India-U.S. Trade Pact: Exporters Urge Early Conclusion, Tariff Uncertainty Hits Orders, Trade Surplus Narrows to $33.9 Bn

BRICS New Delhi Declaration: India's Dilemma on Local Currency Trade vs. Strategic Autonomy

The BRICS New Delhi Declaration highlights India's cautious approach to local currency trade, balancing export advantages from a depreciating rupee against the risk of yuan dominance and US tariff threats. India supports local currency trade but opposes a common BRICS currency due to China's likely control.

US Imposes 100% Tariff on India Pharma Exports from 2028, Impact on $150 Bn Trade

Trump's unilateral tariff actions on Indian pharmaceutical exports (100% from 2028, rising to 200%) and use of Sections 301, 232, and 338 expose the fragility of ongoing India-US trade negotiations. Despite $150 billion bilateral trade and India's surplus, no signed agreement seems safe. India should prioritize trade diversification towards the UK and EU.

US House Passes Bill Allowing 100% Tariff on Russian Oil Buyers; India Imports 45% Crude from Russia

The US House passed a bill allowing President Trump to impose up to 100% tariffs on countries importing Russian oil. India, which imports 45% of its crude from Russia, faces potential trade leverage as it negotiates a bilateral trade deal with the US.

India's Exports to Core BRICS Surge 34% to $19.9 Billion; China Leads

India's exports to core BRICS nations (China, South Africa, Brazil, Russia) surged 34% to $19.9 billion in April-August 2026-27, with China leading at 39% growth. This highlights the bloc's growing importance in India's trade strategy, offering a counter-narrative to the usual focus on Western markets.

EU CBAM: Carbon Border Tax on Steel Imports to Cost India €190/Tonne from Feb 2027

The EU has implemented the Carbon Border Adjustment Mechanism (CBAM), a carbon tax on imports of steel, aluminium, cement, fertilisers, hydrogen, and electricity. For India, this is primarily a steel tax—$5.4 billion of its $6.3 billion CBAM-exposed exports to the EU in 2024 were iron and steel. With Indian steel emitting 2.54 tonnes of CO2 per tonne (vs. world avg. 1.9), the tax could cut exports by 24%, and BRICS has formally opposed it as protectionist in the New Delhi Declaration.

India-Canada CEPA Talks: 5th Round From Oct 5, $70B Trade Target by 2030

India and Canada are fast-tracking negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with the fifth round starting October 5, 2026. Both sides aim to conclude by end of 2026 and double bilateral trade to $70 billion by 2030, up from $30.4 billion in 2025. This signals India's proactive trade diversification strategy, relevant for IR and Economy syllabus.

US-China Summit: 2-Month Trade Truce Extension, AI Safety Off Agenda, India Faces Russian Oil Tariff Risk

Trump-Xi summit (Sept 23-24, 2026) resulted in a symbolic but substance-light outcome. AI safety was dropped from talks, a 2-month trade truce extension was agreed, and India faces increased tariff pressure for buying Russian crude oil as China gets a temporary exemption. The summit reinforces India's suspicion that it is the primary US target under the Lindsey O. Graham Sanctioning Russia and Iran Act.

India's Merchandise Exports Surge 19.6% to $44.2 Billion in July 2026, Trade Deficit Widens to $15 Billion

India's goods exports grew nearly 20% in July 2026, driven by recovery in West Asia trade and diversification to new markets like China, Japan, and Singapore. However, the combined trade deficit widened to $15 billion as services imports outpaced services exports, signaling a mixed trade performance for exam focus.