Business
As Trump’s Tariffs Take Effect, How India Has Toughened Up To Tackle The Challenge
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PM Modi has already outlined a new strategy to stand up to the US, vowing no compromise on protecting India’s agro- and labour-intensive sectors in any new trade agreements
India is resilient and prepared to confront challenges in the face of the massive tariffs imposed by President Donald Trump, sources said. File image/PTI
The message from the Narendra Modi government to the world, and particularly to Indian citizens and the United States, is clear: India is resilient and prepared to confront challenges in the face of the massive tariffs imposed by President Donald Trump. Citing its history of emerging stronger from crises like post-nuclear sanctions and the recent Covid-19 pandemic, the government asserts that India’s economic fundamentals remain robust, making it one of the world’s fastest-growing major economies.
This confidence is reflected in the positive assessments from global rating agencies. S&P Global recently upgraded India’s sovereign rating, while Fitch Ratings has affirmed a stable outlook. Both agencies have projected a strong growth trajectory for India, with Fitch forecasting a 6.5% rise in the country’s GDP for the fiscal year ending March 2026.
Despite this reassuring outlook, the government is not complacent, sources said. Recognising the concerns of exporters, particularly small-scale industries involved in sectors like jewellery and textiles, the Reserve Bank of India (RBI) is closely monitoring the situation. RBI governor Sanjay Malhotra has made it clear that the central bank will not be a passive spectator if the high tariffs begin to have a substantial impact on the economy. To mitigate the effects, the RBI could potentially slash the repo rate and expedite the implementation of BASEL 3 norms, which would facilitate credit and improve ratings for exporters and other stakeholders.
In addition to monetary policy, sources said the government is also planning a reworked export package that could offer new incentives, credit lines, and protection for the export sector.
Meanwhile, India is actively diversifying its trade portfolio to counter potential market losses in the US. A significant milestone has been the signing of the India-EFTA (European Free Trade Association) agreement, which includes Norway, Iceland, and Switzerland. This agreement is set to come into effect within a month. Furthermore, negotiations with the European Union (EU) are now at an advanced stage. The government views these agreements as major opportunities, especially given that the combined trade in goods of the UK, EFTA, and EU was approximately $16 trillion in 2024, nearly one-third of the total global trade.
Several concerns have been raised by textile industries that are worried about their future. This is where a new plan is being chalked out. Sources say the government could launch an outreach programme in key textile markets to counter the impact of the 50 per cent tariffs and increase its share of exports in the global market in the coming months, with a focus on Japan, the EU, the UK, and other EFTA countries.
Prime Minister Narendra Modi has already outlined a new strategy to stand up to the US, vowing no compromise on protecting India’s agro– and labour-intensive sectors in any new trade agreements. The government’s two-pronged approach focuses on “Atmanirbharta” (self-reliance) to reduce imports and “Swadeshi” (domestic products) to create a strong market for indigenous manufacturers. The government remains confident that through these measures, India will stand strong and navigate any global economic headwinds successfully.
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als…Read More
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als… Read More
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UK investment bank Peel Hunt has given some support to under-pressure Chancellor Rachel Reeves over last week’s Budget as it said efforts to boost the London market and invest in UK companies were “positive steps”.
Peel Hunt welcomed moves announced in the Budget, such as the stamp duty exemption for shares bought in newly listed firms on the London market and changes to Isa investing.
It comes as Ms Reeves has been forced to defend herself against claims she misled voters by talking up the scale of the fiscal challenge in the run-up to last week’s Budget, in which she announced £26 billion worth of tax rises.
Peel Hunt said: “Following a prolonged period of pre-Budget speculation, businesses and investors now have greater clarity from which they can start to plan.
“The key measures were generally well received by markets, particularly the creation of additional headroom against the Chancellor’s fiscal rules.
“Initiatives such as a stamp duty holiday on initial public offerings (IPOs) and adjustments to the Isa framework are intended to support UK capital markets and encourage investment in British companies.
“These developments, alongside the Entrepreneurship in the UK paper published simultaneously, represent positive steps toward enhancing the UK’s attractiveness for growth businesses and long-term investors.”
Ms Reeves last week announced a three-year stamp duty holiday on shares bought in new UK flotations as part of a raft of measures to boost investment in UK shares.
She also unveiled a change to the individual savings account (Isa) limit that lowers the cash element to £12,000 with the remaining £8,000 now redirected into stocks and shares.
But the Chancellor also revealed an unexpected increase in dividend tax, rising by 2% for basic and higher rate taxpayers next year, which experts have warned “undermines the drive to increase investing in Britain”.
Peel Hunt said the London IPO market had begun to revive in the autumn, although listings activity remained low during its first half to the end of September.
Firms that have listed in London over recent months include The Beauty Tech Group, small business lender Shawbrook and tinned tuna firm Princes.
Peel Hunt added that deal activity had “continued at pace” throughout its first half, with 60 transactions announced across the market during that time and 10 active bids for FTSE 350 companies, as at the end of September.
Half-year results for Peel Hunt showed pre-tax profits jumped to £11.5 million in the six months to September 30, up from £1.2 million a year earlier, as revenues lifted 38.3%.
Peel Hunt said its workforce has been cut by nearly 10% since the end of March under an ongoing savings drive, with full-year underlying fixed costs down by around £5 million.
Steven Fine, chief executive of Peel Hunt, said: “The second half has started strongly, with the group continuing to play leading roles across both mergers and acquisitions and equity capital markets mandates.”
Business
Gross GST collections for November stand at over Rs 1.70 lakh crore; up 0.7 per cent – The Times of India
GST collections: The Gross Goods and Services Tax (GST) collections for the month of November came in at over Rs 1.70 lakh crore. This is a rise of 0.7%, according to official data.SBI Research in a report in November had estimated that the gross domestic GST collections may come around Rs 1.49 lakh crore for November 25 (returns of October 25 but filed in Nov’25), a YoY growth of 6.8%.“Coupled with Rs 51,000 crore of IGST and cess on Import, the November GST collections thus could cross Rs 2.0 lakh crore, driven by the peak festive season demand led by lower GST rate and increased compliance while most of states experience positive gains,” SBI Research had said.This story is being updated
New Delhi: Several crucial deadlines have been extended in December 2025, including ITR for tax audit cases, ITR filing and PAN and Aadhaar linking. These deadlines will be crucial in ensuring that your financial affairs operate smoothly in the months ahead.
Here is a quick rundown of the important deadlines for December to help you stay compliant and avoid last-minute hassles.
ITR deadline for tax audit cases
The Central Board of Direct Taxes has extended the due date of furnishing of return of income under sub-Section (1) of Section 139 of the Act for the Assessment Year 2025-26 which is October 31, 2025 in the case of assessees referred in clause (a) of Explanation 2 to sub-Section (1) of Section 139 of the Act, to December 10, 2025.
Belated ITR filing deadline
A belated ITR filing happens when an ITR is submitted after the original due date which is permitted by Section 139(4) of the Income Tax Act. Filing a belated return helps you meet your tax obligations, but it involves penalties. You can only file a belated return for FY 2024–25 until December 31, 2025. However, there will be a late fee and interest charged.
PAN and Aadhaar linking deadline
The Income Tax Department has extended the deadline to link their PAN with Aadhaar card to December 31, 2025 for anyone who acquired their PAN using an Aadhaar enrolment ID before October 1, 2024. If you miss this deadline your PAN will become inoperative which will have an impact on your banking transactions, income tax return filing and other financial investments.
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