Business

India will keep purchasing oil from Russia despite U.S. President Donald Trump’s threats of penalties, two Government sources told The New York Times, not wishing to be identified due to the sensitivity of the matter.

“These are long-term oil contracts,” one of the sources said. “It is not so simple to just stop buying overnight.”

Mr. Trump last month indicated in a Truth Social post that India would face additional penalties for purchases of Russian arms and oil. On Friday (August 1, 2025), Mr. Trump told reporters that he had heard that India would no longer be buying oil from Russia.

​Soured relations: The Hindu editorial on Trump’s 25% tariff, ‘penalty’

The New York Times on Saturday (August 2, 2025) quoted two unnamed senior Indian officials as saying there had been no change in Indian government policy, with one official saying the government had “not given any direction to oil companies” to cut back imports from Russia.

Reuters reported this week that Indian state refiners stopped buying Russian oil in the past week, following a narrowing of discounts in July.

Country-wise Breakdown of Import Volumes
| Photo Credit:
PTI GRAPHICS

“On our energy sourcing requirements … we look at what is there available in the markets, what is there on offer, and also what is the prevailing global situation or circumstances,” Foreign Ministry spokesperson Randhir Jaiswal told reporters during a regular briefing on Friday.

Mr. Jaiswal added that India has a “steady and time-tested partnership” with Russia, and that New Delhi’s relations with various countries stand on their own merit and should not be seen from the prism of a third country.

The White House in Washington did not immediately respond to requests for comment.

Indian refiners are pulling back from Russian crude as discounts shrink to their lowest since 2022, when Western sanctions were first imposed on Moscow, due to lower Russian exports and steady demand, sources said earlier this week.

The country’s state refiners — Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd — have not sought Russian crude in the past week or so, four sources familiar with the refiners’ purchase plans told Reuters.

India’s top oil supplier

On July 14, Mr. Trump threatened 100% tariffs on countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Russia is the top supplier to India, responsible for about 35% of India’s overall supplies.

Russia continued to be the top oil supplier to India during the first six months of 2025, accounting for about 35% of India’s overall supplies, followed by Iraq, Saudi Arabia and the United Arab Emirates.

India, the world’s third-largest oil importer and consumer, received about 1.75 million barrels per day of Russian oil in January-June this year, up 1% from a year ago, according to data provided to Reuters by sources.

Nayara Energy, a major buyer of Russian oil, was recently sanctioned by the European Union as the refinery is majority-owned by Russian entities, including oil major Rosneft .

Last month, Reuters reported that Nayara’s chief executive had resigned after the imposition of EU sanctions and company veteran Sergey Denisov had been appointed as CEO.

Three vessels laden with oil products from Nayara Energy have yet to discharge their cargoes, hindered by the new EU sanctions on the Russia-backed refiner, Reuters reported late last month.

The Enforcement Directorate (ED) has arrested Partha Sarathi Biswal, managing director of Biswal Tradelink Private Limited (BTPL), in connection with an alleged fake bank guarantee case.

The arrest was made following searches in Bhubaneswar and Kolkata.

The probe is based on a first information report registered by the Economic Offences Wing of the Delhi police, BTPL, its directors, and others, for allegedly providing a fake bank guarantee, which was purportedly submitted to Solar Energy Corporation of India Limited (SECI).

“In a related matter, evidence seized earlier during searches on July 24 in the case of Anil Ambani group companies has direct linkage with the present investigation. A bank guarantee of ₹68.2 crore submitted to Solar Energy Corporation of India Limited (SECI) on behalf of Reliance NU BESS Limited/Maharashtra Energy Generation Limited has been established as fake,” an official had earlier alleged.

According to the agency, BTPL fraudulently arranged and submitted fake bank guarantees of ₹68.2 crore along with forged SBI endorsements and fabricated confirmations for a SECI tender. “For providing this bank guarantee, ₹5.40 crore has been received by BTPL from Reliance Power Limited,” the agency alleged.

Multiple accounts

“Evidence confirms the use of fake documents in the name of certain banks and fake email IDs in the name of the SBI. The probe reveals that BTPL, a small company incorporated in 2019, maintained multiple undisclosed bank accounts and carried out transactions disproportionate to its declared turnover,” it said.

The ED is alleged to have detected many violations of the Companies Act. Dummy directors were used just to sign documents. At least seven undisclosed bank accounts of the company have been found, according to the agency sources.

The Central Electricity Regulatory Commission’s (CERC) proposed implementation of market coupling in Day Ahead Market (DAM) segment of power exchanges from January 2026 may have little benefit for the power sector and is contrary to the findings of the pilot study conducted by Grid Controller of India, according to industry officials and analysts.

They said the marginal improvements do not offer a “compelling rationale” for implementing market coupling on a full scale, particularly in the absence of a detailed “robustness and sensitivity” analysis. 

They added that even the January 2026 timeline for implementation would be challenging.

“The results of the shadow pilot conducted by Grid-India released in July 2025 do not indicate any significant benefits from market coupling. This is in line with the earlier CERC order dated 6th February 2024,” said an industry official 

“In the DAM segment, overall welfare increased by a negligible 0.3%, and overall volume cleared increased by only 0.2%. Similarly, in the Real-Time Market (RTM) segment, both overall welfare increase and increase in volume cleared saw an insignificant gain of 0.01%,” the official said.

Further, the increase of social welfare by ₹38 crore in case of DAM coupling doesn’t mean that there will be saving of ₹38 crore, the official said.

“Savings will be miniscule, if at all. The reported increase in social welfare of ₹38 crore in DAM is theoretical, used for algorithmic modelling, and does not imply actual consumer savings,” the official added.

“Introducing central market coupling mechanism risks adding complexity, delaying market operations, and duplicating functions, without resolving core challenges such as market liquidity, deepening of participation, or improving investor confidence,” the official said.

According to industry officials while the idea has been presented as ‘market coupling’, the proposed design more closely resembles ‘exchange coupling’ with no precedence globally. 

They pointed out that while Grid-India had submitted a detailed report to CERC, the Commission’s order does not adequately reflect the comprehensive findings of that report. 

For ensuring transparency and stakeholder confidence, the complete Grid-India report should be made publicly available to facilitate informed discussions and independent assessments of the recommendations, they emphasised. 

According to a report by JM Financial the benefits of market coupling are negligible.

“A shadow pilot study by Grid-India revealed that DAM coupling resulted in an overall welfare gain of just 0.3% in price and 0.2% in volume. The volume of electricity that could not be cleared as % to unconstrained cleared volume was just 0.10% in FY24,” JM Financial analysts said in the report.

“Anticipated benefits (price, volume, transmission) of market coupling are not explicitly evident in the Indian context,” they said.

According to them the implementation of power market coupling requires upgrading and integration of software, modification in infrastructure for compatibility, formation of data sharing protocol as well as consensus on financial settlement mechanism.

“We believe the January 2026 target for implementation of coupling is very ambitious, and implementation will not be possible before December 2027,” they said in the report.

“If applied elsewhere, this approach would imply merging competitive platforms like NSE and BSE or even Jio and Airtel — contradicting the principles of open markets. This will effectively kill innovation, service excellence and the incentive to launch new products,” said Ashish Kapur, CEO, Invest Shoppe, a boutique financial firm offering wealth management solutions.

Exporters of textiles, garments, and engineering goods fear that the 25% tariff imposed by the U.S. will not only lead to loss of orders but also put them in a quandary as no other market has the high volume demand as the U.S.

The Union Minister for Commerce and Industry Piyush Goyal met delegations from the textile and engineering export councils on Friday.

“We have impressed upon the Minister that for some of the textile products, 60% to 70% exports goes to the U.S. We cannot get such high volume from any other market and if we lose the US buyers, companies supplying these products will be hit hard,” said one of the textile exporters.

In the case of engineering goods too, the U.S. is the leading buyer for some of the products for several years. “The competing countries have relatively lesser tariff. Countries that have tariff higher than India are really not competitors. Hence, there should be a detailed study now on the product lines that will be hit by the 25% tariff,” said an engineering exporter.

The exporters have urged the government to reintroduce the interest subvention scheme. Indian exporters, mainly the micro, small and medium-scale enterprises, have 2% to 3% disadvantage because of the high interest rates in India compared to the competing countries. Now, they will face higher cost disadvantage because of the tariff. The exporters have also sought supportive measures from the government so that they can supply at competing prices to the U.S. buyers.

Mahindra & Mahindra Ltd. (M&M) said it has acquired 58.96% stake in SML Isuzu Ltd. (SML) from Sumitomo Corporation, Japan and Isuzu Motors Ltd, Japan and as part of the transaction would also launch a mandatory open offer for acquisition of up to 26% stake from eligible public shareholders of SML as per SEBI Takeover Regulations.

M&M said the Board of Directors of SML has been reconstituted. Vinod Sahay, President – Aerospace & Defence, Trucks, Buses & CE – Mahindra Group, has been appointed as Executive Chairman of SML Isuzu, effective August 3.

Venkat Srinivas has been appointed as the Executive Director & Chief Executive Officer of SML Isuzu Ltd., effective August 01.

The Board of Directors of SML has also approved a change in the name of the company to ‘SML Mahindra Ltd’ subject to approvals from RoC, Central Registration Centre, MCA and shareholders of the Company or any other authority as may be necessary.

In April 2025, M&M had entered into an agreement to acquire a 58.96% equity stake in SML at ₹650 per share, representing a total investment of ₹555 crore.  Mr. Sahay who is a member of the Group Executive Board of Mahindra Group, in  addition to his new role in SML Isuzu Ltd, will continue to serve as President – Aerospace & Defence, Trucks, Buses and Construction Equipment sector of Mahindra group. 

Dr. Srinivas, in addition to his new role, will continue to serve as the Business Head for Mahindra Truck & Bus (MTB) and Construction Equipment (CE). 

Chennai-based Kothari Industrial Corporation Ltd. (KICL), the flagship company of the D.C. Kothari group, has acquired Zodiz, Jeetlo and other associated sub-brands in the footwear field.

The acquisition of Zodiz, Jeetlo and associated sub-brands will come into effect from August 4, 2025, the company said.

Zodiz is owned by Zaimus Trends Private Ltd., a company based in Coimbatore.

Jeetlo Footwear is another Indian footwear brand known for affordable, trendy shoes and sandals. It has a strong presence on leading Indian e-commerce platforms, the company said.

These brands cater to the price- and quality-conscious mass market, offering products below ₹1,000 per pair — a segment that accounts for nearly 80% of the Indian footwear consumption, valued at ₹80,000–85,000 crore annually, it said.

This acquisition gives KICL an immediate foothold in one of the fastest-growing and underserved consumer segments, the company said.

Jinnah Rafiq Ahmed, Executive Chairman, Kothari Industrial Corporation Ltd
| Photo Credit:
Bijoy Ghosh

“Our business strategy will be distribution-led, targeting Tier-2 and Tier-3 cities — India’s emerging urban hubs where the appetite for affordable fashion is on the rise,” said Jinnah Rafiq Ahmed, Executive Chairman, KICL.

KICL is deeply into the non-leather footwear field having set up a non-leather footwear park in the backward district of Perambalur in Tamil Nadu. It has already tied up foreign makers of iconic brands such as Kickers, Adidas and the like.

U.S. President Donald Trump on Thursday (July 31, 2025) announced a 25% tariff on Indian imports into the U.S., effective August 1, following a 90-day pause in tariffs announced in April. In a post on the platform Truth Social, he called India’s tariffs “too high” and said that it had “strenuous and obnoxious non-monetary trade barriers.”

He also criticised India for its fossil fuel trade with Russia. Mr. Trump has been trying to broker a ceasefire between Russia and Ukraine to stop the three-year ongoing war between the two countries, with no firm deal in sight yet.

In this context, here is an overview of the India-U.S. trade.

How much does India export to and import from the U.S.?

In 2024-25, India’s exports to the U.S. were valued over 86,000 million dollars, with imports being over 45,000 million dollars. In terms of percentage, the U.S. made up around 20% of India’s exports and 6.3% of its imports.

India has always imported more than it exported to the U.S. Exports to the U.S. fell sharply in January this year and have continued to remain below levels not seen after 2022. India exported in March this year the lowest since April 2016.

What does India send to the U.S.?

India’s major exports to the U.S. include telecom equipment, drug formulations and biologicals, textiles, petroleum, iron and steel, pearl and precious stones and more.

However, there are variations in the percentage of each of these products that India exports to the U.S. compared to total exports of the product to all countries. For instance, India sends over 63% of all telecom exports to the U.S. For petroleum products, this is 7%.

It is to be noted that the 25% tariff rule does not include some products like pharmaceuticals, electronics and ICT goods, and petroleum products.

India-Russia trade

One of Mr. Trump’s criticisms is India’s trade with Russia in the area of energy. As part of its opposition to Russia’s actions in Ukraine, the European Union along with other Western countries imposed sanctions on Russian goods and individuals, and cut down on its imports of Russian energy after 2022.

However, India increased its imports of Russian energy from around 2% of total Russian exports to over 20% in response to cheaper prices of discounted Russian oil.

In a media briefing on Friday (August 1, 2025), the Ministry of External Affairs Spokesperson Randhir Jaiswal said that decisions regarding the sourcing of energy were “based on the price at which oil is available in the international market and depending on the global situation at that time.”

Similarly, External Affairs Minister said in 2023 that the country had to source oil where it was cheapest. He pointed out that European countries are “diverting production out of the Middle East and raising prices.”

Besides energy imports, India’s imports of Russian military equipment was another of Mr. Trump’s complaints. In 2024, India imported around 40% of its military imports from Russia. Exports to India made up 34% of Russia’s total exports.

According to SIPRI, Russia was the top supplier to India, followed by France and Israel in 2024. However, Indian sources told Reuters that the country was looking to pivot away from Russian arms since Russia’s munitions were depleted due to its war with Ukraine. This also aligns with Prime Minister Narendra Modi’s ‘Make in India’ programme to boost domestic production.

On military procurement, Mr. Jaiswal said sourcing was determined “solely by our national security imperatives and strategic assessments” on Friday.

(With inputs from Reuters)

Reddit’s shares surged 15% on Friday after it reported quarterly results that exceeded Street expectations, boosting investor confidence in the platform’s AI-based advertising tools and strong user engagement.

The company has also posted a rosy forecast that comes on the heels of similarly upbeat results from ad industry leaders such as Meta and Alphabet, underscoring a broader sector shift as advertisers gravitate towards platforms that provide artificial-intelligence tools to create more personalised campaigns.

The company expects third-quarter revenue of between $535 million and $545 million, well above analysts’ average estimate of $473 million, according to data compiled by LSEG.

Reddit’s focus on understanding user intent through authentic community conversations positions it to unlock new monetisation opportunities, said Danni Hewson, head of financial analysis at AJ Bell.

“Being able to home in on exactly the kind of consumer who might be open to splurge on what a seller is offering has made sites like Reddit hugely popular with advertisers,” Hewson said.

Reddit’s results, along with those of Google and Meta, signal the ad industry’s resilience in the face of growing economic uncertainty brought on by shifting U.S. trade policy.

The company’s diverse ad offerings, including ads inserting brands directly within conversations on its subreddit discussions, remain attractive to marketers.

Reddit’s daily active unique visitors increased 21%, with analysts saying stabilizing daily active user trends are bolstering investor confidence in the platform’s “long-term growth narrative”.

Despite variable Google-driven traffic posing a headwind in the second quarter, Reddit’s U.S. daily active users held steady, expressing confidence that the company’s unique content was valuable to both Google and searchers, analysts at Piper Sandler said.

The company has been investing in new products, search capabilities and international expansion to offset inconsistent user traffic.

Reddit is currently valued at a premium compared to its peers, trading at 74.57 times its projected earnings over the next 12 months, well above Pinterest’s 19.39 and Snap’s 27.54.

If gains hold, Reddit is set to add more than $4 billion to its market cap.

Design software maker Figma’s shares surged another 20% in morning trading on Friday, extending strong debut-day gains after a blowout U.S. initial public offering that has reignited the tech listing market.

The San Francisco, California-based company’s shares closed at $115.5 on Thursday, compared with its IPO price of $33. The 250% surge lifted Figma’s market value to nearly $68 billion, far exceeding the $20-billion valuation in a now-scrapped buyout deal with Photoshop maker Adobe.

Figma’s $1.22-billion offering, the fourth-largest U.S. IPO of the year, is being seen as a potential catalyst for other startups eyeing a flotation after a three-year freeze in the tech listings market.

The deal’s strong reception renewed hopes of a broader reopening of the pipeline, as private companies and investors look to capitalise on improving market conditions and strong demand for growth names.

Figma, which has highlighted its focus on AI, has also benefited from Wall Street’s enthusiasm for the technology. The boom fueled a sharp rally in tech stocks over the past year and drove up valuations and investor demand for companies seen as central to the AI ecosystem.

“In order for application software companies to remain relevant and provide value to end users, they will need to implement GenAI capabilities which represents a potential catalyst for adoption and increased usage of Figma,” D.A. Davidson analyst Gil Luria said in a note.

Founded in 2012 and led by CEO Dylan Field, Figma provides cloud-based collaborative design tools, with a roster of marquee clients including Google, Microsoft, Netflix and Uber.

Though the blockbuster performance is good news for the IPO market, particularly for high-growth tech listings, the sharp surge suggests Figma may have priced its IPO too conservatively, potentially leaving money on the table.

Bankers typically target a first-day rise of 10% to 20% to balance strong demand with optimal fundraising.