Category Archives: trade

economy, interest rates, monetary policy, politics, trade

RBI should opt for 25bps repo rate cut, says SBI

Leave a comment

**RBI Should Opt for 25bps Repo Rate Cut, Says SBI**

*By Dwaipayan Roy | Sep 28, 2025, 04:49 pm*

A recent report by the State Bank of India (SBI) has recommended a 25 basis points (bps) cut in the repo rate for the upcoming Reserve Bank of India (RBI) monetary policy meeting. This suggestion comes amid expectations of benign inflation. However, most economists anticipate that the Monetary Policy Committee (MPC) will likely maintain the status quo when it announces its decision on October 1.

**Rate Reduction Considered the Best Option**

The SBI report described a 25bps rate cut as the “best possible option” for the RBI. This recommendation follows the central bank’s earlier actions, where it slashed the key short-term lending rate (repo) by 100bps in three installments since February, prompted by a decline in consumer price index (CPI)-based inflation.

Despite this, some experts believe the MPC may choose to maintain the current stance during its upcoming policy review meeting.

**Upcoming MPC Meeting**

The MPC, headed by RBI Governor Sanjay Malhotra, will convene for a three-day meeting from October 1 to 3 to discuss the policy rate. The meeting takes place amid ongoing geopolitical tensions and the US imposing 50% tariffs on Indian shipments.

In its August bi-monthly monetary policy review, the central bank opted to keep rates on hold while assessing how these external factors might impact India’s economy.

**Expectations and Analyst Views**

Aditi Nayar, Chief Economist at ICRA, noted that GST rationalization could lower headline CPI inflation by 25-50bps during Q3 FY2026 and Q2 FY2027. She also expects October-November 2025 to bring a new low in CPI inflation, though anticipates an upward trend thereafter.

Dharmakirti Joshi of Crisil Limited expects a repo rate cut as early as October, driven by lower-than-expected inflation and robust demand.

As the MPC meeting approaches, market watchers will keenly observe how these factors influence the RBI’s policy stance.
https://www.newsbytesapp.com/news/business/sbi-recommends-25bps-repo-rate-cut-for-upcoming-rbi-mpc/story

business, health, industry, politics, trade

UK to offer to pay more for some drugs to appease Trump, FT reports

Leave a comment

The British government is reportedly planning to offer higher payments for medicines purchased for the National Health Service (NHS), according to a report by the Financial Times on Friday. This move aims to address one of U.S. President Donald Trump’s major complaints after he announced steep tariff increases on branded medications.

British Prime Minister Keir Starmer’s chief business adviser, Varun Chandra, is expected to travel to Washington next week, the report added. Reuters was unable to immediately verify these claims.

President Trump has expressed frustration over the high cost of prescription drugs in the U.S., which are often nearly three times more expensive than in other countries. He has demanded that pharmaceutical companies lower prices in the U.S. while increasing them elsewhere. The proposed price increases in the U.K. could potentially offset the impact of U.S. price cuts on drugmakers’ revenues.

A spokesperson for the UK government did not directly confirm the Financial Times report but stated that Britain is engaged in constructive dialogue with both the U.S. and the pharmaceutical industry. “We will always put patients and taxpayers first, striking the right balance between creating an environment where this innovative sector can thrive whilst ensuring best value for money,” the spokesperson said.

Earlier on Friday, the British government announced that it was pressing the United States on pharmaceutical tariffs in hopes of achieving a beneficial outcome. This follows President Trump’s announcement of a potential 100% tariff on firms unless they establish manufacturing sites within the country.

Major British pharmaceutical companies such as AstraZeneca and GlaxoSmithKline have already set up manufacturing facilities in the U.S. and have announced plans for further investments.

The Trump administration has given drugmakers until September 29 to voluntarily lower prices for certain U.S. drugs, threatening tariffs if the president remains unsatisfied.

— REUTERS
https://thesun.my/world-news/uk-to-offer-to-pay-more-for-some-drugs-to-appease-trump-ft-reports-KL14978705

diplomacy, economy, international relations, politics, trade

Trump says Ireland and US will ‘work closely’ as new embassy opens in Washington

Leave a comment

US President Donald Trump expressed his eagerness to “work closely” with Ireland to strengthen the long-standing relationship between the two nations.

This announcement coincided with Tanaiste Simon Harris formally opening the new offices of the Irish Embassy in the United States, located in Washington, DC. The new Embassy, situated on Pennsylvania Avenue next to the White House, was warmly welcomed by President Trump, who emphasized his commitment to advancing fair trade policies and investment opportunities that benefit the citizens of both countries.

Speaking in Washington, DC, the Tanaiste and Minister for Foreign Affairs and Trade said:
“I want to thank President Trump for his kind words as we begin to write the next chapter in the great story of Ireland-US relations. These offices at 1700 Pennsylvania Avenue, next to the White House, represent the culmination of a nearly four-year project to realize a significant commitment of the Global Ireland Strategy and National Development Plan.”

He continued, “This will be an excellent base from which to grow our vital political, economic, and cultural ties with the US over the years ahead. Our ambition stretches beyond Washington, DC too. The Government has deepened its investment in our diplomatic platform across the United States recently, with new Ireland Houses in New York, San Francisco, and Chicago, as well as new Consulates in Los Angeles and Miami.”

Mr. Harris also announced the launch of an economic impact report that maps Ireland’s economic footprint across the US. The report highlights the remarkable impact of the Ireland-US partnership in trade, employment, research, tourism, and investment.

Ireland is now the 5th largest source of foreign direct investment in America, with Irish companies creating more than 200,000 American jobs.

This growing collaboration promises a continued strengthening of ties and mutual prosperity between Ireland and the United States.
https://www.breakingnews.ie/ireland/trump-says-ireland-and-us-will-work-closely-as-new-embassy-opens-in-washington-1811131.html

economy, international relations, manufacturing, politics, trade

Trump imposes 100 pc tariff on imported drugs without US manufacturing base

Leave a comment

Former President Donald Trump has clarified the scope of his recent tariff measures, stating that companies that have already begun construction of plants in the U.S. will be exempt from the new pharmaceutical tariffs. In a post, he wrote, “There will, therefore, be no Tariff on these Pharmaceutical Products if construction has started. Thank you for your attention to this matter!”

Trump also announced sweeping tariffs on a variety of household products, including imported kitchen cabinets and certain types of furniture, potentially adding to the rising costs in this category seen in recent months. According to CNN, Trump detailed the new tariffs in a Truth Social post, stating:

“We will be imposing a 50 percent Tariff on all Kitchen Cabinets, Bathroom Vanities, and associated products, starting October 1st, 2025. Additionally, we will be charging a 30 percent Tariff on Upholstered Furniture.”

These tariffs come amidst a notable increase in furniture prices over the past year. Data from the Bureau of Labor Statistics (BLS) shows that overall furniture costs rose 4.7 percent compared to August 2024. Specifically, living room and dining room furniture prices jumped 9.5 percent over the last 12 months.

The surge in furniture prices is closely linked to recent tariff hikes on imports from China and Vietnam, the two largest sources of imported furniture into the U.S. Last year, both countries exported approximately USD 12 billion worth of furniture and fixtures, according to data from the U.S. Commerce Department. Notably, furniture prices had generally declined for about two and a half years before these tariffs were introduced.

Trump defended the tariffs, arguing that foreign manufacturers have been oversupplying the U.S. market. He described the large-scale “flooding” of products from other countries as “a very unfair practice,” emphasizing the need to protect U.S. manufacturing for national security and other reasons.

Meanwhile, new tariff rates affecting dozens of countries were introduced in August, following delays that allowed time for trade negotiations. These include:

– 50 percent tariffs on Indian goods, with an additional 25 percent penalty for trade related to Russia
– 50 percent tariffs on Brazilian goods
– 30 percent tariffs on South African goods
– 20 percent tariffs on Vietnamese goods
– 15 percent tariffs on Japanese goods
– 15 percent tariffs on South Korean goods

*This story has been sourced from a third-party syndicated feed and agencies. Mid-day accepts no responsibility or liability for the dependability, trustworthiness, reliability, or accuracy of the content. Mid-day management and mid-day.com reserve the sole right to alter, delete, or remove content at their absolute discretion and without prior notice.*
https://www.mid-day.com/news/world-news/article/donald-trump-announces-100-per-cent-tariff-on-imported-pharmaceuticals-without-us-based-manufacturing-plants-23595880

business, economy, government, industry, trade

‘Everything from chip to ship’: PM Modi calls for boost to Atmanirbhar Bharat

Leave a comment

**PM Modi Calls for Boost to Indigenous Production Across Sectors at UP International Trade Show 2025**

Prime Minister Narendra Modi has called for a significant boost to indigenous production across various sectors, emphasizing the importance of building a ‘Swadeshi’ economy. Speaking at the inauguration of the Uttar Pradesh International Trade Show-2025 (UPITS-2025) on Wednesday, PM Modi assured stakeholders that the government stands shoulder-to-shoulder with them in this journey.

Highlighting the government’s commitment to ease of doing business, the Prime Minister noted that several unnecessary compliances have been removed to help businesses thrive in India. “The government is putting a strong emphasis on Make in India manufacturing. We want everything from chip to ship to be manufactured in India; for this, we are focusing on your ease of doing business,” he said.

PM Modi further elaborated on the reforms, stating, “The government abolished more than 40,000 compliances, and more than a thousand laws were decriminalised. We are standing with you shoulder-to-shoulder,” addressing the business fraternity and traders present at the event.

Despite global disruptions and uncertainties, the Prime Minister expressed confidence in India’s growth potential. “Disruptions don’t hinder us, but even in those circumstances, we look for new directions. Amid all these disruptions, India is strengthening the foundations for the coming decades. Our resolve and mantra is Atmanirbhar Bharat. Nothing can be more helpless than being dependent on others. The more a country stays dependent on others, the more its growth is going to stay compromised,” he added.

PM Modi also stressed the importance of maintaining quality in indigenous products. “Every citizen is adopting Swadeshi, ‘Garv se kaho hum swadeshi hai’. Our traders will have to proudly adopt this mantra,” he said. He called for creating an ecosystem that gives special emphasis to Swadeshi designs, while urging private investment in research and innovation. “Without innovation, the world stops, businesses halt,” he remarked.

### About the Uttar Pradesh International Trade Show 2025

The trade show, held from September 25 to 29, carries the theme “Ultimate Sourcing Begins Here” and focuses on three core objectives: innovation, integration, and internationalisation. UPITS-2025 aims to connect international buyers, domestic Business-to-Business (B2B) buyers, and domestic Business-to-Consumer (B2C) buyers through a three-pronged buyer strategy, offering opportunities for exporters, small businesses, and consumers alike.

This platform will showcase Uttar Pradesh’s diverse craft traditions, modern industries, robust MSMEs, and emerging entrepreneurs. Key sectors represented at the event include handicrafts, textiles, leather, agriculture, food processing, IT, electronics, and AYUSH, among others. The trade show will also celebrate the state’s rich art, culture, and cuisine under one roof.

Adding strategic significance, Russia will participate as a partner country, facilitating new avenues for bilateral trade, technology exchange, and long-term cooperation.

The event expects participation from over 2,400 exhibitors, approximately 125,000 B2B visitors, and about 450,000 B2C visitors.

*(With inputs from ANI)*
https://www.mid-day.com/news/india-news/article/everything-from-chip-to-ship-pm-modi-calls-for-boost-to-atmanirbhar-bharat-manufacturing-23595743

business, energy, politics, trade

India-US Trade Ties To Strengthen With Focus On Energy Security: Commerce Minister Piyush Goyal

Leave a comment

**India Seeks to Boost Energy Trade with the US, Highlights Strategic Partnership**

*New York:* India aims to significantly increase its trade with the United States in energy products in the coming years, with a strong emphasis on US involvement in achieving the country’s energy security goals, said Commerce and Industry Minister Piyush Goyal.

“Clearly, the world recognizes that energy security is one area where we all have to work together. India is a big player in the energy field; we are major importers of energy from across the world, including from the US,” Goyal stated on Tuesday during his keynote address at an event titled *Energy Security in a Shifting Global Landscape: Building Resilient Energy Markets Across Borders.* The event was hosted by the Consulate General of India in New York, the US-India Strategic Partnership Forum (USISPF), and ReNew, India’s leading decarbonisation solutions provider.

“We expect to increase our trade with the US on energy products in the years to come. Being close friends and natural partners, our energy security goals will have a very high element of US involvement. This partnership will ensure price stability, diversified sources of energy for India, and help us unlock limitless possibilities with the US on various fronts, energy and beyond,” he added.

Goyal is currently leading a delegation in New York, engaging with US counterparts to reach an early conclusion of a bilateral trade agreement.

Noting the significance of the day, Goyal mentioned that September 22 marks the commencement of Navratri, an auspicious period in the Hindu calendar. “It is said that on this day, things are expected to turn for the better,” he remarked.

Distinguished dignitaries attending the event included Member of Parliament Anurag Thakur, Secretary in the Ministry of Petroleum and Natural Gas Pankaj Jain, USISPF CEO and President Mukesh Agni, ReNew co-founder Vaishali Nigam Sinha, and ReNew Chairman and CEO Sumant Sinha.

### Collaboration on Nuclear Power and Critical Minerals

Goyal highlighted nuclear power as another key area for Indo-US collaboration. “It’s an area we’ve been discussing for a long time. Some elements needed to be addressed, and I believe we are now working to support private efforts in nuclear power in India,” he said.

He emphasized the importance of securing resilient critical mineral supplies and diversifying sources to prevent the weaponization of trade. “We need to build infrastructure, particularly transmission grid infrastructure both within countries and across borders, which can become the backbone of the clean energy transition for various nations.”

“We all must seriously work to align our regulatory frameworks to enable cross-border energy trade without concerns that geopolitics will undermine energy resilience or security,” Goyal added.

India continues to invest in nuclear energy with ambitions to double its capacity in the coming years through government intervention, while also planning to expand on a larger scale. “There are challenges related to price and energy costs that must be addressed to make nuclear power more competitive,” he noted.

### Ambitious Clean Energy Expansion

Goyal described India as being in a “sweet spot” to expand its clean energy capacity, projecting growth from 250 gigawatts to 500 gigawatts over the next five years.

He also commented on the European Union’s Carbon Border Adjustment Mechanism (CBAM), warning of its wide-ranging implications. “In fact, it could isolate the EU and hurt their economy, making them akin to a small island. While others continue trading, the EU may face inflation, unviable infrastructure costs, and loss of market share in exports,” Goyal explained.

He cautioned against green protectionism, describing it as “like a trap. If someone buries their head in the sand, they may find it very difficult to come out.”

—

*Disclaimer: This story is sourced from a syndicated feed. Only the headline has been modified.*
https://www.freepressjournal.in/business/india-us-trade-ties-to-strengthen-with-focus-on-energy-security-commerce-minister-piyush-goyal

business, economy, international relations, politics, trade

Canada launching CUSMA review consultation Friday, LeBlanc says

Leave a comment

Dominic LeBlanc announces that consultations on the Canada-United States-Mexico Agreement (CUSMA) will begin this Friday, ahead of a planned review of the North American trade pact next year. The Canadian trade minister stated that Ottawa will engage with provinces, territories, industry representatives, and workers in preparation for formal negotiations with the United States and Mexico scheduled for 2026.

An exemption for CUSMA-compliant goods has so far shielded much of Canada’s trade from U.S. President Donald Trump’s tariff war. However, sectoral duties remain in effect in industries such as steel, aluminum, automotive, and softwood lumber.

LeBlanc noted that while Ottawa would be open to signing a broader deal with the U.S. should Washington propose terms beneficial to Canada, his immediate priority is addressing the existing sectoral tariffs.

Meanwhile, Carney and Sheinbaum emphasized that the upcoming trade agreement will complement CUSMA, strengthening cooperation among the three countries.

*With files from Craig Lord in Ottawa*
https://globalnews.ca/news/11436583/canada-launching-cusma-review-consultation/

business, cyprus, india, international relations, trade

WTC Mumbai Signs MoUs with Invest Cyprus and WTC Cyprus to Strengthen Europe Trade Gateway

Leave a comment

A high-level Cyprus Government and Business Delegation recently visited Mumbai to further strengthen bilateral economic, trade, and investment relations between India and Cyprus. This event, jointly organized by the World Trade Center (WTC) Mumbai and the All India Association of Industries (AIAI), marked a significant milestone in the longstanding partnership of over six decades between the two nations.

On this occasion, WTC Mumbai signed Memorandums of Understanding (MoUs) with Invest Cyprus and WTC Cyprus to foster bilateral trade and investment. These agreements reaffirm Cyprus’ role as a strategic gateway for Indian businesses into European markets, opening new opportunities in sectors like technology, research, shipping, fintech, and innovation.

The session was graced by distinguished dignitaries, including H.E. Mr. Evagoras Vryonides, High Commissioner of Cyprus to India; Mr. Demetris Skourides, Chief Scientist for Research, Innovation, and Technology, Republic of Cyprus; Mr. Marios Tannousis, CEO of Invest Cyprus; Mr. Nicos Chimarides, IGC Representative and PwC Partner, Tax & Legal; Mr. Panayiotis Chrysotomou, IGC Representative and Manager, Banking Services & Representative Offices IBB of Eurobank; Mr. Antony Georgaki, Head of Operations, WTC Cyprus; and Dr. Vijay Kalantri, Chairman of WTC Mumbai and President of AIAI.

Their insights reflected the shared vision of India and Cyprus to deepen economic and investment cooperation.

In his opening remarks, Dr. Vijay Kalantri emphasized the importance of Cyprus in global trade, stating, “Cyprus is the gateway to other European nations and increasing collaborations in fintech and innovation will lead to continued benefits for both India and Cyprus, with hopeful expectations of trade surpassing USD 1 billion in the future.”

Highlighting ongoing diplomatic efforts, H.E. Mr. Evagoras Vryonides noted, “The 14th round of the India–EU FTA negotiations is scheduled for October 2025, which will further strengthen the bond between India and Cyprus. Indian business entities can set up businesses in Cyprus, manufacture or produce there, and receive preferential access to European markets.”

The keynote presentation was delivered by Mr. Demetris Skourides, who showcased Cyprus as an emerging hub for research and technology. He remarked, “Cyprus today ranks 25th in the Global Innovation Index, supported by strong research institutions and projects in advanced sectors such as defence and ship manufacturing. By combining India’s global leadership in digital technology learning with Cyprus’ research expertise and professional services, both nations can build powerful synergies that drive innovation and competitiveness.”

The session featured other distinguished speakers who spotlighted Cyprus’ strengths as a global business hub. Mr. Marios Tannousis spoke about the country’s investor-friendly environment, highlighting the Start-up Visa for non-EU entrepreneurs, attractive tax policies, and a robust regulatory framework.

Mr. Nicos Chimarides emphasized Cyprus’ favourable tax regime, including zero withholding tax on overseas payments (excluding EU-blacklisted jurisdictions), an extensive double tax treaty network, a corporate tax rate of 12.5%, and a preferential IP regime with rates as low as 2.5%.

Focusing on banking and trilateral cooperation, Mr. Panayiotis Chrysotomou noted the recent launch of the India-Greece-Cyprus Business & Investment Council in Mumbai, aimed at fostering collaboration in technology, infrastructure, and finance. He further remarked, “The IMEC trade, logistics, and data corridor will serve as a vital link connecting India to Europe, and Cyprus will be an essential node in facilitating its outcomes. Through the IGC platform, we are committed to ensuring that the full benefits of IMEC reach businesses across all three nations.”

Representing WTC Cyprus, Mr. Antony Georgaki outlined the institution’s mission to connect Cypriot businesses with the world and to help international enterprises leverage Cyprus as a strategic base for EU access.

In his concluding remarks, Dr. Vijay Kalantri expressed confidence that the visit provided Indian exporters, investors, and business entities with a comprehensive overview of Cyprus as a trusted partner. The signing of the MoUs by WTC Mumbai with Invest Cyprus and WTC Cyprus stands as a testimony to the commitment of all parties to expand opportunities and achieve sustained growth in bilateral trade and investment.
https://www.freepressjournal.in/corporate-gallery/wtc-mumbai-signs-mous-with-invest-cyprus-and-wtc-cyprus-to-strengthen-europe-trade-gateway