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Stock Market

Small-Cap Selloff Deepens Amid Tariff Tensions and Market Volatility

The Indian equity market closed the week on a cautious note as persistent US tariff concerns and sustained foreign investor selling dragged indices lower. The BSE Small-cap index slipped nearly 2%, with more than 40 counters recording double-digit declines ranging from 10% to 24%.

Heavy losses were seen in PG Electroplast, Kitex Garments, Unichem Laboratories, Morepen Laboratories, Advait Energy Transitions, KR Rail Engineering, Faze Three, and Advanced Enzyme Technologies. The selloff marked the third straight week of weakness in broader markets, underlining the fragility of investor confidence.

Broader Indices Remain Under Pressure

For the week, the BSE Sensex dropped 742.12 points or 0.92% to settle at 79,857.79, while the Nifty50 fell 202.05 points or 0.82% to close at 24,363.30. Large-cap and mid-cap indices each shed about 1%, trailing their small-cap counterparts’ sharper declines.

Sectoral performance was mixed, with Nifty Pharma, Realty, FMCG, and Healthcare losing around 2% each. In contrast, PSU Bank, media, and metal stocks managed modest gains of 0.5% to 1.5%.

FII Selling Continues, DIIs Offer Support

Foreign Institutional Investors extended their selling streak into a sixth consecutive week, offloading equities worth ₹10,652.47 crore during the week. So far in August, FIIs have sold shares worth ₹14,018.87 crore.

On the other side, Domestic Institutional Investors remained steady buyers for the 16th straight week, purchasing equities worth ₹33,608.66 crore during the week and ₹36,795.52 crore so far this month. This consistent domestic inflow provided some cushion against steeper market losses.

Global Trade Tensions Cloud Outlook

Vinod Nair, Head of Research at Geojit Financial Services, noted that the market’s consolidation since July reflects the drag from trade-related challenges and underwhelming earnings. “Persistent FII selling, particularly in pharma stocks with significant US exposure, highlights the cautious sentiment. The rupee’s depreciation has also added to the pressure,” he said.

Nair added that optimism from the RBI’s reaffirmation of macroeconomic stability and easing inflation trends has softened the downside, but risks from global trade frictions and sustained foreign outflows remain elevated.

Winners Amid the Weakness

While the broader tone was negative, a handful of stocks bucked the trend. Sarda Energy and Minerals, Timex Group India, Sanghvi Movers, Zinka Logistics Solutions, Centum Electronics, KRBL, Baazar Style Retail, Godfrey Phillips India, and Entertainment Network India posted gains of 12% to 21%, reflecting selective buying in niche segments.

Looking Ahead

The market’s near-term direction will hinge on upcoming inflation data from India and the US, alongside any fresh developments in global trade relations. Analysts suggest investors focus on domestic consumption-driven sectors, which may be better equipped to ride out short-term volatility.

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Minister Jaykumar Rawal Pushes for High-Level Centre-State Meeting on Farmer Welfare and APMC Modernization

Jaykumar Rawal Urges National Push for Farmer Welfare and APMC Modernization

Maharashtra’s Minister for Marketing and Protocol, Jaykumar Rawal, has called for an urgent high-level meeting between Central and State Ministers to address pressing challenges in agricultural marketing, farmer income security, and the modernization of Agricultural Produce Market Committees (APMCs).

Speaking in New Delhi after a meeting with Union Minister for Agriculture and Farmers’ Welfare, Shivraj Singh Chouhan, Rawal outlined the need for a coordinated approach to strengthen agricultural infrastructure, ensure fair pricing for farmers, and boost post-harvest efficiency.

Challenges Facing Farmers

Rawal noted that production of crops such as onions, pulses, oranges, pomegranates, bananas, and flowers has surged in recent years. However, the absence of robust market systems, insufficient storage facilities, and outdated infrastructure has meant farmers often fail to secure fair prices for their produce.

He stressed that post-harvest losses remain a significant drain on farmers’ earnings, weakening both household incomes and the broader agricultural economy.

Proposals for Fair Remuneration

To bridge these gaps, Rawal suggested a range of measures including:

  • A Special Support Scheme to stabilize farmer incomes during price fluctuations.
  • Decentralized Scientific Storage Facilities to minimize spoilage and reduce transportation burdens.
  • Cold Chain Infrastructure to preserve perishable goods for longer market reach.
  • Digital Inventory Management for better monitoring of stock and distribution.
  • Efficient Logistics Systems to link farms to markets swiftly and cost-effectively.

He also emphasized the importance of a unified market information network to deliver real-time production and pricing data, enabling both farmers and policymakers to make informed decisions.

Modernizing APMCs

Highlighting the outdated infrastructure in many APMCs, Rawal proposed a Central Government-backed modernization scheme covering:

  • Covered auction platforms for weather-proof transactions.
  • Grading and weighing systems to ensure transparent pricing.
  • Cold storage and dry warehouses to extend shelf life.
  • Packaging centers and waste management facilities to add value and reduce loss.
  • Small agro-processing units on unused APMC land to diversify income streams.

He also recommended technical training, subsidies, and stronger digital integration, particularly with platforms like e-NAM, to make APMCs more accessible and efficient.

A Vision for Sustainable Agriculture

Rawal believes that convening a high-level Centre-State meeting would pave the way for a concrete action plan to protect farmers’ livelihoods, enhance agricultural efficiency, and position India as a global leader in sustainable farming.

According to him, investing in infrastructure, technology, and farmer-friendly policies will not only strengthen rural economies but also secure India’s standing in international agricultural markets.

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US Tariffs

The corridors of power in New Delhi are bracing for tense deliberations this Friday at 1 pm. Prime Minister Narendra Modi will convene a high-level Cabinet meeting to strategize India’s response to the steep 50% tariff recently announced by US President Donald Trump on Indian exports.

The decision, tied to India’s trade with Russia, has injected sudden strain into a relationship that had been enjoying a period of relative warmth. The move comes as Washington ramps up economic pressure on Moscow, using global trade levers to force a potential ceasefire in the Ukraine conflict.

Why the Tariff Hike Matters

This is not just another trade dispute. The US has effectively doubled duties on Indian imports in two waves — the first 25% earlier in the year, followed by an additional 25% this week. The second hike was explicitly linked to India’s continued oil purchases from Russia, making it part of Washington’s broader sanctions playbook.

While the new tariff won’t kick in until August 27, the signal is clear: nations trading with Moscow could face economic retaliation. India, as Russia’s second-largest oil customer, finds itself directly in the crosshairs.

Trump’s Position — No Talks Until Resolution

Speaking to reporters, President Trump was unequivocal: there will be no fresh trade negotiations with India “until we get it resolved.” The ambiguity lies in what needs resolving — is it India’s energy ties with Russia, the larger Ukraine conflict, or the lingering issues from the first round of tariffs?

Either way, Washington’s stance leaves New Delhi with limited diplomatic room in the short term. The timeline is even tighter as Trump’s initial 50-day ceasefire deadline for Moscow was cut to 12 days, ending today.

India’s Economic Stakes

A 50% tariff could severely impact key export sectors such as textiles, engineering goods, and certain agricultural products. Beyond the immediate economic hit, the move raises questions about the stability of trade partnerships in an increasingly politicized global market.

For India, the challenge will be balancing its strategic autonomy in foreign policy with the economic realities of global trade dependence.

What Happens Next

Friday’s Cabinet meeting is expected to explore multiple responses, including:

  • Diplomatic engagement to seek partial rollbacks or exemptions.
  • Diversifying export markets to reduce reliance on the US.
  • Accelerating domestic trade reforms to offset losses.

The outcome will signal whether India intends to take a conciliatory path or prepare for a prolonged trade standoff.

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National Handloom Day

Honouring the Backbone of Indian Textiles

At a prestigious event held in New Delhi, Union Textiles Minister Giriraj Singh conferred the Sant Kabir Handloom Awards and National Handloom Awards 2025 to weavers, designers, entrepreneurs, marketers, and producer companies who have demonstrated extraordinary commitment to India’s handloom heritage.

The ceremony coincided with the 11th National Handloom Day, a symbolic reminder of the Swadeshi Movement and the central role handloom continues to play in India’s cultural and economic landscape.

Handlooms: A Global Symbol of Sustainability

In his address, Giriraj Singh highlighted how Indian handlooms are becoming an answer to the world’s rising demand for sustainable textile products. He emphasized that this isn’t just about preserving tradition but aligning it with modern, eco-conscious values.

The Minister announced fresh initiatives to protect indigenous weaver designs and ensure their rightful recognition and ownership in the global marketplace.

“Our handloom sector is not just heritage; it’s the future of ethical fashion,” Singh remarked.

Empowering Weavers Through Digital Integration

Minister of State for Textiles Pabitra Margherita echoed this vision, noting how e-commerce platforms are transforming market access for weavers. With zero commission selling models, artisans are now able to connect directly with consumers, boosting both income and autonomy.

He also spoke about the Geographical Indication (GI) tagging of products and the Handloom Mark initiative, which ensure authenticity and promote the “Handloom India” brand internationally.

“Digital tools are not replacing tradition; they’re amplifying it,” Margherita said.

Recognising Excellence Across the Sector

The awarded individuals and organisations this year span a wide spectrum—from grassroots weavers preserving age-old patterns to young designers blending heritage with modern aesthetics, and start-ups leveraging technology for ethical fashion.

Their stories not only reaffirm the resilience of handloom communities but also demonstrate how innovation and tradition can coexist powerfully.

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Parliament Monsoon Session

Persistent Deadlock Grips Parliament

The Monsoon Session of Parliament witnessed another tumultuous day on August 7, 2025, as the opposition ramped up its protest over the Special Intensive Revision (SIR) of electoral rolls in Bihar. Day 13 of the session was characterized by repeated adjournments, uproarious scenes, and a rising sense of impasse between the treasury and opposition benches.

INDIA bloc MPs launched a coordinated protest, accusing the ruling government of manipulating the revision process to disenfranchise large sections of marginalized voters in Bihar. Their demand for an immediate, detailed debate went unmet—triggering an unrelenting standoff inside both Houses.

Lok Sabha in Gridlock

The Lok Sabha was adjourned almost immediately after it convened at 11 AM. Sloganeering and vocal demands for a discussion on the SIR exercise drowned out all attempts to proceed with business. Although the House reconvened at noon, disorder persisted, leading to another abrupt adjournment.

When proceedings resumed briefly later in the day, the government attempted to push through the Manipur Appropriation Bill, 2025, which was passed by voice vote. Finance Minister Nirmala Sitharaman criticized the opposition’s obstruction, pointing out that the funds were crucial for a state currently under President’s Rule.

Rajya Sabha Proceeds Amid Protests

The Rajya Sabha mirrored the turbulence of the lower house. Deputy Chairman Harivansh struggled to maintain order as opposition MPs raised slogans and disrupted scheduled debates. Despite the din, the Coastal Shipping Bill, 2025 was passed, a rare legislative moment in an otherwise paralyzed session.

Opposition Stages Symbolic Protest

Beyond the chaos within the chambers, the opposition staged a visible and pointed protest on Parliament premises. Standing at the iconic Makar Dwar, leaders including Mallikarjun Kharge, Sonia Gandhi, Dharmendra Yadav, and newcomer MP Sagarika Ghose joined hands in denouncing what they termed “systematic voter suppression.”

Placards, silence, and unified presence sent a clear message to the government — that the opposition would not relent unless the SIR issue was addressed in Parliament.

A Session at Crossroads

The continued friction has turned this Monsoon Session into a political standoff. While the government pushes ahead with legislative priorities, the opposition remains locked in on accountability around the SIR process — a confrontation rooted in fundamental concerns about electoral fairness and democratic inclusion.

Unless dialogue replaces deadlock, both legislative productivity and public trust in Parliament could erode further in the remaining days of the session.

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Uttarkashi Cloudburst

Flash Floods Strike Without Warning

In a devastating turn of events, Uttarakhand’s Uttarkashi district was rocked by a sudden cloudburst near Dharali village on Monday afternoon, unleashing a torrent of muddy water that flattened buildings, swallowed roads, and left dozens feared trapped beneath debris.

The cloudburst struck around 1:30 PM IST, sending the Kheerganga river into a violent swell. Within moments, a surge of water tore through Dharali—a once-bustling tourist hub now buried in silt and rubble.

Eyewitness Accounts: “We Had No Time to Run”

Locals from nearby villages, who captured chilling videos of the event, described a nightmare scenario. As the muddy floodwater thundered down, people could be heard screaming and blowing whistles, warning others to flee. But the speed of the flash flood left little room for escape.

Entire structures were swept away in seconds. Eyewitnesses believe many people, including tourists and hospitality workers, could be trapped under collapsed buildings.

Sacred Kalpkedar Temple Among Damaged Sites

Among the many structures engulfed in mud and debris is the ancient Kalpkedar temple. Locals fear the spiritual landmark has sustained significant damage, though officials have yet to confirm the extent of the destruction.

Nearby, the floodwaters have also swallowed roads and submerged portions of a government helipad, complicating rescue logistics.

An Artificial Lake Threatens Further Damage

Perhaps even more concerning is the formation of an artificial lake caused by silt and debris blocking the Bhagirathi river—one of the key tributaries of the Ganges. Authorities worry that if the accumulating water is not drained soon, it could burst and flood low-lying towns and villages downstream.

Army units have arrived on-site and are urging residents to stay far from the water’s edge.

Rescue Efforts Face Challenges

Despite the quick deployment of personnel from the Indian Army and Indo-Tibetan Border Police (ITBP), continued rainfall and poor connectivity in the region are slowing rescue efforts. The injured are being transported to nearby army facilities for urgent treatment.

Uttarkashi District Magistrate Prashant Arya confirmed the gravity of the situation, stating that dense tourism infrastructure in the area—hotels, eateries, and camps—makes the rescue operation even more complex.

Government Responds, PM Offers Condolences

Prime Minister Narendra Modi addressed the nation via social media, offering prayers for the victims and assuring full-scale rescue and relief operations. “Relief and rescue teams are engaged in every possible effort. No stone is being left unturned in providing assistance to the people,” his post read.

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India's Russian Oil Imports

Washington Once Backed Indian Oil Buys from Russia

At the height of the Ukraine war’s impact on global energy markets, the United States quietly encouraged India to keep buying discounted Russian oil—within a price cap—to stabilize soaring prices. This policy wasn’t just tolerated; it was a deliberate part of Washington’s design, as admitted by then-US Ambassador to India, Eric Garcetti.

Speaking at a 2024 conference, Garcetti confirmed that India’s actions aligned perfectly with US goals: “They bought Russian oil because we wanted somebody to buy Russian oil at a price cap… they fulfilled that.” His remarks, now resurfacing, expose a deeper contradiction in US foreign policy—especially in light of recent threats from US President Donald Trump.

A Pattern of Silent Approval

Garcetti’s remarks weren’t an isolated admission. In 2022, Treasury Secretary Janet Yellen said the US had “no problem” with India purchasing Russian oil—even above the G7 price cap—provided India didn’t use Western shipping or insurance services. Yellen’s logic was simple: India’s demand helped suppress global oil prices while limiting Russia’s profits.

In 2024, Assistant Secretary Geoffrey Pyatt echoed the same sentiment, saying India’s oil strategy served dual purposes: affordable domestic fuel and international price stability.

India’s Strategy: Energy Security First

As Western nations turned away from Russian crude, India became its top customer. Between January and June 2025, Indian refiners imported nearly 1.75 million barrels per day—making up over 35% of the country’s total oil imports.

This pivot not only shielded India from inflation and high fuel costs but also reshaped global energy flows. The move saved India billions, even as it gave Moscow a vital export market cut off from Europe.

Trump’s Tariff Threats: A Shift in Tone

Fast forward to 2025, and President Donald Trump’s stance is drastically different. Citing India’s continued oil purchases from Russia, Trump recently threatened steep tariff hikes on Indian exports. He claimed India was profiting off Russian oil while ignoring the Ukraine conflict and vowed to “substantially raise” tariffs.

Trump’s ultimatum followed his call for Moscow to advance peace talks or face renewed sanctions. The timing signals a strategic pressure campaign—less about Ukraine and more about forcing India to pivot towards American energy.

India Pushes Back

India’s Ministry of External Affairs didn’t hold back. Calling Trump’s comments “unjustified and unreasonable,” New Delhi pledged to defend its economic interests.

India argued that its Russian oil trade was born of necessity—traditional suppliers were rerouted to Europe after the war began. Far from ignoring the war, India maintained its stance as a neutral actor safeguarding national interest amid shifting global power equations.

What Trump Really Wants: Energy Dominance

Behind Trump’s tough talk lies a clear motive—boosting US energy exports. Since he took office in January, American oil shipments to India have jumped over 50%. The Energy Information Administration confirms US crude now makes up 8% of India’s oil basket.

Trump’s administration has aggressively supported the fossil fuel sector, offering $18 billion in new incentives. India is seen not just as a trade partner, but a key energy buyer. The tariff threats are less about punishing behavior and more about securing market share.

An Unfolding Energy Chess Game

The contradictions in the US stance—first encouraging India’s Russian oil trade, now punishing it—reflect the geopolitical chessboard beneath the headlines. For India, balancing affordability, energy security, and diplomatic neutrality remains key. For the US, it’s about reasserting control in an increasingly multipolar oil economy.

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parliament session

A Silent Start in the Rajya Sabha

Day 11 of the Monsoon Session of Parliament began on a somber note. As Rajya Sabha convened on Monday, August 4, 2025, it was immediately adjourned after members paid tribute to the late Shibu Soren, former Jharkhand Chief Minister and a towering figure in Indian politics. A minute’s silence was observed in his memory, after which proceedings were suspended for the day.

Lok Sabha: Protests Eclipse Parliamentary Business

Meanwhile, the Lok Sabha faced yet another day of disruption. The House was first adjourned until 2 p.m. due to loud protests from opposition MPs, who continued their demand for a dedicated debate on the ongoing Special Intensive Revision (SIR) of electoral rolls in Bihar.

When the session resumed briefly in the afternoon, the government attempted to introduce the National Sports Governance Bill, 2025—a significant piece of legislation expected to reform India’s sports administration. However, the Opposition’s protests intensified, and the session was ultimately adjourned for the day without any productive discussion.

Government’s Push, Opposition’s Standstill

The ruling alliance has made clear its intention to pass key legislative bills before the Monsoon Session concludes. Yet, the continued deadlock, driven by the INDIA bloc’s demands, has made progress nearly impossible.

The opposition’s letter to Lok Sabha Speaker Om Birla—requesting a formal debate on SIR in Bihar—remains unanswered by the government. The opposition insists that the SIR process may have wide-reaching implications on voter rights and electoral fairness, particularly in politically sensitive regions.

PM and HM Meet President Amid Tensions

Adding another layer of intrigue, Prime Minister Narendra Modi and Union Home Minister Amit Shah met President Droupadi Murmu separately on Sunday, August 3. While no official details were disclosed, the timing of the meetings raises questions, especially in the context of the ongoing unrest over the Bihar SIR issue.

A Session at Risk of Being Lost

Other than a brief two-day debate on the Pahalgam terror attack and Operation Sindoor earlier in the session, Parliament has been largely unproductive since July 21. With just a few days left in the Monsoon Session, lawmakers and citizens alike are questioning whether meaningful legislative action is still possible.

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parliament monsoon session

BJP-Led Monsoon Session Grinds to Halt Again

On Day 5 (July 25, 2025) of the Monsoon Session, both Houses of Parliament failed to conduct any business. Protests over the Special Intensive Revision (SIR) of electoral rolls in Bihar persisted, leading to complete adjournments in Lok Sabha and Rajya Sabha.

Opposition Escalates Protest: Tear Placards, Storm the Well

Members of the INDIA bloc, including senior Congress leaders Rahul Gandhi, Priyanka Gandhi, and Mallikarjun Kharge, staged symbolic demonstrations inside Parliament. They tore SIR placards and tossed them into the dustbin, chanting “Take back SIR”. The repeated disruptions forced both Houses to grind to a standstill.

Rule 267 Notices and Demands for Debate

In the Rajya Sabha, Congress MP Renuka Chowdhury invoked Rule 267, seeking suspension of regular business for urgent discussion on Bihar’s voter list revision. The Opposition raised concerns about voter disenfranchisement due to opaque guidelines and insufficient submission timelines.

Meanwhile, Kiren Rijiju, Parliamentary Affairs Minister, affirmed that both Operation Sindoor and the Pahalgam terror attack would be addressed in detail from July 28, following consensus reached in an all-party meeting.

Legislative Agenda Stalls Despite Bills List

Key legislation such as the Goa ST Representation Bill and the Merchant Shipping Bill, 2024 were listed for Lok Sabha consideration. However, no bill was taken up due to the persistent uproar.

Concurrently, a statutory resolution to extend President’s Rule in Manipur and the impeachment proceedings against Justice Yashwant Varma were also scheduled but remained unrealised.

Special Debate Show Scheduled for Monday

Disruptions may pause, but key issues remain—both Houses agreed to commence a 16-hour special debate on Operation Sindoor and the Pahalgam terror strike starting July 28. Final details will be confirmed by the Business Advisory Committees.

Crisis Mode: Tariffs, Governance, and Political Fallout

With Parliament tied up, important national decisions—such as the anticipated extension of President’s Rule in Manipur and ongoing tariff talks with the U.S.—hang in limbo. The entrenched logjam underscores deepening political polarization and the stakes ahead in upcoming legislative sessions.

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India and Maldives have entered a transformative phase in their bilateral relations as Prime Minister Narendra Modi visited Male and held in-depth discussions with Maldivian President Mohamed Muizzu on July 25, 2025. A key outcome of the visit is the extension of a substantial Line of Credit (LoC) worth ₹4,850 crore from India to Maldives, alongside the official announcement of negotiations for an India-Maldives Free Trade Agreement (IMFTA).

Strengthening Strategic Ties Through Economic Cooperation

In a major diplomatic step forward, both leaders highlighted their commitment to boosting trade, strengthening defence cooperation, and enhancing infrastructure development. Prime Minister Modi reiterated India’s firm support towards Maldives’ growth and security, stating that the new Line of Credit will not only support current infrastructure projects but also encourage new bilateral ventures.

Additionally, India has decided to ease Maldives’ annual debt servicing obligations under earlier GoI-funded credit lines, providing crucial financial breathing space to the island nation.

A New Chapter with the Free Trade Agreement

The announcement of IMFTA negotiations marks a significant evolution in India-Maldives economic engagement. President Muizzu emphasized the importance of this agreement in expanding market access, streamlining trade processes, and creating new business opportunities for both countries.

This move is expected to bring structural transformation to Maldives’ economy, while also cementing India’s role as a trusted regional partner. The proposed FTA will likely focus on sectors like tourism, fisheries, renewable energy, digital connectivity, and logistics.

Defence and Infrastructure – The Twin Pillars of Partnership

Beyond economic cooperation, the Modi-Muizzu meeting emphasized shared regional security interests. India reaffirmed its willingness to strengthen the Maldives’ defence capabilities. Several infrastructure projects funded by India are also poised to gain momentum, including port development, housing, and health infrastructure.

Modi’s visit signals a reset in the diplomatic tone between the two nations, which had recently experienced a dip in engagement. This renewed partnership is expected to contribute positively to the stability and prosperity of the Indian Ocean region.

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