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…

New Delhi: India is weighing the uncertainties created by US court rulings before finding pathways which are good for the country, officials said. Several US court rulings have suggested that some of President Trump’s policies under challenge may fall short of legal requirements. But they are still not final rulings on the issue. New Delhi is looking for a balanced and a mutually beneficial trade agreement with the US but what it gets as compared to other countries will determine what is ultimately finalised in the deal. “What we get as compared to other countries, will determine what we ultimately…

India’s dominant services sector maintained its robust growth in May, fueled by strong export demand and record hiring, although price pressures intensified, a survey showed on Wednesday. The HSBC India Services Purchasing Managers’ Index , compiled by S&P Global, stood at 58.8 in May, marginally up from April’s 58.7 but lower than a preliminary reading of 61.2. It has been above the 50-mark separating growth from contraction for nearly four years. New business – a key gauge for demand – expanded at a sharp pace in May, largely aligned with growth rates seen from February through April. Companies attributed this…

Any further escalation in the Russia-Ukraine conflict will have a significant downward impact on the global economy, said Alvaro Santos Pereira, chief economist at the Organisation for Economic Cooperation and Development. He told ET’s Deepshikha Sikarwar in an interview that India continues to be the champion of growth and the reason it continues to show bright economic performance is the constant emphasis on reforms. Edited excerpts: How should economies be navigating the ongoing uncertainties in trade policy and what kind of an impact do we expect from this tariff war? There has been a significant change in trade policy, especially…

The Reserve Bank of India’s (RBI) decision to maintain higher risk buffers is expected to strengthen its balance sheet and support India’s macroeconomic fundamentals, especially at a time when global oil prices are expected to remain benign, according to a recent report by ICICI Bank. The report noted that the RBI’s strong risk buffer not only adds to its financial resilience but also provides a tailwind for the broader Indian economy. It said “we believe higher risk buffer by RBI strengthens its balance sheet and provides a tailwind for India’s macroeconomic fundamentals when oil prices too are expected to be…

New Delhi: India’s manufacturing activity slipped to a three-month low in May with inflation and India-Pakistan conflict impacting growth in output and new orders even as they remained well above long-run average, according to a private survey released on Monday. The HSBC Purchasing Managers’ Index (PMI), compiled by S&P Global, fell to 57.6 in May from 58.2 in April. “India’s May manufacturing PMI signalled another month of robust growth in the sector, although the rate of expansion in output and new orders eased from the previous month,” said Pranjul Bhandari, India chief economist at HSBC. Healthy domestic and international demand,…

Commerce and Industry Minister Piyush Goyal has said that negotiations between India and Oman for the proposed free trade agreement (FTA) are progressing, and some “good news” may come “very soon” on that. The negotiations received a much-needed impetus after the visit of Goyal to Muscat in January this year. The talks for the agreement, officially dubbed as the Comprehensive Economic Partnership Agreement (CEPA), formally began in November 2023. “I think you will see some good news very soon on the Oman FTA,” the minister told reporters here when asked whether the FTA talks with Oman can be concluded this…

Mumbai: The Reserve Bank of India is expected to cut interest rates for the third straight monetary policy meeting this week amid easing price pressures, according to economists. They are now keenly awaiting the central bank’s commentary on inflation and growth to get an idea about how long it would continue with the easing cycle to fuel demand in an economy growing faster than expectations despite faltering consumption. All 12 financial institutions in an ET poll predicted a quarter-percentage-point cut in the policy repo rate, or the rate at which the central bank lends to banks, to 5.75% at the…

For the past seven years, Singapore has maintained its status as the biggest source of foreign direct investment (FDI) in India, with an impressive inflow of nearly $15 billion recorded for the fiscal year 2024-25, numbers released on June 1 showed. In the previous fiscal year, the overall foreign investment saw a notable increase of 13 per cent, reaching $50 billion. The total FDI — which encompasses equity inflows, reinvested earnings, and other forms of capital — rose by 14 per cent to stand at $81.04 billion during the last financial year, marking the highest figure in three years. Foreign…

New Delhi: US President Donald Trump’s announcement to double tariffs on imported steel and aluminium will impact Indian exporters, particularly those engaged in value-added and finished steel products and auto-components, experts say. Expressing concern over the Trump-administration’s move, they said the Indian government should take up the matter bilaterally with the US authorities. On May 30, Trump announced that he would double the existing 25 per cent tariffs on steel and aluminium imports from June 4. This hike comes under Section 232 of the US Trade Expansion Act of 1962, a law that allows the president to impose tariffs or…

India’s economy delivered stronger-than-expected growth in the fourth quarter of FY25, largely due to a sharp rise in net indirect tax collections, according to a report by the State Bank of India. The report said that GDP grew by 7.4% in Q4 FY25, surprising observers with a performance driven by a 12.7% increase in net indirect taxes. This spike in tax revenue played a significant role in boosting overall economic activity during the quarter. “Q4 throws a pleasant surprise at 7.4 per cent buoyed by growth in net indirect taxes,” the report stated. SBI projected a positive outlook for the…

Industry body Assocham on Friday said India retained its position as the world’s fastest-growing major economy in 2024-25, with real GDP expanding 6.5 per cent. Growth accelerated more in the second half as compared to the first half, achieving a 7.4 per cent rise during the March quarter. “This pick-up was supported by robust domestic demand, strong public infrastructure investment and shifting global supply chains that increasingly favour India amid geopolitical reorientations,” Assocham President Sanjay Nayar said.He further said construction, manufacturing and services sectors were key drivers of this momentum, strengthening India’s macroeconomic stability and global growth leadership. The 6.5…

The Reserve Bank of India (RBI) is fortifying its foreign exchange reserves against geopolitical risks by diversifying its assets across currencies, asset classes, and jurisdictions, even as its balance sheet grew by 8.2 per cent to Rs 76 lakh crore in FY25. This move comes as the central bank addresses concerns over the “weaponisation of reserves”, ToI reported on May 30 based on the central bank’s annual report released a day earlier. The RBI is aiming to insulate the Indian economy from external shocks, while also focusing on domestic data protection through the development of its own cloud services and…

Kolkata: The government has asked air-conditioner manufacturers to push exports on a much larger scale because the boost to the industry via the production linked incentive (PLI) scheme for white goods such as AC and LED lights has not reflected in shipments to foreign shores. Minister of commerce and industry Piyush Goyal discussed this in a meeting with senior industry executives earlier this month, people aware of the development said. The government is of the view that the category has huge potential to grow India’s electronics export value after smartphones. It wants India to export 15-16 million units in the…

The Reserve Bank of India’s net income stood at Rs 2.69 lakh crore in the financial year ending March 2025 against Rs 2.11 lakh crore in the previous year, according to its annual report. India’s central bank saw a gain of 1.11 trillion rupees from foreign exchange transactions during the year versus 836.16 billion rupees last year, showed the report, which was released on Thursday. Interest income from foreign securities 970.07 billion rupees versus 653.28 billion rupees last year.

To enhance traffic flow and decongest Delhi-Gurugram section of national highway (NH) 48, the National HIghways Authority of India (NHAI) has begun trial run of the tunnel and underpasses on the Delhi section of Dwarka Expressway starting from Thursday for three hours every day. “The trials run mark a significant step toward enhancing mobility and reducing congestion in Delhi NCR,” the ministry of road transport and highways said in a statement issued on Wednesday. The tunnel is likely to be fully operational from 5th June 2025. “The trial period will help NHAI to monitor and evaluate traffic patterns, safety measures,…

Foreign Secretary Vikram Misri met Under Secretary Jeffrey Kessler on Wednesday and discussed advancing India-US cooperation in critical and emerging technologies. The two officials also discussed the early convening of the India-US Strategic Trade Dialogue, to further strengthen bilateral collaboration in the technology and trade sectors. Sharing a post on X, the Indian Embassy in Washington wrote, “Foreign Secretary Vikram Misri met Under Secretary Jeffrey Kessler to advance India-US cooperation in critical and emerging technologies. They also discussed early convening of the India-US Strategic Trade Dialogue to deepen tech and trade collaboration.” Misri is currently in the United States for…

New Delhi: India’s overall goods and services exports are expected to reach $1 trillion in FY26 aided by more trade agreements with key trade partners coming into force amid Indian export consignments having gradually started moving through the Red Sea route again, Federation of Indian Export Organisations (FIEO) said Tuesday. In 2024-25, India’s exports were $825 billion. FIEO President S C Ralhan said that merchandise exports will increase to $525-535 billion this fiscal from $437 billion, led by electronics, agriculture and petroleum products while services exports are seen rising to $465-475 billion from $387 billion. Another factor will be the…

India’s Index of Industrial Production, a measure of industrial output, will decelerate to 1.2 per cent year on year in April 2025 from 3 per cent in March due to the broad-based slowdown in economic activity, particularly mining and manufacturing, says a report by the Union Bank of India (UBI) According to the report, the country’s IIP is expected to stay significantly lower than the 5.2 per cent of April 2024, indicating a “slowdown in economic activity” in the Indian economy. “We had flagged a potential sharp slowdown in April IIP numbers in the March data report (IIP March 2025)…

A NITI Aayog report on Monday mentioned Turkiye as one of the nations from which India can adopt global best practices for addressing skill gaps in the country’s medium enterprises. The report titled ‘Designing a Policy for Medium Enterprises’ listed programmes of Turkiye in addition to Canada, Singapore and Australia for encouraging medium enterprises. The report said Turkiye’s “KOSGEB provides distance training on entrepreneurship; an effective, easy and flexible entrepreneurship training without time and space constraints by E- Akademi Programme … Entrepreneurship Support Programme, with preferential treatment for women, youth and handicapped entrepreneurs.” Also, observing that Turkiye’s e-Academy is an…

India’s central bank is taking another step to internationalise the rupee, seeking approval to allow domestic banks to lend the currency to overseas borrowers for the first time, two sources said. The Reserve Bank of India (RBI) has asked the federal government to allow domestic banks and their foreign branches to lend Indian rupees to overseas borrowers to enhance the use and acceptability of the local currency in trade. The proposal, which was sent to the finance ministry last month, suggests lending in rupees to non-residents can begin in neighbouring countries such as Bangladesh, Bhutan, Nepal and Sri Lanka, the…

India has become the fourth largest economy in the world, overtaking Japan, NITI Aayog CEO BVR Subrahmanyam has said. Subrahmanyam said the overall geopolitical and economic environment is favourable to India. “We are the fourth largest economy as I speak. We are a USD 4 trillion economy as I speak,” he said. Citing IMF data, Subrahmanyam said India today is larger than Japan. Till 2024, India was the fifth-largest economy in the world. “It is only the US, China and Germany which are larger than India, and if we stick to what is being planned and what is being thought…

The government has ratified an interest rate of 8.25% on Employees’ Provident Fund (EPF) deposits for the financial year 2024-25, benefitting over 70 million subscribers. The labour ministry has directed the Employees’ Provident Fund Organisation (EPFO) to begin crediting the interest — unchanged from FY24 — to subscribers’ accounts, following approval from the finance ministry. EPF offers relatively high and stable returns compared to other fixed-income instruments, ensuring steady growth of savings for its subscribers. Besides, the interest earned on EPF deposits is tax-free up to a specified limit, making it a highly attractive investment option for salaried individuals. The…

India has become the fourth largest economy in the world, overtaking Japan, NITI Aayog CEO B V R Subrahmanyam said on Saturday. Briefing reporters after the 10th Governing Council meeting of Niti Aayog, Subrahmanyam said overall geopolitical and economic environment is favourable to India. “We are the fourth largest economy as I speak. We are a USD 4 trillion economy as I speak,” he said. Citing IMF data, Subrahmanyam said India today is larger than Japan. “It is only US, China, Germany, which are larger than India and if we stick to what is being planned and what is being…

The fiscal deficit of the central government could ease by 20 to 30 basis points from the budgeted level of 4.5 per cent to 4.2 per cent of GDP by the bumper dividend transfer by Reserve Bank of India, according to a report by State Bank of India. The Union Budget for 2025-26 had projected a dividend income of Rs 2.56 lakh crore from the Reserve Bank and public sector financial institutions. However, with the latest transfer from the RBI, the actual dividend income will be much higher than budgeted. The report mentioned that this additional revenue gives the government…

India has urged member nations of BRICS group to dismantle export controls within the bloc to boost trade, an official statement said on Friday. Representing India at the 15th BRICS trade ministers’ meeting in Brazil, Economic Adviser in Department of Commerce Yashvir Singh emphasised the need to eliminate restrictive trade measures that disrupt critical supply chains. “India used the platform to oppose export controls among BRICS members, encouraging mutual support within the bloc,” the commerce ministry said. As India prepares to assume the BRICS Presidency in 2026, it commended the solution-oriented approach of the Brazilian Presidency in addressing critical trade…

(This story originally appeared in on May 23, 2025) In his first interview since taking over as RBI governor, Sanjay Malhotra tells TOI’s Mayur Shetty & Sidhartha that while tariffs can have a short-term impact on economic growth, India’s status as the world’s fastest-growing economy won’t be impacted. On rupee volatility, he said RBI doesn’t target a specific rupee-dollar rate. And on FDs, the governor said lower inflation means real rates of interest on deposits will still be attractive. Edited excerpts: What is your overall assessment of the Indian economy and how are the current trade dynamics affecting it? What…

The UK for the first time has agreed to accord non-discriminatory treatment to Indian companies in its public procurement system under the free trade agreement (FTA) between the two countries, an official said. On May 6, the two announced conclusion of negotiations for the FTA. It will be implemented next year. “For the first time, UK agreed to take binding commitment to provide non-discriminatory treatment to our suppliers under UK’s Social Value regime in their public procurement system,” the official said. Under the UK’s Social Value law, the British government departments require public authorities to have regard to economic, social…

India’s private sector activity accelerated at its fastest pace in over a year in May, driven by robust expansion in services even as price pressures intensified, a survey showed on Wednesday. HSBC’s Flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, rose to 61.2 this month from April’s 59.7 – the sharpest rate of increase since April 2024 and confounding a Reuters poll median forecast for a dip to 59.5. The 50-mark separates contraction from expansion, and the latest reading showed sustained private sector growth for nearly four years. “India’s flash PMI indicate another month of strong economic…

It will be “quicker, cheaper and easier” for British companies to trade with India as a result of the bilateral Free Trade Agreement (FTA) struck earlier this month, the UK government said on Wednesday. Business and Trade Secretary Jonathan Reynolds described the FTA as the “best deal India has ever agreed to” as he convened a revamped advisory board for its first meeting, tasked with boosting exports to grow the UK economy. The Board of Trade, made up of UK business experts, is charged with delivering targeted support for small businesses across the country and helping firms utilise the exporting…

India is well-positioned to deal with the negative effects of US tariffs and global trade disruptions as domestic growth drivers and low dependence on exports anchor the economy, Moody’s Ratings said on Wednesday. In a note on India, the agency said government initiatives to boost private consumption, expand manufacturing capacity and increase infrastructure spending will help offset the weakening outlook for global demand. Easing inflation offers the potential for interest rate cuts to further support the economy, even as the banking sector’s liquidity facilitates lending. “India is better positioned than many other emerging markets to deal with US tariffs and…

The Union Minister of Ports, Shipping & Waterways (MoPSW), Sarbananda Sonowal, reviewed the ongoing projects in Assam and the Northeast with the senior officials from the Ministry of Ports, Shipping & Waterways (MoPSW), theInland Waterways Authority of India (IWAI), Public Work Department (PWD), Indian Port Rail and Ropeway CorporationLimited (IPRCL) and Cochin Shipyard Limited (CSL). The minister underscored the need to complete the projects on time in line with the broader vision of Prime Minister Narendra Modi’s Viksit Bharat. “Northeast is the topmost priority for PM Narendra Modi ji, our work in the region must sync with the vision of…

Commerce and Industry Minister Piyush Goyal on Tuesday held discussions with US Commerce Secretary Howard Lutnick in Washington to expedite negotiations on the first phase of the proposed bilateral trade agreement between the two countries. Goyal is in Washington for a ministerial-level meeting to review the progress of negotiations of the trade pact. “Good discussions with Secretary @HowardLutnick towards expediting the first tranche of India-US Bilateral Trade Agreement,” Goyal said in a post on X. Goyal was in Washington in March also for the trade talks. The minister-level meeting is followed by the deliberations between chief negotiators of the two…

MUMBAI: The Reserve Bank of India has proposed relaxing norms for investments in alternate investment firms by regulated entities (REs) in the aftermath of its earlier tightening bringing in financial discipline, it said in a release on Monday. In December 2023, the RBI had barred REs, including banks and non-banking finance companies (NBFCs), from investing in alternate investment funds (AIFs) that have investments in existing and recent borrowers. In a draft proposal released, it said a single RE’s contribution to any alternate investment fund (AIF) scheme shall be capped at 10% of its corpus while a ceiling of 15% would…

After India placed curbs on Bangladeshi exports via land ports, the interim government in the country says it wants to resolve all trade problems with India. An Adviser to the Interim government of Bangladesh led by Nobel Laureate Muhammad Yunus, said that Bangaldesh wants to discuss all issues with India. Recently, India had banned the import of Ready Made Garments (RMG), Fruit/Fruit flavoured and carbonated drinks, baked goods, snacks, chips and confectionary, cotton and cotton yarn waste, plastic and PVC finished goods and wooden furniture from Bangladesh by road. Earlier, Bangladesh had banned the import of yarn from India by…

Land port restrictions imposed by India on select exports from Bangladesh to the north east is expected to restore equality in the relationship. While India had hitherto allowed all exports from Bangladesh without restrictions, the transit and market access to the north east had been restricted by Bangladesh. This measure by India restores equal market access for both countries. Bangladesh has been seeking equality in engagement with India, sources said. Relationship with Bangladesh will be on reciprocal terms. RMG imports from Bangladesh restricted to only two seaports (Kolkata and Nhava Sheva, Mumbai) is a reciprocal measure to Bangladesh imposing similar…

India has imposed new restrictions on imports from Bangladesh through land ports, affecting goods worth around USD 770 million. This amounts to nearly 42 per cent of total bilateral imports, according to the Global Trade Research Initiative (GTRI), a trade research group. The Union Ministry of Commerce and Industry issued the restrictions on Saturday following directions from the Directorate General of Foreign Trade (DGFT). The move limits several key Bangladeshi products, including readymade garments, processed foods, and plastic items, to specific sea ports or bans them entirely from entering India via land routes. For example, Bangladeshi garments, valued at USD…

The Reserve Bank of India announced that it will soon issue Rs 20 denomination banknotes in the Mahatma Gandhi (New) Series bearing the signature of the new RBI Governor Sanjay Malhotra, according to an official statement. The new notes will retain the existing design and features of the current Rs 20 notes in circulation, except for the new governor’s signature. The RBI also clarified that all previously issued Rs 20 banknotes will continue to be legal tender, as per the statement. Sanjay Malhotra was appointed as the RBI Governor, effective from December 11, 2024, and will continue for three years.…

Mumbai: The Reserve Bank of India’s (RBI) central board of directors is likely to meet on May 23 for an annual review of the central bank’s balance sheet and transfer of FY25 surplus funds to the government. The payout could be as high as Rs 3 lakh crore, exceeding last year’s dividend by nearly 50%. “We estimate an RBI dividend of Rs 2.6 lakh to Rs 3 lakh crore, depending on the level of provisioning,” said Gaura Sen Gupta, chief economist at IDFC First Bank. The RBI board also met on May 15 to review the Economic Capital Framework (ECF).…

India and the US will commence ministerial-level meetings in Washington from May 17 to assess the progress of negotiations for the proposed bilateral trade agreement, provide political guidance to chief negotiators and push forward efforts to deepen economic ties, an official said. Commerce and Industry Minister Piyush Goyal will hold deliberations on the agreement first with US Commerce Secretary Howard Lutnick and later with US Trade Representative (USTR) Jamieson Greer during his four-day visit, the official said. “The minister will be holding political-level discussions to give negotiations a political steer. They will assess the progress made in the negotiations in…

India’s economic growth forecast for 2025 has been revised downward to 6.3 per cent, and despite a projected moderation, the country remains one of the fastest-growing large economies, supported by resilient consumption and government spending, the United Nations has said. The UN on Thursday launched a report titled ‘The World Economic Situation and Prospects as of mid-2025’. “India remains one of the fastest growing large economies, driven by strong private consumption and public investment, even as growth projections have been lowered to 6.3 per cent in 2025,” Ingo Pitterle, Senior Economic Affairs Officer, Global Economic Monitoring Branch, Economic Analysis and…

The negotiations for the proposed bilateral trade agreement between India and the US are progressing well, a top government official said on Thursday. Commerce Secretary Sunil Barthwal said that an Indian team will be going to Washington for further discussions. Commerce and Industry Minister Piyush Goyal will lead a team of senior Indian officials to Washington starting May 17 for discussions with their US counterparts on the agreement. He will hold meetings with US Trade Representative (USTR) Jamieson Greer and US Commerce Secretary Howard Lutnick during his visit. The four-day talks (May 17-20) come against the backdrop of both countries…

Metal prices are likely to keep pushing up the Wholesale Price Index (WPI) in the coming months, according to a report by Union Bank of India. Despite a drop in WPI in April 2025, metals have shown a sequential pickup, indicating they may continue to influence the inflation trend. The report said “While food prices are expected on firm up in the next couple of months, metal prices may keep an upward pressure on WPI”. Core WPI, which excludes food and fuel, moderated to 1.40 per cent in April from 1.59 per cent in March. The rise in metal prices,…

Four Indian entities committed foreign direct investments worth nearly USD 6 million in Azerbaijan and Turkiye, accounting for a small part of the total USD 6.8 billion overseas investments proposed by Indian companies in April, according to the latest Reserve Bank data. India’s outbound FDI increased by nearly 90 per cent annually to USD 6.8 billion in April, led by Tata Communications, Life Insurance Company and JSW Neo Energy, according to the data. India’s outward foreign direct investment (FDI) stood at about USD 3.59 billion in April 2024 and USD 5.9 billion in March 2025. Among the investments, two Indian…

The Reserve Bank of India is scrutinizing some digital wallets associated with electric-vehicle players after the sudden collapse of the country’s largest all-EV taxi service left users unable to access money tied to their accounts, people familiar with the matter said. The review of payment tools used in India’s fledgling EV ecosystem is a result of troubles faced by users of app-based ride-hailing service BluSmart’s digital wallet. The events triggered by fraud allegations against the company highlighted the lack of safeguards for users who load money into what’s known as closed-loop wallets to transact on apps, including EV-related services like…

Currency notes aren’t museum pieces – at least, not yet – in the digital era. Growth in currency in circulation is higher at 2.4% year to date up to May 2, compared with 1.7 percent in the same period a year ago, showed the latest Reserve Bank of India (RBI) data, reflecting rural demand supported by farmgate prices of agricultural commodities. Currency usage has remained relatively strong despite the absence of a busy election calendar during which cash usage typically climbs. Total currency in circulation is at Rs 38.1 lakh crore as of May 2. This works to around 11.5…

As India and the United Kingdom successfully conclude their Free Trade Agreement (FTA), it has to be ensured that goods traded between the two nations have sufficient local content to prevent Chinese goods from entering markets through the backdoor, according to a report by Canara Bank.The report highlighted the need for strict measures to confirm the origin of goods. It said “it has to be ensured that goods traded between UK and India has sufficient local content to foolproof from Chinese goods finding their way to take advantage of lower duties.” The report called the FTA a major win for…

United States’ President Donald Trump has claimed that the reason behind the ceasefire agreement between India and Pakistan was due to trade. President Donald Trump said on Monday the United States is ready to help India and Pakistan in the wake of a ceasefire agreement that he says his administration helped broker. However, Indian officials stressed that the arrangement was negotiated strictly between New Delhi and Islamabad, in keeping with India’s long-standing position that all issues with Pakistan must be resolved bilaterally. “There is no decision to hold talks on any other issue at any other place,” a senior official…

India has topped the global charts in both manufacturing and services activity, according to the Purchasing Managers’ Index (PMI) data in report released by J.P. Morgan.The report data highlighted that for April 2025, India’s manufacturing PMI stood at 58.2, while its services PMI came in at 58.7. These are the highest figures among both developed and emerging markets. The PMI is an important indicator of economic health in the manufacturing and services sectors. A PMI above 50 shows expansion, while below 50 indicates contraction. India’s strong numbers signal that the country’s economy continues to grow at a steady pace. Compared…

India is not giving any duty concessions on British wines and is providing only limited import duty benefits on UK beer under the free trade agreement (FTA) between the two countries, announced on May 6, an official said. The other sensitive agri products where India will not offer any reduction in the import duty include dairy products, apple, cheese, oats, animals and vegetable oils under the agreement with the United Kingdom. “Wine is on the exclusion list, along with several other agricultural products in the trade pact. We are also offering only a limited duty concession on British beer,” the…

Pune: The southwest monsoon is likely to set over Kerala on May 27, five days earlier than normal, the India Meteorological Department (IMD) said on Saturday.The southwest monsoon, which brings 70% of India’s annual rainfall, is crucial for the agriculture sector that contributes about 20% to the gross value added in the country’s economy and supports around half of its 1.4 billion population. Its timely arrival and distribution are also key as most of the kharif sowing takes place during the first two months of the four-month rainy season. The weather office had on April 15 predicted that the 2025…

India and the UK earlier this week announced that they have concluded the negotiations for a free trade agreement to boost economic ties between the two countries. The talks commenced in January 2022. It is aimed at doubling the bilateral trade in goods and services from USD 60 billion at present to USD 120 billion by 2030. The trade pact will provide enhanced market access for a wide range of Indian goods and services in the UK. Similarly, British firms will also enjoy comparable benefits in the Indian market. Here are a few questions and answers (Q&A) explaining the benefits…

Kolkata|New Delhi: Several Indian manufacturers are effecting operational changes, including work timings, at their factories in the border states of Gujarat, Punjab, Jammu and Kashmir and Rajasthan. Through these measures, companies are looking to safeguard workforce while ensuring minimum disruption to production amid the conflict with Pakistan.Several areas which have been targeted by Pakistan have enforced blackouts and other measures to protect local population. Companies such as Amul, Awl Agri Business, Dabur, ITC, Dixon Technologies, Godrej Appliances, Mahindra Group-owned Swaraj Tractors and International Tractors have seen operations disrupted in the past two days. Some have either stopped factory night shifts…

India’s forex reserves dropped $2.06 billion to $686.06 billion for the week ending May 2, snapping an eight-week gaining streak that had lifted reserves to a near six-month high, according to data by the Reserve Bank of India on Friday. In the previous reporting week, the overall kitty had increased USD 1.983 billion to USD 688.129 billion. The forex reserves had touched an all-time high of $704.885 billion in end-September 2024. For the week ended May 2, foreign currency assets, a major component of the reserves, increased $514 million to $581.177 billion, the data released on Friday showed. Expressed in…

The recently concluded Free Trade Agreement (FTA) between India and the United Kingdom is expected to benefit both nations economically and could also pave the way for similar agreements with other countries such as the United States and the European Union, says a report by Bank of Baroda.The report noted that while the UK may not be among India’s top trading partners at present, the FTA marks a significant step forward. It sets the stage for deeper trade relations with major global economies and is a strong signal of India’s commitment to boosting international trade. It said, “While UK per…

New Delhi: With ensuing kharif sowing season, Union Agriculture Minister Shivraj Singh Chouhan on Thursday announced a pan-India 15-day campaign starting May 29 to educate and create awareness among 1-1.5 crore farmers about modern technology and new seed varieties. The minister also announced that the Centre will consider making amendments in Seeds Act, 1966 to curb sales of spurious seeds and protect farmers interest. Addressing a National Conference on Agriculture for Kharif Campaign here, Chouhan stressed on improving agriculture extension services to boost productivity and production of all major crops. He emphasised on taking the new technologies and research work…

India’s trade deal with the UK has significantly slashed duties on various products. 64% of tariff lines will be eligible for duty-free imports into India immediately after the pact is in force. This will include UK exports of… India’s Gains Indian exports to the UK which will become duty-free: UK’s Gains What are the tariff reductions on?

Commerce and Industry Minister Piyush Goyal will meet representatives of export promotion councils (EPCs) here on May 8 to discuss matters related to the free trade agreement with the UK, an industry official said on Wednesday. India and the UK clinched a ‘landmark’ trade deal that 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 world’s fifth and sixth-largest economies concluded the deal after three years of…

India and the UK reached a free trade agreement (FTA) that aims to boost economic ties between the world’s fifth- and sixth-largest economies, among the first such global accords in the Trump tariff era. The deal will make British Scotch whisky and cars cheaper in India, while reducing duties on Indian goods such as garments and leather products in the UK.Prime Ministers Narendra Modi and Keir Starmer announced the FTA and a Double Contribution Convention, a social security pact, following a phone conversation on Tuesday. The two sides originally aimed to ink the deal in October 2022. The UK said…

India and the UK clinched a ‘landmark’ trade deal that 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 world’s fifth and sixth-largest economies concluded the deal after three years of on-off negotiations. The pact lowers tariffs on 99 per cent of Indian goods to zero in the UK market while allowing Indian workers to travel to the UK for work without changing Britain’s point-based immigration system.…

The share of gold held by India’s central bank in its foreign exchange reserves has doubled in the last four years as on March-end, a report by the Reserve Bank of India showed on Monday. In dollar value terms, the share of gold in the total foreign exchange reserves increased to about 11.70% by end-March, from 9.32% as at end-September 2024 and 5.87% as on end-March 2021, the central bank’s half year forex reserves report said. As of end-March, the RBI held 879.59 metric tonnes of gold, compared to 854.73 metric tonnes at the end of September. The proportion of…

Even as digital payments penetration gets deeper cash usage through ATM withdrawals continues to rise with some states seeing as much as 8 percent growth in ATM usage according to a report by Cash management and logistics firm CMS Info Systems.Average cash dispensed per ATM by CMS which accounts for about 42 percent of the cash dispensation market has gone up from 1.02 crore in FY’17 to RS 1.30 crore in FY’25. Significantly three states Bihar, New Delhi, Uttar Pradesh and Himachal Pradesh witnessed the highest growth in cash dispensed through ATM, the report titled ” CMS Consumption Report 2025″…

The Ministry of Labour and Employment plans to review the process for the surrender or cancellation of the exempted status given to employers under the Employees’ Provident Fund Organisation (EPFO) to protect workers’ interests.Organisations employing workers above a certain threshold can seek exemption and manage provident fund contributions in-house under the EPFO’s watch. Employers surrendering their exempted status would come under the EPFO, which would then manage the PF money of their employees. The new rules, while trying to speed up the process, would impose greater accountability on employers that surrender their exemption, according to the draft minutes of a…

The conclusion of negotiations for three pacts, including the proposed free trade agreement (FTA) between India and the UK may take some more time, as both sides are yet to resolve certain outstanding issues, sources said. There are four or five issues in the three pacts that the two countries are negotiating, they added. The three pacts under negotiation are — FTA, bilateral investment agreement (BIT), and social security pact (officially dubbed as Double Contribution Convention Agreement). The progress of talks were recently reviewed during meetings between Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business…

Chief Economic Advisor (CEA) Dr V Anantha Nageswaran expressed confidence in the economy’s resilience and said India’s economy is in good shape despite the challenging global environment.Speaking at an event at Ashoka University on Saturday, India’s CEA Nageswaran also said that the current economic indicators show that the Indian economy is progressing well. Nageswaran highlighted the need for India to maintain macroeconomic stability while pursuing innovation-led, inclusive growth strategies. He stressed the need for targeted investments in human capital, technology, infrastructure, and continued structural reforms. “India’s economy is in good shape despite challenging global environment. While the final number for…

The Commerce Ministry has cautioned the domestic industry to strictly follow the US ‘rules of origin’ norms while exporting goods to America, as re-routing products from high-tariff countries without substantial value addition could be classified as transhipment and attract higher duties, an official said. The ministry has also assured the industry that all efforts would be made to codify the value addition norms to provide certainty and clarity to exporters, the official said. The issue was deliberated at length during a stakeholder consultation on India-US trade ties, convened by the ministry on May 2 here. The stakeholder consultation was chaired…

India will come out stronger, and not weaker, from the current global uncertainties around tariffs, and a trade deal with the US will be “incredibly favourable” for the country vis-a-vis some of its competitors, noted economist and 16th Finance Commission chairman Arvind Panagariya said on Friday. Panagariya said the US-China economic conflict, especially in trade, is here to stay, indicating gains for India. If Washington imposes higher trade curbs on Vietnam and Cambodia to prevent China from potentially using these countries to supply its goods to the US, India’s trade prospects will brighten further, he indicated.

An investment treaty between Britain and India will contain a provision that allows companies to sue either government if they believe policy changes unfairly harm their investment or profits, two sources familiar with discussions told Reuters. The Investor-State Dispute Settlement (ISDS) mechanism is aimed at protecting companies against possible unfair treatment under local laws, and will be included in an investment treaty that is expected to be struck alongside a free trade agreement shortly. The mechanism has been criticised in recent years, including by Britain’s previous Conservative government, for blocking efforts to fight climate change because fossil fuel producers can…

Union Minister of Commerce and Industry, Piyush Goyal, held a key meeting with European Union Commissioner for Trade and Economic Security, Maros Sefcovic, in Brussels to discuss the progress of the India-EU Free Trade Agreement (FTA).Both sides reaffirmed their commitment to concluding the long-awaited trade deal by the end of 2025. Goyal described the dialogue as “highly productive,” saying that it helped redefine the India-EU partnership. The meeting focused on enhancing market access for businesses in both regions and strengthening trusted, diversified supply chains. The discussions aimed to ensure that the FTA would not only be strategic but also mutually…

Kolkata, Finance and Corporate Affairs Minister Nirmala Sitharaman on Thursday said the most effective path for building economic resilience is to build domestic efficiencies and competitiveness. The government sees the private sector as a trusted co-partner in development, she said while addressing the officers of Ministry of Corporate Affairs after inaugurating the ‘Corporate Bhavan’ in New Town here. “In this phase of a rapidly evolving global policy landscape with a number of imponderables, our conviction is that the most effective path to building economic resilience is to build domestic efficiencies and competitiveness,” the minister said. Sitharaman further said that improving…

The cabinet approved a 4.41% increase in the price at which sugar mills will have to buy sugarcane from farmers for the season starting in October, raising it to ₹355 per quintal from ₹340 earlier. The hike in the fair and remunerative price (FRP) of sugarcane will benefit 50 million sugarcane farmers, as well as 500,000 workers employed in sugar mills and related ancillary activities, the government said. The new FRP is applicable for a basic recovery rate of 10.25%, providing a premium of ₹3.46 per quintal for each 0.1% increase in recovery over and above the 10.25% and reduction…

Services sector enterprises with less than Rs 500 crore output accounted for 63.03 per cent of the total employment in the segment, according to a government survey released on Wednesday. The first pilot study on the Annual Survey of Services Sector Enterprises (ASSSE) conducted by the Ministry of Statistics & Programme Implementation revealed that larger enterprises with output Rs 500 crore and above dominate in terms of asset ownership (62.77 per cent), net fixed capital formation (62.73 per cent), gross value added (69.47 per cent) and total compensation (63.17 per cent). The data also showed “that enterprises (having output below…

Capital expenditure by private sector enterprises is expected to have grown by 66.3% to Rs 6.6 lakh crore in FY25 from Rs 3.9 lakh crore in FY22, according to a report released by the ministry of statistics and programme implementation (MoSPI) on Tuesday.It is likely that private capex reached its highest level in FY25 between FY22 and FY26. In FY26, private capex is expected to reach Rs 4.9 lakh crore, registering a growth of 23.9% from FY22. “The slightly lower intended capex for 2025-26, though still above 2023-24 levels, reflects cautious planning after a strong 2024-25,” the ministry said in…

The Reserve Bank on Tuesday launched three key surveys, including inflation expectations, to gather useful inputs for monetary policy decisions. The RBI normally holds six bi-monthly monetary policy reviews in a financial year. The last meeting was held earlier this month, and the next meeting of the Monetary Policy Committee is scheduled for June 4-6. The May round of the Inflation Expectations Survey of Households (IESH) aims at capturing subjective assessments on price movements and inflation, based on their individual consumption baskets, across 19 cities. The central bank said the Urban Consumer Confidence Survey (UCCS) seeks qualitative responses from households,…

Union Minister of Commerce and Industry Piyush Goyal’s meetings in London, focused on boosting investment ties and strengthening bilateral trade between India and the United Kingdom.Goyal is on a two-day visit to London for a series of discussions aimed at deepening economic cooperation. On the first day of his visit, Goyal met with various industry leaders to explore new opportunities. He held a meeting with Martin Gilbert, Chairperson of Revolut App, where they discussed the immense growth potential in India’s fintech ecosystem. They also spoke about the importance of partnerships with global players to drive innovation and support the sector’s…

American sourcing firms and exporters in China are approaching Indian companies to supply goods to the US as high tariffs imposed by Washington are making it difficult for them to ship directly to America, apex exporters’ body FIEO said on Monday. The US has imposed 145 per cent tariffs on Chinese goods entering the American market. For India, the duty is just 10 per cent. Federation of Indian Exporter Organisations (FIEO) Director General Ajay Sahai said US sourcing firms in China are in touch with domestic manufacturers through diplomatic channels to buy goods from India and export to America to…

Some China-based firms hit hard by US tariffs are reaching out to Indian exporters to fill orders on their behalf and help them retain their American customers as they navigate a trade war causing seismic shocks in global commerce.At the Canton Fair that runs through May 5 in Guangzhou — the world’s biggest trade fair — several Indian firms were approached by Chinese companies to supply goods to their US customers, said Ajay Sahai, director general of Federation of Indian Export Organizations. In return for the sales, the Indian firms would pay a commission to the Chinese businesses, he said…

Reserve Bank of India (RBI) governor Sanjay Malhotra has pitched India as a long term investment destination. Speaking at US-India Economic Forum organised by the Confederation of Indian Industry (CII) and US India Strategic Partnership Forum (USISPF) in Washington, Malhotra said, India continues to offer strong growth and stability making it a natural choice for investors seeking long term value and opportunity, at a time when advanced countries are facing economic headwinds. ‘India’s strong domestic demand and relatively lower dependence on exports cushions the Indian economy from external spillovers,’ Malhotra said.He mentioned that over the past four years (2021-22 to…

New Delhi: The Centre on Saturday empowered the Indian Cybercrime Coordination Centre (14C), allowing it to receive and share information with other agencies to tackle money laundering linked to cybercrime.In a gazette notification, updated late evening, the Centre added it to the list of entities under Section 66 of the Prevention of Money-Laundering Act (PMLA). The agency will now have access to crucial data from other agencies to strengthen enforcement actions against cybercrime-related financial transactions. The Indian Cybercrime Coordination Centre (ICCC), officially known as I4C, is a nodal agency established by the Ministry of Home Affairs (MHA) to address cybercrime…

Union Minister Rajiv Ranjan Singh will on Monday inaugurate and lay the foundation for key projects for seven coastal states and union territories with a total outlay of Rs 255.30 crore under Pradhan Mantri Matsya Sampada Yojana (PMMSY). The minister, at the coastal states meet to be held in Mumbai, will also launch a set of key initiatives aimed at strengthening marine fisheries and promoting sustainable practices including Marine Fisheries Census Operations, Turtle Excluder Device (TED) project and release of Standard Operating Procedure for Vessel Communication and Support System. Ministers of State for Fisheries and Animal Husbandry S P Singh…

India is witnessing a positive trend in job growth, according to the latest World Bank report. Since the 2021-22 fiscal year, employment in the country has grown at a faster pace than the working-age population, the report highlighted. A significant aspect of this growth is the rising participation of women in the workforce. “Employment growth has outpaced the working-age population since 2021-22. Employment rates, especially among women, are rising, and urban unemployment fell to 6.6 per cent in Q1 FY24/25, the lowest since 2017-18,” the World Bank report said. The report also noted a sharp fall in urban unemployment. In…

Edible oil industry body SEA has demanded that the government should raise import duty on refined palm oil to 40 per cent from the current 32.5 per cent to protect the domestic processing industries. Solvent Extractors’ Association of India (SEA) President Sanjeev Asthana has written a letter to Union Food and Cosnumer Affairs Minister Pralhad Joshi requesting him to raise import duty difference between CPO and RBD Palmolein for providing level-playing field to domestic refining industries. “This import of finished goods is contrary to our national interests and is seriously affecting the capacity utilisation of our palm refining industry,” Asthana…

Pakistan has suspended all trade ties with India including through third countries, completely halting the two-way commerce which slowed since 2019 after the Pulwama attack. Kirtika Suneja takes a look at the trade between the two countries. (You can now subscribe to our Economic Times WhatsApp channel)

RBI has capped the penalty amount for FEMA violations to Rs 2 lakh, down from a percentage of the amount of violations earlier in an easing of regulations. Violations including use of liberalised remittance scheme (LRS) proceeds not reinvested within 180 days, exports not made within one year of advance receipt and gifting high value shares without RBI permission will now be penalised to a maximum of Rs 2 lakhs versus 0.30% to 0.75% of the violation amount earlier. The changes were made in the master directions on FEMA by RBI on Thursday. “…based on the nature of contravention, exceptional…

US President Donald Trump has said that he has received confirmation suggesting India intends to lower tariffs on certain goods. Speaking to reporters in the Oval Office, Trump said, “I understand that India will reduce tariffs.” However, he did not provide any further details about which products may be affected or the timeline for such a move. His comments come amidst the backdrop of trade discussions between the two countries that have been building since March. Bilateral Trade Agreement: India, US to start formal talks New Delhi and the US will begin a three-day round of discussions in Washington starting…

The Reserve Bank on Wednesday relaxed norms to facilitate export through warehouses in ‘Bharat Mart’, a multimodal logistics network-based marketplace in the United Arab Emirates, that will provide Indian traders, exporters, and manufacturers access to the markets around the world. In a circular, the RBI said banks may allow exporters to realise and repatriate full export value of goods exported to ‘Bharat Mart’ within nine months from the date of sale of the goods from the warehouse. Further, banks have been asked to allow opening/hiring of a warehouse in ‘Bharat Mart’ by an Indian exporter with a valid importer exporter…

India and the US have finalised the terms of reference for the proposed Bilateral Trade Agreement (BTA), laying a platform for formal negotiations to start. This is the first such framework finalised by the new Donald Trump administration for a trade deal. Highlighting “a serious lack of reciprocity” in the trade relationship between the two nations, US Trade Representative (USTR) Jamieson Greer said, “These talks will help achieve balance and reciprocity by opening new markets for American goods and addressing unfair practices that harm American workers.” Prime Minister Narendra Modi and US Vice President JD Vance had met a day…

India is poised to benefit from supply chain realignments, diversified FDI sources, and engagement despite weak global growth outlook due to tariff uncertainty which could result in lower investments spending and a slowdown in global trade, the “ State of the economy” report published in the Reserve Bank’s April 2025 bulletin said. India’s strong services export and inward remittances will provide a buffer for the current account. However, a calibrated policy support is needed for to India sail through turbulent times. “Calibrated policy support can help India turn global volatility into an opportunity and strengthen its position in the emerging…

India’s consumer sector is showing signs of a strong rebound, supported by several positive developments, according to a recent report by UBS. The report suggested that the sector, which has underperformed in recent years, is now positioned for a recovery as multiple factors align in its favour. It said, “The consumer sector looks ready to rebound, with several factors aligning favourably, Earnings look set to recover in FY26”. It expects earnings in the consumer sector to grow by around 13 per cent in the financial year 2025-26 (FY26), following a weak performance in FY25, where median earnings growth is estimated…

India’s Direct Benefit Transfer (DBT) system has helped the country achieve cumulative savings of Rs 3.48 lakh crore by plugging leakages in welfare delivery, a new quantitative assessment by the BlueKraft Digital Foundation found, the Ministry of Finance said on Monday. The report also finds that subsidy allocations have been reduced from 16 per cent to 9 per cent of total government expenditure since the implementation of DBT. It asserted that the DBT system has led to a major improvement in the efficiency of public spending. The assessment evaluates data from 2009 to 2024 to examine the impact of DBT…

India’s private sector capital expenditure (capex) could take a backseat in the near future due to rising uncertainty around global tariffs, according to a recent report by Goldman Sachs. The report highlighted that as tariff rates are yet to be finalised and are likely to remain in flux over the next few months, companies looking to invest in new projects may delay their plans. It said, “We think capital expenditure in the private sector will take a back seat or get pushed out given the recent developments around tariffs. As tariff rates get negotiated and firmed up over the next…

The China-Canada tariff war has opened up a Rs 1000 crore opportunity for India to export to Beijing rapeseed meal, a by product of mustard oil production. Such exports to China have gathered pace during past couple of weeks. The edible oil industry has also written a letter to the Centre requesting to start negotiations with China to relax some stringent conditions imposed on Indian rapeseed meal about a decade ago. Increased exports are likely to support the local mustard prices, which are suppressed now. China has imposed 100% duty on rapeseed meal and Canola oil as to retaliate against…

Mumbai: The Reserve Bank of India (RBI) governor, Sanjay Malhotra, Friday underscored the risks of dwindling liquidity in the call money market, a situation that could compromise transmission efficiency and prevent the economy from extracting optimal benefits through the current cycle of policy rate reductions. Asymmetries among the call money rate, the market repo rate and TREPS rate are also major concerns, and banks must take a proactive approach, the governor said at the 24th FIMMDA-PDAI Annual Conference in Bali on Friday. “The occasional asymmetries call for more proactive functioning by banks – the entities with sole access to RBI’s…

The Punjab government on Saturday said it has decided to provide a 33 per cent subsidy on BT cotton hybrid seeds, as part of its move to promote crop diversification in the state. The subsidy will be given on seeds which are recommended by Punjab Agricultural University (PAU), Ludhiana. Agriculture Minister Gurmeet Singh Khuddian said a sum of Rs 20 crore has been allocated for the subsidy programme and this move would reduce financial burden on cotton growers, while simultaneously discouraging the cultivation of non-recommended hybrids to enable them to adopt high-yielding and pest-resistant BT cotton hybrid seeds. The department…

New Delhi: The Centre’s move to shield consumers against substandard and cheap imports, especially from China, has had an unintended negative consequence: Supply chain risks for electronics manufacturing and exports. Aluminium, steel, copper and other high-volume base metals come under the ambit of New Delhi’s quality control orders (QCO) covering a large swathe of industries as diverse as automotive and large electrical appliances, which are prone to input-quality risks. But a small percentage of high-precision, expensive metals and polymers covered under quality control orders are also major inputs into electronics manufacturing, and blanket import curbs are posing sourcing challenges, industry…

The Ministry of Finance has categorically denied recent rumors suggesting that it is planning to impose Goods and Services Tax (GST) on Unified Payments Interface (UPI) transactions exceeding Rs 2,000. In an official statement issued on Friday by the Press Information Bureau (PIB), the government called such claims “false, misleading, and without any basis.” “The claims that the Government is considering levying Goods and Services Tax (GST) on UPI transactions over Rs 2,000 are completely false, misleading, and without any basis. Currently, there is no such proposal before the Government,” the statement clarified, reassuring users and merchants alike. “The government…

Mumbai: Finance Minister Nirmala Sitharaman Thursday said India will focus on policy agility amid an intensifying tariff war between the two biggest economies on the planet, seeking to mitigate the expected adverse impact on supply chains due to the surge in protectionism. “The recalibration efforts on trade are very challenging…it is worrisome, but also very challenging,” the minister said at a Mumbai event marking the 150th anniversary of the BSE. “India is confident that we will navigate these global disruptions with policy agility and long-term vision. Our focus remains firmly on building a robust domestic foundation – laid and strengthened…

India’s sugar production has reached 25.49 million tonnes so far in the ongoing 2024-25 season, down 18 per cent from a year ago, sugar mills body ISMA said on Thursday. The production fall is attributed to a decline in output in the country’s top three sugar producing states of Maharashtra, Uttar Pradesh and Karnataka. According to the data released by the Indian Sugar Bio-Energy and Manufacturers Association (ISMA), production in Maharashtra, India’s largest sugar producer, fell to 8.07 million tonnes till April 15 of the current season (October-September), from 10.94 million tonnes a year ago. Output in Uttar Pradesh, the…

New Delhi: India’s trade deficit with China surged to a record $99.2 billion in the just-ended fiscal year, while it registered a trade surplus of $41.2 billion with the US, showed official data released on Wednesday. India had trade deficits of $26.79 billion and $13.64 billion with the UAE and Hong Kong, respectively, during the year ended March 31. Notably, the country registered trade deficits with its free trade agreement partners such as the UAE, Australia, Japan, South Korea and Malaysia. Imports from China rose 11.5% to $113.4 billion. Dumping Watch The surge was fuelled by rising demand for electronics,…

India plans to end taxes on U.S. ethane and liquefied petroleum gas (LPG) imports under broader negotiations with Washington as it looks to reduce its trade surplus and ease its tariff burden, three sources familiar with the matter said. The proposal to get rid of duties for the products used for cooking gas and petrochemical production comes as India mulls scrapping import tax for U.S. liquefied natural gas (LNG) and boosting purchases of the fuel from the United States. As President Donald Trump’s sweeping duties rattle economies and markets, several Asian countries running trade surpluses with Washington are looking to…

New Delhi: Bilateral economic pacts and free trade agreements must be “absolutely” expedited, ITC chairman Sanjiv Puri told ET, as a tariff-torn world scrambles to redraw trade frontiers that could help expand India’s bailiwick in several sectors where it is competitive. “We would like it to happen yesterday,” Puri said in an interview, while adding that developments since April 2 “are only providing some impetus for new trading blocs to be formed. Once these agreements are done, I think the playing field for Indian industries will become much larger.” The head of the maker of Sunfeast cookies and Fiama soaps…

The government has set up an inter-ministerial import surge monitoring group as high tariffs on certain countries like China and Vietnam may lead to diversion of goods to India, the commerce ministry said. It also said that Chinese retaliatory tariffs on US goods could further increase the inflow of US agricultural products into India. “With the global uncertainties related to tariffs, obviously there are elevated apprehensions related to likely flooding or surge in imports or surge…to look at that…import surge monitoring group has been set up,” Additional Secretary in the Department of Commerce L Satya Srinivas told reporters here. If…

New Delhi: India has identified at least 10 sectors, including apparel and clothing accessories, chemicals, plastics and rubber, where high US tariffs give New Delhi a competitive advantage in the American market over other suppliers, said officials in the know. The idea is to capitalise on the advantage in these sectors, which also include vehicles, other than railways, mineral fuel and pharmaceuticals, in the coming months to compensate for the loss in categories impacted by high tariffs. While India faces a 10% ‘baseline’ tariff after the US suspended the 26% ‘reciprocal’ duties for 90 days, the levy remains at 145%…

India’s exports of cut and polished diamonds plummeted to their lowest level in nearly two decades in the 2024/25 fiscal year, which ended in March, on sluggish demand from the United States and China, a leading trade body said on Monday. India is the world’s largest cutting and polishing hub, handling nine out of every 10 diamonds processed globally. But it is sensitive to economic uncertainty – particularly in the U.S., its biggest market. Cut and polished diamond exports, which usually account for nearly half of overall gem and jewellery shipments, fell 16.8% to $13.3 billion year-on-year, the Gems and…

India is unlikely to offer a ‘zero-for-zero’ tariff deal to the US as part of the Bilateral Trade Agreement (BTA) the two are negotiating, officials said, adding that such an arrangement can only be made between developed countries. The BTA is likely to be a package deal comprising issues such as goods, digital trade, movement of professionals, technical barriers to trade and intellectual property rights, among others. Talks this Week The two sides will begin virtual talks this week, with some clarity on the deal expected by the end of May. “The government is examining all 11,000 tariff lines under…

India’s import of crude soyabean oil more than doubled to 19.11 lakh tonne in the first five months of current oil marketing year ending October 2025, according to edible oil industry body SEA. The Solvent Extractors’ Association of India (SEA) data showed that the country imported 19,11,420 tonne of crude soyabean degummed oil during November 2024 and March 2025 period as against 8,82,943 tonne in the corresponding period of the 2023-24 marketing year. Edible oil marketing year runs from November to October. In case of crude soyabean degummed oil, India mainly imported from Argentina, Brazil and Russia. Imports from Argentina…

Pune: India’s nearly $5 billion shrimp export industry, which is heavily reliant on the US, has suggested various measures to the government to diversify the risks of overdependence on a single market. This comes as the industry expresses relief with US President Donald Trump declaring a return to the baseline 10% tariff and a 90-day pause on higher reciprocal tariffs on imports from several countries, including India. While shrimp farmers want the Centre to initiate a campaign for educating Indians to consume more shrimp, exporters are planning to enhance production of high-end value-added shrimp products to take China’s share of…

Antonio Tajani, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation of Italy is visiting India from 11-12 April. He was accompanied by the Minister of University and Research, Anna Maria Bernini, and a large delegation of businesses, leading universities and research institutions. During the visit, External Affairs Minister Dr. S. Jaishankar held delegation level talks with DPM and FM Tajani. Minister Tajani also met with the Commerce and Industry Minister (CIM). He called on President of India. Minister Bernini with Ministers of State of Science and Technology, and Education. In the delegation level talks, EAM and FM…

New Delhi | Mumbai: Assessing officials continue to raise fresh tax demands on companies coming out of corporate insolvency, defying the ‘clean slate’ provision provided under the Insolvency and Bankruptcy Code (IBC) and multiple court rulings, throwing successful resolution applicants into legal limbo. Several such companies have faced tax demands over pre-acquisition liabilities, and have moved courts, legal experts and industry insiders told ET. Recent examples include Tata Steel, which was slapped with an income addition of ‘25,185 crore in respect of a debt waiver pertaining to Bhushan Steel before the Tatas acquired the company under IBC in 2018. Tata…

External Affairs Minister S Jaishankar on Friday flagged concerns over growing unpredictability in global political and economic order, especially the weaponisation of economic activities and over-concentration of manufacturing. He said India has been working closely with like-minded partners to build resilient and trusted partnerships which are needed to address the country’s economic interests as well as its strategic priorities. The external affairs minister made the remarks at the India-Italy Business, Science and Technology Forum. It was also attended by Italian Deputy Prime Minister Antonio Tajani. “We meet today in a familiar global political and economic order, but one that is…

India has offered to allow unlimited imports of electric vehicles priced more than GBP 80,000 (about ₹89 lakh) from the UK in lieu of a larger export quota of smaller EVs priced less than GBP 40,000 (₹44 lakh) to the country in a bid to iron out differences holding up finalisation of a free trade agreement (FTA). The proposal, if agreed upon by both countries, will benefit Indian automakers like Maruti Suzuki and Mahindra & Mahindra, which have firmed up plans to scale up EV exports to Europe to leverage economies of scale while the segment matures locally. Tata Motors’…

UK Chancellor Rachel Reeves and Finance Minister Nirmala Sitharaman announced USD 400 million in new trade and investment deals at the 13th UK-India Economic and Financial Dialogue in London on Thursday. In a post on X, the British High Commission in India wrote, “The UK and India are growing together. Chancellor @RachelReevesMP and Minister @nsitharaman have announced £400m of trade and investment wins at the 13th UK-India Economic and Financial Dialogue in London.” — ukinindia (@ukinindia) On Wednesday, Sitharaman had a bilateral meeting with Lord Mayor of London Alastair King, in London. Lord Mayor alluded to his deep association with…

The United Kingdom and India have made substantial progress in their ongoing free trade agreement, with 90% of the deal already agreed, according to British officials in a private briefing with businesses this week, as told to The Guardian. That detail was confirmed during a call between UK Department for Business and Trade negotiators and business leaders on Tuesday, who were informed that key chapters of the agreement had been settled. But not everything is signed off yet. Sticking points remain—especially around tariff rules for whisky, automobiles, and pharmaceutical products. Mobility breakthrough unlocks progress A major hurdle, involving mobility and…

The central bank Wednesday expanded the scope of co-lending pacts beyond priority-sector loans (PSL), allowing more regulated entities to structure deals that would route formal financing to smaller non-PSL businesses crucial for boosting both growth and jobs locally. “Co-lending arrangements have actually helped in the priority sector lending (PSL),” Governor Sanjay Malhotra said at the post-review media interaction. “We are now expanding it to other segments outside priority sector lending as well. Right now, only banks and NBFCs could enter into this arrangement. (Henceforth), two banks can also enter into this arrangement.” Banks must give 40% of the total loans…

New Delhi: India is open to allowing zero duty import of goods from the US in several sectors, including those covered under the production-linked incentive (PLI) schemes, people familiar with the development said. Officials said a generous offer by India can expedite the proposed bilateral trade agreement (BTA), helping roll back the 26% reciprocal tariff levied on India effective April 9. However, officials said this concession would be subject to stringent rules of origin mandating at least 30-40% value addition along with a change in tariff heading as part of these conditions. “Inter-ministerial consultations are on what can be offered…

In a bold and unexpected move, US President Donald Trump shook the global economy on 2 April 2025 by unveiling sweeping tariffs designed to reshape America’s trade relationships. The new policy enforces a baseline 10% tariff on nearly all imports, with even steeper rates reserved for nations deemed to engage in unfair trade practices, signalling a dramatic shift in global commerce. Details of the tariff planUnder the new framework, the European Union faces a 20% tariff on exports to the United States, Japan 24%, India 26%, and China a steep 34% duty. President Trump branded these measures as a “Declaration…

India is setting up an import monitoring group for certain products including consumer goods to check diversion from countries which face US reciprocal tariffs that are higher than on India, such as China and Vietnam. “There are some products where circumvention is easy,” a government official said, adding that the group will have officials from several ministries. The US has imposed a 26% reciprocal tariff on India, compared with 35% on China, 37% on Bangladesh, 29% on Pakistan, 46% on Vietnam and 36% on Thailand, among other countries. These Asian countries are India’s competitors in sectors such as textiles, consumer…

Lenders have added about 25,000 beneficiaries under the Tarun Plus category of PM Mudra Yojana (PMMY) in a 4-month short period of FY25 where borrowers were given enhanced loans up to Rs 20 lakh. The scheme was announced by Finance Minister Nirmala Sitharaman in her last July Budget. As per the Budget 2024-25 announcement, loan limit was doubled to Rs 20 lakh for those entrepreneurs who have availed and successfully repaid previous loans under the ‘Tarun’ category. Following the Budget announcement, the Tarun Plus scheme was notified on October 25, 2024. As many as 24,557 new borrowers took loan under…

By kicking off the tariff war, the US has inadvertently ceded half of its dairy export market to India, according to Jayen Mehta, managing director of Gujarat Co-operative Milk Marketing Federation (GCMMF), owner of leading dairy brand Amul. Nearly 50% of the US dairy exports are to places in India’s vicinity, including West Asia, North Africa, China, Southeast Asia, Sub Saharan Africa, Japan, and South Korea, he said. Some of these countries are expected to hike import duties on US products in response to President Donald Trump’s high tariffs on most countries. “We believe that many of these nations would…

Developed countries are indicating that they are ready to proceed with negotiations for proposed free trade agreements (FTAs) without insisting much on the inclusion of non-trade issues like sustainability and climate obligations, according to sources. They said gradually those countries are suggesting that “let’s start business first, we will look into the rest of the extraneous issues later”. In a free trade agreement negotiations, trading partners should keep all the options open so that things can move smoothly. Major countries that used to pressure on issues like sustainability and climate have now gone quiet, one of the sources said. India…

US President Donald Trump’s ‘Liberation Day’ tariffs are pushing Chinese electronics companies such as Haier, Lenovo and Hisense to actively pursue business transformation strategies. These brands are currently exploring the possibility of exporting products to the US from Indian factories to benefit from the relatively lower tariffs, compared to their production hubs in China and Vietnam. They are also hoping the Indian government will ease stringent rules on manufacturing investments, amid recent efforts to reset diplomatic ties between New Delhi and Beijing. Currently, Press Note 3 mandates government approval for any foreign direct investment (FDI) from an entity in a…

In a significant step towards strengthening rural connectivity and boosting economic growth, the Ministry of Rural Development has sanctioned several road and bridge projects for Tripura and Odisha under the Connectivity component of the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN), the Ministry said in a release on Saturday. According to the release, for Tripura, 25 roads totalling 84.352 km have been sanctioned, with an investment of Rs 76.47 crore. This follows an earlier approval of 42 roads spanning 118.756 km, amounting to Rs. 114.32 crore. Odisha has received approval for 26 roads covering 63.271 km, along with two…

The Ministry of External Affairs on Friday said India is hopeful that Free Trade Agreement (FTA) with the European Union will be finalised soon. During the recent visit of College of Commissioners, led by European Commission President Ursula von der Leyen, she and Prime Minister Narendra Modi had decided to direct their teams to finalise the FTA within this year, said Secretary West, Ministry of External Affairs (MEA), Tanmaya Lal. “So, that has been a very clear direction. And the negotiations are ongoing. Both the teams are taking forward the process in a very strong manner and we are very…

Ranchi: The National Bank for Agriculture and Rural Development (NABARD) on Friday said it has extended record assistance of Rs 5,830 crore to Jharkhand in the just concluded fiscal to boost rural infrastructure. This support has significantly catalysed rural infrastructure development, livelihood promotion, institutional strengthening, and financial inclusion in the state, the country’s apex rural development financial institution said in a statement. “NABARD has extended record developmental assistance of Rs 5,830 crores to the state of Jharkhand during the financial year 2024-25… The state has witnessed a 20 times increase in long-term refinance, with total disbursements touching Rs 2,701 crore…

US President Donald Trump unleashed a barrage of tariffs going up to 99% against the country’s trading partners, making good on his long-standing threats and potentially dragging the world into a trade war as he sought to address a $1.2 trillion goods trade deficit and revive local manufacturing. India faces a 27% reciprocal levy from April 9, lower than its regional competitors such as China (34%, in addition to 20% imposed in two earlier rounds), Vietnam (46%) and Indonesia (32%). “This is Liberation Day, a long-awaited moment,” Trump said, using the White House Rose Garden as the stage for the…

US imposed 26 per cent tariffs on Indian can possibly impact the Indian Medical Devices sector, said the Rajiv Nath, Forum Cordinator of AiMeD, however he pressed on the need to explore windows of opportunities where US has been seeking to diversify its supply chain dependence to reduce the impact. Show more Show less

After weeks of anticipation, President Donald Trump unveiled a new set of tariffs on both allies and adversaries, aiming to address what he describes as unfair trade practices. The tariffs, which are set to impact countries that impose high duties on U.S. exports, will see India facing a 26% tariff on its goods entering the US, along with significant penalties for other nations. China, which has long been a target of US trade actions, will face a hefty 34% tariff, while the European Union will see a 20% levy. Vietnam, another key player in the global trade landscape, will bear…

The National Payments Corporation of India (NPCI) is leveraging Artificial Intelligence in a “big way” to enhance customer security in digital transactions, amid a surge in UPI usage. NPCI is conducting a pilot study in collaboration with public and private sector banks to integrate Artificial Intelligence (AI) and Machine Learning for strengthening customer safety, NPCI Chief Risk Officer Viswanath Krishnamurthy said. Established in 2008 by the Reserve Bank of India and Indian Banks Association, NPCI oversees retail payment systems in the country. Providing some statistics, Krishnamurthy noted that in March alone Unified Payments Interface (UPI) transactions reached 18.30 billion, marking…

Goods and services tax (GST) collection rose nearly 10% to ₹1.96 lakh crore in March from the year earlier, the second-highest monthly collection ever, riding a recovery in domestic demand and better compliance. Gross collection for the full fiscal year was ₹22.1 lakh crore, 9.4% higher than ₹20.2 lakh crore in FY24, according to official data released on Tuesday. “A nearly 10% growth in collections compared to last year reflects economic stability and strong tax compliance by companies,” said Abhishek Jain, partner and head, indirect tax, KPMG in India. The average monthly collection in FY25 was ₹1.84 lakh crore against…

The commerce ministry is working on different scenarios to assess the possible fallout of reciprocal tariffs to be imposed by the US administration on April 2 on its key trading partners including India, sources said. US President Donald Trump has said that April 2 will be ‘Liberation Day’ as he plans to announce tariffs or import duties to bring down America’s trade deficit, and promote the country’s manufacturing. India and the US are also working on a bilateral trade agreement to promote two-way commerce and investments. The domestic industry and exporters have raised concerns over the possible impact of the…

Over 47,000 applications were filed by small businesses to recover dues worth ₹8,024.9 crore in FY25, according to the data from MSME Samadhaan Portal, a government-run platform for monitoring delayed payments. The number of applications surged 94.1% to 47,587 in FY25 compared to 24,519 in FY20. In contrast, total dues increased by 25.7% in the same period. Although FY25 saw the highest number of applications filed, the total dues claimed were the second highest after FY21. Data for FY25 is as of 6 pm on March 31. These applications were submitted by micro, small and medium enterprises (MSMEs) against various…

Indian industry and government officials are uncertain whether US President Donald Trump will proceed with his threat to impose reciprocal tariffs on its key trading partners, including India, on April 2. According to a senior government official, the domestic industry is “paranoid” and has been sending communications to the government, seeking protection against the impacts of these tariffs. Stakeholders are hopeful that America may defer its decision to impose reciprocal tariffs from April 2, as India is one of the few countries with which the US has decided to negotiate a trade agreement. Here is a list of Q &…

Companies procuring steel at concessional rates under a special mechanism being finalised by steelmakers to support the micro, medium and small enterprise (MSME) sector will need to ensure that the finished products are solely for exports, people privy to the matter said. The new mechanism, which would be operationalised after planned imposition of a safeguard duty on specified steel imports, would be extended to MSMEs and members of the Engineering Exports Promotion Council (EEPC), the people said. “Discussions are on on the mechanism…It would be implemented once safeguard duty is imposed…This is being done to shield domestic consumers from rise…

The country’s merchandise exports, which have been contracting since October last year, are expected to decline slightly by the end of this fiscal year and fall below USD 435 billion, think tank GTRI said on Sunday. Exports dipped 10.85 per cent in February to USD 36.91 billion due to volatility in petroleum prices and global uncertainties. “At this rate, India’s total merchandise exports for FY’2025 are expected to be below USD 435 billion, slightly lower than USD 437.1 billion in FY’2024,” Global Trade Research Initiative (GTRI) Founder Ajay Srivastava said. During April-February 2024-25, the exports stood at USD 395.63 billion…

New Delhi: Finance secretary Ajay Seth Saturday said global uncertainties may not subside over the medium term and India has to do things differently in a more “purpose-oriented” manner to realise its goal of emerging as a developed nation by 2047. In this “era of uncertainties” and amid a “very tough global environment”, India has to grow at a fast pace for over 20 years while ensuring inclusive development, he added. Seth was speaking at an event of the Skoch Development Foundation in the capital. “It’s not just about growth, but it’s about inclusive growth. But we have to be…

India and the US have decided to hold sectoral talks under the proposed bilateral trade agreement (BTA) in the coming weeks, the commerce ministry said on Saturday. It was decided after the four-day negotiations of senior officers from India and the US. These negotiations ended on Saturday here. “Sectoral expert-level engagements under the BTA will start virtually in the coming weeks and pave the path for an early negotiating round in person,” the ministry said. In order to realise the shared objective of promoting growth that ensures fairness, national security and job creation, both sides have through four days of…

The National Company Law Appellate Tribunal (NCLAT) on Friday slashed to about ₹217 crore the Competition Commission of India’s ₹936-crore penalty imposed on Google parent Alphabet Inc. The appellate tribunal partly allowed the US tech major’s appeal against the October 2022 order, ruling that it had indeed misused its dominant position in the Android mobile app market, but not agreeing with all directions issued by CCI. CCI found discrimination in the tech giant’s policy of charging third-party apps a 15-30% service fee via Google Play Billing System (GPBS) on Play Store transactions, while its own app YouTube used another payment…

The Union Cabinet on Friday approved a Rs 37,216 crore subsidy on phosphatic and potassic (P&K) fertilisers for the Kharif (summer-sown) season this year as part of its efforts to provide soil nutrients at a reasonable rate. The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a proposal for fixing the Nutrient Based Subsidy (NBS) rates for Kharif season 2025 (from April 1, 2025, to September 30, 2025,) on Phosphatic and Potassic (P&K) fertilisers. The budgetary requirement for Kharif season 2024 will be Rs 37,216.15 crore, Information and Broadcasting Minister Ashwini Vaishnaw told reporters here. The minister said the…

NEW DELHI: India is likely to undertake another round of import duty cuts ahead of April 2, people familiar with the matter said. US President Donald Trump’s threatened reciprocal tariffs announcement is expected that day against trading partners who, he says, have been “ripping off” his country by imposing high levies. The government is now drawing up a list of products that are very specific to the US as this round of cuts, outside of the proposed trade agreement, will be on most favoured nation (MFN) basis, implying the reduced duty would apply to all MFN imports of those products.…

The Reserve Bank of India will cut interest rates at a second straight meeting on April 9, with just one more cut expected in August, which would mark the shortest easing cycle on record, a Reuters poll of economists found. With inflation in India easing to a seven-month low of 3.61% in February and the economy forecast to grow at 6.4% this fiscal year, the weakest in four years, the central bank has room to cut rates further. A strong majority of economists, 54 of 60 in the March 18-27 Reuters poll, expected the RBI to cut its benchmark repo…

New Delhi: States’ debt is projected to reach ₹94.4 lakh crore by March 2025, accounting for 32.7% of gross state domestic product (GSDP), according to a CareEdge Ratings report released Wednesday. The debt is expected to rise further to ₹103.6 lakh crore by FY26 due to capital expenditure and a growing revenue deficit, the report noted. In 2019, the debt-GSDP ratio was 29.3%. The analysis covered 15 states that accounted for 87% of India’s GSDP in FY24, including Bihar, Gujarat, Kerala, Maharashtra and UP. Revenue deficit is forecast to hit 0.6% of GSDP in FY25 and 0.63% in FY26. Fiscal…

The National Highways Authority of India has raised Rs 18,380 crore through InvIT, the largest monetization transaction ever in the roads sector. With this fourth round of monetisation, the total funds raised via InvIT stands at over Rs 46,000 crore since 2020. While Rs 8,340 crore were raised in unit capital from domestic and international investors, Rs 10,040 crore was raised in debt from domestic lenders, the ministry of road transport and highways said in a statement issued on Wednesday. The National Highways Infra Trust (NHIT), the Infrastructure Investment Trust (InvIT), was set up by NHAI in 2020 to support…

Mumbai: States have increased their borrowings in the last month of the financial year, as raising funds is comparatively cheaper with low yields, due to the absence of central government security auctions in March, treasury experts said. Cut-off on 10-year SDL paper “The absence of G-Sec supply has facilitated strong absorption of SDL issuances by institutional investors. They are also positioning ahead of the April policy, anticipating rate cuts in April and/or June to drive mark-to-market gains in the next fiscal year,” said Venkatakrishnan Srinivasan, founder of Rockfort Fincap, a debt advisory firm. As many as 21 states jointly raised…