US President Donald Trump has indicated that Washington and New Delhi are on the verge of finalising a long-awaited trade agreement following discussions with Prime Minister Narendra Modi on the sidelines of the G7 Summit in Evian-les-Bains, France. The meeting, their first one-on-one interaction in over a year, focused on trade, regional security, maritime safety, and the broader India-US partnership. Officials familiar with the talks described the atmosphere as highly positive, suggesting a notable improvement in ties that have faced several challenges over the past year.

Speaking to reporters after the meeting, Trump said his conversation with Modi was productive and reaffirmed that both countries were making significant progress toward a trade pact. According to Trump, negotiations have been underway for some time and are now approaching the final stages. He also praised Modi’s negotiating skills, describing the Indian leader as one of the toughest counterparts he has dealt with in trade discussions.

In a characteristically light-hearted remark, Trump joked that Modi’s calm and friendly appearance masks his strong negotiating instincts, calling him a formidable dealmaker who often catches people by surprise. The US President also revealed plans to visit India in the near future. New Delhi is expected to host the next Quad Summit, where leaders from India, the United States, Japan, and Australia are likely to meet.

During the discussions, Modi highlighted concerns regarding the safety of Indian sailors working across global shipping routes. Stressing their crucial contribution to international trade, he said protecting seafarers should remain a priority amid ongoing tensions in West Asia. The Prime Minister expressed confidence that efforts to reduce regional instability, particularly involving Iran, would place greater emphasis on maritime security. He also underlined the importance of keeping the Strait of Hormuz open, noting its critical role in supporting global trade and energy supplies.

The issue has gained urgency following the deaths of three Indian sailors in recent US military strikes involving merchant vessels operating near Oman. Addressing Modi’s concerns, Trump responded by expressing support and concern for those working at sea. Security cooperation was another important topic during the meeting. Trump described India and the United States as close partners and suggested that Washington would stand by India in the event of external aggression, despite the absence of a formal mutual defence treaty between the two countries.

He also highlighted his longstanding personal rapport with Modi and praised the broader economic relationship between the two nations. Relations between New Delhi and Washington have experienced several strains since the leaders last met in Washington in February 2025. Points of friction have included US tariffs on Indian products, American engagement with Pakistan’s military leadership, immigration-related concerns, and tensions arising from incidents involving Indian crew members on vessels targeted during military operations in the Middle East.

In an effort to improve diplomatic momentum, US Secretary of State Marco Rubio visited India earlier this year to strengthen communication between the two governments. Earlier at the G7 outreach session, Modi spoke about the importance of trust in international relations. He argued that while the world possesses sufficient resources, a lack of confidence among nations remains a major challenge.

Referring to former US President Ronald Reagan’s famous phrase, Modi remarked that the principle of “trust but verify” continues to hold relevance in today's geopolitical environment. He said the future strength of international partnerships will depend largely on rebuilding confidence and credibility among nations. The Prime Minister concluded by reiterating the need to safeguard seafarers and ensure that maritime security remains a key priority in an increasingly uncertain global landscape.
Disclaimer: This image is taken from PTI.

India’s wholesale inflation remains high, but falling global crude oil prices and a stable rupee may ease future price pressures. This could give the Reserve Bank of India (RBI) room to delay any immediate interest rate hike despite a sharp jump in wholesale inflation, according to a YES Bank report.

The report highlighted that the revised Wholesale Price Index (WPI) inflation rose to 9.7% year-on-year in May, up from 8.3% in April, pointing to persistent cost pressures across the economy. Fuel inflation was a major driver, surging 30.3% due to higher prices of petrol, natural gas, and other petroleum products, while manufacturing inflation increased to 7.5%, showing widespread price gains.

YES Bank noted that recent global commodity trends could offer some relief. It pointed to expectations of easing crude oil prices and softer industrial metal costs, supported by developments such as a possible US–Iran peace agreement. The report added that lower crude prices, along with a stable Indian rupee and a weaker US dollar, could reduce imported inflation and limit further fuel price increases by oil marketing companies. It also suggested that these conditions may allow the RBI to postpone rate hikes further, as inflation risks moderate.

Based on these factors, the bank has reduced the likelihood of an August rate hike, saying the RBI may prefer to wait for clearer signals, including weather-related risks like El Niño. While consumer inflation remains within the RBI’s projections, risks from food prices and rising inflation expectations continue to be monitored. The report noted the government’s shift toward a new Producer Price Index (PPI) system, where Output PPI is expected to gradually replace the WPI over the next five years.

Disclaimer: This image is taken from ANI.

The Centre on Friday issued the Income-tax (Amendment) Ordinance, 2026, granting Foreign Institutional Investors (FIIs) exemption from tax on interest income and capital gains earned through investments in government securities. The move is aimed at attracting stable long-term foreign capital and strengthening India’s bond market.

Since Parliament is currently not in session, the Ordinance was promulgated to amend Schedule IV of the Income-tax Act, 2025, with retrospective effect from April 1, 2026. As per the Gazette notification, the amendment introduces a new provision under the tax-exempt income category, stating that any interest earned on government securities, along with capital gains arising from their sale, transfer, or exchange by FIIs, will be exempt from tax, provided the required disclosures are submitted. The same benefit has also been extended to the Bank for International Settlements (BIS).

The measure is expected to encourage greater foreign participation in India’s sovereign debt market, particularly in long-term government bonds. Stable overseas investments in government securities can support public expenditure and investments across sectors such as infrastructure, urban development, climate transition, manufacturing, and social welfare.

Increased foreign investment is also likely to enhance liquidity and improve price discovery in the government securities market, helping make borrowing costs more efficient across the financial system. Since government bond yields act as benchmark rates for corporate borrowing, bank loans, and infrastructure financing, a stronger sovereign debt market is considered vital for overall financial-sector efficiency.

The government believes the exemption will diversify the investor base for sovereign debt, boost competition in primary auctions and secondary markets, and gradually lower borrowing costs by compressing term premia. The decision further strengthens the appeal of Indian government securities among global investors as India deepens its integration with international capital markets. It follows earlier reforms such as the Fully Accessible Route (FAR), which enabled the inclusion of Indian government bonds in major global bond indices and helped attract long-term passive foreign investments. The definition of Foreign Institutional Investor will follow the provisions of the Income-tax Act, while “government security” will carry the meaning assigned under the Government Securities Act, 2006. The exemption will apply subject to prescribed disclosure and reporting requirements.

Disclaimer: This image is taken from ANI.

A Parliamentary panel has expressed concern over sluggish private investment despite a sharp rise in government capital expenditure, calling it a major challenge for the Indian economy. Parliamentary Standing Committee on Finance Chairman Bhartruhari Mahtab on Thursday said the issue was discussed extensively during a meeting of the panel with senior government officials, including Chief Economic Advisor V. Ananth Nageswaran.

Mahtab said the committee reviewed the evolving economic situation, including inflation, growth trends, foreign investment flows and global developments affecting India. “The challenge is that while government investment and capital expenditure are increasing, private investment is not picking up at the same pace. This is something that needs to be addressed,” the Lok Sabha MP said. The panel also discussed opportunities emerging from global companies seeking to diversify manufacturing operations away from China. Mahtab said India would need policy reforms and targeted support measures to attract such investments.

“That is a concern, and certain policy changes are required. We also need to decide what kind of support should be provided to companies moving out of China to help them set up industries in India,” he said. According to Mahtab, discussions also covered China’s recent industrial protection measures, inflationary pressures, the impact of the West Asia conflict and their implications for the global economy.

Despite global headwinds, the committee noted that India’s economic outlook remains positive, supported by improving domestic indicators. “Household savings have increased compared to last year, and investment is also rising,” Mahtab said. The panel further reviewed foreign direct investment trends and raised concerns over capital outflows despite robust inflows into India.

“While India is attracting large amounts of FDI, there is also a flight of investment from the country,” he said. Quoting the Chief Economic Advisor, Mahtab said such movements are cyclical in nature, with phases of increased inflows often followed by periods of outflows. He also pointed out that developed economies, particularly the United States, are currently attracting significant global investment. Rising interest rates in countries such as Japan are also influencing capital flows, he added.

On concerns over inflation due to the West Asia conflict, Mahtab said the government had already taken several measures, including the creation of a corpus fund, to address potential economic pressures. Responding to questions on the rupee, he said the Reserve Bank of India was taking steps to stabilise the currency. The Parliamentary panel is expected to meet again in the third week of June and prepare a report outlining key economic challenges along with policy recommendations for the government.

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Elon Musk has reportedly become the world’s first trillionaire, driven largely by SpaceX, whose massive IPO has pushed its valuation above $2 trillion. At the same time, huge investments in artificial intelligence are lifting other major tech companies like OpenAI and Anthropic, both of which are expected to go public with valuations nearing a trillion dollars. According to The Guardian’s US tech editor Blake Montgomery in conversation with Kai Wright, these IPOs mean that the global financial system is becoming increasingly tied to the success of AI—and potentially exposed to significant risk if it fails.

Disclaimer: This podcast is taken from The Guardian.

Singapore’s Ministry of Trade and Industry (MTI) has kept its GDP growth forecast at 2–4%, supported by stronger-than-anticipated economic performance in the first quarter. At the same time, core inflation eased more than expected in April. Economists caution that geopolitical uncertainties and weaker external demand continue to pose risks. Susan Ng and Hairianto Diman discuss the strength of Singapore’s economy and its outlook for the coming months with Jeff Ng from Sumitomo Mitsui Banking Corporation.

Disclaimer: This podcast is taken from CNA.

In “Culture Club,” Melanie Oliveiro explores the beauty product industry through a conversation with Joyce Tirindelli, a 20-something, third-generation CEO of the Italian skincare brand World of Beauty. Tirindelli shares how she was prepared for leadership and now oversees a portfolio of over 200 products that are vegan, Halal-certified, and environmentally friendly. She also discusses the brand’s expansion strategy in Southeast Asia, a region expected to become the world’s fourth-largest economy by 2030.
Disclaimer: This podcast is taken from CNA.

As tensions rise in Iran, the global energy system is being tested like never before. Critical chokepoints such as the Strait of Hormuz, along with concentrated LNG infrastructure in hubs like Ras Laffan, highlight the inherent rigidity and vulnerability of oil and gas markets. Andrea Heng and Hairianto Diman explore what “market adjustment” looks like when long-term contracts offer little flexibility, and why Europe could once again face a challenging scramble for energy supplies. Their analysis includes insights from Pang Lu Ming, Vice President of Gas & LNG Research at Rystad Energy.

Disclaimer: This podcast is taken from CNA.