Morning Brief: India Ramps Up US Arms Buys After Operation Sindoor; Costly Fertiliser Crunch As China Blocks Supply; SIP Inflows Hit Record Rs 27,000 Crore In June; And More

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India Ramps Up US Arms Buys After Operation Sindoor

India is fast-tracking emergency defence purchases from the US following Operation Sindoor, which exposed Pakistan’s growing arsenal of Chinese weapons. Seven of nine terror targets struck on Day 1 were hit with US-made Excalibur shells, prompting India to urgently seek more precision-guided munitions and Javelin anti-tank missiles.

Talks are also ongoing to resolve pricing issues over P-8I aircraft and to align US arms regulations with India’s needs. The Pentagon may even divert supplies from its own stocks. With Russia increasingly reliant on China, India is deepening ties with Washington to secure supply chains, spares, and tech access, a shift that gained momentum after the successful use of US drones and artillery in recent conflicts.

With China Blocking Supply, India Faces Costly Fertiliser Crunch

With China halting exports of specialty fertiliser raw materials to India for over two months, Indian firms have turned to costlier sources in Europe, Russia, and West Asia, The Economic Times has reported. Imports from these countries are 15–20 per cent more expensive due to limited availability and higher shipping costs, industry officials said. China accounts for 32 per cent of global specialty fertiliser exports, and India relies on it for 80 per cent of its supplies.

Though there’s no official export ban, Chinese authorities have stopped clearing India-bound consignments. Around 100,000 tonnes are now expected from alternate suppliers to replace the 150,000 tonnes stuck at Chinese ports. Prices of key nutrients like mono ammonium phosphate and calcium nitrate are expected to rise further, squeezing horticulture productivity and exports.

SIP Inflows Hit Record Rs 27,000 Crore In June

Retail investors poured Rs 27,269 crore into mutual funds via SIPs in June, the highest ever monthly inflow, breaking a seven-month plateau where collections hovered around Rs 26,000 crore. The Association of Mutual Funds in India reported a 2.2 per cent rise in SIP inflows. The number of active SIP accounts also rose to an all-time high of 8.64 crore, while total mutual fund assets touched Rs 74.8 lakh crore.

Equity funds saw net inflows of Rs m23,587 crore, extending a 52-month positive streak. Inflows into mid- and small-cap funds outpaced large-caps, reflecting a growing risk appetite. Gold ETFs also drew Rs 2,000 crore, showing continued interest in diversification.

Other Developments

Nvidia Becomes First Company to Cross $4 Trillion Market Cap

Nvidia on Wednesday became the first company ever to reach a $4-trillion market valuation, with its shares rising 2.8 per cent to $164. The rally marks a dramatic comeback from earlier in the year, when fears over China’s DeepSeek and Trump’s trade war dampened sentiment. Nvidia’s stock is up over 20 per cent in 2025 and more than 1,000 per cent since 2023.

The surge is driven by robust AI demand from Microsoft, Meta, Amazon, and Alphabet, who are set to invest $350 billion in capex next year. These firms contribute over 40 per cent of Nvidia’s revenue, cementing its dominance in the AI-driven tech economy.

NIA Files Fresh Charges Against Tahawwur Rana In 26/11 Case

New Delhi: The National Investigation Agency (NIA) on Wednesday filed a supplementary charge sheet against Tahawwur Rana in the 26/11 Mumbai terror attacks case. Rana, extradited from the US in April, is accused of aiding a wider conspiracy involving David Headley and Pakistan’s ISI. The Patiala House Court extended his judicial custody till August 13 and will hear the charge sheet that day.

The court will also hear Rana’s plea for regular phone contact with family on July 15. The supplementary charge sheet includes procedural documents like arrest and seizure memos. NIA cited Rana’s non-cooperation during interrogation and recently collected his voice and handwriting samples as part of the ongoing investigation.

Elon Musk’s Starlink has received the final regulatory approval to offer satellite-based broadband services in India, with space regulator IN-SPACe authorising its Gen 1 low-earth orbit constellation of 4,408 satellites. This clears the way for Starlink to become the third player, after Eutelsat OneWeb and Jio-SES, to offer commercial satcom services in the country.

Starlink, which got its satellite permit last month, is now expected to receive trial spectrum from the telecom department to validate security compliance. India’s space economy is projected to reach $44 billion by 2033, with satcom alone pegged at $1 billion annually. Other global players, including Amazon’s Project Kuiper and Globalstar, are still awaiting Indian approvals.

US Visa Fees to Rise Sharply with New $250 ‘Integrity Fee’

Starting 2026, all US nonimmigrant visa applicants, including tourists, students, and workers, will pay a new $250 “Visa Integrity Fee,” raising total application costs to $472 (about Rs 40,000) for Indian travellers. This marks a 2.5x jump in tourist visa fees, factoring in the added I-94 and ESTA charges.

Introduced under Trump’s new Omnibus Act, the annual inflation-adjusted fee will act as a refundable security deposit, reclaimable only upon timely, lawful departure. Experts warn this could deter new applicants and increase costs for tech firms relying on US-bound talent. Only diplomatic visas are exempt. Applicants are advised to apply before 2026 to avoid the higher cost burden.

Trump Slaps 50 Per Cent Tariff On Brazil Amid Bolsonaro Trial Row

Donald Trump has imposed a steep 50 per cent tariff on Brazilian steel, citing “insidious attacks on free elections” in response to Brazil’s prosecution of former President Jair Bolsonaro, a close ideological ally. In a letter to Brazilian President Lula da Silva, Trump called the trial an “international disgrace” and echoed claims of political persecution, drawing parallels to his own legal troubles.

Brazil, the second-largest exporter of steel to the US, has threatened reciprocal measures under its Law of Economic Reciprocity. The move comes as BRICS nations, meeting in Brazil, condemned Trump’s tariffs and his strike on Iran, prompting Trump to threaten more duties on all BRICS members.

From The States

No INDIA Bloc In Maharashtra Civic Polls

Shiv Sena (UBT) leader Sanjay Raut said there will be no INDIA bloc arrangement in Maharashtra’s upcoming civic polls, including in Mumbai. Instead, he said public pressure is mounting for a Sena (UBT)–MNS alliance after the cousins reunited to oppose the BJP’s alleged “Hindi imposition.”

Raut said INDIA bloc was meant only for Lok Sabha and Assembly polls, and that Congress may contest civic elections separately. The Sena–MNS alliance could contest in key cities like Thane, Navi Mumbai and Nasik, signalling a return to Marathi manoos politics and the Bal Thackeray-era street mobilisation strategy to counter the BJP in urban Maharashtra.

A Day Before SC Hearing, EC Says 57 Per Cent Of Bihar Forms Collected

A day before the Supreme Court hears petitions challenging the Special Intensive Revision (SIR) of electoral rolls in Bihar, the Election Commission on Wednesday said it has collected 57.48 per cent of enumeration forms. Of the 7.9 crore voters in the state, the EC has received over 4.53 crore forms in the last 15 days. Nearly 98 per cent of forms have already been distributed to electors.

With 16 days still left before the July 25 deadline, the EC said it expects to finish the exercise ahead of schedule. In the last 24 hours alone, over 83 lakh forms, 10.52 per cent of the total, were collected. The SC will hear several petitions on Thursday.

You’re all caught up—until next time.