Business

LIC Requests RBI to Introduce 100-Year Government Bonds

Published

7 months ago

March 18, 2025

Geetika Shrestha

Contents

Introduction to LIC’s Proposal

The Life Insurance Corporation of India (LIC) stands as a prominent entity in the Indian financial landscape, having played a pivotal role in the insurance sector since its inception in 1956. As one of the largest insurers in the country, LIC not only provides life insurance products but also significantly contributes to the mobilization of savings, making it a cornerstone of the Indian economy. Its presence has bolstered confidence among investors, making it an essential institution for long-term financial security.

Recently, LIC made a noteworthy request to the Reserve Bank of India (RBI) to consider the issuance of 100-year government bonds. This proposal comes at a crucial time as India shifts towards strategies that promote sustained economic growth and stability. The 100-year government bonds would represent a significant opportunity for investors seeking to align their portfolios with long-term financial goals. They would allow LIC and other institutional investors to secure substantial returns over an extended period while bolstering the government’s capacity to fund infrastructure projects and social initiatives.

The need for such long-term instruments is underscored by the rising demand from both individual and institutional investors who favor secure and predictable returns. By introducing 100-year government bonds, the RBI could provide a much-needed avenue for reliable, long-duration investments, thereby strengthening the stability of the financial market. This move is not only beneficial for LIC but would also reinforce the overall financial ecosystem in India, promoting sustainable economic development. Thus, the proposal for 100-year bonds aligns with LIC’s long-term investment strategies and enhances the potential for economic resilience in a rapidly evolving market.

Understanding Government Bonds

Government bonds are fixed-income securities issued by a government to finance its expenditures. These bonds are considered safe investments as they are backed by the government’s creditworthiness, making them appealing to various investors, including individuals and institutions. The primary function of government bonds is to raise funds for public projects without incurring debt in the traditional sense. Investors purchase these bonds, effectively lending money to the government in exchange for periodic interest payments and the return of the principal amount upon maturity.

In India, several types of government bonds are available. The most common forms include short-term treasury bills, intermediate bonds, and long-term securities, such as long-dated bonds. The introduction of long-term bonds, particularly 100-year bonds, has garnered attention in recent times. These bonds stand out by offering an exceptionally extended maturity period, compared to the conventional bonds usually maturing in 10, 20, or 30 years. This unique characteristic can provide investors with the possibility of securing stable returns over an extended horizon, potentially beneficial for addressing future financial needs.

Investing in government bonds has its advantages and disadvantages. On the positive side, they provide a fixed income and carry lower risk compared to equities. Additionally, they can serve as a safe haven during market volatility, ensuring the preservation of capital. However, the long-term nature of certain bonds, such as 100-year government bonds, comes with challenges. These include lower flexibility for investors, as funds are tied up for a more extended period. Furthermore, interest rate fluctuations can impact the market value of existing bonds, potentially affecting returns for investors needing to sell prior to maturity.

The Need for Long-Term Bonds

The landscape of the Indian financial market is evolving rapidly, with various stakeholders emphasizing the importance of long-term government bonds. Currently, the market is characterized by a myriad of short to medium-term investment options, but long-term bonds—specifically those with maturities of up to 100 years—are becoming increasingly essential for investors, particularly for institutions like the Life Insurance Corporation of India (LIC).

One of the driving forces behind the demand for such long-term government bonds is the persistently high inflation rates. In India, inflationary pressures have been compounded by various global and domestic factors, leading to uncertainty in returns for short-term investments. For insurers like LIC, whose liabilities stretch over decades, aligning asset duration with liability duration is imperative for effective risk management. Long-term bonds would provide a more predictable and stable return profile, which is crucial for fulfilling future policyholder obligations.

Furthermore, the introduction of 100-year government bonds can be beneficial to the Indian government as well. By locking in funds at a fixed rate for such an extended period, the government can secure long-term financing for infrastructure projects and developmental initiatives, thereby enhancing national growth. This alignment of government funding needs with the investment horizons of insurers can create a mutually beneficial relationship.

Additionally, long-term bonds can contribute to a more resilient financial ecosystem by providing stability amidst market fluctuations. In times of economic uncertainty, having long-duration instruments can cushion the impact on the overall investment portfolio of entities like LIC, allowing for better management of risks associated with interest rate volatility. Thus, long-term government bonds serve a critical role for both the government and institutional investors, supporting sustainability and growth in the financial market.

Potential Benefits for LIC and Policyholders

The introduction of 100-year government bonds presents various potential benefits for the Life Insurance Corporation of India (LIC) and its policyholders. Firstly, these long-term bonds would offer LIC a stable income source, which is paramount for meeting the future policy liabilities that arise from its extensive portfolio of insurance products. Given the nature of insurance, where premium receipts and claims can stretch over decades, such a financial instrument can provide the corporation with consistent cash flow, enabling them to better manage their obligations even amidst fluctuating economic conditions.

Moreover, the guaranteed nature of government bonds can significantly enhance the investment strategy of LIC. Currently, LIC allocates a considerable portion of its investment in government securities and bonds. Adding 100-year government bonds into their investment mix may allow the corporation to lock in returns over an extended period, while minimizing the risks associated with other volatile securities. This stability can also foster a healthier balance sheet, ultimately benefiting policyholders through improved financial health of the insurer.

From the policyholders’ standpoint, the introduction of these long-term bonds could lead to increased security of their investments. In essence, policyholders may have greater confidence that their premiums will be safeguarded and that the company will possess an ample financial buffer to fulfill claims. Furthermore, the potential for enhanced returns over the long horizon associated with these bonds may translate into better benefits for policyholders when claims are settled or policies mature. As these bonds are inherently low-risk due to governmental backing, they could reassure policyholders about the safety of their investments within LIC.

In summary, the recommendations surrounding 100-year government bonds could hold significant advantages for both LIC and its policyholders by ensuring stable income, improving the risk profile, and fostering long-term financial security.

Comparisons with Global Practices

The concept of long-term government bonds is not novel and has gained traction in several countries worldwide. Nations like the United States, Japan, and several European countries have issued bonds with maturities extending beyond 100 years, tapping into the advantages of long-term borrowing. These long-term instruments typically provide stable financing options for governments and offer investors the potential for steady returns over an extended period.

In the United States, for instance, the 30-year Treasury bond is a popular choice among investors, and its issuance allows the government to lock in low borrowing costs while benefiting from current economic conditions. These bonds serve as a benchmark for long-term interest rates and attract a variety of investors, including pension funds and insurance companies, that seek stable income over long durations. Japan shares a similar practice, having introduced 40-year bonds that are particularly appealing in a low-interest-rate environment, providing investors with security against inflation and market volatility.

Moreover, European nations such as Portugal and the Netherlands have also ventured into long-term bond issuances. Portugal’s 100-year bonds, issued in 2017, garnered significant attention and response from investors, demonstrating that there is a market for such instruments even in the current economic climate. The successful adoption of these long-term instruments in various countries indicates the potential benefits for governments, including the ability to fund large infrastructure projects and respond flexibly to economic challenges.

Adopting a similar strategy in India could enhance financial stability, given that the nation’s economy is at a transformative stage. Learning from international experiences could improve how long-term bonds are structured, ensuring they cater not only to the government’s financing needs but also align with investor interests. A carefully crafted approach could attract significant domestic and foreign investment, ultimately fortifying India’s financial landscape.

Challenges and Risks of 100-Year Bonds

The proposition to introduce 100-year government bonds, while innovative, is fraught with complexities and potential pitfalls that must be examined. One primary challenge involves market demand for such long-term securities. Investors typically prefer a mix of short to medium-term bonds, as they provide more flexibility to respond to changing economic conditions. A significant barrier to the popularity of 100-year bonds is the market’s appetite for such a long duration investment, which might not be substantial enough to ensure a successful issuance.

Another critical aspect to consider is the fluctuation of interest rates over the lifetime of these bonds. Since 100-year bonds would be issued at a fixed interest rate, any future increases in prevailing rates could render existing bonds less attractive, leading to potential losses for investors. This creates a market risk that could negatively impact the bond’s liquidity, as investors may be reluctant to purchase or trade these securities at unfavorable rates.

Inflation poses a substantial risk for long-dated bonds. Over a century, various inflationary pressures could erode the real value of the interest and principal payments. If the rate of inflation outpaces the fixed interest returns on these bonds, investors would experience a decline in their purchasing power over time, which could render 100-year bonds less appealing. Additionally, these bonds might complicate fiscal policy, as governments would need to manage the implications of long-term debt issuance. An increase in long-dated liabilities could limit fiscal flexibility, particularly during economic downturns when spending is needed.

Also read : IndusInd Bank: A Stable Outlook Amidst Speculative Reports, Warns RBI

In conclusion, introducing 100-year government bonds involves navigating substantial challenges, including market demand, interest rate volatility, inflationary risks, and the broader implications for fiscal policy. Each factor must be carefully considered to ensure that this financial instrument serves the best interests of both issuers and investors alike.

The Role of RBI in This Initiative

The Reserve Bank of India (RBI) plays a vital role in the process of introducing new government securities, particularly when an institution like the Life Insurance Corporation of India (LIC) proposes the launch of long-tenure bonds such as 100-year government bonds. As the country’s central bank, the RBI is tasked with formulating and implementing the monetary policy, which includes the management of government bonds in the financial system. One of the primary functions of the RBI is to ensure that the mechanisms for issuing and trading these bonds align with the broader objectives of economic stability and growth.

In examining LIC’s proposal, the RBI must consider several regulatory aspects. For instance, it has to evaluate how the introduction of long-term bonds could impact the existing yield curve and interest rates. The RBI typically assesses the implications of new securities on public debt management, inflation expectations, and overall liquidity in the economy. Given that issuing government bonds can lead to significant changes in fiscal dynamics and market conditions, a thorough analysis is essential.

Potential responses from the RBI regarding LIC’s request may vary, depending on the macroeconomic climate and ongoing fiscal policies. The central bank might take a cautious approach, weighing the pros and cons before making a decision. If the RBI supports issuing 100-year bonds, it could signify an effort to stabilize long-term interest rates and offer a viable investment avenue for institutions like LIC. This, in turn, would contribute to financial inclusivity and resilience in the economic system.

Moreover, the introduction of such long-term bonds could fundamentally reshape the landscape of government borrowing, which in turn has implications for monetary policy. As the RBI navigates these complexities, the overarching aim remains to foster a stable financial environment conducive to sustainable economic growth.

Market Reactions and Stakeholder Opinions

The proposal by Life Insurance Corporation (LIC) to introduce 100-year government bonds has stirred a diverse range of opinions within the finance community. Analysts, investors, and economic experts are weighing in on the implications of such a significant move, considering both potential benefits and challenges. The sentiment surrounding the introduction of these long-term securities appears multifaceted, reflecting a balance of optimism and caution among stakeholders.

Many analysts suggest that the issuance of 100-year bonds might attract investors seeking stable, long-term returns in an environment marked by volatility. These bonds could serve as safe havens for institutional investors, such as pension funds and insurance companies, who often prefer fixed-income assets with extended maturities to match their long-term liabilities. Furthermore, proponents argue that such instruments could enhance the depth of the domestic bond market, potentially making it more attractive to foreign investors. There is a belief that increased foreign capital could lead to improved market liquidity and more competitive pricing.

On the other hand, there are concerns regarding the sustainability and management of such long-dated instruments. Critics point out that 100-year bonds could expose the government to interest rate risk, particularly if rates rise sharply in the future. This situation could create challenges for the fiscal health of the government and impact its ability to fulfill obligations over such an extended period. Additionally, some financial experts warn that introducing longer bonds may inadvertently lead to challenges in the bond market, such as liquidity issues or insufficient demand during periods of economic uncertainty.

In conclusion, the reactions to LIC’s proposal for 100-year government bonds highlight a blend of optimism and skepticism. Stakeholders are carefully considering the potential economic ramifications, balancing the opportunity for increased investment against the inherent risks associated with long-term securities. As the discourse evolves, the ultimate impact of this initiative will become clearer, shaping the landscape of long-term investment in the country.

Summary and Future Outlook

In conclusion, the request made by Life Insurance Corporation (LIC) to the Reserve Bank of India (RBI) for the introduction of 100-year government bonds has opened an important dialogue regarding the future of the Indian bond market. The proposal comes in light of increasing demand for long-term investment vehicles that can provide more stable returns amid economic uncertainties. Such bonds could potentially attract not only institutional investors like LIC but also individual investors looking for secure and long-duration opportunities.

LIC’s suggestion underscores the need for innovative financial products that can accommodate the evolving investment landscape. The introduction of long-term government bonds would enable the Indian government to effectively manage its debt portfolio while providing an attractive option for investors who prefer a longer investment horizon. Furthermore, this type of bond could serve as a benchmark for other long-term securities, thereby reinforcing the stability of financial markets.

Looking ahead, the RBI’s response to LIC’s request will be critical. If the central bank considers this initiative positively, we might witness a timeline for issuance being established, subject to market conditions and investor appetite. It is plausible that the RBI would conduct extensive consultations with various stakeholders, including financial institutions and economic experts, to evaluate the potential impact on the economy, fiscal policy, and overall investor confidence.

The long-term implications for the Indian bond market could be significant. A successful launch of 100-year bonds could pave the way for similar offerings in the future and contribute to a more diversified investment landscape. This would not only enhance the attractiveness of government debt but also support broader economic growth by encouraging long-term capital formation. Ultimately, the developments from this proposal will be pivotal in shaping the investment strategies of various players within the Indian financial ecosystem.

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Geetika Shrestha

Geetika Sherstha is a passionate media enthusiast with a degree in Media Communication from Banasthali Vidyapith, Jaipur. She loves exploring the world of digital marketing, PR, and content creation, having gained hands-on experience at local startups like Vibrant Buzz and City Connect PR. Through her blog, Geetika shares insights on social media trends, media strategies, and creative storytelling, making complex topics simple and accessible for all. When she's not blogging, you’ll find her brainstorming new ideas or capturing everyday moments with her camera.

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Breaking News

India Russian oil stop announcement by Trump sparks diplomatic shock, conflicting reactions, and trade tensions —

Published

4 hours ago

October 16, 2025

Editorial Team

Contents

US, Oct.16,2025:India Russian oil stop became a dramatic flashpoint when U.S. President Donald Trump publicly claimed that Indian Prime Minister Narendra Modi personally assured him that India would cease buying Russian oil.
Trump made this revelation at a White House event, asserting that Modi is committed to cutting off Russia’s energy revenues-

He described the transition as “a process, but that process will be over with soon.”

If true, this would mark a seismic shift in India’s energy diplomacy. But as of now, the Indian government has not endorsed or confirmed this claim publicly.

Trump’s statements-praise, love, and clarifications

Praise turns personal

As he made the bold India Russian oil stop declaration, Trump didn’t just focus on policy — he wove in personal praise. He called PM Modi “a great man” and said Modi “loves Trump.”

Trump remarked, “I love Modi,” but quickly added he didn’t want that to be misinterpreted. He clarified that he had no intention of harming Modi’s political image.

Such remarks added an odd, almost romantic tone to a highly charged diplomatic statement — and raised eyebrows in New Delhi.

“It’s a little bit of a process”

Trump acknowledged that India couldn’t halt Russian oil imports overnight. He described the shift as gradual but assured that it would be completed “soon.”

He further said that even though the transition isn’t immediate, it’s underway: “There will be no oil. He’s not buying oil.”

This nuanced caveat — “process” — suggests Trump understands the complexity of energy supply chains, but still wants to frame the move as inevitable.

Reactions from New Delhi and political opposition

India’s official stance- cautious and refusal to confirm

New Delhi has responded cautiously. Foreign Ministry communiqués emphasize that India will safeguard the interests of its citizens — ensuring energy security and affordability.

The Indian government has neither denied nor affirmed Trump’s claim. Instead, officials underscore that India’s decisions will follow national interest, not external pressure.

Opposition voices surge

In domestic politics, the claim sparked fierce reactions. Congress leader Rahul Gandhi accused PM Modi of compromising national dignity by “allowing Trump to decide India’s energy policies.”

He launched a five-point critique, saying Modi was “frightened” of Trump and silent on critical issues.

These debates deepen the domestic pressure on the government to clearly state its position.

Market and economic impact of the claim

Rupee rally and central bank intervention

The Indian rupee saw an immediate response. It strengthened by about 0.8 %, reaching 88.0750 per U.S. dollar — its best showing in months.

This rally was partly driven by market optimism that a India Russian oil stop commitment could ease trade tensions with the U.S.

The Reserve Bank of India also intervened heavily, selling dollars to curb volatility.

Oil markets and pricing pressures

Global oil markets responded too. Brent crude futures rose about 0.9 %, as traders priced in potential supply shifts.

If India reduces Russian oil imports, demand may shift to other suppliers, possibly pushing prices higher or disrupting logistics.

Trade tensions and tariff context

This claim comes in the wake of earlier U.S. tariffs targeting India’s Russian oil imports. The Trump administration had slapped up to 50 % tariffs on Indian goods partially as a response to India’s continued purchases of Russian crude.

Some analysts see this India Russian oil stop statement as an attempt at diplomatic recalibration.

Geopolitical stakes- U.S., Russia, India

U.S. pressure on Moscow

Trump’s aim is clear: to reduce Russia’s energy revenue and push Moscow toward a negotiated settlement in the Ukraine war.

By pressuring India and trying to bring China on board, Trump hopes to tighten the noose on Russian oil exports.

India’s strategic balancing act

India has relied on Russian oil imports for stability, affordability, and diversification of energy routes.

Yet India also prizes strategic autonomy — foreign pressure to change energy policy challenges that principle.

Russia’s response and future ties

If India actually curtailed Russian oil purchases, Russia would lose a major client. That could escalate tensions or lead Moscow to offer deeper discounts or alternate partnerships.

At the same time, Russia may retaliate in diplomatic or defense sectors.

Questions and contradictions

Did Modi really promise

The largest question is whether the promise was ever made. India has not validated Trump’s claim.

Modi’s silence on the matter has fueled speculation and skepticism.

Can India manage an abrupt shift

India’s energy system is complex. Supply chains, contracts, refining capacities, and global oil markets all need adjustment. A sudden stop in Russian oil is extremely challenging.

Even Trump concedes: the halt is not immediate.

Hidden motivations

Critics argue the announcement could serve multiple political goals-

Domestic benefit: bolster Trump’s image as a dealmaker
Diplomatic positioning: signal alignment to U.S.
Pressure tactic: push India toward concessions

We must ask: is this a signal or a realistic policy commitment?

**is India Russian oil stop realistic**

The phrase India Russian oil stop now looms large in geopolitical discourse. But whether it becomes reality is uncertain.

India faces domestic pressures — energy security, cost, supply chain disruptions — that make a full stop hard.

Diplomatically, confirming such a commitment could strain India’s ties with Russia and upset its balancing foreign policy.

Breaking News

India-UK Strategic Partnership 2025 takes a major leap as PM Modi meets British PM Keir Starmer in Mumbai-

Published

1 week ago

October 9, 2025

Editorial Team

Contents

Mumbai,Oct.09,2025:India-UK Strategic Partnership 2025 began a new era of cooperation as Indian Prime Minister Narendra Modi met British Prime Minister Keir Starmer in Mumbai on Thursday. This high-profile meeting comes just months after Modi’s successful visit to the UK in July, where the two nations signed a series of landmark trade and economic agreements-

In a joint statement, both leaders reaffirmed their commitment to deepen ties across trade, technology, education, and culture — calling the partnership a pillar of “global stability and shared prosperity.”

Key Highlights of PM Modi and Keir Starmer’s Meeting

The meeting took place in Mumbai, marking Starmer’s first official visit to India as the UK Prime Minister.
PM Modi emphasized that the India-UK Strategic Partnership 2025 will continue to strengthen economic cooperation and reduce import costs.
A major trade delegation — the largest ever from the UK to India — accompanied Starmer.
New agreements were discussed in sectors including film, education, renewable energy, and innovation.

PM Modi expressed optimism, stating-

“The growing partnership between India and the UK is a beacon of hope in today’s uncertain world. Together, we can shape a stable and prosperous global order.”

Building Economic Bridges

At the heart of the India-UK Strategic Partnership 2025 lies the new Economic and Trade Agreement, signed earlier this year. The deal is expected to:

Reduce import costs for key goods and services.
Create thousands of jobs in technology, finance, and renewable energy sectors.
Boost bilateral trade by over 25% in the next three years.
Facilitate startups and innovation through joint research programs.

According to Reuters, the trade pact could add $14 billion annually to the combined economies of India and the UK. This agreement also aims to simplify visa norms, allowing professionals and students to move more easily between the two countries.

Cultural Collaboration and Bollywood in Britain

A fascinating development under the India-UK Strategic Partnership 2025 is the announcement of a new agreement to promote Bollywood filmmaking in the UK. PM Keir Starmer highlighted that the UK will become a “global hub” for Indian film productions.

“British studios and locations are ready to welcome Indian filmmakers. This will not only promote cultural exchange but also strengthen our creative economies,” Starmer said.

This collaboration aims to blend Indian storytelling with British cinematic expertise, creating cross-cultural masterpieces. British tourism boards are already exploring “Bollywood Trails” to attract Indian tourists to iconic UK film locations.

British Universities in India

Another major pillar of the India-UK Strategic Partnership 2025 is education. PM Starmer announced that British universities will establish campuses in India, making the UK one of the largest international education providers in the country.

This initiative is designed to-

Expand access to world-class higher education for Indian students.
Foster research partnerships between Indian and British institutions.
Encourage student and faculty exchange programs.

Leading universities like Oxford, Cambridge, and Imperial College London have reportedly expressed interest in setting up joint-degree campuses in cities such as Bengaluru, Mumbai, and Delhi.

Global Stability and Strategic Unity

In his address, PM Modi stressed that in an era of “global uncertainty,” the India-UK Strategic Partnership 2025 serves as a vital anchor for stability.

Both leaders emphasized cooperation in-

Counter-terrorism and cybersecurity.
Climate action and green technology.
Defence innovation and maritime security.

They also discussed the ongoing conflicts in the Middle East and Ukraine, expressing their shared goal of promoting peace through diplomacy.

“India and the UK stand united in safeguarding democratic values, economic openness, and global stability,” said PM Modi.

Expert Opinions and Global Reactions

Experts have hailed the India-UK Strategic Partnership 2025 as a “transformative blueprint” for global cooperation.

Dr. Ramesh Thakur, a foreign policy analyst, noted that “this partnership combines India’s growing economic influence with Britain’s technological and educational strengths.”
The Confederation of British Industry (CBI) welcomed the trade initiatives, predicting that UK exports to India could double by 2028.
Indian Chambers of Commerce called the meeting “a turning point” in redefining global south–west relations.

Global markets responded positively, with Indian and British stock indices showing a slight uptick following the leaders’ joint statement.

The Road Ahead for India and the UK

The India-UK Strategic Partnership 2025 marks a decisive moment in global diplomacy. With deeper trade, educational exchange, and cultural cooperation, the two democracies are laying the foundation for a more resilient global order.

As PM Modi aptly concluded-

“Our partnership is not limited by geography or economics — it is bound by shared values, trust, and the promise of a better world.”

With sustained political will and people-to-people connection, India and the UK are poised to become a model of modern partnership — one that shapes the 21st-century global balance.

Breaking News

Arattai Messaging App’s Stunning Rise- Can India’s Chat Revolution Challenge WhatsApp in 2025-

Published

1 week ago

October 9, 2025

Editorial Team

Contents

New Delhi, Oct.09,2025:The Arattai Messaging App, developed by Indian tech giant Zoho Corporation, has suddenly become one of the most talked-about apps in the country. Within just seven days, the app reportedly surpassed 7 million downloads, igniting conversations about whether India’s homegrown innovation can finally rival WhatsApp, the global leader in messaging-

The word “Arattai” translates to “chat” or “banter” in Tamil, a fitting name for an app that aims to connect people across India through seamless digital communication.

But the question remains: Can Arattai Messaging App truly challenge WhatsApp’s dominance in India, where the Meta-owned platform has over 500 million active users?

The Sudden Rise of Arattai

According to market intelligence firm Sensor Tower, Arattai had fewer than 10,000 downloads in August. But by late September, it skyrocketed to millions — a surge fueled by growing calls for “Made in India” products and government-backed digital self-reliance campaigns like Make in India and Digital India.

The turning point came when Union Minister Dharmendra Pradhan endorsed the app on X (formerly Twitter), urging citizens to “embrace indigenous innovation.” Soon after, several ministers, industry leaders, and influencers joined the movement, catapulting Arattai into the national spotlight.

Zoho’s CEO, Sridhar Vembu, told Media News that the spike in downloads “showed how excited Indian users are about supporting a truly native product that meets their everyday communication needs.”

“Within just three days, our daily sign-ups rose from 3,000 to over 350,000,” said Vembu. “Active users have grown 100 times, and this growth hasn’t slowed.”

However, he remained cautious, noting that Arattai’s success depends on sustained user engagement — not just a wave of initial enthusiasm.

What Makes Arattai Different

The Arattai Messaging App mirrors many of WhatsApp’s core features — including instant messaging, voice and video calls, and business tools — but with a twist of Indian innovation.

Key features include–

Lightweight performance on low-end phones
Smooth functioning on slow internet connections
Simple and familiar interface
Focus on privacy and data control

Like WhatsApp, Arattai aims to serve both individual and business users, providing secure communication channels for companies, startups, and communities.

Many early users on social media praised its clean design, ease of use, and patriotic appeal, calling it “the Indian answer to WhatsApp.”

Government Support Boosts the Indian App Movement

The Indian government’s increasing push for self-reliance has played a huge role in Arattai’s success. Prime Minister Narendra Modi’s campaigns like “Make in India” and “Atmanirbhar Bharat” (Self-Reliant India) have encouraged citizens to choose domestic digital alternatives over foreign apps.

With rising trade tensions and digital sovereignty debates, many Indians are eager to adopt homegrown technology. Arattai has become a symbol of digital nationalism, aligning perfectly with the government’s messaging.

Zoho’s Vision Behind Arattai

Founded in 1996, Zoho Corporation is one of India’s most respected tech companies, known globally for its business software ecosystem.

According to Sridhar Vembu, Arattai was originally launched quietly in 2021, but the company never aggressively promoted it — until now.

“We wanted Arattai to evolve naturally,” Vembu said. “What we’re seeing now is the outcome of years of effort to build a scalable, secure communication platform rooted in Indian values.”

Zoho insists that Arattai’s growth is not just about competition, but about offering choice in a digital market dominated by multinational corporations.

Can Arattai Compete With WhatsApp’s Scale

While Arattai’s rise is impressive, experts say competing with WhatsApp will be an uphill battle.

WhatsApp’s integration into daily life — from family chats to business transactions — makes it deeply entrenched in India’s digital ecosystem.

“It’s extremely difficult for any app to displace WhatsApp in India. Businesses, government agencies, and millions of users are tied into its infrastructure.”

Still, he acknowledges Arattai’s potential-

“If it continues to improve and stay true to its privacy promises, Arattai could carve out a loyal niche among users seeking Indian alternatives.”

Can Nationalism Drive User Retention

Experts argue that national pride alone may not guarantee long-term success. While initial downloads are driven by emotion, sustained engagement requires consistent innovation.

“Nationalism may spark curiosity, but retention needs performance, reliability, and trust,” said digital strategist Ankit Gera.

Arattai must not only attract new users but also keep them engaged with continuous updates, bug fixes, and business integrations — areas where Meta’s WhatsApp currently excels.

Data Privacy Concerns Around Arattai

Despite its rise, data privacy has become a growing concern. While Arattai provides end-to-end encryption for voice and video calls, it does not yet encrypt text messages, raising red flags among cybersecurity experts.

Shashidhar K.J., Managing Editor at Medianama, noted-

“The Indian government’s desire for traceable messaging makes it challenging for local apps to offer full encryption. Arattai’s current setup may allow easier government access to user data.”

In response, Zoho CEO Vembu assured that end-to-end encryption for text messages is in progress and will roll out soon.

“We want users to have complete control over their data,” he said. “Once full encryption is implemented, even we won’t be able to access user conversations.”

For comparison, WhatsApp already offers full encryption for both messages and calls, though it shares metadata with authorities under legal conditions.

India’s Legal Landscape and Its Impact on Local Apps

India’s evolving digital laws pose another challenge for Arattai Messaging App. Under current regulations, platforms must share user data with authorities in certain cases.

Global giants like Meta (WhatsApp) and X (formerly Twitter) have the legal and financial muscle to challenge such demands in court — as seen in the 2021 legal battle where WhatsApp sued the Indian government over new IT rules that threatened privacy protections.

Local startups, however, lack similar resources. Analysts warn that Arattai, being a domestic company, may face pressure to comply with data requests from the government more readily.

Tech policy expert Rahul Matthan stated-

“Unless Zoho clarifies its stance on government access and user data, many users will hesitate to fully migrate to Arattai.”

How Arattai Fits Into the Tech Ecosystem

India’s rise as a digital innovation hub is reshaping global tech trends. The Arattai Messaging App represents not just competition for WhatsApp, but also the broader push for digital sovereignty in emerging economies.

Other countries, too, are developing national alternatives to global apps — from China’s WeChat to Russia’s Telegram. Arattai’s success could inspire similar initiatives across Asia and Africa.

Challenges and Opportunities

To sustain its growth, Arattai must address several key challenges-

Ensure complete end-to-end encryption to build trust.
Compete on features — such as payments, business APIs, and group management.
Retain users with continuous innovation and strong customer support.
Navigate government pressure while upholding user privacy.

If Zoho succeeds, Arattai could become a global benchmark for ethical, Indian-built communication platforms.

Can Arattai Sustain Its Meteoric Growth

The Arattai Messaging App stands at a fascinating crossroads. Its rapid rise showcases India’s capacity for world-class digital innovation, fueled by national pride and technological ambition.

Breaking News

Trump’s 100% Tariff on Branded Drugs in 2025 Huge Impact on India and Global Pharma-

Published

3 weeks ago

September 26, 2025

Editorial Team

Contents

US, Sep.26,2025:Trump 100% Tariff on Branded Drugs has sparked a storm across the pharmaceutical world. On Thursday, former U.S. President Donald Trump announced a sweeping new trade measure: a 100% tariff on all branded and patented pharmaceutical imports, effective October 1, 2025–

This move, shared on his platform Truth Social, will drastically reshape global pharmaceutical trade. For India—one of the largest exporters of medicines to the United States—the decision comes as a fresh blow after existing 50% tariffs already dented export margins.

Alongside medicines, Trump also slapped 25% tariffs on heavy-duty trucks, 50% tariffs on kitchen and bathroom cabinets, and 30% tariffs on upholstered furniture.

Details of the New 100% Tariff Policy

Trump declared that beginning October 2025.

100% tariff will apply to all branded and patented pharmaceutical products not made in the U.S.
50% tariff will apply to all imported kitchen cabinets, bathroom vanities, and related furniture.
25% tariff will target heavy-duty trucks.
30% tariff will hit upholstered furniture.

He justified these tariffs as necessary to protect American manufacturers from “unfair foreign competition” and to safeguard national security interests.

Why Trump is Targeting Branded Drugs

At the core of Trump’s 100% Tariff on Branded Drugs lies his long-standing trade policy—”America First.” Trump has repeatedly accused countries like Ireland of offering low corporate tax rates to lure U.S. pharmaceutical giants such as Pfizer, Merck, and Johnson & Johnson.

By imposing heavy tariffs, Trump aims to force drug makers to shift production back to the U.S. instead of outsourcing to Ireland, India, or other low-cost countries.

Impact on Indian Pharmaceutical Exports

India exports around $12.7 billion worth of medicines annually to the U.S., according to the Global Trade Research Initiative (GTRI). While most are generic drugs, India also supplies branded formulations through leading firms like.

Dr. Reddy’s Laboratories
Lupin Limited
Sun Pharma

These companies already operate at thin profit margins. With tariffs doubling to 100%, many may find it unsustainable to continue branded drug exports.

North America contributes nearly one-third of Indian pharma companies’ profits, meaning any disruption could shake their financial stability.

Indian Generic vs Branded Drug Market in the US

Generics dominate: Nearly 90% of U.S. prescriptions are filled with generic drugs, and half of them originate from India.
Branded drugs matter less for India, but tariffs still hurt because they raise overall compliance costs.
According to IQVIA, Indian generics saved the U.S. $219 billion in 2022 alone.

Experts warn that if tariffs extend to generics in the future, U.S. healthcare costs could skyrocket and shortages could worsen.

The Ireland Factor in Branded Drugs Tariffs

The biggest hidden target of the Trump 100% Tariff on Branded Drugs may be Ireland.

Ireland hosts factories of over a dozen top pharma companies, including Merck, AbbVie, and Eli Lilly.
Products like Keytruda (Merck’s cancer drug) and Botox (AbbVie) are manufactured there for U.S. consumers.
Trump has accused Ireland of running a “tax haven scam” at America’s expense.

This makes Ireland’s pharmaceutical exports a likely primary casualty of the tariff war.

Consequences for US Healthcare Costs

If tariffs are enforced strictly.

Drug costs will rise in the U.S. due to reduced competition.
Patients may face shortages, especially for specialized treatments like cancer and obesity drugs.
Insurance companies could increase premiums.
Hospitals may cut back on treatments that rely on imported branded drugs.

Ironically, while Trump’s policy is meant to protect American manufacturers, it may hurt American patients the most.

Expert Reactions and Global Trade Concerns

GTRI experts warn Indian pharma exporters may be “priced out” of the U.S. market.
Reuters analysts note Trump’s tariffs risk violating WTO rules, sparking global trade disputes.
U.S. Commerce Secretary Howard Lutnick has defended the move, calling Ireland’s policies a “scandal.”

Global reactions remain divided—some view this as protectionist overreach, while others see it as a wake-up call for diversifying supply chains.

Future of India–US Pharma Trade Relations

For India, the challenge is twofold.

Safeguard generics – India must push through trade negotiations to keep generics exempt from tariff hikes.
Diversify exports – Indian firms may need to explore markets in Europe, Africa, and Latin America to reduce dependency on the U.S.

Experts suggest that without a bilateral trade deal, Indian companies could lose competitiveness in the world’s largest pharma market.

A Global Ripple Effect

The Trump 100% Tariff on Branded Drugs is more than a trade policy—it’s a geopolitical signal. While it may protect U.S. truck and cabinet makers, the real storm is in pharmaceuticals.

For India, the short-term impact may be limited to branded drugs, but the long-term fear is clear: if generics are targeted, America’s healthcare system could face unprecedented costs and shortages.

Breaking News

US sanctions on Chabahar Port deal a major setback to India’s regional trade strategy. Here’s how it impacts India, Iran, and global geopolitics-

Published

4 weeks ago

September 19, 2025

Editorial Team

This exemption had allowed India to operate and invest in the Chabahar project without facing US secondary sanctions

Contents

US,Sep.19,2025:According to US State Department deputy spokesperson Thomas Pigott, the exemption granted in 2018 under the Iran Freedom and Counter-Proliferation Act (IFCA) will end on September 29, 2025-

This exemption had allowed India to operate and invest in the Chabahar project without facing US secondary sanctions. The waiver was originally justified as being essential for Afghanistan’s reconstruction and trade, at a time when US forces were still present in the region.

Now, anyone involved in the operation, financing, or development of Chabahar Port will fall under American sanctions, creating serious legal and financial risks for India.

Why Chabahar Port Matters to India

The US sanctions on Chabahar Port are significant because the port is not just a trade hub but a pillar of India’s connectivity diplomacy.

Chabahar lies on Iran’s southeastern coast in Sistan-Baluchestan province, providing India a gateway to Afghanistan and Central Asia without going through Pakistan.
It is India’s first overseas port management project. In May 2024, India signed a 10-year contract to operate the Shahid Beheshti terminal.
The project is linked to the International North–South Transport Corridor (INSTC), a 7,200-km multimodal network aimed at boosting trade between India, Iran, Russia, Central Asia, and Europe.

Timeline of India’s Engagement with Chabahar

2003: India first proposed to develop Chabahar Port to bypass Pakistan.
2016: PM Narendra Modi visited Iran, signing the landmark Chabahar agreement.
2018: US sanctions on Iran were tightened, but Chabahar was exempted.
2019: First shipments from Afghanistan reached India via Chabahar, bypassing Pakistan.
2023: India shipped 20,000 tonnes of wheat to Afghanistan through Chabahar.
May 2024: India signed a 10-year operating contract, the first of its kind for India overseas.
September 2025: The US officially revoked Chabahar’s waiver, placing India in a difficult position.

The Strategic Blow to India

The US sanctions on Chabahar Port directly undermine India’s multi-billion-dollar investment. Experts say it will:

Delay India’s connectivity projects with Central Asia.
Limit India’s ability to counter China’s Belt and Road Initiative (BRI), particularly at Pakistan’s Gwadar Port, located just 100 km from Chabahar.
Weaken India’s geopolitical bargaining power with Iran and Afghanistan.

For New Delhi, this is not just an economic issue but a strategic loss.

China, Pakistan, and Gwadar

Chabahar has always been viewed as a strategic answer to Pakistan’s Gwadar Port, developed by China under the China-Pakistan Economic Corridor (CPEC).

Now, with sanctions looming, experts warn that China could step in to fill the vacuum left by India. Beijing is already Iran’s largest energy buyer and a key investor in infrastructure. If India is forced to scale down, Chabahar could tilt towards China, undermining India’s leverage.

Experts’ Views on the Sanctions

Prominent voices have sharply criticised Washington’s decision-

Brahma Chellaney, strategic affairs expert, called the move a “punitive step against India”. He argued that China gains the most from such policies, while India pays the price.
Michael Kugelman, South Asia expert at Wilson Center, said the revocation is “a strategic setback for India’s connectivity ambitions”.
Zorawar Daulet Singh, geopolitical analyst, remarked: “This is an extraordinary situation where a so-called strategic partner is undermining India’s core interests while claiming to balance China.”

Impact on International North–South Transport Corridor (INSTC)

The INSTC project was designed to shorten cargo transport between India and Europe by thousands of kilometers. Chabahar was envisioned as the gateway port for this corridor.

With sanctions now clouding its future:

INSTC’s viability is in question.
Russia and Iran may seek to deepen ties with China, leaving India marginalized.
India’s investments in road and rail links from Chabahar to Afghanistan risk stalling.

How US Strategy is Changing in the Region

Analysts note that the decision reflects Washington’s renewed “maximum pressure” policy against Iran, pushed by President Donald Trump in his second term.

While the US justifies the sanctions as a way to isolate Tehran, critics argue this undermines allies like India and pushes Iran closer to China and Russia.

For New Delhi, this presents a strategic dilemma—maintain ties with Washington or protect its hard-earned foothold in Iran.

India’s Options Going Forward

Faced with the US sanctions on Chabahar Port, India has limited but important choices:

Diplomatic Negotiation – Seek a fresh waiver by lobbying Washington, highlighting Afghanistan and Central Asia’s dependence on Chabahar.
Strengthen Ties with Iran – Double down on bilateral cooperation with Tehran to avoid losing influence to China.
Diversify Connectivity – Accelerate work on the India-Middle East-Europe Corridor (IMEC), announced at the G20 Summit.
Leverage Multilateral Platforms – Use BRICS, SCO, and UN forums to push back against unilateral sanctions.

The US sanctions on Chabahar Port are more than just an economic hurdle—they represent a significant strategic setback for India. For two decades, New Delhi has invested political capital and financial resources into making Chabahar a symbol of regional connectivity and independence from Pakistan’s chokehold.

Now, with Washington’s latest decision, India faces a narrowing path. Will New Delhi confront the US, or adapt its strategy by leaning more on Iran, Russia, and even China?

One thing is clear: the story of Chabahar is no longer about a port—it is about the future of India’s strategic autonomy in an increasingly polarized world.

Breaking News

India offered zero tariffs—an overdue move that may reshape global trade and backfire strategically

Published

1 month ago

September 2, 2025

Editorial Team

US, Sep.02,2025:India offered zero tariffs — that’s how former U.S. President Donald Trump framed the situation in a post on Truth Social on September 1, 2025. He called the U.S.–India trade relationship “totally one-sided,” stating that India “has now offered to cut their tariffs to nothing, but it’s getting late. They should have done so years ago.”

Why the Offer Came “Too Late”

Trump’s comments reflect growing tensions: earlier, the U.S. slapped India with exceptionally high tariffs—up to 50%—largely in retaliation for India importing discounted Russian oil. India viewed these tariffs as “unjustified and unreasonable,” pushing it to reaffirm strategic autonomy.

Navarro’s Sharp Criticism: “Maharaja of Tariffs”

White House trade adviser Peter Navarro didn’t hold back. Labeling India the “Maharaja of tariffs”, he accused it of erecting trade barriers that hurt U.S. businesses while acting in denial about its own policies. He added that India was “nothing but a laundromat for the Kremlin,” condemning its profitable refined oil trade with Russia. Navarro went further, calling it a “shame” to see Modi align with Putin and Xi at the SCO summit, urging India to side with Western democracies instead.

SCO Summit: Modi’s Balancing Act

At the Shanghai Cooperation Organisation summit in Tianjin, PM Modi stood alongside Chinese President Xi Jinping and Russian President Vladimir Putin in a highly visible display of solidarity. Although no major agreements emerged, the optics sent a clear signal of India’s intent to maintain a multipolar posture. Modi emphasized the “special and privileged” nature of India-Russia ties even as Indian-Russian trade surged to a record $68.7 billion in 2024-25. Analysts note that Trump’s punitive tariffs are nudging India closer to Russia and China.

Geopolitical Fallout & Strategic Autonomy

India’s refusal to cede to U.S. pressure isn’t just economic—it’s strategic. Analysts warn that such aggressive, transactional diplomacy by the U.S. could weaken long-term alliances. Meanwhile, ex-U.S. national security adviser Jake Sullivan called Trump’s policies toward India a “strategic loss” for Washington, arguing that sacrificing India undermines U.S. interests.

Shocking Consequences If This Deal Moves Forward

Consequence	Why It Matters
Erosion of U.S. Leverage	A zero-tariff deal now would simply reward India after months of confrontation—weakening future negotiating power.
Short-Term PR, Long-Term Rift	A tariff cut may look like peace, but lingering distrust and strategic missteps could irreversibly fracture the relationship.
Empowering Rival Alliances	Seen through today’s lens, India stepping back into the U.S. orbit risks being interpreted as capitulation rather than cooperation.
Undermining Quad Cohesion	The Quad’s strength depends on perceived commitment—India’s oscillation raises doubts about its alignment.
Domestic Blowback in India	Nationalistic sentiment runs high. A perceived U.S. win could trigger pushback across India’s political spectrum.

Toward a Multipolar Trade Era

India offered zero tariffs—but the response was electric, charged with geopolitics, pride, and strategy. This moment underscores a broader global realignment: nations now prioritize autonomy, multipolar engagement, and pragmatic balancing.

For the U.S., the move should be a reminder: hard-ball tactics may win headlines—but lasting alliances require trust and shared vision. For India, it’s a moment to reaffirm that strategic autonomy isn’t isolation—it’s sovereignty.

Business

Brahmins profiteering’—Peter Navarro’s Bold, Controversial Jibe Hits India

Published

2 months ago

September 1, 2025

Editorial Team

Contents

US,Sep.01,2025:The 2025 US–India trade crisis began in August when the Trump administration slapped a 25% “reciprocal” tariff on Indian goods. That quickly doubled to 50%, citing India’s continued purchase of Russian oil despite the Ukraine conflict.

This escalation came as India remained steadfast, arguing its oil imports were based on economic necessity and strategic autonomy—especially when Western nations continued to import Russian resources.

Navarro’s ‘Brahmins profiteering’ Charge Explained

Peter Navarro, doubling down on his earlier critiques, surged with inflammatory rhetoric:

He labeled India “a laundromat for the Kremlin”, accusing Indian elites of refining cheap Russian crude and selling it at premium prices abroad.
Most controversially, he said: “Brahmins are profiteering at the expense of the Indian people. We need that to stop.”.
Navarro framed the 50% tariffs as a direct consequence of this profiteering, arguing they protect American taxpayers and workers while punishing elites.

US-India Trade Turmoil Tariffs & Retaliation

The initial 25% tariff was imposed after stalled trade talks. The additional 25%—bringing it to 50%—was framed as retaliation against India’s oil dealings with Russia.
Navarro insisted that if India stopped buying Russian oil, tariffs could be reduced “tomorrow”.
Observers warn that these punitive tariffs could undercut strategic long-term cooperation, strain defense collaboration, and push India closer toward China or Russia.

India’s Defense Sovereignty or Strategy?

Indian officials have bristled at the narrative:

They reaffirmed that oil imports are based on affordability and securing energy for 1.4 billion citizens, not geopolitics.
India highlights its compliance with global norms and noted that the U.S. and EU continue to trade with Russia in other strategic sectors.

Domestic Reactions & International Alarm

Indian political leaders denounced Navarro’s remarks. Shiv Sena’s Priyanka Chaturvedi called them “peak level of senile”, and others pointed out the deliberate misuse of caste rhetoric to foment division.
Critics argue Navarro misunderstood the context. As one commentator on Reddit noted (verbatim):

“I’m a Brahmin and I’m not getting any profits from Russian oil… we’re progressing towards forgetting castes but this guy is pushing us backwards.”

Internationally, analysts fear the deteriorating rhetoric could erode two decades of U.S.–India strategic alignment.

Broader Implications & Way Forward

The crisis spotlights deeper questions: How can India balance energy needs with Western pressures? Can the U.S. impose punitive economic measures without damaging core alliances?
Experts urge recalibration, emphasizing diplomacy over derision. The upcoming UN General Assembly may offer an opportunity for Trump and PM Modi to de-escalate tensions.

Brahmins profiteering—Navarro’s explosive phrase—has triggered more than headlines; it’s illuminated the fault lines between economic pragmatism and moral judgment, between strategic autonomy and geopolitical coercion. As both sides dig in, the horizon for resolution appears clouded. Yet, one truth remains: the cost of escalating rhetoric may be the very strategic partnership both nations need.

Business

India-withstands Trump tariffs five bold reasons

Published

2 months ago

August 27, 2025

Editorial Team

Contents

New Delhi,Aug.27,2025:Proactive steps from the government are bolstering the nation’s adaptability. Measures include lowering GST, enhancing export incentives, and pushing for new free-trade agreements—all aimed at boosting domestic demand and opening

Investor confidence remains firm

India withstands Trump tariffs emphatically, thanks to strong backing from rating agencies and domestic financial institutions. Fitch expects only a modest GDP impact, keeping growth at 6.5% for FY2025–26.
The Indian economy has earned a sovereign upgrade from S&P (from BBB– to BBB), signaling strong macroeconomic resilience and improving investor sentiment.
SBI research projects that while goods worth ~$45 billion could be impacted, trade negotiations and economic adaptability are expected to restore export confidence.

Expansive domestic market buffers shock

India’s vast and growing internal consumption base helps cushion external shocks. Exports comprise ~20% of GDP, meaning disruptions from a 50% U.S. tariff may have a muted overall impact.
Recent projections by GTRI foresee U.S.-bound exports dropping nearly 43%, but strong non-U.S. trade and rising services exports still maintain export momentum.

Government’s strategic countermeasures

Proactive steps from the government are bolstering the nation’s adaptability. Measures include lowering GST, enhancing export incentives, and pushing for new free-trade agreements—all aimed at boosting domestic demand and opening fresh markets.
PM Modi decisively stated he’s “ready to pay a very heavy price” to protect farmers, showing that national interests won’t be compromised under pressure.
India is also diversifying its trade portfolio, eyeing markets in Southeast Asia, Africa, Latin America, and the EU.

Controlled inflation and stable growth

Despite external turbulence, India’s monetary health remains intact.
Inflation is under control—ADB projects it to stay within RBI’s target (around 3.8% this year, rising to 4% by 2026). Retail inflation has even dropped to an eight-year low of 1.55% in July (inflation data from earlier text).
RBI preserved its 6.5% GDP growth forecast, even projecting Q1 growth at 6.9%, indicating steady momentum despite tariffs.

Infrastructure empowerment and policy initiatives

Under the Atmanirbhar Bharat vision, India is sharply increasing infrastructure investments and promoting domestic manufacturing.
Defence procurement from the U.S. has paused, but India is strengthening ties with BRICS partners and bolstering its global strategic posture.
Industrial leaders, like Sajjan Jindal, are driving self-reliance and local supply chain enhancement—key for sectors like EVs and green steel.

True to the headline: India withstands Trump tariffs not through defiance alone, but through strategic vision, economic diversity, policy agility, and internal strength. While the immediate fallout of a 50% tariff raises serious challenges, especially for export sectors, India’s broader foundation and intent to overhaul trade dynamics signal a robust path forward.

Business

Trump tariff peace deal is hailed as a game-changing intervention in the India–Pakistan conflict—discover how tariffs triggered a quick ceasefire and the heavy economic fallout

Published

2 months ago

August 27, 2025

Editorial Team

Contents

US, Aug.27,2025:Trump asserted that within five hours of his call, both India and Pakistan agreed to stand down. This claim, central to the narrative of the Trump tariff peace deal

The Bold Tariff Threat That Set Off Alarm Bells

Trump tariff peace deal kicked off when U.S. President Donald Trump, during a White House cabinet meeting, recounted a dramatic exchange with Prime Minister Modi. He claimed he warned that if fighting continued between India and Pakistan, the U.S. would impose tariffs “so high, your head’s going to spin”.

He framed this as a deliberate move to avert a nuclear conflict.

Swift Diplomacy and the Five-Hour Ceasefire

Trump asserted that within five hours of his call, both India and Pakistan agreed to stand down. This claim, central to the narrative of the Trump tariff peace deal, paints a picture of rapid, high-stakes diplomacy powered by economic threats rather than conventional statecraft.

Downed Jets: The Shocking Military Toll

To underscore the severity of the conflict, Trump repeated earlier claims that seven fighter jets (or possibly more) were downed, costing around $150 million in damage. These dramatic visuals fed into his narrative of urgent intervention through the Trump tariff peace deal.

India’s Firm Pushback and Diplomatic Reality

India has consistently denied any third-party involvement. Officials emphasized that the ceasefire was achieved via direct military-to-military dialogue between DGMO counterparts, not through outside mediation. This conflict between divergent narratives highlights the complexities of diplomacy versus political messaging.

Economic Fallout from the New 50 % Tariff

Simultaneously, the Trump tariff peace deal narrative coincided with the implementation of a sweeping 50 % tariff on Indian goods—the steepest levies imposed on any Asian country. Analysts warn of devastating consequences: sectors like textiles, gems, and seafood could face a 70 % drop in exports, potentially reducing GDP growth below 6 % and costing hundreds of thousands of jobs.

Strategic experts are also concerned this move signals a shift in U.S.–India relations toward confrontation, undermining trust and regional cooperation frameworks like the Quad.

The Trump tariff peace deal may sound dramatic and decisive—bolstered by vivid metaphors of spinning heads and catastrophic war. But beyond the headlines lies a tangled web of geopolitical storytelling, opaque motivations, and economic aggression. Whether this intervention was real or rhetorical, its market-shaking consequences are undeniable—and potentially long-lasting.

Business

GST-cut-cars-transform-festive-auto-sales

Published

2 months ago

August 26, 2025

Editorial Team

Contents

New Delhi, Aug.26,2025:The Federation of Automobile Dealers Associations (FADA), representing over 15,000 dealers, has raised urgent concerns. Dealers are carrying heavy inventory, financed through short-term bank and NBFC loans with typical 45–60 day tranches

GST Cut Cars Changing the Festive Auto Landscape

GST Cut Cars are the talk of the nation as India’s car buyers hit pause, anticipating a tax-driven price drop. This shift in behaviours is transforming the festive season’s typical auto frenzy into a waiting game. With forecasts hanging in the balance, timely policy action is crucial to unlock demand and vitality in the automotive sector.

Why Buyers Are Holding Off – The Waiting Game

Following Prime Minister Narendra Modi’s Independence Day announcement about GST reforms, consumers have largely delayed car purchases, expecting the GST Cut Cars to become cheaper by 8%–10%. This has triggered a sharp decline in sales and inquiries—many buyers are actively asking dealers about the exact tax cuts before deciding.

Vehicle showroom traffic is sluggish, and bookings are down—signaling a pause in consumer spending across cars, electronics, and appliances.

FADA Sounds the Alarm: Dealers Facing Inventory Stress

The Federation of Automobile Dealers Associations (FADA), representing over 15,000 dealers, has raised urgent concerns. Dealers are carrying heavy inventory, financed through short-term bank and NBFC loans with typical 45–60 day tranches. If GST Cut Cars don’t materialize soon, this could escalate costs and limit credit access for dealers.

FADA has appealed to the government to prepone the GST Council meeting—currently slated for September 3–4—and push for implementation before festive demand peaks.

Expected Tax Benefits: Calculated Savings for Buyers

The government is proposing to slash GST on small cars from 28% (plus cess) to 18%, aligning them with TVs, ACs, and appliances in the new lower slab—a large chunk of GST Cut Cars waiting to happen.

Estimates show major savings:

Maruti Suzuki Wagon R: ₹60,000 reduction
Baleno: ₹75,000
Hyundai Creta: ₹55,000
Mahindra XUV700: ₹1.15 lakh
This translates into EMI reductions of ₹600–₹2,000.

Potential Impact on EV Momentum

While GST Cut Cars are becoming more affordable, concerns loom over electric vehicles (EVs). Currently, EVs enjoy a 5% GST rate. With ICE models entering the 18% bracket, the cost differential may shrink—potentially dampening growth in the EV sector.

Stock Market’s Positive Response

Equity markets have rallied on the GST reform hopes. On August 18, auto stocks surged—Maruti Suzuki and Hyundai jumped 8–9%, while consumer goods names gained 4–7%.

Retailers and e-commerce players are hopeful—projecting festive sales growth of 20–30%, provided the GST Cut Cars are implemented soon.

Urgent Measures

Advance GST Council timeline: Pushing the meeting earlier can help implement the GST Cut Cars window ahead of Diwali.
Provide dealer relief: Extend channel financing tranches by 30–45 days to mitigate credit stress.
Clarify cess utilization: Clear guidelines on accumulated cess credits post-reform will ensure smoother transitions.

Diwali’s Potential Comeback

GST Cut Cars carry the promise to reignite India’s festive auto boom—if implemented swiftly. Dealers, carmakers, and consumers are caught in limbo. But with timely reforms, Diwali could still spark a rebound with renewed purchase enthusiasm and economic vitality. Until then, the market stays on standby, waiting for the tax relief that could unlock the festive revival.