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India’s Engineering Goods Exports Surge 13.81%, Driven By Increased Shipments To US, UK, Germany, Japan, Brazil, & China

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New Delhi: India’s engineering goods exports surged 13.81 per cent (year-on-year) in July 2025, driven by increased shipments to the US, the UK, Germany, Japan, Brazil, and China, a report said on Saturday. Indian engineering exports crossed $10 billion for the first time this fiscal, reaching $10.43 billion in July, up from $9.16 billion in July 2024, according to data from the Engineering Export Promotion Council of India (EEPC).

The growth is despite the international trade facing tensions from escalating US tariffs, regional divergence, and heightened policy uncertainty.Engineering goods exports to the US rose 19 per cent YoY to $1.81 billion in July. Engineering exports to Germany increased by 37.8 per cent YoY, reaching $457.6 million.

Shipments to the UK rose 46.5 per cent YoY, reaching $402.5 million; exports to Japan increased 55.2 per cent YoY, reaching $256.6 million; and exports to Brazil advanced by 26.4 per cent YoY.Engineering goods exports to China reached $263.9 million in July, a 35.8 per cent surge YoY.However, exports to Turkey sharply declined by 31 per cent, likely due to geopolitical tensions with India.

Engineering goods exports to the UAE, Saudi Arabia, and Singapore had also declined during the month.During the month, 29 of 34 engineering panels reported positive growth. Five product categories, primarily aircraft and spacecraft, ships and boats, and zinc and its products, fell in July 2025 compared to the previous year.

For the April–July period of FY26, engineering exports grew 6.1 per cent YoY, reaching $39.34 billion, up from $37.08 billion during the same period last year.Regarding the tariff tensions, Pankaj Chadha, Chairman, EEPC India, said, “We need to diversify our markets and products to survive and increase our global market share.

The support of the Government of India, both in terms of foreign policy and access to credit, would be of enormous importance at this juncture.”Region-wise, North America maintained its spot as the number one engineering export destination with a share of 22 per cent, followed by the EU (18 per cent) and West Asia-North Africa (14 per cent) in April-July 2025.The WTO projects a 0.2 per cent decline in global merchandise trade for CY 2025 and a deeper drop of up to 1.5 per cent if trade tensions escalate.

Crime

Drug trafficking accused arrested after fleeing from NCB custody in J&K

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Jammu, Sep 10: Officials of the Narcotics Control Bureau (NCB) said on Thursday that the drug trafficking accused, who had escaped from custody in J&K’s Jammu city on September 7, has been re-arrested.

The officials said the NCB, in coordination with the Jammu and Kashmir Police and Punjab Police, has re-arrested the drug trafficking accused, who had fled from custody in Jammu.

The accused had fled from Jammu and travelled towards Jalandhar via the Pathankot route, the officials said. He allegedly took shelter in a forested area near Narwal Fruit Mandi before altering his appearance by shaving his beard and changing his clothes.

The official said that following a three-day search and tracking operation across Jammu and Kashmir and Punjab, a joint team of NCB Jammu, NCB Amritsar, NCB Chandigarh and Punjab Police traced and apprehended him in Jalandhar.

The accused was identified as Aqib Bashir.

“The accused was preparing to move towards Delhi or another state when he was apprehended.

“The accused used his contacts in Jalandhar to seek shelter and evade the search teams. Intelligence inputs and field efforts helped the agencies track his location. Aqib Bashir was arrested when he was preparing to move towards Delhi or another state.

“His initial arrest was part of a month-long operation by the NCB in the Jammu division, which exposed two distinct routes used by narcotic smugglers to push heroin into the union territory from Pakistan through the Uri sector and indirectly via Punjab.

“The NCB had earlier arrested him with 522 grams of heroin from a passenger bus in Samba district on September 3,” the officials said.

Further investigation is underway to ascertain the circumstances of his escape and identify those who allegedly provided him shelter and facilitated his movement.

Intelligence agencies believe that the major portion of narcotics smuggled into the country from Pakistan is used to sustain terrorism in Jammu and Kashmir

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Business

Cabinet okays 5 railway projects in south India at total cost of Rs 10,021 crore

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New Delhi, Sep 9: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved five multitracking railway projects with an investment of Rs 10,021 crore.

The five projects, covering 17 districts across Tamil Nadu, Andhra Pradesh, Karnataka, and Telangana, will increase the existing network of Indian Railways by about 540 km. The multi-tracking projects will enhance connectivity to approximately 2,121 villages, with a total population of about 52 lakh.

These projects include the Arakkonam–Renigunta 3rd and 4th Line over a stretch of 77 km, Whitefield–Bangarapet 3rd and 4th Line, 47 kms, Hosur-Omalur Doubling, over 147 km, Salem–Karur–Dindigul Doubling, amounting to 159 km, and Secunderabad (Ghatkesar)–Kazipet, extending to 110 km, according to an official statement.

The increased line capacity will significantly enhance mobility, resulting in improved operational efficiency and service reliability for Indian Railways. These multi-tracking projects are poised to alleviate congestion and are scheduled to be completed by 2029-30.

The projects are planned under the PM-Gati Shakti National Master Plan with a focus on enhancing multi-modal connectivity and logistics efficiency through integrated planning and stakeholder consultations. These projects will provide seamless connectivity for movement of people, goods, and services.

The approved capacity enhancement will improve rail connectivity to several prominent tourist destinations across the country, including Tirupati, Subramaniya Swamy Temple (Tiruttani), Sri Padmavati Ammavaari Temple (Tiruchanur), Kotilingeshwara Devaalaya, Sri Seethi Byraveshwara Swamy Temple, Bangaru Tirupati, Kolar Gold Fields, Hogennakkal Falls, Hosur Fort, Mettur Dam, Kodaikanal Hills, Sathyamangalam Wildlife Sanctuary, Namakkal Anjaneyar Temple, Namakkal Fort, Kalyana Pasupatheswar Temple, Yadagirigutta Temple, Bhongir Fort, Surendrapuri, and Swarnagiri Temple.

These projects are also essential routes for transportation of commodities such as coal, cement, iron and steel, containers, automobiles, food grains, petroleum products, fertilisers, etc. The capacity augmentation works will result in additional freight traffic of magnitude 47 MTPA (Million Tonnes Per Annum). The Railways, being an environment-friendly and energy-efficient mode of transportation, will help both in achieving climate goals and minimising logistics costs of the country, reduce oil imports by around 8 crore litres and lower CO2 emissions by 42 crore kg, which is equivalent to the plantation of around 2 crore trees, the statement added.

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Business

PM Modi appeal to curb gold purchases pits economic restraint against political comfort

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New Delhi, Sep 9: Asking Indians to step away from the jewellery counter ahead of the festival season carries political risks. Gold in India is more than a commodity. It is a form of savings, an intergenerational asset and a deeply entrenched cultural tradition. Prime Minister Narendra Modi’s public plea to avoid unnecessary gold purchases puts concern about the import bill up against long-standing buying habits and the interests of the domestic jewellery trade.

The electoral calendar adds a political dimension. Next year, Uttar Pradesh, Uttarakhand, Himachal Pradesh and Punjab head to the polls. The domestic gold trade includes merchant communities that have traditionally formed part of the BJP’s support base.

A sustained decline in gold buying could depress jewellery sales and unsettle sections of that constituency ahead of these elections. The appeal suggests a willingness to deliver an uncomfortable economic message, although its political cost will depend on whether consumers respond and how the trade is affected.

The economic concern is the rising bullion import bill amid wars and global uncertainty. Higher international gold prices have increased the cost of meeting Indian demand, even as import volumes have declined. According to data reported by The Economic Times, India’s gold imports rose more than 24 per cent to an all-time high of $71.98 billion in 2025–26. This occurred even as the volume imported fell nearly 4.8 per cent to roughly 721 tonnes.

India bought less physical gold but paid a substantially higher dollar bill. Gold imports add to the demand for foreign exchange. A surge in festive buying can therefore widen the trade deficit and, depending on other external flows, add to pressure on the rupee.

However, framing PM Modi’s appeal purely as a response to global gold prices offers incomplete context. It also draws attention to the government’s limited progress in reducing dependence on imported crude oil. Earlier ambitions to bring down that dependence have proved difficult to realise.

With limited scope to curb essential oil imports without affecting economic activity, discretionary imports become a more accessible target. Gold is an obvious candidate, although restraining purchases would not resolve the underlying dependence on imported energy.

Nor is all gold buying simply consumption that households can readily postpone. For many buyers, it is also a means of saving and providing financial security. That complicates the attempt to influence demand through an appeal for restraint.

Reducing gold imports requires more than a Prime Ministerial plea. It also requires more effective ways to bring existing domestic holdings into circulation and offer alternatives to those buying gold primarily as an investment. Indian households and religious institutions are estimated to hold 20,000 25,000 tonnes of physical gold. This represents substantial wealth, but much of it remains outside formal financial channels. Efforts to mobilise it have met with limited success.

The Gold Monetisation Scheme struggled to attract household gold, partly because families are reluctant to melt down ancestral jewellery in return for interest. Sovereign Gold Bonds offered an alternative for investors seeking exposure to gold prices, but could not substitute for jewellery bought to wear, gift or pass on.

The distinction matters. A gold-linked financial investment and a family heirloom serve different purposes. The difficulty is not simply that policy has failed to turn physical gold into a financial asset. It is that financial products cannot fully replace the cultural and practical uses of jewellery.

Without addressing those differences, efforts to shift demand away from physical gold will have limits.

There are precedents for PM Modi taking decisions that unsettled established interests, including sections of his own support base. But comparisons between the gold appeal and structural reforms need care.

As Chief Minister of Gujarat, he implemented the Jyotigram Yojana, which separated agricultural power feeders from those supplying other rural consumers. The programme faced resistance from sections of the farming community but changed how rural electricity was supplied.

As Prime Minister, his government introduced the Goods and Services Tax, seeking to create a unified national market. The transition brought significant adjustment and compliance costs, particularly for smaller businesses and traders, including communities traditionally associated with the BJP.

The Insolvency and Bankruptcy Code similarly challenged the position of established business promoters. It provided creditors with a framework to resolve defaulting companies, potentially displacing existing owners. Its implementation has also exposed shortcomings requiring further reform.

These measures changed institutions, rules and incentives. An appeal to avoid gold purchases relies instead on voluntary restraint. It may reflect a willingness to challenge established preferences, but it is not equivalent to a change in taxation, credit rules or the organisation of an essential service.

Its economic effect will depend on whether households alter their buying decisions. The intention to ease external pressures is clear; the scale and durability of the response are not.

Demonetisation in 2016, ahead of the following year’s Uttar Pradesh election, provides another example of a disruptive intervention before a major political contest. It does not, however, establish that taking an electoral risk necessarily produces economic gains.

The gold appeal is also materially different. Rather than imposing a sudden policy change, PM Modi is asking consumers to give greater weight to the national economic cost of their purchases. Whether that argument outweighs considerations of tradition, savings and expected returns remains uncertain.

The immediate gamble is that some households will defer buying without a wider backlash from the jewellery trade. Even then, postponed purchases may return later, limiting the lasting effect on imports.

PM Modi’s intervention brings the foreign-exchange cost of gold into the public debate. But the test is not the boldness of the appeal. It is whether the appeal changes demand, and whether policy can provide credible savings alternatives and make better use of gold already held in India. Political gains, should they follow, would be a separate outcome.

(Rakesh Khar is a seasoned editor. He writes at the intersection of politics, business, technology and society. Views expressed are personal)

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