The article below describes how India feels it has been unfairly treated by the European Union and the United States due to its trade with Russia, especially concerning oil.
The article also mentions how Trump threatened to increase tariffs on India, even though the United States and the EU themselves have continued significant trade with Russia. India has defended itself by citing national needs and a balanced energy economy.
The short article below discusses, among other things, how the United States will raise tariffs on products imported from India to 50 percent by the end of August, which is related to India’s oil trade with Russia.
According to Goldman Sachs, this could weaken India’s GDP growth by 0.3 percentage points annually. India considers the decision unfair and unjustified.
The article below discusses how the impact of tariffs imposed by the Trump administration on the Indian economy is quite manageable, and the country’s growth prospects remain intact.
India relies on domestic consumption, and the “re-routing” of oil imports would only marginally increase expenses. The credit rating also rose, which was partly due to relatively stable prospects.
The United States is a key partner, but its share of exports is small. The country’s economy and financial affairs have strengthened, but on the other hand, sustained high growth is needed to create more jobs and reduce inequality, etc.
More on these matters can be found in the article below.
Yoga guru Ramdev criticized the United States for economic “hooliganism” and said that India would ally with Russia and China to create a more just world order. According to him, Western dominance would gradually crumble and new “centers of power” would emerge.
As stated above, according to Ramdev, India should strengthen its cooperation with the great powers of the East in areas such as economy, security, and politics. He believes that in this way, India can challenge the influence of the United States and secure a better position in global competition.
Ramdev is therefore much more than just a yoga guru, for example, an influential businessman, etc.
EDIT:
I am adding the story below, which reports how the US trade delegation’s visit to India, planned for the end of August, has been canceled due to growing trade tensions.
Trump has imposed tariffs of up to 50 percent on Indian products, which has drawn strong criticism in India, and no new meeting schedule has been agreed upon yet.
The article below also contains some familiar information, once again dealing with, among other things, many customs matters.
The United States is imposing additional tariffs on India because it buys Russian oil and resells it during the war in Ukraine. According to Treasury Secretary Bessent, these are “secondary tariffs” and India is profiting from the situation. Trump previously raised tariffs on India to 50 percent and even threatened 100 percent tariffs if peace in Ukraine is not achieved.
Key Points
Apple has reportedly boosted production in India as the country faces pressure from the White House for buying Russian oil.
The technology giant has reportedly upped production at five of its factories in India as it readies for the launch of its new iPhone 17 models.
Treasury Secretary Scott Bessent told CNBC’s “Squawk Box” on Tuesday that the White House is planning to up tariffs on India, which is “profiteering” off of the war.
Indian Prime Minister Narendra Modi has announced a significant tax reform, simplifying the current four tax brackets into two: 5 percent and 18 percent.
According to experts, this would ease consumption and could boost economic growth. The reform also aims to support domestic demand as US tariffs tighten again.
Many young consumers view the change positively. The government hopes this reform will stimulate both consumption and employment.
The article below discusses India’s difficult balancing act. The United States has imposed significant tariffs on its exports, but at the same time, India needs cheap oil from Russia and must continue to maintain a tense relationship with China.
Prime Minister Modi is trying to reconcile these conflicting “ties” without breaking off relations.
"Key Points
India is walking a tightrope of tariffs from Washington, oil from Moscow, and an uneasy handshake with Beijing.
It comes as Prime Minister Narendra Modi prepares for his first trip to China in more than seven years, where he will meet President Xi Jinping and stand alongside Russian President Vladimir Putin."
I don’t know if this tells much about India’s progress… but Indian Reliance Industries announced new AI partnerships with Google and Meta, among others.
According to the article below, the goal of the collaboration is to accelerate innovation in sectors such as energy, retail, telecom, and finance. Reliance will leverage Google’s cloud services and Meta’s open-source AI models to develop enterprise-focused AI in India.
Perhaps this somewhat reflects India’s rapid economic growth, its overall digital transformation, and its ambition to strengthen its own AI expertise.
According to the article below, India’s economy surprised by growing faster than expected in the early part of the year.
Strong growth was boosted by increased government spending and also by strong exports, but experts warn, however, that US tariffs will weaken exports and jobs.
Nevertheless, consumption and reform efforts keep the outlook reasonably strong. More about this from the link below:
India’s current account deficit narrowed in the first quarter, while services exports grew and remittances from abroad exceeded expectations.
However, US tariffs continue to weigh on exports, and economic experts warn that the deficit could grow again later.
The US is India’s biggest export destination, accounting for a fifth of the country’s total merchandise exports in the year through March 2025, when the South Asian nation shipped $87.4 billion worth of goods.
India’s economy is performing surprisingly well, even though Trump’s tariffs hit the country hard. Goldman Sachs has already raised its growth forecast, and domestic consumption looks brisk; inflation is low, interest rates are falling, and the GST reform eases everyday life.
On the other hand, a weak rupee is a big question mark, as the currency depreciates, imports become more expensive, and the budget may suffer.
Foreign investors have also pulled billions out, which further pressures markets and the currency; additionally, if oil prices surge and trade disputes continue, the rupee could fall even lower.
Below is an article stating that India simplified its GST (Goods and Services Tax) to two tiers (5% and 18%) and lowered taxes on several consumer goods and insurance, but added a 40% surcharge on luxury and sin goods. The government hopes this will increase consumption and soften the impact of the US’s 50% tariffs.
The article discusses that tax cuts can increase demand, support businesses, and boost household purchasing power, but they also mean a loss of tax revenue for the state.
Baillie Gifford’s investment specialist Qian Zhang wrote about emerging markets.
In emerging markets, artificial intelligence, 5G technology, and financial technology are being rapidly and widely adopted, often skipping traditional infrastructure entirely.
India is now the world’s largest and most active mobile internet user market, while China produces over half of the world’s research publications on artificial intelligence.
In a multipolar world, emerging markets are increasingly trading with each other. As trade in currencies other than the US dollar increases, it reduces emerging markets’ reliance on the United States.
There’s nothing particularly extraordinary in the article below, but I think it’s a good piece about the reasons that have partly explained India’s slower development.
Indian auditor Nitin Kaushik criticizes India’s slow development compared to China’s rapid rise.
He emphasizes that China surpassed India after the 1980s with systematic and efficient implementation, such as rapid infrastructure projects and industrialization.
India, on the other hand, is plagued by political delays, land disputes, and weak execution.
The article below reports how India urged BRICS countries to address trade imbalances, as its largest deficits arise precisely with partners, especially China and Russia. China’s trade surplus with India already rose to nearly $100 billion in the “fiscal year” 2025, and the trade deficit with Russia swelled to nearly $60 billion due to oil imports.
At the same time, the tone of the BRICS summit darkened in the shadow of harsh US tariffs. Brazil and China openly criticized the United States, while India emphasized economic issues.
Trade negotiations with the United States are stalled, but Trump and Modi issued conciliatory statements, suggesting opportunities to improve relations in the future.
In the story below, according to an Indian expert, the impact of US tariffs on the country’s growth is mitigated by the government’s consumption tax cuts.
GST reforms are expected to strengthen domestic demand, but in any case, GDP growth is estimated to slow down by 0.2–0.3 percentage points.
India’s consumer inflation rose to 2.07 percent in August after nine months of decline, in line with analysts’ expectations.
According to the article below, the price increase was driven by vegetables, meat, and oils. Inflation remains within the central bank’s target range, allowing for monetary policy easing to slightly mitigate the effects of U.S. tariffs.
" Key Points
India’s inflation picked up in August due to higher prices for vegetables, meat and oils.
Headline inflation rose after nine months, in line with median estimates for August.
S&P Global Market Intelligence flags a soft inflation trend to support private demand and facilitate monetary policy easing, partially mitigating impact of U.S. tariffs."
A Business Standard article reports on how the Indian think tank GTRI warns about the country’s dependence on US software, cloud services, and social media platforms. According to GTRI, the US would have the ability to cut off access to critical systems, which would pose a serious risk to the entire country’s economy and security.
As a solution, a “Digital Swaraj Mission” program is proposed to develop its own operating system, cloud services, and cybersecurity. According to the proposal, the plan could proceed in phases.
"The government should launch a ‘Digital Swaraj Mission’, with sovereign cloud, indigenous OS, homegrown cybersecurity, and data-driven AI leadership at its core," GTRI founder Ajay Srivastava said.
Hyvä huomata myös, että EU:lla ja Intialla vapaakauppasopimusneuvottelut loppusuoralla.
“Nearly 20 years have elapsed since EU-India trade negotiations were first launched. While not quite as long as the EU-Mercosur negotiations, which started in 2000 and concluded in 2024, the EU-India talks are reaching a point where there is sufficient political involvement at leaders’ level to strike a deal. Failure would be a huge economic and political setback for both sides, especially given the current state of the world.”
