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India's commitment to fiscal discipline remains steadfast, according to Anuradha Thakur, Secretary of the Department of Economic Affairs in the Ministry of Finance. Speaking on February 3, 2026, Thakur highlighted the positive impact of a recent trade accord between India and the United States, which has alleviated significant global uncertainty. She emphasized that while India aims to uphold fiscal responsibility, it will not compromise on its social and developmental priorities. This statement reflects the government's ongoing efforts to balance economic stability with the need for social investment, ensuring that growth does not come at the expense of essential public services and development initiatives. The announcement comes at a time when global economic dynamics are shifting, and India seeks to position itself as a resilient player in the international market. 
Published: Feb 03 2026, 4 pmeznews.inThe Employees' Provident Fund Organisation (EPFO) has welcomed the Union Budget proposal for 2026-2027, which aims to rationalise the income tax framework for provident fund trusts, enhancing stakeholder interests through greater convergence and harmonisation of regulations. The budget aligns the income tax provisions governing recognised provident funds with the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, addressing existing discrepancies in eligibility for exemptions and investment patterns. Notably, the rigid ceiling on investments in government securities has been lifted, while the employer's contribution is now capped at ₹7.5 lakh per annum, with any excess taxed as perquisites. The EPFO emphasised that these changes will reduce confusion and litigation, ensuring that EPF exemptions are clearly governed by the relevant legislation. The adjustments reflect a significant step towards streamlining the regulatory framework for provident funds in India.
Published: Feb 03 2026, 5 pmeznews.inThe Aluminium Extrusion Manufacturers Association of India (ALEMAI) has expressed concerns that the recent India-US trade deal will primarily benefit select sectors, leaving aluminium, iron, and steel exports still subject to a steep 50 per cent tariff in the US market. Following a phone conversation between US President Donald Trump and Indian Prime Minister Narendra Modi, it was announced that reciprocal tariffs on Indian goods would decrease from 25 per cent to 18 per cent. However, ALEMAI President Jitendra Chopra noted that while this reduction aids industries like textiles and electronics, core metal sectors will continue to face high duties under US Section 232 regulations, which are set to remain in effect until June 2025. Despite these challenges, Chopra welcomed the trade deal as a positive step towards reducing uncertainty in trade relations, which could accelerate India's economic development. India's merchandise exports to the US saw a slight decline in December 2025, attributed to these high tariffs.
Published: Feb 03 2026, 4 pmeznews.inIndian refiners are seeking clarity from the government regarding future Russian oil purchases following President Donald Trump's announcement that India, the world's third-largest oil importer, would cease imports of Moscow's crude in exchange for reduced trade tariffs. This announcement came after a call with Prime Minister Narendra Modi, who did not address oil in his response. While India has reduced its Russian crude imports, particularly after sanctions on major producers, it has not completely halted purchases due to attractive discounts. Reports indicate that at least three refiners are seeking guidance, with two temporarily suspending purchases. India's imports, which peaked at over 2 million barrels per day post-Ukraine invasion, have since declined to around 1.2 million barrels. Officials predict further reductions to between 800,000 and 1 million barrels per day, with a focus on increasing imports from Canada and the US.
Published: Feb 03 2026, 4 pmeznews.inIndia's Chief Economic Advisor, V. Anantha Nageswaran, has indicated that the country's economic growth could exceed previous forecasts following a significant reduction in US tariffs on Indian goods. In an interview with Bloomberg Television, Nageswaran suggested that growth might approach 7.4% this year, up from his earlier estimate of 6.8% to 7.2%. The US has lowered its tariff on Indian imports from 25% to 18% and eliminated a punitive duty on Russian oil, a move that could enhance India's attractiveness to global manufacturers. This development aligns with Prime Minister Narendra Modi's ambition to transform India into a developed economy by 2047. The Indian markets responded positively, with the rupee experiencing its largest gain in over three years and stocks rising significantly. Other economists are also expected to revise their growth forecasts upward, reflecting the positive impact of the tariff changes.
Published: Feb 03 2026, 4 pmeznews.inCareEdge Ratings has revised its FY27 GDP growth estimate for India upward by 20 basis points to 7.2%, attributing this boost to a recent US-India trade deal that reduces reciprocal tariffs. Chief Economist Rajani Sinha noted that the tariff cuts could enhance India's GDP by approximately 0.2 percentage points, with around USD 65 billion of exports expected to be affected. The deal, announced by US President Donald Trump, includes a reduction of tariffs from 25% to 18% on certain goods, while India is expected to lower its tariffs and non-tariff barriers to zero. Although not all of India's USD 90 billion exports to the US will benefit from the lower tariff, sectors like gems, jewellery, textiles, and garments are anticipated to gain, especially as competing nations face higher tariffs. The agreement also includes commitments from India to increase purchases of US goods, including energy and technology.
Published: Feb 03 2026, 4 pmeznews.inAir India has initiated a precautionary inspection of the fuel control switches in its fleet of 33 Boeing 787 Dreamliners following a reported malfunction on a flight from London Heathrow to Bengaluru. The airline's Senior Vice President for Flight Operations, Manish Uppal, informed pilots that the engineering team has escalated the issue to Boeing for urgent evaluation. While no adverse findings have emerged from the inspections conducted so far, Air India has urged its crew to report any defects immediately and ensure all necessary checks are completed before accepting aircraft. This heightened scrutiny comes in the wake of a tragic incident last June, where a Boeing 787-8 crash resulted in 260 fatalities, with preliminary investigations indicating a fuel supply cut shortly after take-off. Air India’s fleet comprises 26 legacy Boeing 787-8s and 7 Boeing 787-9s, including aircraft acquired from Vistara.
Published: Feb 03 2026, 3 pmeznews.inIndia's seafood exporters are optimistic following a revised tariff structure that lowers duties to 18% for exports to the United States, restoring competitiveness with nations like Ecuador, Indonesia, Thailand, and Vietnam. G. Pawan Kumar, President of the Seafood Exporters Association of India, expressed confidence that this change will boost exports, which had previously declined by 6.3% in value and nearly 15% in quantity from April to November 2025 due to a steep 50% tariff imposed in August. The US remains India's largest seafood market, with exports valued at $2.78 billion in 2024-25. K.N. Raghavan, secretary general of SEAI, noted that the new tariff levels provide a fair playing field for Indian exporters. Additionally, industry leaders highlighted that reduced tariffs would enhance access to advanced cold-chain and processing technologies, crucial for improving food safety and operational efficiency as businesses expand.
Published: Feb 03 2026, 3 pmeznews.inMoody's Ratings announced on Tuesday that the US's decision to lower tariffs on most Indian goods is a positive development for India's labour-intensive sectors, particularly gems, jewellery, textiles, and apparel, which are among the country's top export categories. Following a phone conversation between US President Donald Trump and Indian Prime Minister Narendra Modi, it was revealed that the tariff rate will decrease from 25% to 18%. Moody's noted that this trade deal is expected to boost India's goods export growth to the US, which accounts for approximately 21% of India's total goods exports in the first 11 months of 2025. However, the reduction will not impact pharmaceuticals and consumer electronics, which were previously exempt from high tariffs. Additionally, Moody's cautioned that while India has reduced its crude oil purchases from Russia, a complete shift could disrupt economic growth and lead to higher inflation due to India's status as a major oil importer.
Published: Feb 03 2026, 3 pmeznews.inGoldman Sachs has upgraded its real GDP growth forecast for India in calendar year 2026 by 20 basis points to 6.9%, attributing this positive outlook to enhanced investment sentiment and reduced trade-policy uncertainty following a recent US-India trade deal. The agreement, announced by President Trump, lowers reciprocal tariffs on Indian goods from 25% to 18%, aligning India's tariff rates more closely with those of other Asian nations. Goldman Sachs estimates that the new tariffs could provide an incremental boost of approximately 0.2 percentage points to GDP, driven by India's goods exports to the US. The report also predicts a narrowing of India's current account deficit by about 0.25% of GDP, easing pressure on the rupee through improved capital inflows. Overall, the conclusion of the trade deal is expected to bolster private investment and potentially enhance economic growth in the latter half of 2026.
Published: Feb 03 2026, 3 pm
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