Morning Brief: PM Modi Set For First China Visit Since 2019; PMO Clears GST Revamp Plan; India's iPhone Exports Jump 53 Per Cent; And More

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

PM Modi Set For First China Visit Since 2019

Prime Minister Narendra Modi is expected to travel to Japan in late August for the annual summit and to China in early September for the Shanghai Cooperation Organisation (SCO) summit, amid renewed diplomatic efforts to stabilise India-China ties. If confirmed, this would be Modi’s first visit to China since 2019 and a potential occasion for a bilateral meeting with President Xi Jinping.

Modi and Xi had last met at the BRICS summit in Kazan, where they initiated steps to improve strained ties following the 2020 Galwan clashes. Modi is also likely to meet other SCO leaders, including Russia’s President. Ahead of the visit, EAM S Jaishankar raised trade barriers with Wang Yi during talks in Beijing on Monday.

PMO Clears GST Revamp Plan

The Prime Minister's Office (PMO) has cleared a proposal to revamp the GST structure, with the finance ministry preparing to present it at the GST Council’s August meeting. Inter-ministerial consultations are underway, and states will be consulted next to build consensus. The reform includes procedural simplification and restructuring of tax slabs to ease compliance. One key change under consideration is scrapping the 12 per cent slab and shifting items to the 5 per cent or 18 per cent categories.

The revamp will also address complexities flagged by industry, aiming to streamline filing and reduce disputes. The Council may also revisit the use of the compensation cess fund. Separate proposals on slab consolidation and GST law changes are expected.

India's iPhone Exports Jump 53 Per Cent

India exported over 23.9 million iPhones in the first half of 2025, marking a 53 per cent surge from the same period last year, with nearly 78 per cent of those shipments, about 18.6 million units, headed to the US, data from Canalys (Omdia) shows.

Despite President Trump’s push for Apple to shift production to the US, June alone saw 88 per cent of India’s iPhone exports going to America, up from 46 per cent in June 2024. Foxconn and Tata Group accounted for 88 per cent of total exports. Local factories are now assembling Pro and Pro Max models and preparing for iPhone 17 production, positioning India as a critical node in Apple’s global supply chain.

Other Developments

SC Flags Regionalism As Threat To National Unity

The Supreme Court on Tuesday said that political parties promoting regionalism pose as much threat to India’s unity and integrity as those promoting communalism. A bench of Justices Surya Kant and Joymalya Bagchi made the remark while dismissing a plea seeking cancellation of the registration of the All India Majlis-e-Ittehadul Muslimeen (AIMIM), saying it would not target a single party when many engage in such practices.

The court said the issue could be examined only through a neutral petition addressing broader electoral reforms. It found no violation in AIMIM’s constitution and said that protected religious laws can be propagated by political parties. Candidates, however, face disqualification if they seek votes on religious grounds.

RBI May Consider Rate Cut As Inflation Undershoots Forecast

Malhotra said the central bank’s neutral stance allows flexibility, and that the MPC will assess fresh data before taking a call. He reiterated the RBI’s data-dependent approach, stressing that inflation composition and trajectory matter more than headline numbers. India’s neutral real rate, he added, is estimated at 1.4–1.9 per cent.

NATO Threatens India, China, Brazil Over Russia Trade

NATO Chief Mark Rutte and US Senators have warned that sanctions targeting Russia could severely affect India, China, and Brazil if they continue buying Russian oil and gas. Rutte echoed US President Donald Trump's call for 100 per cent secondary tariffs on nations trading with Moscow unless a peace deal is reached within 50 days. US Senator are pushing a bipartisan bill proposing even harsher penalties of up to 500 per cent tariffs on countries "aiding Russia’s war".

India, named directly in the sanctions debate, has raised its concerns with US lawmakers. External Affairs Minister S Jaishankar has engaged with US Senator supporting the move and explained its strategic energy and security interests. He added that India will deal with the issue if and when it materialises.

Nvidia Cleared To Sell AI Chips To China

The US has reversed restrictions on Nvidia’s AI chip sales to China, three months after imposing a ban. Nvidia announced on Monday that the Trump administration approved sales of its China-specific H20 chip, though individual licences will still be needed. The decision followed Nvidia CEO Jensen Huang’s meeting with President Trump last week, after months of lobbying to reopen the Chinese market, which could generate up to \$15 billion in sales this fiscal year.

The move eases pressure on Chinese tech firms and marks a retreat from a key US policy aimed at limiting Beijing’s AI capabilities. The earlier ban was driven by concerns over military use of AI and safeguarding America’s lead in the sector.

From The States

Andhra Invites Aerospace Firms After Karnataka Scraps Land Plan

Andhra Pradesh has seized the moment after Karnataka scrapped a major land acquisition plan for an aerospace park near Bengaluru. State minister Nara Lokesh publicly invited aerospace firms to relocate to Andhra, offering over 8,000 acres of ready land “just outside Bengaluru”, a pointed jab at its neighbour.

Karnataka CM Siddaramaiah on Monday withdrew the notification to acquire 1,777 acres in Devanahalli amid farmer protests. Andhra, which is targeting Rs 50,000 crore–Rs 1 lakh crore in aerospace investments over five years, used the opportunity to pitch its incentives and infrastructure. BJP MP Tejasvi Surya backed Lokesh’s post, saying Karnataka should learn from Andhra’s approach to attract business.

Kerala Posts Highest Retail Inflation In June

New Delhi: Kerala recorded the highest retail inflation rate among all states and Union territories in June, according to the latest official data. The southern state reported a consumer price inflation of 6.7 per cent, significantly above the national average of 2.1 per cent. It was followed by Punjab at 4.7 per cent and Jammu & Kashmir at 4.4 per cent.

At the other end of the spectrum, Telangana saw the lowest retail inflation at -0.9 per cent, indicating a fall in consumer prices. Andhra Pradesh registered zero inflation, while Odisha recorded 0.5 per cent. Of the 22 states and UTs for which data was released, 12 reported inflation below the national average. Kerala has consistently remained among the top inflation-hit states in recent months.

You’re all caught up—until next time.