbing at any point?
Our political system is quite flexible. There will be a politically conscientious call on this. It's too early to say when and how. In BJP states, we are clear that freebies should not cross a certain percentage of the budget.
When will J&K get full statehood?
I have stated in Parliament that statehood will be given at the right time.
How will you calibrate economic ties with China, also a security threat?
India's economic relations with any country will depend on the global situation. No two countries can script their economic relationship in isolation from the rest of the world. But our priority is our boundary, our borders.
In an age of AI, you are betting on cooperatives, Why?
For countries will small population, GDP is the main economic factor. But for a country with 140 crore population like India, beyond GDP, we need to look at employment opportunities and contribution of the entire population to the GDP. Today, everyone has basic amenities. But there's an aspiration to achieve a better living standard. For this, small finance is needed. Cooperatives fill that gap.
How do you see geopolitical turbulence impacting India's prospects?
India is not just the safest and best, but the only place to invest. We are a democracy with transparent policies, a big consumer market. We have the brain power and skills to offer. I believe this turbulence is not a hurdle for India. We should see it as an opportunity.

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