Short Stories: Your Monthly Business Wrap for March

Trade Talks with Kiwis

After a decade-long hiatus, India and New Zealand have resumed negotiations for a proposed FTA that is expected to increase bilateral trade by 10 times over 10 years. Trade experts point out that duty concessions on agricultural products and dairy are likely to be sticking points during the talks. It is also uncertain if the proposed agreement would significantly benefit domestic companies as they already enjoy duty-free access to New Zealand’s market for several goods. New Zealand’s average import tariff is just 2.3%.

Jio, Allianz Seal Initial Deal

Reliance group-owned Jio Financial Services has entered into an initial agreement with German insurer Allianz SE to form an insurance business in India. Both Jio and Allianz are in the process of finalising the ownership structure. Allianz is aiming for a majority stake in the venture but is also open to securing governance rights with a path to taking control in the future, Bloomberg News reported.

Foreign Funding Under Lens

The Enforcement Directorate raided eight locations in Bengaluru linked to US billionaire George Soros’ Open Society Foundations and its investment arm, the Soros Economic Development Fund. The raids were part of a probe into alleged foreign-exchange violations. The incident comes within days of another US billionaire, Elon Musk, accusing Soros of funding anti-Tesla protests.

IIHL Takes Over RCap

A three-year resolution process came to a close with IndusInd’s IIHL acquiring the debt-ridden Reliance Capital. The value of RCap’s insurance business on a conservative basis will be around Rs 20,000 crore, IIHL chairman Ashok Hinduja has said, and the listing of its insurance companies is likely to happen after two years. The new owner is likely to exit from many of the remaining small entities in the RCap group.

Smartphone Exports Surge

Mobile-phone exports from India crossed $21bn in the first 11 months of financial year 2025, exceeding the projection by the Union Minister for Information Technology Ashwini Vaishnaw. This marks a 54% increase compared to the same period in 2024. Apple contributed over $14bn, with iPhone exports accounting for nearly 70% of total exports.

US-India Dialogue

A US delegation, led by assistant US trade representative for South and Central Asia, Brendan Lynch visited India for bilateral trade discussions. The US’ concerns extended from high tariffs on agricultural products to non-tariff barriers that restrict access to its goods and services. India has already lowered some duties, while import duties on several high-value products from the US are negligible. The meeting was a sign of Washington, DC’s commitment to its trade relationship with India, as both countries have agreed to finalise a bilateral agreement by fall of 2025.

Solar Imports Decline

As India strives to become self-reliant in solar cell and module manufacturing, estimates have revealed that their imports have declined by 20% and 57% respectively in the first eight months of 2024–25. Imports from China also decreased, from 90% to 56% for cells and to 65% for modules.

Military Spending Gets Govt Nod

The Defence Acquisition Council has given its initial approval for the purchase of equipment worth over Rs 54,000 crore. The approval includes the purchase of BrahMos missiles, Russian-origin T-90 battle tanks and anti-submarine torpedoes for the Navy. The council also approved guidelines to shorten the timelines of the defence procurement process. The new guidelines aim to reduce acquisition time from two years to six months, a move that analysts say will positively impact defence preparedness.

Tax Blow on Samsung

In one of the biggest tax demands made in recent years, India has asked Samsung to pay $601mn in back taxes and penalties for evading tariffs on import of telecom equipment. This demand comes as a huge chunk of the company’s previous year’s net profit in India. Earlier in 2023, the company received a warning for misclassifying imports to elude tariffs on an important transmission component used in mobile towers.

ATM Withdrawals to Become Expensive

Withdrawing cash from ATMs will cost Rs 2 more from May 1 with RBI increasing the interchange fee to Rs 19. Additionally, the customers will be charged Rs 7 instead of the earlier Rs 6 for checking their account balance. This hike will be applicable after customers exhaust their free transaction limit.