India Faces U.S. Tariffs, Extends Manipur President’s Rule: Weekly News Recap

As India navigates a complex web of political shifts, economic challenges, and diplomatic standoffs, the past week has been packed with high-impact developments—none related to entertainment, yet each deeply shaping the country's path forward. From fresh U.S. tariffs on Indian exports to ecological warnings by the Supreme Court, this roundup captures the real stories that matter. Whether you're a policy enthusiast, investor, journalist, or simply a curious citizen, here’s what made headlines across India last week—and why it counts.

India to Continue Russian Oil Imports

• Despite U.S. threats of sanctions over energy ties with Russia, Indian officials have reaffirmed that longstanding contracts remain intact and policy decisions are driven by market factors like price, quality, and logistics—not political pressure. Russia continues to supply around 35% of India’s oil imports. This stance underscores New Delhi’s pursuit of an independent energy policy amid global trade tensions.

PM Modi’s Varanasi Speech: Farmer Relief & Self-Reliance Push

• In Varanasi, Prime Minister Modi rolled out ₹20,500 crore under the PM‑Kisan scheme and launched 52 development initiatives worth ₹2,200 crore. He stressed programs such as PM Fasal Bima, Lakhpati Didi, Drone Didi, and women’s empowerment in agriculture. Modi also made a renewed appeal for “Swadeshi” and “Vocal for Local” during increased U.S. tariff threats.

Sharp Decline in Share Market Valuation

• India’s top 10 firms lost ₹1.35 lakh crore in market cap last week, as major indexes corrected—TCS was the biggest loser. The BSE index fell over 1% (863 points). This drop reflects weakening investor sentiment amid tariff uncertainties.

Supreme Court Raises Alarm Over Himachal’s Ecological Crisis

• India’s Supreme Court warned that unchecked development, tourism surges, and climate change are damaging Himachal Pradesh’s biodiversity. It cautioned that the state could “vanish into thin air” without swift corrective action, urging both state and central authorities to act immediately.

Cybercrime Surge: “Digital Arrest” Scams on the Rise

• India is grappling with a surge in cyber scams where fraudsters impersonate law enforcement and coerce victims into paying money. Losses soared from ₹3.4 billion in 2023 to ₹19.4 billion in 2024. The scams leverage digital access and poor cyber literacy, impacting all demographics.

Political Turmoil: Odisha MLA’s Controversial Remarks and Kedarnath Allegations

• In Chhattisgarh, a special NIA court granted bail to two Kerala nuns and a male companion arrested on human trafficking and forced religious conversion charges—raising human rights concerns.
  Also, in Maharashtra, NCP‑SCP MLA Jitendra Awhad stirred controversy by stating, “Sanatan Dharma has ruined India,” following the Malegaon blasts acquittal. BJP reacted strongly.

Foreign Investors Pull ₹17,741 Crore from Indian Equities

• In July, foreign portfolio investors sold off ₹17,741 crore in Indian equities—the first net outflow in four months. The surge in U.S. tariff threats triggered panic and a sharp market sell-off during the final week of July.

Rupee & Bond Markets Stay on Edge Amid Fed & Trade Uncertainty

• The Indian rupee dropped around 0.4% to ₹86.5150 per dollar, while bond yields showed cautious movement as markets awaited cues from the U.S. Fed meeting and the looming reciprocal tariff deadline on August 1.

Parliament & SC Urged to Consider Voter ID–Aadhaar Integration in Bihar

• In Parliament, External Affairs Minister S. Jaishankar and Defence Minister Rajnath Singh addressed Operation Sindoor and denied any foreign influence. Meanwhile, the Supreme Court advised the Election Commission to explore integrating Aadhaar with voter ID cards for Bihar’s special voter revision drive.

Security Tightened Across Six Maoist‑Affected Odisha Districts

• With Maoist “martyrs’ week” underway (July 28–August 3), Odisha deployed additional security forces in six tribal regions—Koraput, Malkangiri, Nabarangpur, Nuapada, Kalahandi, and Rayagada—to monitor movements and intercept propaganda efforts.

Pahalgam Terror Attack Mastermind Neutralized

• Following the April Pahalgam terror attack that killed 26 tourists, the Indian Army eliminated the mastermind, Suleiman Shah, in Srinagar. Families of victims publicly praised the government’s action post-Operation Sindoor.

Life Sentence for Prajwal Revanna, Political & Legal Fallout

• In a high-profile Karnataka case, Prajwal Revanna was sentenced to life imprisonment for the rape of a domestic worker. Simultaneously, BJP MP Sadhvi Pragya alleged she was tortured into implicating PM Modi and CM Yogi Adityanath in the Malegaon blast case. Defence Minister Rajnath Singh responded sharply to Rahul Gandhi’s “atom bomb” remarks, defending institutional impartiality. Also notable: EU sanctions on Nayara Energy spurred state-run refiners to step in to manage diesel and petrol sales abroad.

President’s Rule Extended in Manipur for Six More Months

• The Government extended President’s Rule in Manipur from August 13, 2025, for another six months amid unresolved political instability. Ethnic tensions persist between Meitei and Naga groups, and no stable state cabinet has been formed yet.

U.S. Imposes 25% Tariff on Indian Imports Starting August 1

• Former U.S. President Trump announced new 25% tariffs on Indian exports beginning August 1, with possible secondary penalties tied to India’s continued purchases of Russian oil and military equipment.

India and U.S. Resume Trade Negotiations Amid Tariff Standoff

• Despite tariffs, India continues diplomatic engagement with the U.S. A U.S. delegation is expected in New Delhi later this month to resume bilateral trade talks, especially on agriculture, dairies, and market access.

Andhra Pradesh Launches ‘Annadata Sukhibhava’ Farmer Support Scheme

• Chief Minister N. Chandrababu Naidu unveiled the “Annadata Sukhibhava” scheme on August 2, aimed at aiding over 46 lakh farmers. The scheme offers ₹20,000 per farmer in three installments, co-funded by the state and central governments.

India's last week was anything but quiet. From financial tremors in the stock market to diplomatic tug-of-wars and grassroots farmer reforms, the country continues to evolve under the weight of both global and local pressures. The extension of President’s Rule in Manipur reminds us of regional fragility, while targeted government schemes like Annadata Sukhibhava show efforts to balance governance with empathy. As new trade tensions rise, what remains clear is that India’s policy decisions, people-first narratives, and strategic diplomacy will be more critical than ever. Stay tuned—and stay aware.

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