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US tariff cut to 18% is positive signal for Indian exporters, says Sitharaman

Nirmala Sitharaman says India’s exports could recover after the US reduced tariffs on Indian goods to 18%, restoring competitiveness in key sectors.

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Nirmala Sitharaman

India’s exports to the United States are expected to gain momentum following Washington’s decision to reduce tariffs on Indian goods to 18%, Finance Minister Nirmala Sitharaman said on Tuesday, describing the move as a “good auguring” for exporters.

Speaking in an interview to media, Sitharaman said the tariff reduction would help Indian exporters regain competitiveness in the US market, particularly after the sharp impact of punitive duties imposed last year.

“So, actually our exports will pick up now, that is my expectation,” she said, adding that exporters had also identified alternative markets during the period of elevated tariffs and would continue operating in them.

Tariff rollback brings relief after export setback

The US had imposed steep tariffs of up to 50% on Indian goods last year, which significantly raised landed costs and squeezed exporter margins. Several sectors, including steel, aluminium, textiles, engineering goods and certain agricultural products, were affected as US buyers diverted orders to other suppliers.

On Monday, US President Donald Trump announced a reduction in tariffs on Indian goods to 18% as part of a broader trade understanding. The agreement includes India lowering trade barriers and committing to stop purchases of Russian oil, instead sourcing energy from the US and potentially Venezuela.

On implementation, the revised tariff structure would bring duties on Indian exports broadly in line with other Asian economies, where rates range between 15% and 19%.

Improved competitiveness against regional rivals

The 18% tariff undercuts duties imposed on key regional competitors such as Vietnam and Bangladesh, which face tariffs of around 20%. This is expected to restore India’s price advantage in the US market.

Labour-intensive sectors such as apparel, footwear and jewellery are likely to see the most immediate benefit. These segments had witnessed a sharp fall in orders after the 50% tariffs imposed in August severely dented competitiveness.

Earlier in the day, Sitharaman described the development as “good news for #MadeInIndia products” in a social media post, noting that Indian goods would now face reduced duties in the US market.

Trade and capital flow impact

Earlier punitive tariffs had also weighed on bilateral trade. India’s trade surplus with the US shrank by an average of USD 2.5 billion per month between September and December 2025 compared to the January–August period, according to research cited in the report.

Investor sentiment had weakened as well, with foreign investors pulling out nearly USD 14 billion in equities since July 2025.

The rollback of the additional 25% punitive tariff linked to Russian oil purchases effectively lowers the applied tariff on Indian exports from 50% to 18%, offering significant relief to exporters and improving prospects for a recovery in trade flows.

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Security tightened across Delhi metro stations after bomb threat emails

Delhi is on high alert after bomb threat emails targeted metro stations, the Red Fort and the Assembly. Authorities confirmed the threats were hoaxes but tightened security as a precaution.

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Delhi Metro

Security has been intensified across all metro stations and major installations in the national capital after a series of bomb threat emails were received on Monday. Authorities later confirmed that the threats were hoaxes following detailed inspections by security agencies.

According to officials, several key institutions — including the Delhi Secretariat, Delhi Assembly, the Red Fort and two schools — received threatening emails earlier in the day. Extensive searches were carried out at all the locations mentioned in the messages, but nothing suspicious was found.

A senior police officer said cyber teams are working to trace the origin of the emails. Preliminary findings suggest that the senders may have used Virtual Private Networks (VPNs) in an attempt to conceal their identities and mislead investigators. Officials expressed confidence that those responsible would be identified.

Metro stations under heightened surveillance

Following specific references to metro services in the emails, security arrangements were strengthened across the entire network of the Delhi Metro Rail Corporation. Additional personnel have been deployed at stations, and anti-sabotage checks are being conducted.

Police said random frisking of passengers and intensified CCTV surveillance are being carried out as part of precautionary measures. Bomb disposal squads and dog squads were stationed at sensitive sites, including the Red Fort, Delhi Secretariat and the Assembly complex.

The threatening emails reportedly included the slogan “Delhi banega Khalistan” and warned of explosions at an Army school, the Assembly and the Red Fort at specific times during the day. Officials stated that all mentioned locations were thoroughly checked and declared safe.

Authorities also coordinated with counterparts in neighbouring states to enhance security at metro stations falling under their jurisdictions.

While no explosives were found, officials said the tightened security arrangements will remain in place as a precaution. Cyber teams continue efforts to trace the IP addresses and identify those behind the threat emails.

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JNU protest turns violent as Left and Right student groups trade charges

A late-night protest at JNU turned violent as Left and ABVP student groups accused each other of stone-throwing and attacks near the East Gate.

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JNU Protest

Tension gripped the campus of Jawaharlal Nehru University in the early hours of Monday after a protest march allegedly spiralled into violence, with rival student groups accusing each other of triggering the unrest.

Students claimed that the incident occurred around 1.30 am when a confrontation broke out during a march called by the Jawaharlal Nehru University Students’ Union. The protest, named “Samta Juloos”, was headed towards the East Gate and was organised to demand the resignation of Vice-Chancellor Santishree Dhulipudi Pandit and the withdrawal of a rustication order.

According to protesters, several students were injured after alleged stone-throwing during the clash. They alleged that the university administration did not intervene during the march and instead permitted members of the Akhil Bharatiya Vidyarthi Parishad to confront demonstrators.

However, the ABVP denied the allegations and countered that Left-affiliated organisations instigated the confrontation and were spreading misinformation about the events.

Left-backed groups, including the All India Students’ Association, claimed that ABVP activists targeted the JNUSU encampment and hurled stones at “unarmed students”, leading to multiple injuries.

Videos shared by students on social media reportedly showed chaotic scenes near the protest site, with members of rival groups engaged in heated exchanges and physical scuffles.

University authorities did not immediately respond to queries regarding the incident. Students said the situation on campus remained tense following the overnight clashes.

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World praised India’s AI potential at AI Impact Summit, says PM Modi

PM Modi said the world praised India’s AI potential at the AI Impact Summit 2026, where 89 countries endorsed the New Delhi Declaration on artificial intelligence.

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pm modi speech

Prime Minister Narendra Modi on Monday said that the world wholeheartedly praised India’s potential during the recently concluded AI Impact Summit 2026 in New Delhi, highlighting the growing global confidence in the country’s young technology talent.

In a post on X, the Prime Minister said the summit demonstrated how the mindset of India’s youth in the field of technology would serve humanity at large. He described the event as historic and underlined the positive global response to India’s AI capabilities.

The AI Impact Summit 2026, organised in New Delhi last week, concluded with the adoption of the New Delhi Declaration on AI Impact. The declaration has been endorsed by 89 countries and international organisations, signalling broad global agreement on promoting artificial intelligence for economic growth and social welfare.

Broad global participation

The summit saw the participation of several prominent world leaders and top technology executives. Among those present were UN Secretary-General Antonio Guterres, French President Emmanuel Macron, Brazilian President Luiz Inacio Lula da Silva, and Swiss President Guy Parmelin.

Other leaders attending the summit included Sri Lanka President Anura Kumara Dissanayake, Bhutan Prime Minister Tshering Tobgay, Mauritius Prime Minister Navinchandra Ramgoolam, Croatia Prime Minister Andrej Plenkovic, Serbia President Aleksandar Vucic, Seychelles Vice President Sebastien Pillay, Estonia President Alar Karis, and Finland Prime Minister Petteri Orpo.

Chief executives and senior leaders from major global technology firms were also part of the gathering.

Focus on inclusive AI growth

Held under the theme ‘Sarvajan Hitay, Sarvajan Sukhay’ (welfare for all, happiness of all), the summit aimed to position India as a global leader in artificial intelligence while ensuring that AI development remains inclusive and sustainable.

The event brought together more than 500 international AI leaders. This included around 100 CEOs and founders, 150 academicians and researchers, and 400 CTOs, vice presidents and philanthropists. Additionally, over 100 government representatives and nearly 60 ministers and vice ministers participated in discussions.

The New Delhi Declaration seeks to strengthen international cooperation and ensure that AI technologies contribute to economic progress, social good and environmental protection.

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