High-Stakes Deals
The US’ economic partners are racing to close new bilateral deals in an era of heightened trade uncertainty and before US President Donald Trump’s 90-day pause on tariffs ends in early July. Tit-for-tat tariffs between the US and China have reached 145% on Chinese exports to the US and 125% on US exports to China.
Closer home, India-US trade talks are gaining momentum as India explores the possibility of an early agreement. Amid the backdrop of tariff tensions, US Vice-President JD Vance met Prime Minister Narendra Modi on a four-day visit to India. Both sides touted “significant progress” in negotiations towards a trade pact.
Rate Cut Effect
The RBI’s decision to lower the repo rate by 25 basis points for the second time since February has had a domino effect on lenders. Major banks, starting with HDFC Bank, have slashed lending rates, with SBI, Bank of India and Punjab National Bank following suit. Crucially, the RBI shifted its monetary policy stance to ‘accommodative’ from ‘neutral’, indicating the central bank may be more open to cutting rates in the future to stimulate the economy.
Teen Safety Overhaul
As part of an ongoing effort to create a safer digital environment for adolescents on its platforms, global tech giant Meta announced a new set of safety features for teen users across Instagram, Facebook and Messenger. The updates will roll out over the next few months and include expanded restrictions for users under 16, such as parental approval to go live on Instagram and expanding ‘teen accounts’ with content controls to Facebook and Messenger.
UAE, India Boost Ties
Defence collaboration and enhancing partnership in manufacturing were the centrepiece of talks between Prime Minister Narendra Modi and the visiting Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid al Maktoum. The two sides have also decided to set up an IIM, Ahmedabad campus in Dubai and the first overseas campus of the Indian Institute of Foreign Trade in Expo City, Dubai.
Bros and Business
Real estate developers and brothers Abhishek and Abhinandan Lodha have amicably resolved long-standing disputes between their companies following three months of mediation. As part of the settlement, Macrotech Developers, led by Abhishek, will retain exclusive rights to the ‘Lodha’ and ‘Lodha Group’ brand names.
In a separate development, BluSmart founders and brothers Anmol and Puneet Singh Jaggi are accused by Sebi of misappropriating funds from their listed firm Gensol Engineering and face allegations of financial misconduct.
Case for Consolidation
Fifteen regional rural banks (RRBs) across 11 states will be merged this month, under the ‘one state-one RRB’ policy. With the fourth round of mergers, the number of RRBs will reduce to 28 from the existing 43, a move that is expected to improve their efficiency and outreach. The new structure will also minimise competition among the public-sector banks that sponsor the RRBs.
Bureaucratic Rejig
In a significant reshuffle of top-level appointments, senior bureaucrat Arvind Shrivastava has been named the new revenue secretary, succeeding his role as additional secretary in the PMO. Vumlunmang Vualnam takes over as secretary, department of expenditure. He succeeds Manoj Govil, who moves to the Cabinet Secretariat. Shrivastava has worked as joint secretary in the Karnataka government and as a development officer at the Asian Development Bank.
Legal Tussle
South Korean electronics giants LG and Samsung have filed lawsuits against the Indian government to quash a policy that increases payments to electronic-waste recyclers. Both companies argue that the regulation imposes excessive financial burdens and fails to tackle the root issues within India’s e-waste sector. Companies claim that the new rules will triple costs and benefit recyclers at their expense.
Tariffs Weigh on Growth
Multilateral agencies IMF and the World Bank have cut India’s growth forecast for the current fiscal year, citing the impact of trade tensions and global uncertainty triggered by the US’ imposition of tariffs. The IMF’s revised forecast stands at 6.2%, down from its January estimate of 6.5%, while the World Bank expects growth to slow to 6.3%. The IMF has also warned that unwinding an integrated world with its interconnected supply chains and financial flows could trigger significant economic upheaval.
Safeguarding Steel
In a move aimed at supporting the domestic steel industry from low-cost imports, the government announced a 12% provisional safeguard duty on specific segments of flat steel products. Announced on April 21, the decision will be effective for 200 days. While the total volume of steel imports remains modest, the influx of cheaper imports has led to a downward pressure on domestic steel prices.
