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    Govt eases FDI norms for China, other countries sharing land border with India: Sources
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    CBDT launches 2nd NUDGE initiative to strengthen voluntary compliance in respect of Foreign Assets
    Initiative to encourage taxpayers to voluntarily review deduction/exemption claims identified as potentially ineligible through risk analytics
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March 10, 2026
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FDI norms eased for countries sharing land borders, relaxing prior mandatory approval requirements for foreign investments.
The government amended Press Note 3 of 2020 to ease FDI rules for companies from countries sharing a land border with India by relaxing the prior requirement for mandatory government approval of investments by foreign companies with shareholders from those countries, thereby altering the investment screening and approval framework for such entrants.
March 10, 2026
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Insolvency law amendments advance to enable streamlined corporate resolution and corresponding Companies Act changes approved by Cabinet.
The Union Cabinet approved amendments to the Insolvency and Bankruptcy Code and the Companies Act, advancing legislative changes to corporate insolvency and company regulation; these approvals follow a previously introduced amendment Bill that was referred to a select committee and a government intention to introduce an IBC amendment bill in the current parliamentary session.
March 10, 2026
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Disclosure of foreign assets: taxpayers notified to review and amend returns to correctly report foreign assets and income.
Using CRS and FATCA information, the revenue authority will issue SMS and email notices to taxpayers identified as having undisclosed foreign financial assets or foreign-source income, advising them to review and revise their ITRs to correctly complete Schedule FA and Schedule FSI within a prescribed timeframe to avoid penal consequences.
March 10, 2026
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Voluntary return revision: taxpayers urged to correct ineligible deduction or exemption claims identified through risk analytics and nudges.
The initiative invites taxpayers to voluntarily review and, if necessary, revise ITRs where deductions or exemptions appear potentially ineligible based on risk analytics, including suspected bogus donations, incorrect or invalid donee PANs, and errors in deduction extent; communications are sent via SMS/email under a Non intrusive Usage of Data to Guide and Enable (NUDGE) campaign to facilitate transparent, non-intrusive guidance, and taxpayers may revise returns within the prescribed period or later as permitted by law subject to additional tax liability.
March 10, 2026
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Stakeholder consultation on proposed Income tax Rules invites inputs via e filing portal, focused on simplification and compliance reduction.
Consultation is invited on the proposed Income tax Rules and related Forms implementing the Income tax Act, 2025, via a utility on the e filing portal. Stakeholders must submit inputs after OTP validation, specifying the exact rule, sub rule or Form number. Inputs are solicited under four categories: Simplification of Language; Reduction of Litigation; Reduction of Compliance Burden; and Identification of Redundant/Obsolete Rules and Forms, to be compiled and considered before final notification.
March 10, 2026
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Tax compliance verification using AI uncovers restaurant under reporting; taxpayers urged to file updated returns under Section 139(8A).
AI enabled transactional analytics compared point of sale data from restaurants with declared income and found deletion and modification of bills and exclusion of transactions leading to under reported sales. Preliminary surveys corroborated suppression and prompted targeted investigations. The Department combined targeted enforcement with a guidance campaign, SAKSHAM NUDGE, inviting identified taxpayers to file updated returns under Section 139(8A) and encouraging voluntary correction of returns.
March 10, 2026
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Dividend taxation restructured with preferential treatment for substantial holdings and altered withholding for other shareholders.
The Amending Protocol reallocates taxing rights on capital gains from sale of company shares to the jurisdiction of the company's residence, removes the Most Favoured Nation clause, introduces a split dividend withholding regime that differentiates substantial holders from other shareholders, aligns the definition of Fees for Technical Services with the India-US model, and expands Permanent Establishment to include a Service PE; it also enhances Exchange of Information, adds Assistance in Collection of Taxes, and incorporates applicable BEPS MLI provisions, subject to each Party's internal procedures for entry into effect.
March 10, 2026
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Free trade agreements expand preferential market access while protecting sensitive agricultural sectors and supporting export competitiveness.
India seeks to expand agricultural and processed food exports through recently concluded FTAs that grant preferential market access while explicitly protecting sensitive domestic sectors such as dairy and GM products and shielding key staples from import exposure. Complementary measures include promoting the Agriculture Infrastructure Fund for food processing and value addition, and providing exporter support via the Export Promotion Mission and DGFT to integrate Indian firms into global value chains.
March 10, 2026
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Trade tariff rollback boosts Chinese export resilience despite weaker US demand and geopolitical energy risks.
China's exports rose sharply in January-February driven by semiconductors, autos and electronics, with broader regional demand offsetting reduced shipments to the United States. A recent judicial ruling lowered US tariffs and, together with a potential extension of the October trade truce, has eased import barriers that supported export growth. Risks to export competitiveness include a slowing domestic economy, property-sector weakness and geopolitical energy disruptions that could curb global demand.
March 10, 2026
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External commercial borrowing qualifies under automatic route, structured as a syndicated social loan supporting eligible social projects.
A syndicated facility classified as an External Commercial Borrowing under the automatic route has been arranged to qualify as a social loan. Proceeds will be deployed under the borrower's Social Loan Framework aligned with the Social Loan Principles 2023, supported by a second-party opinion. The financing is intended to fund eligible social projects, enhance liquidity and asset-liability management, and diversify the borrower's foreign funding sources while imposing use-of-proceeds and governance conditions consistent with social loan practices.
March 10, 2026
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Insurance support for exporters to address shipping and insurance disruptions amid West Asia crisis, government seeks coordinated measures.
The government has issued Customs norms for export cargo returning to Indian ports and is developing insurance support schemes, consulting the Export Credit Guarantee Corporation and other departments to assist exporters whose goods have been shipped but face logistical and insurance problems, while an inter-ministerial group monitors developments and engages regularly with exporters.
March 10, 2026
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B2B platform expands India's food export access by linking producers, processors and MSMEs to global buyers and technology partners.
AAHAR 2026 operates as a structured B2B platform to convert India's agricultural and processing scale into global market access by enabling commercial matchmaking, export partnerships, technology transfer and investment linkages. The exhibition prioritises business outcomes-especially for MSMEs-through dedicated pavilions and buyer-seller interactions that translate government support and technological solutions into export orders, value addition and integration into international supply chains while emphasising sustainability across the food value chain.
March 10, 2026
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IP approval speed and transparency urged to position India's IP regime among global leaders with greater access for startups and women.
India aims to make its intellectual property approval system globally competitive by enhancing speed, transparency and efficiency through recruitment, technology upgrades and backlog reduction; it proposes fast track mechanisms and substantial fee concessions to improve access for startups, women entrepreneurs and micro and small enterprises while strengthening the broader innovation ecosystem via school innovation labs, incubation models and stakeholder engagement.
March 10, 2026
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Free Trade Agreements expand market access for pharmaceutical, healthcare and medtech sectors, requiring industry uptake and integrated healthcare ecosystems.
Free Trade Agreements create preferential market access for pharmaceuticals, healthcare and medtech, benefitting farmers, MSMEs and innovators but requiring active industry utilisation. Policy measures needed include building an integrated healthcare ecosystem linking manufacturing, innovation and hospitals; MSME quality upgradation and testing; skills development for caregivers and nurses to support exports; and adoption of digital health and AI for telemedicine and diagnostics.
March 10, 2026
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Design as strategic national capability: new NID and collaborative AI, industry and craft initiatives to mainstream innovation.
Design is promoted as a strategic national capability with a new National Institute of Design in eastern India to expand design education and link traditional crafts, MSMEs and industry. A five-point agenda sets out to position NIDs as regional knowledge hubs; deepen industry-academic and MSME linkages via design clinics and live cluster projects; create Service and Brand India design labs for citizen-facing services; establish joint AI and frontier-technology design labs with technical institutes; and develop the eastern NID as a model campus driven by public-private partnerships and artisan support.
March 10, 2026
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Free Trade Agreements expand market access for MSMEs, prompting quality-led growth and adoption of AI and digital tools.
Free Trade Agreements expand market access for MSMEs into developed markets but require a shift to quality-led growth because FTA coverage raises product quality expectations and duty concessions do not permit substandard goods. The statement emphasizes technology and AI adoption to improve MSME productivity and decision-making, and outlines targeted support for women entrepreneurs through digital commerce onboarding initiatives and an Assist Cell providing mentorship, funding, marketing and technology guidance to enable scaling and sustainability.
March 10, 2026
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Voluntary compliance: SAKSHAM NUDGE urges restaurants to update returns under Section 139(8A) to rectify filings.
The Income Tax Department used AI-enabled transactional analytics to detect widespread under-reporting in the Food & Beverage sector, conducted an on-site survey that revealed significant sales suppression, and has launched the SAKSHAM NUDGE campaign to encourage identified restaurants to file updated returns under Section 139(8A) while investigations continue.
March 10, 2026
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Fraudulent Input Tax Credit scheme exposed, director arrested amid allegations of bogus invoices and absence of genuine business activity.
Alleged fraudulent availment of Input Tax Credit through bogus invoices for purported supplies is based on GST return analysis and verification showing the supplier's declared premises lacked accounting records, stock or invoices and no verifiable payment trail exists; the director implicated failed to explain operations or payments and is said to have directly benefited from the non genuine paper transactions created solely to pass and utilise Input Tax Credit.
March 10, 2026
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IBC case resolution: banks urged to collaborate, reduce adjournments, and ensure time bound progression for improved recoveries.
Expediting resolution of large insolvency matters and correcting procedural inefficiencies was the focus of a high-level review. Banks were directed to adopt collaborative resolution strategies for asset value maximisation and improved recoveries, reduce adjournments and delays in filing CIRP applications, and ensure continuous monitoring of high-priority cases to achieve time-bound progression through insolvency processes.
March 10, 2026
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Force majeure declarations amid Iran conflict relieve suppliers of contractual obligations as oil shipments and production face disruption.
Intensifying hostilities involving Iran have disrupted crude oil production and tanker routes, causing widespread export constraints, storage shortages and elevated market volatility. Attacks on energy infrastructure and near-halt of tanker traffic through the Strait of Hormuz have led producers to cut output and declare force majeure, excusing contractual performance. Policymakers and market actors are considering coordinated responses-such as releasing strategic reserves or stockpiling-while alternative sourcing and technical restoration of production remain critical to stabilising supply.

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Customs & Trade

Put India-US trade deal on hold, renegotiate terms: Congress

February 21, 2026

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New Delhi, Feb 21 (PTI) The Congress on Saturday demanded that the government put the interim trade agreement on hold and renegotiate the terms of the deal after the US Supreme Court invalidated the reciprocal tariffs imposed by President Donald Trump.

Congress general secretary Jairam Ramesh said the government must also ensure that the interests of Indian farmers are fully protected during the renegotiations and asked the government to categorically state that it will not allow any import liberalisation to the American side.

Speaking with reporters here, Ramesh questioned the silence of Prime Minister Narendra Modi on the entire deal and said he should clarify on whether he agrees with Trump's statement that nothing changes in the trade deal with India.

"Does Modi agree with Trump that the trade agreement with India still holds," the Congress leader asked, while pointing out there was no response from the government so far.

Claiming that the India-US interim agreement will adversely affect the Indian farmers and put their livelihood in jeopardy, he said the government should put this deal on hold till clarifications are made and called for renegotiating the deal afresh.

"The US Supreme Court decision is very significant and our government must keep this trade agreement on hold.

"We demand that the PM should categorically state that India's policy after the US Supreme Court decision will be reviewed and we will not carry out import liberalisation till clarifications come," Ramesh said, adding that this is to protect and safeguard the livelihood of lakhs of farmers in the country.

He referred to the special concessions provided to the US agricultural products that threaten the livelihood of our farmers. He said the trade agreement mentions that the tariffs will be reduced or completely eliminated on farm products including cotton, soybean and fruits.

The Congress leader also questioned the tearing hurry shown by Modi in getting the trade deal announced by Trump on February 2.

He attributed this to "Modi's panic" and to divert attention from Rahul Gandhi's speech in Parliament the same day quoting the sensational revelations made by former Army Chief Gen MM Naravane that Prime Minister had abdicated his responsibility while telling him 'jo uchit samjho who Karo' (do whatever you think is right), on Chinese aggression at the border.

The first question arises is why did the prime minister was in a hurry to announce this, he said.

The US Supreme Court on Saturday struck down Trump's global tariffs, saying it is against the American Constitution, Ramesh said.

"Our second question is that when the PM, the commerce minister (Piyush Goyal), knew from December that any time (now) the Supreme Court verdict could come, many believed that it could be struck down. Why did you hurriedly strike a deal when you knew the verdict could go against Trump," he asked.

The 10 per cent tariff would be imposed on imports and as per law this will be for 150 days, he said.

He observed that there was nothing to celebrate about the ten percent tariff from the 18 percent as these had actually gone from 3.5 percent to ten percent.

Referring to Trump's statement after the Supreme Court decision that the Indo-US Trade Agreement still holds, Ramesh asserted that Modi must say in clear and unambiguous terms that the 'Framework of Interim Agreement' cannot be implemented under current circumstances in view of the US Supreme Court's decision.

After the US Supreme Court struck down Trump's global tariffs, Gandhi accused Modi of being "compromised", saying his "betrayal" in the India-US interim trade deal stood exposed.

Congress general secretary Randeep Surjewala said after the US Supreme Court quashed presidential powers to impose tariffs under the IEEPA (International Emergency Economic Powers Act, 1977), Trump has announced the imposition of 10 per cent additional tariffs under Section 122 of the Trade Act, 1974.

"The simple questions are - are these tariffs sustainable viz-a-viz India? Can these tariff provisions be justifiably applied to India? "Will these new tariffs still hold the US-India Trade Deal (Framework Agreement), which is being widely opposed by farmers, small and medium businesses, energy and data experts, and economists alike," he posted on X.

"Will the Modi government now show the courage to walk out of a one-sided US-India Trade Deal," Surjewala asked.

He also asked if the Modi government will now declare in "national interest" that it will buy cheaper Russian and Iranian crude oil with a view to ensure "energy security" of the country.

"Will the Modi government declare that it will no longer withdraw 'non-tariff barriers', i.e., withdraw the meagre subsidy on agriculture or permit import of genetically modified crops into India, thereby protecting our seed integrity, purity, and biodiversity? Will the Modi Government now declare that it is no longer under an obligation to import USD 500 billion worth of American goods (Rs 45 lakh crore) over the next 5 years on zero tariff," he asked.

In a major setback to what was Trump's pivotal economic agenda in his second term, the US Supreme Court, in a 6-3 verdict, ruled that tariffs imposed by Trump on nations around the world were illegal and that the president had exceeded his authority.

Shortly after the court verdict, Trump asserted that there is "no change" in the trade deal with India. PTI ASK/SKC ZMN

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