The US has urged India to include its purchases of Russian oil in trade negotiations, Bloomberg reported, even as Indian refiners continue to increase imports to meet rising domestic demand. A delegation led by Assistant Trade Representative Brendan Lynch raised the issue during a meeting with Indian negotiators on Tuesday, an unusual move since a country’s dealings with a third nation are rarely discussed in bilateral trade talks.

Earlier in the week, US officials visited New Delhi for discussions aimed at easing tensions after President Donald Trump imposed a 50 percent tariff on India, one of the steepest in Asia. Relations appeared to improve slightly after Trump called Prime Minister Narendra Modi on his birthday, creating cautious optimism in New Delhi about a potential trade agreement.

During the Tuesday meeting, India requested the removal of the additional 25 percent tariff on its Russian energy imports, calling the levy “unfair, unjustified and unreasonable” and emphasizing that buying Russian oil is essential for energy security. Indian refiners have no plans to cut Russian crude imports, especially as domestic fuel demand rises after the monsoon, and the government has issued no instructions to curb these purchases. Following the discussions, both sides described the talks as positive, covering multiple aspects of the trade deal, and agreed to intensify efforts to reach an agreement. The US and India had initially aimed to finalize a bilateral trade deal by autumn, but negotiations stalled as both sides took firmer positions. Washington is also pushing for greater access to India’s dairy and agricultural sectors, which New Delhi has been reluctant to open.

President Trump defended the 50 percent tariffs, insisting that his relationship with Modi remains strong despite the move. Speaking alongside UK Prime Minister Keir Starmer at Chequers, Trump said he is very close to India and maintains a good rapport with Modi, noting that he had recently called to wish him a happy birthday. Trump explained that half of the tariff is intended to discourage India from buying Russian oil, which he believes would lower global oil prices and pressure Moscow to withdraw from the war in Ukraine. If the price of oil comes down, Putin will have no choice but to drop out of that war. Despite the tariffs, India’s imports of Russian crude have remained steady.
Disclaimer: This image is taken from Bloomberg.

India’s central bank has urged state governments to diversify their borrowings across different maturities instead of relying heavily on long-term bonds, while also providing clearer fundraising plans to the market, four people familiar with the matter said. States are expected to raise a record ₹12 trillion ($135.95 billion) in FY26, and bond yields have already climbed 30–60 basis points this year, unsettling markets. The Reserve Bank of India (RBI), which oversees federal and state borrowings, did not respond to Reuters’ request for comment.

According to three of the sources, the RBI advised states during a meeting this week to spread their borrowing across the yield curve. Recent auctions have seen yields on longer-tenor state bonds jump by as much as 50 basis points due to weak demand from banks and limited interest from long-term investors.

The central bank also asked states to adhere more closely to their announced borrowing calendars. States often deviate from these schedules depending on immediate funding needs, leaving traders uncertain. One source from a private bank’s treasury department said most states’ borrowing strategies remain ad hoc. “They tap the market whenever funds are needed, often accepting bids at very high yields, which disrupts the market and causes mark-to-market losses,” the person noted.

The RBI has also relayed banks’ concerns that many large lenders are nearing their internal exposure limits to state debt, banking sources said. However, a state government official told Reuters that states do not view this as a major risk. Additionally, the RBI has encouraged states to reissue existing securities to boost secondary market trading and liquidity. At present, most states prefer issuing fresh bonds at weekly auctions, which limits exit options for investors and compels them to hold bonds until maturity, reducing appetite for new issuances, the sources added.
Disclaimer: This image is taken from Bloomberg.

Union Finance Minister Nirmala Sitharaman on Wednesday said that Goods and Services Tax (GST) reforms have added at least ₹2 trillion to the economy, putting more disposable income in the hands of citizens. Addressing the Outreach and Interaction Program on Next Gen GST Reforms in Visakhapatnam, she noted that “lowering GST rates will save people ₹2 trillion,” calling the reforms a significant milestone for India’s economic growth.

Highlighting the benefits for the middle class, Sitharaman pointed out that 99% of items previously taxed at 12% GST have been moved to the 5% slab, while nearly 90% of items under the 28% category are now taxed at 18%. She said this restructuring would not only ease financial pressure on households but also help reduce poverty.

The Finance Minister added that the impact of these reforms will be ten times greater than the incentives provided to different industries. She also reported that GST collections have grown to ₹22.08 trillion in 2025 since its launch, while the taxpayer base has expanded from 6.5 million to 15.1 million.

Later in the day, Sitharaman will participate in a Confederation of Indian Industry (CII) summit on Global Capability Centres (GCCs) in Visakhapatnam, focusing on emerging business trends, investment decisions, and state-level policies to attract GCCs. She will also join Prime Minister Narendra Modi’s virtual address on the ‘Swasth Nari, Sashakt Parivar Abhiyaan’ before attending the summit.
Disclaimer: This image is taken from Finance Ministry.

Finance Minister Nirmala Sitharaman emphasized that as artificial intelligence (AI) rapidly advances, regulatory frameworks must evolve just as quickly to ensure its responsible use for the greater good. Speaking at a NITI Aayog event, she called for a “soft-touch” regulatory approach—one that guides AI applications without stifling innovation.

Sitharaman compared AI’s potential to a powerful boon that, if misused, could cause harm, stressing that it must always be directed toward the common good. She highlighted the urgency of skilling and upskilling the workforce to meet industry demand for AI-ready talent, warning that without this, many workers risk displacement. The minister also pointed out that training centres need to be upgraded so that certifications remain relevant to employers.

She underlined AI’s ability to provide practical solutions across sectors—including health, agriculture, space, and especially urban development—without displacing people from their environments. India, she added, should not just keep pace but aim to lead in AI adoption. Complementing her views, IT Minister Ashwini Vaishnaw assured that India’s AI strategy would prioritize innovation, with regulation serving as a safeguard rather than a barrier.

The NITI Aayog’s “AI for Viksit Bharat Roadmap Report” projected that AI could contribute $500–600 billion to India’s GDP by 2035, helping the country reach its aspirational $8.3 trillion growth target. It also announced initiatives such as a frontier tech repository and the “Frontier 50 Initiative” to accelerate AI-driven solutions in aspirational districts and beyond.
Disclaimer: This image is taken from PTI.

The U.S. government’s recent adjustments to H-1B visas — including stricter eligibility criteria and increased wage thresholds — are impacting sectors such as technology, healthcare, and finance. Andrea Heng and Syahida Othman discuss with Alex Capri, Senior Lecturer at NUS Business School and author of Technonationalism: How It’s Reshaping Trade, Geopolitics, and Society, how these changes influence skilled foreign workers, corporate hiring strategies, and the wider economy.
Disclaimer: This Podcast is taken from CNA

In the daily market analysis on Open For Business, Andrea Heng and Hairianto Diman discuss market insights with Jun Bei Liu, Founder and Lead Portfolio Manager at Ten Cap.

Disclaimer: This Podcast is taken from CNA.

After the US announced a pilot program that may require bonds up to 15000 dollars for certain tourist and business visas, Hairianto Diman and Susan Ng explore the importance of travel visas in today's interconnected world with insights from Scott Moore, Managing Director of Henley and Partners.

Disclaimer: This Podcast is taken from CNA.

On Wednesday (Jul 16), Indonesian President Prabowo Subianto welcomed what he called a “new era of mutual benefit” with the United States after President Donald Trump set a 19 per cent tariff on Indonesian exports to the U.S. — significantly lower than the previously threatened 32 per cent. Andrea Heng and Hairianto Diman discuss the economic implications of the revised tariff with Adam Samdin, an economist from Oxford Economics’ Asia Macro team.

Disclaimer: This Podcast is taken from CNA.