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The Indian government is exploring support measures for exporters facing liquidity challenges due to a recent increase in U.S. tariffs, which have doubled to 50%. Amidst ongoing tensions, U.S. trade advisor Peter Navarro suggested that these tariffs could be lifted if India ceases oil purchases from Russia, a proposal India has rejected. Exporters have reported significant difficulties, prompting the government to consider reviving the export promotion mission and potentially reinstating the Merchandise Export from India Scheme (MEIS) to provide financial relief. Brazil has already implemented a $5.6 billion support plan for its exporters facing similar tariffs. Indian officials are evaluating proposals for credit guarantees and interest subvention schemes to alleviate the burden on exporters, who are advocating for government support equivalent to 15% of export values to offset the competitive disadvantage posed by U.S. tariffs compared to other countries. 
Published: Aug 28 2025, 8 pmeznews.inIn a move aimed at protecting the interests of Indian passengers amid ongoing airspace closures, the Indian government has extended IndiGo's deadline to operate wet-leased Boeing 777 aircraft from Turkish Airlines by six months, now set to expire on February 28, 2026. This decision follows a previous three-month extension granted by the Directorate General of Civil Aviation (DGCA) until August 31, 2025. Sources indicate that the extension is crucial as IndiGo currently lacks sufficient wide-body aircraft to service long-haul routes, particularly due to restrictions on narrow-body planes. The Boeing 777s are primarily used on routes from Delhi and Mumbai to Istanbul. Additionally, the government is reviewing the bilateral air services agreement with Turkiye, which currently permits 56 flights per week, in light of declining passenger numbers. An IndiGo spokesperson welcomed the extension, emphasizing its importance for maintaining operations and meeting the rising demand for international travel during peak seasons.
Published: Aug 28 2025, 10 pmeznews.inIndia has indicated that a trade deal with the US hinges on addressing the full spectrum of tariffs imposed on its goods, including a recent 25% penalty for purchasing Russian oil. Despite these tensions, New Delhi is not expected to retaliate against the US, as negotiations for a bilateral trade agreement (BTA) are set to continue, albeit without a confirmed date for further talks. White House trade advisor Peter Navarro linked the penalty tariff to India's oil purchases from Russia, suggesting it could be lifted if India ceased these transactions. India defends its oil imports as essential for affordable energy for its population, criticizing Western nations for their own trade with Russia. Former Ambassador Anil Trigunayat warned that continued unreasonable tariffs could provoke retaliatory measures, while US officials maintain that India must make concessions for progress in negotiations. The BTA remains stalled due to India's refusal to compromise on sensitive agricultural and automotive tariffs.
Published: Aug 28 2025, 9 pmeznews.inIndia's domestic air passenger traffic experienced its first year-on-year decline in several months, dropping by 2.94% in July 2025, according to the Directorate General of Civil Aviation (DGCA). Scheduled airlines transported 12.6 million passengers in July, down from 13 million in the same month last year and 7.33% lower than June's figures. Despite this monthly decline, passenger numbers from January to July 2025 rose by 5.9% compared to the previous year, totaling 97.8 million. IndiGo maintained its market dominance with a 65.2% share, carrying 8.2 million passengers, while the Air India Group, which includes Air India and Air India Express, accounted for 26.2% with 3.3 million passengers. Akasa Air and SpiceJet followed with 5.5% and 2% market shares, respectively. In terms of passenger load factors, Akasa Air led the industry at 90.2%.
Published: Aug 28 2025, 9 pmeznews.inThe Goods and Services Tax (GST) Council is set to meet on September 3-4 to discuss a proposal for rate rationalisation that could significantly reduce costs for essential items such as toothpaste, hair oil, and soaps to a 5% slab. This follows Prime Minister Narendra Modi's announcement regarding GST 2.0, which proposes two main rates of 5% and 18%, alongside a special rate of 40%. Items like readymade garments and cinema tickets priced below ₹100 may also see reduced GST rates. Additionally, the Council will address the long-standing issue of the inverted duty structure in the fertilizer sector, where higher input taxes lead to financial inefficiencies. The proposed changes aim to stimulate festive buying ahead of the Navratri season, with new rates expected to be implemented soon.
Published: Aug 28 2025, 8 pmeznews.inIndia's dairy industry, which produces 240 million tonnes of milk annually, is vital for the livelihoods of 80 million families, according to R S Sodhi, President of the India Dairy Association. Speaking at a conference in Hyderabad, he highlighted the need to protect this sector amid concerns over rising global dairy prices, particularly as the US pressures countries to import dairy products. India is projected to increase its milk production to 628 million tonnes by 2047, potentially contributing 45% of global output. However, Sodhi cautioned that milk prices cannot rise disproportionately to production costs due to price elasticity in food demand. He advocated for improved breeding practices and feed efficiency to boost milk yield without raising consumer prices. The potential for India to import milk could destabilize global prices, affecting not only India but also other countries in Asia and South America.
Published: Aug 28 2025, 8 pmeznews.inThe Cotton Corporation of India (CCI) has reduced its floor price by ₹600 per candy (356 kg) following the government's extension of duty-free cotton imports until the end of the year. This marks the third price cut in just ten days, totaling a reduction of ₹1,700 per candy. Despite these adjustments, CCI's prices remain higher than what mills are willing to pay, particularly as the quality of their remaining stock is perceived to be inferior. Currently, CCI has around 27 lakh bales in stock, with an additional 18 lakh bales sold but not yet lifted. Industry experts suggest that further price reductions of at least ₹2,000 per candy may be necessary to attract buyers. Farmers have expressed concerns that the removal of the import duty could negatively impact their earnings, as CCI prepares for market interventions in the upcoming season.
Published: Aug 28 2025, 8 pmeznews.inThe Middle East's free on board (FOB) price for urea surged to $506.25 per tonne on Thursday, reflecting a rise from India's last contracted rate of $530 per tonne (cost and freight, CFR). This increase is driven by heightened demand from India, which is facing declining urea stocks. Indian importers are optimistic about securing prices around $500 per tonne when bids open on September 2. Experts note that freight and insurance could add approximately $30 per tonne to the cost. Government data indicates that the average urea FOB rate in June was $395 per tonne, marking a 15% year-on-year increase. The decline in urea stocks, now at 2.96 million tonnes—over 61% lower than last year—has been attributed to increased demand from farmers shifting towards crops like paddy and maize, which require more urea. The government plans to import 2 million tonnes in August and September to address the supply gap.
Published: Aug 28 2025, 8 pmeznews.inThe European Center for Medium-Range Weather Forecasts has predicted heavy rainfall across North-West India, West India, and the West Coast over the next three days, ending August 31. The India Meteorological Department (IMD) has identified a low-pressure system over Chhattisgarh, which is expected to contribute to ongoing monsoon conditions, potentially leading to another low forming by September 3. Recent heavy rainfall has already impacted Telangana, with Kamareddy recording 41 cm, and similar conditions are anticipated in Coastal Karnataka. The IMD warns of continued heavy to very heavy rainfall in these regions, particularly over Uttarakhand and East Rajasthan. The monsoon is expected to remain active into early September, with normal to above-normal rainfall likely across various parts of India, including the South-East Peninsula, until mid-September, coinciding with the gradual withdrawal of the monsoon.
Published: Aug 28 2025, 6 pmeznews.inTamil Nadu Chief Minister MK Stalin has called for urgent relief and structural reforms from the Indian government in response to a significant 50% tariff hike imposed by the US, which has severely impacted the state's textile exports, particularly from the Tiruppur hub. The tariff increase is projected to cause a trade loss of nearly ₹3,000 crore and jeopardize thousands of jobs in the region. KM Subramanian, president of the Tiruppur Exporters’ Association, emphasized that knitwear exporters, who rely heavily on the US market, will be the most affected, with 30% of their exports, valued at approximately ₹12,000 crore, at risk. He noted that while competitors like Vietnam and Bangladesh face a 25% tariff, India's higher rate poses a significant challenge. The situation has led to increased buyer requests for discounts and cancellations, threatening low-value garment exports worth ₹2,000 to ₹2,500 crore annually.
Published: Aug 28 2025, 5 pm
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