đź“°IPO Galore | Daily India Briefing

Three stories on Indian markets that you can't miss.

In partnership with

Israel becomes first OECD country to sign investment pact with India. India’s chief economic advisor says Trump’s tariffs knock 0.5 percent off India’s growth. India’s finance minister raises concerns about rising bond yields.

If you have any questions about India, fill out this form or reach out to Shreyas at [email protected]

Macro

Equities

Alts

Policy

Become the go-to AI expert in 30 days

AI keeps coming up at work, but you still don't get it?

That's exactly why 1M+ professionals working at Google, Meta, and OpenAI read Superhuman AI daily.

Here's what you get:

  • Daily AI news that matters for your career - Filtered from 1000s of sources so you know what affects your industry.

  • Step-by-step tutorials you can use immediately - Real prompts and workflows that solve actual business problems.

  • New AI tools tested and reviewed - We try everything to deliver tools that drive real results.

  • All in just 3 minutes a day

Reach out to [email protected] to reach our audience and see your advertisement here.

1. Israel Becomes First OECD Country to Sign Investment Pact with India

Finance Minister Sitharaman

The deal, signed in New Delhi by Indian Finance Minister Nirmala Sitharaman and her Israeli counterpart Bezalel Smotrich, is designed to protect and promote mutual investments while expanding opportunities in both markets. Israel’s Finance Ministry highlighted that the pact makes Israel the first member of the Organisation for Economic Co-operation and Development (OECD) to conclude such an agreement with India, underscoring the strategic depth of their financial relationship.

The deal is about making sure both sides follow fair rules for investors. That means protecting them from having their assets unfairly taken, keeping regulations transparent, treating everyone equally, and laying out clear steps for compensation if losses happen.

Economic ties between the countries have been steadily strengthening. In 2024, Israel’s imports of goods and services from India, excluding diamonds, totaled $1.6 billion (₹140.8 billion), while exports to India reached $3.1 billion (₹272.8 billion). Cooperation already spans defense, technology, and civilian infrastructure, most notably the Adani Group’s acquisition of a majority stake in Haifa Port, one of Israel’s largest.

The agreement comes at a politically sensitive moment for Israel, as some European nations weigh sanctions over its war in Gaza. For India, the deal reflects Modi’s broader push to diversify trade partnerships amid tariff-related tensions with the U.S. and to secure stable access to global markets.

Both sides see the accord as a framework that will not only encourage business but also reinforce their longstanding strategic ties, ranging from security to innovation.

2. Trump’s Tariffs Seen Knocking 0.5 percent Off India’s Growth

India’s chief economic advisor V. Anantha Nageswaran

India’s chief economic adviser, V. Anantha Nageswaran, warned that Trump’s steep tariffs could shave half a percentage point off the country’s GDP this year, underscoring the mounting risks to Asia’s third-largest economy.

The 50 percent duties, which Trump imposed in August to punish India for its Russian oil purchases, are the highest in the world (shared only with Brazil) and threaten to make Indian goods uncompetitive against rivals like Vietnam and Bangladesh. Labor-intensive industries such as textiles, gems, and jewelry are expected to bear the brunt, putting exports and jobs at risk.

“If the additional penal tariff is short-lived, the impact may be contained at 0.5 percent to 0.6 percent of GDP,” Nageswaran told Bloomberg TV. “But if it continues into the next fiscal year, the risk will be far larger.”

Despite the headwinds, Nageswaran stuck to the government’s growth forecast of 6.3 percent–6.8 percent for the year ending March 2026, pointing to strong 7.8 percent growth in the April–June quarter, recent tax cuts, and the lowest inflation in eight years. He said the goods and services tax overhaul, which lowered levies on most consumer items last week, could itself add 0.2–0.3 percentage points to growth.

3. India’s Finance Minister Raises Concerns about Rising Bond Yields

Finance Minister Nirmala Sitharaman said on Friday that surging bond yields were making government borrowing increasingly expensive, despite low interest rates.

India’s benchmark 10-year bond yield jumped 19 basis points in August, the steepest monthly rise in three years, and settled at 6.4651 percent on Friday. The RBI has cut its repo rate by 100 basis points in 2025 and held it steady at 5.50 percent last month.

“It is not affordable at the time when interest rates are otherwise low, bond yields becoming unsustainably high has a big bearing on the government,” Sitharaman told CNN-News18.

The comments come days after New Delhi slashed taxes on hundreds of consumer items, a move expected to cost $5.5 billion (₹480 billion) in revenue. That has fueled market worries about whether the government can meet its fiscal deficit target.

Sitharaman reaffirmed, however, that the deficit would be contained at 4.4 percent of GDP this year without cutting back on the planned $127 billion (₹11.21 trillion) in infrastructure spending. “Capital expenditure will not come down. It will be completed as stated in the Budget,” she said.

She also said the stake sale in IDBI Bank would conclude this financial year, with bids likely to open between October and December.

See you tomorrow.

Written by Eshaan Chanda & Yash Tibrewal. Edited by Shreyas Sinha.

Sponsor the next newsletter to reach tens of thousands of U.S.-based business-savvy professionals. Reach out to [email protected].

Could your business use expert insights to power growth in India? Reach out to [email protected] for a free introductory call.

Disclaimer: This is not financial advice or recommendation for any investment. The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.