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.

Last Updated:August 27, 2025, 21:23 IST

Bhagwat’s remarks echoed Prime Minister Narendra Modi’s call for balancing economic self-interest with the promotion of local enterprise

Beyond economics, Bhagwat also addressed the current global situation, noting that discussions on peace, environmental sustainability, and economic inequality are ongoing, yet concrete solutions look distant. File pic/PTI

The global trade must take place and continue “voluntarily” and it should be devoid of any pressure tactics or tricks, RSS chief Mohan Bhagwat stated on Wednesday, stressing a balanced approach to global commerce. Speaking on the second day of the three-day lecture series, “100 Years of the Sangh Journey—New Horizons” in New Delhi’s Vigyan Bhawan, he elaborated on the principles of self-reliance and Swadeshi.

“International trade should happen only voluntarily, not under pressure,” said Bhagwat, adding that “self-reliance” is the key to the way forward for India.

“Aatmnirbharata (self-reliance) or Swadeshi is important. Being self-reliant does not mean stopping imports. The world functions because it is interdependent. So, export-import will continue. However, there should be no pressure in it. Swadeshi means not importing goods that we already have or can easily manufacture. We should always support local businesses. Bringing outside goods hurts local vendors,” Bhagwat explained.

The RSS chief’s remarks echoed Prime Minister Narendra Modi’s call for balancing economic self-interest with the promotion of local enterprise, highlighting the need for trade policies free from coercion.

Beyond economics, Bhagwat also addressed the current global situation, noting that discussions on peace, environmental sustainability, and economic inequality are ongoing, yet concrete solutions look distant. “For this, we must think and deliberate authentically, bring sacrifice into life, and develop balanced intellect and dharmic vision,” he said, emphasising that thoughtful action and moral grounding are essential to meaningful global change.

Mentioning India’s international conduct, Bhagwat lauded the nation’s restraint in the face of adversities. “We have always exercised restraint even in our losses. Those who caused us harm were helped in their crisis. Enmity arises from individual and national ego, but beyond ego is our Bharat or Hindustan.”

He urged Indian society to serve as a model for the world, demonstrating that ethical behaviour and measured response can build credibility and trust.

Bhagwat further underlined that the Sangh’s reputation is rooted in consistent service and societal commitment. “What the Sangh says, society listens to,” he stated, reiterating that the RSS’s credibility has been earned over decades through steadfast dedication to social welfare.

By linking self-reliance with ethical engagement, Bhagwat highlighted a vision where India not only strengthens its domestic economy but also sets a global example. The stress is on voluntary participation in trade, local empowerment, and moral leadership, creating a framework where economic growth and societal responsibility go hand in hand.

Madhuparna Das

Madhuparna Das, Associate Editor (policy) at CNN News 18, has been in journalism for nearly 14 years. She has extensively been covering politics, policy, crime and internal security issues. She has covered Naxa…Read More

Madhuparna Das, Associate Editor (policy) at CNN News 18, has been in journalism for nearly 14 years. She has extensively been covering politics, policy, crime and internal security issues. She has covered Naxa… Read More

Read More