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Tea industry urges DGFT to regulate tea imports under AUS to safeguard India-origin tea in markets

Guwahati, August 7: Raising concern over lack of proper monitoring of duty-free tea imports under Advanced Authorisation Scheme (AUS) and SEZ provisions , the Tea Association  of India(TAI) has urged the Director General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India to review and regulate such tea imports for safeguarding the interests of Indian tea producers, protecting the authenticity of Indian-origin teas, and ensuring regulatory integrity in both domestic and international markets.

In communique issued by the TAI President Sandeep Singhania, it has been mentioned that Indian Tea Industry has been witnessing a steady growth in the quantum of tea imported to India as cited here:

 

Table: 1- Imports of Tea into India

Year QTY (M. Kgs) CIF Value Unit price
2019 15.85 238.81 150.67
2020 23.79 409.34 172.06
2021 26.51 390.15 147.17
2022 29.84 434.57 145.63
2023 23.65 363.07 153.32

Source: Tea Board of India

Moreover the actual export of Tea of Kenya to India in 2024 (as published by Tea Board Kenya) is huge which is 17.13 M.Kgs vis-à-vis 5.26 M.Kgs of tea in 2023 which is 226% ahead of last year and in 2025 Kenya’s exports  to India till March is 3.9 M.Kgs which is 117% higher than 2024 for the corresponding period.

The TAI has stated that in order to establish an equilibrium with regard to Supply and Demand situation , Tea Board of India issued the direction to curtail production w.e.f. November 30, 2024.  The Industry also passed through adverse weather conditions till the month of August, leading to a drop in production by about 110 m.kgs. in the year 2024. Despite the resulting drop in production as stated above, it was noted that post September 2024 a surge in import led to poor market sentiments leading to a drop in prices by an average of Rs.60, thus adversely affecting  the tea market sentiments , neutralizing the entire effort made by the Tea Board and industry to bring an equilibrium between demand and supply for the stability of the prices in tea market

 

“Therefore, there is enough ground to infer, that a co-relation exists in between the increase of the quantum of imported tea to India and decline in prices.

“There is also an apprehension that on one hand exporters are importing cheap teas duty-free, blending them with Indian teas, and exporting them as Indian-origin, misrepresenting the product and damaging the credibility of Indian tea exports and on the other hand a large share of duty-free imported teas is entering the domestic market, evading the 100% import duty and undercutting genuine producers with indistinguishable, cheaper blends.

“In fact, there’s no clear system to track how much was re-exported and how much ended up in the local market.

“ Apparently, that there could be a misuse of Advance Authorization Scheme and SEZ duty-free imports in distorting the domestic tea market and harming the global reputation of Indian teas,” the TAI has stated and  made the following representation through  its letter dated: 10.6.2025 to the DGFT :

  • Disallow duty-free import of tea under Advance Authorization and SEZ provisions.
    Instead, allow imports only upon full duty payment, with duty refunds processed post-verifiable export, thereby creating a natural deterrent to misuse.
  • Implement a robust SOP similar to Sri Lanka’s model, to ensure that:
    • All tea imports for re-export are traceable and auditable;
    • Quality standards as per FSSAI norms are strictly enforced;
    • Domestic diversion of imported tea is prevented.

 

Australian Army Chief’s visit to India from Aug 10 to focus on Defence ties, Indo-Pacific

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New Delhi, Aug 7: In a significant development for Indo-Pacific military cooperation, Lieutenant General Simon Stuart, Chief of the Australian Army, will undertake a strategic visit to India from August 10 to 14.

He is scheduled to hold high-level discussions with Indian Army Chief General Upendra Dwivedi and senior Ministry of Defence officials. The visit underscores the growing strength of the India–Australia Comprehensive Strategic Partnership, particularly in the Defence domain.

It comes at a time when both nations are seeking to enhance regional stability and maintain a rules-based international order in the Indo-Pacific. Institutionalised mechanisms such as the 2+2 Ministerial Dialogue, Defence Policy Talks, and Staff-Level meetings have consistently propelled forward military ties.

The Indian and Australian Armies have expanded their cooperation in joint exercises, logistics, and interoperability, with Exercise AUSTRAHIND — initiated in 2016 — serving as a cornerstone of bilateral military training.

Focussed on counter-terrorism, close-quarter battle, and joint tactical operations, it has seen active participation from the Indian Army, alongside Australia’s 1st Brigade. Its next edition will be held in Australia in November 2025. Additionally, India has participated in Exercise Talisman Sabre and the Indo-Pacific Endeavour (IPE-22), which included focussed engagements on counter-terrorism, Humanitarian Assistance and Disaster Relief (HADR), and jungle warfare. Training and academic exchanges have been equally robust.

Indian officers attend key Australian courses, while their Australian counterparts are trained at India’s premier Defence institutions like the NDC and DSSC. Initiatives like the Young Officers Exchange Programme and Instructor Exchange at the CIJW School, Vairengte, further deepen this institutional bond.

Staff Talks, initiated in 2010 and now held annually, provide a platform for strategic dialogue, while Defence industry collaboration — especially between India’s Army Design Bureau and Australia’s Digger Works — is poised to develop battlefield-ready, cost-effective systems.

Lt Gen Stuart’s visit not only marks a step forward in operational synergy but also highlights India’s growing stature as a key Indo-Pacific Defence partner. As both nations prepare for deeper cooperation, the visit is expected to solidify mutual trust and drive the next phase of Army-to-Army engagement.

IANS

Cong chief Kharge blames govt over increased tariffs; says US fails to understand steel frame India is made of

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New Delhi, Aug 7:  Congress President Mallikarjun Kharge on Thursday launched a scathing attack on the Prime Minister Narendra Modi-led government over the US administration’s decision to double tariffs on Indian goods, calling it a “foreign policy disaster” that cannot be blamed on the past 70 years of the Congress’ rule.

US President Donald Trump had already imposed a 25 per cent tariff on Indian goods going to the US. However, after Trump’s announcement on Wednesday, the tariff against India has now been increased to 50 per cent.

Taking to social media platform ‘X’, Kharge said, “India’s national interest is supreme. Any nation that arbitrarily penalises India for our time-tested policy of strategic autonomy — rooted in the ideology of non-alignment — fails to understand the steel frame India is made of. From the threats of the 7th Fleet to sanctions after Nuclear tests, we have always dealt with the US with dignity and self-respect.”

He further criticised PM Modi’s silence in the face of escalating US rhetoric. “Trump’s 50 per cent tariffs come at a time when our diplomacy is disastrously dithering. @narendramodi ji, you kept mum when Trump claimed to have brokered a ceasefire — something he has publicly declared over 30 times.”

Kharge also recalled Trump’s remarks at the BRICS summit, held on November 30, 2024, where the US President allegedly threatened a 100 per cent tariff on BRICS nations and declared the group “dead” while PM Modi, as Kharge pointed out, “sat there smirking.”

Highlighting the economic impact, Kharge said, “India’s exports to the US amount to Rs 7.51 lakh crore (2024). A 50 per cent blanket tariff translates to a potential economic burden of Rs 3.75 lakh crore. MSMEs, agriculture, dairy, engineering goods, electronics, gems and jewellery, pharmaceuticals, petroleum products, and cotton garments will be hit the hardest.”

Kharge further criticised the government’s inaction: “Trump has been hinting at ‘reciprocal tariffs’ for months. Yet, the Union Budget made no provisions to cushion the blow. Your ministers have talked endlessly about negotiating a trade deal, some even camped in Washington — and still failed to secure anything.”

“You’ve had more than six months. And now that Trump is intimidating and coercing us, you remain silent. This is a foreign policy disaster — and you can’t even blame it on Congress this time,” Kharge added.

Meanwhile, the Indian government has strongly objected to the latest tariff hike, calling it “unfair, unjustified, and unreasonable.” India maintains that its oil imports — including those from Russia — are guided by market needs and are essential for the energy security of 1.4 billion people. The controversy intensified after Trump accused India of indirectly aiding Russia’s war in Ukraine by profiting from cheap Russian oil. In a post on Truth Social, Trump alleged, “India is not only buying massive amounts of Russian oil, but they are also then, for much of the oil purchased, selling it on the open market for big profits. They don’t care how many people in Ukraine are being killed by the Russian war machine.”

India, however, has rejected these accusations, insisting that its energy trade is based on sovereign policy and market dynamics. The decision to increase tariffs comes at a time when Trump’s special envoy Steve Witkoff was seen meeting Russian President Vladimir Putin in Moscow, raising eyebrows about Washington’s own diplomatic motives.

On Tuesday, Trump had threatened additional tariffs in India within 24 hours. Although the deadline passed, the executive order was issued just hours later, escalating tensions between the two nations.

IANS

From food security focus must shift towards nutritional security: PM Modi

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New Delhi, Aug 7:  From the current food security, scientists must now shift focus towards building nutritional security, said Prime Minister Narendra Modi on Thursday. He was speaking at the MS Swaminathan Centenary International Conference at ICAR PUSA to celebrate the birth anniversary of Dr. M.S. Swaminathan, the pioneer of India’s Green Revolution.

Drawing inspiration from Dr. M. S. Swaminathan, the Prime Minister stated that India’s scientists now have another opportunity to create history. “Building on the legacy of food security, the next frontier for our agricultural scientists is ensuring nutritional security for all,” PM Modi said.

“The previous generation of scientists ensured food security, stressing that the current focus must shift towards nutritional security,” he added. The Prime Minister also called for “the large-scale promotion of bio-fortified and nutrition-rich crops to improve public health”.

He also advocated for reducing the use of chemicals in agriculture, and urged for greater promotion of natural farming, stating that more urgency and proactive efforts are required in this direction. “21st century India is fully committed to becoming a developed nation and this goal will be achieved through the contribution of every section of society and every profession,” emphasised PM Modi.

Further, sharing the forevision of Dr Swaminathan, PM Modi noted that the eminent scientist worked on millets at a time when they were largely overlooked. “Dr. M. S. Swaminathan believed the solutions to climate change and nutritional challenges lie in the very crops that have been forgotten,” said the Prime Minister, while also highlighting Professor Swaminathan’s focus on drought tolerance and salt tolerance in agriculture.

PM Modi recalled that years ago, Professor Swaminathan had suggested transferring the genetic qualities of mangroves into rice, which would help make crops more climate-resilient.

“Today, as climate adaptation becomes a global priority, it is evident how far-sighted Professor Swaminathan’s thinking truly was,” the PM said. PM also Modi underlined the sanctity of food, asserting that food is life itself, and must never be disrespected or neglected.

Warning that “any crisis of food inevitably leads to a crisis of life, and when the lives of millions are endangered, global unrest becomes inevitable,” the Prime Minister said, while underscoring the importance of the M. S. Swaminathan Award for Food and Peace in today’s world.

The Prime Minister stated that this international award will be conferred upon individuals from developing countries who have made significant contributions in the field of food security.

IANS

National Herald case: Delhi court seeks clarifications from ED, decision likely tomorrow

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New Delhi, Aug 7: A Delhi court on Thursday sought certain clarifications from the Enforcement Directorate (ED) in the National Herald money laundering case involving Congress Parliamentary Party Chairperson Sonia Gandhi, Leader of the Opposition in the Lok Sabha Rahul Gandhi, and others, as proposed accused.

The Rouse Avenue Court, which examined the case diary, is likely to deliver its decision on Friday on taking cognisance of the prosecution complaint filed by the ED under the Prevention of Money Laundering Act (PMLA). Earlier, Special Judge (PC Act) Vishal Gogne, who was slated to deliver the verdict on July 29, deferred the pronouncement till the second week of August.

The Rouse Avenue Court had reserved its order on July 14 after hearing detailed arguments from the federal anti-money laundering agency as well as the proposed accused, including the Gandhis. During the hearing, Additional Solicitor General (ASG) S.V. Raju, representing the ED, had claimed that Young Indian Ltd — in which Sonia and Rahul Gandhi are majority stakeholders – was used for usurping around Rs 2,000 crore assets of the National Herald by paying a nominal price of Rs 50 lakh.

ASG Raju argued that ‘Young Indian’ exists just in name, and all the other accused were puppets of the Gandhi family. As per the ED, a conspiracy was hatched to form Young Indian to acquire control over the vast assets of the now-defunct newspaper, aimed at benefiting the top Congress leadership personally.

The Central agency said that several senior Congress leaders were involved in “fake transactions” made to Associated Journals Limited (AJL), the original publisher of the National Herald. ASG Raju told the court that individuals were making fraudulent advance rent payments over several years at the direction of senior Congress functionaries with fabricated rent receipts.

The ED’s prosecution complaint claims that through this alleged malicious takeover, the Congress leadership misappropriated properties belonging to AJL and converted public trusts into personal assets. In contrast, senior advocate Abhishek Manu Singhvi, representing Sonia Gandhi, had described the money laundering allegations as “really strange” and “unprecedented”, claiming that no tangible assets were involved.

Further, LoP Rahul Gandhi claimed that the All India Congress Committee’s attempts to revive the pre-Independence era newspaper were misconstrued as a bid to sell its assets. Highlighting the non-profit objectives of the company, senior advocate R.S. Cheema, representing LoP Rahul Gandhi, said National Herald was never a commercial institution and the AICC just wanted to bring the newspaper back on the rails.

The controversy surrounding the National Herald’s assets first surfaced in 2012 when BJP leader Subramanian Swamy filed a complaint in a trial court, accusing Congress leaders of cheating and breach of trust in the acquisition of AJL.

IANS

If US goes ahead with this, India should also impose 50 pc: Tharoor on Trump’s tariff threat

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New Delhi, Aug 7: Congress MP Shashi Tharoor on Thursday strongly advocated for a reciprocal tariff regime in response to US President Donald Trump’s recent threat of imposing steep import duties on Indian goods, suggesting that New Delhi should consider a 50 per cent tariff on American imports if diplomatic negotiations with Washington fail to yield results.

Trump was singling out India, even though countries like China and Turkey continue to import oil from Russia. India officially described the move as “extremely unfortunate”, saying it was being penalised for actions that “several other countries are also taking in their own national interest.”

Addressing reporters, Tharoor said, “It will definitely have an impact because we have a $90 billion trade with them, and if everything becomes 50 per cent more expensive, buyers will also think, why should they buy Indian products? Other countries like Vietnam, Indonesia, Pakistan, Bangladesh, and China — if they are less expensive than us — then naturally, India’s products will not sell in the American market.”

He criticised the additional 25 per cent tariff announced by Trump, calling it “unfair” and linked to India’s continued oil and gas trade with Russia. “But China is buying almost double of what we are buying from Russia, and they have been given 90 days, while we’ve been given only 3 weeks.

This suggests there is some other message coming from Washington that our government needs to recognise and respond to,” he said. Insisting on reciprocal treatment, Tharoor said, “If they do this, we should also impose a 50 per cent tariff on American exports. No one from another country can sit there and threaten us. This is completely unacceptable. I believe every Indian would agree that we stand united on this issue.”

The Congress MP also mentioned that India only charges 17 per cent tariff on most US imports, and it is the American President who is fighting the 17 per cent tariff amount with a steep 50 per cent.

“Reciprocal is their (US’) own word. They are saying it’s reciprocal. We’re not imposing tariffs on them. Trump is complaining, but our average tariff on American goods is only 17 per cent. If they are imposing 50 per cent in return, then why should we stick to 17 per cent? We too can raise it to 50 per cent,” he said.

However, Tharoor stressed that he does not favour unnecessary conflict. “India and the US have enjoyed a strong relationship. We’ve spoken of a strategic partnership. We are part of the Quad. We’re collaborating on AI, Defence, and several other fronts. I don’t want to see this relationship damaged over trade alone. But this provocation has come from them. If the US doesn’t value our relationship, then we shouldn’t overvalue theirs either,” he added. IANS

ECI issues notification for Vice-Presidential election 2025; nominations begin today

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New Delhi, Aug 7: The Election Commission of India (ECI) on Thursday issued the official notification for the conduct of the Vice-Presidential Election, 2025. Acting under the provisions of the Presidential and Vice-Presidential Elections Act, 1952, the Commission announced the timeline for nominations, scrutiny, withdrawal of candidature, and polling — if required.

The notification, dated August 7, has been published in the ‘Gazette of India’ and will also appear in ‘State Gazettes’ in their respective official languages. According to the Commission, the Returning Officer (RO) for the election is the Secretary General of the Rajya Sabha, who has simultaneously issued a Public Notice in accordance with Rule 3 of the 1974 Election Rules.

As per the schedule, nomination papers can be filed in Room No. RS-28, Parliament House, New Delhi, between 11 A.M. and 3 P.M. on any working day, excluding public holidays, until August 21, 2025.

A security deposit of Rs 15,000 is mandatory and must be submitted either in cash to the RO or deposited with the Reserve Bank of India or a Government Treasury. Nomination papers must be accompanied by a certified copy of the candidate’s entry in the electoral roll of their parliamentary constituency and the receipt of the security deposit.

The forms are available at the RO’s office during the nomination window. Scrutiny of the nomination papers will take place on August 22 at 11 A.M. in Room No. F-100 (Sangoshthi-2), Parliament House. If the election is contested, polling will be held on September 9, 2025, between 10 A.M. and 5 P.M. in Room No. F-101 (Vasudha), Parliament House. The notification marks the formal beginning of the process to elect India’s next Vice President, a constitutional post that plays a crucial role in the functioning of the Rajya Sabha.

IANS

New US tariffs no big problem for India which has huge domestic market: Mark Mobius

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New Delhi, Aug 7: Billionaire investor Mark Mobius said on Thursday that upcoming 50 per cent tariffs on India, imposed by US President Donald Trump, will have less impact on the country as it has a massive domestic market to cushion itself, and does not fully depend on exports like China.

Speaking to IANS, the global investor who runs the Mobius EM Opportunities Fund for emerging markets (EMs), said India is in a good position to navigate these tariffs than other nations. “India has a huge domestic market and does not depend on exports like China. Also, Indian software exports are great and escape tariffs,” he noted.

“Conclusion: no big problem for India,” Mobius told IANS. Shipments worth more than $30 billion involving pharmaceuticals and certain electronic items such as smartphones, semiconductors, and energy are so far secure from higher duties as these are still under an exemption list. Trump has not yet included these key industries in the new tariffs that are slated to come into effect in the next 21 days.

Moreover, India exported drugs and pharmaceuticals as well as electronics products (mostly smartphones) to the tune of $10.5 billion and $14.6 billion in FY25, constituting 29 per cent of its overall outbound shipments to the US. Petroleum exports, worth $4.09 billion in FY25, are also currently secure from Trump’s fresh tariffs thanks to energy being on the exemption list as well.

Indian exports to the US stood at $86.51 billion in FY25. According to Mobius, the kind of GDP growth India is witnessing will help it on the road to become the third-largest economy in the world.

“The country is witnessing 6-7 per cent growth despite global uncertainties which shows the resilience in its economy. It will help India continue to move up the ladder,” said Mobius. In just a few years, India has risen from being the world’s 11th-largest economy to the fourth largest. As of 2025, India trails behind the US, China and Germany in terms of total GDP.

IANS

Uttarakhand cloudburst: Over 50 people airlifted to safety, Army intensifies relief operations 

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Dehradun, Aug 7:  Two days after the cloudbursts-triggered flashfloods wreaked havoc in Uttarkashi region of Uttarakhand, the relief operations are in full swing, and people are being airlifted to higher locations while those having sustained injuries are being attended to swiftly.

Till today morning, more than 50 individuals were airlifted to safety and evacuated from the Dharali, the flashfloods-hit zone to upper reaches in Matli by helicopter. From there, the people were being transported to their respective destinations.

The officials also released a list of 55 stranded individuals, along with their phone numbers, who were airlifted to safety on Thursday – two days after raging waters swallowed villages in Dharali.

During the day, many more are expected to be lifted out via helicopters. The rescue work is being spearheaded by teams of the Indian Army, ITBP, NDRF, SDRF in coordination with Uttarakhand police and the local administration.

Meanwhile, the Indian Army has also intensified its relief operations in the cloudburst-hit region of Dharali near Harsil. Over 225 troops, including specialised engineer and medical teams, are on the ground conducting rescue and relief tasks. Drones have also been deployed for aerial reconnaissance and locating stranded individuals in inaccessible areas.

With multiple road breaches reported at Bartwari, Linchigad, Gangrani and near Dharali, Chinook and Mi-17 helicopters are positioned at Dehradun for airlift operations, while an ad-hoc aviation base is being established at Matli Helipad.

Recco radar teams, search-and-rescue dogs, and five civil helicopters have been pressed into service to augment relief and rescue efforts. “Lt Gen Sengupta, Army Commander Central Command and GOC UB Area present at Dharali, and seamless coordination underway with HQ Central Air Command, every possible effort is being made to ensure the safe evacuation and care of all affected.

The Indian Army stands firm with the people of Uttarakhand in this hour of need,” it said in a statement this morning. Meanwhile, the Met Department has issued a Red Alert for multiple areas of the hilly state including Pauri Garhwal, Tehri, Uttarkashi, Dehradun, Champawat, Udham Singh Nagar, Bageshwar, and Nainital, till August 12. Schools and educational institutions have been shut as part of precautionary measure and people are advised to stay indoors.

IANS

6th round of India-US negotiations on Aug 25 important: Morgan Stanley

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New Delhi, Aug 7: The sixth round of India-US negotiations to reach an interim trade deal, currently slated for August 25, will be important as US President Donald Trump announced an additional 25 per cent tariffs on India, raising the total tariffs to 50 per cent effective from August 27, a Morgan Stanley report said on Thursday.

The report stated that it will “closely monitor export growth and domestic demand data for spillover impact, along with any incremental policy response”. In FY25, India’s total exports to the US stood at $86.5 billion (2.2 per cent of GDP).

The original 25 per cent tariff and the additional penalty are both applicable on 67 per cent of India’s exports to the US, which translates to $58 billion (1.5 per cent of GDP) (the remaining are sectors under section 232).

To assess the impact of tariffs on India’s GDP, we use inferences from the input-output table modelled by our global team. Assuming all goods exports are subject to a 50 per cent tariff rate, the direct impact on growth is likely to be 60bps while the indirect impact could be of a similar magnitude, over a period of 12 months.

A similar sensitivity analysis for the 67 per cent of non-exempted goods suggests that the direct impact could be 40bps while the indirect impact could be of a same magnitude, taking the total impact to 80bbps, said the report.

The sensitivity analysis refers to linear impact basis shock from external demand and does not take into account mitigating factors such as domestic policy response and or export market diversification.

“On the monetary policy front, we expect RBI to undertake further rate easing, with potentially two additional rate cuts (25bps each), over and above the 25bps rate cut pencilled in our base case. Moreover, the central government is likely to pause the fiscal consolidation and potentially allow capital spending to increase to support domestic demand,” the report mentioned.

“We will closely monitor geopolitical developments and high frequency growth data. On the trade side, the sixth round of negotiations between India and the US, currently slated for Aug 25, will be important to track. We will closely monitor export growth and domestic demand data for spillover impact, along with any incremental policy response,” it added.

IANS