Business
India-US Trade Deal On The Horizon? What Surging Imports And Reforms Mean For The Economy
New Delhi: A high-level US trade delegation, led by Deputy US Trade Representative Rick Switzer and chief negotiator Brendan Lynch, arrived in India on December 9 to begin two days of intensive talks aimed at concluding the long-pending India-US trade deal. The discussions come at a crucial juncture, with tariffs and trade uncertainties affecting investment and exports and New Delhi working to adjust its industrial and trade policies.
The delegation’s visit shows fresh momentum in a negotiation process that has stretched over months. Commerce Secretary Rajesh Agrawal described the talks as “only a matter of time” away from a final decision. It reflects optimism in New Delhi that a deal is within reach.
India Narrows Trade Gap With Surge In US Imports
India’s goods trade surplus with the United States has shrunk considerably in recent months, showing increased imports from Washington amid high US tariffs. According to data from the Ministry of Commerce, the surplus fell from $3.17 billion in April to $1.45 billion in October.
Exports to the United States declined from $6.86 billion in August to $6.30 billion in October, while imports rose steeply from $3.6 billion to $4.84 billion. The slowdown in exports has been most visible in labour-intensive sectors such as garments, footwear and sports goods.
US Crude Gains, Russia’s Share Declines
The rise in US imports is especially notable in crude oil and liquefied petroleum gas (LPG). Following sanctions on Russian oil companies Lukoil and Rosneft, India’s share of Russian oil imports dropped from 37.88 percent to 32.18 percent between April and October.
Meanwhile, US crude accounted for 7.48 percent of India’s imports during the same period, nearly doubling from last year’s 4.43 percent.
Indian refiners also signed a one-year deal for US LPG imports last month, adding 2.2 million tonnes annually, which is close to 10 percent of India’s total LPG imports. These developments signal a strategic realignment in energy sourcing ahead of the trade deal.
Nuclear, Industrial Reforms Add Momentum
India has signalled openness to closer cooperation in nuclear power under the trade deal. Prime Minister Narendra Modi has indicated that India’s traditionally restricted nuclear sector will be opened to private participation, aligning with US interests in expanding existing plants and small modular reactors.
At the same time, India has accelerated reforms to boost manufacturing and ease tariff pressures. The government rolled back several quality control orders affecting MSMEs, removed the 11 percent duty on cotton to relieve the textile sector and implemented long-pending labour codes.
GST rate rationalisation earlier this year also eased costs for essential goods, reflecting a broader effort to make Indian industry more competitive amid international trade pressures.
Investment, Capital Flows, Currency Pressures
The uncertainty around US tariffs has affected capital flows and investment. A Bank of America (BoFA) report highlighted concerns over FDI, FPI and debt-related inflows, stating that the Reserve Bank of India (RBI) has sold $65 billion in the open market and maintained a forward position of $63.6 billion to manage pressures on the rupee.
The Indian currency has weakened roughly 7 percent over the past year, leading to a 9 percent depreciation in the real effective exchange rate. These factors highlight the urgency for a finalised trade deal and the ongoing policy adjustments by New Delhi.
Broader Trade Strategy
Beyond the United States, India has been pursuing trade agreements also with other major markets. Negotiations are underway with the European Union, New Zealand, Israel, Chile, Peru, Russia and the Eurasian Economic Union.
These efforts form part of India’s larger strategy to diversify trade and reduce dependence on markets with volatile tariffs.
As the US delegation begins its talks, both nations are poised to influence the next phase of bilateral trade. India’s policy adjustments, energy diversification and reform push indicate an intent to strengthen competitiveness, attract investment and secure its position in global trade even before a final deal is reached.
India’s budget focuses on infrastructure and defence spending and tax breaks for data-centre investments.
Source link
Business
New Income Tax Act 2025 to come into effect from April 1, key reliefs announced in Budget 2026
New Delhi: Finance Minister Nirmala Sitharaman on Sunday said that the Income Tax Act 2025 will come into effect from April 1, 2026, and the I-T forms have been redesigned such that ordinary citizens can comply without difficulty for ease of living.
The new measures include exemption on insurance interest awards, nil deduction certificates for small taxpayers, and extension of the ITR filing deadline for non-audit cases to August 31.
Individuals with ITR 1 and ITR 2 will continue to file I-T returns till July 31.
“In July 2024, I announced a comprehensive review of the Income Tax Act 1961. This was completed in record time, and the Income Tax Act 2025 will come into effect from April 1, 2026. The forms have been redesigned such that ordinary citizens can comply without difficulty, for) ease of living,” she said while presenting the Budget 2026-27
In a move that directly eases cash-flow pressure on individuals making overseas payments, the Union Budget announced lower tax collection at source across key categories.
“I propose to reduce the TCS rate on the sale of overseas tour programme packages from the current 5 per cent and 20 per cent to 2 per cent without any stipulation of amount. I propose to reduce the TCS rate for pursuing education and for medical purposes from 5 per cent to 2 per cent,” said Sitharaman.
She clarified withholding on services, adding that “supply of manpower services is proposed to be specifically brought within the ambit of payment contractors for the purpose of TDS to avoid ambiguity”.
“Thus, TDS on these services will be at the rate of either 1 per cent or 2 per cent only,” she mentioned during her Budget speech.
The Budget also proposes a tax holiday for foreign cloud companies using data centres in India till 2047.
Business
Budget 2026 Live Updates: TCS On Overseas Tour Packages Slashed To 2%; TDS On Education LRS Eased
Union Budget 2026 Live Updates: Union Budget 2026 Live Updates: Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026-27 in Parliament, her record ninth budget speech. During her Budget Speech, the FM will detail budgetary allocations and revenue projections for the upcoming financial year 2026-27. Sitharaman is notably dressed in a Kanjeevaram Silk saree, a nod to the traditional weaving sector in poll-bound Tamil Nadu.
The budget comes at a time when there is geopolitical turmoil, economic volatility and trade war. Different sectors are looking to get some support with new measures and relaxations ahead of the budget, especially export-oriented industries, which have borne the brunt of the higher US tariffs being imposed last year by the Trump administration.
On January 29, 2026, Sitharaman tabled the Economic Survey 2025-26, a comprehensive snapshot of the country’s macro-economic situation, in Parliament, setting the stage for the budget and showing the government’s roadmap. The survey projected that India’s economy is expected to grow 6.8%-7.2% in FY27, underscoring resilience even as global economic uncertainty persists.
Budget 2026 Expectations
Expectations across key sectors are taking shape as stakeholders look to the Budget for support that sustains growth, strengthens jobs and eases financial pressures:
Taxpayers & Households: Many taxpayers want practical improvements to the income tax structure that preserve simplicity while supporting long-term financial planning — including broader deductions for home loan interest and diversified retirement savings options.
New Tax Regime vs Old Tax Regime | New Income Tax Rules | Income Tax 2026
Businesses & Industry: With industrial output and investment showing resilience, firms are looking for policies that bolster capital formation, ease compliance, and expand infrastructure spending — especially in manufacturing and technology-driven sectors that promise jobs and exports.
Startups & Innovation: The startup ecosystem expects incentives around employee stock options and capital access, along with regulatory tweaks that encourage risk capital and talent retention without increasing compliance burdens.
Also See: Stock Market Updates Today
The Budget speech will be broadcast live here and on all other news channels. You can also catch all the updates about Budget 2026 on News18.com. News18 will provide detailed live blog updates on the Budget speech, and political, industry, and market reactions.
We are providing a full, detailed coverage of the union budget 2026 here, with a lot of insights, experts’ views and analyses. Stay tuned with us to get latest updates.
Also Read: Budget 2026 Live Streaming
Here are the Live Updates of Union Budget 2026:
WIRED’s Guide to Actually Fun Valentine’s Day Gifts
Between the sheets at the college Excel championships
The Information Networks That Connect Venezuelans in Uncertain Times
-
Fashion1 week agoSouth Korea tilts sourcing towards China as apparel imports shift
-
Sports5 days agoPSL 11: Local players’ category renewals unveiled ahead of auction
-
Sports1 week agoWanted Olympian-turned-fugitive Ryan Wedding in custody, sources say
-
Tech1 week agoStrap One of Our Favorite Action Cameras to Your Helmet or a Floaty
-
Entertainment1 week agoThree dead after suicide blast targets peace committee leader’s home in DI Khan
-
Tech1 week agoThis Mega Snowstorm Will Be a Test for the US Supply Chain
-
Sports1 week agoStorylines shaping the 2025-26 men’s college basketball season
-
Fashion1 week agoSpain’s apparel imports up 7.10% in Jan-Oct as sourcing realigns