Digest for 22 September, 2025
UK, Canada, and Australia Formally Recognise Palestinian Statehood
In a significant diplomatic shift, the United Kingdom, Canada, and Australia have formally recognised a Palestinian state. The coordinated announcements came ahead of the UN General Assembly and despite opposition from the United States and Israel. The move is intended to revive prospects for a two-state solution to the long-standing conflict. Other Western nations, including France, are expected to follow suit, signalling growing international pressure to resolve the crisis and address what some leaders called a historic injustice.
Major GST Overhaul Takes Effect, Slashing Rates on Hundreds of Goods
A new two-tier Goods and Services Tax (GST) structure came into effect today, resulting in price reductions for approximately 375 items, from kitchen staples to electronics. Under the reforms, most goods in the 12% slab will move to 5%, while 90% of items in the 28% slab will now be taxed at 18%. In a national address, Prime Minister Narendra Modi framed the rollout as a "GST savings festival," stating the changes will accelerate growth and increase the ease of doing business.
Indian and US Foreign Ministers to Meet in New York Amid Trade Tensions
External Affairs Minister S. Jaishankar is scheduled to meet U.S. Secretary of State Marco Rubio in New York on the sidelines of the UN General Assembly. The talks are set against a backdrop of fresh trade tensions, following the US imposition of steep tariffs on Indian exports over its energy trade with Russia. Discussions are expected to cover the trade dispute, cooperation in the Indo-Pacific, and global security challenges, with both nations seeking to stabilize economic and strategic ties.
Trump's Proposed $100,000 H-1B Visa Fee May Backfire, Think Tank Warns
A U.S. proposal to raise H-1B visa fees to $100,000 per worker will likely hurt the American economy more than India, according to the Global Trade Research Initiative (GTRI). The think tank argues that the exorbitant fee would make hiring on-site talent prohibitive, forcing U.S. firms to accelerate offshoring work to India. This could lead to fewer H-1B petitions, slower innovation in the U.S., and ultimately benefit India by encouraging the return of top tech talent.
Taliban Government Rejects US President's Bid to Retake Bagram Air Base
The Taliban government has rejected a suggestion by U.S. President Donald Trump that American forces could retake the Bagram Air Base in Afghanistan. A Taliban spokesperson stated that Afghanistan's sovereignty is paramount and urged the U.S. to adhere to the Doha Agreement, which prohibits interference in the country's internal affairs. The statement comes four years after the chaotic U.S. withdrawal that left the strategic military facility under Taliban control, and dismisses any possibility of a renewed U.S. military presence.