From ₹20,000 cr plan to BRICS talks: India's possible options and risks in Trump's tariff stand-off
Here's how India is weighing its options.
Productivity Tool
Zero to Hero in Microsoft Excel: Complete Excel guide
By Metla Sudha Sekhar
View Program
Finance
Introduction to Technical Analysis & Candlestick Theory
By Dinesh Nagpal
View Program
Finance
Financial Literacy i e Lets Crack the Billionaire Code
By CA Rahul Gupta
View Program
Digital Marketing
Digital Marketing Masterclass by Neil Patel
By Neil Patel
View Program
Finance
Technical Analysis Demystified- A Complete Guide to Trading
By Kunal Patel
View Program
Productivity Tool
Excel Essentials to Expert: Your Complete Guide
By Study at home
View Program
Artificial Intelligence
AI For Business Professionals Batch 2
By Ansh Mehra
View Program
₹20,000 crore export promotion mission
The Indian government is gearing up to launch a ₹20,000 crore export promotion mission to shield exporters from global trade uncertainties. The initiative, expected to be finalised by August and rolled out by September, is being jointly developed by the ministries of commerce and industry, MSME, and finance.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
No annual fees for life
UnionBank Credit Card
Apply Now
Undo
According to ET Rise sources, the mission will focus on five key areas: trade finance, non-trade finance (including regulations, standards, and market access), improving global recognition of Brand India, creating e-commerce hubs and warehousing, and streamlining trade facilitation.
Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO), said the mission, first announced in this year's Union Budget, aims to boost access to export credit. 'From that perspective, there may be some softening of collateral on one hand; there may also be an element of the Interest Equalisation Scheme,' he explained.
Live Events
Push for fresh US-India talks
India was once seen as a frontrunner for a trade deal with Trump's administration, but negotiations broke down after five rounds due to differences over access to India's farm and dairy sectors and its continued purchase of Russian oil.
India has strongly opposed the proposed 50% tariff hike. Still, as per Reuters officials remain hopeful that behind-the-scenes discussions will ease tensions. A US trade delegation is expected in New Delhi later this month.
Prime Minister Narendra Modi, without directly referring to the tariffs, said on Thursday he was willing to 'pay a heavy price' to protect the interests of India's farmers, dairy sector and fishermen.
However, as per Reuters report, Indian officials signaled they were open to lowering tariffs on some US agricultural and dairy imports, such as almonds and cheese.
Reduce reliance on Russian oil
India, the world's third-largest oil importer, had minimal Russian oil exposure before the Ukraine war but now sources over a third of its crude from Russia.
Reuters reported that Indian state refiners, including
Indian Oil
,
Hindustan Petroleum
,
Bharat Petroleum
, and
Mangalore Refinery
, recently paused Russian oil purchases due to shrinking discounts and increasing pressure from Trump.
Officials warn that exiting Russian oil altogether could trigger global price spikes. India also buys crude under flexible deals from Iraq, Saudi Arabia, the UAE, and around 40 other countries, including the US.
Align with BRICS nations
Alongside India, Brazil is another key target of Trump's tariff actions. Both nations are part of the BRICS bloc, along with China, Russia, and South Africa.
Brazilian President Luiz Inacio Lula da Silva, who currently leads BRICS, told Reuters he would call Modi, China's Xi Jinping, and other leaders to discuss a unified response.
An Indian government source told Reuters that India should work to rebuild its US relationship gradually while strengthening ties with other nations hit by US tariffs and aid cuts, including BRICS and the African Union.
India is already stepping up diplomacy with Russia and China. Its national security adviser is currently in Moscow ahead of President Vladimir Putin's expected visit to New Delhi this year. India's foreign minister is also due to visit.
On Tuesday, Russia said both nations discussed expanding defence cooperation under their 'privileged strategic partnership.'
Meanwhile, India is also re-engaging with China after years of tension following a 2020 border clash. PM Modi is also scheduled to attend a regional summit in China soon, his first visit since 2018, where he may meet Putin and Xi.
What if India-US talks fail?
India exported goods worth around $87 billion to the U.S. in FY25, including textiles, pharmaceuticals, gems, jewellery, and petrochemicals , contributing roughly 2% of India's GDP.
If the proposed 50% tariff hike is implemented, pharmaceutical exports, which fall under a separate duty regime, could be the only major category to survive.
The fallout could extend beyond trade. Analysts warn that friction may impact work visas for Indian tech professionals and offshoring deals. India has long relied on US visa programs and IT outsourcing, a sensitive issue in the U.S. due to domestic job losses.
With inputs from Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
11 minutes ago
- First Post
India bids goodbye to Registered Post: When India used pigeons to send mail
India Post announced that it will merge its 50-year-old Registered Post service with modern speed post. As the curtains slowly draw on one of the most iconic services of Indian postal history, it's worth pausing for a moment to reflect on what we're leaving behind read more From September 1, 2025, Resgistered Post, a 50-year-old service, once valued for its reliability, affordability, and legal weight among office-goers, will be officially discontinued. AI-generated Image for Representation When was the last time you wrote a letter? Some of us can faintly recall writing one, maybe a postcard mailed on a holiday or a letter to a distant cousin. For Gen Z, licking a stamp and sealing an envelope may be something they've only seen in movies. It's 2025, a world ruled by WhatsApp messages and endless email threads, so it's no surprise that the art, and even the need, for handwritten letters has quietly faded into nostalgia. Yet, there was a time when letters carried emotions across cities, when the wait for a postman was filled with anticipation. STORY CONTINUES BELOW THIS AD But that era is sadly drawing to a close. Earlier this week, India Post said it would merge the 50-year-old Registered Post service, once valued for its reliability, affordability, and legal weight among office-goers, with the faster and more modern Speed Post service. An Indian postwoman wearing her new blue saree uniform empties a post box in New Delhi, 01 October image/AFP As the curtains slowly draw on one of the most iconic services of Indian postal history, it's worth pausing for a moment to reflect on what we're leaving behind and the rich legacy it has been carrying for centuries. Pigeons, horses & more: A look at India's ancient postal system Long before the British set up a structured postal system, ancient India had its own creative ways of staying connected. Messages were sent through runners, horse riders, and even pigeons. One of the earliest known postal systems can be traced back to the Mauryan Empire, during Emperor Chandragupta Maurya's reign (circa 321–297 BCE). Historical accounts suggest messages were often sent through pigeons, who became a trusted network of communication across the vast empire. Amazingly, this pigeon post system remained in use for centuries. In fact, in April 1948, then Prime Minister Jawaharlal Nehru used a pigeon to send a message from Sambalpur to Cuttack regarding arrangements for a public meeting. The service continued until as late as March 2008, when Odisha officially retired its last pigeon post. The pigeon post system remained in use for centuries. Police in India's Odisha are preserving a flock of carrier pigeons for use when disasters sever communication links. File image/Reuters But pigeons weren't the only messengers. India's ancient postal network evolved significantly under the Delhi Sultanate. Around 1296, Alauddin Khilji introduced a structured system using a combination of relay runners and horses, according to records from India Post. The Mughal emperor Akbar is credited with refining this further. He set up what was called a 'dak chauki '— dak meaning 'post' and chauki referring to relay stations placed every 11 miles. Each station had runners or riders who would pass on state messages in a relay. You could even call it a very early version of express delivery. STORY CONTINUES BELOW THIS AD The runners, known as meorahs, were celebrated for their astonishing endurance. According to 16th-century Portuguese writer Antoni de Montserrat, some were even believed to have had their liver removed in infancy to help them run long distances without getting breathless. Dak Chowki of Sher Shah Suri's period. Image courtesy: Wikimedia Commons Interestingly, despite the scale and organisation, these early postal services weren't meant for the public. They primarily carried official dispatches, used by kings, emperors, and administrators to maintain control over distant provinces. The British Empire's postal revolution To consolidate its hold over the Indian subcontinent, the British East India Company did more than fight battles — it built systems of control. And at the heart of that control was communication. In the 17th and 18th centuries, the Company developed its own postal system known as 'Company Mail' across its territories. The first regular postal service started in Calcutta (now Kolkata) in 1766 under Lord Clive, then Governor of Bengal. By 1774, the city had a General Post Office that charged two annas per 100 miles. Similar offices opened in Madras and Bombay in 1786. STORY CONTINUES BELOW THIS AD Under Warren Hastings, who succeeded Clive as Governor-General of India, the postal setup in Bengal became more structured. A Postmaster-General was appointed, and postage charges were introduced for private letters. By 1789, the East India Company had a network of daks (postal runners)— or dauriyas — connecting administrative homes to key towns. A postman leaving his office to deliver posts in Amritsar on Tuesday. File image/ PTI These dak runners, who often came from marginalised caste groups and ran for miles through forests and rivers to deliver letters, According to an Indian Express report citing a study Dak Roads, Dak Runners, and the Reordering of Communication Networks of historian Chitra Joshi, writes that these runners were not only 'loyal but remarkably efficient', navigating difficult terrain and even braving tigers, as noted in official records. A major transformation came in 1854 under Governor-General Lord Dalhousie, who introduced uniform postage rates and helped pass the India Post Office Act. This laid the foundation of India's national postal service, officially launched on October 1, 1854. STORY CONTINUES BELOW THIS AD By the early 20th century, India's postal system had become a cornerstone of communication and efficiency. Before independence, there were around 23,000 post offices. But in the decades that followed, the network grew at an incredible pace, reaching nearly 1.5 lakh post offices by 1978. Workers of India Post deliver parcels through Shikara postal service at Dal lake in Srinagar on October 12, 2022. File image/AFP Bollywood's love affair with letters As the postal system expanded, every town, village, and mohalla had its own postman, whose arrival was often awaited with the same anticipation as a festival. This emotional connection was also reflected in Indian pop culture. Songs like 'Dakiya Dak Laya' from the 1977 film Palkon Ki Chhaon Mein romanticised the postman's role in village life. Some were even as heart-wrenching as the one in Border (1997), where the postman delivers a letter to a soldier's family, the very 'chitthi' that confirmed his death. The song 'Sandese Aate Hain' from the same film became an anthem for longing and love, echoing the emotions of families waiting to hear from loved ones at the frontlines. 'Chitthi Aayi Hai' from the film Naam (1986) also captured the ache of homesickness. STORY CONTINUES BELOW THIS AD The song Even Irrfan Khan's popular movie The Lunchbox (2013), rekindled that nostalgia of handwritten letters and missed connections. Beyond cinema, philately, the collection of postal stamps, became a popular hobby in Indian households. India Post even capitalised on this with special edition stamps marking historic events, freedom fighters, festivals, and even cinematic milestones. A stamp of India Post featuring Rajesh Khanna in 2013. Image courtesy: Wikimedia Commons Old letters, new challenges Today, India Post operates as a commercial arm of the Indian government, with over 160,000 post offices, more than 130,000 of which are located in rural India. With a workforce of around 600,000, it is the country's third-largest employer, after the armed forces and the railways. Despite being one of India's oldest institutions, the postal department is far from obsolete. As The Indian Express cited economist V Ranganathan from his Challenges in Reform of the Indian Postal Service, India Post continues to provide vital 'last-mile connectivity' and access to basic services, especially in remote and underserved regions. An Indian man (R) dictates to a letter writer sitting on a pavement outside the general post office in the eastern Indian city of Kolkata. File image/ Reuters 'India Post had been the earliest adopter of technology and infrastructure changes,' Ranganathan wrote. 'During the British period, it used the train extensively when it was introduced; when the airplane was introduced, again it was the first.' STORY CONTINUES BELOW THIS AD However, in recent decades, the service has been squeezed between rapid digitalisation and fierce competition from private logistics players. According to official data, the number of registered items dropped by nearly 25 per cent, from 244.4 million in 2011–12 to 184.6 million in 2019–20. Yet, even in the face of declining volumes and changing habits, the iconic red postbox remains as a relic of a time when communication had heart, purpose and patience. With input from agencies
India.com
11 minutes ago
- India.com
Market Outlook: Tariff Tensions, Inflation Data Key Triggers Next Week
New Delhi: Investors should keep an eye on the developments around the US-India trade deal, quarterly earnings results, tariff rhetoric and inflation data in the upcoming trade week, analysts said on Sunday. Over 1,400 companies including from sectors such as metals, energy and pharmaceuticals are scheduled to report Q1 FY26 results next week, as quarterly earnings cycle comes to an end. Grasim Industries, Hero MotoCorp, India Lease Development, and other major companies are scheduled to release their quarterly earnings on August 11. On the macroeconomic front, investors are focused on domestic CPI and WPI inflation data, set to be released on August 12 and August 14. Last week, markets fell for the sixth straight week following US President Donald Trump's unexpected announcement of a 50 per cent tariff on Indian goods. The Nifty and Sensex fell by nearly one per cent, closing at 24,363 and 79,857, respectively. FII selling persisted during the week, indicating broader risk aversion in emerging markets. However, ongoing purchases by DIIs helped mitigate losses. Domestic resilience is shown by strong July GST collections and rising PMI readings. However, increasing input costs, inflation trends, and weaknesses in the banking and IT sectors may cap upside. Ajit Mishra from Religare Broking Ltd said, "The Nifty's close below 24,450 has increased the risk of further correction, with immediate support placed near 24,200. On the upside, resistance is expected around the 24,600–24,800 zone, with a stronger barrier at 25,200." "Broader market indices remain vulnerable given their higher beta to FII outflows. Any rebound is likely to be short-lived unless accompanied by easing trade tensions and a reversal in FII flows," he added. On the sectoral front, domestic demand-driven segments such as infrastructure, select autos, and rural-focused FMCG may display relative resilience if macro conditions hold steady. Investors may adopt a defensive-to-neutral stance, prioritising companies with strong domestic earnings visibility and low tariff exposure, while maintaining cash buffers for opportunities during deeper corrections, said analysts.
Deccan Herald
11 minutes ago
- Deccan Herald
Indian refiners can do without Russian oil, but with trade-offs
US President Donald Trump last week announced an additional 25 per cent tariff on US imports from India -- raising the overall duty to 50% -- as a penalty for the country's continued imports of Russian oil.
