NEW DELHI: Government is going to push for bridging the gaps on several contentious issues in trade talks with the European Union next month, while also demanding that the trading bloc offer concessions on carbon tax on the lines of the deal with the US, an official said Wednesday.“We are in the last mile, quite a few things are narrowing down. There are a handful of major issues and we are trying to narrow the gaps and then leave it to the leaders to take a political call,” the official said ahead of the next round of talks scheduled for Sept 8-12. EU commissioner for trade and economic security MaroS Šefcovicis also expected to travel to the Capital after the official level meeting to hold consultations with commerce and industry minister Piyush Goyal.Both sides have set an year-end deadline to finalise the agreement and India is keen that it fills the missing link in Europe, having signed agreements with the UK and the four nation European Free Trade Association, comprising Switzerland, Norway, Iceland and Liechtenstein.The deals are part of efforts to push for a diversified trade basket that provides Indian exporters access to crucial markets. India already has trade pacts, from Australia to Asean, the UAE and Mercosur countries, and is seeking more deals.Sources suggested that govt will help exporters diversify, with the focus expanded from 20 countries to 50, while also coming out with export promotion measures to overcome the challenge of US tariffs. Intensive consultations are lined up with exporters in the coming days.Govt officials said based on the feedback, strategies to offset the impact of the US tariffs, including support from the Centre, will be devised.Outreach in countries, including the UK, Japan, and South Korea, to push textiles exports are also planned, with similar initiatives planned for other sectors. In case of textiles for instance, 40 potential markets have been identified and in each case a targeted approach is proposed, positioning Indian companies as reliable suppliers of quality, sustainable, and innovative textile products. Official said that export promotion councils (EPCs) will be the mainstay of the diversification strategy.

New Delhi: While near-term risks to economic activity, principally exports and capital formation remain due to tariff-related uncertainties, the government and the private sector, acting in tandem and concert, can keep the disruptions to a minimum, the Finance Ministry’s ‘Monthly Economic Review’ said on Wednesday. Going ahead, the robust macroeconomic fundamentals continue to bolster the resilience of the Indian economy.

“Setbacks eventually make us stronger and more agile, if handled properly. If the near-term economic pain is absorbed more by those who have the ability and the financial strength to do so, then small and medium enterprises in downstream industries will emerge stronger from the trade imbroglio. Now is the time to demonstrate an understanding of national interest,” according to the ‘Monthly Economic Review July 2025’.

The government’s recent policy initiatives, including the setting up of a Task Force for Next-Generation Reforms and the forthcoming GST reforms, deregulation initiatives of the States, coupled with the sovereign rating upgrade, are set to reduce borrowing costs, attract foreign capital, and bolster investment and consumption.

“These reforms mark the beginning of an accelerated phase of governance transformation, ensuring that India extends its own line of progress, becoming more resilient, inclusive, and globally competitive in an era of rising global economic self-interest,” the Review further stated. The US administration has imposted a hefty 50 per cent tariffs on Indian goods, a move touted as the ‘economic blackmail’.

According to the Economic Review, robust macroeconomic performance and sound fundamentals over the past few years have earned India a well-deserved sovereign rating upgrade by the S&P credit rating agency to ‘BBB’.

“The rating upgrade underscores India’s resilient growth, anchored inflation expectations, and stronger credit metrics, underpinned by fiscal consolidation and improved quality of spending. Building on the growth momentum gained during Q1 of FY26, the Indian economy continues to reflect resilience in July 2025,” it noted.

Record e-way bill generation and a 16-month high in PMI manufacturing point to robust business activity. Further, the stronger expansion in the services PMI indicates growth in the services activity. Domestic demand remained buoyant, as reflected in FMCG sales, UPI transactions, and vehicle sales, supported by strong rural consumption, strengthening urban demand and favourable monsoon conditions.

Forward-looking surveys of the Reserve Bank of India (RBI) signal broad-based improvements in business conditions, with rising capacity utilisation, stable inventories, and optimistic expectations across manufacturing, services, and infrastructure, underscoring sustained confidence in economic activity.

Fiscal performance during Q1 of FY26 reflects a strong capex push, with robust growth in capital expenditure alongside healthy revenue growth driven primarily by non-tax receipts. In July 2025, India’s total exports (goods and services) recorded a growth rate of 4.5 per cent (YoY), driven primarily by a 12.7 per cent growth (YoY) in core merchandise exports.

As of August 08, 2025, the foreign exchange reserves stand at a comfortable level of $695.1 billion, providing an import cover of 11.4 months. “In the dynamic global trade landscape, India has adopted a calibrated approach to negotiating FTAs, aiming to expand market access while protecting domestic interests. Recently, two major agreements, the India-UK CETA and the India-EFTA TEPA, have been concluded, and negotiations continue with a few other nations,” said the Economic Review.

New Delhi: GST authorities have uncovered 61 cases of illicit tobacco products, including cigarettes and pan masala, involving unpaid taxes worth Rs 104.38 crore in the first quarter of the current financial year (Q1 FY26), government data showed. 

The cases were detected during April-June 2025 by the Directorate General of Goods and Services Tax Intelligence (DGGI) and other authorities. In addition, customs and the Directorate of Revenue Intelligence (DRI) have seized nearly 3.93 crore sticks of cigarettes so far this financial year.

Data from the DRI shows that cigarette smuggling has sharply increased between 2019-20 and 2023-24, rising by over 107 per cent in volume and more than 110 per cent in value. Experts say that heavily taxed high-margin goods like tobacco, alcohol, and gold are prime targets for smuggling and tax evasion because of their high value and steady demand.

To curb tax evasion, the government has introduced a special mechanism for manufacturers of tobacco products, including pan masala and other tobacco preparations, requiring detailed reporting of production. Amendments in the Central GST Act through the Finance Act 2025 also allow the government to implement a comprehensive track-and-trace system for certain goods, with penalties for violations.

Meanwhile, the Group of Ministers (GoM) has sent its proposal to the GST Council for two GST rates of 5 per cent and 18 per cent across all goods, which will replace the existing four slab structure. On August 21, the proposal, placed before the six-member GoM led by Bihar Deputy Chief Minister Samrat Choudhary, aims to replace the current four rates of 5, 12, 18 and 28 per cent with just two main slabs.

Earlier this month, Prime Minister Narendra Modi announced that citizens will receive a double bonus this Diwali through a planned GST reform aimed at reducing prices of goods and services for the poor and middle class.