Daily News - Wednesday, 3 September 2025

India grew 7.8% in Q1 despite global economic challenges: PM Modi (Business Standard)

PM Narendra Modi countered criticism of India’s “dead economy” by highlighting 7.8% GDP growth in the April–June quarter, the highest among major economies and well above forecasts, driven by strong performance across manufacturing, services, agriculture, and construction despite global uncertainties. Speaking at the Semicon India 2025 conference, he framed India’s momentum as proof of resilience against challenges fueled by “economic self-interest” abroad, contrasting it with slower US growth at 3.3% and reaffirming India’s trajectory toward becoming the world’s third-largest economy. Modi also signalled a new wave of next-generation reforms, likely including major GST rate cuts, even as India faces pressure from US tariffs that were recently doubled to 50% over its Russian oil purchases. 

⁠‘One-sided relationship with India’: Trump rules out reducing tariffs on Indian goods, cites Harley Davidson example (Financial Express)

Trump has doubled US tariffs on Indian goods to 50% while rejecting any rollback, arguing that India’s long-standing high import duties have created a one-sided trade relationship, exemplified by Harley Davidson’s struggles with 200% tariffs. He framed the tariffs as part of a broader strategy to push global companies, particularly in autos and technology, to manufacture in the US for market access and tariff protection, even as India remains shocked by the sudden move that impacts over half of its exports to its largest market. The escalation is further tied to Washington’s disapproval of India’s continued Russian oil imports, with Trump warning that India must act quickly to lower tariffs and align on geopolitical issues or face deeper trade and diplomatic friction.

Ashwini Vaishnaw urges global investors to become part of India’s chip ecosystem (Financial Express)

⁠India’s electronics and IT minister Ashwini Vaishnaw positioned the country as a “lighthouse of stability and growth” at the Semicon India 2025 conference, urging global leaders to invest in India’s fast-expanding semiconductor ecosystem, supported by strong demand, a stable policy framework, and a deepening talent pool. He showcased rapid progress since the India Semiconductor Mission began just three and a half years ago, with five plants under construction, one pilot line already complete, and the landmark unveiling of the Vikram 32-bit indigenous chip developed by ISRO’s Semiconductor Lab, alongside major student-led chip design successes. Vaishnaw emphasised that India’s electronics production has multiplied in exports and scale over the past decade, while its growing startup ecosystem, research strength, and manufacturing push together position the nation to become a global hub for semiconductor innovation and production. 

Civil aviation ministry flags rising festival airfares (Financial Express)

India’s civil aviation ministry is moving to curb steep airfare hikes ahead of the festive season, with fares on key routes up 50–80%, and will issue advisories to airlines while considering stronger regulatory steps if abnormal increases persist. Officials argue that carriers should follow guidance to avoid exploitative pricing, citing fares like ₹9,500 for Mumbai–Delhi and ₹13,000 for Delhi–Kolkata as evidence of unsustainable surges compared to last year. Airlines, however, attribute the spike to limited capacity caused by delayed aircraft deliveries from Airbus and Boeing, as demand far exceeds supply during the peak travel period.

Cement prices may fall, in boost to construction (Financial Express)

India’s GST Council is expected to cut tax on cement from 28% to 18%, giving companies room to reduce prices by ₹10–30 per bag and potentially boost demand during the upcoming festive and post-monsoon construction season after a weak FY25. While market leaders like UltraTech and Ambuja are expanding capacity to capture growth, firms must balance passing benefits to consumers with preserving margins, especially under anti-profiteering rules and in the face of volatile fuel costs from imported petcoke and coal. Analysts note that although higher GST on coal and global price swings remain risks, the tax cut provides a crucial cushion that could spur recovery in volumes and help cement makers defend market share in a competitive industry.