Ukraine Foreign Minister Lauds India's 'Active Role' In Peace Talks; Significant Drop In India's IMR Numbers; And More

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Ukraine Foreign Minister Highlights India’s ‘Authoritative Voice And Active Role’ In Peace Talks

Prime Minister Narendra Modi held high-level discussions with top European Union leaders on Thursday. The talks were focussed on expediting the India-EU Free Trade Agreement and addressing the ongoing Ukraine conflict through diplomatic channels.

Modi spoke with European Commission President Ursula von der Leyen and European Council President Antonio Costa. The conversation occurred as EU leaders met in Paris with Ukraine President Volodymyr Zelenskyy to discuss security guarantees. External Affairs Minister S. Jaishankar separately engaged with Ukrainian Foreign Minister Andrii Sybiha, reaffirming "India's support for an early end to this conflict and the establishment of enduring peace."

Sybiha highlighted Ukraine's reliance on "India's authoritative voice and active role in supporting full cessation of hostilities," while briefing his Indian counterpart on battlefield developments and Ukraine's peace initiatives. The ministers agreed to continue discussions during the UN General Assembly in New York. Von der Leyen and Costa acknowledged India's "continued engagement with President Zelenskyy," noting that the Ukraine conflict "carries global security consequences" affecting worldwide economic stability.

The leaders reaffirmed their commitment to conclude India-EU FTA negotiations by end-2025, with EU trade chief Maros Sefcovic expected in New Delhi next week as talks show "rapid progress," according to Commerce Minister Piyush Goyal. Both sides also discussed implementing the India-Middle East-Europe Economic Corridor (IMEEC), a strategic connectivity initiative linking the regions.

Modi extended invitations for an India-EU summit in early 2026, building on February's historic EU College of Commissioners visit to India. 

GST Rate Cuts Expected to Boost GDP by 0.16 per cent, Lower Inflation: Standard Chartered

The Modi government’s GST rationalization announced Wednesday could lift India's GDP by 0.1-0.16 percentage points for FY26 while easing consumer price inflation, according to a Standard Chartered Global Research report.

The research firm estimates the tax cuts will boost GDP based on the government's projected revenue loss of ₹48,000 crore, representing 0.16 per cent of GDP. "The multiplier is usually just under 1," the report states, suggesting GDP growth will match the revenue impact percentage.

However, due to mid-year implementation, this fiscal year will see only half the anticipated benefit, with full impact materializing in FY27. Standard Chartered maintains its FY26 GDP growth forecast at 6.9 per cent, citing potential offsets from uncertain U.S. tariff policies on Indian exports.

The inflation outlook appears more promising, with CPI inflation expected to decline 40-60 basis points annually. Consumer non-durables, which carry higher CPI weightage, have seen significant rate reductions from 12-18 per cent to 5-0 per cent. Specifically, items weighing 5.3 per cent in the CPI basket—including bakery and personal care products—dropped from 18 per cent to 5 per cent GST.

Even partial pass-through of these cuts could reduce headline inflation by 20-25 basis points this year, with larger impacts of up to 60 basis points expected in FY27. This could provide the Reserve Bank space for a 25-basis-point rate cut next year, when Standard Chartered forecasts 4.5 per cent headline inflation.

While fiscal deficit concerns exist due to revenue loss, Standard Chartered notes the government's revenue impact estimate is one-third of expert projections, driven by larger cuts on small-ticket items versus modest reductions on big-ticket purchases.

Other developments

Centre Plans Additional Levy on Tobacco Products After Compensation Cess Ends

The government is planning to impose an additional levy on tobacco products beyond the proposed 40 per cent GST rate once the compensation cess expires, multiple reports citing government officials revealed. 

Currently, tobacco products including cigarettes, pan masala, gutkha, zarda, and bidis face 28 per cent GST plus compensation cess, resulting in total tax incidence ranging from 52-88 per cent. The GST Council decided Wednesday to maintain existing rates until compensation cess liabilities are fully discharged by November-December.

Officials indicated that once the cess expires, an additional levy will maintain current tax levels on these products, though the exact quantum remains undecided. Pan masala, cigarettes, chewing tobacco, unmanufactured tobacco, and bidis will continue under present rates until loan obligations under the compensation cess account are cleared.

The Finance Minister will determine the transition date to revised GST rates approved by the Council for these goods, ensuring no reduction in the overall tax burden on tobacco products.

India's Infant Mortality Rate Drops to Record Low of 25 Deaths Per 1,000 Live Births

India's infant mortality rate has reached a historic low of 25 deaths per 1,000 live births in 2023, marking a significant 37.5 per cent decline from 40 recorded in 2013, according to the Sample Registration System report released by the Registrar General of India.

The dramatic improvement represents an 80 per cent drop from 129 deaths per 1,000 live births recorded in 1971, highlighting substantial progress in healthcare accessibility and child welfare over five decades. Infant mortality rate serves as a crucial public health indicator measuring deaths of children under one year of age.

Regional disparities persist, with Madhya Pradesh, Chhattisgarh, and Uttar Pradesh reporting the highest IMR of 37, while Manipur achieved the lowest rate of just 3 deaths per 1,000 births. Kerala emerged as the only large state with single-digit IMR at 5, ranking second nationally after Manipur.

Rural areas witnessed IMR decline from 44 to 28, while urban areas improved from 27 to 18, representing decadal drops of 36 per cent and 33 per cent respectively. The report also documented declining birth and death rates nationwide. Birth rate dropped from 36.9 in 1971 to 18.4 in 2023, with Bihar recording the highest at 25.8 and Andaman and Nicobar Islands the lowest at 10.1.

Death rate similarly declined from 14.9 in 1971 to 6.4 in 2023, with Chandigarh reporting the lowest at 4 and Chhattisgarh the highest at 8.3, reflecting improved healthcare infrastructure and living standards across the country.

From The States

Maharashtra Deputy CM Ajit Pawar Under Fire for Allegedly Threatening IPS Officer Over Illegal Mining Crackdown

Maharashtra Deputy Chief Minister Ajit Pawar is facing mounting criticism after a video surfaced on social media showing him allegedly pressuring a woman IPS officer to stop action against illegal soil excavation.

The controversy stems from an incident that took place two days ago in Kurdu village, Karmala taluka, Solapur district, where Sub-Divisional Police Officer Anjana Krishna had arrived to investigate complaints of illegal 'murrum' excavation—a material commonly used in road construction.

According to reports, the situation escalated when villagers confronted officials at the excavation site, prompting local Nationalist Congress Party (NCP) workers to step in. Video footage shows party worker Baba Jagtap calling a person believed to be Pawar and handing his phone to Krishna.

In the widely circulated clip, Krishna can be heard questioning the authenticity of the call: "I can understand what you are saying, but I am unable to figure out if I am talking to the deputy Chief Minister. Can you please call me on my number directly?"

The IPS officer's response angered the person alleged to be Pawar, who issued what appeared to be threats against her. "Ek min, main tere upar action lunga (I will take action against you). I am myself talking to you and you are asking me to call you directly. You want to see me. Take my number and make a WhatsApp call. Itna aapko daring hua hai kya (Do you really have that much daring)?" the voice can be heard in the recording.

Karnataka Religious Leaders Seek NIA Probe Into Dharmasthala Case, Meet Amit Shah

Pontiffs from various Karnataka Maths under 'Sanatan Sant Niyoga' met Union Home Minister Amit Shah in New Delhi, demanding a National Investigation Agency probe into the Dharmasthala controversy.

A member of the group, Rajashekarananda Swamiji, told the media that Shah "assured the delegation that all developments were being closely monitored and that a decision would follow a Cabinet meeting."

"We apprised the Union Home Minister of Dharmasthala, and are delighted with his assurance," the pontiff said, alleging a "larger ploy by some well-connected vested interests inside India and outside to bring bad name to the Hindu temples."

Shah reportedly indicated plans for new legislation against misinformation targeting religious institutions and mentioned Enforcement Directorate investigations into foreign funding of YouTubers spreading misinformation.

Vasundhara Raje's Private Meeting With RSS Chief Mohan Bhagwat Sparks Political Speculation

Former Rajasthan Chief Minister Vasundhara Raje's closed-door meeting with Rashtriya Swayamsevak Sangh (RSS) chief Mohan Bhagwat in Jodhpur has triggered intense political speculation.

The meeting took place during Raje's two-day tour of Jodhpur and the discussion lasted approximately 20 minutes.

Details of what transpired during the meeting remain unknown, as Raje's close associates were notably absent from the meeting room.

The encounter comes amid heightened attention on Raje following her recent controversial "exile" remarks at a katha (sermon) in Dholpur. "Exile comes in everyone's life, but it's not permanent. It comes and goes; one must have composure," she had said, sparking significant political debate.

You’re all caught up. Until next time.