Daily News - Thursday, 4 June 2026
India Oman CEPA Brings Duty-Free Access to 945 Textile Lines (Economic Times)
The India Oman Comprehensive Economic Partnership Agreement (CEPA), effective from June 1, 2026, grants Indian textile and apparel exporters immediate duty-free access on 945 tariff lines, eliminating the 5% MFN duty and boosting competitiveness in Oman’s USD $598 million (INR ~4,985 crore) textile import market. India’s exports of textiles, apparel and handicrafts to Oman stood at USD $95.1 million (INR ~793 crore) in FY 2025-26, with the Textile Ministry highlighting opportunities for MSMEs, artisans, and value added products such as carpets and fabrics. The pact also introduces a digital Certificate of Origin framework and recognition of Geographical Indications, enhancing efficiency and global visibility for India’s GI tagged handloom and handicraft products. Meanwhile, the Union Cabinet led by Prime Minister Narendra Modi has approved an ordinance, moved by the Finance Ministry, to ease tax burdens on foreign investors, aiming to stabilize capital flows amid a record withdrawal of INR 2.25 lakh crore from equities since January. Reports suggest further measures, including cuts in bond taxes and relaxed investment rules, to attract overseas capital and strengthen financial markets. Despite India’s Q4 GDP growth of 7.3%, IMF data shows the country slipping to 6th place globally, underscoring the need for both external trade expansion and domestic reforms to sustain momentum.
India Considers Cutting 20% Bond Tax to Boost Capital Inflows (News18)
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an ordinance initiated by the Finance Ministry to ease tax burdens on foreign investors in select securities, a move designed to stabilize markets amid heavy capital outflows. Since January 2026, foreign portfolio investors (FPIs) have withdrawn a record INR 2.25 lakh crore from Indian equities, contributing to a nearly 6% depreciation of the rupee against the USD $ (INR). To counter this, the government is considering reducing or abolishing the 20% tax on interest income earned by overseas investors from Indian bonds, aligning India’s debt market with global practices. The Reserve Bank of India (RBI) is also evaluating an expansion of the Fully Accessible Route (FAR), which allows unrestricted foreign investment in long-duration sovereign bonds. These coordinated measures by the Finance Ministry and RBI aim to attract fresh foreign capital, ease currency pressure, and reinforce investor confidence. Together, they reflect India’s broader strategy of combining tax reforms with regulatory flexibility to strengthen its financial markets and safeguard economic stability.
US-India Trade Deal 99% Complete, Ambassador Sergio Gor Confirms Last 1% Pending (Business Standard)
US Ambassador to India Sergio Gor announced that the long-pending US-India trade deal is 99% complete, with final technical and legal issues being resolved in meetings scheduled with Commerce and Industry Minister Piyush Goyal in New Delhi this week. Gor highlighted that bilateral merchandise and services trade has expanded eleven-fold over two decades, rising from USD $20 billion (INR ~1.66 lakh crore) to USD $220 billion (INR ~18.3 lakh crore)Current page. He emphasized the strategic importance of the partnership, noting recent corporate commitments including Amazon’s planned USD $35 billion (INR ~2.91 lakh crore) investment by 2030, Microsoft’s USD $17.5 billion (INR ~1.45 lakh crore) outlay, and Google’s USD $15 billion (INR ~1.25 lakh crore) AI hub. On the supply chain front, the US-India Critical Minerals Framework was signed last week by US Secretary of State Marco Rubio and External Affairs Minister S. Jaishankar, strengthening cooperation in trusted technology and energy networksCurrent page. Gor also underscored India’s role in pharmaceuticals, noting that the US currently imports nearly 40% of its generic drugs from India, reflecting trust in India’s manufacturing standards. He concluded by reaffirming that the US-India relationship, bolstered by initiatives like the TRUST framework launched in 2025, is poised to become the defining strategic partnership of the 21st centuryCurrent page.
India-Cambodia Payment Connectivity Goes Live: UPI Linked to KHQR (Financial Express)
The Reserve Bank of India (RBI) and the National Bank of Cambodia have launched the first phase of payment connectivity, linking India’s Unified Payments Interface (UPI) with Cambodia’s KHQR system. The initiative, rolled out in Phnom Penh, enables Indian travellers to make real time QR code payments at over 4.5 million Cambodian merchants, reducing reliance on cash and card transactions. The project is being implemented by NPCI International Payments Ltd (NIPL) in partnership with Acleda Bank Plc, under RBI’s oversight. The second phase will allow Cambodian travellers to make payments at UPI QR-enabled merchants in India, further deepening bilateral financial integration. The RBI highlighted that this initiative aligns with the G20 roadmap to make cross border payments cheaper, faster and more transparent. This marks a significant step in India’s broader strategy to internationalise UPI, following similar linkages with Singapore, UAE and France, and strengthens India’s digital financial footprint in Southeast Asia.
