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Indian Express
2 days ago
- Business
- Indian Express
Indian negotiators extend US stay in attempt to seal an interim trade deal
With the US reciprocal tariffs pause set to run out on July 9, Indian trade negotiators are learnt to have extended their visit to Washington in a bid to resolve differences, particularly over sensitive issues such as agriculture, and to finalise negotiations for an interim trade deal. The ongoing round of talks assumes significance as the US has announced the conclusion of talks with China that had begun much later than those with India but have resulted in a significant easing of tensions between the two countries. Indian businesses had begun benefitting from the steeper duties imposed on Chinese products compared to those on Indian goods. While India is seeking the elimination of reciprocal tariffs and additional duties such as those on steel, aluminium, and auto components — along with assurances that no future tariffs will be imposed — the US is seeking a broad-based opening of Indian sectors, from automobiles and whisky to agricultural items such as apples, corn and soya among others. Sources aware of the talks said trade officials discussed rules of origin in the textile trade during the last round in India, where India is seeking lower tariffs in the US similar to those offered to other FTA partners. Labour-intensive sectors such as textiles and footwear are among India's top demands. Tense discussions on agricultural items come amid strong US demands to open the Indian market to genetically modified (GM) products and to remove regulations that require dairy products intended for food to be derived from animals not fed with internal blood meal. Finance Minister Nirmala Sitharaman, in an interview to The Financial Express which was also published in The Indian Express Monday, said that agriculture and dairy were among the 'very big red lines,' where a high degree of caution had been exercised in the talks with the US. 'Yes, we would love to have an agreement, a big, good, beautiful one; why not?' Sitharaman said. Last week, President Donald Trump said the US and India 'may' sign a 'very big' trade deal, under which India would 'open up'. Meanwhile, Ashwani Mahajan, National Co-Convener of the Swadeshi Jagaran Manch (SJM), in a social media post Monday, said India's 'agriculture and small industries' cannot be sacrificed for US interests. 'No matter what US President Donald Trump says, there cannot be a trade deal with the US, because India cannot give what America is asking for. How can India accept that America's GM and other agricultural products be allowed to enter the country? That India should allow non-veg milk and dairy? How can the country's agriculture and small industries be sacrificed at the altar of America's stubbornness?' Mahajan said. Indian officials have indicated that diversifying oil and defence procurement is in the country's strategic interest, and that sourcing more from the US could significantly help bridge the goods trade gap. The Indian Express had reported earlier that India's oil imports from the US jumped over 270 per cent year-on-year in the first four months of 2025, underscoring Delhi's strategy of boosting American imports amid trade pact negotiations and diversifying crude oil sources in a volatile geopolitical and geo-economic environment. Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, covering policy issues related to trade, commerce, and banking. He has over five years of experience and has previously worked with Mint, CNBC-TV18, and other news outlets. ... Read More
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Business Standard
3 days ago
- Business
- Business Standard
India open to 'big, beautiful deal' with US, says FM Nirmala Sitharaman
With the July 9 deadline to avoid US tariffs approaching, the Centre appears ready to push for a mutually beneficial trade agreement with the US — while drawing firm boundaries on issues critical to its domestic interests. During a conversation with The Financial Express, Finance Minister Nirmala Sitharaman emphasised that India is not averse to striking a comprehensive trade pact with the United States, provided the nation's core concerns, especially regarding farmers and livestock producers, are respected. 'We would love to have an agreement, a big, good, beautiful one; why not?' Sitharaman said, responding to President Donald Trump's recent claim that a bilateral trade agreement with India would 'open up' its markets to US products. Agri and dairy sectors are 'very big red lines', says FM Speaking about the ongoing negotiations, Sitharaman made it clear that while India seeks to boost its economic ties with strong global economies like the US, it will not compromise on areas that affect vulnerable domestic sectors. 'At the junction we are in, and given our growth goals and ambition to be Viksit Bharat by 2047, the sooner we have such agreements with strong economies, the better they will serve us,' the Finance Minister said, as quoted by The Financial Express. She underlined that agricultural and dairy sectors remain 'very big red lines' in the bilateral trade agreement talks, suggesting that India has taken a cautious approach to safeguard the livelihoods of millions dependent on these sectors. Trump's 'big beautiful' Bill moves forward The US President's economic agenda took a step forward as Senate Republicans cleared a procedural hurdle for his proposed 'Big Beautiful Bill' on Saturday. The package — featuring tax cuts, fiscal tightening, and a focus on border enforcement — still faces challenges before final approval. In a narrow 51-49 vote, the Senate agreed to begin formal debate on the 940-page Bill. US Vice President JD Vance was on standby to break a potential tie, although his vote was not required. Notably, two Republican senators broke ranks and voted against the motion, aligning with the Democrats. Tax cuts, deficit concerns Central to Trump's plan is an estimated $3.8 trillion-$4 trillion in tax cuts, including the extension of 2017 tax rates and new proposals like exempting tips from taxes. Republicans argue the Bill is essential to avoid automatic tax hikes when Trump's previous tax breaks expire in December. However, a recent analysis by the Congressional Budget Office revealed troubling projections. If enacted, the Bill could lead to 11.8 million more uninsured Americans by 2034 and swell the national deficit by $3.3 trillion over the next decade, Associated Press reported. The Bill has also sparked divisions within the Republican ranks. Some lawmakers are pressing for sharper reductions, especially in healthcare spending, leading to a rare cautionary note from Trump himself. Provisions include eliminating billions in green energy subsidies — something Democrats warn could cripple wind and solar sectors — and cutting $1.2 trillion primarily from Medicaid and food stamp programmes by tightening eligibility and enforcing work mandates. The proposed legislation also allocates $350 billion toward national and border security, including enhanced deportation measures. This portion of the Bill would be partly funded by imposing new fees on immigrants.
Indian Express
3 days ago
- Business
- Indian Express
Nirmala Sitharaman: ‘Economic buoyancy can't be overstated; else, we wouldn't have been where we are'
From welcoming the idea of the India-US trade deal to a raft of 'second-generation reforms' to be unleashed soon, Union Finance Minister Nirmala Sitharaman in a free-wheeling interview with The Financial Express . Excerpts: How difficult is it for a sovereign country like India to put up with President Donald Trump's unilateral statement that the US will 'open up' our economy, when the trade talks are just underway? In fact, I would like to see it also from the Indian side. The US is one of our leading trade partners, topmost, if anything. At the junction we are in, and given our growth goals and ambition to reach Viksit Bharat by 2047, the sooner we have such agreements with strong economies, the better they will serve us. So, I'd rather put my own statement on (Trump's): 'Yes, I'd love to have an agreement, a big, good, beautiful one; why not?' But, what are the red lines India has drawn? The negotiating team ensured that industry's concerns were all taken on board before they sat at the table for talks. Agriculture and dairy have been among the very big red lines, where a high degree of caution has been exercised. There are some areas where one can always look at, seek greater market access for us, and also open up. Even in agriculture, there're areas with little or no domestic vulnerabilities… Possibly. But that (opening them up) is only with the consent of the department agriculture. There's no way we could do anything that which would weaken our agriculture, our farmers' positions. You had reiterated recently that, 'tariff king' tag doesn't befit us. Our applied tariffs are mostly low… We have only eight duties, inclusive of zero tariff. There have been drastic cuts of tariffs in the July (main) and February (interim) budgets. The effective tariff rates are (lower than the limits) announced in the gazette with Parliament approval, which is itself far below the WTO boundary. So, for India to be called a tariff king and so on is absolutely unjustified. Yet, there's scope for further lowering of tariffs, without causing any harm to domestic industry… Those are the points on which the negotiators will have to work with the country concerned. So, (our) tariff being a consideration is being addressed. Sector-specific considerations on agriculture, dairy etc. are being addressed too. Other concerns of the industry — automobile units, etc. — are also being addressed with deep consultations. I will credit the Commerce Minister (Piyush Goyal) for having had consultation prior to, during, and after the completion of the negotiations. The US tariffs are already very low. Do you see any further reduction for us? For reducing duties, the US President has to go to the Congress, a time-consuming process. So they may pitch in for it (duty cut), but it has to be done after the agreement. Could it be part of the broader deal, if not the interim one? Yes, it can be. Could India offer any major relaxations to the US on the non-tariff front — IPR, data localisation, government procurement and such? Our approach has always been that the trade negotiations should not get initiated by non- tariff concerns. Issues such as environment, gender, sustainability, carbon tax, government procurement, industrial relations, haven't been strictly part of trade negotiations. But it's now become a part and parcel of the whole thing, and we therefore take well-considered discrete positions. We just can't walk into it, because India is an emerging market, with our own market requirements. On government procurement, a lot of carve-outs have to made, to ensure purchases from MSMEs, start-ups etc. Our domestic procurement itself is very considerate towards those sections that need hand-holding. We can't open it up for someone without these concerns addressed. Manufacturing has ceded some share in GDP It's clear from the policy we announced that labor-intensive units will be given support. We have been specific that handicrafts, handmade goods etc. will get succour. So there is no way in which we are choosing between one (labour) and the other (capital/tech). Manufacturing, whether it is employment-intensive, or requires automation, policy support will be given. But these lines are becoming thin. Textiles & apparels, for instance, has conventionally been a labour- intensive sector, but it is being rapidly automated. A large knitwear unit in Tirupur, which used to employ, say, over 30,000 people, has now brought in AI to aid the production process, leading to increased productivity. A third of its workforce may now not be required to do what they were doing earlier. You cannot grudge that. But such units aren't retrenching people; rather they try to upskill them for gainful employment. A complete recast is happening even in labor-intensive industries, to the extent that traditional labels don't hold. Of course, despite this, there are some sectors where automation doesn't come in so quickly; even among a section of manufacturing units and MSMEs, automation may not be an alternative they would want at this juncture. We have to have a policy for them, to facilitate credit access to them. So the long and short of it is there is no longer the old watertight areas, the old silos are now opening up horizontally. Everybody has to be updating on their skills, and everywhere. There is fluidity in the labour market; some are becoming movable, fungible, and others, going upwards. The RBI monetary policy has gone in for not just a sharp cut in policy repo rate, but a CRR cut also. This has taken many sections by surprise, because the liquidity was already there. Some would say this showed that the RBI had a sense of foreboding, and was in a desperate move to stave off a slowdown. Now, the RBI's front-loading in the interest of growth cannot be imputed for a knee-jerk reaction. Nor is it correct to say that the RBI is doing this, as it probably sees something which we are not. Institutions such as the RBI, which have a record of good documentation don't do things that way. RBI doesn't simply undertake interest rate reduction or increase, but explains its moves in the minutes of (monetary policy meeting) in detail, and these are put out in their entirety. Investment-driven growth is inordinately delayed. Gross fixed capital formation fell to a 3-year low of 30 per cent of the GDP in FY25, whereas the aspired rate is 35 per cent-plus. How feasible is a broad-based investment cycle, which includes the MSMEs and other segments, rather than just the big corporates? There is a buoyancy in the economy, which cannot be overstated. Had it been absent, you wouldn't have remained where you are (in terms of growth), with institutions periodically updating their forecasts (S&P has recently revised India's FY26 growth estimate upward to 6.5per cent). Or you would not have generated (consistently high) GST revenues. In fact, today, people are using the GST to indicate how strongly the economy is moving forward. (GST receipts at over 7 per cent of GDP seem to have crossed VAT/excise-era levels). In GST, the data is very clearly, openly laid. You see the states and sectors where it is getting collected from. So the economy in its multifarious indicators is showing vibrancy. Of course, we would like to have higher growth, even 10 per cent, and we are only at 6.4 per cent (gross value added in FY25). But it's still 6.4 per cent and not 2-2.5 per cent, which is where Europe, and even some of the Southeast Asian countries are. So I'm not gloating at this number, but to repeatedly lamenting it is (uncharitable) given the global scenario. If Indians are working and moving the needle despite heavy odds, we should recognise it. Countries which are known for exports are no longer able to grow with such strategy. At this time, Indian exports are doing well.—FE
Indian Express
3 days ago
- Business
- Indian Express
India would love a big, beautiful trade pact with US: Nirmala Sitharaman
AS THE July 9 deadline to avoid the United States' punitive reciprocal tariffs is drawing closer, the government has hinted at uninhibited deal-making with the world's largest economy, but also made an unequivocal commitment to draw definitive red lines in the best interests of India's farmers and livestock breeders. Reacting to President Donald Trump's statement last week that an interim bilateral trade agreement (BTA) in the offing with New Delhi would 'open up' the Indian market for America, Finance Minister Nirmala Sitharaman said: 'Yes, we would love to have an agreement, a big, good, beautiful one; why not?' In a free-wheeling interview with The Financial Express, Sitharaman said: 'At the junction we are in, and given our growth goals and ambition to be Viksit Bharat by 2047, the sooner we have such agreements with strong economies, the better they will serve us.' According to the Finance Minister, agriculture and dairy have been among the 'very big red lines,' where a high degree of caution has been exercised, during the BTA talks with the US. On a perceived slowdown in investments by the private sector, she said things have started changing for the better. 'At least in the last six months, there is a clear sign that private investments and capacity expansion are happening… There is definitely surplus cash with private companies, and they're probably earning passive income. But we can see signs of change'. Asked what the government is planning to do to reverse urban slowdown, Sitharaman said the sentiment is definitely turning. 'From April, there have clearly been signs of the (positive consumer) sentiment playing out (thanks to the income tax reliefs),' she said. Sitharaman outlined a raft of 'second-generation reforms' to be unleashed soon to impart a structural push to the economy, including 'getting the banks to be better off,' and spurring private investment in nuclear energy. She also indicated that the weighted average Goods and Services Tax (GST) might come down from the current levels, as part of a restructuring of the rates and slabs of the eight-year-old comprehensive indirect tax. She stressed the need to give additional support to merchandise exports, while noting that tax content in exported products is not fully neutralised yet, with certain embedded state and local levies. 'We are looking at different dimension of reforms other than, of course, land and asset monetisation,' she said, while asserting that 'there is no going back on the three labour codes, which states are keenly taking up.' Sitharaman, who met the chiefs of public sector banks Friday for a performance review, acknowledged the issue of their deposit rates (CASA) not growing as much as they used to. 'There will be some kind of attempt by the banks to improve on this,' she said, referring to the 'tightrope walk' of bankers, as people at once want credit to become cheaper and deposits to yield better returns. 'Though banks can go to the market to raise funds, CASA was a cheap capital available,' she said, adding that challenge is compounded by the fact that retail savings are going to the stock markets at a greater pace. She said the time has come for reaching a consensus at the GST Council to design a 'very simplified and easy-to-comply' tax. 'The expectation is that (the average GST rate) will come down, and we are working on it. You can have the revenue buoyancy if the rates are low enough, and that leads to an expansion, which is a normal assumption in economics,' the minister said. In many countries that adopted GST/VAT system over recent decades, the initial rates have been lower than in India, and some of them even managed to bring down the rates further, without taking any hit to revenues. The minister's statement signals that, with buoyant GST revenues, the often-repeated demand for raising the average GST rate to the so-called revenue neutral rate (15%) was unlikely to be pursued, and rates could in general only reduce. That could provide a significant consumption booster to the economy. The minister underlined the need for all states to improve investment climate further, and cautioned that, 'otherwise investments which were coming to some parts of the country cannot reach other parts.' Sitharaman said a major step taken for energy efficiency is the plan to have small, medium, small modular nuclear reactors. 'India needs to ramp up its basic energy base itself,' she said, amid a renewed push to coal-based thermal power to meet the fast-growing peak power demand. '…solar and wind can always be the top-up.' 'The nuclear thing is getting wrapped up. The law will also have to be amended for it, which will happen sooner,' she said.- FE
News18
16-06-2025
- News18
New Proof Points To RAT Activation On Doomed Air India Flight. Here's What It Means
Last Updated: The Ram Air Turbine is a device used on aircraft to generate emergency power when the primary engines fail Did a dual engine failure lead to the tragic Air India crash in Ahmedabad on June 12 in which over 250 people were killed? New evidence in the aftermath of the AI171 crash has shed light on the sequence of events leading up to the disaster, with probe into the emergency systems aboard the aircraft suggesting that a dual engine failure may have played a significant role in the incident. According to aviation experts, the Ram Air Turbine (RAT), which was activated shortly after takeoff, could be a critical clue. WHAT IS RAT? The Ram Air Turbine is a device used on aircraft to generate emergency power when the primary engines fail. It deploys into the airstream and uses the aircraft's forward motion to generate power for essential systems, such as flight controls and hydraulics. Its activation on AI171 suggests that the plane may have faced a catastrophic loss of engine power shortly after takeoff. Depending on the aircraft and configuration, the RAT can power flight control systems, instruments, communications, hydraulic systems, and basic navigation systems. HOW/WHEN IS IT DEPLOYED? Automatic Deployment: Triggered automatically when there is a complete loss of electrical power or both engines fail. Manual Deployment: The pilot can manually deploy the RAT by activating a switch or lever in the cockpit (used if the automatic system fails). Turbine Spins in Airflow: As the aircraft moves forward, air pressure spins the RAT's small propeller. Power Generation Begins: The RAT drives an emergency generator (electrical) or hydraulic pump, restoring enough power to operate essential systems. According to a Times of India report, the Air India Dreamliner that crashed in Ahmedabad used the entire 3.5-kilometre runway for take-off—longer than the usual 2.5 to 3 kilometres typically required for that type of aircraft. No irregularities were noted before departure. An airport source confirmed there were no requests for changes in runway, engine thrust, or flap settings. Weather and visibility were stable, and ambient temperatures remained within operational norms. These conditions indicate that the take-off seemed routine, making the sudden failure shortly after liftoff—and the rapid descent that followed—all the more baffling for investigators. Aviation expert Captain Sahil Bhalla said the quick activation of the RAT on AI171 is indicative of a dual engine failure. In an interview with The Financial Express, Bhalla explained that the RAT's deployment, which occurs within seconds after the engines fail, is a clear sign that the aircraft had lost power from both engines. 'The activation of the RAT is almost instantaneous. It tells us that the aircraft was relying on emergency backup systems due to a significant loss of power," Bhalla said. Experts suggest that the dual engine failure may have been caused by mechanical issues or a fuel-related problem, which would explain the aircraft's reliance on the RAT system. The aircraft's rapid descent after takeoff and the deployment of the RAT add weight to the theory that the flight was unable to maintain altitude due to engine power loss. An interesting detail that has emerged from the crash investigation is the 'small gray dot" noticed in early images from the crash site. This dot is believed to represent the RAT in its deployed state. This observation has fuelled further speculation that the RAT may have been deployed at a critical time during the flight—right after the engines failed. As reported by Business Today, experts have suggested that this small gray dot could be a physical manifestation of the RAT's location or deployment. It's a detail that could help aviation experts pinpoint when exactly the emergency power system kicked in, adding valuable context to the timeline of the crash. WHAT HAPPENS WHEN BOTH ENGINES FAIL? In modern commercial aircraft, dual engine failure is an extremely rare event, but when it occurs, it can be catastrophic. In normal circumstances, aircraft are designed to fly and navigate with one or more engines running. When both engines fail simultaneously, no engine power is available to propel the aircraft forward, which affects aerodynamic stability. The aircraft will still retain momentum and altitude briefly, but the pilots must rely on emergency power and control systems to maintain control of the aircraft. If both engines fail, the RAT will deploy automatically, offering enough power to keep essential flight systems active, though not necessarily enough for normal flight operations. The RAT provides critical time for the pilots to regain control or land the aircraft. Immediate power loss in both engines likely would have left AI171 unable to climb to altitude safely. The RAT was deployed to provide emergency hydraulic or electrical power for essential systems like flight controls and navigation instruments, without which the aircraft could not have continued to function properly. The RAT's role in maintaining basic control systems would have been vital in helping the pilots attempt to bring the aircraft to a safe landing. But without engines, the aircraft would have struggled to regain enough lift to reach a safe altitude. WHAT MAY HAVE CAUSED THE DUAL ENGINE FAILURE? The exact cause of the dual engine failure remains unclear, but experts have been considering several potential scenarios: Mechanical Malfunctions: A failure of both engines, due to mechanical failure, could explain why the RAT was activated. If, for example, there was a fuel problem or an engine defect, this could have led to a simultaneous shutdown of both engines. Fuel-related Issues: A sudden fuel contamination or fuel starvation scenario could cause both engines to fail unexpectedly. This theory is supported by the timing of the RAT deployment, as the aircraft would have been forced to rely on emergency systems until the situation was addressed. Electrical or Hydraulic Failures: The RAT may have also been deployed due to a failure of critical electrical or hydraulic systems, which are necessary for operating the aircraft's primary functions. top videos View all The aircraft was under the command of Captain Sumeet Sabharwal, who had 8200 hours of experience, and was being copiloted by First Officer Clive Kundar, with 1100 hours of flying experience. Seconds after takeoff, the pilot issued a Mayday call before losing contact with the Air Traffic Control (ATC) and crashing into a hostel for MBBS students. About the Author Apoorva Misra Apoorva Misra is News Editor at with over nine years of experience. She is a graduate from Delhi University's Lady Shri Ram College and holds a PG Diploma from Asian College of Journalism, Chennai. More Get Latest Updates on Movies, Breaking News On India, World, Live Cricket Scores, And Stock Market Updates. Also Download the News18 App to stay updated! tags : Ahmedabad Plane Crash Location : Ahmedabad, India, India First Published: June 16, 2025, 10:28 IST News explainers New Proof Points To RAT Activation On Doomed Air India Flight. Here's What It Means | Explained
