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Hindustan Times
4 days ago
- Business
- Hindustan Times
Govt eyes steps to help India Inc tide over levies
The government is exploring a slew of short-term and long-term measures to help Indian industry tide over the fallout of the 50% tariffs on goods sent to the US—one of the few countries with which India runs up a massive trade surplus, people aware of discussions said. The steps come even as officials in New Delhi maintained regular technical engagement with counterparts in Washington (AFP) The strategy includes steps to promote exports, divert trade, and create domestic demand by substituting items that are imported, these people added, describing the decision-making following recent engagements between the government and producers and exporters. The steps come even as officials in New Delhi maintained regular technical engagement with counterparts in Washington. The turbulence in the ties, however, is largely political: Trump has hit out at India, first slamming it for having levies that are 'among the highest in the world' and announcing a 25% rate on Indian exports on July 31. Then, on August 7, he issued an executive order slapping another 25%, citing India's purchase of Russian oil that, Washington has claimed, helps fund the war in Ukraine. 'As sovereigns, India and the US can have a mutually beneficial trade deal. But President Donald Trump's unilateral decisions to impose punitive tariffs when talks are ongoing are unwarranted and counterproductive,' one person said, adding that both sides remain engaged to find amicable solutions. This echoes India's stated position. Ministry of external affairs spokesperson Randhir Jaiswal called the tariffs 'unfair, unjustified and unreasonable' on Thursday while vowing that India would 'take all necessary measures to safeguard its national interests and economic security.' Bilateral trade negotiations between India and the US are progressing well 'as on date' but nothing is certain given the unpredictable nature of the US leadership, the person quoted above added. On one of the key contentious issues—oil from Russia—the people added that India will continue purchasing crude oil from countries of its choice, including Russia and 38 other nations, irrespective of the Trump administration's 'unjustified move'. However, commercial dynamics are already reshaping India's energy sourcing patterns. Public sector refiners have scaled down purchases of Russian crude in recent months for commercial reasons, as discounts on Russian oil have narrowed significantly. According to two people with direct knowledge, refiners often buy Russian crude from the spot market depending on discounts. 'They determine the quantum of purchase as per their commercial judgement and the government has not asked them to curtail purchase of crude oil from any particular country,' one person said. 'Similarly, private refiners are free to purchase crude from any country,' he added, noting their decisions also depend on available discounts. A report by rating agency ICRA shows Russia accounted for approximately 35% of India's crude imports in FY2025. The monthly average imputed price of crude petroleum imports from Russia was about 13% and 14% lower than West Asian supplies in FY2023 and FY2024 respectively, leading to savings of $5.1 billion in FY2023 and $8.2 billion in FY2024. 'However, the extent of discount narrowed sharply to around 7% in FY2025, reducing the savings to $3.8 billion. Given the narrowing of discounts on Russian crude since FY2025, coupled with sanctions by the EU and the US, it appears increasingly unlikely that such imports from Russia will benefit India materially going forward,' ICRA said. State-run Indian Oil Corporation, Hindustan Petroleum Corporation, Bharat Petroleum Corporation and the petroleum ministry did not respond to email queries on the matter. Companies typically do not reveal the quantity and value of crude purchases from individual countries. Government departments and industry are holding consultations to assess the impact of US tariff action and identify solutions, according to a third person involved in such meetings. Out of approximately $86 billion in exports to the US, about 40% comprises non-price sensitive items such as basmati rice and Indian jewellery that would not be significantly affected. However, sectors including textiles and chemicals face substantial impact. News agency Reuters quoted the managing director of Pearl Global, whose US client list includes Gap and Kohl's, as saying that the company has begun receiving panic calls with an ultimatum for it to share the tariff hit or move production out of India. 'All the customers are already calling me. They want us to ... shift from India to the other countries,' Pallab Banerjee told Reuters. To calm US customers' nerves, the company has offered to shift production to its 17 factories in Bangladesh, Indonesia, Vietnam and Guatemala to bypass the steep US levies on Indian imports. Trump's initial tariff proposals in April were lower for India than for the rival Asian garment hubs of Bangladesh, Vietnam and China. But the tables have turned as relations between New Delhi and Washington have soured, with India now facing a 50% tariff, versus 20% for Bangladesh and Vietnam, and 30% for China. India exports textiles worth $11 billion to the US, representing about 9% of total Indian merchandise exports to America. The government is considering sector-specific demands from domestic manufacturing, including extension of existing export promotion schemes, introduction of new schemes, ease of compliances and trade diversification. 'We can intensify our efforts to explore new markets so that US-bound goods can be diverted to other countries,' the third person said, adding: 'Major economies of the world are eager to have free trade agreements with India because of its domestic market'. A third option is to harness domestic demand. 'We already have a large market with aspiring middle-class consumers. We must now harness our own strength to boost our manufacturing, thus substituting imports by encouraging domestic production.' The multi-pronged approach reflects India's determination to maintain strategic autonomy in energy procurement whilst exploring alternative markets and strengthening domestic manufacturing capabilities to reduce dependence on the US market. The strategy acknowledges that while immediate disruption from tariffs is inevitable, India's large domestic market and growing middle class provide leverage for long-term economic restructuring that could ultimately reduce vulnerability to external trade pressures.
Time of India
5 days ago
- Business
- Time of India
Donald Trump's 25% additional tariff on India: Anand Mahindra cites ‘law of unintended consequences'; says global ‘Manthan' can yield ‘Amrit' for India
As India braces for a fresh round of tariffs imposed by the United States, Mahindra Group chairman Anand Mahindra urged the country to turn the crisis into a powerful opportunity by implementing bold economic reforms. On Wednesday, US President Donald Trump signed an executive order to impose an additional 25% tariff on Indian imports, citing India's continued oil trade with Russia. The White House said these imports posed an 'unusual and extraordinary threat' to the US, justifying the move on grounds of national security and foreign policy. Once implemented, the total tariff burden on Indian goods entering the US will reach 50%, effective 21 days later. The Ministry of external affairs (MEA) called the move 'unfair, unjustified and unreasonable.' In a statement, it said, 'The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Earn Upto 5k Daily By This Method of Intraday Trading TradeWise Learn More Undo ' Amid this growing trade tension, Anand Mahindra posted a detailed message on social media platform X, pointing to what he called the "law of unintended consequences" and urged India to shape its own positive outcomes, as other nations like those in the EU and Canada have done during periods of global friction. "The 'law of unintended consequences' seems to be operating stealthily in the prevailing tariff war unleashed by the US," he wrote. Drawing parallels with India's transformative 1991 economic reforms, he suggested that this moment could become equally significant if the right steps are taken. He proposed two major actions: radically improving ease of doing business and unlocking the potential of tourism as a foreign exchange booster. Here are the two strong steps that India should take today: Improving the ease of doing business Mahindra stressed that India needs to move beyond small, gradual reforms and build a truly efficient single-window clearance system for all investment proposals. He pointed out that while many regulatory powers lie with individual states, a group of cooperative states could come together to launch a unified national platform. 'If we demonstrate speed, simplicity, and predictability, we can make India an irresistible destination for global capital in a world seeking trusted partners,' his post said. Unleashing the power of tourism as a foreign exchange engine Mahindra described tourism as one of India's most underused sources of foreign exchange and job creation. He called for a major push to speed up visa processing, improve tourist services, and develop dedicated tourism corridors around popular destinations, with guaranteed safety, cleanliness, and hygiene. 'These corridors can serve as models of excellence, encouraging other regions to emulate and raise national standards.' "And a broader action agenda to build on these pillars: Liquidity & Support for MSMEs; Infrastructure Investment acceleration; A Manufacturing Push, via enhancement and expansion of the scope of PLI schemes; Rationalise import duties so that duty on manufacturing inputs are lowered and assist in improving our competitiveness," he stated. Ending his post with a call for self-reliance, Mahindra wrote, "Let the unintended consequences we create be the most intentional and transformative ones of all. We cannot fault others for putting their nations first. But we should be moved to make our own nation greater than ever." As tensions simmer between Washington and New Delhi, the coming weeks may prove critical in determining whether India can transform this pressure into progress. Stay informed with the latest business news, updates on bank holidays and public holidays .
Hindustan Times
03-08-2025
- Business
- Hindustan Times
Despite Trump statements, Russia oil buys seen still on
New York/Washington : US President Donald Trump claimed on Saturday he had heard India would no longer purchase Russian oil, calling it a 'good step', days after opening an unexpected salvo at New Delhi for its close trade and military ties with Moscow. US President Donald Trump(REUTERS) 'Well, I understand India no longer is going to be buying oil from Russia. That's what I heard. I don't know if that's right or not, but that's a good step. We'll see what happens,' Trump told reporters on Friday. His remarks bear significance due to his threats of punitive measures against nations that purchase oil from Russia, which is seen as being crucial to Moscow's war on Ukraine. However, new reports on Saturday cited senior Indian officials as saying there had been no change in policy, with one stating the government had 'not given any direction to oil companies' to cut back imports from Russia. India has become one of Russia's largest oil customers since Western sanctions drove down prices, helping Moscow maintain crucial export revenues whilst providing New Delhi with cheaper energy to fuel its growing economy. Earlier in the week, Trump formalised 25% tariffs on Indian exports through an executive order covering around 70 nations, though the document notably omitted the additional 'penalty' he had previously threatened over India's Russian energy purchases – a measure that America could still take. Ministry of external affairs spokesperson Randhir Jaiswal, when asked at Friday's weekly briefing about reports claiming Indian oil companies had stopped buying Russian oil, said: 'As far as sourcing India's energy requirements is concerned, we take decisions based on the price at which oil is available in the international market and depending on the global situation at that time.' The US president has repeatedly criticised India's energy ties with Russia whilst announcing punitive trade measures. Declaring a 'massive trade deficit with India,' Trump argued that while 'India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world.' He described India as having 'the most strenuous and obnoxious non-monetary Trade Barriers of any country,' while noting that 'they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine.' New reports on Saturday stated India will keep purchasing oil from Russia despite Trump's threats of penalties. Two Indian government sources told Reuters on Saturday, not wishing to be identified, that: 'These are long-term oil contracts. It is not so simple to just stop buying overnight.' Russia is the leading supplier to India, the world's third-largest oil importer and consumer, accounting for about 35% of its overall supplies. India imported about 1.75 million barrels per day of Russian oil from January to June this year, up 1% from a year ago, according to data provided to Reuters by sources. Justifying India's oil purchases, a second government source said India's imports of Russian grades had helped avoid a global surge in oil prices, which have remained subdued despite Western curbs on the Russian oil sector. Unlike Iranian and Venezuelan oil, Russian crude is not subject to direct sanctions, and India is buying it below the current price cap fixed by the European Union, the source said. However, sources told Reuters this week that Indian state refiners stopped buying Russian oil after July discounts narrowed to their lowest since 2022—when sanctions were first imposed on Moscow—due to lower Russian exports and steady demand. Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd have not sought Russian crude in the past week or so, four sources told Reuters.
Time of India
13-07-2025
- Politics
- Time of India
'Shooting oneself in foot': Ahead of Jaishankar's visit, Beijing says Tibet issue 'thorn' in India-China ties; claims Dalai Lama issue 'internal matter'
S Jaishankar, Dalai Lama, and Chinese Foreign Minister Wang Yi (left to right) NEW DELHI: The issue of the Dalai Lama's succession is a thorn in China-India relations, the Chinese embassy in New Delhi said on Sunday. The statement comes days before external affairs minister S Jaishankar is scheduled to visit China for the first time since the 2020 border clashes. Ahead of the Tibetan spiritual leader's 90th birthday celebrations this month, the Dalai Lama said China has no role in deciding his successor. Tibetans believe that the soul of a senior monk is reborn after death, but China insists its leaders must approve the succession. Yu Jing, spokesperson for the Chinese embassy, posted on X that "some people from strategic and academic communities in India" had made, what she called "improper remarks" on the Dalai Lama's reincarnation. She did not name anyone. "As professionals in foreign affairs, they should be fully cognizant of the sensitivity of issues related to Xizang," Yu said, using the Chinese term for Tibet . "The reincarnation and succession of the Dalai Lama is inherently an internal affair of China," she added. "(The) Xizang-related issue is a thorn in China-India relations and has become a burden for India. Playing the 'Xizang card' will definitely end up shooting oneself in the foot." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like If you have a mouse, play this game for 1 minute Navy Quest Undo Minister of parliamentary and minority affairs Kiren Rijiju, who sat next to the Dalai Lama during the birthday event, said, "The Dalai Lama is a defining spiritual leader for Buddhists,' adding, 'The decision about his reincarnation should follow tradition and be made by him alone. No one else has the right.' Ministry of external affairs, in a statement on July 4, said that New Delhi "does not take any position or speak on matters concerning beliefs and practices of faith and religion." Jaishankar is expected to travel to Tianjin on July 15 to attend the Shanghai Cooperation Organisation Foreign Ministers' meeting and will also hold bilateral talks on the sidelines. The visit comes at a time when both countries are trying to ease tensions and improve ties that plummeted following the deadly Galwan Valley clashes in 2020.
Time of India
21-06-2025
- Politics
- Time of India
Operation Sindhu: 570 Indians evacuated so far from war-torn Iran; MEA leading coordinated rescue effort
Indian nationals come back from Iran (Image credits: ANI) NEW DELHI: Ministry of external affairs official spokesperson Randhir Jaiswal said Saturday that so far 517 Indian nationals have returned to India from Iran under the initiative 'Operation Sindhu. ' In a post on X, Jaiswal confirmed that a special flight from Turkmenistan's Ashgabat arrived in New Delhi early in the morning. "Operation Sindhu continues. A special evacuation flight from Ashgabat, Turkmenistan, landed in New Delhi at 0300 hrs on 21st June, bringing Indians from Iran home. With this, so far 517 Indian nationals from Iran have returned home under Operation Sindhu," the post read. — MEAIndia (@MEAIndia) As tensions between Israel and Iran continue to escalate, more Indian citizens are being brought back home under Operation Sindhu, with the Indian Embassy in Tehran and the Ministry of External Affairs (MEA) coordinating efforts on the ground. Deputy chief of mission at the Iranian Embassy, Mohammad Javad Hosseini, confirmed Tehran's full cooperation with Indian authorities for the safe evacuation of Indian nationals. He added that more flights can be arranged if required, with the ongoing operations being carried out by Iranian carrier Mahan Air. Also read: Iran lifts airspace ban to evacuate 1,000 Indians amid conflict; 3 planes flying out with rescued citizens "We are arranging for the safe passage of Indians who want to leave via air or via road through third countries, or directly from Iran," he said, reaffirming Iran's support in facilitating the evacuation. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like What She Did Mid-Air Left Passengers Speechless medalmerit Learn More Undo Zaffar Abbas Naqvi, one of the evacuees, described the escalating situation in Iran, saying his family initially stayed indoors after hearing about the Israeli airstrike, but later fled to Mashhad, which too came under attack. 'We then moved to Mashhad. Soon Mashhad came under attack. We then contacted the Indian government. The action was so swift that we cannot express our gratitude in words. I want to thank Modi ji and Yogi ji who made all the arrangements for us...," The first batch of 110 Indian students, including 90 from Kashmir and mostly from Urmia Medical University, were earlier evacuated from northern Iran to Armenia before being flown to Delhi. The conflict, now in its ninth day, began on June 13 with Israel's massive airstrike on Iranian military and nuclear facilities, known as 'Operation Rising Lion.' In retaliation, Iran's Islamic revolutionary guard corps (IRGC) launched 'Operation True Promise 3', targeting Israeli fuel and energy infrastructure.
