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The Indian government is formulating an action plan to address the repercussions of a 50% tariff increase imposed by the US on Indian exports, according to Economic Affairs Secretary Anuradha Thakur. She acknowledged that certain employment-intensive sectors may be adversely affected and emphasized the government's commitment to assessing the impact and exploring solutions. To bolster domestic demand and support manufacturing, the government has introduced measures such as zero income tax for earnings up to ₹12 lakh and GST reforms aimed at reducing commodity prices. Thakur expressed confidence in meeting the fiscal deficit target of 4.4% of GDP for 2025-26, despite a rise to 29.9% of the full-year target by July. India's economy grew by 7.8% in the April-June quarter, driven by strong agricultural performance and robust domestic demand, reinforcing its status as the fastest-growing major economy, outpacing China's 5.2% growth. 
Published: Aug 31 2025, 11 ameznews.inAt the Shanghai Cooperation Organisation (SCO) summit in Tianjin, Prime Minister Narendra Modi delivered a resolute address emphasizing India's resilience amid global challenges, including US tariffs. Modi highlighted India's commitment to transforming obstacles into opportunities, framing the nation's approach around three pillars: security, connectivity, and opportunity. He urged fellow SCO members, including China and Russia, to join India in its developmental journey, while subtly critiquing China's Belt and Road Initiative for bypassing sovereignty. Modi asserted that genuine connectivity must respect territorial integrity, reinforcing India's initiatives like the Chabahar Port to enhance ties with Afghanistan and Central Asia. On the summit's sidelines, Modi and Chinese President Xi Jinping discussed strengthening bilateral relations based on mutual trust, while Modi also met with Russian President Vladimir Putin, underscoring the importance of cooperation in the face of external pressures.
Published: Sep 01 2025, 1 pmeznews.inEuropean buyers have increasingly turned to Indian basmati rice over Pakistani varieties this year, primarily due to a significant price difference, with Pakistani basmati costing $250 more per tonne, according to Graham Carter, Managing Director of Ebro India Pvt Ltd. Ebro, a subsidiary of Spanish multinational Ebro Foods SA, noted that this shift contrasts with two years ago when Indian basmati was the pricier option. The company, which markets basmati under the Tilda brand, has seen strong demand for Indian rice, particularly as buyers seek cost-effective options. Despite a slight increase in Pakistan's basmati exports, the market remains complex, with varying preferences among buyers. Ebro India sources its basmati from around 12,000 farmers and is also expanding its domestic market presence with new pasta products. However, recent US tariffs pose challenges for Indian basmati exports, limiting Ebro's market share in that region.
Published: Sep 01 2025, 1 pmeznews.inThe Automotive Tyre Manufacturers Association (ATMA) has urged the Indian government to reduce the Goods and Services Tax (GST) on automotive tyres from the current 28% to 5%, arguing that tyres are essential for various sectors, including transportation, agriculture, mining, and construction. ATMA Chairman Arun Mammen emphasized that tyres should not be classified alongside luxury goods, as they significantly impact operating costs for small traders and farmers. The association highlighted that a lower GST rate would alleviate financial burdens and enhance logistics efficiency, benefiting multiple industries. Additionally, ATMA raised concerns about the potential accumulation of unutilised Input Tax Credit (ITC) for tyre dealers following any rate changes, recommending a prompt announcement of revised rates and a one-time refund for unutilised ITC. This appeal comes ahead of the GST Council meeting scheduled for September 3-4, where proposed reforms will be discussed.
Published: Sep 01 2025, 1 pmeznews.inIndia's manufacturing sector experienced its most significant growth in over 17 years, with the Purchasing Managers' Index (PMI) rising to 59.3 in August, driven by strong domestic demand and production acceleration. The economy expanded by 7.8% in the April-June quarter, surpassing expectations. However, the Trump administration's recent imposition of a 50% tariff on U.S. imports of Indian goods, including garments and jewellery, poses a potential threat to future growth. While overall order growth remained robust, new export orders saw a slowdown, attributed to American buyers' hesitance amid tariff uncertainties. Despite these challenges, firms continued to hire, although at a reduced pace, and inflationary pressures increased with rising input and output prices. Business confidence improved, reflecting resilience in the face of external challenges, as manufacturers sought to rebuild inventory levels and adapt to changing market conditions.
Published: Sep 01 2025, 10 ameznews.inIndia Post has announced a complete suspension of all mail operations to the United States, effective immediately, due to uncertainty surrounding new customs regulations imposed by the US government. This decision follows an executive order issued on July 30, 2025, which mandates customs duties on goods valued over $100, starting August 29. Initially, the postal service had only suspended shipments of gifts exceeding this value, but ongoing confusion regarding the rules has led to a broader halt, affecting letters, documents, and items valued under $100. The Department of Posts is monitoring the situation closely and is working to restore services as soon as possible. Customers with items already booked that cannot be dispatched are eligible for refunds. The suspension stems from US air carriers' inability to accept shipments due to a lack of clarity on operational guidelines from US Customs and Border Protection.
Published: Sep 01 2025, 9 ameznews.inJefferies has projected a recovery in demand for the auto industry, primarily driven by anticipated Goods and Services Tax (GST) cuts, improved liquidity, and recent tax relief measures. The report indicates an upward revision in the outlook for two-wheeler (2W) and small passenger vehicle (PV) segments, with expected volume growth rates of 10% CAGR for 2Ws and 8% for PVs from FY25 to FY28. Despite subdued registrations in recent months, the report anticipates a rebound in demand, particularly for 2Ws and small Pvs, which are currently taxed at 28-31%. The potential GST reductions could lower prices by 6-8%, enhancing consumer affordability. While tractor sales have shown resilience with a 7% year-on-year growth, truck demand remains closely linked to freight activity rather than pricing. Overall, the auto sector is poised for a significant uplift as these fiscal measures take effect.
Published: Sep 01 2025, 8 ameznews.inDP World’s Cochin Free Trade Warehousing Zone (FTWZ) is rapidly establishing itself as a pivotal global hub for India’s spice trade, bolstered by significant infrastructure investments, digital logistics advancements, and supportive government initiatives. Ranjit Ray, Senior Vice President at DP World, highlighted the FTWZ's role in enhancing export efficiency for spice exporters, particularly through temperature-controlled warehousing for sensitive commodities like cardamom. Despite global challenges such as US tariff changes, the FTWZ offers a strategic buffer, ensuring supply chain agility. With over 67 value-added services, including quality inspections and pest control, the FTWZ enhances product integrity and compliance with international standards. The integration of digital platforms, such as the Unified Logistics Interface Platform, is transforming operations for micro, small, and medium enterprises (MSMEs), enabling them to compete globally. In FY 2024-25, India exported nearly 18 lakh tonnes of spices worth over $4.7 billion, with Kerala's premium produce driving this growth.
Published: Sep 01 2025, 9 ameznews.inDTDC Express Ltd is poised to significantly expand its e-commerce segment, anticipating it will constitute around 50% of its overall business in the coming years. The company recently launched its rapid commerce vertical, Raftaar, which promises deliveries within 4-6 hours, and plans to establish 125 dark stores over the next three quarters to meet growing consumer demand for faster service. CEO Abhishek Chakraborty highlighted the shift towards rapid commerce as a key growth area, with India's e-commerce market projected to exceed $80 billion, driven by digital adoption and rising consumer expectations for same-day delivery. Currently, e-commerce accounts for 16% of DTDC's business, with plans to increase this to 23-24% in the next few years. The company is investing ₹100 crore this fiscal year, focusing heavily on technology and innovation, including AI and machine learning, to enhance its service offerings and operational efficiency.
Published: Aug 31 2025, 9 pmeznews.inEighty per cent of Alliance Air's fleet has been grounded since last week due to difficulties in sourcing spare parts and servicing engines, leading to significant service disruptions. The government-owned airline operates 21 aircraft, primarily ATR models, but only four have been in operation since August 24. Supply chain issues, compounded by delayed payments to original equipment manufacturers and maintenance providers, have exacerbated the situation. The airline reported losses of ₹1,633 crore from FY 22 to FY 24, with an additional ₹535.45 crore loss in the first ten months of FY 25. Despite these challenges, an Alliance Air executive stated that discussions with ATR are ongoing to improve fleet operations by September, and the government is providing financial support. However, the airline's dwindling fleet, which is crucial for regional connectivity under the Udan scheme, raises concerns about future revenue and operational sustainability.
Published: Aug 31 2025, 8 pmeznews.inThe Indian Beverage Association (IBA) has called on the GST Council to reclassify aerated beverages as "food/merit" goods, proposing a reduction in the Goods and Services Tax (GST) from the current 40% to 18%. This reclassification would align aerated drinks with less heavily taxed items, as they are currently categorized alongside tobacco products, despite lacking similar public health concerns. The IBA argues that lowering the tax rate would enhance affordability, stimulate demand, and foster growth in the consumption economy, benefiting both consumers and retailers. The non-alcoholic beverage sector has already invested ₹50,000 crore and plans an additional ₹85,000 crore, reinforcing its commitment to the 'Make in India' initiative. The industry supports approximately 700,000 jobs, particularly in rural areas, and a rationalized tax structure could lead to further job creation and economic benefits.
Published: Aug 31 2025, 8 pm
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