Rupee Gains on U.S. Trade Deal Hopes
The Indian rupee strengthened to a one-month high of ₹85.31/USD on July 3, driven by fresh optimism that a pending India–U.S. trade deal is within reach. Investor sentiment Reuters registered a boost after foreign investors invested more than \\$166 million in equities and bonds.
Also, soft U.S. jobs data supported expectations that the Federal Reserve would temper interest rate hikes, making emerging market currencies like the rupee attractive.
The rupee strength is a reflection of upbeat sentiment and firm macroeconomic conditions," said an analyst based in Mumbai.
RBI Conducts ₹1 Trillion 7-day Reverse Repo Auction
The Reserve Bank of India (RBI) conducted a massive 7-day ₹1 trillion reverse repo auction on July 4 to manage excess liquidity in the banking system. The banking system, as per Reuters, had over ₹3.75 trillion of excess liquidity—the highest in three years.
This measure will bring short rates in line with the repo rate and contain inflationary pressure within the domestic economy.
India Partners with Zambia to Purchase Cobalt & Copper
In a strategic move, India has sent a group of geologists to Zambia for a three-year survey of copper and cobalt deposits—crucial for electric cars and battery production. The project covers an area of over 9,000 square kilometers and is being carried out in partnership with Zambia's mining ministry.
The pact helps India create a secure supply chain of major minerals, reducing reliance on China, says Reuters.
India's New EV Policy Reduces Import Tariffs
India has finalized a new electric vehicle (EV) policy that reduces import tariffs from over 100% to just 15%, on harsh terms to attract foreign auto makers like Tesla. Investing.com confirms that companies must:
- Invest at least ₹4,150 crore (approximately \\$500 million)
- Set up a local EV manufacturing unit within 3 years
- Cross turnover limits that increase from ₹2,500 crore to ₹7,500 crore over a period of five years
But India has capped the investment that can be placed into EV charging infrastructure at a paltry 5% of the total spending, reports Financial Express.
"This ensures real manufacturing comes to India, not just assembly," a senior NITI Aayog official said.
India's Auto Industry Pushes Back on Emission Cuts
India's push for adopting aggressive vehicle emission targets—over 30% by 2027—has drawn criticism from manufacturers. The Society of Indian Automobile Manufacturers (SIAM) contends that the proposed timeline is "unrealistic" and could harm industry growth.
Energy Connects reports that automakers have threatened to raise prices, postpone EV introduction, and even disinvest unless the targets are revised.
Quick Snapshot of India News Today
| Category | Highlights |
|---|---|
| Rupee Gains | On back of U.S. trade deal hopes & capital inflows |
| RBI Action | ₹1 trillion reverse repo to meet liquidity glut |
| Mining Agreement | Copper & cobalt exploration agreement with Zambia |
| EV Reforms | Reduced import tariffs subject to domestic manufacturing requirements |
| Emissions Push | Auto lobby demands rethink of 2027 pollution goals |
✅ Final Thoughts
From the strengthening of its currency and management of liquidity to securing access to African minerals and overhauling EV regulations, India is working on a long-term economic strategy that balances growth with sustainability. All these steps show that India is ready to play on the world economic stage while defending national interests.
Be sure to check for more updates on India's energy policy, strategic trade negotiations, and industrial modernization plans.
- India inflows push rupee to one-month high – Reuters
- RBI reverse repo auction explained – Reuters
- India looks for cobalt in Zambia – Reuters
- EV policy changes and Tesla entry – Investing.com
- EV investment cap in infrastructure – Financial Express
- Resistance to emission rule – Energy Connects
India cobalt exploration India EV policy 2025 India News Today India rupee dollar Indian economic update latest India news RBI reverse repo auction.