New Delhi: India termed on Tuesday’s trade discussions with the US “positive” and “forward-looking” and said the two sides decided to intensify efforts to achieve early conclusion of a mutually beneficial trade agreement. The US described the talks “positive” for the proposed bilateral trade agreement (BTA). A team of American trade officials led by Brendan Lynch, assistant US trade representative for South and Central Asia, met Indian trade negotiators in New Delhi to discuss India-US trade ties including the proposed BTA. This was the first in-person meeting after President Donald Trump imposed penal tariffs on New Delhi over purchases of…

Prime Minister Narendra Modi on Tuesday held a telephonic conversation with Danish Prime Minister Mette Frederiksen, during which the latter reaffirmed Denmark’s strong support for the early conclusion of a mutually beneficial India-European Union Free Trade Agreement (FTA). The discussion also touched upon strengthening the India-Denmark Green Strategic Partnership, covering key sectors including trade, investment, energy, water management, innovation, food processing, and sustainable development. Both leaders emphasized their commitment to deepening bilateral cooperation in these areas. Prime Minister Modi conveyed his best wishes for the success of Denmark’s ongoing Presidency of the Council of the European Union and its current…

India and US will hold their first in-person trade talks since President Donald Trump imposed penal tariffs on New Delhi over purchases of Russian oil effective August 27. A delegation of US trade officials is visiting New Delhi on Tuesday, said Rajesh Agrawal, special secretary, Department of Commerce. They will be led by Brendan Lynch, assistant US Trade Representative for South and Central Asia. “We will be holding talks tomorrow to see what will be the future” of trade negotiations, he said. The meeting will only look at the course of action to be taken on trade-related issues and is…

India’s exports to the US declined by around 14 per cent on a month-on-month basis to USD 6.86 billion in August when the 50 per cent tariffs on Indian goods by the Trump administration came into effect in two tranches. Indian exports to the US stood at USD 8 billion in July. The US, however, continued to remain the top export destination for Indian goods in August as well as in the five months of the current fiscal year. On a yearly basis, the exports to the US in August were up 7.15 per cent, according to the Commerce Ministry…

The International Finance Corporation (IFC), the World Bank Group’s private sector arm, plans to double its annual commitments in India to $10 billion by 2030, deepening its engagement with states, managing director Makhtar Diop said. “An economy of this size, growing at this speed, requires us to increase both our ambition and commitment,” Diop told ET in an interview. IFC, which counts India as the largest investment destination in its portfolio, committed $5.4 billion in FY25, including $3.4 billion in mobilisation. It aims to add about $1 billion each year to reach the $10 billion target. Urbanisation, green energy and…

India’s CSR regime, introduced in 2013, was designed to align private philanthropy with national priorities. In just a decade, it has mobilised one of the world’s largest corporate-backed social funds, crossing INR 34,900 crore in FY 2023–24. Much of this has gone into education, health, and rural development—areas where India has long faced deficits. Yet, despite these gains, CSR remains under utilised in one critical domain: policy research on national and international issues. Without investments in evidence, analysis, and knowledge creation, India risks falling short of its aspiration of becoming truly Aatmanirbhar. This money has indeed changed lives. Education and…

A chart that I recently came across shook me to the core. It revealed that China generates 2.5x more electricity than all of US, and that it plans to add a Germany every year in terms of electricity generation. Elon Musk noticed it too, posting: “Solar power in China will exceed ALL sources of electricity combined in the USA in 3 to 4 years. Wake up call!” The chart inspired me to go down the China vs US rabbit hole again. With tech shaping the future, there are four technologies that will decide who wins it—energy, mobility, intelligence and war.…

Post-sale discounts given by manufacturers to dealers intended solely for competitive pricing and promoting sales will not be subject to GST, the Central Board of Indirect Taxes and Customs (CBIC) said. However, GST would be payable on such discounts if the manufacturer and the dealer have entered into an agreement under which the latter conducts promotional activities like co-branding, advertising campaigns or sale drives on behalf of the manufacturer. Issuing a circular regarding treatment of secondary or post-sale discounts under Goods and Services Tax (GST), the CBIC said it has received representations seeking clarifications on the issue. When dealers receive…

The government plans to set up a Rs 20,000-crore risk guarantee fund for the infrastructure sector to boost investments, people privy to the development said. It is in talks with stakeholders, including public and private financial institutions, for the proposed fund that will cover losses caused by policy uncertainty and other non-commercial reasons, they said. The fund is expected to increase credit flow into big infrastructure projects by encouraging lenders to take larger exposures. Managed by National Credit Guarantee Trustee Company, it will underwrite development risks of new projects. Discussions on Risk PremiumThe government will provide the initial corpus. “The…

New Delhi: India and the European Union are working with sincerity and commitment to finalise a comprehensive and balanced free trade agreement that will benefit businesses and consumers on both sides, Commerce and Industry Minister Piyush Goyal said on Friday. Addressing the Automotive Component Manufacturers Association (ACMA) here, he said such an agreement cannot be a one-sided arrangement, as every negotiation involves a certain degree of give and take to ensure fairness and balance. Goyal said, “he has long hours of jostling and fighting” with the EU Trade Commissioner Maros Sefcovic on the proposed pact, but “I can tell you,…

Mumbai: Several senior professionals, equity partners of at least two Big4 firms, members of well-known partnership ventures as well as some of the retired senior persons have received scrutiny notices from the Income tax (I-T) department questioning the amounts on which no tax was paid by them. Most of these persons served with the notices for the financial year 2023-24 are understood to have shown these earnings as ‘exempt income’ in their I-T returns as is allowed under regulations. Tax-exempt income (EI) can be of different types: profits shared by a firm to partners, agricultural income, disbursement of retirement benefits…

Adani group has stopped accepting vessels that are sanctioned by the European Union, U.S. and Britain at all of its ports, sources said and orders issued by Adani Ports and Logistics show. No immediate comment was available from Adani. Adani, which operates 14 ports, has issued multiple orders with similar contents. “To safeguard the legal and commercial interests of the Port, we hereby emphasize that sanctioned vessels are not accepted,” it said in the orders seen by Reuters. India, the biggest buyer of seaborne Russian oil, has been tightening surveillance of vessels and transactions involving Russian supplies. Live Events Russian…

New Delhi: The Employees’ Provident Fund Organisation (EPFO) is likely to deliberate next month on the EPFO 3.0 initiative, which is aimed at enabling bank-like seamless transactions, including withdrawal of a certain proportion of provident funds through ATMs or using them for UPI payments. Besides, the EPFO central board of trustees could also consider raising the minimum pension from Rs 1,000 per month to Rs 1,500-Rs 2,500, a long pending demand of the trade unions. The meeting, under the chairmanship of labour and employment minister Mansukh Mandaviya, will be held on October 10-11 though the agenda is yet to be…

New Delhi: In a week’s time, chances are high that India and Oman will ink a Free Trade Agreement (FTA) to boost trade and commerce between both countries, Minister of Commerce Piyush Goyal said on Wednesday. “Oman and India are talking on an FTA, and it may happen in a week,” he said while addressing the ‘FICCI LEADS’ event in New Delhi, adding that efforts will be made to expedite the discussion. The FTA would be under the Comprehensive Economic Partnership Agreement. Negotiations for a comprehensive trade deal between India and Oman, which commenced in 2023, have been concluded recently.…

A long-overdue reduction in India’s consumption taxes is yet to take effect, but Prime Minister Narendra Modi has already hailed it as the nation’s “biggest reform” since independence in 1947. The private sector is fully on board with the plan, with several carmakers announcing price cuts and some asset managers describing the move as a “landmark reset.” But if the change is as dramatic as it’s cracked up to be, why is the stock market not impressed?The tweaks to the eight-year-old goods and services tax were announced on Sept. 3, though Modi had flagged them as a “Diwali gift” in…

Moody’s Ratings on Tuesday said the recent changes in Goods and Services Tax (GST) rates will provide fiscal support to households and help stimulate private consumption, though it will reduce government revenues. The rating agency noted that the GST Council’s decision last week to move to a two-slab structure of 5 per cent and 18 per cent, with a special rate of 40 per cent for tobacco and ultra-luxury goods, marks a significant shift. The new structure will take effect from September 22, except for tobacco products, which will continue to attract 28 per cent GST plus cess until December…

India and New Zealand held the Foreign Office Consultations here in the national capital on Monday, focused on several aspects of the bilateral relationship such as defence, trade and education, the Ministry of External Affairs (MEA) said on Monday. Sharing the details in a post on X, the MEA said that the Foreign Office Consultations were led by Secretary (South) Neena Malhotra and Deputy Secretary (Asia Group & Americas) Grahame Morton. MEA underscored that the consultations reaffirmed the commitment to deepen ties and continue with the momentum of high-level exchanges. “India-New Zealand Foreign Office Consultations led by Secretary (South) Dr.…

India and Israel signed a Bilateral Investment Agreement (BIA) on Monday. The treaty was signed by Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich. The BIA was signed in the presence of the Israeli delegation comprising of senior officers from the Israeli Government and senior officers from India. “The bilateral investment agreement that I signed today with the Indian Minister of Finance gives a strong tailwind for private companies to come and invest in each other’s economies…Indian companies can feel completely secure investing in Israel and Israeli companies can feel secure investing in India…,” Smotrich told ANI. “The…

New Delhi: India is readying a big-ticket infrastructure push, focusing on large projects with long gestation periods. Officials said mega projects like bullet train corridors, large shipbuilding yards, multiple ports and cess control highways, in line with the infrastructure vision for Viksit Bharat 2047, will be given on fast track. After the big-ticket goods and services tax reform, the Centre is keen to give impetus to infrastructure creation to further support growth. The Indian economy grew 7.8% in the first quarter and the government wants to ensure that growth remains on track amid geopolitical risks and US tariff pressures. Ministries…

India and Israel are likely to sign a bilateral investment treaty during the upcoming visit of Israeli Finance Minister Bezalel Smotrich this week, while laying the groundwork for a free trade agreement (FTA) to boost trade between the two countries, according to sources. Smotrich will be on a three-day visit to India next week between September 8 and 10, during which he will meet Indian Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal and Minister of Housing and Urban Affairs Manohar Lal Khattar. Besides, the Israeli Finance Minister will also visit Mumbai and the GIFT City in Gandhinagar.…

Rationalisation of GST rates along with Income Tax relief in the 2025-26 Budget will take India’s economy “to another level”, Union minister Ashwini Vaishnaw said on Saturday, stressing that reforms in indirect taxation are unrelated to US tariffs. “The preparation for GST reforms began about one-and-a-half years ago, well before the US elections. This was part of Prime Minister Modi’s clear goal to reform, perform and transform. The new GST regime will mark the start of a transformation journey for the country,” Vaishnaw said at a press conference at the BJP headquarters. On Donald Trump’s tariffs, Vaishnaw said, “They have…

Calling the landmark GST overhaul a ‘people’s reform’, Finance Minister Nirmala Sitharaman on Saturday said that rationalisation of rates for a wide swath of products will benefit every family, boost consumption, and bolster the economy. In an interview to PTI, the Finance Minister said she will personally monitor passing on of goods and services tax (GST) rate cuts in the form of price reduction but hastened to add that industry has shown positivity towards such cuts. Within days of the decision, from car makers to public sector insurance companies and shoe and apparel brands have already announced significant price cuts…

The Centre may introduce a bill in the winter session of Parliament to impose a levy on tobacco and tobacco products that would replace the goods and services tax (GST) compensation cess on such sin goods, said people familiar with the matter. The current compensation cess on these items, on top of the 28% GST rate, may continue for at least three months to enable the Centre to fully repay the loans taken to compensate states against their losses due to their adoption of the new indirect tax regime eight years ago, they said. The winter session of Parliament usually…

With the government cutting GST rates on nearly 400 goods and services, companies across industries are preparing to update prices and pass on the benefits to consumers by the September 22 implementation date, The Times of India (TOI) reported. Under GST rules, the tax rate is fixed at the time of invoicing. This means products already sent to distributors before September 22 carry old tax rates. Adjusting those requires coordination across manufacturers, wholesalers, and retailers. “Trade promotions and schemes may need recalibration. Distributors might seek credit adjustments for inventory purchased at higher GST rates. Companies also need to update ERP…

Around one-fourth of items, mostly essential and household goods, in India’s inflation basket will be taxed at 5% following the goods and service tax cuts announced by the Centre on Wednesday, compared with 12% or 18% earlier. Combined with a reduction in tax rate on several other items to 18%, this will lead to a moderation of around 50-90 basis points (0.5-0.9 percentage point) in inflation over the next 12 months, economists said.These items account for around 13% weight in the Consumer Price Index. An analysis shows that 22-28% of the items in the Consumer Price Index (CPI) will be…

PM’s Economic Advisory Council member Sanjeev Sanyal explains the thought process behind the sweeping GST reforms. Effective September 22, GST rates and slabs have been rationalised, reducing four slabs to just two, with key exemptions for insurance, medicines, and essential goods. Sanyal highlights why the timing was right, how reforms have evolved since GST’s 2017 launch, and why simplification boosts long-term growth. He addresses opposition concerns on revenue loss, explains the benefits for the middle class and farmers, and places the reforms in India’s broader global economic positioning. Watch this detailed interview for insights into the next-generation tax reforms and…

New Delhi: India’s service activity raced to a 15-year high of 62.9 in August, from 60.5 in July, as robust demand spurred a rush of new orders, showed a private survey released on Wednesday. The HSBC India Services PMI Business Activity Index, compiled by S&P Global, was 60.9 in August 2024. Survey respondents attributed the growth to demand buoyancy, efficiency gains, and higher inflows of new business. “India’s services PMI Business Activity Index reached a fifteen-year high last month, from 60.5 in July to 62.9 in August, on the back of surging new orders,” said Pranjul Bhandari, India chief economist…

The government has set up a committee to examine the tax and export clearance issues being faced by manufacturing units and suggest measures to further streamline the system amid high tariffs imposed by the US, an official has said. The committee includes representatives from the finance ministry, Department for Promotion of Industry and Internal Trade (DPIIT), Department of Commerce, Directorate General of Foreign Trade (DGFT), and the RBI. It also has special invitees from industry chambers, Federation of Indian Export Organisations, export promotion councils, and consultancy firms. The official said the committee will examine the existing export-related tax structures (both…

Commerce and industry minister Piyush Goyal on Tuesday expressed hope India would conclude the proposed bilateral trade agreement (BTA) with the US this fall or by November. Trade negotiations with the European Union are at an advanced stage and relations with China are “returning to normal” as border tensions ease, the minister said. “We’ve had a little bit of a geopolitical issue overtaking trade issues in our negotiations with the US. I do hope things will get back on track soon and will conclude a bilateral trade agreement by fall, November or so, as was discussed by our two leaders…

India is expected to purchase a record volume of cotton from farmers in the upcoming season, as domestic prices face pressure from cheaper imports and weakening demand following hefty U.S. tariffs on textile exports, industry officials told Reuters. Cotton consumption in the world’s second-largest producer has slowed, with exporters reporting a sharp decline in orders from the United States, which accounts for nearly 29% of India’s $38 billion in annual textile exports. “Demand has slowed down, and that’s hurting the industry. In this kind of market, farmers are unlikely to get the promised support price for their cotton,” Atul Ganatra,…

August saw a 4.3% year-on-year increase in power demand to about 150.5 billion units despite torrential rains lowering cooling requirement in the country. A government official attributed the increase to a lower base. “There was subdued demand in August 2024,” said a government official, who did not wish to be identified. In July, power consumption in the country was 153.6 billion units. Peak power demand in August increased to 229.7 GW compared with 217 GW last year. At the same time, coal stocks at plants depleted by nearly 4 million tonnes in August to 50.3 million tonnes at month-end, led…

Prime Minister Narendra Modi’s planned GST cuts are set to bring relief to consumers and give a boost to sales of everyday goods and electronics ahead of the festive season.The government is planning to cut the goods and services tax (GST) by at least 10 percentage points on nearly 175 products, ranging from talcum powder, toothpaste, and shampoo to hybrid cars and consumer electronics, Reuters reported, citing two sources familiar with the matter. Under the proposal, GST on personal care items such as talcum powder, toothpaste, and shampoo could drop from 18% to 5%, a move expected to benefit companies…

Mumbai: India’s central bank has preferred to increase its gold holdings over US Treasury bills to bolster foreign exchange reserves, showed the latest US Department of Treasury and Reserve Bank of India (RBI) data, reflecting a broader worldwide trend to diversify national savings beyond the greenback. India’s investments in US T-bills fell in June compared with ayear ago while its gold holdings rose during the same period. Still, New Delhi remains among the top 20 investors in US T-bills, ahead of Saudi Arabia and Germany. Its holdings stood at $227 billion in June 2025, albeit lower than $242 billion in…

The loss incurred due to the imposition of reciprocal tariffs on Indian textile exports to the United States (US) may be offset by a surge in exports to the United Kingdom (UK), buoyed by the recently concluded India-UK Free Trade Agreement (FTA), said CareEdge Ratings in a report. The report said that the ongoing FTA negotiations with the European Union are expected to open additional avenues, signalling a strategic realignment of India’s textile trade landscape. The India-UK FTA is a game changer for India’s Readymade garments (RMG) and home textile sectors, creating a level-playing field vis-a-vis key competing nations for…

The finance ministry has issued a notification paving the way for quick implementation of 100% foreign investment in the insurance sector once it receives parliament approval. As per the notification, the Indian Insurance Companies (Foreign Investment) Amendment Rules, 2025, seek to replace the existing limit of 74% foreign investment with “as stipulated by the Insurance Act, 1938”. “In the principal rules, in rule 3, the words ‘to exceed 74% of the paid-up equity capital of such Indian insurance company’ shall be substituted with the words ‘to exceed the limit as stipulated by the Insurance Act, 1938’,” said the notification issued…

The bilateral trade between India and China has been growing at a healthy rate, but the trade gap remains sharply tilted in Beijing’s favour. India has time and again flagged its concern over the ballooning trade deficit and the non-trade barriers faced by Indian goods in the Chinese market. On August 29, Prime Minister Narendra Modi said it is important for India and China to work together to bring stability to the world economic order as he asserted that New Delhi is ready to advance bilateral ties from a strategic and long-term perspective based on mutual respect, mutual interest and…

The Central government’s fiscal deficit till July in this financial year widened to 29.9% of the annual target against 17.2% a year before, thanks to a front-loading of expenditure amid a contraction in the net tax mop-up, showed the official data released on Friday. Expenditure, especially on capital projects, had faltered in the initial months of the previous fiscal owing to the usual administrative slowdown around the general election. Between April and July this year, revenue spending increased 17.1% to ₹12.17 lakh crore. Capital expenditure surged 32.8% to ₹3.47 lakh crore, as the government kept betting on its high multiplier…

India is drawing strong support from Western experts as US President Donald Trump signals a tougher, confrontational turn in Washington’s policy towards New Delhi. Indications that the Trump dispensation is hell-bent on punishing India aggressively came when US treasury secretary Scott Bessent on Thursday urged Europe to align with Washington and crank up tariffs on India. “We could use a more fulsome assist from our European partners… I don’t see them threatening tariffs on the Indians,” Bessent complained in a Fox News interview, cranking up pressure on the EU, with which New Delhi is trying to finalise a free trade…

Factory jobs are paying better, with the average pay per person rising by 28.9% — from Rs 2.8 lakh in 2018–19 to Rs 3.7 lakh in 2023–24. Across states and UTs, Sikkim leads with an average pay of Rs 7.1 lakh — nearly double the national average — according to an analysis of data from the Annual Survey of Industries. Over the past six years, employment in the country’s manufacturing sector has grown by 20.3%, with Uttar Pradesh recording the highest increase. ANOUSHKA SAWHNEY takes a look: WHICH STATE PAYS THE MOST? AVERAGE EMOLUMENTS PER PERSON ENGAGED CHANGE IN TOTAL…

The statistics and labour ministries should work together to assess the impact of PM Viksit Bharat Rozgar Yojana, which aims to create over 3.5 crore jobs in the next two years, said labour and employment secretary Vandana Gurnani on Thursday. Speaking at the Data User Conference on Periodic Labour Force Survey (PLFS) organised by the statistics ministry, Gurnani said, “We would like to partner with ministry of statistics and programme implementation (MoSPI) to understand the impact of this new initiative, whether this will lead to growth in jobs.” Prime minister Narendra Modi announced the scheme on August 15, with an…

New Delhi: India’s inflation index is likely to be revised every five years, statistics ministry secretary Saurabh Garg said on Wednesday. “The Consumer Price Index (CPI) series revision will be done in not more than five years,” the secretary said at a seminar organized by the Centre for Social and Economic Progress (CSEP). He said the Household Consumption Expenditure Survey (HCES), on which weight of items is based, will be conducted every three years. The ministry of statistics and programme implementation (MoSPI) will release the new CPI series in the first quarter of 2026, with 2024 as the base year.…

The Union Cabinet on Wednesday approved the restructuring and extension of the Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme till March 31, 2030, with a total outlay of Rs 7,332 crore. The decision was taken at a meeting chaired by Prime Minister Narendra Modi, an official statement said. It said the first tranche loan limit has been raised from Rs 10,000 to Rs 15,000 and the second from Rs 20,000 to Rs 25,000, while the third tranche remains at Rs 50,000. Street vendors repaying their second loan on time will be eligible for a UPI-linked RuPay credit card…

The US’ 50% tariffs on India come into effect today, with labour-intensive sectors expected to bear the brunt. ET looks at India’s trade with the US and how it fares viz-a-viz its competitors. India’s top 10 exports (2024-25, IN $ BN)

Apex exporters body FIEO on Tuesday expressed serious concerns over high US tariffs on Indian goods and said that textiles and apparel manufacturers in Tirupur, Noida, and Surat have halted production amid worsening cost competitiveness due to these steep duties. The US duties on Indian goods will increase to 50 per cent from August 27. The move will severely disrupt the flow of Indian goods to its largest export market, Federation of Indian Export Organisations (FIEO) President S C Ralhan said. He described the development as a setback and stated that it can severely impact India’s exports to the US,…

India stands at a critical juncture in the global artificial intelligence race with potential to leapfrog by focusing on societal use cases that can improve productivity and contribute to GDP, said participants at a panel discussion at the event. India’s key strength has been in human capital, which has been providing services to the entire world and has been behind the development of the most modern technologies, said Abhishek Singh, additional secretary at the ministry of electronics and IT and chief executive of the IndiaAI Mission. Speaking at the discussion, titled ‘Neural intelligence: Shaping the future of technology and society’…

New Delhi: The government has cut the minimum export price (MEP) on natural honey from USD 2,000 per tonne to USD 1,400 per tonne till the end of this year, according to a notification. Exports below this MEP are not permitted. “MEP on natural honey is revised from USD 2,000 per metric tonne to USD 1,400 per metric tonne with immediate effect, till December 31, 2025,” the Directorate General of Foreign Trade (DGFT) has said in a notification. The MEP was introduced in March 2024. The major exporting destinations are the US, UAE, Saudi Arabia and Qatar. Live Events The…

States must strive for self-reliance, remain sensitive to the Centre’s concerns, and seek its blessings to ensure progress, Madhya Pradesh chief minister Mohan Yadav said. Speaking at the ET World Leaders Forum, he said that states should not worry about capital expenditure in the larger interest of development. “MP is not taking loans from anyone,” he said, adding that only three states-Uttar Pradesh, Maharashtra, and Madhya Pradesh-are spending money for growth without borrowing. The state’s fiscal deficit is estimated to have narrowed to 4.11% in FY25 from 5.44% in FY21. The state gross domestic product (GDP) rose by 6.05% to…

Industry lobby CII on Sunday unveiled a reform roadmap to accelerate India’s economic transformation, pitching for a simplified GST structure, expanded coverage to petroleum and real estate, rationalised tariff structure, national employment and gig economy policies. The Confederation of Indian Industry (CII) in its report “Policies for a Competitive India”, presents over 250 actionable recommendations across 14 critical reform areas. Developed through wide-ranging consultations with industry leaders, economists, and policy experts, the blueprint is aligned with the government’s Viksit Bharat vision, it said. CII President Rajiv Memani said, “These recommendations are closely aligned with the government’s reform trajectory and are…

India is negotiating free trade agreements (FTAs) with several countries, including the European Union, the US, Chile, and Peru, Commerce and Industry Minister Piyush Goyal said on Saturday. He said the world is looking at India, and several developed economies are negotiating FTAs with us. The commerce ministry is engaged in these negotiations day in and day out, Goyal said. “Subah ke samay Australia aur Japan me daftar khul jaate hain, doopahar ka samay hota hai toh Europe khul jata hai, shaam ke samay hota hai toh America se baat-chhit shuru ho jati hai…Peru, Chile se baat chhit shuru ho…

Onion growers in Maharashtra are facing financial losses due to non-transparent procurement of the crop by a Central agency, an association representing farmers alleged on Saturday. State Onion Growers’ Association president Bharat Dighole said farmers are compelled to stage protests even during festivals and demanded that the government should either ensure fair procurement or stop NAFED’s onion purchases. A farmer from Nashik district staged a unique protest against NAFED on the occasion of the Pola festival with his bullocks. Pola is a thanksgiving festival celebrated by farmers to acknowledge the importance of bulls and oxen, who are a crucial part…

MUMBAI: The absolute effects of GST restructuring on indirect tax collections and fiscal policy will eventually impact market interest rates, Saugata Bhattacharya, external member of the Monetary Policy Committee, told ET. The announcement to reform the GST structure shows that growth is the government’s priority even at the risk of potential fiscal slippage, economists said. This has led to the discussion on whether this will have to be complemented by monetary easing. “In principle, monetary policy is always ready to support growth, but not at the cost of price stability. The proposed GST rate slab transition changes should initially result…

Indian companies in the food and pharmaceutical industries are keen to collaborate with their South African counterparts, Deputy Consul General in Johannesburg Harish Kumar said in Johannesburg. Kumar was speaking at a media briefing on Thursday to give details of the Pharm Health South Africa located with Food Show South Africa that will be hosted next week. More than 30 companies from India are expected to exhibit at the Pharm Health South Africa and Food Show South Africa to be held from August 27 to 29 here in Johannesburg. “Indian companies are ready to work hand-in-hand with South African partners…

New Delhi: To usher in next-generation reforms, the Centre has constituted two high-powered groups of secretaries, technocrats and economists, headed by full-time NITI Aayog member and former Cabinet Secretary Rajiv Gauba, sources said. A separate committee chaired by Cabinet Secretary TVS Swaminathan is working on deregulation at the state level. Of the two panels led by Gauba, one is tasked with realising the Viksit Bharat goals, while the other focuses on non-financial sector regulatory reforms. The two groups held their first meeting on Thursday and will coordinate with informal ministerial panels chaired by Union home minister Amit Shah and defence…

External Affairs Minister Dr. S. Jaishankar on Thursday reaffirmed India and Russia’s joint commitment to boosting bilateral trade, emphasising the need for a more balanced and sustainable relationship by stepping up Indian exports to the Russian market. “We reaffirmed our shared ambition to expand bilateral trade in a balanced and sustainable manner, including by increasing India’s exports to Russia. This requires swiftly addressing non-tariff barriers and regulatory impediments, enhancing India’s exports to Russia in sectors like agriculture, pharma, and textiles will certainly help correct the imbalance…” He said India and Russia have been the steadiest of the major relationships in…

New Delhi: Russia wants to increase bilateral trade with India and is willing to purchase more goods if those are diverted due to US tariff policies. Russia continues to be India’s biggest source of crude. Addressing a select media gathering here on Wednesday in the backdrop of the US tariffs, Alaska Summit and the external affairs minister’s Moscow visit, Roman Babushkin, Charge d’Affairs of the Russian Embassy in India, said US’ pressure on India over the latter’s procurement of Russian crude oil was “unjustified” and “unilateral”. “We don’t expect that to happen (India to stop buying oil from Russia). We…

Finance Minister Nirmala Sitharaman on Wednesday presented to GoMs from states her government’s plans for sweeping reforms in the GST regime that involves slashing tax rates and easing compliance burden for businesses. The GoMs on rate rationalisation, insurance taxation and compensation cess will over two days deliberate on the Centre’s ‘next-gen’ GST reforms under which tax will be levied at 5 and 18 per cent rates. A special 40 per cent rate has been proposed on 5-7 items, including sin goods. GST is currently levied at 5, 12, 18 and 28 per cent. While food and essential items are either…

New Delhi: The government on Tuesday said it is suspending import duty on raw cotton until September 30, a move expected to ease domestic supply of the raw material. Raw cotton imports face a total duty of 11% with the inclusion of agriculture infrastructure and development cess. Experts also see the duty waiver as a signal to the US, which recently increased tariffs on Indian imports. India’s move could benefit American cotton growers. Industry says the suspension of import duty will ensure raw material availability at globally competitive rates for the textiles sector, which is now looking for markets beyond…

India’s economy needs to expand by about 8% annually over the next decade amid rising geopolitical uncertainties, the federal finance ministry told a panel of lawmakers, with the government expecting domestic demand and investments to drive the growth. Government estimates peg India’s growth at 6.3%-6.8% for the financial year through March 31, broadly in line with last year’s 6.5% growth and much below the 9.2% clocked in 2023-24 The ministry’s comments align with the government’s goal of making India a developed economy by 2047, a target that economists have said requires growth of 8%-9% every year. “Ideally, the Indian economy…

New Delhi: US President Donald Trump’s trade adviser Peter Navarro on Monday criticised India’s crude oil imports from Russia, calling the move “opportunistic” and warning that if India “wants to be treated as a strategic partner of the US, it needs to start acting like one”. In an opinion piece in the Financial Times, Navarro alleged that India was “now cosying up to both Russia and China” and argued that New Delhi’s Russian crude purchases must stop as they were financing Moscow’s war in Ukraine. His comments come ahead of Prime Minister Narendra Modi’s meeting with Chinese President Xi Jinping…

For India’s middle class, where even a slight change in tax rates can heavily impact household finances, Prime Minister Narendra Modi’s recent announcement brings welcome relief. The government is set to simplify the Goods and Services Tax (GST) structure, trimming the current four-tier system of 5%, 12%, 18%, and 28% into a leaner, two-rate framework of 5% and 18%. A separate “sin tax” category will continue to apply to products like tobacco and luxury goods.ALSO READ: Lower GST may heat up demand for packaged foods, daily essentials For consumers, this change could mean real savings. Prices of everyday essentials and…

Over the last eight years since the introduction of GST, the focus has been on compliance and expanding the tax base. With average monthly GST collections of over ₹1.8 lakh crore in FY25 and a tax base exceeding 1.5 crore, the time has come for ‘next generation GST reforms’, as announced by the prime minister on Independence Day.We are now set for GST rate rationalisation, with four main rate slabs of 5, 12, 18 and 28% likely to give way to two slabs of 5 and 18% (with a few ‘sin’ products subject to 40%). This means that most items…

The duty free import authorization (DFIA) scheme, aimed at cutting input costs for exporters, is being misused by some companies, and it has turned into a “licence to loot” owing to a mix of vague policy definitions, lax enforcement, and judicial interpretations, economic think tank GTRI said on Sunday. The Global Trade Research Initiative (GTRI) said that the government should immediately intervene because if unchecked, DFIA misuse will destroy faith in India’s export incentive regime and drive honest exporters out of business. A forensic audit of licences issued in the past five years is urgently needed, alongside recovery of duties…

Domestic demand will get a boost after goods and services tax (GST) rationalisation, economists said, providing support to the economy that’s seen likely taking a hit from the 50% duty levied on Indian imports by the US.“At a time where consumption demand has been uneven and felt pressure from high inflation and low nominal wage growth over the last couple of quarters, the proposed GST reforms are a positive, especially for essentials, aiding consumption by the lower and middle income class,” said Sakshi Gupta, principal economist at HDFC Bank. Simpler Slab Structure QuantEco Research economist Yuvika Singhal said, “Any kind…

New Delhi: S&P’s upgrade of its long-term sovereign credit rating on India after 18 years citing economic resilience can potentially lower the government’s borrowing costs, a senior finance ministry official said.The upgrade in rating to ‘BBB’ from the lowest investment grade of ‘BBB-‘ will add to the investor optimism about the country’s strong macroeconomic fundamentals, despite persisting external headwinds, including an extra 50% US tariffs on Indian exports, he reckoned. The yield on 10-year benchmark government securities inched up 10 basis points over the past one month to close at 6.41% on Thursday, but it still remained 45 basis points…

New Delhi: The next round of review talks for the Asean-India Trade in Goods Agreement (AITIGA) will be held on October 6 and 7 in Jakarta, the government said Friday. The 10th round of the negotiations were held in New Delhi from August 10 to 14.The commerce and industry ministry said the joint committee focused on advancing the ongoing review of the pact to enhance its effectiveness, accessibility and trade facilitation capabilities. “The discussions built on the progress achieved through eight active rounds of negotiations,” it said, adding that delegates from all 10 Asean member states participated. Asean, or the…

The announcement by Prime Minister Narendra Modi regarding GST 2.0 is a timely and strategic move to build a resilient Indian economy, according to experts.From the ramparts of the historic Red Fort, Modi announced that the GST rates will be lowered by Diwali, bringing down prices of everyday use items, as his government looks to reform the eight-year-old tax regime that has been plagued by litigation and evasions. Later, the Finance Ministry said it has proposed that most goods and services be taxed in two slabs – standard and merit – and a select few items be charged special rates.…

New Delhi: India’s goods exports rose 7.2% year-on-year in July to $37.24 billion, after declining for two consecutive months. However, a sharper rise in imports pushed the trade deficit to an eight-month high of $27.35 billion.The previous high trade deficit was recorded in November 2024, when the gap stood at $31.77 billion. Driven by oil and gold imports, inbound shipments rose 8.6% in July to $64.59 billion from a year earlier, data released by the commerce and industry ministry showed on Thursday. Oil imports rose to $15.5 billion in July from $13.7 billion in June, while gold imports increased to…

Rating agency S&P Global’s upgrade of India’s long-term unsolicited sovereign credit ratings shows the country’s commitment to fiscal consolidation, India’s Economic Affairs Secretary Anuradha Thakur said on Thursday. S&P Global upgraded India’s long-term unsolicited sovereign credit ratings to “BBB” from “BBB-” on Thursday, citing economic resilience and sustained fiscal consolidation. Thakur said she hoped other rating agencies would follow suit.

New Delhi: The government will identify 1,000 provisions penalising minor offences within the next 45 days for decriminalisation, commerce and industry minister Piyush Goyal said on Wednesday. He also invited stakeholder inputs for a review of various laws governing intellectual property (IP) to simplify and make them more user-friendly. Based on the feedback, the government may amend existing laws or introduce new ones, as was done with the new Income Tax Bill. The initiative aims to make India’s IP framework more innovation-friendly while ensuring affordability and access to medicines. “We are focused on data exclusivity, but without evergreening creeping into…

The Reserve Bank of India (RBI) has taken steps to simplify and accelerate trade settlements in rupees with Russia, a move that comes amid growing interest in rupee-rouble transactions following recent global trade developments, as reported by TOI. Why rupee-rouble trade is in focus The spotlight on rupee-rouble trade intensified after US President Donald Trump announced higher tariffs on Indian exports. In response, RBI on August 5 allowed authorised dealer (AD) category-1 banks to open special rupee vostro accounts (SRVAs) for their foreign correspondent banks without prior approval. On August 12, RBI further relaxed rules, permitting funds in these accounts…

Global trade is undergoing a profound shift. Mutual consensus and predictability seem to be principles of the past. Rising protectionism, geopolitical tensions, and regulatory divergence are reshaping how goods, services, technology, and data move across borders. Businesses must now contend with a landscape where trade rules are increasingly politicised. While this fragmentation increases risk, the right mindset enables nimble corporates to identify opportunities. A Shifting Global Trade Order The multilateral institutions and frameworks underpinning global trade since the late 1940s are increasingly in doubt. Long-standing partnerships are being replaced by a patchwork of new bilateral and regional agreements, each with…

India’s infrastructure journey since 1947, in many ways, is the story of the nation itself, moving from building the physical foundations of a newly independent country to shaping a connected, technology-driven economy. Over the decades, the priorities have evolved: from massive state-led industrial projects to strategic investments in connectivity, logistics, urban transformation and digital networks. Today, public-private partnerships, coordinated planning and technology integration are as important as political will in driving this transformation. Nehru’s “temples of modern India” In the early decades after independence, Prime Minister Jawaharlal Nehru’s vision was to lay the groundwork for industrialisation and self-reliance. The “temples…

Three years of Indian oil imports from Russia are supposed to have funded Russia’s war effort, but not the 60 years of European imports prior to that. India is supposed to be the reason why Putin is not climbing down. Even Indians are not aware of the sway they hold over the world’s mightiest powers. It is the same West which, while being intolerant of Russia, wants India to be magnanimous and understanding of Pakistan. There are limits to hypocrisy and limits to credibility. This is not the India of 1947 when our eyes were half shut. The real story…

India’s merchandise imports to grow by 2 times more than exports in the current financial year, highlighted a latest survey by RBI. The RBI conducted the Survey of Professional Forecasters on Macroeconomic Indicators, Results of the 95th Round, released on Wednesday. The survey findings showed that merchandise imports are likely to grow by 2.5 per cent in 2025-26, which is more than double the growth of merchandise exports. RBI stated “Merchandise exports and imports are projected to grow by 1.2 per cent and 2.5 per cent, respectively, during 2025-26” In the next year, 2026-27, the survey noted that the merchandise…

MUMBAI: The Reserve Bank of India (RBI) held policy rates steady at 5.5% with a unanimous vote from all six members of the Monetary Policy Committee (MPC), maintaining a ‘neutral’ stance. The decision aligns with market expectations, as the central bank awaits further transmission of earlier rate cuts and clarity on tariffs. This marks the first status quo under Governor Sanjay Malhotra, who took office earlier this year. The RBI lowered its FY26 inflation forecast to 3.1% from 3.7% earlier, while retaining the growth projection at 6.5%. Speaking to the media, Malhotra said there wasn’t enough data to revise gross…

The Parliament on Wednesday passed the Carriage of Goods by Sea Bill, 2024, marking a significant step in the government’s ongoing effort to modernise India’s maritime legal framework. The Bill had earlier cleared the Lok Sabha in March this year. The legislation replaces the nearly century-old colonial period Indian Carriage of Goods by Sea Act of 1925, aligning Indian law with international maritime conventions. Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal, who piloted the Bill, had said earlier that the new law is crucial to promote ease of doing business. The Monsoon Session of Parliament began on July…

Pune: India’s textile industry has suggested that the government could offer to remove the 11% duty on raw cotton imports and use it as a tool to negotiate favourable terms for the country’s textile and garment sectors during bilateral trade discussions with the US. ET had reported earlier citing officials that New Delhi could consider lowering or completely eliminating import levies on American walnuts, almonds, apples and cranberries while seeking to forge trade ties with Washington. The textile industry needs high-quality, contamination-free cotton, which meets global compliances as raw material for export-quality garments. Removing the importer duty can not only…

Exporters’ body FIEO on Tuesday said it will sign a pact with global e-retailer Amazon on August 6 to extend support to domestic exporters in accessing foreign markets through cross-border trade. A stakeholder consultation on e-commerce will also be held to deliberate on key issues, challenges, and the way forward to promote a more enabling environment for e-commerce exports from India, it added. “FIEO will be signing a Memorandum of Understanding (MoU) with Amazon, a leading global e-commerce platform, to enhance support for Indian exporters in accessing global markets through cross-border trade,” it said.

Bankers are looking forward to two important announcements from the RBI—revised liquidity management framework and final norms on co-lending arrangements between lenders—on Wednesday, after the three-day monetary policy meeting, according to industry executives.

Moody’s Ratings on Monday said curtailed access to the US market will diminish prospects for India to develop its manufacturing sector, but the country’s domestic demand will remain resilient to these external pressures. US President Donald Trump has announced a 25 per cent duty on imports from India, which will come into effect from August 7 (9.30 am IST). These will be over and above the existing standard import duty in the United States. On top of the import duty, Trump has announced imposing a ‘penalty’ on India for Russian imports. However, the rate of penalty is yet to be…

New Delhi: The government is pushing exporters to build and promote homegrown brands to cope with the 25% tariff imposed by the US. It has also sought industry inputs on an employment-linked scheme for certain exports such as marine goods which now faces threat from Ecuador due to the higher tariffs. Officials said reducing testing charges for smaller exporters levied by the Export Inspection Council could also be looked at to ease exporters’ concerns on the adverse impact of the tariffs on India’s exports. “It is important for Indian exporters to do brand building and promotion to come out of…

Indian exporters from various sectors, including food, marine, and textiles, have sought financial assistance and affordable credit from the government to cope with the 25 per cent Trump tariff, industry officials said. In a meeting with Commerce and Industry Minister Piyush Goyal in Mumbai, certain exporters sought plans on the lines of the production-linked incentive (PLI) scheme, they added. “Exporters share issues, which they may face in the American market because of the high duty announced by US President Donald Trump,” one of the officials said, adding that the minister has suggested that the exporting community send their suggestions in…

India has the capital to support growth but lacks adequate risk capital to realise its USD 5 trillion economy ambition, City Union Bank MD and CEO N Kamakodi said on Saturday. Kamakodi emphasised that while India is now the world’s fourth-largest economy, its low per capita income due to a high population remains a major challenge. He was speaking at the launch of the banking and finance helpdesk at the Merchants’ Chamber of Commerce & Industry (MCCI). “Entrepreneurs should lead and bankers should support,” he said, noting that chambers of commerce play a pivotal role in driving the economy. Kamakodi…

GHV Infra Projects has bagged an EPC contract worth Rs 2,645 crore from Rana Exim FZ-LLC in the UAE for development of a smart manufacturing hub, the company announced on Saturday. The project is awarded to GHV Infra Projects for engineering, procurement, and construction (EPC) of Erisha Smart Manufacturing Hub consisting of Industrial and Commercial Buildings at Ras Al Khaimah Economic Zone (RAKEZ), UAE. The EPC contract is estimated to be completed within 24 months excluding 90 days of initial setup & mobilization period, the company said in a stock exchange filing. “With this order, the total order book of…

MUMBAI: Central bank gold appetite, although not as voracious as the 1,000-tonne-a-year purchases in the past three calendar years, remains largely undiminished globally as this group of institutional buyers diversifies its asset base beyond the customary dollar-denominated holdings in a world increasingly strewn with tariff snags. Central banks net bought 166 tonnes of gold in three months to June, 33% lower quarter-on-quarter, World Gold Council (WGC) data showed. While this is the lowest quarterly number since June 2022, it is 41% higher than the average quarterly level seen between 2010 and 2021, before buying ramped up sharply in more recent…

Fitch Ratings on Friday revised its GDP growth estimate for India to 6.3% for the financial year ending March 2026, down from its earlier projection of 6.4% made in April. The credit rating agency, however, said it sees a limited direct impact on Indian corporates from the higher tariffs imposed by the United States. In its latest India Corporates Credit Trends report, Fitch said the modest downgrade in growth expectations still reflects strong momentum in infrastructure spending, which should continue to fuel demand for core sectors. “We expect India’s GDP growth of 6.3 per cent and robust infrastructure spending to…

Foreign portfolio investors (FPIs) continued to pull out of Indian debt via the fully accessible route (FAR) for the fourth consecutive month in July, as the country’s rate-cutting cycle nears its end. Net sales stood at ₹455 crore for the month, with flows fluctuating amid mounting pressure on the rupee following US tariff announcements and prevailing uncertainties ahead of key policy decisions. So far in FY26, FPIs have net sold ₹23,435 crore, according to CCIL data. Mid-July saw mild inflows after softer domestic inflation data raised hopes of another rate cut by the Reserve Bank of India (RBI) in August.…

A rice exporters’ body on Thursday termed the 25 per cent US tariff from August 1 as a temporary “hurdle” for rice shipments and stated that India still retains a pricing advantage over competitors like Vietnam and Pakistan. US President Donald Trump has announced the imposition of a 25 per cent tariff on all goods coming from India starting August 1, plus an unspecified penalty for buying Russian crude oil and military equipment. “This tariff is a temporary hurdle, not a long-term roadblock. With strategic planning, diversification, and flexibility, Indian rice exporters can protect and even expand their presence in…

US President Donald Trump on Wednesday announced a surprise 25% tariff on Indian goods plus an unspecified “penalty” on New Delhi’s Russian weapons and energy purchases. India was one of the first few major economies to engage Washington in broader trade talks in February but, six months later, Trump’s sweeping demands and India’s reluctance to fully open its agricultural and dairy sectors have so far prevented New Delhi from sealing a deal. The new tariffs could complicate India’s goal of doubling bilateral trade with the US to $500 billion by 2030. The US is the most important export market for…

With Trump’s tariff deadline almost at hand, Indian exporters are facing a greatly uncertain landscape. Orders are being held back as businesses await clarity on the US President’s next steps, the Times of India reported on July 30. According to Sudhir Sekhri, chairman of the Apparel Export Promotion Council, the situation remains quite unpredictable. American store shelves are running low, but many buyers are delaying production until the tariff situation becomes clearer, Sekhri told ToI’s Sidhartha. As the deadline for tariffs draws near, the focus remains on how the unfolding developments will shape the future of Indian exports. With discussions…

The Finance Ministry on Tuesday told Parliament that it expects to collect Rs 5.91 lakh crore from cess and surcharge in the current financial year, which is 9.43% higher than the previous financial year. The collections include Rs 4.18 lakh crore from cess and Rs 1.72 lakh crore from surcharge, Finance Minister Nirmala Sitharaman told the Rajya Sabha in a written reply. In the financial year 2024-25, the Centre collected Rs 3.87 lakh crore as cess and Rs 1.53 lakh crore as surcharge. She added that proceeds from these levies are used to finance Centrally Sponsored Schemes and meet specific…

Indonesia expects palm oil exports to India to exceed the 5 million-tonnes mark in 2025, up from 4.8 million tonnes in 2024, following India’s decision to cut import tariffs, a senior industry official said. The world’s top palm oil producer is also shipping 100,000 germinated palm seeds to India this year to support the South Asian nation’s ambitious plan to expand palm cultivation to 1 million hectares by 2025-26, Indonesia Palm Oil Council (IPOC) chairman Eddy Martono told PTI in an interview. “After the decrease in import tariffs, Indonesia palm oil imports will increase in 2025. I expect it to…

New Delhi: The MSME (Micro, Small & Medium Enterprises) ministry has simplified the process for availing incentives under a scheme that supports reduction of material wastage to promote green practices among micro and small enterprises (MSEs). The ministry, after reviewing the Scheme for Promotion and Investment in Circular Economy (SPICE), has created a technology portal which lists 116 technologies eligible to receive subsidy under the scheme, said an official aware of the development. The measure is important as the government aims to enrol 3400 MSEs under the scheme by FY27. SPICE encourages the adoption of circular economy technology among MSEs…

Tropical Agrosystem (India) on Monday said it is expanding the distribution of SmartFresh InBox, a post-harvest technology from US-based AgroFresh Inc, to reduce food waste. The technology reduces dependence on cold storage and lowers energy consumption, supporting sustainability goals while extending shelf life of fresh produce during transportation. The solution uses 1-methylcyclopropene (1-MCP), a plant growth regulator that delays ripening by blocking ethylene, a natural hormone that accelerates fruit spoilage. Tropical Agro holds exclusive registration rights for 1-MCP use in India. According to Tropical Agrosystem, SmartFresh InBox comes in sachets placed directly into produce boxes during storage or transport, eliminating…

India is treading cautiously in its trade talks with the US, persons familiar with the issue said, citing a setback in America’s recent deal with Japan, and continuing challenges in closing two other deals announced by President Donald Trump – with Indonesia and Vietnam. Japan has disputed the terms of its trade deal with the US, with Tokyo’s interpretation diverging from that of the Trump administration. Japanese officials maintain there is no written agreement yet, while US officials claim Tokyo has committed investments in the US, from which local taxpayers would get nine-tenths of the profits. A Japanese official in…

India has granted tariff concessions to a wide range of British goods under the recently signed free trade agreement (FTA), including pastries, pet food, cosmetics and microwave ovens, while keeping sensitive sectors out to safeguard domestic interests. The comprehensive economic and trade agreement (CETA), which was signed on July 24, also offers duty-free access to UK products such as cakes, protein concentrates, dog and cat food, soaps, shaving cream, detergents, and home appliances like air conditioners and washing machines. However, the concessions are phased across sectors to give Indian industry sufficient time to prepare for enhanced competition from UK firms.…

Prime Minister Narendra Modi on Saturday described the recently concluded FTA between India and UK as ‘historic,’ and said the trade pact showed the world’s trust in the country. As regards Operation Sindoor, he said weapons manufactured under the ‘Make in India’ initiative played a great role during the cross-border military offensive in destroying enemy targets and made enemies lose sleep. The PM inaugurated, laid foundation stones and dedicated projects worth Rs 4,900 crore here and underscored the NDA government’s commitment towards Tamil Nadu’s growth. In his address after inaugurating the projects, Modi said he was blessed to directly land…

As BRICS+ economies deepen collaboration to reshape the global financial system, three key institutional initiatives: the cross-border payments platform, the New Development Bank (NDB), and the BRICS Contingent Reserve Arrangement (CRA) are gaining strategic momentum, according to the EY Economy Watch July 2025 edition. These efforts come at a time when global trade is navigating uncertainty from geopolitical developments, evolving supply chains, and shifting trade dynamics – encouraging emerging economies to strengthen resilience and diversify their financial and trade frameworks. As of 2024, BRICS+ countries accounted for 42.5 per cent of global GDP (in purchasing power parity terms), 54.0 per…

Following are the highlights of anticipated economic benefits for major Indian states as a result of India–UK Comprehensive Economic and Trade Agreement (CETA), focusing on sectors that are expected to see significant export growth due to tariff eliminations & improved market access in UK.

The new proposed Income Tax bill will improve ease of doing business, reduce litigation burdens of the individual taxpayer, and give both small and large investors the confidence ‘Make in India’ and create jobs, member of select committee of Parliament Milind Deora said on Friday. “I congratulate the Finance Minister for introducing the New Income Tax Bill, and I say new because the existing Bill dates back to 1961. This bill has seen several amendments. The government’s objective, which is the right idea, is that this bill which is over 60 years old and has so many amendments to do…

The India-UK Comprehensive Economic and Trade Agreement has introduced a ‘co-equal’ rule or product-specific origin norm to offer greater flexibility to certain goods such as chemicals, pharmaceuticals, paints, essential oils and iron & steel. The rule will allow a producer of a good to meet any of the criteria of origin to claim benefit under the FTA. The origin rules are vital for checking any circumvention of FTA rules and flow of substandard imports into India. India’s pact with the UK is different from its earlier trade pacts, which had simple rules of origin linked to the wholly-obtained criterion from…

Uttar Pradesh is witnessing a rise in the cultivation of oilseeds and pulses with the Kharif season witnessing a significant expansion in the acreage of sesame, groundnut, and soybean, an official statement said on Thursday. According to the latest data from the Agriculture Department, in 2024, the total area under oilseed crops stood at 432.25 thousand hectares, which has jumped to 547.14 thousand hectares in 2025, it said. The most striking increase has been in sesame cultivation, which soared from 180.26 thousand hectares to 303 thousand hectares in just one year, it added. Groundnut and soybean cultivation have also expanded.…

Rare earth reserves seen at 7.23 million tonnesThe rare earth element resources estimated by the Atomic Minerals Directorate for Exploration and Research (AMD), a unit of the Department of Atomic Energy (DAE), is around 7.23 million tonnes in-situ Rare Earth Elements oxide (REO) contained in 13.15 million tonnes monazite, a mineral of Thorium and Rare Earths occurring in the coastal beach, red sand and inland alluvium in parts of Andhra Pradesh, Odisha, Tamil Nadu, Kerala, West Bengal, Jharkhand, Gujarat and Maharashtra, minister Jitendra Singh informed the lower house. Around 1.29 million tonnes in-situ REO resource in hard rocks in parts…

As global economies navigate an increasingly protectionist and politically volatile era, the importance of sound, mutually beneficial trade agreements cannot be overstated. The recently concluded India-UK Free Trade Agreement (FTA), which is set to be signed during Prime Minister Narendra Modi’s visit to the UK on Thursday, serves as a timely reminder that effective trade negotiations are less about deadlines and more about balancing long-term strategic interests. For the Trump administration, currently engaged in protracted trade talks with India, this deal offers critical lessons in both diplomacy and economic statecraft. The India-UK FTA was not born out of a rushed…

Indian promoters and several family offices using limited liability partnerships (LLPs) to own shares of companies, other securities, and invest in private equity and venture capital funds are in for a nasty surprise lurking in the new income tax (I-T) Bill. Such LLPs, which have emerged as a convenient investment vehicle over last decade, will have to shell out more tax on their profits from sale of securities if the new Bill is enacted in its present form. The tax rate on profits from sale of shares or other investments could rise from 12.5%—the existing tax applicable for long-term capital…

As Prime Minister Narendra Modi gears up for a two-day state visit to the United Kingdom beginning July 23, Foreign Secretary Vikram Misri said on Tuesday that the long-negotiated India-UK Free Trade Agreement (FTA) is in its final stages, with both sides currently engaged in “legal scrubbing” and other last-minute formalities. “We are working on legal scrubbing and other last-minute work that needs to be done,” Misri said during a press conference on the prime minister’s upcoming visit to London for the signing on the trade pact on July 24. “The UK is the sixth-largest investor in India, with cumulative…

MUMBAI: In a move that could deal a setback to the cross-selling of financial products, the Reserve Bank of India (RBI) has proposed prohibiting banks from displaying third-party products and services on their digital banking platforms. This includes offerings from promoter groups or entities within the bank’s own group. “Third-party products and services, including those of promoter groups or bank group entities, shall not be displayed on banks’ digital banking channels except as specifically permitted by the Reserve Bank from time to time,” the RBI stated in its draft Digital Banking Channels Authorisation Directions, which is open for public feedback…

As many as 28 states and Union Territories (UTs) have formulated their export strategy with a view to promoting the country’s outbound shipments, an official said on Monday. The official also said all 36 states and UTs have constituted State Export Promotion Committee (SEPC) and District Export Promotion Committee (DEPC). Further, a draft district action plan has been prepared by the regional authorities of the Directorate General of Foreign Trade (DGFT) for 590 districts. Out of this, 249 are formally notified by DEPCs. These plans include a broad strategy for promotion of exports from districts, the official said. Live Events…

India’s banking system loan growth stood at 9.4% as of June 27, its lowest level since March 2022, after having peaked at 2.74% in the current cycle in December 2023. That said, deposits growth now stands at 10%, exceeding loan demand. Deposit growth had peaked at 14.04% mid-December 2023. For a greater part of FY25, banks were chasing deposits with special schemes, as deposit accretion failed to match credit demand. Now, despite a reduction in the policy rate of 100 basis points to 5.50%, along with a cut in the cash reserve ratio (CRR) in phases, demand for credit has…

India’s naturally coloured cotton, which thrived commercially in the 1940s, is struggling to stage a comeback despite rising global demand for sustainable textiles and decades of government’s efforts in research. The specialty crop is currently grown on just 200 acres across Karnataka, Maharashtra, Tamil Nadu and Andhra Pradesh, fetching Rs 240 per kg, 50 per cent more than regular cotton at Rs 160 per kg. However, farmers are hesitant to expand cultivation due to significantly lower yields. “The productivity of light brown cotton is very low at 1.5-2 quintals per acre, compared to 6-7 quintals per acre for normal cotton.…

Apple growers in Himachal Pradesh are upbeat as early varieties of the fruit are commanding impressive prices in wholesale markets. With the apple season kicking off early this year, traders at the Dhalli vegetable market in Shimla say farmers are earning between Rs 2,000 to Rs 5,000 per 20-kg box, depending on quality and ripeness. Roshan Sharma, a local apple grower, said he received Rs 2,000 per box for the early “Spur” variety. “The early varieties are just beginning to arrive. I got Rs 2,000 for a 20 kg box of Spur variety apples. If people don’t bring unripe fruit…

The free trade agreement between India and the four-nation European bloc EFTA will be implemented from October 1, Commerce and Industry Minister Piyush Goyal said on Saturday. The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024. Under the pact, India has received an investment commitment of USD 100 billion in 15 years from the grouping while allowing several products, such as Swiss watches, chocolates, and cut and polished diamonds, at lower or zero duties. “India-EFTA TEPA to come into effect from 1st October,” Goyal said in a post on X. The European Free Trade…

The labour and employment ministry on Friday notified relaxed criteria for subscribers of the Employees’ Deposit Linked Insurance (EDLI) scheme under the Employees’ Provident Fund Organisation (EPFO). As per the notification, the beneficiary family will be eligible for a minimum assurance benefit of ₹50,000 in the event of death of an employee even if the employee’s average provident fund balance is less than ₹50,000. Further, for the purpose of determining the continuous period of 12 months required for eligibility of minimum assurance benefits payable under the scheme, the gap of up to 60 days between two spells of employment will…

Union Minister of Commerce and Industry, Piyush Goyal, on Friday, said that there is a need for capable and committed individuals to contribute to policymaking. “There is a need for capable and committed individuals to contribute to policymaking with compassion, dedication, and a spirit of service,” he said, according to a release by the Commerce and Industry Ministry. Speaking at the inauguration of India’s International Movement to Unite Nations (IIMUN) Conference 2025 in Noida today, Goyal urged the youth to take charge of India’s future, saying, “Be the changemakers, the movers and shakers of tomorrow’s India. With collective resolve, we…

The US has told the World Trade Organization (WTO) that there was “no legal basis” for India to propose retaliatory tariffs against American duties on steel and aluminium as well as automobiles in the name of safeguard measures. Its communication comes after India said that the safeguard measures on steel and aluminium would affect imports of $7.6 billion into the US from India on which the duty collection would be $3.82 billion. Similarly, the measures would affect imports of automobile products worth $2.89 billion, on which the duty collection would be $723.75 million. On March 8, 2018, the US promulgated…

India and the UK are expected to sign the Free Trade Agreement (FTA) next week, a pact which aims to boost trade and investment between the two countries, an official said. The two countries announced the conclusion of the negotiations on May 6. It will remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper, in a bid to double trade between the two economies to USD 120 billion by 2030. “The process of legal scrubbing of the FTA text is going on. It is expected…

Mumbai: The Reserve Bank of India (RBI) leadership on Wednesday met officials of banks and non-banking finance companies to discuss the way to boost lending under the Unified Lending Interface (ULI), which is positioned as the UPI for loans. M. Nagaraju, secretary, department of financial services, and RBI deputy governor, T. Rabi Sankar, were present at the meeting. The two officials had also met last month in New Delhi to discuss scaling up ULI, which is a digital public infrastructure in the lending space and aims to unlock critical financial, non-financial and alternative data for lenders to enable informed credit…

Above-normal monsoon forecasts are likely to boost sugarcane acreage and yield in key states like Maharashtra and Karnataka, which will result in 15 per cent surge in sugar output The sugar cane acreage in Maharashtra and Karnataka to experience a better yield this year, boosted by an above-normal monsoon, which resulted in a 15 per cent jump in sugar output, said Rating agency ICRA in a report. The report also sees that with sugar output experiencing an uplift, this will lead to revenues of sugar companies expanding by 6-8 per cent. “ICRA projects the gross sugar production to increase to…

Mumbai: The Reserve Bank of India’s (RBI) liquidity draining operation saw muted response from banks, leading to under-subscription in the second such auction in a row. The three-day variable rate reverse repo (VRRR) auction was undersubscribed despite evident lender preference over the longer, seven-day exercise. Against the notified amount of ₹1 lakh crore, the central bank received bids worth only ₹57,450 crore, which was accepted by the RBI. The cut-off and weighted average rate both came in at 5.49%. The previous week’s seven-day VRRR was also unsubscribed. Bank treasury officials said that the RBI’s intent behind conducting the three-day VRRR…

Union Minister Nitin Gadkari on Tuesday said the government will penalise those consultants who do not adhere to proper procedures in making detailed project reports (DPRs) for highways and tunnels. A DPR is a comprehensive blueprint for a road construction project, outlining all technical, financial and logistics details necessary for its execution. “In India, quality of DPRs prepared by consultancy firms is not good. And also, contractors are not doing good job,” Gadkari said at an event here. “We have started rating consultants who are involved in DPR preparation…Those who are making good DPRs will be rewarded and those who…

India’s key inflation gauge dropped to pre-pandemic lows on the back of a sharp decline in food inflation, triggering hopes of another rate cut by the Reserve Bank of India (RBI). Retail inflation in June based on the Consumer Price Index (CPI) dropped to 2.1%, the lowest in more than six years and just shy of the lower end of the central bank’s 2-6% target range, official data released Monday showed. The RBI is mandated to target 4% retail inflation within the range. This is the fifth consecutive month that CPI inflation has printed below 4%. Retail inflation is at…

India stands to gain in sectors with high tariff gaps vis-a-vis competing nations like China, Canada and Mexico if the existing tariffs imposed by the US, as on July 10, on India remain unchanged, NITI Aayog said. The Aayog’s analysis, which is part of its Trade Watch Quarterly report for October-December quarter of 2024-25 released on Monday, comes at a time when India is in the final leg of firming up a trade deal with the US. As per the report, the sectors where India stands to gain include minerals and fuels, apparel, electronics, plastics, furniture and sea-food. The Aayog…

The income-tax department has issued ₹4.76 lakh crore in refunds in FY25, a staggering increase from ₹83,008 crore in FY14, officials said. This 474% surge in 11 years outpaces the 274% growth recorded in gross direct tax collections, which rose to ₹27 lakh crore in FY25 from ₹7.2 lakh crore in FY14. The number of income tax returns filed also swelled by 133% to 88.9 million from 38 million. Refunds as a proportion of gross direct taxes collected increased to 17.6% in FY25 from 11.5% in FY14, reflecting increased formalisation and voluntary participation in the tax system. The tax department…

India’s crude oil imports from Russia climbed to their highest in nearly a year in June, as refiners stocked up amid tensions in West Asia, particularly the Israel-Iran conflict, reported PTI. According to data from Kpler, a global commodity tracking firm, India imported 2.08 million barrels per day (bpd) of Russian crude last month, the highest since July 2024. “While India’s global imports of crude oil dropped by 6 per cent in June, Russian volumes saw an 8 per cent month-on-month rise to their highest levels since July 2024,” the Centre for Research on Energy and Clean Air (CREA) said…

Small traders can heave a sigh of relief as the Chhattisgarh government has decided to waive VAT dues of up to Rs 25,000 in cases pending for more than 10 years, officials said on Saturday. The move to write off old VAT dues is expected to benefit more than 40,000 traders and will help reduce litigation in more than 62,000 cases, significantly easing the compliance burden, they pointed out. Simultaneously, multiple amendments to GST (Goods and Service Tax) provisions will also be introduced under the broader agenda of improving the business climate in the state, they said. During the cabinet…

Tata Steel completed its first paperless import transaction under a Letter of Credit, fully backed by digital processes, the company announced on Friday. The company carried out first digitized import shipment of coal using an Electronic Bill of Lading (eB/L) with full bank integration. In its efforts towards fully digitised and sustainable global trade, the company used eB/L for its coal import shipment from Queensland, Australia to Dhamra Port in Odisha, India. The transaction, backed by digital platform provider ICE Digital Trade’s eBL solution, involved coordination between Tata Steel India, ICICI Bank, TS Global Procurement, and Standard Chartered Bank (Singapore).…

NEW DELHI: The roads ministry has tightened the eligibility criteria for bidding for road projects under the hybrid annuity model (HAM) and engineering, construction and procurement (EPC) mode, a move aimed at ensuring good quality construction for highways and expressways and timely completion of projects to avoid time and cost overruns. The modifications include raising the minimum financial requirement for bidders, for both standard highway projects as well as standalone specialised projects such as tunnels, etc., introducing greater checks on sub-contracting experience and modification of the highways and core sector definitions, said a circular issued by the ministry of road…

The National Highways Authority of India (NHAI) has directed the toll collection agencies and concessionaires to immediately report instances of ‘loose’ or ‘tag-in-hand’ FASTags to enable blacklisting or hostlisting of these FASTags. This is expected to address the issue of FASTag authenticity and system reliability as the ministry of road transport and highways plans to launch the annual pass system from August 15 and the multi-lane free flow (MLFF) tolling, NHAI said in a statement issued on Friday. “To ensure smooth tolling operations and strengthen reporting of ‘loose FASTags’, NHAI has further streamlined its policy for the toll collecting agencies…

New Delhi: The US has again raised concerns at the World Trade Organization (WTO) at India’s dairy certificate requirements terming them “unnecessary trade barriers” for American exports. India mandates an integrated veterinary health certificate for the import of milk and milk products, confirming that it does not contain drugs, antibiotics, pesticides or heavy metal residues. Washington told the WTO that such measures should be based on science and be least trade-restrictive. It had raised the concern in April this year. The US said India’s new dairy certificate which came into force on November 2024, did not address its concerns. “As…

Commerce and Industry Minister Piyush Goyal on Thursday asked the energy storage industry to reduce dependency on imports from certain countries and explore alternate sources of supply. He also suggested the industry to focus on research and development for creation of innovative products. “We must work to prevent distortions. We must reduce our dependency on particular geographies and look at alternative sources of supply, where we can have resilience in our supply chain,” Goyal said at a function on energy storage. He said the industry should look at newer technologies to cut overdependence on imports and focus on self-sufficiency. These…

Fresh registrations of companies rose 8.3% in June from a year before and those of limited liability partnerships (LLPs) jumped 18.4%, as investors continued to bet on India’s strong longer-term economic growth and consumption outlook. As many as 16,654 companies, including overseas entities, were incorporated in June, against 15,375 a year earlier, showed the latest corporate affairs ministry data. With this, company registrations rose for a sixth straight month through June. However, the pace of increase in incorporations in June eased from 29% in May and almost 50% in April, which were, of course, aided by a favourable base effect.…

India will discuss the impact of U.S. tariff on copper, mines minister Kishan Reddy said at an event in New Delhi on Wednesday. US President Donald Trump has announced a 50% tariff on copper imports, expanding his administration’s aggressive trade measures already in place on steel and aluminium. “Today we’re doing copper. I believe the tariff on copper—we’re going to make it 50%,” Trump said during a cabinet meeting on Tuesday. The announcement sent global copper prices soaring by over 10%, although they later eased slightly, according to a Yahoo Finance report. The proposed tariff is expected to be implemented…

The average cost of a home-cooked vegetarian thali fell by 8% year-on-year in June, due to a sharp drop in vegetable prices, Crisil said in a report on Tuesday. Similarly, the cost of a non-vegetarian thali declined by 6% thanks to lower broiler chicken prices, which account for nearly half of a thali’s cost. The rating agency however expects thali costs to rise in the coming months due to an increase in vegetable prices, triggered by seasonal changes. Heavy monsoon rains in Himachal Pradesh have damaged harvest-ready vegetables like tomatoes, impacting prices, in the past several days. “The cost of…

India could soon finalise a bilateral trade deal with Washington as US President Donald Trump intensifies pressure on countries by issuing formal tariff notices, reported PTI, citing think tank Global Trade Research Initiative (GTRI) as saying, on Tuesday. “Trump’s model isn’t a free trade agreement, it’s a YATRA — Yielding to American Tariff Retaliation Agreement,” PTI quoted GTRI statement, referring to the US President’s hardline approach. The US has now pushed the deadline for finalising trade agreements from July 9 to August 1, offering countries a three-week extension before sweeping country-specific tariffs come into effect. The broader trade move began…

India plans to mandate the purchase of green-rated steel for eight years in all central government projects and centrally-sponsored schemes from FY28, people aware of the development said. The steel ministry has prepared a draft cabinet note on the proposal, a government official said. For a 3-star rated steel, a minimum 20% procurement is likely to be mandated, while for a 4-star rated steel, the requirement could be 5%. For 5-star rated steel, minimum 1% requirement could be mandated, one of the persons said. The move is being deliberated as a measure to drive demand for green steel in public…

India and the US are nearing a mini trade deal with politically and economically sensitive sectors of dairy and agriculture likely to be excluded from the pact, officials said. “The deal is in its conclusion phase,” said an official. “Most issues related to agri may be discussed later. As of now, they seem to be out of the ambit of this phase of the deal,” the official said, adding that the agreement could be announced in the next two days. The interim deal would only cover trade in goods, a second official said. The official noted that the two sides…

New Delhi: The Indian Staffing Federation (ISF) has urged the finance ministry to move it to the 5% slab from 18% under the GST for employment services, arguing that this will help create more formal employment in the country and enhance the staffing industry’s competitiveness. “The reduction to 5% GST could stimulate demand, potentially increasing the workforce to 15-20 million within a few years, formalising more jobs and aligning with national employment goals,” the ISF said in a representation to the minister of state for finance Pankaj Chaudhary, a member of the GST Council, during their meeting last week. ET…

India needs an average nominal GDP growth rate of 10 per cent annually to achieve the government’s vision of Viksit Bharat by 2047, CII President Rajiv Memani said. Nominal GDP is the total value of goods and services produced in a country, measured using current market prices, without adjusting for inflation, unlike real GDP. “India would require an average about 10 per cent nominal growth to achieve the Viksit Bharat vision,” Memani told PTI. In an interview to PTI, the newly-appointed president of the industry lobby observed that the interim trade pact between India and the US, expected to be…

India’s decision to reserve its rights to impose retaliatory duties on the US over imposition of tariffs on auto parts is a procedural move under the WTO agreement on safeguards and it will not affect ongoing negotiations on the proposed trade pact between the two countries, an official said. India on Friday proposed imposing retaliatory duties under the WTO (World Trade Organisation) norms against the US over American tariffs on imports of the country’s auto parts in the name of safeguard measures. The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on…

Finance Minister Nirmala Sitharaman has called for a renewed mandate for the New Development Bank (NDB), emphasising the need for greater agility, technological advancement, and efficiency in today’s fast-changing world. Observing that NDB has played an important role in reshaping the financial landscape for the global South, she said it has approved more than 100 projects and it has approved more than USD 35 billion in financing across member countries, including key Indian initiatives, like the metro rail, renewable energy and water management. NDB is not just a source of capital, it is a platform for shaping a more equitable…

New Delhi: A Group of Ministers (GoM) on goods and services tax (GST) revenue analysis met Friday to discuss falling collections trends in some large states and measures to curb input credit frauds and fake invoices which has resulted in revenue loss worth Rs 2 lakh crore over years. The GoM, chaired by Goa Chief Minister Pramod Sawant, will meet again to decide detailed and technology based measures to curb fraudulent practices ahead of the next GST council meeting. “Chaired a meeting of the Group of Ministers (GoM) on GST Revenue Analysis to review state-wise revenue trends and identify actionable…

The commerce ministry’s arm DGTR has initiated an anti-dumping probe into the import of polyethylene from Kuwait, Malaysia, Oman, Qatar, Saudi Arabia, the UAE following a complaint by Chemicals and Petrochemicals Association of India. The applicant has alleged that the industry is impacted due to the dumped imports of Linear-Density Polyethylene (LLDPE). It is primarily used in raw materials for the plastic processing industry to make a variety of products such as packaging films, profiles, wire and cable. According to the DGTR’s notification, the applicant has provided evidence with respect to the injury suffered by the domestic industry due to…

The Union Cabinet on Tuesday approved the employmentlinked incentive scheme (ELI), nearly a year after the government announced it in the 2024-25 budget. The scheme is projected to cost the exchequer Rs 99,446 crore. ET looks at the eligibility criteria and benefits to employees and employers under the scheme, which comes into effect on Aug 1. INCENTIVE TO FIRST-TIME EMPLOYEES All those who are newly employed with a salary up to `1 lakh per month, and enrolled with the Employees’ Provident Fund Organisation (EPFO), will get an incentive equal to a month’s wage, limited to `15,000, in two instalments at…

India’s services sector enjoyed its strongest growth in ten months in June, fuelled by robust demand and cooling price pressures, a survey showed on Thursday. The HSBC final India Services Purchasing Managers’ Index (PMI), compiled by S&P Global, climbed to 60.4 in June from 58.8 in May, but was a touch lower than a preliminary estimate of 60.7. The PMI threshold of 50.0 separates growth in activity from contraction. The new business sub-index – a key gauge of demand – rose sharply as companies benefited from sustained strength in the domestic market. This came alongside robust growth in export orders…

India needs to tread carefully in its trade negotiations with the United States, keeping in view the terms proposed under the latter’s trade deal with Vietnam, trade experts say. As per the new trade pact announced by President Donald Trump, the US will impose a flat 20% tariff, besides a 40% tariff on transshipped goods from Vietnam. Beyond a deviation from the previous commitments under the 2000 US-Vietnam Bilateral Trade Agreement (BTA), where Vietnamese goods were subject to 2-10% tariffs, the new deal seeks to tax transshipped goods, which differs from the rules of origin on which tariffs or duty…

India’s palm oil imports soared to an 11-month high in June, driven by lower domestic inventories and a price discount to rivals soyoil and sunflower oil that encouraged refiners to ramp up purchases, according to five dealers. Higher palm oil imports by India, the world’s biggest buyer of vegetable oils, will help bring down stocks in top producers Indonesia and Malaysia and support benchmark Malaysian palm oil futures. Palm oil imports in June surged 61% month-on-month to 953,000 metric tons, the highest since July 2024, according to estimates from dealers. “Palm oil has been regaining lost market share since last…

New Delhi: The government is planning to evaluate the performance of about 90 central public sector enterprises (CPSEs) in 2024-25 against the targets set for them, a senior official said, adding that the exercise will begin in October. The evaluation will start once the audited accounts of all the CPSEs are available, said the official, who did not wish to be identified. The administrative departments sign memorandums of understanding (MoU) with the CPSEs under their purview, setting key performance targets for them annually. Some of the CPSEs are, however, exempt from MoU signing. The proposed evaluation is aimed at ascertaining…

The Goods and Services Tax (GST) is arguably India’s most significant tax reform. It has simplified compliance and administration by replacing multiple indirect tax levies within a single unified system, thus harmonising tax across states. Although this reform has made considerable strides in digital compliance, the GST system is now facing a critical challenge: a rising number of tax disputes and a growing backlog within the adjudication system, that is delaying dispute resolution. While Government has taken several notable measures, as GST completes eight years, it might be the opportune time to look at the evolution of the GST adjudication…

The goods and services tax (GST) regime is at a critical juncture, requiring reforms to align with global trade dynamics and attract investments, said a PwC report. The report, titled ‘Eight Years of GST: A time to reflect, a time to reform’, highlighted key milestones of the tax system and suggested changes to make it more robust, transparent and business-enabling. “The evolving landscape of international trade, coupled with growing need to attract investments in manufacturing and global capability centre (GCC) sectors, calls for a GST framework that is agile, investor-friendly, and globally competitive,” said the report. It recommended rate rationalisation,…

India’s trade deficit is likely to widen to USD 300 billion in the financial year 2025-26, even though oil prices are expected to remain moderate, according to a recent report by ICICI Bank. The projected deficit would be 7.0 per cent of the country’s GDP, higher than the USD 287 billion recorded in FY25 and USD 245 billion in FY24. The report stated, “We see goods deficit widening to USD 300bn (7.0 per cent of GDP) in FY26. But steady inflows in case of services exports and remittances should ensure a CAD of USD 30bn (0.7 per cent of GDP)”.…

The National Sample Survey Office, under the ministry of statistics and programme implementation (MoSPI), launched the GOIStats mobile application on Sunday, aiming to make official data more accessible. The app features a dashboard titled ‘Key trends’, which provides information on key socio-economic indicators such as inflation, gross domestic product (GDP), and employment. “Advanced filtering and search capabilities with comprehensive metadata, and mobile-optimized data tables are also available for seamless viewing,” the ministry said. The app was launched on the occasion of the 19th statistics day. Union Minister of State (Independent Charge), Rao Inderjit Singh highlighted the growing role of technology…

Prime Minister Narendra Modi on Sunday said that nearly 95 crore people in India are currently benefiting from one social security scheme or another, a significant rise from the less than 25 crore who were covered by such schemes before 2015. Speaking during his monthly Mann Ki Baat radio address, Modi referred to a recent International Labour Organisation (ILO) report, which highlighted that more than 64% of India’s population is now receiving some form of social protection. “Presently, most of the populace in India is taking advantage of one social protection benefit or the other, and recently a very important…

India imposed restrictions on the import of jute and allied fibre products from Bangladesh in view of its “unfair trade” practices including circumvention of anti-dumping duty that harmed Indian farmers, people familiar with the matter said on Saturday. The new restrictions will apply to imports into India of Bangladesh’s jute and allied fibre products across all land and seaports, with the exception of the Nhava Sheva seaport in Maharashtra. The punitive measures were announced on Friday and they came into effect immediately. There has been a sharp downturn in India-Bangladesh relations after deposed prime minister Sheikh Hasina fled Dhaka and…

India’s private consumption has shown strong growth, reaching the highest share in the country’s GDP in the past two decades, according to the latest monthly report released by the Ministry of Finance. The report highlighted that the share of private consumption in nominal GDP increased from 60.2 per cent in FY24 to 61.4 per cent in FY25. This marks the second-highest level in the last 20 years, indicating sustained strength in consumption demand across the country. The ministry said, “private consumption’s share in nominal GDP increased from 60.2 per cent in FY24 to 61.4 per cent in FY25. This is…

New Delhi: The NITI Aayog could prepare a blueprint for interventions needed to boost private sector investment in infrastructure creation, after a recent government survey suggested a likely dip of 25% in private sector capital expenditure in this financial year, said officials. While the Centre has been pushing for an increase in capex, the private sector has been lagging in this regard. A senior government official told ET the idea is to look at issues related to regulatory compliances, high cost of finance, inadequate availability of skilled manpower and further improvement in ease of doing business to instil confidence among…

Any trade agreement with the US must not be politically driven or one-sided and India should protect its farmers, digital ecosystem, and policy space, economic think tank GTRI said on Friday. With India’s chief trade negotiator in Washington DC and the clock ticking, the next few days could determine whether India and the US settle for a limited mini-deal or walk away from the negotiating table – at least for now, the Global Trade Research Initiative (GTRI) said. The two sides are looking at finalising an interim trade pact before July 9, as it marks the end of US President…

India and Oman have amended their double taxation avoidance agreement (DTAA), expanding the definition of permanent establishment to cover digital and service-based operations. The amendment, notified Thursday, reduced withholding tax rates on interest and royalty payments for technical services to 10% from 15%, while applying a Principal Purpose Test to prevent abuse of the treaty for tax evasion. Under the test, treaty benefits would be denied if it is ascertained that obtaining them was one of the principal purposes of a deal. The revisions also expand the mutual agreement procedure for resolving tax disputes more efficiently and facilitating greater exchange…

India’s engineering exports conceded a marginal 0.82% year-on-year decline to $9.89 billion in May 2025 due to a higher statistical base and geopolitical tensions in the Middle East and West Asia, but its share in the country’s total merchandise exports increased to 25.53% during this period. Among the major product groups, exports of aircraft, spacecraft and parts slumped by 85% and that of ships, boats and floating structures dropped by 25% year-on-year in May 2025, which mainly caused the decline in overall engineering exports. Country-wise analysis showed a substantial decline in engineering exports to the UAE and Saudi Arabia in…

Tariff-related uncertainties ahead of the July imposition deadlines could have a disproportionate impact on the world economy, although domestic growth underpinned by benign inflation should shield India from global headwinds, central bank economists said. Negative trade policy outcomes that spawn further trade barriers, coupled with geopolitical uncertainties, could significantly scar the global economy, economists wrote in the Reserve Bank of India (RBI) June bulletin. “In this context, the trade policy outcomes in July, after the temporary tariff hiatus is over, and the future course of geopolitical events would likely shape the medium-term economic prospects,” wrote the economists, while cautioning that…

The UAE-India CEPA Council (UICC), in partnership with the Embassy of the United Arab Emirates in India, launched the UAE–India CEPA Start-up Series in New Delhi. The initiative delivers on a key commitment under the UAE–India Comprehensive Economic Partnership Agreement (CEPA) to promote innovation-led collaboration and support the internationalisation of Indian start-ups. In his special address, Dr Abdulnasser Alshaali, the UAE Ambassador to India, underscored the UAE’s commitment to entrepreneurship and cross-border innovation: “Start-ups are central to the UAE–India economic corridor. Through this Series, the UAE-India CEPA Council seeks to connect India’s brightest entrepreneurial minds with the UAE’s world-class ecosystem,…

The Central Board of Indirect Taxes and Customs (CBIC) has extended the validity of no objection certificate (NOC) for imported alcoholic beverages bottled at origin or in bulk with more than 10% alcohol content. The move follows a June 13 order by the Food Safety and Standards Authority of India clarifying that such consignments without an expiry date will have a NOC validity of 365 days under FSS (Import) Regulations, 2017. Consignments remaining in customs areas beyond 365 days can be granted revalidation after a visual inspection and payment of the requisite inspection fee. The CBIC has instructed customs authorities…

Amid a spike in fear of likely energy turmoil in the wake of continuing unrest in West Asia, S&P Global Ratings has made a forecast that India will face no significant pressure in terms of currency and inflation. According to the rating agency, lower global energy prices compared to last year as a key buffer for the Indian economy even as the Middle East situation continues to be touch-and-go. It is worth noting here that despite Israel and Iran finally having reached a ceasefire after a bloody 12-day war, the whole area — the cradle of much of the world’s…

A panel mandated to examine tax rates under the Goods and Services Council has recommended slashing tax on green hydrogen to 5% from 18% now, said people familiar with the matter. The fitment committee has also backed reducing the goods and services tax (GST) on storage batteries and green hydrogen electrolysers, an important component for producing green hydrogen, to 5%. The recommendations will be placed before the GST Council at its next meeting, which is likely to be held in July, for a final call on the tax rates. Industry had been pushing for the rate cuts and had reached…

Talks are in progress with the EU on the bloc’s Deforestation Regulation (EUDR) and Indian coffee exporters are preparing for the upcoming rules, an official said Thursday. India is working on a grower-registration model and collecting geo-location data for exporters to comply with the EUDR even though the country is categorised as a low-risk country. “We are preparing the exporters. We are engaging with them so that there are no challenges,” said M Kurma Rao, CEO, Coffee Board. The Coffee Board has been doing polygon mapping which is mandatory for plots larger than four hectares wherein companies provide the geolocation…

New Delhi: A worsening geopolitical situation since the Monetary Policy Committee (MPC) meeting earlier this month has heightened the upside risk to India’s inflation trajectory, on account of increases in oil and fertiliser prices, said Ram Singh, a member on the panel. However, despite the upside risks, he expects the Consumer Price Index (CPI)-based inflation to stay below the 4% target. “This (geopolitical situation) can put pressure on the INR, adding to the risk of imported inflation. To address unexpected developments on the external front, we adjusted our stance to neutral. Moreover, our foreign exchange reserves (about $700 billion) provide…

Coffee grower N Bose Mandanna isn’t afraid to spill the beans, literally. Standing beside sturdy plants of robusta coffee on the slopes of his estate in Kodagu (formerly Coorg) in Karnataka, he recounts a silent agricultural revolution that began in the 1990s, when a pest the size of a fingernail— the white stem borer—upended the region’s prized arabica coffee legacy. Faced with ruin, Mandanna and many fellow planters were pushed to take a bold but difficult decision: they started replacing arabica plants with robusta, which was considered a poor cousin in the global coffee trade. “Back then, it seemed like…

New Delhi The Central Board of Direct Taxes (CBDT) has exempted payments made by finance companies, fund management entities, recognised clearing corporations and stock exchanges to International Financial Services Centre units from deducting tax at source (TDS), effective July 1. CBDT said Saturday the exemption will cover payments under several categories, including those made by stock exchanges, commission incentives, interest from leases, freight or hire charges from finance firms, portfolio management fees, advisory charges and other service fees, professional and technical fee and rent for data centres. The payee must furnish a statement-cum-declaration to the payer. The relief is available…

India’s direct tax collection for the financial year 2025-26 rose by 4.86% to Rs 5.45 lakh crore as of June 19, according to the latest figures released by the income tax department. However, net collections saw a marginal decline due to a sharp spike in refunds. The total gross collections which include corporate tax, non-corporate tax, securities transaction tax (STT), and other levies — stood at Rs 5,45,207 crore, up from Rs 5,19,936 crore during the same period last year. There was the 58.04% jump in tax refunds, which soared to Rs 86,385 crore from Rs 54,661 crore a year…

Mumbai: In the lane to launder money, the skill to move cryptos to control companies and properties in Dubai has been honed over the past few years. But treading that alley would soon become tougher. Dual, albeit unrelated, developments in India and the UAE would force money movers to devise new tricks. First, Income tax (I-T) officials, hunting for illicit homes of Indians over the past six months, now strongly suspect that some property purchases were made with cryptocurrencies; second, a new regulatory regime in the Middle East country, would soon end payment in cryptos, other than stable coins, to…

India has halted tea exports to Iran amid an escalating conflict between the latter and Israel. Tea exporters say erratic telecom connectivity and widespread business disruptions due to the conflict are making it difficult to reach out to their Iranian clients. This has impacted Rs 100-150 crore worth of premium orthodox tea shipments, for which contracts have already been signed. “It has been one week since the war began. The shipments for the past week are on hold as we are not able to establish contact with our buyers,” said Mohit Agarwal, director, Asian Tea Company. “This is the time…

India has firmed up a ₹3,500-5,000 crore scheme to incentivise production of rare earth minerals and derived magnets in the country and could be approved in a fortnight, a top government official said. “The priority is to start domestic-critical mineral production in the shortest time period,” the official told ET. The sops under the proposed scheme will be offered through a reverse auction process, the official said. The decision to offer incentives for rare earths comes after an internal ministerial review flagged the need for diversification in the wake of acute dependence on Chinese imports. “Fresh steps are being taken…

New Delhi: The Central government’s borrowing cost has moderated in recent years, reflecting the country’s robust macroeconomic fundamentals, proactive policy measures, and sustained fiscal consolidation, a senior government official said. The weighted average yield for the government securities (primary issuances) from FY21 to FY25 stood at 6.72%, way below that of 8.09% between FY10 and FY14, he said. The yield in FY25 eased to 6.96% from 7.24% in the previous year. Even for the outstanding stock of dated securities, the weighted average coupon dropped to 7.24% between FY21 and FY25 from 7.91% during the UPA-II period. The coupon declined 4…

New Delhi: The India-UK social security agreement was made a non-negotiable part of the free trade agreement (FTA) discussions two years ago, commerce and industry minister Piyush Goyal said on Wednesday. Termed the Double Contribution Convention Agreement (DCCA), it was agreed to along with the FTA between the two countries in May. “It was on the table for the last three years to bring balance and equity and balance to the trade deal between the two economies,” Goyal said at an event in London. The minister is on a two-day visit to London from Wednesday. The agreement exempts Indian professionals…

The Ministry of Road Transport & Highways on Wednesday announced that it is introducing a FASTag-based Annual Pass to accommodate hassle-free highway travel. Making the announcement on X, Union Minister Nitin Gadkari said that the pass will be priced at Rs 3,000 for a year, effective from August 15, 2025. The latest FASTag pass will be valid for non-commercial private vehicles such as cars, jeeps, and vans and for one year from the date of activation or up to 200 trips, whichever comes first. — nitin_gadkari (@nitin_gadkari) (More to come)

The government’s move to simplify the process of setting up multimodal cargo terminals has helped 108 such facilities come up over the last three years, said Ashwini Vaishnaw, Union minister for railways, information broadcasting and information technology. “The government, since December 2021, introduced reforms and simplified processes (for establishing cargo terminals), which resulted in establishment of 108 terminals in such a short period,” the minister said at the inauguration of railway siding facility of Maruti Suzuki India Ltd (MSIL) at Manesar on Tuesday. The facility, at its full capacity, can transport 450,000 cars every year through rail, saving 60 million…

India wants an assurance from the US that no additional tariffs will be imposed by the Donald Trump administration once the bilateral trade agreement (BTA) is finalised, said people familiar with the matter. The deal is in the final stages of negotiation and both sides are hopeful of reaching accord quickly. India has sought concessions for labour-intensive sectors such as leather and textiles. “We have put everything on the table,” said one of the persons, adding that India wants stability in tariffs once a deal is rolled out. Trade agreements typically include renegotiation clauses, or compensation from the partner effecting…

New Delhi: While India and the European Union (EU) are ready to close a key trade pact, various Indian ministries are working on several rulebook shifts to align with a slew of new, stricter ‘green’ regulations by the EU that will come into effect within a year and are bound to impact Indian trade across sectors from coffee export to import of scrap. The Union Ministry of Environment, Forests & Climate Change is at the forefront of the exercise, readying rulebook shifts and mechanisms to align with the incoming ‘green’ regime at the EU. Packaging for EU – no antibiotics…

India’s wholesale inflation eased further to 0.39% in May on an annual basis as against a five-month low of 0.85% in April, government data released on Monday showed. A Reuters poll had projected wholesale price index (WPI)-based inflation to likely slip to a 14-month low of 0.80% in May, down slightly from 0.85% in April. On a sequential basis, the wholesale price index-based inflation rate contracted to 0.06% from 0.19% in April Meanwhile, the inflation rate for manufactured products, which makes up over 60% of the wholesale inflation basket, grew at 2.04% in May. Primary articles inflation in May contracted…

Pune: Prices of Basmati rice, which have increased by about 15-20% over the last two months due to a jump in exports, are likely to reduce in the coming weeks as exports to Iran are expected to decline due to its conflict with Israel. After prices of Indian Basmati rice dropped to ₹75-90/kg, major importing countries from West Asia and Iran had increased buying, causing prices to move up. Iran is the third largest buyer of Indian basmati rice after Saudi Arabia and Iraq, according, Agricultural and Processed Foods Export Development Agency (APEDA). In the 2024-25, India had exported basmati…

London, The Free Trade Agreement (FTA) negotiations concluded with India places the UK at a “genuine” competitive advantage in the manufacturing sector, the House of Commons was told this week. During a debate on the bilateral FTA agreed last month, UK Business and Trade Secretary Jonathan Reynolds fielded a series of questions on the advantages of the deal which has been pegged to increase bilateral trade by GBP 25.5 billion annually in the long term. Reynolds reiterated that the pact marked a huge economic win for the UK as the “best deal that India has ever offered”. “On advanced manufacturing……

Jammu and Kashmir Lieutenant Governor Manoj Sinha on Saturday said the government’s goal is to make every farmer in the Union Territory a proud stakeholder in India’s journey towards becoming a Viksit Bharat by 2047. Addressing the closing Ceremony of Viksit Krishi Sankalp Abhiyan at SKUAST Kashmir’s Mountain Research Centre for Field Crops at Khudwani-Kulgam in south Kashmir, Sinha said it is a comprehensive strategy, designed to make J&K UT a robust Rs 1 trillion agricultural economy by 2030. In his address, the Lieutenant Governor lauded the valuable contribution of those associated with the Viksit Krishi Sankalp Abhiyan for marking…

New Delhi: India’s soft industrial momentum, a widening trade gap, and early signs of business caution warrant close tracking as H2 2025 unfolds, according to a report by LLama Research. While the broader economic outlook remains positive, the report added that there are signs that some areas of the economy may need close attention going forward. The report said “India continues to run a “Goldilocks” macro script — strong growth and moderating inflation — with solid buffers in place. However, soft industrial momentum, a widening trade gap, and early signs of business caution warrant close tracking as H2 2025 unfolds”.…

The Israel-Iran military conflict may lead to a further increase in prices of imported nuts and dry fruits in India by exacerbating supply issues, said traders. The commodities, sourced from Afghanistan and Iran, have already seen a 15-100% surge in prices as imports through Pakistan have been completely blocked in the aftermath of the April 22 Pahalgam terrorist attack, they said. Industry representatives had a meeting with the central government authorities this week, seeking clarity on the duty structure for the Afghan-origin dry fruits imported through Iran. However, the Israel-Iran conflict comes as a double-whammy for the industry, said people…

Trade officials from India and the US have hardened their stance on some key issues as they race to conclude an interim deal before higher US tariffs take effect in July, people familiar with the matter said. Negotiators from both sides, who met in New Delhi this week, wrangled over issues including a US demand that India open up its market to genetically-modified crops, officials in New Delhi said, asking not to be identified as the discussions are private. The US also wants India to eliminate tariffs and ease price controls on medical devices, and relax rules on data localization…

The finance ministry is nudging large central public sector enterprises (CPSEs) and key government agencies to boost their capital expenditure (capex) in this financial year, said a senior official, amid scepticism over a broad-based rebound in private investments given the global turmoil. The move comes on top of similar instructions to various ministries and departments earlier this fiscal to front-load their capex, aimed at supporting economic growth. The CPSEs are responding, according to the official, who did not wish to be identified. The combined capex of large CPSEs and four key government agencies-each with an annual target of at least…

India is open to mutually beneficial arrangements on implementing norms related quality standards with its trusted trading partners, Commerce and Industry Minister Piyush Goyal said on Thursday. He said India is implementing QCOs (quality control orders) to promote manufacturing of quality goods in the country. The rules, standards, and process are the same for domestic as well imported goods and India does not discriminate between domestic manufacturers and foreign suppliers, he said, adding that equal treatment is given to companies of all the countries. “But certainly there could be room to find innovative solutions so that it becomes easier for…

India places a high priority to its relations with the European Union, the centrepiece of which is the Free Trade Agreement negotiations that are making very good progress, External Affairs Minister S Jaishankar said here on Wednesday. During a conversation with The Financial Times Brussels Bureau Chief Henry Foy at the German Marshall Fund (GMF) Forum, the external affairs minister expressed confidence that the year-end timeline set for the completion of the India-EU Free Trade Agreement (FTA) seems “feasible” following his in-depth talks with EU officials this week. He also highlighted the strength of the two-way relationship that goes beyond…

Kolkata: Tea exports from India increased by 9.92 per cent at 254.67 million kg, from January to December 2024, against 231.69 million kg in the previous calendar year. According to the latest data released by Tea Board, production in the north Indian estates during calendar 2024 stood at 154.81 million kg, as compared to 141 million kg in the preceding period from January to December 2023, registering a rise of 9.79 per cent year-on-year. In south India, production volumes from January to December 2024 stood at 99.86 million kg, as against 90.69 million kg in the previous calendar of 2023,…

Mango prices have plunged up to a third year-on-year in Uttar Pradesh, the largest producer of the fruit in the country, amid increased supply, said growers and traders. Prices of the popular Dasehri variety, for instance, have fallen to Rs 40-45 per kg from Rs 60 per kg a year ago. “This year the mango production in Uttar Pradesh is estimated to be around 35 lakh metric tonnes, as compared to 25 lakh metric tonnes last year. There was 100% flowering of the mango trees, which indicates that the production will be good,” said S Insram Ali, president of the…

India’s poverty continues to decline steadily, with the poverty rate likely to fall to 4.6 per cent in 2024, estimates a recent report by the State Bank of India (SBI). This marks a significant improvement from the 5.3 per cent poverty rate estimated by the World Bank for India in 2023. The report said “Poverty estimates by SBI and World Bank are remarkably similar…. SBI estimates it at 4.6 per cent in 2024…down from 5.3 per cent in 2023 as estimated by World Bank”. The report highlighted that the country has made remarkable progress in reducing poverty, and its latest…

MUMBAI: The Reserve Bank of India (RBI) has once again flagged concerns over mis-selling of financial products such as insurance, and said it is considering framing guidelines to address the issue. Addressing the Issue “The concern is that such mis-selling without regard to suitability and appropriateness would beget distrust in schemes aimed at providing a safety net to the low-income households by creating artificial boundaries,” Reserve Bank of India deputy governor M Rajeshwar Rao said on Monday. “We are examining whether it necessitates framing of guidelines to address mis-selling of financial products and services by regulated entities.”The regulator was also…

The Reserve Bank of India (RBI) is expected to hold interest rates in August but possibly make yet another reduction later this year, following its greater-than-expected cut on Friday aimed at bolstering growth. A poll by ET showed that eight out of 10 institutions expect a rate cut either in October or December while two do not expect any reduction until December. All participants expect a pause in August. Nomura is the only participant anticipating a25 bps rate cut in the October and December policy reviews. The next meeting of the RBI Monetary Policy Committee (MPC) is scheduled for August…

New Delhi: The government has identified 12 cities with a population of more than 2.5 million each to monitor e-commerce price trends as part of efforts to accurately capture changing consumption patterns in the new Consumer Price Index (CPI) series, which is scheduled for release in 2026, said people aware of the development. In each of these cities, prices of a particular item charged by the leading seller in that city will be noted. For instance, rice prices in Lucknow could be tracked via BigBasket, while in Bengaluru it might be Amazon, said an official, who did not wish to…

Union Minister Piyush Goyal on Saturday described his meeting with UK Foreign Secretary David Lammy as ‘fruitful’ as they discussed avenues to deepen bilateral trade and strengthen collaboration across various sectors to “unlock” the full potential of our Comprehensive Strategic Partnership. “Had a fruitful meeting with UK Foreign Secretary David Lammy today. We both expressed our appreciation towards the work done in finalising the historic India-UK FTA, which is poised to give further boost to our growing ties. We further discussed avenues to deepen bilateral trade and strengthen collaboration across various sectors to unlock the full potential of our Comprehensive…

New Delhi: India has imposed anti-dumping duty on imports of insoluble sulphur from China and Japan. It also imposed anti-dumping duty on imports of vitamin-A palmitate from China, the European Union and Switzerland. The move was initiated following a recommendation by the Directorate General of Trade Remedies (DGTR) to safeguard the domestic industry from the unfairly priced imports. These duties will be applicable with immediate effect and will remain in force for five years, the Central Board of Indirect Taxes and Customs said in two separate notifications issued late Friday. Live Events In its investigation in March, the DGTR found…

The recent policy actions by the Reserve Bank of India (RBI) appear to mark the end of the current interest rate cutting cycle, according to a report by Union Bank of India. The report states that the terminal repo rate is now likely to settle at 5.50 per cent, assuming a real interest rate of around 150 basis points and an inflation forecast of 4 per cent for the financial year 2025-26. It said, “We believe that this stealth easing concludes the rate cutting cycle for now with terminal rate of 5.50 per cent”. The report noted that the RBI’s…

New Delhi: Nomura lowered India’s inflation forecast to 3.3% in FY26 from 3.9% earlier and said cooling inflation will create more space for monetary policy easing. A strong winter crop harvest, decline in pulse prices due to higher supply, lower agricultural input costs and potentially favourable monsoons should lower food inflation, it said. Meanwhile, a negative output gap, lower manufacturing input costs and moderating wage growth are likely to keep core inflation capped, it added. The Reserve Bank of India’s monetary policy committee (MPC) announced a 50-basis points policy rate cut to 5.5% on Friday. Nomura projects the rate to…

India continues to draw strong foreign investor interest, with gross foreign direct investment (FDI) inflows rising 14% to $81 billion in FY2024-25, Reserve Bank of India Governor Sanjay Malhotra said Friday, saying that India continues to be an attractive investment destination. The rise in gross FDI, from $71.3 billion a year ago, shows growing confidence in India’s economic fundamentals. However, net FDI inflows moderated to $ 0.4 billion in 2024-25 from $ 10.1 billion a year ago, governor said that it is sign of a maturing economy where capital inflows and outflows coexist, offering investors both entry and exit flexibility.…

New Delhi: The Niti Aayog will launch the first edition of its investment friendliness index in August, paving the way for companies to zero in on a state for investment based on the availability of skilled manpower, requisite infrastructure and ease of operation and compliance, said a senior government official. The index will also help incentivise states to improve their ranking, which in turn will improve India’s overall investment climate, the official told ET. The Aayog has sourced data from all states and union territories and will follow a transparent methodology to arrive at the ranking of the states. “The…

In what might sound like a major anomaly, in a high-flying economy bolstered by a booming bull market, it’s the high & mighty that are coming up short. Even as the Indian economy flourishes and the stock market witnesses a bull run for the ages, many high net-worth individuals (HNIs) seem to be struggling to meet their financial aspirations, a new survey has found. In essence, the “India Wealth Survey 2025,” conducted by Marcellus Investment and Dun & Bradstreet, has revealed things that are hard to associate with the rich in an economy like India’s. Limited savings, heavy debt The…