India, EFTA trade pact to come into force from October 1: Switzerland (The Hindu)
India’s free trade agreement with the European Free Trade Association (EFTA) — comprising Switzerland, Norway, Iceland, and Liechtenstein — will take effect on October 1, 2025, and is historic for including India’s first legally binding commitments on trade and sustainable development, alongside guarantees of $100 billion investment over 15 years to create one million jobs. The pact provides Switzerland and its partners with improved access to the Indian market, with India granting tariff concessions on nearly 95% of Swiss exports such as pharmaceuticals, machinery, watches, chocolates, and processed farm goods, while benefiting from long-term capital inflows and job creation. By embedding environmental, social, and human rights provisions into trade rules, the agreement enhances legal certainty and predictability in economic ties, making it India’s most ambitious and comprehensive trade partnership to date.
Russian oil shifts to China as tariffs hit India (The Economic Times)
Russia’s crude exports have rebounded to a seven-week high of 3.49 million barrels a day, even as flows to India fell sharply by nearly one-third under pressure from US President Trump’s 50% tariffs, with China stepping in as a key buyer and lifting imports to a five-month high of 1.28 million barrels a day. The decline in India-bound shipments—down by about 550,000 barrels a day from March peaks—highlights how Washington’s punitive measures are reshaping trade flows, though New Delhi has resisted pressure to cut ties with Moscow. At the same time, Russia restored supplies from Sakhalin 2 and Baltic ports after disruptions, while Ukrainian drone strikes on refineries may be paradoxically boosting Moscow’s export availability, underscoring the fluidity of its wartime energy strategy.
India delivers tax bonanza ‘for common man’, new GST rates from 22 September (Hindustan Times)
India has overhauled its GST regime by collapsing four slabs into a simpler two-tier structure of 5% and 18%, while introducing a 40% slab for sin and luxury goods, with exemptions for health and life insurance as well as life-saving medicines; this sweeping reform aims to reduce costs for consumers, energise demand, and strengthen ease of doing business, particularly benefiting sectors like autos, real estate, agriculture, and healthcare. The move sharply lowers taxes on small cars, two-wheelers, cement, and daily-use items, boosting affordability for the common man and supporting industries such as Maruti Suzuki, Hero MotoCorp, and real estate developers, while companies like Bajaj Auto and Royal Enfield face higher levies on larger motorcycles; at the same time, tobacco, luxury vehicles, and aerated beverages now face the new 40% slab. Although the reform is expected to cost the exchequer ₹48,000 crore annually, policymakers and industry leaders believe the gains in consumption, compliance, and investor confidence will outweigh the revenue loss, making this “GST 2.0” a transformative step toward inclusive growth and India’s long-term economic vision of Viksit Bharat 2047.
