Digest for 31 July, 2025
US to Impose 25% Tariff and Penalty on All Indian Goods
US President Donald Trump announced a 25% tariff on all Indian imports, effective August 1, plus an unspecified penalty. He cited India's own high tariffs, non-monetary trade barriers, and its large-scale energy and military purchases from Russia as justification. The move escalates trade tensions and creates significant uncertainty for Indian exporters and the broader economy, coming as negotiations for a bilateral trade agreement appeared to stall ahead of a deadline.
US Sanctions Six Indian Companies for Trading with Iran
The US has sanctioned six Indian petrochemical companies for engaging in "significant transactions" with Iran, violating American sanctions. The companies, including Alchemical Solutions and Jupiter Dye Chem, are accused of collectively purchasing over $220 million in Iranian-origin products. As a result, their US-based assets are frozen, and American entities are barred from doing business with them. The action is part of Washington's "maximum pressure" campaign to cut off revenue to the Iranian regime.
All Accused in 2008 Malegaon Blast Case Acquitted After 17-Year Trial
A special National Investigation Agency (NIA) court has acquitted all seven accused in the 2008 Malegaon blast case, including BJP MP Sadhvi Pragya Singh Thakur and Lt Colonel Prasad Purohit. The court cited a lack of sufficient and cogent evidence to prove charges under the UAPA and other acts. The 2008 blast near a mosque in Maharashtra killed six people and injured over 100. The verdict concludes a highly politicised, 17-year-long legal battle.
New Banking Laws to Take Effect from August 1, Strengthening Governance
The Banking Laws (Amendment) Act, 2025, will come into force on August 1, introducing significant reforms to India's financial sector. The new legislation aims to enhance governance standards, improve depositor protection, and align regulations with modern practices. Key changes include increasing the tenure for directors in cooperative banks, permitting public sector banks to transfer unclaimed funds to the Investor Education and Protection Fund (IEPF), and empowering them to offer better remuneration to attract high-quality auditors.
UNSC Report Officially Links Pakistan-Based TRF to Pahalgam Terror Attack
In a major diplomatic development, a United Nations Security Council (UNSC) monitoring team has officially implicated The Resistance Front (TRF), a Pakistan-based affiliate of Lashkar-e-Toiba, in the deadly Pahalgam terror attack of April 22. This is the first UN report to name an LeT faction since 2019 and was adopted by consensus, despite Pakistan currently holding the UNSC presidency. The finding validates India’s long-standing position on cross-border terrorism and Pakistan's use of terror proxies.