Trump tariffs, TCS Q1 earnings among 9 factors that'll steer D-Street this week
Indian benchmark indices traded in a range-bound manner, with the Nifty ending the week 0.7% lower. A host of important domestic and global events lined up for the coming week are likely to impact stock markets when trading resumes on Monday.On Friday, the Nifty rose 55.70 points, or 0.22%, to close at 25,461.Commenting on the week's action, Vinod Nair, Head of Research at Geojit Financial Services, attributed the profit booking to the sharp rally seen in recent sessions. He said mixed global cues and the impending U.S. tariff deadline have prompted investors to adopt a wait-and-watch approach. According to him, the broader economy stands to benefit from favorable conditions such as easing inflation and declining interest rates, though a positive outcome from the U.S.-India trade negotiations will be a key factor in lifting market sentiment.He also highlighted that foreign institutional investors (FIIs) have turned cautious amid elevated market valuations and mixed global cues, even as domestic institutional investors (DIIs) continue to provide support, helping stabilize sentiment.Factors that are likely to impact movement when markets reopen this week:
Investors in trade-sensitive sectors such as IT, pharma, and auto will closely track developments as the deadline for the pause on Trump-era tariffs ends on Wednesday, July 9. U.S. President Donald Trump has already stated that he is not considering an extension.OPEC+ on Saturday agreed to raise production by 548,000 barrels per day in August, further accelerating output increases at its first meeting since oil prices surged—and then retreated—following Israeli and U.S. attacks on Iran. The cartel, which produces about half of the world's oil, has reversed its earlier stance this year by agreeing to increase output and expand its market share.The additional production is expected to prevent any sharp spike in oil prices. The trajectory of crude prices remains critical to the global inflation outlook.U.S. WTI crude contracts settled at $66.50, down $0.50 or 0.75%, while Brent futures were hovering near $68.30, up $0.29 or 0.42%.Indian markets will also take cues from Wall Street, which ended with sharp gains on Friday, buoyed by better-than-expected jobs data. The Dow Jones Industrial Average closed at 44,828.50, up 344.11 points or 0.77%, while the S&P 500 finished at a fresh record high, rising 51.93 points or 0.83% to 6,279.35. The Nasdaq Composite also closed at a new peak of 20,601.10, gaining 207.97 points or 1.02%.
The earnings season kicks off this week with 42 BSE-listed companies set to announce their April–June quarter results. IT bellwether Tata Consultancy Services (TCS), Avenue Supermarts (DMart), Anand Rathi Wealth, and Tata Elxsi are among the key names the Street will be watching closely.
Another action-packed week lies ahead, with the mainboard IPO of Travel Food Services set to open. The company has fixed the price band at Rs 1,045–1,100 per share. In the SME segment, IPOs of Smarten Power Systems, Chemkart India, GLEN Industries, and Asston Pharmaceuticals will open for subscription. Meanwhile, the IPO of Happy Square Outsourcing Services will close on Monday.Among the listings, Crizac will debut in the mainboard segment, while Vandan Foods, Cedaar Textile, Pushpa Jewellers, and Silky Overseas will make their market debut in the SME segment.A number of corporate actions are scheduled this week, with record dates for dividends, rights issues, and bonus shares set across the five-day trading window. Nearly three dozen companies will be in focus, including Nifty constituents like Titan, JSW Steel, and Sun Pharmaceuticals.Other widely tracked stocks that will see action include JK Cement, Ingersoll-Rand (India), Mphasis, Pfizer, Apollo Tyres, Balkrishna Industries, Can Fin Homes, and IDFC First Bank.
Market action will largely hinge on the behavior of foreign institutional investors (FIIs). On Friday, FIIs offloaded shares worth Rs 760.11 crore, while domestic institutional investors (DIIs) were also net sellers to the tune of Rs 1,028.84 crore. After being net buyers in April, May, and June, FIIs have turned net sellers in July so far, pulling out Rs 1,421 crore from Indian equities.
Commenting on Nifty's technical setup, Rupak De, Senior Technical Analyst at LKP Securities, said the daily chart of the 50-stock index shows the formation of a hammer pattern, which is typically seen as a bullish reversal signal. He identified key support at 25,300. "As long as the index remains above this level, bullish sentiment is expected to persist, with the potential for a swift rebound. On the higher side, the index could advance towards 25,800–26,100 in the near term. Immediate resistance is placed at 25,500, and a breakout above this level could further strengthen the upward momentum," De said.
The Indian rupee witnessed muted price action on Friday, ending the week little changed as traders awaited developments in U.S.-India trade talks. A positive outcome could potentially help the local currency break past a key resistance level. The rupee closed at 85.3925, down about 0.1% both for the day and the week. The currency had touched a one-month peak of 85.25 in the previous session but pared gains on Friday after traders reduced bets on U.S. Federal Reserve rate cuts, following stronger-than-expected labor market data.Routine dollar demand from importers also weighed on the rupee during the session. 'Market participants avoided aggressive bullish positions on the local currency to limit carry risk over the weekend,' a trader at a foreign bank said.While the rupee has consistently failed to sustain a move above the technical resistance zone of 85.35–85.40 in recent sessions, a favorable trade deal with the U.S. may help it clear that hurdle, the trader added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Key Points to Ponder: • What is the history of India-Argentina relations? • What are the areas of cooperation between India and Argentina? • What is the significance of Argentina's critical mineral reserves for India's clean energy transition? • As India seeks to leverage Argentina's vast shale gas and oil reserves to diversify its energy portfolio, what are the opportunities and challenges associated with it? • How can India's partnership with Argentina shape India's mineral security strategy? • What is a preferential trade agreement? • What is Unified Payments Interface (UPI)? How many countries have adopted UPI? • As India and Argentina are working towards a Preferential Trade Agreement and UPI adoption, how can such initiatives deepen India's economic footprint in Latin America? • Map work: Location of Argentina. (Refer to the atlas.) Key Takeaways: • Modi and Milei met last November on the sidelines of the G20 Leaders' Summit in Brazil. On Saturday, the two sides decided to work towards a preferential trade agreement and faster approval towards Indian medicines, and adoption of the UPI system after the bilateral meeting. • This is the first Indian bilateral visit to Argentina at the level of the Prime Minister in 57 years. It is Modi's second visit to the country as Prime Minister – he was there in 2018 for the G20 Summit. • Argentina has been a strategic partner of India since 2019 and the two countries celebrated 75 years of diplomatic relations last year. • P Kumaran, Secretary (East) in the Ministry of External Affairs, said, 'The Prime Minister's visit to Argentina comes at a particularly significant time as Argentina is undertaking major economic reforms similar to those India went through in the past.' • Argentina holds the world's second largest shale gas reserves and the fourth largest shale oil reserves along with substantial conventional oil and gas deposits, making it a potentially important energy partner for India in the future. • Argentina's rich reserves of critical minerals such as lithium, copper and rare earth elements complement India's growing need for secure and sustainable supplies to these elements for its clean energy transition and industrial growth. India's public sector joint venture company KABIL has already won a few concessions in Argentina since 2024. • 'The visit will further strengthen the strategic partnership between India and Argentina and to explore new areas of cooperation across a wide range of sectors. These particularly include trade and investment, health and pharmaceuticals, defence and security, infrastructure, mining and mineral resources, agriculture and food security, green energy, information and communication technologies, digital innovation, disaster management, science and technology, education and people to people linkages,'said P Kumaran, Secretary (East) in the Ministry of External Affairs. Do You Know: • The last visit by an Indian PM to Argentina was by Indira Gandhi in 1968. As Prime Minister, Indira Gandhi visited Argentina as part of her tour of South American nations in 1968. • The first recorded visit by an Argentine to India was in 1848. According to Indologist Gustavo Canzobre, Indo-Argentinean relations date back to 1848 when the 17-year-old Argentine Lucio V. Mansilla visited India. Mansilla's writings of his travels across India and East Asia were recorded in the book Diario de viaje a Oriente (1850-51) (Travel Journal to the Orient [1850-51]). Other Important Articles Covering the same topic: 📍PM Modi in Argentina: 3 lesser-known facts about India-Argentina relations UPSC Prelims Practice Question Covering similar theme: (1) Consider the following statements with reference to India-Argentina relations: 1. Argentina holds the world's largest reserves of shale gas and shale oil. 2. Argentina has been a strategic partner of India since 2019. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Syllabus: Preliminary Examination: Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc. Mains Examination: General Studies II: Salient features of the Representation of People's Act, Constitution of India — features, significant provisions and basic structure. What's the ongoing story: Citing 'lack of due process' and 'the unreasonably short timeline' for the 'Special Intensive Revision' of electoral rolls in poll-bound Bihar, NGO Association for Democratic Reforms (ADR) has approached the Supreme Court, challenging the Election Commission exercise by calling it unconstitutional and warning that it will 'disenfranchise lakhs of voters'. Key Points to Ponder: • What is Article 32 of the Constitution of India all about? • Know the Articles 14, 19, 21, 325 and 326 of the Constitution of India • What are the constitutional provisions related to the Elections in India? • Read about the Election Commission of India (ECI) and Representation of the People Act, 1950. • What is the primary objective of the 'Special Intensive Revision' (SIR) of electoral rolls? • Under which provision does the ECI conduct a 'Special Intensive Revision' of electoral rolls? • What are the constitutional and legal mandates empowering the ECI to carry out SIR? • Compare the SIR measures in Bihar with Assam NRC exercise. • What are the challenges and implications of requiring birth date/place proof for different age cohorts during roll revision? • What can be the implications of shifting the onus of voter registration from the State to citizens, especially in states with high poverty and migration? • What measures should be taken to balance electoral integrity with inclusivity? Key Takeaways: • In its petition dated July 4, filed through advocate Prashant Bhushan, the ADR said, 'The present Writ Petition has been filed under Article 32 of the Constitution of India, seeking setting aside of Order and communication dated 24.06.2025 issued by the Respondent Election Commission of India (ECI), directing for Special Intensive Revision of Electoral Rolls in Bihar (SIR Order), as being in violation of Articles 14, 19, 21, 325 and 326 of the Constitution of India as well as provisions of the Representation of the People Act, 1950 and Rule 21A of the Registration of Electors Rules, 1960.' • 'The SIR order dated 24.06.2025, if not set aside, can arbitrarily and without due process disenfranchise lakhs of voters from electing their representatives, thereby disrupting free and fair elections and democracy in the country, which are part of the basic structure of the Constitution,' the plea stated. • It said 'the documentation requirements of the directive, lack of due process as well as the unreasonably short timeline for the … revision… further make this exercise bound to result in removal of names of lakhs of genuine voters from electoral rolls, leading to their disenfranchisement.' • The NGO said the EC's June 24 order 'has shifted the onus of being on the voters' list from the State to citizens. It has excluded identification documents such as Aadhaar or ration cards which further make marginalised communities and the poor more vulnerable to exclusion from voting'. • 'The declaration as required under the SIR process is violative of Article 326 in so far as it requires a voter to provide documents to prove his/her citizenship and also citizenships of his/her mother or father, failing which his/her name would not be added to the draft electoral roll and can be deleted from the same,' it stated. • Pointing out that 'Bihar is a state with high poverty and migration rates where many lack access to documents like birth certificates or parental records,' it said 'as per estimates, over 3 crore voters and more particularly from marginalised communities (such as SC, STs and migrant workers) could be excluded from voting due to the stringent requirements as mentioned in the SIR order. ' • According to ADR, Section 21(3) of the RPA, 1950 allows the ECI to direct a special revision of electoral rolls 'for reasons to be recorded' but the directive for Bihar 'lacks recorded reasons supported by any evidence or transparent methodology, rendering it arbitrary and thus liable to be struck down'. • It said the 'SIR of Bihar or any other state of country is a positive step, but the manner in which ECI has directed the conduct of SIR in a poll-bound state like Bihar has raised questions from all stakeholders, particularly the voters.' Do You Know: • The ECI is a permanent, independent, and constitutional authority responsible for conducting free and fair elections in the Union and the States of India. • The ECI is empowered to supervise, oversee, and manage elections to Parliament, state legislatures, and the offices of President and Vice-President of India. Since the ECI does not oversee elections to state-level urban bodies like municipalities and panchayats, there is a separate State Election Commission. • The Constitution has the following articles (Articles 324–329) to empower the Election Commission and provide insight into the potential roles and functions of the commission. • Article 324: The superintendence, direction and control of the preparation of the electoral rolls for, and the conduct of, all elections to Parliament and the Legislature of every state and of elections to the offices of President and Vice-President. • Article 325: No individual to be excluded from electoral rolls on the basis of religion, race, caste, sex or any of them. • Article 326: Adult suffrage shall be the basis for elections to the House of the People and to the Legislative Assemblies of States. • Article 327: Parliament may, according to the provisions of this Constitution, from time to time enact laws with respect to all matters relating to elections to Parliament and Legislative Assemblies of States. • Article 328: A state's Legislature may from time to time by law make provision with respect to all matters relating to, or in connection with, the elections to the House or either House of the Legislature. • Article 329: The article prohibits the courts from becoming involved in electoral matters. Other Important Articles Covering the same topic: 📍Starting with Bihar, fresh electoral rolls: Proof of birth date for those not in 2003 list 📍Revision of Bihar electoral rolls: Why, how Previous year UPSC Prelims Question Covering similar theme: (2) Consider the following statements: (UPSC CSE 2017) 1. The Election Commission of India is a five-member body. 2. The Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections. 3. Election Commission resolves the disputes relating to splits/mergers of recognised political parties. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 2 and 3 only (d) 3 only Syllabus: Preliminary Examination: Current events of national and international importance, History Mains Examination: General Studies-II: India and its neighbourhood- relations What's the ongoing story: Varinder Bhatia writes- 'In the history of Tibet and Indo-China relationship, April 26, 1959, was a turning point. Having fled his homeland following China's invasion, the Dalai Lama met Prime Minister Jawaharlal Nehru who declared that the spiritual and political leader of Tibetan Buddhists 'should be allowed to live in peace' in India.' Key Points to Ponder: • Who is the Dalai Lama? The Dalai Lama is considered the spiritual head of which Tibetan Buddhist school? • Tibetan Buddhist school evolved from which traditions of Buddhism? • What is the history of Tibet and Indo-China relationship? • Which agreement in 1951 formally brought Tibet under Chinese sovereignty, leading to tensions that resulted in the Dalai Lama's exile? • What are the implications of China's role in the selection of the next Dalai Lama for India-Tibet relations and regional geopolitics? • What are the geopolitical and diplomatic consequences of India granting asylum to the Dalai Lama in 1959? • How did granting asylum to the Dalai Lama shape Indo-China relations? • Read about the 1962 Sino-Indian war. • What was the Panchsheel Treaty? • Map work: Khenzimane Pass in Arunachal Pradesh Key Takeaways: • 'On Wednesday, the Dalai Lama, who turns 90 on July 6, reiterated that the institution would continue and only his Gaden Phodrang Foundation would have the authority to recognise the reincarnation, ending uncertainty on whether he will have a successor or not after his death.' • The Dalai Lama, who is the 14th to hold the title, made the announcement from Dharamshala in Himachal Pradesh, where all those decades ago he set up the Tibetan government-in-exile. At the time, following his arrival in the country, Nehru had told the public that the Tibetan spiritual leader 'had to undertake a very big and difficult journey' before meeting him. • 'The journey up to that point was long and arduous. Following China's occupation of Tibet and the violent repression that followed, the Dalai Lama and several other Tibetans left for India. The Dalai Lama, his family members, bodyguards, and fellow Tibetans were received by Indian border guards at the Khenzimane Pass in Arunachal Pradesh on March 31, 1959. On April 2, Indian government officials formally welcomed him at the Chutangmu outpost on April 2, 1959, and took him to the Tawang monastery. The following day, the Nehru government announced it had granted the Dalai Lama political asylum.' • 'The Dalai Lama eventually moved to Tezpur in Assam, where he released his first statement from Indian soil. On April 18, 1959, he criticised China for shelling the Norbulingka Palace, one of his residences in Lhasa, the month before. He expressed his deep gratitude to the Government of India and thanked the Indian public for their 'spontaneous and generous welcome'. In the same statement, the Dalai Lama mentioned he came to India 'of my own free will and not under duress'.' • 'For Nehru, too, it was not all smooth sailing when it came to granting the Dalai Lama asylum. The PM faced immense criticism, with many warning him of the consequences of 'antagonising China'.' • 'The day the Dalai Lama released the statement from Tezpur, China officially lodged its protest, accusing India of meddling in its internal affairs. Beijing insisted that the Dalai Lama 'be returned'. That laid the foundation of a future deterioration of Indo-China relations and eventually led to the 1962 Sino-Indian war.' • 'Nehru, however, cited 'moral and humanitarian' grounds to allow the Dalai Lama entry into India and also the decision to grant him political asylum.' • 'After Tezpur, the Dalai Lama lived in Mussoorie (now in Uttarakhand) for several months. In 1960, upon the invitation of the government, he moved to McLeodganj in Dharamshala and has been there since then, with the town becoming the centre for Tibetan cultural and political activities in exile.' Do You Know: • Despite effortless integration of cultures and communities, the Tibetan issue has always been a sensitive one for India, Tibet and China since the early 1950s. While then Prime Minister Jawaharlal Nehru welcomed waves of embattled Tibetans and granted the Dalai Lama asylum in 1959, even in the face of immense criticism and fears of 'antagonising China', after the India-China war in 1962, Delhi has been cautious about its public pronouncements on the Dalai Lama. • Since then, the Indian government has adopted a more nuanced position. While maintaining that the Dalai Lama is a 'revered religious leader and is deeply respected by the people of India' and that he has 'all the freedom to carry out his religious activities in India', Delhi doesn't officially support the Tibetan community's political activism in India. • More so now, when India and China are working towards normalising the bilateral relationship after a tense border standoff since 2020. On July 4, the Ministry of External Affairs released a carefully worded statement saying the government 'does not take any position or speak on matters concerning beliefs and practices of faith and religion. The Government has always upheld freedom of religion for all in India and will continue to do so.' • Panchsheel: The Panchsheel Agreement, formally known as The Agreement on Trade and Intercourse with Tibet Region, was signed on April 29, 1954, by N Raghavan, the Indian Ambassador to China, and Zhang Han-Fu, China's Foreign Minister. The preamble of the Panchsheel Treaty lay down five guiding principles: 1) Mutual respect for each other's territorial integrity and sovereignty; 2) Mutual non-aggression; 3) Mutual non-interference; 4) Equality and mutual benefit; and 5) Peaceful co-existence. • The agreement aimed to enhance trade and cooperation between the two countries, establishing each country's trade centres in major cities of the other, and laid out a framework for trade. The agreement also listed important religious pilgrimages, provisions for pilgrims, and acceptable routes and passes available to them. Importantly, India for the first time recognised Tibet as the Tibet Region of China. Other Important Articles Covering the same topic: 📍India reaffirms religious neutrality after China objects to Dalai Lama remarks 📍Why the Dalai Lama's 90th birthday this week matters for Tibetans, and beyond UPSC Prelims Question Covering similar theme: (3) With reference to 'Five Principles of Peaceful Coexistence', consider the following statements: 1. It is a foreign policy concept that was first articulated in an agreement betweem India and China in 1954. 2. The agreement aimed to enhance trade and cooperation between the two countries, listed important religious pilgrimages and India for the first time recognised Tibet as the Tibet Region of China. Which of the statements given above is/are are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 (4) 'Belt and Road Initiative' is sometimes mentioned in the news in the context of the affairs of (UPSC CSE 2016) (a) African Union (b) Brazil (c) European Union (d) China Previous year UPSC Mains Question Covering similar theme: 'China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia', In the light of this statement, discuss its impact on India as her neighbor. (UPSC CSE 2017) Syllabus: Preliminary Examination: World Geography Mains Examination: General Studies-I: Important Geophysical phenomena such as earthquakes, Tsunami, Volcanic activity, cyclones. What's the ongoing story: Japan's government on Saturday warned of more possible strong earthquakes in waters southwest of its main islands, but urged the public not to believe unfounded manga comic-book predictions of a major disaster. Key Points to Ponder: • Read about the earthquakes. • How are earthquakes measured? • How movements of sections of the Earth's crust release the energy that we experience as earthquakes? • What are the most earthquake-prone zones of the world? (Thought process: Read about the circum-Pacific seismic belt, Alpide earthquake belt (mid Continental belt), and submerged mid-Atlantic Ridge.) • What are the effects of earthquakes? • What are the earthquake zones in India, and what measures have been taken by the government concerning the natural disaster? • Read about the Pacific Ring of Fire. Key Takeaways: • Authorities on Friday evacuated some residents from remote islands close to the epicentre of a 5.5-magnitude quake off the tip of the southernmost main island of Kyushu. • That quake on Thursday, strong enough to make standing difficult, was one of more than 1,000 tremors in the islands of Kagoshima prefecture in the past two weeks that have fuelled rumours stemming from a comic book prediction that a major disaster would befall the country this month. Do You Know: • An earthquake is an intense shaking of the ground caused by movement under the earth's surface. It happens when two blocks of the earth suddenly slip past one another, according to USGS. This releases stored-up 'elastic strain' energy in the form of seismic waves, which spreads through the earth and cause the shaking of the ground. • The earth's outermost surface, crust, is fragmented into tectonic plates. The edges of the plates are called plate boundaries, which are made up of faults. The tectonic plates constantly move at a slow pace, sliding past one another and bumping into each other. As the edges of the plates are quite rough, they get stuck with one another while the rest of the plate keeps moving. Earthquake occurs when the plate has moved far enough and the edges unstick on one of the faults. • The location below the earth's surface where the earthquake starts is called the hypocenter, and the location directly above it on the surface of the earth is called the epicentre. Why is Japan prone to earthquakes and tsunamis? • That's because of its location. Japan is situated along the 'Pacific Ring of Fire', which is the most active earthquake tectonic belt in the world. The 'ring' refers to 'an imaginary horseshoe-shaped zone that follows the rim of the Pacific Ocean, where many of the world's earthquakes and volcanic eruptions occur,' according to a report by Live Science. • Within the Ring of Fire, there are different tectonic belts, including the Pacific Plate, Eurasian Plate, and Indo-Australian Plate, which keep meshing and colliding with each other, causing earthquakes, volcanic eruptions and tsunamis. Other Important Articles Covering the same topic: 📍Explained: Understanding the earthquake Previous year UPSC Prelims Question Covering similar theme: (5) Consider the following: (UPSC CSE 2013) 1. Electromagnetic radiation 2. Geothermal energy 3. Gravitational force 4. Plate movements 5. Rotation of the earth 6. Revolution of the earth Which of the above are responsible for bringing dynamic changes on the surface of the earth? (a) 1, 2, 3 and 4 only (b) 1, 3, 5 and 6 only (c) 2, 4, 5 and 6 only (d) 1, 2, 3, 4, 5 and 6 Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies-II: Effect of policies and politics of developed and developing countries on India's interests, Indian diaspora. What's the ongoing story: US President Donald Trump has signed the Congress-approved 'One Big Beautiful Bill' Act (OBBBA), which marks a sharp break from his predecessor Joe Biden's Inflation Reduction Act (IRA) that drove billions into clean energy investments – from solar and wind to electric vehicles (EVs). Instead, the OBBBA accelerates the phaseout of federal incentives for these clean technologies, slashes royalty rates for domestic fossil fuel drilling, and expands oil and gas leasing through new provisions. Key Points to Ponder: • What is the 'One Big Beautiful Bill' Act (OBBBA)? • What are the key provisions of the OBBBA? • What are the concerns associated with OBBBA? • What might be the geopolitical implications of OBBBA on the global clean energy race? • What can be the long-term economic and environmental consequences of OBBBA? • Compare the energy strategies of the United States and China. Key Takeaways: • The US House of Representatives passed the bill on July 3 without altering the Senate-approved version received earlier this week. While the final text modestly tones down the House's more aggressive cuts in support for hydrogen production and batteries, it still rolls back key benefits for solar and wind energy, as well as for both commercial and passenger EVs. • Experts warn the legislation could drive up household energy bills over the next decade, slow the deployment of clean technologies on the US power grid, and – most importantly – cement China's dominance in the global clean energy race. • The oil and gas industry – long a key backer of Trump's presidential campaigns – welcomed the OBBBA's push to expand fossil fuel production. But critics argue that US shale remains costlier than renewables, and that leaning on fossil fuels to meet rising electricity demand is both economically and practically unviable. • The final OBBBA text, while broadly scaling back clean energy support, is still less severe than the House version originally sent to the Senate. It gives clean hydrogen projects until end-2027 to qualify for tax credits – two years more than earlier proposed – and retains incentives for carbon capture, nuclear power, and clean fuels. Energy storage systems tied to solar or wind can also access full investment benefits through 2032, avoiding a sharper phaseout of benefits. • Across the Pacific, China has ramped up thermal power to meet rising industrial demand – but a steady pivot to clean technologies remains central to its energy strategy. For instance, in 2024, while it started construction to add around 100 GW of coal power capacity, it added a whopping 420 GW of solar and wind. In comparison, the US added less than 55 GW in 2024, according to the International Energy Agency (IEA). Other Important Articles Covering the same topic: 📍This Word Means: Big, Beautiful Bill Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies- II, III: Effect of policies and politics of developed and developing countries on India's interests, Indian Economy, Effects of liberalisation on the economy What's the ongoing story: India's decision to reserve its rights to impose retaliatory duties on the US over imposition of tariffs on auto parts is a procedural move under the WTO agreement on safeguards and it will not affect ongoing negotiations on the proposed trade pact between the two countries, an official said. Key Points to Ponder: • Read about the World Trade Organisation (WTO). • What is the WTO Agreement on Safeguards? • What are 'retaliatory tariffs'? • How does India's decision to reserve retaliatory duties against the US reflect the mechanism under the Agreement on Safeguards? • What is the role of multilateral trade institutions like the WTO in addressing protectionist policies of major economies? • Analyse the effectiveness of the WTO's dispute settlement mechanism in ensuring fair trade practices among member countries. • What is the history of India-US relations? • What are the areas of cooperation between India and the US? • What are the key developments in India-US relations in the various sectors? • What are the challenges and opportunities in finalising a bilateral trade agreement (BTA) between India and the US? Key Takeaways: • India on Friday proposed imposing retaliatory duties under the WTO (World Trade Organisation) norms against the US over American tariffs on imports of the country's auto parts in the name of safeguard measures. • The proposed suspension of concessions or other obligations would take the form of an increase in tariffs on selected products originating in the US, according to a notification of the WTO being circulated at the request of India. • The two countries have aimed to conclude the first phase of the BTA by fall (September-October) this year. The agreement is aimed at more than doubling bilateral trade to USD 500 billion by 2030 from the current USD 191 billion. • Both India and the US are signatories to the Agreement on Safeguard at the WTO which empowers a WTO Member to suspend its tariff concessions to another member who introduces safeguard measures on its imports. • On 26 March 2025, the US announced a 25 per cent ad valorem tariff on the import of automobiles and on certain automobile parts, including, from India under Section 232 of the Trade Expansion Act, 1974. • 'India treated it as a safeguard measure and gave a notice for consultation under the WTO agreement earlier. Now, as per the provisions of that agreement, after completion of 30 days period for consultation, as a next step, India has notified that it is reserving its right to suspend concession on equivalent US exports to India as a response to enhanced tariff of 25 per cent imposed by the US on Indian exports of auto components,' the official said. Do You Know: From Front Page- 'Amid India deal impasse, Trump signs tariff letters for 12 nations' • With no word still on whether his administration will sign an interim trade deal with India before the reciprocal tariff pause runs out July 9, President Donald Trump has said the US has begun the process of informing countries about the reciprocal tariffs they must pay, and that he has already signed 12 letters scheduled to be dispatched Monday. • Trump, however, stated that the reciprocal tariffs would come into effect August 1, indicating a potential extended window for negotiations with countries, including possibly India, which have not struck a deal with the US before the July 9 deadline. The US had originally announced a 26 per cent reciprocal tariff on India. Other Important Articles Covering the same topic: 📍UPSC Issue at a Glance | From Trump's reciprocal tariffs announcement to 90-day pause: Everything in between UPSC Prelims Practice Question Covering similar theme: (6) Consider the following statements: 1. Tariffs are taxes or duties imposed by a government on imported goods and services. 2. Objective of tariffs is to make foreign products more expensive compared to domestically produced goods Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – Indian Express UPSC Hub, and follow us on Instagram and X. 🚨 Click Here to read the UPSC Essentials magazine for June 2025. Share your views and suggestions in the comment box or at Roshni Yadav is a Deputy Copy Editor with The Indian Express. She is an alumna of the University of Delhi and Jawaharlal Nehru University, where she pursued her graduation and post-graduation in Political Science. She has over five years of work experience in ed-tech and media. At The Indian Express, she writes for the UPSC section. Her interests lie in national and international affairs, governance, economy, and social issues. You can contact her via email: ... Read More
