Business
I Am Not Sanjay of Mahabharata: RBI Governor on Repo Rate Amidst Trump’s Tariff Wars
Contents
Introduction to the RBI Governor’s Statement
Recent remarks made by the Reserve Bank of India‘s (RBI) Governor, Shaktikanta Das, have sparked considerable interest and discussion among economists, policymakers, and the general public alike. In a nuanced and thought-provoking statement, the Governor asserted, “I am not Sanjay of Mahabharata”. This reference is not just rhetorical; it draws a parallel between the character of Sanjay in the ancient Indian epic ‘Mahabharata’, who served as a remote observer of the battlefield, offering insights but never intervening. The significance of this statement lies in the context of the RBI’s role in managing the Indian economy amidst complex and often tumultuous geopolitical conditions, particularly the implications of President Trump’s ongoing tariff wars.
The evolving situation involving trade tariffs has raised questions about how external events can impact domestic monetary policies, especially concerning the repo rate, which serves as a critical tool for controlling inflation and influencing economic growth. The RBI’s decisions on the repo rate reflect its assessment of economic indicators, and in times of global instability, such as trade disputes or shifts in foreign policy, these decisions become increasingly complex.
Governor Das’s assertion signals a commitment to maintaining the RBI’s independence and the importance of prudent monetary policy while navigating the shifting sands of international relations and trade dynamics. His words remind us that while the RBI plays a vital role in guiding the economy, it is not merely a puppet responding to external pressures. Rather, its approach is informed by a comprehensive analysis of both domestic financial conditions and the broader global economic environment. This sets the stage for further exploration of the intricate relationship between geopolitical events and the RBI’s monetary policies, particularly concerning how the repo rate could be influenced moving forward.
Understanding Repo Rate and Its Importance
The repo rate, short for the repurchase rate, is a critical monetary policy tool used by central banks, including the Reserve Bank of India (RBI), to regulate liquidity and inflation in the economy. Essentially, it represents the rate at which commercial banks borrow funds from the central bank against the collateral of government securities. By altering this rate, the RBI can influence the lending capacity of banks, which subsequently affects consumer spending and business investments.
A significant increase in the repo rate typically leads to higher borrowing costs for consumers and businesses alike. This is because banks usually pass on the increased cost of borrowing to their customers, which results in elevated interest rates on loans. Consequently, higher interest rates can lead to a reduction in consumer spending and business expansion, thus potentially curtailing economic growth. Conversely, a decrease in the repo rate can stimulate an economy by making borrowing cheaper, encouraging spending, investment, and overall economic activity.
The importance of the repo rate extends beyond immediate lending practices; it plays a vital role in controlling inflation. When inflation rises above the desired levels, the RBI may increase the repo rate to cool down excessive demand for goods and services. This action hampers spending and investment due to higher costs associated with loans, assisting in curbing inflation. Hence, understanding the repo rate’s significance is crucial for both consumers and businesses, as it impacts financial planning, investment decisions, and ultimately, the broader economic environment.
In summary, the repo rate serves as a foundational component of monetary policy, balancing the need for economic growth with the imperative of managing inflation. As we delve deeper into the implications of repo rate adjustments amidst various economic challenges, including international trade disputes like Trump’s tariff wars, the relevance of this tool becomes even more pronounced.
Overview of Trump’s Tariff Wars
The term “tariff wars” refers to the escalating series of tariffs and trade barriers implemented primarily between the United States and various trading partners, notably China, during Donald Trump’s presidency. Tariffs, which are taxes imposed on imported goods, are employed by governments to protect domestic industries, counter trade imbalances, and exert economic pressure on foreign countries. Trump’s administration adopted this approach, believing that such measures would invigorate American manufacturing and create jobs.
The rationale behind these tariffs stemmed from a long-standing frustration with perceived unfair trade practices and trade deficits. For instance, in 2018, the Trump administration imposed significant tariffs on imported steel and aluminum from various countries, citing national security concerns. This move not only strained relations with traditional allies but also triggered retaliatory measures, resulting in a tit-for-tat escalation of tariffs. China, for instance, responded by imposing tariffs on American products, which affected various sectors, including agriculture. The resulting trade tensions highlighted vulnerabilities in global supply chains and intensified debates about the future of free trade.
Overall, Trump’s tariff wars underscored the complexities of global trade dynamics and presented critical questions about the balance of protectionism and globalization in a rapidly evolving economic landscape.
Impact of Tariff Wars on the Indian Economy
The ongoing tariff wars initiated by former U.S. President Donald Trump have significant implications for the Indian economy. As countries engage in retaliatory measures and impose higher tariffs, India’s export and import dynamics are subject to substantial shifts. These changes are particularly evident in key sectors such as textiles, electronics, and agriculture, where India has established competitive advantages. While these sectors stand to face challenges, they also present new opportunities for the domestic market to innovate and adapt to changing global demands.
The escalation of tariffs can lead to a trade imbalance, impacting the overall trade deficit of India. Higher tariffs on Indian goods in the U.S. market could result in decreased exports, pressuring companies that rely on these markets. Conversely, imports may become relatively more expensive, leading to a dip in consumer demand for foreign products. This alteration may prompt Indian manufacturers to explore alternative markets or enhance their capabilities to produce similar goods domestically, a shift that could have lasting benefits in terms of self-sufficiency and job creation.
Moreover, foreign direct investment (FDI) is likely to be influenced by the uncertainties surrounding tariff policies. Tariff wars create an unpredictable environment that can deter potential investors, as businesses seek stable economic conditions to ensure profitability. Consequently, India may experience either a decline in FDI or a redirection of investments toward sectors less impacted by tariff fluctuations. The overall growth prospects for the Indian economy depend on navigating these complexities, fostering resilience, and identifying growth sectors that remain buoyant in the face of global trade tensions.
In conclusion, the impact of Trump’s tariff wars on the Indian economy is multi-faceted, affecting trade balances, sector performance, and investment flows. It will be essential for policymakers to adapt their strategies to mitigate negative consequences while optimizing growth opportunities amidst these global challenges.
The RBI’s Monetary Policy Framework
The Reserve Bank of India (RBI) operates within a comprehensive monetary policy framework designed to manage inflation, foster economic growth, and support financial stability. At the core of this framework is the RBI’s commitment to an inflation-targeting regime, which was formally adopted in 2016. This approach establishes a clear target for inflation, allowing the central bank to adjust its monetary policy instruments—primarily the repo rate—in response to prevailing economic conditions.
Inflation targeting provides a transparent strategy that helps to anchor inflation expectations, which is critical for maintaining economic stability. The RBI aims for a Consumer Price Index (CPI) inflation rate of around 4%, with a tolerance band of 2% on either side. This target not only guides the RBI’s policy decisions but also serves as a benchmark for various stakeholders, including financial markets and consumers, thereby influencing overall economic sentiment.
The decision-making process within the RBI involves thorough analysis and deliberation among the Monetary Policy Committee (MPC) members. The MPC, comprising six members, meets every two months to assess economic indicators such as GDP growth, inflation trends, fiscal policies, and global economic conditions. Key factors influencing their decisions include aggregate demand levels, fiscal developments, and external shocks—such as trade tensions exemplified by Trump’s tariff wars—which can have significant repercussions on domestic inflation and growth prospects.
Adjustments to the repo rate—the rate at which the RBI lends money to commercial banks—are among the most effective tools for managing liquidity and controlling inflation. A hike in the repo rate typically aims to curb inflation, while a reduction may spur growth by encouraging borrowing and investment. Thus, the RBI’s monetary policy framework is a dynamic and responsive mechanism, carefully calibrated to promote stable inflation and sustainable economic advancement.
Current Economic Environment in India
The economic environment in India is characterized by a mix of evolving challenges and opportunities. As of the latest reports, India’s GDP growth rate has shown resilience, yet it remains under scrutiny due to varying external influences, particularly the ongoing tariff wars initiated by global powers, including the United States. Forecasts indicate a GDP growth rate hovering around 6-7% for the upcoming fiscal year, a slight moderation from previous years, reflecting both domestic and international economic dynamics.
Inflation rates have emerged as a critical concern for policymakers, with fluctuations observed in recent months. Current data reveals that the inflation rate is moving toward the upper threshold of the Reserve Bank of India’s (RBI) target, largely driven by factors such as rising commodity prices and supply chain disruptions. The RBI’s task of maintaining price stability becomes increasingly complex as it balances the need to stimulate growth while curbing inflationary pressures.
Employment statistics indicate a mixed scenario, with certain sectors rebounding while others face ongoing challenges. The rate of unemployment has remained relatively stable but highlights the underemployment in various segments of the economy. The agricultural sector, which employs a significant portion of the workforce, faces unique challenges that impact overall economic productivity and stability.
This multifaceted economic landscape is compounded by global uncertainties that affect foreign investment and trade. As the RBI considers its monetary policy stance, it must navigate these intricate challenges. The central bank’s decisions regarding the repo rate are influenced by these economic indicators, as evolving market conditions require responsive and adaptive strategies. The interplay of domestic economic factors and global pressures continues to shape the RBI’s policy framework, highlighting the need for careful economic stewardship during these unpredictable times.
Future Projections for Repo Rate
As global economic dynamics shift, particularly in response to geopolitical tensions and trade policies, the trajectory of the repo rate in India has become a focal point of analysis for economists and financial experts alike. The Reserve Bank of India (RBI) has consistently utilized the repo rate as a key monetary policy tool to regulate liquidity, inflation, and overall economic stability. Given the current climate, marked by trade disputes and tariffs introduced under the leadership of global politicians, including the U.S. administration, projections for the repo rate are both complex and layered.
Analysts are closely monitoring several variables that could influence the RBI’s decision-making regarding the repo rate. For instance, ongoing trade tensions, especially those stemming from tariffs, may lead to a fluctuation in import prices, thereby impacting domestic inflation rates. Should inflation rise significantly beyond the RBI’s target range, the central bank may opt to increase the repo rate to stabilize prices. Conversely, if trade tensions ease, leading to improved economic conditions, there could be room for a reduction in the repo rate to stimulate growth.
Also read : India’s Commitment to Strengthening Bilateral Trade with the US Amid Tariff Concerns
Additionally, the overall health of the Indian economy plays a critical role in shaping future repo rate decisions. Indicators such as GDP growth rates, employment figures, and consumer confidence will inform the central bank’s approach. Some experts predict a cautious stance this year, emphasizing that the RBI will likely adopt a wait-and-see approach until more data is available. This strategy allows policymakers to remain flexible and responsive to rapid changes in both domestic and international markets. In essence, the future of the repo rate will not only be dictated by internal economic metrics but also by the broader geopolitical landscape that influences global trade.
Reactions and Opinions from Economists and Analysts
The recent remarks made by the Reserve Bank of India (RBI) Governor concerning the repo rate amidst the challenging landscape of global trade, particularly in light of President Trump’s tariff maneuvers, have stirred a significant discourse among economists and market analysts. Diverse opinions have emerged, reflecting the complexity of the current economic climate and the nuanced implications of monetary policy.
Some economists commend the RBI Governor’s decision to maintain a cautious approach regarding the repo rate, emphasizing the potential volatility introduced by external factors such as tariffs and international trade disputes. They argue that a steady policy stance could provide much-needed stability in an uncertain environment, fostering consumer and investor confidence. This perspective aligns with a macroeconomic philosophy prioritizing economic stability over aggressive rate changes. Advocates of this view suggest that maintaining the current repo rate will effectively mitigate inflationary pressures while ensuring that economic growth remains on track.
Conversely, there are analysts who contend that a more proactive adjustment of the repo rate may be warranted to stimulate economic activity. They argue that with domestic growth lagging, there exists an opportunity for lowering rates to promote lending and investment. From this viewpoint, the RBI should adopt a more flexible stance, adapting quickly to the unfolding economic challenges posed by global dynamics. This school of thought underscores the need for the RBI to balance inflationary controls with economic growth objectives, demonstrating a willingness to intervene aggressively when necessary.
Moreover, there are speculations on how these differing views could influence market sentiment and the overall economic trajectory. While some anticipate that a stable repo rate may prevent excessive market fluctuations, others warn of a missed opportunity for momentum in an underperforming economy. In conclusion, the mixed reactions reflect the complexity of economic forecasting in the face of uncertain global trade scenarios and the difficult decisions facing the RBI as it navigates these turbulent waters.
Summary: Lessons Learned from the Current Economic Climate
As we reflect on the current economic climate shaped by various global factors, particularly the impact of tariff wars and monetary policy adjustments, it becomes increasingly clear that the interplay between domestic economic strategies and international trade dynamics is pivotal. The recent actions taken by central banks, highlighted by the Reserve Bank of India’s stance on the repo rate, serve as a reminder of the intricate balance policymakers must maintain in responding to external pressures without compromising domestic economic stability.
This period has revealed several critical lessons for both policymakers and economic analysts. Firstly, the necessity for vigilance in monitoring international developments cannot be overstated. With global markets interconnected, external shocks, such as tariff implementations, can have cascading effects on domestic economies. Therefore, a proactive approach, characterized by timely adjustments to monetary policy, is essential in mitigating potential adverse impacts. It encourages central banks to embrace flexibility in their strategies while maintaining a clear focus on the overriding objectives of economic growth and stability.
Additionally, communicating effectively with the public and market participants about policy decisions is paramount. Transparency fosters trust and ensures that stakeholders have a comprehensive understanding of the economic landscape. By elucidating the rationale behind decisions pertaining to repo rates and other monetary measures, bank authorities can better manage expectations and enhance economic confidence. Furthermore, collaboration across different sectors of the economy can help in creating a cohesive response to the challenges posed by global trade conflicts, further safeguarding national interests while promoting growth.
In conclusion, understanding the lessons derived from today’s economic conditions equips policymakers with the tools necessary to navigate future uncertainties. The commitment to remaining adaptable and responsive remains crucial for the resilience of economic frameworks in an increasingly volatile global environment.
Breaking News
India offered zero tariffs—an overdue move that may reshape global trade and backfire strategically
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 ForwardConsequence 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.
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.
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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
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.
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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.
Business
Musk’s companies sue Apple and OpenAI — explore six dramatically bold antitrust moves, market stakes, and legal showdown details in full
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US,Aug.26,2025:The complaint argues this arrangement stifles innovation in generative AI, reduces user choice, and protects Apple’s smartphone dominance, thereby shutting out Grok and other rivals despite their merit
Musk’s companies sue Apple and OpenAI
Musk’s companies sue Apple and OpenAI—this bold move emerged on August 25, 2025, when X Corp. and xAI, both owned by Elon Musk, filed a federal lawsuit in Texas, alleging that Apple and OpenAI are colluding to undermine competition in AI and smartphone markets.
What Exactly Are Musk’s Companies Accusing Apple and OpenAI Of?
According to the lawsuit, Apple integrated OpenAI’s ChatGPT into iPhones via Apple Intelligence, giving it unfair preferential treatment—especially elevating ChatGPT in App Store rankings, effectively sidelining competitors like xAI’s Grok.
The complaint argues this arrangement stifles innovation in generative AI, reduces user choice, and protects Apple’s smartphone dominance, thereby shutting out Grok and other rivals despite their merit. Musk’s companies are seeking a permanent injunction against alleged anticompetitive tactics and are demanding billions in damages.
Who Filed the Lawsuit and Where Was It Filed?
The legal action was filed by X Corp. (formerly Twitter) and xAI in the U.S. District Court for the Northern District of Texas. The suit portrays both Apple and OpenAI as monopolists conspiring against growing challengers in AI.
OpenAI has dismissed the lawsuit as typical of Musk’s “ongoing pattern of harassment,” while Apple has not issued a public response yet.
Why This Antitrust Battle Matters Globally
This lawsuit is more than a headline—it’s a high-stakes clash at the crossroads of AI, mobile integration, and market fairness. If proven, it may reshape how tech giants integrate AI in core operating systems and platforms. Governments and competitors are closely watching whether this signals a new era of litigation-driven market regulation.
OpenAI, Apple, and Broader Tech Commentary
- OpenAI: Characterized Musk’s lawsuit as harassment rather than a credible legal claim.
- Apple: Has yet to comment publicly on the litigation.
Media sources frame the case as another chapter in the prolonged feud between Musk and Altman (OpenAI’s CEO), and note the parallel with U.S. DOJ scrutiny of Apple’s monopolistic practices.
What’s Next? Legal Stakes, Market Impact & Watchpoints
- Court proceedings: Expect pre-trial motions and discovery to define the shape of the case.
- App Store dynamics: A ruling could alter how AI apps are promoted on iPhones.
- Damages and remedies: Musk seeks substantial compensation and structural changes—potentially setting precedent for future antitrust suits.
- Industry reverberations: Rival AI developers may find new hope or caution, depending on outcome.
Musk’s companies sue Apple and OpenAI marks a dramatically bold escalation in the tech industry’s antitrust landscape. With wariness around App Store dominance and AI integration, this lawsuit could recalibrate how giants operate and how challengers compete. The global tech community will be watching closely as this case unfolds.
Let me know if you’d like a deeper dive into the legal filings, spin from each party, or implications for developers and regulators!
Business
US imposes 25% extra tariff on India—learn about the shocking market reaction, export scramble, economic fallout and India’s bold diplomatic stance
Contents
US, Aug.26,2025:With the new tariff deadline looming, exporters in key sectors—diamonds, textiles, seafood—are hurriedly dispatching shipments to the U.S. to beat the surcharge
US imposes 25% extra tariff on India
US imposes 25% extra tariff on India, confirmed in a public notice from the U.S. Department of Homeland Security, is slated to come into effect at 12:01 am EDT on August 27, 2025.
This decision raises the overall duty on Indian imports to a staggering 50%, doubling the baseline and marking one of the steepest trade levies ever imposed by Washington.
Why the US Imposed the Extra 25% Tariff on India
The executive action stems from Executive Order 14329, signed by President Donald Trump, targeting nations seen as indirectly enabling Russia’s economy—namely, through the purchase of Russian oil
While India isn’t the only country importing Russian crude, critics argue it’s bearing one of the harshest responses.
Financial Markets and Currency Shock
Indian financial markets reacted sharply:
- The rupee plunged, approaching its historic low—trading around ₹87.80 to the dollar.
- Indian equity indices, including Nifty 50 and Sensex, erased August gains, declining about 0.7%, with export-linked sectors hit hardest.
Market watchers now await a possible Reserve Bank of India intervention to stabilize currency volatility, especially since India holds robust $695 billion in forex reserves.
Exporters Race to Ship Before Tariff Hits
With the new tariff deadline looming, exporters in key sectors—diamonds, textiles, seafood—are hurriedly dispatching shipments to the U.S. to beat the surcharge.
Still, once the extra 25% levy kicks in, 55% of India’s $87 billion exports to the U.S. could be severely affected, potentially shrinking exports by 20–30% starting September.
Anticipated Economic Fallout for India
Economists estimate the impact may include:
- A 0.8 percentage point drop in GDP growth.
- Loss of competitiveness in labor-intensive industries like textiles, gems & jewelry, auto parts.
- Risk to the shift in global supply chains, as firms lose confidence post this punitive escalation.
Some sectors like pharmaceuticals and rare-earth minerals may be exempt, but the broader hit is widespread.
India’s Defensive Strategy & Official Response
India’s response has been robust:
- The government labeled the measure “unjustified, unfair, and unreasonable”.
- Industry bodies are exploring diversification to markets like China, the Middle East, and Latin America.
- Prime Minister Modi reaffirmed the nation’s resilience: “We will bear any pressure without harming our farmers, shopkeepers, and small producers”.
- Relief measures and export incentives are underway to buffer impacted sectors.
Diplomatic Fallout & Trade Realignment
The broader implications are profound:
- Relations have hit their lowest point in years, jeopardizing strategic alignments like the Quad.
- Analysts label this the “worst crisis in two decades” of U.S.–India ties.
- Pivoting away from reliance on U.S. markets may spur long-term trade realignment, possibly strengthening ties with Russia, China, or regional partners.
US imposes 25% extra tariff on India—pushing total duties to 50%—has ignited a financial storm: rupee dive, stock slumps, and frantic exporter action. With serious economic reverberations, India counters with resilience and trade recalibration. The broader U.S.–India strategic partnership now hangs in the balance, prompting urgent reconsideration of global alliances.
Contents
Russia, Aug.25,2025:India categorically rejected the pressure. The Ministry of External Affairs labeled U.S. tariffs “unfair, unjustified, and unreasonable
best deal oil purchases India in focus
best deal oil purchases India — this phrase captures India’s firm, economy-driven stance: buying oil from the most advantageous sources despite mounting pressure. As global energy tensions rise, India’s strategy underscores the nation’s dedication to energy security for its 1.4 billion people.
India’s Energy Landscape
Rising Energy Demands
India imports nearly 85% of its oil, consuming around 5.5 million barrels per day. Cost-effective supply is vital to manage inflation, fuel subsidies, and industrial costs.
Global Dynamics & Shift to Russian Oil
Following Western sanctions on Moscow after 2022’s Ukraine invasion, Indian imports of discounted Russian crude surged. At times, these accounted for around 40% of India’s total imports.
US Tariffs and Indian Response
Trump’s 50% Tariffs & Strategic Pressure
President Trump escalated tariffs on Indian goods: an initial 25% “reciprocal” duty followed by an additional 25% tied to its Russian oil imports—bringing total tariffs to 50%, among the highest globally.
India Pushes Back: “Best Deal Oil Purchases India”
India categorically rejected the pressure. The Ministry of External Affairs labeled U.S. tariffs “unfair, unjustified, and unreasonable,” affirming that energy procurement is a sovereign matter grounded in national interest.
India’s Defense: Diplomacy & Economic Realism
Ambassador Vinay Kumar’s TASS Interview
Ambassador to Russia Vinay Kumar emphasized that Indian firms will continue buying oil from wherever they secure the best deal, prioritizing commercial viability and national interest:
- “Our objective is energy security for 1.4 billion people… our cooperation with Russia… has helped bring stability to global oil markets.”
- He condemned U.S. tariffs as “unfair, unreasonable and unjustified,” affirming India’s autonomy in energy decisions.
- Payments for Russian oil are seamless through national currency arrangements.4.2 External Affairs Commentary
EAM S. Jaishankar wryly remarked, “It’s funny—people from a pro-business American administration accusing others of doing business.” He added pointedly:
“If you have an issue buying oil from India, don’t. Nobody forces you to. Europe and America both buy.”
Strategic Implications & Trade Maneuvers
India Resumes Russian Oil Imports
Despite initial pause in July, Indian Oil and BPCL resumed buying Russian crude for September and October, spurred by widening discounts (around $3/barrel on Urals grade).
Broader Energy Diversification
India is also exploring alternatives: Iraq, Saudi Arabia, UAE, the U.S., West Africa, Guyana, Brazil, and Canada are being tapped to reduce dependence and enhance supply resilience.
Global Reactions & Strategic Fallout
Voices in the U.S. & Geopolitical Stakes
Critics argue Trump’s tariffs could weaken the U.S.-India partnership, especially within the Quad framework. Former Australian PM Tony Abbott warned the move risks undermining alignment against China.
FT commentators highlighted the inconsistency: India faces penalties while the U.S. and EU continue energy trade with Russia.
Russia’s Firm Support
Russia expressed readiness to expand trade with India in light of U.S. tariffs. Charge d’Affaires Roman Babushkin affirmed: “Friends don’t behave like that,” criticizing Washington’s actions as unfair.
Why best deal oil purchases India matters
The phrase best deal oil purchases India embodies India’s calculated response to geopolitical coercion—prioritizing energy security, market dynamics, and strategic autonomy. While the U.S. escalates tariff pressure, India remains resolute, pursuing affordable, diversified energy sources in line with its national imperatives.
Business
India-Russia Oil Dispute laid bare — 7 bold truths as Jaishankar slams U.S. accusations at the World Leaders Forum
Contents
New Delhi, Aug.23,2025:Jaishankar’s pointed comeback—“If you don’t like it, don’t buy it”—served as a powerful assertion of India’s right to independent trade decisions
India-Russia Oil Dispute: Unpacking the Buzz
The India-Russia Oil Dispute erupted into the spotlight when U.S. officials accused India of profiting from Russian oil—alleging that India had become a refining “laundromat,” indirectly funding Russia amid the Ukraine war. At the Economic Times World Leaders Forum 2025, External Affairs Minister S. Jaishankar responded forcefully, defending India’s sovereign energy choices.
“If you don’t like it, don’t buy it” — Sovereignty First
Jaishankar’s pointed comeback—“If you don’t like it, don’t buy it”—served as a powerful assertion of India’s right to independent trade decisions. He criticized those in a “pro-business American administration” for meddling in India’s affairs.
Energy Strategy Is Global, Not Just Indian
Beyond national priorities, Jaishankar emphasized that India’s Russian oil purchases also contributed to global energy stability. In 2022, amidst surging prices, allowing India to import Russian crude helped calm markets worldwide.
Tariffs and Trade Talks — India Holds the Red Lines
With the U.S. imposing up to 50% tariffs on Indian goods tied to energy policy, Jaishankar reiterated that while trade discussions with Washington continue, India will not compromise on protecting farmers, small producers, and its strategic autonomy.
Double Standards—Not Just About India
Jaishankar called out the hypocrisy in targeting India alone. Critics have ignored that larger energy importers, including China and the EU, have not faced similar reproach for their Russian oil purchases.
No Third-Party in Indo-Pak Ceasefire
Amid U.S. claims of mediating the 2025 India–Pakistan ceasefire, Jaishankar made it clear that India rejects any third-party intervention. A national consensus has existed for over 50 years—India handles its ties with Pakistan bilaterally.
Operation Sindoor and Direct Military De-escalation
Regarding Operation Sindoor, launched after the April 22 Pahalgam attack, Jaishankar confirmed that the cessation of hostilities resulted directly from military-to-military discussions. There were no links to trade or external pressure.
U.S. Ceasefire Claims and Indian Rebuttal
While the U.S. touted its role in brokering the ceasefire—via President Trump, VP Vance, and Secretary Rubio—India maintained the outcome was reached bilaterally and without diplomatic backdoor deals.
What Lies Ahead for the India-Russia Oil Dispute?
The India-Russia Oil Dispute unveils deeper geopolitical crosscurrents. It reflects India’s balancing act—asserting sovereignty over energy choices while defending national interests in the face of mounting foreign pressure. Simultaneously, India’s unwavering stance on ceasefire diplomacy reinforces its preference for autonomy over dependency. As global tensions simmer and trade spat heats up, India’s resolve and strategic clarity remain unmistakable.
Contents
India, Aug.23,2025:India ranks as OpenAI’s second-largest market by user numbers, with weekly active ChatGPT users having roughly quadrupled in the past year. Recognizing this explosive user base, the company recently rolled out an India-specific
The Big Announcement
OpenAI opening India office was confirmed by CEO Sam Altman, who stated the company will launch its first office in New Delhi by the end of 2025. He emphasized that building a local team in India aligns with OpenAI’s commitment to making advanced AI accessible and tailored for India, and with India.
Why India Matters to OpenAI
India ranks as OpenAI’s second-largest market by user numbers, with weekly active ChatGPT users having roughly quadrupled in the past year. Recognizing this explosive user base, the company recently rolled out an India-specific, affordable ChatGPT plan for ₹399/month (approx. $4.60), aiming to expand access among nearly a billion internet users.
Local Hiring and Institutional Setup
OpenAI has legally registered its entity in India and initiated local hiring. The first set of roles includes Account Directors for Digital Natives, Large Enterprise, and Strategics, indicating focus across multiple business verticals. Pragya Misra currently leads public policy and partnerships locally, with the office slated for deepening collaborations with enterprises, developers, and academia.
Policy and Government Synergies
The move aligns with the India government’s IndiaAI Mission, aimed at democratizing AI innovation. IT Minister Ashwini Vaishnaw welcomed OpenAI’s entry, citing India’s talent, infrastructure, and regulatory backing as key enablers for AI transformation.
Competition and Regulation
Despite strong growth, the journey isn’t without challenges:
- OpenAI faces stiff competition from Google’s Gemini and Perplexity AI, both offering advanced AI features for free to attract users.
- Legal challenges persist. Media outlets and publishers allege unauthorized use of content for AI training—a claim OpenAI denies.
- Internal caution: India’s Finance Ministry has advised employees to avoid AI tools like ChatGPT over data confidentiality concerns.
What This Means for Indian AI Ecosystem
The OpenAI opening India office initiative promises:
- Localized AI services tailored to India’s linguistic, educational, and enterprise needs.
- Stronger collaboration with government, academia, and startups.
- A potential shift in regulatory discourse through local presence—making engagement more proactive.
- Acceleration of digital inclusion across demographics through affordable AI access.
The OpenAI opening India office announcement signals more than expansion—it’s a bold stride toward embedding AI in India’s innovation DNA. With localized services, deeper partnerships, and affordability at its core, OpenAI aims to empower India’s digital future, even as it navigates regulatory scrutiny and market rivalry.
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