ECONOMY

GST 2.0- The Next-gen reforms

Prime Minister Narendra Modi on August 17, 2025, said the Centre has circulated the draft of the next generation GST reforms among States and sought their cooperation to implement the proposal before Diwali. Prime Minister said the Centre intends to make the GST law simpler and revise tax rates, while bringing the next generation reforms in the GST. The government is also likely to revive the anti-profiteering provisions for a limited period of time to ensure businesses pass on indirect tax benefits to consumers.

Hoping for all the states to corporate in the initiative, the Prime Minister also urged them to complete the process at the earliest.

India's outbound investments surge 67% in FY25, driven by ESG, GIFT City, global tax reforms: EY
India's outbound investments rose sharply by 67.7% to USD 41.6 billion in FY2024-25, up from USD 24.8 billion a year earlier. It highlights that Indian companies are focusing on diversification, prioritising environmental, social, and governance (ESG) aspects, and leveraging technology-led growth to drive their global expansion strategies. The EY report highlights sectoral impacts across IT, energy, pharma, automotive, and hospitality. While intermediary jurisdictions like Singapore, the Netherlands, and Mauritius have long dominated outbound investment structuring, Indian companies are now broadening their horizons. Indian companies are increasingly turning to GIFT City as a strategic gateway for outbound investments, with RBI data showing a 100 per cent surge (from 0.04 USD billion in 2022-23 to 0.81 USD billion in 2024-25) over the past two years.

TECHNOLOGY

Microsoft scales back Chinese access to cyber early warning system

Microsoft said it has scaled back some Chinese companies' access to its early warning system of cybersecurity vulnerabilities following speculations that Beijing was involved in a hacking campaign against the company's widely used SharePoint servers.

The new restrictions come in the wake of July's sweeping hacking attempts against Microsoft SharePoint servers, at least some of which Microsoft and others have blamed on Beijing. That raised suspicions among several cybersecurity experts that there was a leak in the Microsoft Active Protections Program (MAPP), which Microsoft uses to help security vendors worldwide, including in China, to learn about cyber threats before the public so they can better defend against hackers.

Elon Musk unveils new company 'Macrohard' to replicate Microsoft 'purely' with AI
Elon Musk is doubling down on his efforts in the generative AI landscape. On top of his xAI company, which recently acquired X (formerly Twitter) for $33 billion, the billionaire announced plans to build "a purely AI software company" called Macrohard, to rival offerings from competitors like Microsoft.

He says AI can completely replicate the operations of a software company like Microsoft, which produces no physical hardware. Musk's AI chatbot Grok said that Macrohard will offer 'software solutions' such as 'specialized agents for coding, image generation, workflow automation, and more.

ESG

ESMA, EU Environment Agency Tighten Ties on Sustainable Finance Oversight

The European Securities and Markets Authority (ESMA) and the European Environment Agency have signed a memorandum of understanding designed to tighten cooperation in the rapidly expanding field of sustainable finance.

The agreement focuses on bringing environmental data more directly into the European Union's sustainable finance framework, including how it is monitored and enforced. Under the terms, the two agencies will share information and technical expertise while supporting joint training and capacity-building initiatives. They also plan to coordinate national-level regulators and environmental authorities; an effort aimed at smoothing cross-border oversight in a fragmented policy landscape.

China to Impose Absolute Emissions Caps from 2027 for Nationwide Carbon Market
China to roll out absolute carbon emissions caps in key industries starting 2027, shifting from intensity-based measures. By 2030, a nationwide emissions trading scheme (ETS) will be fully established, replacing the current pilot system. Under the new system, companies will still receive a quota of free carbon emissions allowances (CEAs). If they emit beyond their allocation, they must purchase additional allowances; if they come in under, they can sell the surplus.

The regulation also opens participation to banks and financial institutions; a move expected to boost liquidity and strengthen price discovery. Still, experts caution that the system's effectiveness will hinge on reducing the large share of free allowances that have so far limited the market's impact on cutting emissions.

China Launches Green Foreign Debt Financing to Boost Global Capital Flows

China has rolled out a pilot program aimed at channeling global capital into its green economy through foreign debt financing. The initiative, launched by the State Administration of Foreign Exchange (SAFE), will run across 16 provincial-level regions and cities including Beijing, Shanghai, Hebei, and Qingdao. Non-financial enterprises are encouraged to direct cross-border financing funds into qualified green and low-carbon transition projects.

SAFE said the pilot will include supportive policies such as expanding the upper limit on cross-border financing for green investments and simplifying services related to foreign debt. This move signals China's intent to leverage international capital markets to accelerate its decarbonization agenda while strengthening its role in sustainable finance.

BlackRock's GIP Buys 49.99% Stake in Eni's Carbon Capture Business

Eni has signed an agreement to sell a 49.99% stake in its carbon capture, utilization and storage subsidiary, Eni CCUS Holding, to Global Infrastructure Partners (GIP), the infrastructure arm of BlackRock. The transaction gives GIP joint control of the business alongside Eni, pending regulatory approvals.

Eni CCUS Holding was established to consolidate and scale Eni's portfolio of carbon capture and storage projects. The company currently manages the Liverpool Bay and Bacton projects in the UK and the L10 project in the Netherlands. It also holds rights to acquire Eni's 50% stake in the Ravenna CCS development in Italy, with scope to expand further in the medium to long term.

FedEx Expands Electric Delivery Fleet in Hong Kong to Meet Rising Sustainability Demand

FedEx is accelerating its sustainability agenda in Hong Kong with the deployment of six new electric panel vans, furthering its commitment to carbon-neutral global operations by 2040. The vehicles, Mercedes-Benz eVito models, are equipped with a 913-kilogram load capacity and a range of 264 kilometers per charge, optimized for last-mile delivery across high-traffic districts. The new EVs not only cut emissions but also improve operational efficiency through lower running costs and reduced air pollution. FedEx highlighted that Hong Kong consumers are increasingly sustainability-driven, with surveys showing that 73% consider environmental factors when selecting brands, while nearly half (49%) have stopped buying from companies that fail to prioritize sustainability. FedEx aims for a 100% electric pickup and delivery fleet by 2040

INDIA PARTNERSHIPS

Trump's India tariffs take effect

United States President Donald Trumps's 50 percent tariff on India will impact trade worth billions of dollars and risk Washington-Delhi ties. The new rate is one of India's highest tariffs, which will now apply to a range of goods.

The crushing tariff rate will put India at a disadvantage in export competitiveness against China and will undermine the economic ambitions of Prime Minister Narendra Modi to transform the country to a major manufacturing hub.

The Indian pharmaceutical industry has been exempted from immediate tariff increases due to the significance of generic drugs in providing affordable healthcare in the US.

Meanwhile, semiconductors and consumer electronics will also be covered by separate, sector-specific US tariffs. Finally, aluminium and steel products, together with passenger vehicles, will also be subject to tariffs separate from the blanket 50 percent rate.

PM Modi has pledged to protect farmers, cut taxes and push for selfreliance in the wake of tariff hikes. An Indian commerce ministry official mentioned that exporters hit by tariffs would receive financial assistance and other giveaways to diversify into markets like Latin America and the Middle East.

India, China plan to resume trade through Shipki-La in Himachal

China has agreed, in principle, to reopen border trade through the three designated trading points with India - Lipulekh Pass, Shipki-La and Nathu-La.

The trade route, once an offshoot of the ancient Silk Route, had been suspended in 2020 following the Covid-19 outbreak.

According to the State government says Beijing agreed to the proposal during the recent visit of Chinese Foreign Minister Wang Yi to India. Additionally, there has also been a positive response regarding resumption of the Kailash Mansarovar Yatra through Shipki-La.

The Himachal government said it is hopeful that these initiatives will not only revive border trade but also open fresh opportunities for tourism, cultural exchange, and economic development in the state.

India, Philippines announce strategic partnership

At the invitation of the Prime Minister of India, Mr. Narendra Modi, the President of the Republic of the Philippines, Mr. Ferdinand R. Marcos Jr. paid a State Visit to India on 4-8 August 2025 to celebrate the seventy fifth anniversary of the establishment of India-Philippines diplomatic relations. This was followed by bilateral talks between Prime Minister Modi and President Marcos. Thereafter, the leaders witnessed the exchange of bilateral documents.

The two leaders presided over the signing of 13 bilateral agreements, including a declaration on the new strategic partnership and an “action plan” for its implementation up to 2029.

Speaking to the press, Modi described the Philippines as an important partner in India's “Act East Policy” and “Mahagasar” vision, both of which aim to strengthen ties with Southeast Asia, to promote regional stability.

India-Russia Partnership "Steadiest" Since World War II: S Jaishankar

India and Russia on Thursday vowed to expand their bilateral trade in a "balanced" manner and sustain energy cooperation with External Affairs Minister S Jaishankar, underlining the need to "swiftly" address non-tariff barriers and regulatory impediments.

The resolve by the two countries to enhance two-way trade, including by increasing Indian exports to Russia, came amid growing estrangement in ties between India and the US over President Donald Trump's policies on trade and tariffs. The two foreign ministers also deliberated on ways to combat terrorism. In the meeting, Jaishankar and Lavrov reaffirmed the shared commitment of India and Russia to the reform of global governance.

MERGER AND ACQUISITIONS

Mark Zuckerberg's Meta signs $10 billion cloud deal with Google, partners with Midjourney in major AI push

The company has signed a deal with generative AI lab Midjourney, to licence the startup's “aesthetic technology” for the Facebook parent's future products and models. The move signals Meta's push to differentiate its products on visual quality. Generating images from text prompts, Midjourney licenses its tools to users through a subscription model.

To further its AI journey, the Mark Zuckerberg-owned company has reportedly also signed a deal with Google worth over $10 billion. Google's six-year cloud computing deal with Meta Platform is the second big agreement in recent months after the Sundar Pichi-led giant partnered with OpenAI. Meta will be able to access Google Cloud's servers, storage, networking and other services under the agreement.

Serentica Renewables partners with Shanghai Gotion Digital for one of India's largest BESS facilities

Serentica Renewables has partnered with the Shanghai Gotion Digital Energy Tech Co., which is a leading equipment manufacturer for energy storage systems (ESS), to set up one of India's largest Battery Energy Storage System (BESS) projects in Rajasthan.

A leading renewable energy independent power producer (IPP) for the commercial and industrial (C&I) segment, the 50-megawatt (MW)/ 200.6 MW hour (MWh) facility in Bikaner (Rajasthan) is Serentica's first BESS project, which is expected to be commissioned by the end of 2025 calendar year.

This is one of the biggest BESS capacities commissioned this year, which is a significant development in India's energy sector, noted Akshay Hiranandani, CEO of Serentica Renewables.

Adani Defence, Prime Aero acquire Indamer Technics to strengthen MRO leadership

Adani Defence Systems and Technologies Limited (ADSTL), in partnership with Prime Aero Services LLP, has signed a binding agreement to acquire a 100 per cent stake in Indamer Technics Private Limited (ITPL), a private-sector Maintenance, Repair, and Overhaul (MRO) company.

The investment is made through Horizon Aero Solutions Limited, a 50-50 venture between Adani Defence & Aerospace and Prime Aero, a company owned by Prajay Patel.

This acquisition marks another critical milestone in fulfilling Adani Defence & Aerospace's vision to deliver a full-spectrum MRO offering to meet the needs of both commercial and defence aviation sectors.

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