Blog

US President Donald Trump’s decision to double tariffs on steel and aluminium imports is set to impact India’s metal exports worth USD 4.56 billion, a report by Global Trade Research Initiative (GTRI) has warned.

The revised tariffs, which will come into effect from June 4, 2025, are likely to hurt Indian producers and exporters by making their products more expensive in the U.S. market.

GTRI said “For India, the consequences are direct. In FY2025, India exported USD 4.56 billion worth of iron, steel, and aluminum products to the U.S.
According to the GTRI report, the United States has been a major destination for India’s metal exports. In FY2025, India exported USD 4.56 billion worth of iron, steel, and aluminium products to the U.S.

This included USD 587.5 million in iron and steel, USD 3.1 billion in articles of iron or steel, and USD 860 million in aluminium and related articles. These products now face sharply higher tariffs, making it difficult for Indian exporters to remain competitive.

Trump announced on May 30 that the U.S. will raise the existing 25 per cent tariffs on steel and aluminium to 50 per cent, citing national security concerns under Section 232 of the U.S. Trade Expansion Act of 1962. This law allows the U.S. president to impose trade restrictions if imports are considered a threat to national security. Trump had originally used this provision in 2018 to impose a 25 per cent tariff on steel and 10 per cent on aluminium. Earlier this year, in February 2025, aluminium tariffs were already increased to 25 per cent.

The GTRI report stated that the new tariffs are expected to push U.S. steel prices above USD 1,180 per tonne, increasing costs for key industries like automobiles, construction, and manufacturing.

India has already issued a notice to the World Trade Organization (WTO) in response to these tariffs and is likely to take further action.

The GTRI also raised concerns about the environmental aspect of this move. Steel and aluminium production are among the most carbon-intensive industries globally. While other major economies are investing in green steel and aluminium technologies, the U.S. decision lacks any climate conditions.

The GTRI pointed out that this shows the Trump administration is prioritizing economic nationalism over environmental responsibility, raising questions about America’s commitment to global climate goals and sustainable industry development.

Getty Images

Photo used for representation purpose only.
| Photo Credit: The Hindu

The Ministry of Finance has asked the Reserve Bank of India to ensure that the central bank’s draft regulations on gold loans do not adversely impact small gold loan borrowers, and has noted that the new rules would be suitable to be implemented only by January 1, 2026.

This comes days after Tamil Nadu Chief Minister M.K. Stalin wrote to Union Finance Minister Nirmala Sitharaman voicing his reservations about the RBI’s draft regulations, which the central bank had made public on April 9. The draft rules had also elicited significant consternation on social media, as well.

“Draft Directions on Lending Against Gold Collateral issued by the @RBI have been examined by @DFS_India [Department of Financial Services] under guidance of Union Minister for Finance and Corporate Affairs Smt. @nsitharaman,” the Ministry of Finance said in a post on X.

“@DFS_India has given suggestions to the @RBI to ensure that the requirements of the small gold loan borrowers are not adversely affected,” the post added. “@DFS_India has also stated that such guidelines will need time to implement at the field level and hence may be suitable for implementation from 1st January 2026 only.”

The DFS has further suggested that borrowers with loan sizes below ₹2 lakh may be excluded from the requirements of the proposed directions “to ensure timely and speedy disbursement of loans for such small ticket borrowers”.

In his letter to Ms. Sitharaman, Mr. Stalin wrote that small and marginal farmers often lack formal land titles or verifiable income documentation, which makes the pledging of gold a viable and dignified route to access institutional credit.

“The proposed prohibition would directly curtail this essential channel, effectively excluding a large segment of genuine and needy borrowers from the formal financial system,” he said.

Among the proposed rules in the RBI’s draft guidelines are a loan-to-value ratio cap of 75%, meaning borrowers will be able to avail loans of only 75% of the value of the gold they pledge. Additionally, borrowers will have to prove they own the gold they pledge, and there would be a cap on how much gold a single borrower can pledge with one lender.

“It is expected that concerns raised by various stakeholders, as well as the feedback received from the public, will be duly considered by the @RBI before finalising the Directions on the same,” the Ministry of Finance added.

US President Donald Trump on Friday said the United States is “very close to making a deal with India,” while also confirming that a representative from Pakistan is expected to visit Washington for talks next week. Speaking to reporters at Joint Base Andrews, Trump said, “Pakistan representatives are coming in next week. We’re very close to making a deal with India.”

However, he warned that any ongoing conflict between India and Pakistan could derail such negotiations. “And I wouldn’t have any interest in making a deal with either if they were going to be at war with each other,” he said.

Also Read: India, US may agree on interim trade deal by June 25: Sources

His comments came amid heightened tensions between the two nuclear-armed neighbours, following India’s May 10 ‘Operation Sindoor’ — a counterstrike in response to the April 22 terror attack in Pahalgam that killed 26 people.

In parallel, the United States has announced worldwide tariffs, which could now apply to Pakistani exports due to its $3 billion trade surplus with the US. Pakistani goods could be subjected to tariffs of up to 29%.

Amid these developments, Indian Union minister Piyush Goyal recently visited Washington to push forward bilateral trade negotiations. Both nations are aiming to conclude an interim deal by early July. This comes in the backdrop of a looming 26% tariff on Indian exports to the US.
The ministry of external affairs has confirmed that India’s foreign secretary Vikram Misri visited the United States from May 27 to 29. The Indian Embassy called his meeting with US deputy secretary of state Christopher Landau a “great first meeting” that addressed a broad range of shared priorities between the two countries.
Meanwhile, Reuters reported last week that India is likely to open up its government procurement market to American companies. The expected move would allow US firms to bid for contracts worth over $50 billion, largely from federal agencies, as part of the ongoing trade discussions with Washington.
Earlier, Trump had again claimed that US trade discussions with both India and Pakistan helped prevent a nuclear disaster. “We talk trade, and we say we can’t trade with people who are shooting at each other and potentially using nuclear weapons… They understood and they agreed, and that all stopped,” Trump said.

Also Read: We can’t trade with countries firing missiles’: Trump again claims credit for avoiding ‘nuclear disaster’

“I think the deal I’m most proud of is the fact that we’re dealing with India, we’re dealing with Pakistan, and we were able to stop potentially a nuclear war through trade as opposed to bullets. You know, normally they do it through bullets. We do it through trade. So I’m very proud of that. Nobody talks about it. But we had a very nasty potential war going on between Pakistan and India. And now, if you look, they’re doing fine,” he added.

The report said the growing capital pool is crucial for funding government and corporate deficits and supporting macroeconomic stability. File
| Photo Credit: Reuters

State Bank of India (SBI) in its latest economic research report said that based on the current trends, net financial savings of the household sector may touch ₹22 lakh crore, or 6.5% of Gross National Disposable Income (GNDI), in the financial year 2024-25. The net financial savings during 2023-24 stood at 5.1% of GNDI, an increase from 4.9% in the previous fiscal.

The report said the growing capital pool is crucial for funding government and corporate deficits and supporting macroeconomic stability.

Referring to the dynamics of Reserve Bank of India (RBI) surplus, the report said the Central bank’s efforts to contain the volatility of the Rupee was a major factor in determining its quantum. During fiscal 2024-25, the balance sheet of RBI expanded by 8.19%, which is less than the nominal GDP growth of 9.9%. “An amount of ₹2.69 lakh crore surplus amount of RBI has been transferred to the government, which would enhance the fiscal space,” the report said.

According to the report, the incidence of fraud cases had declined, but defraud amounts tripled to ₹36,014 crore. On the other hand, card and internet fraud volume decreased significantly from 29,802 in 2023-24 to 13,516 in 2024-25. “In summary, India’s financial system stands at a crossroads, resilient and transformative,” the report said.

Ram Mohan Naidu, Civil Aviation Minister

India intends to expand its civil aviation industry by building hub airports throughout the country to establish an “independent and self-sufficient” international flight network that links its cities with other nations, Union Civil Aviation Minister Ram Mohan Naidu told businessline.

Speaking exclusively to businesslineMinister Naidu said that such a network is essential for meeting the growing aspirations of the country, which is now the fourth-largest economy in the world.

“We plan to make several hub airports across the country to develop an independent, self-sufficient international flight network that links our cities with other global destinations. In this connection, having the IATA AGM and WATS in New Delhi will go a long way in forming partnerships to develop the resilient global network that we are building,” Naidu said on the eve of the 81st IATA Annual General Meeting (AGM) and the World Air Transport Summit (WATS), which will take place in New Delhi from June 1-3, 2025.

“PM Narendra Modi will deliver the key note address at the summit,” he said.

On plans of scaling up aviation infrastructure, the Minister pointed out that already two mega projects–theNoida and Navi Mumbai airports–were on the verge of completion. “We will be developing more airports, more water aerodromes, and more heliports and will also come up with a new version of the UDAN scheme that will promote air connectivity like never before,” he said.

New airlines

Several new airlines have commenced operations and more such entities are in the process of acquiring aircraft to start flights, he added.

“The problem is that the global supply of aircraft and engines is what is slowing our aviation growth. However, even over here, we see an opportunity to develop a manufacturing segment focused on making aircraft parts and engine components here in India, including those for drones,” Minister Naidu said.

The government is also trying to bring down the cost of aircraft financing and leasing. “We have brought in far-reaching reforms via legislation. We are also in the process of finalising the contours of developing an indigenous civilian aircraft in India and developing a globally competitive MRO sector that will reduce operational costs, thereby bringing down airfares,” he said.

India’s civil aviation sector has shown exceptional resilience, the Minister affirmed. “In the face of challenging situations, not one ultra-long-haul flight to Europe and the continental United States got cancelled,” he said.

Over the last 10 years, India has made significant moves in developing the aviation infrastructure required to sustain the growth of the sector, Minister Naidu said.

“We have developed over 85 airports in the last 10 years, operationalised airstrips, and built new terminals as well as heliports. Our airlines have ordered nearly 2,000 aircraft, and our domestic and international traffic has maintained a consistent growth rate of around 6 per cent year-on-year. On the regional segment, our UDAN connectivity scheme has benefited and made it possible for 1.5 crore men and women from the hinterland to travel via airways,” he said.

The minister pointed out that India of 2025 views air travel not as an elitist travel medium but as an essential transport mode that will enable the overall economy to sustain high growth rates.

Published on May 31, 2025

The manufacturing sector’s growth stood at 4.8% in Q4 of FY25, the second fastest quarterly growth in the year, on a high base of 11.3% in Q4 of the previous year. Representational file image.
| Photo Credit: B. Velankanni Raj

While a significant uptick in economic activity in the fourth quarter of financial year 2024-25 pushed GDP growth for the full year to 6.5%, as per the provisional estimates for 2024-25 released by the government on Friday (May 30, 2025), this is the slowest since the pandemic year 2020-21.

As per data released by the Ministry of Statistics and Programme Implementation, real GDP growth in Q4 of 2024-25 accelerated to 7.4%, the fastest quarterly growth in the year. Quarterly GDP growth stood at 6.4% in Q3. Nevertheless, growth in Q4 of 2024-25 was slower than the 8.4% seen in the fourth quarter of the previous financial year.

Chief Economic Advisor V. Anantha Nageswaran, in a press briefing following the release of the data, sought to downplay the post-COVID slowdown in the Indian economy, saying that India has held its own in a “growth-scarce” global environment.

“If you look at India’s growth differential in real terms, India’s growth rate differential in comparison to the average growth rate of advanced economies was on the lower side during the ‘boom era’ between 2003 and 2010,” Mr. Nageswaran explained. “The growth differential post-COVID is higher than the growth differential in the ‘boom era’.”

“In other words, in a growth-scarce environment, post-COVID and despite the rising uncertainties due to political conflicts and trade tensions, India is holding up its growth numbers better than many advanced economies,” he added.

The agriculture sector continued its strong performance in Q4, leading to a relatively strong showing for the full year. The ‘Agriculture, Livestock, Forestry & Fishing’ sector grew 5.4% in Q4 of the year, up from 0.9% in Q4 of 2023-24. This helped propel the full year’s growth for the sector to 4.6% in the full year 2024-25, up from 2.7% in 2023-24.

The manufacturing sector’s growth stood at 4.8% in Q4 of FY25, the second fastest quarterly growth in the year, on a high base of 11.3% in Q4 of the previous year. The sector grew 4.5% in the full financial year 2024-25, down from 12.3% in 2023-24.

The construction sector returned to double-digit growth of 10.8% in the fourth quarter, the fastest in the year, and faster than the 8.7% seen in Q4 of 2023-24. The sector’s full-year growth stood at 9.4% in 2024-25, down from 10.4% in 2023-24.

Growth in the tertiary sector — a composite of all the services sectors — stood at 7.3% in Q4, in line with the growth in Q2 (7.2%) and Q3 (7.4%). Growth in Q4, however, was slower than the 7.8% seen in the fourth quarter of 2023-24. In the full year 2024-25, the tertiary sector grew at 7.2%, lower than the 9% in the previous year.

The data released on Friday also showed that growth in household consumption – as measured by the Private Final Consumption Expenditure (PFCE) figure — quickened to 7.2% in 2024-25 from 5.6% in the previous year.

Gross Fixed Capital Formation, a measure of asset creation by the public and private sector, saw growth slowing to 7.1% in 2024-25 from 8.8% in 2023-24. This is despite growth in this spending quickening to a six-quarter high of 9.4% in Q4 of 2024-25.

Companies can now accrue stunning amounts of intimate data about their employees’ bodies. Some might collect biometric data such as fingerprints and retina scans as part of efforts to improve security. Others, such as Amazontrack and analyze workers’ movements with artificial intelligence (AI)–embedded surveillance technologies to promote safety and productivity in warehouses. Companies might even go as far as collecting health data, incentivized by the desire to improve the overall health of the workforce or get discounts on premiums from health insurers. The technology that facilitates this collection has gotten both better and cheaper in recent years. Wearables and mobile devices can count steps, measure heart rates, and provide statistics on sleeping habits. Through “behavioral biometrics,” cameras can identify people based on their gait and posture, for instance, and analyze their behavior.