Daily News - Thursday, 10 April 2025

⁠India clears ₹63K cr Rafale naval jet deal with France (Business Standard)

India has cleared its largest-ever fighter jet purchase with the Cabinet Committee on Security approving the acquisition of 26 Rafale Marine aircraft for the Navy from France under a ₹63,000 crore government-to-government deal, expected to be signed later this month. The deal includes 22 single-seater carrier-based jets and 4 twin-seat trainers, to be deployed on INS Vikrant, with deliveries starting in 3.5 years and completing in about 6.5 years, bolstering the fleet currently reliant on MiG-29Ks that have faced service issues. This follows the IAF’s 2016 purchase of 36 Rafales for ₹60,000 crore, while a separate ₹35,000 crore contract for three additional Scorpene-class submarines awaits final CCS approval. 

⁠India too big to be used by US against China: Jeffrey Sachs (Business Standard)

Renowned economist and UN Advisor Jeffrey Sachs cautioned India against aligning too closely with the US in its geopolitical rivalry with China, warning that Washington aims to use India as a strategic counterweight to preserve its global dominance. He criticised India’s participation in groupings like the Quad, stating these primarily serve American interests, and urged New Delhi to resolve its disputes with China bilaterally—highlighting that together, both nations represent 40% of the global population and could help shape a more balanced world order. Sachs projected India would overtake the US as the second-largest economy within 10–15 years and become the largest by the latter half of the century, also calling for India’s inclusion as a permanent member of the UN Security Council. 

UK set to support India in rupee's internationalisation (Business Standard)

⁠India and the UK, during their 13th Economic and Financial Dialogue, agreed to explore using London as a financial and forex hub to support the internationalisation of the Indian rupee, with India now allowing rupee accounts in overseas jurisdictions. Both sides reaffirmed their commitment to swiftly concluding a Free Trade Agreement and Bilateral Investment Treaty, enhancing regulatory cooperation via an Exchange of Letters between their financial authorities, and launching a UK-India Strategic Leadership Exchange on Illicit Finance. Finance Minister Nirmala Sitharaman highlighted India’s rapid economic ascent, reiterating its trajectory to become the world’s third-largest economy and the sixth-largest insurance market by 2032. 

⁠India halts transit for Bangladesh exports (mint)

⁠India has withdrawn a crucial transit facility that allowed Bangladesh to move export cargo through its territory to Bhutan, Nepal, and Myanmar, as per Circular No. 13/2025-Customs issued on 8 April, effectively cancelling the earlier Circular No. 29/2020-Customs. The abrupt move, following heightened global trade tensions after US President Trump’s tariff announcement on 2 April, disrupts a long-standing low-cost trade route that benefited Bangladeshi exporters. While cargo already in transit will be permitted to proceed, the facility’s termination raises concerns about regional trade stability and India’s adherence to WTO commitments. 

India better off than others in tariff row: RBI Governor (The Hindu)

Amid global trade tensions triggered by U.S. President Donald Trump’s tariff announcement, the Reserve Bank of India revised its FY25 growth projection down by 20 basis points, from 6.7% to 6.5%, citing global policy uncertainty as the main driver. RBI Governor Sanjay Malhotra clarified that India’s relatively low export dependence (12% of GDP, with only 2% to the U.S.) buffers it from severe impact compared to export-heavy economies like Germany (37%) or the EU (30%+). While inflation could be dampened due to reduced global demand, the central bank is more concerned about growth, and assured that the rupee remains stable, backed by nearly $700 billion in reserves and sustainable fiscal deficits.