Morning Brief: Rs 81,000 Crore Nicobar Project Reaches Another Milestone; Indian Electronics Firms Scrap China Joint Venture Plans; Trump Rants About BRICS Again; And More

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India’s Electronics Firms Sidestep China As PLI Deadline Nears

Indian electronics manufacturers are rushing to form joint ventures with South Korean, Taiwanese, and Japanese firms ahead of the July deadline for the government’s Rs 22,919 crore electronics component manufacturing scheme. The shift away from Chinese partnerships stems from regulatory delays under Press Note 3 — a 2020 policy requiring government clearance for any investment from countries sharing a land border with India — as well as growing tensions over trade restrictions like China’s curbs on rare earth exports, tunnel boring machines and speciality fertilisers.

Though China leads in component manufacturing, companies say aligning with non-Chinese partners avoids approval bottlenecks that could derail investment timelines and impact subsidy payouts. Several firms are finalising technical alliances and minority stake deals to meet local value addition targets and integrate more deeply into global supply chains. The scheme is expected to generate Rs 59,350 crore in investment.

NGT Gets Sealed Report On Nicobar Project 

The Centre on Monday (7 July) submitted a sealed report of the high-powered committee (HPC) reviewing green clearances for the Rs 81,000 crore Great Nicobar Island mega infrastructure project to the National Green Tribunal. The environment ministry, citing national security, indicated the report is unlikely to be made public.

Spread across 16,610 hectares, the project includes a container transshipment port, a dual-use military-civil airport, a township, and a 450 MVA gas and solar power plant. Located barely 170 km from the Strait of Malacca, a vital global shipping lane, the project is seen as central to India’s strategy to counter China’s growing maritime presence in the Indo-Pacific. The planned infrastructure is intended to position Great Nicobar as a logistics and naval hub, enhance India’s ability to monitor critical sea lanes, and provide forward-operating military capability in the region.

Trump Rants Against BRICS Again, Threatens 10 Per Cent Tariffs

In a fresh outburst against the BRICS bloc, which also includes India, Donald Trump has threatened an additional 10 per cent tariff on any country he claims aligns with what he vaguely termed “anti-American policies.” The president, who has long railed against BRICS for challenging US economic dominance, issued the warning as the group’s summit opened in Rio. He was apparently upset by BRICS criticising rising trade protectionism as a threat to global growth in the context of his tariff wars.

Trump has repeatedly accused BRICS of trying to undermine the US dollar and has threatened punitive tariffs as high as 150 per cent on countries supporting de-dollarisation. Trump’s fixation with the bloc continues even as its cohesion appears mixed, with Xi skipping the summit and Putin appearing via video.

Other Developments

Govt Bans Fertiliser Plant Shutdowns Amid China Export Curbs

The government has barred fertiliser manufacturers from scheduling plant shutdowns in FY26 to avert a urea shortage during the kharif and rabi seasons. The move follows China’s continuing curbs on exports of phosphate and specialty fertilisers, which have disrupted the supply of DAP, India’s second-most used fertiliser, and other high-value crop nutrients.

While urea, DAP, and specialty fertilisers serve different roles, officials say ramping up domestic urea production is essential to cushion the broader supply shock. India already relies heavily on imports to meet its urea needs, and officials fear any disruption could hit farm output. Industry executives, however, warn that skipping planned maintenance could compromise plant efficiency and create risks.

HC Backs Centre’s Ban On Turkish Airport Services Firm

The Delhi High Court has upheld the Centre’s decision to revoke security clearance for Turkish firm Çelebi Airport Services, citing "compelling national security considerations." The court noted that ground handling firms have deep access to sensitive airport zones, making strict vetting essential, especially amid current geopolitical tensions.

Çelebi had challenged the move, alleging violation of natural justice, but the court dismissed this, stating that national security outweighs procedural norms. The government had revoked the clearance shortly after Turkiye condemned India’s strikes on terror camps in Pakistan. The court said that the possibility of espionage or dual-use logistics cannot be ruled out, especially in times of conflict.

China Protests PM Modi’s Birthday Wishes to Dalai Lama

China on Monday lodged a formal protest with India over Prime Minister Narendra Modi’s greetings to the Dalai Lama on his 90th birthday and the presence of senior Indian officials at celebrations in Dharamshala. Chinese foreign ministry spokesperson Mao Ning accused the Dalai Lama of engaging in separatist activities under the “cloak of religion” and urged India to stop “interfering” in China’s internal affairs.

Beijing called on New Delhi to honour past commitments on Tibet, or “Xizang,” and act prudently on matters it considers core to Chinese sovereignty. Modi had praised the Dalai Lama as a symbol of compassion, while ministers Kiren Rijiju, Rajiv Ranjan Singh, and Arunachal CM Pema Khandu attended the celebrations in Dharamshala, underscoring India’s quiet defiance of Beijing’s sensitivities.

From The States

INDI Alliance Preps ‘Bihari Pride’ And Social Justice Pitch

The INDIA bloc in Bihar is preparing a twin-front strategy for the upcoming state elections: a wide-ranging welfare platform and a sharpened regional identity pitch. Alongside promises of monthly allowances, health insurance, and employment schemes, the bloc will invoke “Bihari pride” to counter what it calls “Delhi’s proxy rule” and alleged voter suppression under the ECI’s Special Incentive Revision.

The campaign, led by RJD, Congress, and Left parties, kicks off 9 July with a Patna rally coinciding with a national trade union strike. A joint manifesto will follow later in the year, with some alliance members expected to release separate documents of promises.

RSS Working Quietly To Defuse Manipur Tensions

The RSS on Monday said it is in touch with both Meitei and Kuki groups in Manipur and that conditions are improving. “Some positive news has come in. It may take time, but a solution will be found,” said RSS publicity chief Sunil Ambekar after a national-level meeting attended by Mohan Bhagwat. He said Sangh workers on the ground are facilitating dialogue between the two communities.

The comments come as the Centre holds talks with Meitei civil groups and Kuki militant factions under the Suspension of Operations pact. Ambekar also addressed other issues including the Maharashtra language row and Kerala’s Bharat Mata controversy, while unveiling plans for Sangh’s centenary outreach events across slums and rural mandals.

You’re all caught up—until next time.