Karishma Asoodani

Sources said the Budget 2026-27 already factored in global uncertainties, giving the government room to handle external shocks.

Speaking about the ongoing negotiations, Goyal said discussions between the two sides would continue from June 2 to June 4 to resolve a few remaining issues before the agreement is formally announced.

One of the key reasons behind the improved outlook is a reduction in additional US tariffs on Indian goods. These tariffs have come down from 50% to 10%, easing pressure on exports.

The central government has retained the 4% retail inflation target with a 2–6% tolerance band for another five years, from April 2026 to March 2031, in consultation with the RBI.

Global oil prices rose for the third straight session on Tuesday. Traders are worried that supplies from the Middle East, one of the world's most important oil-producing regions, could be disrupted.

Iran launched missile and drone strikes on Dubai, prompting the UAE to intercept the attacks and shut down its airspace, causing widespread flight disruptions.

Speaking on the development, Commerce Secretary Rajesh Agrawal said a joint statement outlining the contours of the agreement has already been signed. He said that these contours now need to be converted into a formal legal agreement.

Finance Minister Nirmala Sitharaman's ninth Union Budget signals a shift in approach, using Part B to lay out India's broader economic vision and the government's reform roadmap.

If IndiGo scales back operations on high-frequency routes for longer period, rival airlines may gain temporary access to its slots. However, the industry's limited spare capacity could constrain how much of this opportunity can be utilised, potentially pushing fares higher in the near term, unless the fare caps exist.

India's Ministry of Civil Aviation has imposed emergency caps on domestic airfares following IndiGo's massive flight cancellations, aiming to protect passengers from soaring ticket prices during the peak travel season. This intervention seeks to stabilise the market amid one of the worst aviation disruptions in recent years.

In July, the Air Traffic Controllers' Guild had urged that air navigation systems be periodically reviewed and upgraded to global standard. Months later, Delhi airport witnessed a major system crash.

India-US trade discussions are gaining momentum, with both nations exploring ways to enhance economic cooperation, address tariffs, and boost energy trade.

The Jaishankar-Rubio meeting also coincides with the ongoing India-US trade talks which are currently underway in Washington, with Union Commerce Minister Piyush Goyal leading the discussions which resumed after Trump marked a shift in tone, and announced that his team was continuing negotiations to address trade barriers with New Delhi.

The Commerce Ministry said the discussions with the US trade officials were "positive and forward-looking" and covered various aspects of the proposed trade deal.

The textile and fertiliser industries are expected to be among the biggest beneficiaries of the upcoming GST 2.0 rationalisation amid US President Donald Trump's 50% tariff.

The proposed changes, to be discussed at the Council's meeting on September 3–4 in New Delhi, focus on widening the nil rate, scrapping the 12% slab, and reducing rates on selected 18% goods.

According to the proposals, GST on four-wheeled EVs priced between Rs 20 lakh and Rs 40 lakh will be raised from 5 per cent to 18 per cent.

The proposed rationalisation stems from the Council's broader push to simplify the GST framework.

The fitment committee has proposed that products such as butter, condensed milk, jams, mushrooms, dates, nuts, and namkeens move from the current 12 per cent GST slab to just 5 per cent.

The PMO on Tuesday held a high-level meeting with senior ministers and officials from the Finance and Commerce Ministries to frame India's response to the US decision to double tariffs on Indian goods to 50% from Wednesday.