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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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India stresses mutual respect in ties with Italy after Congress’ Meloni remark

India stressed mutual respect and understanding in its ties with Italy after Congress leaders, including Rahul Gandhi, made remarks involving Giorgia Meloni.

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India underlined the importance of maintaining mutual respect and understanding in its relationship with Italy, a day after Congress leaders, including Rahul Gandhi, took a swipe at Prime Minister Narendra Modi’s handling of foreign policy.

The Ministry of External Affairs said India and Italy share strong bilateral ties and expressed its commitment to further strengthening the relationship.

“We share deep and strong ties with Italy, and we are committed to further strengthening this relationship,” the MEA said. It added that friendship and bilateral relations between countries should be maintained within a framework of mutual respect and understanding.

The statement came after a political controversy over remarks made at a Congress event in Delhi.

Rahul Gandhi’s mock hug draws BJP criticism

At the Congress event, Rahul Gandhi greeted party leader Sandeep Dikshit with a mock hug. Gandhi had earlier criticised the Prime Minister’s approach to diplomacy, suggesting that it was being reduced to symbolic gestures such as hugging foreign leaders.

Dikshit then brought Italian Prime Minister Giorgia Meloni into the exchange with a remark, following which Rahul Gandhi played along.

The episode drew sharp criticism from BJP leaders, who accused the Congress leader of using inappropriate language against the Prime Minister and lowering the dignity associated with the office of the Leader of Opposition.

Union Education Minister Pralhad Joshi questioned Rahul Gandhi’s conduct and said India required mature leadership. He also criticised remarks in which Gandhi had referred to the government as “jokers and clowns”.

BJP leaders target Rahul Gandhi

Union Minister Giriraj Singh also attacked Rahul Gandhi, describing him as “mentally frustrated” and questioning his conduct.

BJP MP Bansuri Swaraj said Rahul Gandhi’s language was inconsistent with the dignity expected from the Leader of Opposition.

BJP leader Shehzad Poonawalla also criticised the Congress leader, saying that while disagreement with Prime Minister Modi was legitimate, bringing a foreign woman leader into what he described as a crude joke was neither appropriate nor statesmanlike.

The MEA’s statement, meanwhile, focused on India’s bilateral relationship with Italy and reiterated that mutual respect and understanding remain important to maintaining ties between the two countries.

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Assam BJP leader Bikash Dhar found dead, 5 arrested for murder

BJP leader Bikash Dhar, 52, was found dead in an abandoned house in Assam’s Sribhumi district after being reported missing on August 12. Police have arrested five people in connection with the alleged murder.

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A 52-year-old BJP leader who had been missing for two days was found dead in Assam’s Sribhumi district on Friday, with police alleging that he was murdered.

Bikash Dhar, a resident of Chagalmowa village under Bazaricherra police station, was found dead inside an abandoned house in the Yogicherra area near the Tripura border on Friday morning.

Dhar’s family had filed a missing complaint on August 12 after he left home following a phone call.

According to his son Madan Dhar, Bikash left around 1 pm after saying that he had to attend an emergency meeting. When he did not return and his phone was switched off, the family began searching for him and later approached the police.

Five arrested in murder case

Sribhumi Superintendent of Police Leena Doley said an investigation was launched after the missing complaint was received. The probe was conducted under the supervision of the Additional Superintendent of Police (Crime).

Police said five people have been arrested in connection with the alleged murder. They were identified as Abdul Salam, Sifat Ali, Abdul Ahad, Saiful Ali and Badrul Haque.

According to the police, interrogation of Abdul Salam revealed that the accused had an enmity with Dhar. Police alleged that the group killed him and dumped his body near a water body.

Another person, identified as Sunam Miya, was named during the investigation and reportedly fled to Tripura on the night of the incident.

Police find injury and cut marks on body

Police said injury and cut marks were found on Dhar’s body, and a murder case has been registered.

During the recovery of the alleged weapon, police said accused Badrul Haque attempted to escape from custody. A police constable was injured during the incident.

Police said they fired at Haque’s leg to prevent him from escaping, resulting in a bullet wound.

The investigation into the circumstances surrounding Dhar’s death and the alleged involvement of the accused is underway.

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Jharkhand CID raids multiple locations in JPSC exam irregularities case 

Jharkhand CID conducted raids across several districts to arrest seven accused in a case involving alleged irregularities in JPSC competitive examinations.

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The Jharkhand Crime Investigation Department (CID) has conducted raids at several locations across the state as part of its investigation into alleged irregularities in competitive examinations conducted by the Jharkhand Public Service Commission (JPSC).

According to a CID press release, the searches were carried out to arrest seven accused named in Case No. 16/2026 and execute warrants issued against them.

The accused have been identified as Aditya Pandey, Pawan Kumar Singh, Ravishankar Kumar, Santosh Kumar Singh, Sanand Prakash, Lalu Kumar Yadav and Saurabh Kumar Pandey.

The CID conducted searches in several districts as part of efforts to apprehend the accused. The agency said its investigation into the case is continuing.

CID examining evidence in exam irregularities case

The case relates to alleged irregularities in various competitive examinations conducted by the JPSC.

As part of the investigation, the CID has begun matching OMR carbon copies obtained during the probe and examining other evidence collected in the case.

The agency said further action would be taken according to law on the basis of the evidence gathered. It added that legally permissible action against those found involved in the case is underway.

ABVP protests over JPSC, JSSC exams

The CID raids come amid protests over alleged irregularities and paper leaks in examinations conducted by the JPSC and Jharkhand Staff Selection Commission (JSSC).

On August 13, the Akhil Bharatiya Vidyarthi Parishad (ABVP) held protests in several cities, demanding a Central Bureau of Investigation (CBI) probe and strict action against those responsible.

In New Delhi, students and ABVP workers protested outside Jharkhand Bhawan, calling on the Jharkhand government to take steps to restore confidence in the examination system.

According to the ABVP, similar protests were held in Lucknow, Kolkata, Guwahati, Agartala, Jaipur, Hyderabad, Ahmedabad, Surat, Gorakhpur, Jodhpur, Kota, Raipur, Bhubaneswar, Varanasi and Prayagraj, as well as at university campuses.

The student organisation has sought an impartial CBI investigation into alleged irregularities in JPSC and JSSC examinations. It has also demanded cancellation of the JSSC CGL examination, citing concerns over its integrity, along with fresh examinations where irregularities have been reported.

Meanwhile, JPSC-JSSC aspirants continue to protest at Jaipal Singh Munda Stadium in Ranchi. The ABVP has also alleged that students protesting peacefully on August 10 and 11 faced lathi-charge, water cannons and arrests.

Jharkhand CID has conducted raids at multiple locations in connection with alleged irregularities in JPSC competitive examinations and efforts to arrest seven accused named in Case No. 16/2026.

The action comes amid continuing student protests demanding a CBI probe into alleged JPSC-JSSC exam irregularities.

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