Morning Brief: ‘Hidden’ Chinese Ship Maps Seafloor Near A&N Islands; Govt Pushing DRDO To Decide Jet Engine Partner For AMCA; Trump Hints At New Russia Sanctions; And More

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‘Hidden’ Chinese Ship Maps Seafloor Near A&N Islands

A Chinese research vessel operated secretly in the Bay of Bengal near Indian waters, switching off its Automatic Identification System (AIS) to avoid detection, according to a report by French satellite firm Unseenlabs, The Economic Times has reported. The vessel, tracked using its unique RF signature, appeared to be mapping the seafloor and studying acoustic conditions to identify submarine transit routes, critical for surveillance and anti-submarine warfare operations targeting Indian and US navies.

Although it stayed in international waters, the ET report says it operated just 120 nautical miles from Indian "military zones". During a 16-day radio-frequency (RF) survey, the French satellite firm found that 9.6 per cent of 1,897 ships in the area had no active AIS, raising concerns about covert activity in the region.

Govt Pushing DRDO To Decide Jet Engine Partner For AMCA

The government is pushing the Defence Research and Development Organisation (DRDO) to decide between Britain’s Rolls-Royce and France’s Safran for co-developing a jet engine for India’s fifth-generation stealth fighter, the Advanced Medium Combat Aircraft (AMCA). A Cabinet note is being prepared to formalise the project, officials said.

Both firms have offered full transfer of technology and intellectual property rights to work with DRDO’s Gas Turbine Research Establishment in Bengaluru. The new engine, with 110–130 kN thrust, is critical for the AMCA’s stealth and supercruise features. While initial AMCA prototypes will use imported GE F414 engines, the indigenous engine is expected to power the Mk2 variant, targeted for induction by 2035.

Trump Hints At New Russia Sanctions

US President Donald Trump is considering backing a bipartisan Senate bill to impose new sanctions on countries purchasing Russian oil, amid mounting appeals from European leaders for stronger pressure on Moscow. Officials say leaders including German Chancellor Friedrich Merz privately urged Trump to consider economic measures as a path to negotiations, drawing parallels with his firm stance on Iran.

The move comes as Trump expresses growing dissatisfaction with the course of the Ukraine conflict and explores options short of military escalation. The proposed legislation, led by Senators Lindsey Graham and Richard Blumenthal, aims to tighten global restrictions on Russian oil revenues. While cautious in tone, Trump’s shift could align the US more closely with European efforts to end the war.

Other Developments

Defence Stocks Slide After Op Sindoor–Fuelled Surge

Defence stocks fell sharply on Thursday (10 July) amid profit booking and easing geopolitical tensions. The Nifty India Defence Index dropped 2 per cent, with 16 of its 18 constituents in the red. Bharat Dynamics led the decline, falling 4.8 per cent after Motilal Oswal gave it a ‘neutral’ rating, citing rich valuations. Analysts say defence stocks are trading at stretched valuations, nearly 60 times price-to-earnings, and any growth slowdown could trigger further declines.

Despite a 42 per cent three-month rally, fund managers caution against overexuberance, suggesting a buy-on-dips approach. With few major triggers expected this year, performance will now hinge on timely order execution and the pace of export growth over the medium term.

India-US Trade Deal Talks to Continue As Tariff Deadline Extended

Talks for an India-US trade deal will resume this month after missing the 9 July deadline, a top Indian official confirmed. With the US deferring reciprocal tariffs on Indian goods to 1 August, India’s negotiating team is set to return to Washington to resolve contentious issues, especially in agriculture and dairy.

India has not yet received a formal tariff letter from the US, unlike 21 other countries, but officials believe one could arrive soon. If no interim deal is reached, a 26 per cent tariff may be applied. Commerce Minister Piyush Goyal stressed that India won’t rush into a deal, saying any agreement must serve national interest, not timelines. Trump’s trade strategy has intensified pressure on partner countries.

ONDC Plans Food Delivery Push With New Subsidy Scheme

The government-backed Open Network for Digital Commerce (ONDC) is planning to offer Rs 100–150 crore in incentives to food delivery firms on its platform to boost order volumes and revive restaurant participation, according to sources. If cleared, the subsidy will allow firms like Magicpin, Paytm, Ola Consumer and Waayu to offer discounts and attract 80–100 million orders over time.

The move marks a shift after ONDC paused subsidies earlier. High commissions from Swiggy and Zomato, which control most of India’s food delivery market, have pushed restaurants to seek alternatives. ONDC charges lower fees and gives access to customer data, but uptake has remained low. Discussions with delivery firms and restaurant groups have been ongoing for over a month.

Trump Slaps 35 Per Cent Tariff On Canada, Warns Of More

US President Donald Trump has announced a steep 35 per cent tariff on Canadian imports starting 1 August, warning that the rate could rise further if Canada retaliates against the move. In a letter to Canadian Prime Minister Mark Carney, Trump justified the move under his "reciprocal tariffs" policy announced earlier this year.

This marks an escalation in Trump’s global trade offensive, which now includes new levies on allies like Japan and South Korea, and a 50 per cent duty on copper. Trump has said that other countries would soon face blanket tariffs of 15–20 per cent. “We’re just setting our tariffs,” he said, signalling a shift away from negotiated trade pacts.

From The States

'Martyrs’ Day' Returns to Kashmir’s Political Calendar

The ruling National Conference and other regional parties in Kashmir have begun preparations to observe "Martyrs’ Day" on 13 July and have requested the administration to make necessary arrangements. However, it remains uncertain whether political leaders will be permitted to pay tributes at the historic Martyrs’ Graveyard in Srinagar’s Khwaja Bazar.

Martyrs’ Day marks the killing of 22 Kashmiris by Dogra forces in 1931. Once an official holiday in J&K, it was removed from the list after the abrogation of Article 370 in 2019. The NC, PDP, and Apni Party have all announced plans to commemorate the day as per tradition, urging peaceful observance.

Siddaramaiah Shuts Door On 50:50 CM Deal

Amid attempts by the Congress high command to de-escalate tensions in Karnataka, CM Siddaramaiah on Thursday (10 July) publicly ruled out any deal to rotate the chief minister’s post with his deputy DK Shivakumar. “There is no 50-50 formula. There is no vacancy for CM,” he said in Delhi, adding Shivakumar had himself acknowledged that.

Both leaders are in the capital for talks but had yet to meet Rahul Gandhi, with Siddaramaiah saying he would seek time. While a rotational pact was floated in 2023 during government formation, Siddaramaiah’s remarks signal resistance. Many in the party believe his comments were aimed as much at the central leadership as at his base in Karnataka.

Tharoor Sets Off Yet Another Round Of Buzz 

Congress MP Shashi Tharoor has sparked fresh debate about his next move in the party with a column sharply criticising the 1975–77 Emergency. He described the suspension of civil liberties, forced sterilisation drives, and judicial compliance as a “dark period” with clear lessons for today’s political climate.

Tharoor’s remarks come amid BJP attacks on Congress during the Emergency’s 50th anniversary, and Congress countering with allegations of an “undeclared Emergency” under the Modi government. Tharoor wrote that centralised executive power poses risks to democracy, drawing attention to Sanjay Gandhi’s controversial role. His comments, seen as bold within the party, are notable at a time when most Congress leaders steer clear of revisiting the Emergency.

Preparations Begin In Bengal For Voter Roll Overhaul

West Bengal’s election machinery is gearing up for a Special Intensive Revision (SIR) of electoral rolls, likely to begin in early August, even though no formal order has been issued by the Election Commission. The state CEO’s office is filling Booth Level Officer posts and finalising polling station details to be ready once the process is notified.

The exercise follows a similar rollout in Bihar and may conclude by October-end. Chief Minister Mamata Banerjee has alleged political motives behind the move, warning that Bengal is “the next target.” The last major roll revision in Bengal was in 2002, which saw over 28 lakh names deleted.

Also Read: Revision Of Electoral Rolls Could Spell Disaster For Trinamool

You’re all caught up—until next time.