Talks to begin on continuance of IT hardware import-management system (Business Standard)
With the current import management system (IMS) for laptops and IT hardware set to expire on December 31, India’s Commerce and IT Ministries are beginning talks on whether to extend or modify the policy aimed at reducing dependence on imports, especially from China. The system, launched in 2023 to track seven categories of computer hardware, is being reviewed in light of growing domestic production under the PLI scheme and U.S. concerns about potential trade barriers. Officials say the final decision will balance domestic manufacturing goals with diplomatic and trade considerations, as imports—77% of which come from China—rose 18% year-on-year to $3.86 billion between January and August.
Services sector risks falling into 'low-wage job trap': NITI Aayog report (Business Standard)
NITI Aayog’s latest report highlights that despite being India’s fastest-growing and most vital sector, services remain highly informal, with most of its 188 million workers lacking job security or social protection, creating a “low-wage trap.” The report reveals a structural divide where high-value industries like IT and finance generate few formal jobs, while traditional services such as trade and transport dominate employment but offer low pay and limited security, deepening inequality and curbing consumption. It calls for a four-part policy roadmap focused on formalization, social protection, women’s workforce inclusion, digital and green skilling, and the creation of regional service hubs to drive inclusive and sustainable growth.
India races to reform financial sector as foreigners pull $17 billion (The Economic Times)
India is accelerating financial sector reforms to counter nearly $17 billion in foreign outflows and offset the economic risks from U.S. tariffs, with the Reserve Bank and SEBI introducing measures to ease borrowing, boost market participation, and attract foreign investors. The reforms, led by new leadership at both regulators, aim to dismantle restrictive post-crisis rules, liberalize lending, and make India’s financial system more business-friendly and accessible to retail and foreign players alike. While investors see the regulatory easing and 6.8% growth outlook as positive, analysts note that deeper structural and bureaucratic reforms will still be essential to fully revive investor confidence and sustain long-term growth.
