Morning Brief: India To Build Fifth-Gen Fighter Engine With France; Delhi Rebukes NATO After Sanctions Threat; Market Calm Pushes Volatility Index To 15-Month Low; And More

Kick-start your morning with Swarajya’s Morning Brief – your news fix, curated for clarity and insight.

India To Build 5th-Gen Fighter Engine With France

A defence review has backed a proposal to partner with France on co-developing a 120kN fighter jet engine for India’s next-generation aircraft, tipping the balance in a long-running contest with the UK, The Economic Times has reported. The recommendation comes after detailed technical evaluations and consultations with stakeholders over the Rs 61,000 crore programme.

According to the report, officials said France’s Safran emerged as the preferred choice due to its offer of full technology transfer and a development roadmap aligned with the timeline for the Advanced Medium Combat Aircraft (AMCA). While initial AMCA units may still use US-made GE 414 engines, the indigenous engine project is now set to move forward, potentially reducing India’s dependence on foreign propulsion systems over the next decade.

India Hits Back After NATO Warns Of Sanctions

India on Thursday issued a stern rebuttal to NATO Secretary‑General Mark Rutte’s public warning that India, China, and Brazil could face 100 per cent secondary sanctions for continuing economic ties with Russia. MEA spokesperson Randhir Jaiswal accused NATO of double standards, pointing out that many Western nations still import Russian energy despite criticising New Delhi.

The MEA reaffirmed that safeguarding India’s energy security remained an "overriding priority," guided by market realities and sovereign choice. Responding to Rutte, who urged India to pressure Putin into Ukraine peace talks or risk economic fallout, New Delhi reaffirmed its right to trade based on national interest.

India Volatility Index Falls To 15-Month Low 

India’s Volatility Index (VIX) fell to a 15-month low of 11.2 on Thursday, reflecting subdued market sentiment amid limited domestic triggers and declining derivatives activity. The index has fallen nearly 22 per cent over the past month, tracking similar declines in the US VIX. Analysts attribute the drop to narrow trading ranges, reduced trader participation in far out-of-the-money options, and muted hedging activity.

Experts caution that while a low VIX may appear reassuring, it can also signal market complacency. “Such low-volatility phases are often precursors to sharp moves,” said Dhupesh Dhameja of Samco Securities. With much of the earnings season priced in and global cues muted, traders are watching for any spike in VIX as a potential warning sign.

Other Developments

US Designates Lashkar Proxy TRF As Terrorist Group

In a setback for Pakistan Army, the US has designated The Resistance Front (TRF), a proxy of Pakistan-based Lashkar-e-Taiba, as a foreign terrorist organisation. The move comes in response to the 22 April Pahalgam attack in Jammu and Kashmir that killed 26 civilians, the worst such strike since 2008. TRF had initially claimed responsibility before retracting the statement under pressure from Pakistan Army.

US Secretary of State Marco Rubio said the designation honours President Trump’s call for justice and reflects Washington’s commitment to counterterrorism. India welcomed the decision, calling it another step forward in strong bilateral cooperation. The National Investigation Agency has named TRF chief Sheikh Sajjad Gul as the mastermind.

Army To Induct Two Regiments Of Akash Prime For China Border

Akash Prime is an enhanced version of the Akash system already in service, with improvements including new seekers, radars, and a 360° engagement capability. The Army is procuring the missiles under an Rs 8,160-crore deal signed in 2023. These new regiments will join two existing ones already deployed for similar air defence roles.

India Yet to Agree to Russia-China Trilateral Revival

Amid renewed efforts by Russia and China to revive the dormant Russia-India-China (RIC) trilateral mechanism, Indian government sources said no meeting has been scheduled or agreed to as yet. “There are no discussions underway on its scheduling,” a senior official told reporters, even as Moscow and Beijing have publicly voiced interest in restarting the format.

The Ministry of External Affairs was non-committal, with spokesperson Randhir Jaiswal stating that a meeting would be planned “when mutually convenient.” Russia’s foreign and deputy foreign ministers have both called for resumption of the trilateral, which last met before the 2020 India-China border standoff. China has also expressed support, saying RIC cooperation serves global stability, but Delhi remains cautious.

From The States

INDIA Bloc Meet Saturday, But Trinamool and AAP May Skip

The INDIA bloc will hold a meeting of its key organisational leaders on Saturday (19 July) to chalk out a joint strategy for the monsoon session of Parliament. Top of the agenda will be opposition to the Election Commission’s special voter list revision in Bihar.

However, key allies Trinamool Congress and Aam Aadmi Party are expected to skip the meeting. The Trinamool cited preparations for its July 21 Martyrs Day rally, while AAP has cooled ties with Congress after recent electoral setbacks. The meeting, initially planned at Congress chief Kharge’s residence, will include leaders from SP, DMK, Left, RJD and others. Uddhav Thackeray may join virtually.

Nitish Promises Free Power To 1.67 Crore Bihar Homes

With elections looming, Bihar Chief Minister Nitish Kumar on Thursday promised 125 units of free electricity for every household starting August 1. The move, he said, would benefit 1.67 crore families and cost the exchequer over Rs 3,300 crore this year alone. Solar power systems for homes, free for the poorest, are also part of the state’s new roadmap.

Not to be outdone, Opposition leader Tejashwi Yadav reiterated his promise of 200 free units if voted to power, calling the Nitish-led NDA a “copycat government.” Deputy CM Samrat Choudhary hailed the announcement as a “golden day for Bihar,” with future subsidy costs projected to cross Rs 5,000 crore annually.

Fadnavis Warns of Legal Action Against 'Crypto-Converts'

Maharashtra CM Devendra Fadnavis on Thursday said the state will take legal action against so-called ‘Crypto-Christians’, individuals who secretly convert to Christianity while retaining their Scheduled Caste or tribal identity to access government benefits. He told the legislative council that caste certificates of such individuals would be cancelled and those in jobs or public office would face punishment.

Fadnavis was responding to MLC Amit Gorkhe, who alleged that the practice is common in districts like Nandurbar and Ahmednagar. The CM cited a Supreme Court judgment that SC reservation is only for Hindus and closely aligned faiths like Sikhism and Buddhism. Fadnavis added that a report on a possible anti-conversion law has been submitted and is under government consideration.

You’re all caught up—until next time.