Donald Trump tariffs to dent India’s GDP growth? Up to 30 basis points dip possible, say experts; expected trade deal could soften blow
Experts caution that the new 25% US tariff on Indian goods, coupled with potential penalties for trade with Russia, could hinder India's GDP growth and exports. Key sectors like pharmaceuticals and textiles face challenges, potentially lowering GDP by 30 basis points. Analysts hope for a trade agreement to mitigate the impact, leveraging India's strong domestic demand.from Latest Business News Today: Stock Markets, Financial News, India Business & World Business News https://ift.tt/gv296yO
The United States has imposed a 50% tariff on semi-finished copper imports, effective August 1, 2025, citing national security concerns. While India's $360 million copper exports to the US will become more expensive, the impact is expected to be limited due to uniform application across all countries.
A recent study reveals that CEO compensation in India's listed companies has surged to Rs 7.2 crore, marking a 9% CAGR over the last decade, while CFO pay reached Rs 2.3 crore. Manufacturing CEOs and service-sector CFOs lead in earnings, with northern India offering the highest executive pay. Multinational firms provide significantly higher compensation packages compared to Indian-owned companies.
EU sanctions on Russia are poised to significantly impact Indian refiners, potentially limiting their market access. An ICRA report highlights that India's petroleum product exports to the EU, which reached USD 14.3 billion in fiscal year 2025, could be affected.
Hit by EU sanctions, the Russia-backed Nayara Energy refinery in India has switched to a local IT company after Microsoft discontinued its services. Nayara, partly owned by Rosneft, is challenging Microsoft's decision in court, arguing the sanctions are affecting its operations and access to crucial data.
Wistron, the Taiwanese manufacturer, is planning a new electronics production unit in Telangana with a proposed investment of Rs 1,000 crore, focusing on servers, routers, and switches. This expansion follows Wistron's exit from its Karnataka iPhone facility and complements its Rs 1,450 crore laptop manufacturing unit in Bengaluru, slated to begin operations by January 2026.
Yantai Penglai International Airport in China has been declared the world’s most beautiful airport of 2025 by Prix Versailles awards, with its Terminal 2 standing out for its coastal-inspired design and thoughtful architecture. The list also includes airports from France, Japan, and the United States, each recognized for unique design elements and sustainability efforts.
Dubai Aerospace Enterprise (DAE) has acquired 10 Boeing 737-9 aircraft from United Airlines, expanding its modern fleet of around 750 aircraft valued at $22 billion. The fuel-efficient 737 MAX jets enhance DAE’s global leasing portfolio, which serves over 160 customers. DAE also offers comprehensive MRO services from its Amman facility, certified for 15 aircraft types with approvals from 25+ regulators worldwide.
Stock market recommendations: SBI Securities' Sudeep Shah suggests Shyam Metalics and Energy Ltd and Cipla as top stock picks for the week starting July 28, 2025. Nifty faces downward pressure due to weak triggers and earnings, while Bank Nifty shows relative strength but struggles with resistance. Technical analysis supports bullish outlooks for both Shyam Metalics and Cipla.
A consortium led by Multiples Alternate Asset Management seeks CCI approval to acquire a 32% stake in VIP Industries from the Piramal family, triggering an open offer for an additional 26% stake. Valued at ₹1,437.78 crore assuming full acceptance, the deal would shift control to Multiples, with Dilip Piramal becoming Chairman Emeritus.
Finance minister Nirmala Sitharaman indicated a potential thaw in India-China business relations, citing mutual interest in reviving economic engagement after years of tension. Following S Jaishankar's visit, both nations are exploring avenues for increased interaction and potential easing of investment restrictions. While cautious optimism prevails, progress is also noted in bilateral trade talks with the US and EU.
Union Minister Piyush Goyal announced that India will receive due recognition for its unique cultural products under the new FTA with the UK, citing the Prada-Kolhapuri chappal controversy. The government aims to protect and promote Indian GI products in global markets, with potential for significant international business.
Nayara Energy, an Indian oil refiner backed by Russia, has appointed Sergey Denisov as its new CEO, succeeding Alessandro des Dorides, who resigned due to EU sanctions targeting the company's ties with Rosneft. Despite EU pressure, Nayara remains a key private-sector refiner and fuel retailer in India, with New Delhi distancing itself from the EU's actions.
Rani Kapur, mother of the late Sunjay Kapur, has requested Sona Comstar to postpone its AGM, citing her son's death. She alleges being coerced into signing documents without understanding them during her grieving period. Kapur also expresses concerns about recent management changes and lack of transparency, seeking a delay to properly evaluate proposed resolutions and gather information.
Gold prices in India have surged past Rs 1 lakh per 10 grams. This rise worries jewellers before Raksha Bandhan and Diwali. Global factors like central bank buying and US trade issues drive prices up. Silver also sees a significant increase. Consumers are now opting for lighter or lower-karat jewellery. Investment buying in gold coins and bars remains steady.
US President Donald Trump has signaled a potential shift in trade strategy, suggesting a baseline tariff of 15% for most nations, potentially reaching 50% for countries with strained relations. This move marks a departure from pursuing individual trade agreements, with Trump indicating tariff letters as completed deals.
Infosys reported a 9% YoY increase in consolidated net profit, reaching Rs 6,921 crore for Q1, with revenue up 8% to Rs 42,279 crore. The company has revised its revenue growth guidance upward, projecting 1-3% growth in constant currency for FY26. Despite a slight dip in operating margin, Infosys secured significant deals and maintained strong cash flow.
Global shipping firms and petroleum traders are reportedly avoiding Nayara Energy, an Indian refiner, following recent EU sanctions linked to its significant stakeholder, Rosneft. Several vessels, including the Talara and Chang Hang Xing Yun, have altered course or cancelled bookings with Nayara.
Niti Aayog Vice Chairman Suman Bery highlighted India's robust economic growth as a stabilizing force amid global uncertainty at the UN. He emphasized India's commitment to the Global South, offering its development model as a replicable pathway for other developing nations. Bery also reaffirmed India's dedication to multilateralism and a more representative UN system.
The EU's upcoming ban on Russian-derived fuels, effective January 21, presents a temporary reprieve but poses challenges for Indian exporters due to its narrow classification. The EU requires proof of crude oil origin, potentially impacting fuel exports from India, a major importer of Russian oil.
Despite recent market corrections, Indian equities are still among the priciest globally, with a PE ratio of 23.3, exceeding historical averages. While fundamentals remain strong, projected ROE for FY25 is 15.6%. India's dividend yield, however, is low at 1.2%, potentially limiting appeal for income investors. Nuvama cautions that high valuations and global volatility could restrain further market upside.
Istanbul Airport has secured the top spot in Travel + Leisure's 2025 rankings. The rankings considered passenger feedback on airport facilities. Middle Eastern and Asian airports dominated the top positions. Mumbai Airport also made it to the top 10 list.
JSW Paints, part of the JSW Group, seeks CCI approval to acquire a majority stake in Akzo Nobel India for over Rs 12,915 crore. This includes purchasing a 74.76% stake and a public offer for an additional 25%. Parth Jindal highlighted the growth potential and welcomed Akzo Nobel India's brands like Dulux.
The India-EFTA Trade and Economic Partnership Agreement, signed on March 10, is set to take effect on October 1. EFTA nations pledge to invest $100 billion in India over 15 years, potentially creating one million direct jobs. In return, India will ease tariffs on EFTA exports, benefiting consumers with access to Swiss goods and opening service sectors for both regions.
The EU has intensified sanctions against Russia, targeting oil revenues with a reduced price cap of $45 per barrel and banning dealings related to the Nord Stream gas pipelines. These measures aim to constrict Russia's financial capabilities and limit its ability to fund the war in Ukraine.
India's Defence Ministry is reportedly pushing for a collaboration with France to develop next-generation fighter jet engines, aiming for self-reliance in this critical technology. The ₹61,000 crore initiative seeks to create a 120kn engine for future platforms like the AMCA.
Uncertainty surrounding ongoing India-US trade negotiations is causing India Inc to adopt a cautious approach. Businesses across sectors like electronics, textiles, and gems & jewellery are delaying decisions on export orders and new client acquisitions, awaiting clarity on potential tariff rates.
JP Associates' lenders face a dilemma with Adani Enterprises' ₹12,600 crore unconditional bid, despite other higher conditional offers from Dalmia Cement, Jindal Power, and Vedanta. These competing bids, ranging from ₹12,000 to ₹14,000 crore, hinge on resolving a land dispute.
Dixon Technologies plans a Rs 1,000 crore investment. The goal is to boost component manufacturing. This includes camera modules and precision enclosures. A joint venture with Chongqing Yuhai is planned. Dixon will also acquire a stake in Kunshan Q Tech India. These moves aim to reduce reliance on external suppliers. The company seeks long-term margins through tech-led manufacturing.
In a move hailed as a step towards healthier options, particularly for children, the US dairy industry has voluntarily agreed to remove synthetic dyes from ice cream products. US health secretary Robert F Kennedy Jr. noted the industry's positive response to eliminating harmful chemicals. Over 40 manufacturers have joined the agreement, with the FDA approving a natural alternative dye.
Reliance Infrastructure's stock has soared 101% in the past year, fueled by debt reduction and a credit rating upgrade. Technical analysis suggests a potential rise to ₹500 if momentum continues, contingent on surpassing the ₹400 resistance level.
Following the release of the AAIB's preliminary report on the Air India 171 crash, pilot associations ALPA and ICPA have voiced strong objections. ALPA criticizes the report's procedural flaws and perceived bias towards pilot error, while ICPA condemns speculative narratives suggesting pilot suicide.
Silver prices soared to an unprecedented Rs 1,14,875 per kg in futures trading, fueled by robust global cues and a weakening US dollar. Simultaneously, gold futures also experienced gains, climbing to Rs 98,138 per 10 grams amid strong spot market demand.
Costa Coffee India witnessed substantial growth in FY25, with revenue reaching Rs 198.5 crore and profit climbing to Rs 149.7 crore, fueled by expansion to 220 outlets. Despite a slight dip in gross margin and same-store sales growth, the company is aggressively expanding, targeting 40-50 new outlets annually.
India's crude oil imports from Russia surged to an 11-month high in June, reaching 2.08 million bpd, driven by refiners bolstering inventories amid geopolitical tensions. While India's overall crude imports decreased, Russian volumes increased, with three refineries processing over half of these imports and exporting refined products.
India is set to commence domestic production of rare earth magnets in Hyderabad, aiming to diminish reliance on Chinese imports. Union Minister G Kishan Reddy announced that the National Institute for Transforming Science and Materials will spearhead this initiative. This move follows China's export restrictions on rare earth materials, prompting India to accelerate its domestic production plans.
IIFL Home Finance has received $100 million from the Asian Infrastructure Investment Bank. The funding aims to expand affordable housing loans. It will support families from economically weaker sections and lower income groups. The company will finance green affordable housing projects. This initiative aligns with India's climate commitments and Pradhan Mantri Awas Yojana Urban.
To ensure timely project completion and superior construction quality, the Ministry of Roads has tightened qualification criteria for road project bids under HAM and EPC models. The revised guidelines specify higher financial prerequisites for bidders and enhanced scrutiny of sub-contracting experience.
Britain's economy faces a setback. GDP declined for the second month in May. This surprises economists who expected growth. Industrial output and construction declined. The Bank of England may cut interest rates. The Labour government needs to boost growth. Finance Minister Rachel Reeves acknowledges disappointment. The economy had a strong first quarter but temporary factors drove it.
Amidst ongoing discussions for an interim trade agreement, the US has again raised concerns at the WTO regarding India's dairy certificate requirements, deeming them unnecessary obstacles for American exports. India has also proposed retaliatory tariffs against the US on steel and aluminium.
Trade negotiations between the US and China are progressing slower than anticipated, potentially leading to extended tariff deadlines. Deadlock persists, with limited progress in finalizing a deal. China's dominance in rare earth metal supply, controlling 90% of global capacity, poses a threat to the global automobile industry, particularly electric vehicle production.
Smartworks Coworking Spaces launched its IPO, aiming to raise Rs 576-583 crore, with strong early subscription driven by retail and non-institutional investors. The company plans to use the funds for expansion and debt repayment, capitalizing on its position as India's largest managed office space provider. Despite revenue growth, Smartworks remains loss-making, but margins are improving.
The 2025 Global Life-Work Balance Index reveals that smaller economies often outperform larger ones in supporting employee well-being. New Zealand leads the ranking, excelling in paid leave, healthcare, and safety. The US lags significantly due to limited leave policies and inclusivity, while India faces challenges in healthcare and work-life balance.
Donald Trump's proposed $5 million Gold Card visa program is generating significant buzz among Indian professionals, particularly those in the tech, finance, and healthcare sectors. Despite the lack of official launch and legislative support, the initiative has attracted considerable interest.
Recent SEBI data reveals Indian retail investors suffered staggering losses of Rs 1.05 lakh crore in derivatives trading for FY25. This coincides with an investigation into Jane Street's alleged market manipulation, accused of generating Rs 36,500 crore in profits through these activities.
Jio BlackRock Asset Management has made a strong debut, raising over $2.1 billion through its initial three mutual fund schemes. Launched shortly after securing its license in May, the offering attracted significant interest from both institutional investors and retail participants.
India's real estate sector witnessed a significant rebound in Q2 2025, with institutional investments soaring by 122% to $1.80 billion, driven primarily by foreign investors targeting commercial assets. Despite this quarterly surge, overall inflows remained 42% lower year-on-year, reflecting a cautious approach amid global economic uncertainties.
In Rio de Janeiro, Finance Minister Nirmala Sitharaman engaged in high-level talks with Brics counterparts from Russia, China, Brazil, and Indonesia, reinforcing India's dedication to collaboration. Discussions spanned financial cooperation, the New Development Bank, and global growth strategies.
India is actively negotiating bilateral investment treaties with over a dozen nations to protect and promote investments, aiming to become a global manufacturing hub. These agreements offer broader investor protections enforceable by international arbitration. The goal is to rebuild India’s BIT ecosystem on modernised terms, balancing investor confidence and domestic policy space.
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