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June 5, 2026
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Neutral monetary stance and capital-inflow measures support the rupee amid inflation and growth risks
Monetary policy remained unchanged as the Monetary Policy Committee kept the benchmark repo rate at 5.25 per cent and continued with a neutral stance, while adopting a data-dependent approach in view of elevated global risks. The Reserve Bank lowered its growth projection for the year and revised inflation expectations upward, while cautioning that energy shocks and supply pressures could feed into wages and inflation expectations. Measures were also announced to attract foreign capital and support the rupee, including tax relief for eligible foreign investors in government securities, concessional foreign-exchange swaps, and subsidised hedging costs for fresh FCNR(B) deposits.
June 5, 2026
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Inflation outlook rises as higher energy prices and input costs increase pressure on consumer price inflation.
Reserve Bank projected retail inflation for 2026-27 at 5.1 per cent, revising the earlier estimate upward because higher global energy prices are being passed through to petrol, diesel and other input costs. The statement said higher fuel prices are having a direct effect on headline inflation, with second-round effects likely to add further upward pressure on CPI inflation in the coming months.
June 5, 2026
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FII taxation on Government Securities is proposed to shift toward exemption for interest and capital gains.
Under the Income-tax Act, 2025, FIIs are taxed on income from securities and capital gains under a separate framework, with securities income taxable at 20%, short-term capital gains taxable at 30% or 20% depending on coverage under concessional provisions, and long-term capital gains taxable at 12.5%. The proposed ordinance seeks to exempt interest income from Government Securities and capital gains arising on their transfer or redemption, while explaining the role of listed and unlisted securities, the absence of Securities Transaction Tax, and the holding-period rules for classification as short-term or long-term capital assets.
June 5, 2026
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Government securities income exemption limits BIS tax relief to specified interest and capital gains from investment pool.
Income of the Bank for International Settlements from specified investments in Government Securities is proposed to be exempted under the ordinance. The exemption is confined to interest income earned from Government Securities and capital gains arising on transfer or redemption of Government Securities through the specified INR-denominated investment pool for central banks and official monetary authorities. It does not extend to all income earned by BIS in India or to other BIS operations.
June 5, 2026
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Tax exemptions on government securities and expanded market access aim to boost foreign participation and capital inflows.
Tax exemptions were introduced on interest income and capital gains arising from the sale, exchange or transfer of government securities, extended to foreign institutional investors and the Bank for International Settlements, subject to prescribed information-reporting requirements. The amendment to the Income Tax Act was stated to take effect from 1 April through an ordinance under the President's ordinance-making power. The Reserve Bank of India also widened foreign participation in government and equity markets through additional access and relaxation measures.
June 5, 2026
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Rupee appreciation after RBI policy as investment norms eased, repo rate stayed unchanged, and sentiment improved.
Rupee appreciation followed the RBI's monetary policy announcement after the central bank liberalised norms for FPI investment in government securities and raised the investment limit for Non-Resident Indians and Overseas Citizens of India in equity instruments. The Monetary Policy Committee kept the repo rate unchanged at 5.25 per cent with a neutral stance, while the RBI stated that its exchange-rate policy remains unchanged and that it does not target any specific rate or band for the rupee.
June 5, 2026
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GDP growth forecast revision reflects energy price pressures, supply disruptions, and geopolitical risks to economic activity.
The Reserve Bank revised down its real GDP growth projection for FY 2026-27 to 6.6 per cent, citing elevated energy and commodity prices, continued supply disruptions from the West Asia conflict, and broader risks from global supply-chain disruption, financial market volatility, and weather-related shocks. Domestic activity was described as broadly resilient, with manufacturing, services, consumption, investment, and exports holding up despite cost pressures, while the global outlook remains clouded by geopolitical tensions and foreign exchange volatility.
June 5, 2026
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Government securities tax exemption for foreign investors aims to attract long-term capital into sovereign debt markets.
Government foreign investment policy for government securities has been adjusted to attract long-term dollar inflows by exempting foreign institutional investors from long-term capital gains tax on investments in government securities through an Ordinance amending the Income Tax Act. The change is intended to make sovereign debt more attractive to patient foreign capital, particularly at a time of heavy foreign fund outflows from equities and pressure on the rupee.
June 5, 2026
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Rupee appreciation and RBI policy outlook drive market focus as India-US trade talks support sentiment.
The rupee appreciated in early trade against the US dollar as market participants awaited the Reserve Bank of India's monetary policy decision, with inflation, growth and currency stability under focus. Traders viewed 96.00 as a key resistance level for USD/INR and expected a cautious policy stance to support debt inflows and a possible move toward the 95.00-95.20 range. Encouraging India-US trade talks also supported sentiment and future capital inflows.
June 5, 2026
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RBI monetary policy decision lifts market sentiment as Indian equities trade higher amid mixed global cues and foreign selling.
Indian equity markets traded higher in early session ahead of the Reserve Bank of India's monetary policy decision. Market sentiment was shaped by expectations around the policy statement and the RBI Governor's message, alongside mixed global cues and continued foreign institutional investor selling.
June 4, 2026
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Land compensation fraud and money laundering allegations linked to highway acquisition triggered enforcement action under PMLA.
Money laundering investigation arose from alleged irregularities in compensation disbursement for land acquired for the Raipur-Visakhapatnam Economic Corridor under the Bharatmala project. The allegations state that land within the notified highway alignment was acquired and then fragmented into smaller plots to claim enhanced compensation from the National Highways Authority of India. The accused, along with family members and certain public servants, is alleged to have received compensation far in excess of the amount legitimately payable, generating alleged proceeds of crime that were later layered through shares, mutual funds and other financial instruments.
June 4, 2026
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Steel import restrictions delay India-UK trade deal implementation amid concerns over domestic industry protection and tariff commitments.
Steel import restrictions are being used as a protective trade measure against global overcapacity and the risk to domestic steel-making capability. The measures are linked to delays in implementing the India-UK Comprehensive Economic and Trade Agreement, while the treaty framework also includes whisky tariff liberalisation and continuing bilateral discussions on trade cooperation.
June 4, 2026
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Emergency national security authority is being used to support coal plants, exports and fossil-fuel power reliability.
Use of emergency national security authority is proposed to fund coal-fired power support, coal exports and related infrastructure, including support for existing coal plants, recommissioning of a plant, construction of new coal plants in Alaska and West Virginia, and development of a coal export terminal in California. The announced package is described as part of a broader federal effort to sustain coal capacity and extend the operation of fossil-fuel power plants past retirement dates in response to power-demand concerns.
June 4, 2026
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Trade agreement negotiations continue as India and the United States reaffirm commitment to strengthen bilateral trade and economic ties.
India and the United States reaffirmed their commitment to conclude a mutually beneficial trade agreement aimed at strengthening bilateral trade and economic ties. Chief negotiators completed four days of talks marked by cooperation and pragmatism, with discussions covering trade in goods, non-tariff measures, customs and trade facilitation, economic security alignment, and other areas of mutual interest.
June 4, 2026
Show AI Summary
Flex-fuel vehicles and higher ethanol blends are reshaping India's fuel policy toward cleaner mobility and energy security.
Flex-fuel passenger vehicles have been introduced with technology that can run on ethanol-petrol blends ranging from E20 to E100 through an adaptive engine control system. The shift reflects India's broader move toward higher ethanol blending to reduce crude oil import dependence, strengthen energy security, lower carbon emissions, and support rural and biofuel-based economic activity. Proposed amendments to vehicle emission rules and the Central Motor Vehicles Rules, 1989, aim to widen the use of E85, E100, biodiesel, and hydrogen-CNG combinations.
June 4, 2026
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Psychological and religious coercion allegations drive chargesheet in TCS Nashik harassment and conversion case
Sexual harassment and alleged forcible conversion allegations at TCS's Nashik unit are reflected in the chargesheet filed in a case registered at Deolali Camp police station on a complaint by a 23-year-old employee. The document records statements that the accused used psychological and religious persuasion under the guise of reducing mental stress, including pressure to watch Islamic preaching videos, recite prayers, stop listening to Hindu devotional songs, visit temples less, and accept Islam. The victim further stated that one accused exploited her on the pretext of marriage and had obtained details of her bank accounts and UPI PIN.
June 4, 2026
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Foreign exchange market volatility lifts the rupee slightly as crude eases and policy expectations build.
The rupee appreciated modestly against the US dollar as easing global crude oil prices supported the currency, while heightened geopolitical tensions in West Asia limited sharper gains through safe-haven demand. Traders linked the exchange-rate movement to energy volatility, external risk sentiment and expectations around the upcoming monetary policy decision, with inflation, growth and the rupee under watch.
June 4, 2026
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Gold prices rebound on easing crude oil, while West Asia uncertainty and policy signals keep precious metals volatile.
Gold prices resumed their volatile movement and rose above the Rs 1.6 lakh per 10 grams mark as easing crude oil rates provided support. Silver extended losses for a second straight session, while market participants tracked West Asia uncertainty, tighter US monetary policy expectations, unresolved US-Iran negotiations, and the Reserve Bank of India's policy decision for further direction.
June 4, 2026
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Value-added millet exports gain momentum as APEDA facilitates a first sea shipment of botanical-infused foods to New Zealand.
APEDA facilitated the first-ever sea shipment of botanical-infused ready-to-cook millet functional foods from Karnataka to New Zealand, marking an expansion in India's value-added agri-food export basket. The export reflected rising international demand for innovative millet-based products and was linked to APEDA-supported trade promotion and business networking initiatives. The release highlights APEDA's role in export promotion through trade fairs, capacity-building and market development programmes, and notes the potential of value-added millet exports to support farmer incomes and strengthen the millet value chain.
June 4, 2026
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FEMA compounding mechanism resolves alleged foreign exchange contraventions through RBI order and ED no objection
Foreign exchange management proceedings were initiated for alleged contraventions of FEMA arising from transactions of significant value, and the company applied to the Reserve Bank of India for compounding under the statutory framework. The Enforcement Directorate issued a no objection, after which the Reserve Bank passed a compounding order and the matter was treated as compounded on payment of the prescribed monetary amount.

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Customs, DGFT & SEZ

India and the United Kingdom Unleash a Next Generation Economic Corridor: Comprehensive Economic and Trade Agreement (CETA) and Agreement on Social Security Contributions Set to Enter into Force on 15th July 2026

June 18, 2026

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Transformational Leap towards Viksit Bharat @2047: India and the United Kingdom to Activate a Historic Trade and Economic Partnership Architecture

CETA provides Zero-Duty Access on ~99% of India’s exports to the UK, covering nearly 100% of trade value

Double Contribution Convention extended from 3 years to 5 years

CETA to significantly expand Services Exports across 137 sub-sectors, including IT/ITES, professional, education and business services

In a major stride for India’s global economic engagement, the India and United Kingdom today announced that the Comprehensive Economic and Trade Agreement (CETA) will enter into force on 15th July 2026, marking a new phase in the country’s economic diplomacy. Simultaneously, the Agreement on Social Security—also referred to as the Double Contribution Convention (DCC)—will also come into effect on 15th July 2026, reinforcing the mobility and competitiveness of Indian professionals in the United Kingdom. Also, the period of exemption under DCC has been increased from 3 years to 5 years, thereby marking a major gain for India’s temporary workers.

Following the successful completion of internal procedures and ratifications by both governments, the agreements will formally enter into force on 15th July 2026. Aligned with the national vision of "Viksit Bharat 2047," this milestone will operationalize a highly sophisticated, well-balanced economic framework that translates policy into active daily commerce with a major global economy.

The groundwork for this historic agreement was laid in May 2021 through the Enhanced Trade Partnership and the adoption of the India–UK Roadmap 2030, which set the goal of elevating bilateral ties to a Comprehensive Strategic Partnership and doubling trade to USD 100 billion by 2030.

Following fourteen intensive rounds of negotiations, CETA was concluded on 6 May 2025. The agreement was officially signed on 24 July 2025 in London by India's Union Minister of Commerce and Industry, Shri Piyush Goyal, and the UK's Secretary of State for Business and Trade, Mr. Jonathan Reynolds, in the presence of Prime Minister Shri Narendra Modi and British Prime Minister Sir Keir Starmer. To complete the framework, the companion Double Contribution Convention (DCC) was subsequently signed on 10 February 2026.

Hailing the agreement as a triumph of economic statecraft, India’s Commerce & Industry Minister, Shri Piyush Goyal, stated:

“The simultaneous enforcement of the CETA and the Double Contribution Convention on 15th July 2026 will open up significant new opportunities for India’s exports. By securing immediate duty-free access on 99% of our tariff lines, we have systematically dismantled long-standing tariff walls. This will effectively level the playing field, allowing our textiles, leather, marine, engineering, and processed food sectors to compete with no disadvantage and supply their world class products.

Crucially, this structure is built on absolute economic security; stringent exclusion lists are actively deployed to insulate our sensitive agricultural and rural economies from import volatility. Simultaneously, by exempting our professionals from double insurance contributions, we are protecting the financial interests of our talent pool. This dual breakthrough aggressively expands our global commercial footprint while fiercely guarding domestic sensitivities.”

A Next-Generation Trade Framework

Comprising 30 chapters, CETA establishes a new paradigm for next-generation trade pacts, directly supporting India’s "Viksit Bharat 2047" vision. Beyond traditional tariff-cutting, the agreement modernizes bilateral engagement by integrating traditional goods and services with advanced disciplines like digital trade, telecommunications, financial services, intellectual property, and—for the first time bilaterally—government procurement. It also embeds forward-looking chapters on innovation, SMEs, sustainability, and transparency to ensure inclusive growth. Ultimately, this framework is engineered to secure critical supply chains, accelerate technological collaboration, and establish a transparent, rules-based benchmark for India’s future economic diplomacy.

Key Economic Gains

The operationalization of the Comprehensive Economic Trade Agreement (CETA) and the simultaneous Double Contribution Convention (DCC) will mark a structural transformation in India's global trade architecture. This comprehensive framework leverages India's manufacturing prowess, service capabilities, and grassroots production directly into one of the world's premier consumer arenas.

1. Transformational Market Access for Indian Exports

With the entry into force, Indian exporters will benefit from the complete elimination of UK tariffs across several key sectors. Tariffs of up to 70% on processed food products, up to 21.5% on marine products, up to 18% on engineering goods and auto components, up to 16% on leather and footwear products, up to 12% on textiles and clothing, and up to 8% on chemicals and pharmaceutical products will be reduced to zero. The immediate duty-free access secured under CETA is expected to significantly enhance the competitiveness of Indian exports in the UK market, generate new opportunities for farmers, fishermen, workers, MSMEs and manufacturers, and strengthen India's integration into global value chains.

This immediate duty-free window injects immense pricing power into the engine rooms of Indian manufacturing, allowing traditional artisans, large-scale factories, and regional industrial hubs to compete entirely on merit from day one of implementation.

At the same time, India has protected sensitive sectors including dairy products, cereals, millets, edible oils, oilseeds, apples and several vegetable products.

2. Landmark Services Package and Mobility Provisions

The UK has provided one of its most comprehensive services commitments ever, covering all major services sectors and 137 sub-sectors of export interest to India.

Indian service providers in IT and IT-enabled services, financial services, professional services, healthcare, education, engineering, telecommunications and consultancy services will benefit from enhanced market access and greater regulatory certainty.

The Agreement also provides predictable mobility pathways for:

  • Business Visitors
  • Intra-Corporate Transferees
  • Contractual Service Suppliers
  • Independent Professionals
  • Investors

In a first-of-its-kind arrangement, 1,800 Indian chefs, yoga instructors and classical musicians will be able to access dedicated mobility opportunities annually under the Agreement.

3. Agreement on Social Security: A Major Breakthrough

The Agreement on Social Security, entering into force alongside the Agreement, exempts Indian workers and employers from making dual social security contributions in the United Kingdom during temporary assignments. The period of exemption has been increased from 3 years to 5 years.

More than 75,000 Indian professionals and over 900 companies are expected to benefit. The Agreement will support mobility and continued social security coverage of the employees on temporary overseas assignments. This will enhance India-UK partnerships in the service sector, leveraging the high skills and innovative service sectors of both countries.

4. Interests of Steel Exporters Protected

Demonstrating the collaborative strength of the India-UK Comprehensive Economic Partnership Agreement (CETA), India and the United Kingdom have successfully reached a landmark consensus to safeguard and promote bilateral steel trade. Following constructive deliberations regarding the UK’s upcoming steel measures effective July 1, 2026, both sides mutually agreed to protect commercial interests, minimize market disruptions, and ensure an overall balanced and stable trading environment for exporters.

85% of India’s exports are out of the Steel measures. On the lines under the Steel measures India’s interest has been protected through a mix of CSQ, residual quota and access under Authorised Use Scheme (AUS).

A People-Centric Trade Agreement

The India–UK CETA has been designed as a people-centric agreement that delivers benefits across society.

Farmers gain access to premium export markets. Fisherfolk benefit from enhanced seafood exports. Workers gain new employment opportunities in labour-intensive sectors. Women entrepreneurs, youth, startups and MSMEs receive improved access to global value chains. Professionals benefit from enhanced mobility and recognition opportunities

The implementation of the India–UK CETA and DCC from 15th July 2026 marks a major step in India's journey towards becoming a globally integrated, resilient and competitive economy and reflects the shared commitment of India and the United Kingdom to deepen their strategic partnership and deliver prosperity for their people.

This historic economic architecture effectively prepares both nations to navigate the complexities of modern international commerce while permanently accelerating India's trajectory toward an inclusive, prosperous, and self-reliant "Viksit Bharat 2047.

The full details of the India-UK Comprehensive Economic Trade Agreement may be seen at https://www.commerce.gov.in/#/international-trade/trade-agreements/india-united-kingdom-comprehensive-economic-and-trade-agreement.

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