Morning Brief: India Calls Out US 'Religious Freedom' Body’s Smear Campaign Against R&AW; PM Modi Writes To Bangladesh’s Yunus; Indian Firms’ Foreign Borrowing Hits 6-Year High; And More

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India Calls US 'Religious Freedom' Agency's Smear Campaign Against R&AW

India has hit back at the US Commission on International Religious Freedom (USCIRF), calling it an "entity of concern" for its repeated "biased and politically motivated assessments" and misrepresentation of facts. The sharp rebuttal came after the panel’s latest report accused India of worsening treatment of minorities and even recommended sanctions against R&AW over alleged "assassination" plots targeting Khalistani extremists. Dismissing the report as agenda-driven, India said the USCIRF has a track record of distorting isolated incidents to attack India's multicultural society. Asserting that India does not expect the panel to acknowledge its pluralistic reality, New Delhi made it clear that such attempts to undermine the country’s global standing will fail. Despite the USCIRF’s recommendations, it remains unlikely that the US government will act against R&AW, as the panel’s views hold no weight.

PM Modi Writes To Bangladesh's Yunus, Makes 'Liberation War' Reference

Prime Minister Narendra Modi wrote to Bangladesh's chief adviser Muhammad Yunus on Bangladesh National Day, emphasising mutual sensitivity in bilateral ties ahead of their expected meeting at the BIMSTEC summit in Thailand. Modi highlighted the shared sacrifices of the 1971 Liberation War as the foundation of India-Bangladesh relations, even as Yunus’s interim government has pushed through “reforms” in history books, altering the narrative around the war to align with Islamist views. While Dhaka has sought a bilateral meeting, India remains non-committal, with sources indicating that Modi’s engagements on the summit's sidelines will be announced later. The cautious stance follows Bangladesh’s recent posturing on sensitive issues, including the protection of minorities and the future of ousted PM Sheikh Hasina. 

Indian Firms’ Foreign Borrowing Hits 6-Year High

Indian companies' external commercial borrowings (ECBs) hit a six-year high of $47.3 billion in the first ten months of FY25, driven by NBFCs. The rupee’s volatility and rising global interest rates are increasing repayment costs. NBFCs accounted for 44 per cent of ECBs at $21 billion, up from 25 per cent in FY24, as domestic liquidity tightened. Corporate service sector borrowings nearly tripled, while manufacturing and infrastructure saw a slight dip. With global rate cuts on hold, borrowing costs are set to rise further. The surge comes despite the rupee depreciating 2.7 per cent over the past year, making dollar-denominated repayments costlier. RBI’s restrictions on bank lending to NBFCs have further pushed companies to seek funds overseas.

Other Developments

Police Inspects Justice Varma’s Home As Probe Continues

Amid the controversy over the discovery of cash during a fire at Justice Yashwant Varma’s New Delhi residence on March 14, a police team visited the house on Wednesday and reviewed CCTV footage. Led by DCP Devesh Mahla, the team spent nearly two hours at the 30, Tughlak Crescent bungalow, inspecting the store room where the fire started and the lawn where charred items were placed. The site has been preserved under court supervision, and police spoke to Justice Varma’s family and staff, including his personal assistant who first reported the fire. Although police had initially recorded the incident in a daily diary entry, they were denied entry to the house the following morning by security personnel. Investigators suspect a short circuit as the likely cause of the fire.

Toyota Kirloskar First Component Maker To Secure Auto PLI

Toyota Kirloskar has become the first component manufacturer and fourth overall company to receive incentives under India's Rs 25,938-crore Auto PLI scheme, the heavy industries ministry announced. It joins Tata Motors, Mahindra & Mahindra, and Ola Electric in securing benefits under the scheme, which aims to boost domestic auto manufacturing. The company received approval for two trans-axles for electric vehicles in 2024, but the exact incentive amount remains undisclosed. The ministry noted that total disbursements under the scheme for FY25 stand at Rs 321.99 crore, with the first incentives granted in January. Despite its intent to promote zero-emission vehicle components, the PLI Auto scheme has seen slow disbursements so far.

Trump Imposes 25 Per Cent Tariff On Imported Cars

US President Donald Trump has announced a 25 per cent tariff on imported cars and car parts, set to take effect from 2 April for vehicles and May or later for parts. He claimed the move would boost jobs and investment in the US car industry, but analysts warned it could disrupt production, increase prices, and strain trade relations. The US imports around eight million cars annually, with Mexico, South Korea, Japan, Canada, and Germany among the top suppliers. The tariffs will apply to both finished cars and parts, though imports from Canada and Mexico are temporarily exempt. The decision threatens to upend global car trade and disrupt supply chains involving US-based automakers.

From The States

AIADMK Sets Terms For Alliance With BJP In 2026

AIADMK general secretary E Palaniswami denied alliance talks with the BJP but reports said his meeting with Home Minister Amit Shah focused on conditions for a 2026 tie-up. AIADMK has reportedly insisted that the chief ministerial candidate must be from its ranks, it must have the final say on alliance matters, and the BJP should not interfere in its internal affairs. While the issue of BJP’s support for AIADMK rebels T T V Dhinakaran and O Panneerselvam was not raised, the party has made it clear it will not take them back. Despite strong electoral arithmetic, party leaders admit that AIADMK-BJP political chemistry remains a challenge.

Karnataka BJP Rift Widens As Yatnal Expelled

The BJP has expelled Karnataka leader Basangouda Patil Yatnal for six years over "indiscipline" and repeated attacks on state party chief B Y Vijayendra. The move, seen as a boost for Vijayendra’s leadership, follows two show-cause notices issued to Yatnal in the past three months. Yatnal, a vocal critic of Vijayendra and his father B S Yediyurappa, accused the BJP of punishing him for opposing dynasty politics and corruption. Vijayendra defended the expulsion, stating that the party priorities discipline. The feud between Yatnal and Vijayendra also reflects broader tensions within the BJP’s Karnataka unit, particularly between Yediyurappa’s camp and BJP national general secretary B L Santhosh, a report in the Indian Express said.

Yogi Backs Maharashtra's Plan For Shivaji Memorial In Agra

Uttar Pradesh Chief Minister Yogi Adityanath on Wednesday backed the Maharashtra government’s proposal for a Chhatrapati Shivaji memorial in Agra and announced his own government’s plan for a grand tribute to the Maratha warrior. He questioned the Mughal connection to Agra, asserting that Shivaji is central to the city’s identity and highlighting his government's renaming of the Mughal Museum in his honor. Adityanath framed the move as part of the BJP’s efforts to reclaim historical narratives, contrasting it with previous governments that he accused of prioritizing Mughal heritage over development.

You’re all caught up—until next time.