Kalachakra (Impacting People, Peace And Planet)
The tenth Raisina Dialogues 2025, from 17th to 19th March, 2025, organised by the Observer Research Foundation and the Ministry of External Affairs (MEA), was held in New Delhi. It is one of India’s most prestigious conferences, where, every year, many interesting geo-political and geo-economic developments are discussed.
The theme for this year’s conference was “Kalachakra: People, Peace and Planet”. One of the important discussions was on Tariffs and Sanctions, where the Minister of External Affairs of India, Dr S. Jaishankar, informed that India is engaged in three big trade negotiations with the EU, the UK and the USA. These negotiations will have a significant impact on India’s trade and commerce, as these countries are growth markets for India and are strategic partners of India with a large Indian diaspora. It would, therefore, be interesting to track developments in these cross-border trade negotiations. Companies in India will have to gear up for fresh competition, both in India and in these markets, with realignment of tariffs.
Let’s look at the Kalachakra affecting People, Place and Planet in different contexts.
PEOPLE
With an estimated 1.46 billion people1, India is not only the most populous country, but is also the largest democracy in the world. India accounts for 17.78% (2025) of the world population, but its share of the world GDP2 is 9.7% (2024). However, India has a demographic advantage, with the median age of its population at 28.8 years. It is also considered one of the fastest-growing economies in the world, with an estimated 6.5% growth in FY 2025. It is likely to become the 4th largest economy, surpassing Japan, in 2025.
1 https://www.worldometers.info/world-population/india-population/
2 https://www.worldeconomics.com/Share-of-Global-GDP/India.aspx
However, India’s GDP per capita (i.e., GDP/Population) puts it 140th in the world ranking. Even considering Purchasing Power Parity, India ranks 119th in the world ranking.3 Within the growth figures, we also need to address the inequality of income and regional disparities.
3 https://www.businesstoday.in
Thankfully, macro-economic data are favourable, and huge capital spending by the government on infrastructure will give a fillip to industrial and economic growth. However, we need to invest a lot in terms of time and effort in skill building, increasing the employability of youth, education and health care. This was also echoed in the Raisina Dialogues. Coming to the contribution of people to India’s growth, some structural changes are required to arrest the brain drain.
The recent survey by Kotak Private Banking of 150 wealthy individuals across India revealed a startling fact that “1 in 5 Ultra-HNIs surveyed are currently in the process of or plan to migrate, most of whom intend to reside in their chosen host country permanently while retaining their Indian citizenship. Professionals show a higher propensity to migrate than entrepreneurs or inheritors. Among those considering global migration, 69% cited smoothening of business operations as the key driver.”4
4 https://www.kotak.com/content/dam/Kotak/about-us/media-press-releases/2025/media-release-kotak-private-top-of-the-pyramid-report-2024.pdf
This emphasises the need to provide a conducive environment for ease of doing business for entrepreneurs to grow and excel. We need large industries for manufacturing and generating employment.
PEACE
With wars in various parts of the world, peace is elusive. Various kinds of wars are being fought today: physical (political), technological, ideological, economic (through currencies, tariffs, etc.) and so on. One would not be surprised to see the borders of many nations changing in years to come. In any case, borders are losing significance with technological and ideological wars. Social media is enough to create a desired narrative which can topple governments. Data and cyber security assume a lot of significance in this new world order. The use of AI may expedite the work, processes, etc., but may pose a big threat to National Security. Guarding invisible technological and financial borders is, perhaps, more important now than ever before. That’s where we have a positive role to play.
The Prime Minister of India categorically stated that India is not neutral in the Ukraine war, but is on the side of Peace. We have seen the devastating impact on the lives of people in war-torn countries. Only Peace can bring prosperity to the world.
PLANET
India believes in Vasudhaiva Kutumbakam (वसुधैवकुटुम्बकम्), meaning the whole Earth is a Family. During the G20 Presidency of India, it was translated to “One Earth, One Family, One Future” and was chosen as the Motto.
Planet Earth is facing many challenges, the primary of them being climate change. The recent earthquake in Myanmar and Thailand has proven the fragility of human edifices. Frequent changes in climate have impacted human and animal lives. Rising temperatures and melting glaciers are matters of concern. The use of warheads, burning forests, and rampant use of fossil fuels have worsened the situation.
In such a situation, reporting for ESG (Environmental, Social and Governance) assumes significance. “Environmental criteria examine how a company performs as a steward of the planet. Social criteria examine how a company manages relationships with employees, suppliers, customers, and the communities where it operates. Governance defines a set of rules and best practices, along with a series of processes that determine how an organisation is managed and controlled.”5
5 https://www.thecorporategovernanceinstitute.com/
In India, from FY 2023-2024, SEBI has mandated disclosures as per the updated Business Responsibility and Sustainability Reporting (BRSR) format for the top 1000 listed companies (by market capitalisation).6
6 Circular No.: SEBI/HO/CFD/CFD-SEC-2/P/CIR/2023/122 dated Jul 12, 2023
It would be necessary for companies to become more responsible and responsive to the environment in which they are operating. It would be interesting to see the impact these new regulations will generate in times to come. Practitioners of the ESG assurance and auditors of the concerned companies will need to keep track of developments in this field and equip themselves for conducting necessary enquiries, reporting and disclosures.
PROFESSIONAL DEVELOPMENTS
The Finance Act 2025 has introduced a new section 194T applicable w.e.f. 1st April, 2025, which mandates TDS on Payments of any sum (in excess of ₹20,000/- during the financial year) in the nature of salary, remuneration, commission, bonus or interest to a partner of the firm. It will create difficulties for those firms which decide remuneration based on profitability at the year-end, as TDS will be applicable even on ad-hoc withdrawal towards remuneration. Such far-reaching amendments resulting in increased compliance should have been discussed with stakeholders before being enacted.
Recently, the Supreme Court dismissed the SLP filed by the Central Board of Indirect Taxes and Customs against the judgment of the Bombay High Court in the case of Aberdare Technologies Private Limited &Ors. wherein the Hon. High Court had allowed manual or electronic corrections in claiming the input tax credit. The Apex Court held that “Human errors and mistakes are normal, and errors are also made by the Revenue. Right to correct mistakes in the nature of clerical or arithmetical error is a right that flows from right to do business and should not be denied unless there is a good justification and reason to deny benefit of correction. Software limitation itself cannot be a good justification, as software are meant to ease compliance and can be configured. Therefore, we exercise our discretion and dismiss the special leave petition.”
This is a welcome decision giving relief to taxpayers for genuine mistakes and errors. In yet another decision in the case of Radhika Agarwal, the Apex Court clarified and reiterated the important safeguards to be kept in place to ensure that provisions of arrest under the GST laws are not abused. Readers can refer to the detailed Article, as well as in-depth discussion in the “Decoding GST” column on this case, in the subsequent pages of this Journal.
In conclusion, we are living in an exciting time with Kalachakra moving rapidly impacting our profession, businesses, lives and Planet. We shall see many unprecedented developments in times to come, but who knows what is in store for us in the Kalachakra? Let’s hope that whatever comes is best for the People, Peace and Planet.
Best wishes to our readers for the New Financial Year and Festivals.
