Daily News - Friday, 5 September 2025

'No need to panic, negotiations underway': Piyush Goyal on Trump tariffs (Business Standard)

⁠Commerce Minister Piyush Goyal downplayed concerns over President Trump’s sudden 50% tariffs on Indian goods, saying negotiations with the US are progressing and stressing that both nations share strong relations that will lead to a “fair and balanced” agreement in due course. He clarified that there is no fixed timeline for talks, urging patience since discussions aim at long-term stability, while also noting that the recently announced GST reforms—compressing four slabs into two and ending compensation cess on several goods—were months in the making and coincided with US tariffs by chance. The GST overhaul reduces rates to 5% and 18% for most goods and services, keeps a 40% band for luxury and sin items, and exempts critical sectors like health and education, signaling a major simplification even as trade tensions with Washington remain unresolved.

India's economy to hurt if states not compensated for GST losses: Kerala FM (Mint)

Kerala has warned of an annual revenue loss of ₹8,000–10,000 crore from the GST rate cuts, arguing that while the Centre expects higher consumption to offset losses, state-specific spending patterns mean Kerala may not see such buoyancy, especially with key sectors like automobiles, insurance, cement, and electronics alone causing a ₹2,500 crore shortfall. Finance minister K.N. Balagopal urged the Centre to restore some form of compensation mechanism—possibly using the ongoing cess on tobacco and other sin goods—and even suggested revising the Centre–state revenue-sharing ratio from 41:59 to 40:60 in favour of states, while also allowing state-specific cesses to safeguard fiscal autonomy. Meanwhile, the GST Council hailed the reform as the biggest overhaul of the system, simplifying it from four tax slabs to two, reducing tax on 400 goods and services, and promising easier compliance, stronger competitiveness, and potentially higher consumer demand if industries pass on the benefits.

Indian exporters lobby RBI for weaker rupee to offset US tariffs (The Economic Times)

⁠Indian exporters, hit hard by President Trump’s sudden 50% tariffs that make their goods uncompetitive against rivals like Vietnam and Bangladesh, are urging the RBI to let them temporarily convert US earnings at a heavily discounted rupee rate of about ₹103 per dollar versus the market’s ₹88, to soften the blow on existing shipments. While exporters argue this special rate is an interim cushion for orders already booked, economists warn it risks destabilizing the rupee, draining forex reserves, and worsening investor sentiment, stressing that subsidies or credit relief from the government would be a safer route. Alongside this, exporters have also sought a moratorium on loan repayments, cheaper credit, collateral-free working loans, and wage support, with the government promising ample liquidity but facing calls to provide more direct, non-currency-based assistance. 

⁠India plans $125 billion push to boost high-speed road network (The Economic Times)

India will spend ₹11 lakh crore ($125 billion) over the next decade to expand its high-speed expressway network fivefold, adding 17,000 km of access-controlled roads that cut logistics costs, boost safety, and allow speeds of up to 120 km/h, with nearly 40% already under construction and the rest targeted for completion by 2033. The government is using a hybrid financing approach—pushing more projects under the BOT model with 15%+ return potential while relying on the Hybrid Annuity Model for lower-return corridors—to draw greater private participation, after years of lukewarm investor interest in roads. Despite these challenges, global funds like Brookfield, Blackstone, and CPPIB, along with domestic giants such as Adani, are increasingly betting on India’s infrastructure, with Deloitte projecting hundreds of billions in inflows over the next three years, making the road plan a cornerstone of the country’s broader modernization drive.

Indian students chose Germany, UAE over US for higher studies (Financial Express)

⁠Fresh data shows a 13% drop in Indian applications to US universities, as rising costs, tougher visa rules, and uncertain post-study work options push students toward more affordable and career-focused destinations like Germany, the UAE, and Ireland, while Canada and the UK also lose traction. The Transnational Education Report 2024-25 highlights that Indian students now prioritize return on investment, with nearly half focusing on better jobs rather than permanent residency, favoring shorter, skill-driven master’s programs in management, MBA, and STEM fields. Funding patterns reveal a pragmatic shift, with most students working within ₹10–30 lakh budgets and relying on loans, scholarships, or self-funding, reflecting a new generation that views global education as a strategic investment in employability rather than a migration pathway.