July 31, 2025
US Imposes 25% Tariff on Indian Imports Over Russian Oil Purchases, Citing Section 301 Concerns
The United States has imposed a 25 percent tariff on all goods imported from India, along with an additional penalty targeting India's purchases of Russian crude oil and military equipment. This action reflects US frustration with India's continued acquisition of Russian energy resources, which the US asserts helps sustain Russia's military efforts in Ukraine despite global sanctions. While acknowledging India's significant energy needs, US officials emphasize that alternative suppliers are available and view India's reliance on Russian oil as a key irritant in bilateral relations. India has responded by affirming its commitment to protecting national interests and is currently assessing the impact of these tariffs. The measures appear to be part of a broader US strategy to leverage trade policy to influence India's foreign and energy procurement decisions.
July 31, 2025
US imposes 25% tariff on Indian imports under trade rules amid Russian oil dispute
The United States imposed a 25 percent tariff on all goods imported from India effective August 1, alongside unspecified penalties related to India's purchase of Russian crude oil and military equipment. The US trade team expressed frustration with India's slow progress in trade negotiations and criticized India for continuing to buy and refine sanctioned Russian oil. The tariff move is viewed as a strategic effort by the US to pressure India into agreeing to US trade demands, following recent favorable trade agreements with other major partners. India has responded by stating it will take necessary measures to protect its national interests and is currently assessing the impact of the tariffs.
July 31, 2025
US Imposes 25% Tariff on Indian Imports Over Russia Ties, Sparking Political Debate on Economy
The US President announced a 25 percent tariff on imports from India, coupled with an unspecified penalty for India's continued purchase of Russian military equipment and crude oil, citing concerns over India's trade policies and ties with Russia. This move prompted strong political reactions in India, with opposition leaders echoing the US criticism by labeling India's economy as "dead," while government officials defended India as one of the fastest-growing major economies, emphasizing ongoing reforms, export growth, and efforts to protect national interests. The Indian government is reviewing the tariff's impact and reaffirmed its commitment to safeguarding farmers, MSMEs, and industries. The tariff is viewed as a pressure tactic to influence India's trade stance amid broader US trade negotiations. The dispute has sparked significant domestic political debate regarding India's economic health and trade relations with the US.
July 31, 2025
Minister Pledges Support for Farmers on Land Classification and Ownership Issues Following Supreme Court Guidelines
The state minister met with representatives of farmer and horticulture organizations to discuss challenges related to land classification and ownership. The representatives emphasized that village lands recorded under individual names should not be classified as forest land and cited Supreme Court directives requiring proper demarcation before eviction. They requested the government to actively defend ongoing court cases on behalf of farmers and orchardists. The minister assured full government support, commitment to protecting their interests, and indicated that further detailed discussions would be held with senior officials to address these issues comprehensively.
July 31, 2025
Satellite Internet Provider Gets Unified License with Spectrum Rules for Service Launch
A satellite internet service provider has been granted a Unified License to operate in India, with a regulatory framework for spectrum allocation and gateway establishment finalized to facilitate service rollout. Other satellite communication companies are also awaiting spectrum allocation to begin operations. The government highlighted significant growth in digital infrastructure, including increased telephone and internet subscriptions, widespread 5G coverage, and the revival of a state-owned telecom company reporting consecutive profits. Investments under a production-linked incentive scheme have generated substantial sales and employment, while foreign direct investment in the telecom sector has nearly tripled. The country has rapidly expanded its telecom capabilities from 2G to 5G and is actively developing 6G technology, aiming to become a global leader in telecom innovation and manufacturing.
July 31, 2025
Airline Crew Arrested for Forging Indian IDs and Attempting Passport Fraud Under Section 420
A Bangladeshi national working as an airline crew member was arrested in India for obtaining multiple Indian identification documents, including Aadhaar, voter ID, ration cards, and attempting to apply for an Indian passport using forged documents. She initially entered India with a valid passport, rented accommodations in Kolkata, and used these addresses to acquire fake documents with the assistance of unidentified agents. Police seized several Indian and Bangladeshi documents during a raid and are investigating potential collaborators, including possible involvement of police personnel. The woman allegedly used social media posts to portray herself as a patriotic Indian, which authorities view as a tactic to support her false identity. The investigation is ongoing to determine the full extent of the forgery and any accomplices involved.
July 31, 2025
Chief Minister urges restoration of J&K statehood, full local control under Article 370, and boosts tourism post-terror attack
The Chief Minister of Jammu and Kashmir urged the central government to restore the region's statehood and transfer full administrative responsibilities to the local government, asserting their competence based on prior governance that reduced militancy and improved security. He emphasized the local government's capability to manage security and promote tourism, particularly after the Pahalgam terror attack that severely impacted the tourism industry. The Chief Minister highlighted ongoing efforts to revive tourism and invited visitors to Jammu and Kashmir, assuring safety measures were in place. He also criticized the central government's handling of international trade issues, specifically the imposition of tariffs by the US, stating a lack of consultation and clear policy direction. During a visit to Gujarat, the Chief Minister engaged in discussions to enhance inter-state relations and tourism cooperation.
July 31, 2025
Indian Rupee Recovers After Sharp Fall Amid US Tariffs and RBI Market Intervention Efforts
The Indian rupee recovered 15 paise to close at 87.65 against the US dollar following its steepest single-day fall in over three years, amid lower crude prices and suspected intervention by the Reserve Bank of India (RBI). The depreciation was triggered by the US government's announcement of a 25 percent tariff on Indian imports and penalties related to Russian crude purchases, which heightened market concerns and risk-off sentiment. The RBI's weekly liquidity withdrawal measures and suspected market intervention aimed to stabilize the currency and short-term interest rates. Ongoing bilateral trade negotiations between the two countries continue, with a US delegation scheduled to visit India for further talks. The broader economic environment remains uncertain, with pressure on the rupee expected to persist until clarity on tariffs is achieved.
July 31, 2025
Election Commission Begins Draft Electoral Rolls Publication After Special Intensive Revision
The Election Commission will publish draft electoral rolls following a special intensive revision (SIR) in Bihar, initiating a claims and objections period until September 1. This process allows voters to address wrongful deletions, additions, or corrections. The SIR aimed to update the voter list, removing deceased, migrated, or duplicate entries, but faced criticism and legal challenges alleging potential mass exclusion to favor the ruling coalition. The Supreme Court emphasized that the revision must ensure inclusion, not exclusion, and mandated acceptance of Aadhaar as identity proof. The Election Commission assured voters that grievances could be raised during the objection period, while opposition parties expressed concerns over possible manipulation during this phase by election officials aligned with the ruling party.
July 31, 2025
Government sets 90-day negotiation period with tariffs on autos, copper, aluminum, and steel unchanged under trade rules
A government announced a 90-day negotiation period with a neighboring country following discussions between their leaders, during which existing tariffs will remain in effect. Imports from the neighboring country will continue to face a 25% tariff, linked to concerns over illicit trafficking. Specific sectors such as automobiles will be subject to a 25% tariff, while copper, aluminum, and steel imports will incur a 50% tariff. The announcement emphasizes ongoing trade tensions and the use of tariffs as leverage in bilateral negotiations.
July 31, 2025
US to impose 15% tariff on most EU exports despite pending detailed agreement and ongoing exemption talks
The European Union anticipates the United States will impose a 15 percent tariff on most EU exports starting Friday, despite the absence of a finalized joint statement detailing the agreement's terms. The political agreement reached covers tariffs on approximately two-thirds of EU goods, valued at around 380 billion euros, with exemptions for strategic items such as aircraft, certain chemicals, and some pharmaceuticals. The EU expects the US to honor both the tariff ceiling and agreed exemptions. While European wine and spirits will initially face the 15 percent tariff, further negotiations on exemptions are ongoing. Prior to the agreement, the US had threatened 30 percent tariffs, which the EU warned would severely disrupt trade. The EU prepared retaliatory tariffs set for August 7 but plans to suspend these if the deal proceeds as intended.
July 31, 2025
Political Leader Accuses Government of Undermining Economy and Sovereignty Amid Trade Dispute
A political leader publicly criticized the national economy as "dead," aligning with a foreign leader's disparaging remarks, and accused the ruling government of undermining economic, defense, and foreign policies to benefit a prominent business figure. The ruling party condemned these statements as insulting and politically motivated, defending the country's economic progress and questioning the opposition's loyalty. The opposition leader also alleged that ongoing trade negotiations with the foreign country would be dictated by that country's leader, asserting the government prioritizes foreign interests over national welfare. The dispute includes accusations that recent tariffs imposed by the foreign country will harm domestic industries and farmers. Both parties exchanged sharp criticisms regarding economic management, trade policies, and national sovereignty, reflecting heightened political tensions amid international trade conflicts.
July 31, 2025
State Government Distributes Laptops to 136 Disadvantaged Students and Launches Free Health Program
The state government distributed laptops to 136 students from disadvantaged communities admitted to higher education institutions, emphasizing support for educational advancement. The Chief Minister, recently discharged from hospital, highlighted the students' perseverance. Additionally, the government is launching a comprehensive health program providing free medical check-ups and diagnostic services through numerous camps statewide, aiming to improve public health access and reduce hospital visits. The program includes a wide range of medical specialties and traditional Indian medicine. The Chief Minister also inaugurated several government office buildings related to tax and registration departments, constructed with significant public funds, enhancing administrative infrastructure.
July 31, 2025
Political Party Blames 25% US Tariffs and Penalties on Poor Foreign Policy, Calls for Better Diplomacy
A political party criticized the central government for the imposition of a 25 percent tariff and penalties by the United States on Indian goods, attributing the economic impact to a foreign policy focused on publicity rather than substantive diplomacy. The party highlighted that India faces harsher tariffs than other countries and noted the depreciation of the national currency as evidence of economic vulnerability. The government responded by stating it is reviewing the situation, consulting stakeholders, and engaging with relevant parties to determine appropriate measures to protect national interests. The tariffs followed a US announcement targeting Indian imports and penalties related to India's procurement of Russian crude oil and military equipment. The party condemned recent diplomatic events as superficial and argued that the current foreign policy approach has harmed the country's exports, economy, and international reputation.
July 31, 2025
India's rapid economic growth driven by reforms, trade deals, and a skilled workforce boosts global competitiveness
India is recognized as the fastest-growing major economy globally, contributing nearly 16% of global growth and expected to become the third largest economy soon. Over the past decade, it has advanced from the 11th to one of the top five economies, driven by reforms and efforts from farmers, MSMEs, and entrepreneurs. Despite criticism from a foreign leader regarding trade relations and tariffs, the government highlights transformative measures promoting India as a global manufacturing hub. The country's young, skilled workforce enhances innovation and industrial competitiveness. Exports have steadily increased, supported by mutually beneficial trade agreements with several countries, including the UAE, UK, Australia, and EFTA, with commitments to pursue further agreements.
July 31, 2025
IT Company Summoned Over 12,000 Layoffs for Violations of Industrial Disputes Act Notification Rules
The Karnataka Labour Department has summoned a major IT company to explain the rationale behind mass layoffs involving over 12,000 employees, following a complaint filed by a state IT employees' union alleging violations of the Industrial Disputes Act and government reporting conditions. The company cited workforce realignment and strategic focus on technology and AI as reasons for the retrenchment. The Labour Minister emphasized that while certain industries are exempt from labour laws, they must still notify the government prior to layoffs. Additionally, the government rejected industry requests to increase daily working hours to nine or ten, stating such changes must be voluntary and considering local commuting challenges. The minister clarified that extended working hours could only be permitted with employee consent and are not feasible as a permanent measure due to traffic conditions.
July 31, 2025
Government's Q1 Fiscal Deficit Hits 17.9% of Target; Capital Spending Up 52% Boosting Growth
The government's fiscal deficit reached 17.9 percent of the full-year target by the end of June, with a shortfall of Rs 2,80,732 crore in the first quarter of the 2025-26 fiscal year. Total receipts amounted to Rs 9.41 lakh crore, including net tax revenue, non-tax revenue, and non-debt capital receipts. Transfers to state governments increased by Rs 47,439 crore compared to the previous year. Total expenditure was Rs 12.22 lakh crore, with significant portions allocated to revenue and capital accounts, including interest payments and subsidies. Despite subdued direct tax collections in June, capital expenditure grew 52 percent year-on-year, supporting investment demand and potentially benefiting GDP growth for the quarter.
TaxTMI 
https://www.taxtmi.com/ne...
TaxTMI 
