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    India's forex reserves drop USD 11.68 bn to USD 716.81 bn
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March 13, 2026
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Foreign exchange reserves decline as central bank reports weekly reductions across foreign currency assets, gold, SDRs and IMF position.
India's foreign exchange reserves declined by USD 11.683 billion to USD 716.810 billion for the week ended March 6. The change comprised a USD 9.880 billion fall in foreign currency assets to USD 563.245 billion, a USD 1.612 billion decrease in gold reserves to USD 130.017 billion, a USD 0.146 billion reduction in SDRs to USD 18.720 billion, and a USD 0.045 billion drop in the IMF reserve position to USD 4.828 billion; foreign currency assets are stated in dollar terms including valuation effects of non US currencies.
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March 13, 2026
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Monetary policy stance maintained; rates expected steady while inflation risk rises amid higher oil prices and trade shifts.
Fitch raised India's near-term GDP forecasts, attributing growth to domestic demand and investment, noted national accounts rebasing that smooths GDP estimates, and projected a short-term easing then recovery in investment linked to looser financial conditions. The report warns that higher global oil prices raise inflation risk while the Reserve Bank's neutral stance and expectation of unchanged policy rates are likely to persist. It also highlights that weaker domestic demand may boost net trade contribution and that external legal/regulatory changes, including a lower US effective tax rate and Section 122 tariffs, will affect external demand.
March 13, 2026
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Trade investigations drive continued India-US engagement on a bilateral trade pact amid parallel tariff measures and policy scrutiny.
India's commerce ministry has denied reports of a pause in bilateral talks with the United States, confirming continued engagement toward a mutually beneficial trade agreement. This diplomatic position arises as the US launches new Section 301 trade investigations into policies of several economies, including India, and implements broad tariff measures following a domestic court decision, creating the policy context for negotiations.
March 13, 2026
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Emergency fuel measures temporarily reintroduce kerosene and permit alternate fuels for hospitality to protect household cooking supplies.
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March 13, 2026
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Supplementary demands approval permits additional government expenditure while keeping the fiscal deficit within revised estimates.
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March 13, 2026
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Economic Stabilisation Fund created to provide fiscal headroom and buffer for global shocks; supplementary spending approved.
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March 13, 2026
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Tariffs under trade statutes shift import costs to consumers, increasing household burdens and prompting broad trade investigations.
The administration is replacing invalidated emergency tariffs by pivoting to alternative statutory authorities to sustain tariff revenue, using short-duration emergency levies, broader trade-investigation powers to target unfair or excessive foreign production, and national-security based tariffs after Commerce inquiries. Procedural limits and legal challenges constrain some measures, while analysts and Democratic reports conclude tariff costs will be passed to consumers-through importer pass-through and higher domestic prices-so households will bear the economic burden.
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Energy strategy emphasizes infrastructure expansion and self reliance to mitigate war driven supply shocks and strengthen strategic reserves.
India's energy policy adopts a two pronged strategy of expanding domestic energy infrastructure and strengthening self reliance to reduce import dependence. Key operative elements include enlargement of strategic petroleum reserves, expansion of LNG terminals and pipeline networks, increased LPG, PNG and CNG penetration, rapid growth in renewable capacity and railway electrification, and demand substitution measures such as ethanol blending and bio gas. Concurrently, authorities are urged to monitor markets and take strict action against black marketing and misinformation to preserve supply chain integrity.
March 13, 2026
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March 13, 2026
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Regulatory engagement with NBFCs to coordinate interagency solutions and strengthen KYC and sector reforms.
Department of Financial Services convened NBFCs with RBI, Department of Revenue and UIDAI to discuss operational issues and pursue stakeholder consultation for practical solutions. The Secretary urged NBFCs to enhance financial robustness and serve underserved customers, proposed a workshop with UIDAI and NPCI on effective KYC, and requested SROs to design a reform framework to strengthen the sector and coordinate interagency responses.
March 12, 2026
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Tourist tax imposed on hotel stays linked to GST status, applying distinct rates for domestic and foreign travellers.
The Jharkhand City Tourist Tax Rules, 2025 impose a tourist levy on travellers staying in urban hotels, calculated on the total invoice value, with differentiated rate bands tied to a hotel's GST status and separate rates for domestic and foreign tourists, establishing a GST-linked municipal tax on hotel stays within urban areas.
March 12, 2026
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Budgetary transparency concerns allege fiscal mismanagement and contested tax attribution, challenging infrastructure and employment claims.
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March 12, 2026
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Director disqualification for persistent non filing bars reappointment and requires state action and regulatory penalties.
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March 12, 2026
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Inflation target band preserved as CPI edges higher due to food-led pressures, keeping rate policy pause plausible.
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March 12, 2026
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March 12, 2026
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Sanctions debate intensifies as advocacy groups cite increased fossil fuel export revenues influencing calls for tougher measures.
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March 12, 2026
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NBFC registration: RBI-registered gold-loan lender reports strong AUM growth and emphasizes disciplined underwriting and technology investments.
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Customs & Trade

Trump's tariffs hurting American manufacturers instead of helping them

March 18, 2026

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Washington, Mar 17 (AP) Jay Allen is a fan of President Donald Trump, and voted for him on the belief that the Republican would cut taxes and trim regulations, helping his manufacturing business in northeast Arkansas.

But the tariffs at the core of Trump's economic agenda have wreaked havoc on his company, Allen Engineering Corp., which makes industrial equipment used to install, finish and pave concrete. The import taxes have raised the costs of engines, steel, gearboxes and clutches made abroad that Allen needs to build power trowels that can sell for up to USD 100,000 each.

Allen's experience embodies a growing body of evidence that the tariffs that Trump said would help American factories are, in fact, squashing many of them.

The problem could get worse as the administration scrambles to craft new tariffs to replace the emergency import taxes that the Supreme Court ruled illegal in February.

Allen said he ran his company at a loss in 2025 because of tariffs. His payroll has fallen to 140 workers from a peak of 205. To get by this year, he has hiked prices by 8 per cent to 10 per cent, even though that might mean fewer sales.

“What's really sad is the unintended consequences of his tariffs are hurting manufacturing in our country,” said Allen. “Unfortunately, the working-class people are getting squeezed.” Manufacturing jobs have declined during Trump's first year back Trump's core rationale for tariffs has been that they would force more factories to open in the US and would generate enough revenue to close federal budget deficits. But that hasn't materialized.

Factories continue to shed workers, with 98,000 manufacturing jobs lost during Trump's first full 12 months back in the White House. American companies that foot the bill for tariffs are now suing the Trump administration for more than $130 billion in tariff refunds. Meanwhile, the federal deficit is projected to climb over the next decade.

The White House maintains that construction spending is high, more workers are being hired to build factories, new investments are being made and labour productivity in manufacturing is increasing — which could eventually fuel a factory revival.

“It takes time to get production online, and therefore it will be some more time before we fully materialise the benefits of the president's policies,” Pierre Yared, the acting chairman of the White House Council of Economic Advisers, said in an email.

Construction is up — but that's due to Biden's bill Some of the bright spots in construction cited by the White House appear to be the result of programmes launched by then-President Joe Biden, a Democrat.

Factory construction spending began to accelerate in 2022 with the anticipation of government support from Biden's CHIPS and Science Act, which included big subsidies for computer chip plants. The law was a primary contributor to a historic surge in the annualised rate of construction spending on manufacturing facilities, said Skanda Amarnath, executive director of the economic policy group Employ America.

Construction spending on factories has slipped during Trump's presidency, but the pace remains relatively high largely because of continuing work on Biden-era projects in Arizona, Texas and Idaho, Amarnath said.

Amarnath has also gone through the interviews regional Federal Reserve banks have held with businesses. Those comments show some companies might expand by taking advantage of Trump's tax breaks on investments in equipment and new buildings.

But while the pharmaceutical drug sector might be expanding, the comments show no overall uptick in manufacturing because of Trump's tariffs.

“You don't get the sense that there is this new manufacturing renaissance underway,” Amarnath said.

Uncertainty in tariffs has deterred investments Based on orders, proclamations and other statements, Trump has taken more than 50 actions on tariffs so far — and that tally doesn't include the tariff threats he regularly makes on social media or in conversations with reporters but hasn't formally put in place.

The flurry of announcements, reversals, exemptions and legal challenges — as well as Trump's decision to bypass Congress to impose tariffs — has made it difficult for smaller manufacturing companies to plan.

For example, Allen Engineering imports its 75-horsepower diesel engines from Germany. Building them in the United States would require a USD 20 million investment — a huge risk if the status of the tariffs is unclear.

Are engine-makers “going to spend that kind of money to move production from Germany to the US when they don't know what the landscape is going to be in three years?” Allen said. “I don't know who is going to be in the White House, and what the stance is going to be on these tariffs.” Joseph Steinberg, an economist at the University of Toronto, said research shows that under the best-case scenario “it would take a decade for manufacturing employment to rise above where it was before tariffs were enacted.” But Steinberg said “the current situation is nothing like the best case”, since US trade policy is unsettled and that leaves companies reluctant to expand.

Equipment makers have been hit hard by rising steel costs About 98 per cent of US manufacturing establishments have fewer than 200 workers, according to Census Bureau data, and don't have the kind of name-brand recognition or lobbying heft to minimise the damage from tariffs that big players like Apple, General Motors and Ford possess.

The Association of Equipment Manufacturers in February reported that America's share of global manufacturing severely lags China's. The group has urged tax credits to offset the expense of tariffs, and specifically called for tariff relief on raw materials, parts and components that cannot be acquired domestically at scale.

Steel tariffs have been a particular concern. Trump imposed them last March and hiked them to 50 per cent in June. They were not affected by the Supreme Court decision.

Trump has credited the tariffs with restoring profits at American steel mills. But they have hurt companies that use that steel, like Calder Brothers in South Carolina, which makes equipment to pave asphalt.

“The steel tariffs were the first thing that got my attention,” said Glen Calder, the company's president. “My steel pricing jumped 25 per cent two weeks before the tariffs went into effect for domestic steel. The market price just jumped. It has stayed elevated.” Meanwhile, China's trade surplus has grown Part of Trump's push to expand manufacturing was to help American companies compete against China — a country he plans to visit this spring for talks with its leader, Xi Jinping.

But the US manufacturing trade imbalance rose last year under Trump instead of narrowing. Meanwhile, China's trade surplus with the world climbed to a record USD 1.2 trillion.

This trend exposes one of the big problems with Trump's tariff strategy, said Lori Wallach, director of the Rethink Trade program at American Economic Liberties Project. She noted that he largely bypassed Congress and failed to address gaps in the World Trade Organisation's rules for the trade frameworks that he negotiated with other countries.

Instead of working with partners to ensure there were penalties for foreign manufacturers with abusive labour practices and unfair subsidies, Trump chose against rallying partners to counter China as a unified group. American manufacturers are at a disadvantage, Wallach argued, because there is not a coalition of nations that can impose penalties for currency manipulation, subsidies and schemes to evade tariffs.

“The general revulsion of this administration to international cooperation means they're trying to do it alone,” Wallach said. (AP) PY PY

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