India Hits 8-Year Inflation Low Amid 50% US Tariff Storm and Parliamentary Crisis
1.55% inflation and tax reforms vs. US tariffs and Lok Sabha protests
Dear Readers,
Welcome to your daily source of insightful news from India, capturing the essence of the nation on August 12, 2025. Amidst monsoon challenges, legislative milestones, and international engagements, we bring you the latest developments driving progress and unity. Stay connected with key updates on the economy, culture, defense, and beyond. Thank you for subscribing. Let’s explore today's highlights!
Historic Inflation Low
India achieved a significant economic milestone as retail inflation plummeted to an eight-year low of 1.55% in July 2025. This marks the lowest inflation rate since June 2017, down from 2.1% in June, with food inflation diving deeper into negative territory at -1.76%. The dramatic decline affects both rural areas (1.18%) and urban areas (2.05%), providing much-needed relief to consumers.
Market Performance Under Pressure
Indian stock markets faced selling pressure on August 12, with the Sensex falling 368 points to close at 80,235 and Nifty declining 98 points to 24,487. Financial stocks, particularly Bajaj Finance and major banks, led the decline, while Tech Mahindra and Maruti Suzuki were among the few gainers.
Trade War Escalation
Trump's 50% Tariff Bombshell
The United States has imposed a devastating 50% tariff on Indian goods, doubling from the previous 25%, in response to India's continued purchase of Russian oil. This punitive measure, effective August 27, threatens to make $86.5 billion worth of Indian exports economically unviable. Prime Minister Modi responded firmly, without mentioning Trump by name, stating that there would be "no compromise, no matter the pressure."
Trade Talks Collapse
After five rounds of negotiations, India-US trade talks have reached a complete standstill, with Trump ruling out further discussions until the tariff issue is resolved. The breakdown occurred over India's refusal to allow duty-free access to American agricultural products and dairy, sectors employing millions of Indians.
Parliamentary Turmoil
Opposition's 'Vote Chori' Protests
Parliament's monsoon session concluded amid unprecedented disruptions as Opposition MPs protested alleged "vote theft" in Bihar's electoral rolls revision. The INDIA bloc, wearing symbolic T-shirts, marched from Parliament to the Election Commission, leading to the detention of over 30 MPs, including Rahul Gandhi and Priyanka Gandhi Vadra.
Key Legislation Passed
Despite the chaos, Parliament successfully passed several important bills, including the new Income Tax Bill 2025 to replace the 1961 Act, the National Sports Governance Bill, and the National Anti-Doping Amendment Bill.
Defense and Security
War Hero Passes Away
The nation mourned the loss of Group Captain Dilip Kamalkar Parulkar (Retd.), who died at 82. The decorated 1971 war hero was renowned for leading a daring escape from a Pakistani prisoner-of-war camp and was awarded both the Vayu Sena Medal and Vishisht Sena Medal for exceptional courage.
Defense Cooperation with the US
India and the United States are engaged in high-level defense talks focusing on fast-tracking Tejas fighter jet engine deliveries and a follow-on order for six P-8I Poseidon maritime patrol aircraft for the Indian Navy.
Independence Day Preparations
Grand Celebrations Ahead
India is preparing for its 79th Independence Day celebrations on August 15 at the Red Fort. Prime Minister Modi will hoist the national flag and deliver his address, with the ceremony featuring a 21-gun salute using Indian-made 105mm light field guns. The government has invited 50 Delhi sanitation workers as special guests to honor their contributions.
Water Crisis in Tamil Nadu
Chennai continues to grapple with a severe water crisis despite receiving 30% surplus rainfall. The city's water bodies have shrunk from 60 in 1893 to just 28 in 2017, with 2,400 acres of water bodies disappearing by 2016. Per capita water availability stands at just 750 cubic meters, far below the national average.
Cultural and Environmental Highlights
International Youth Day 2025: Celebrated with the theme “Local Youth Actions for the SDGs and Beyond,” emphasizing youth governance.
World Elephant Day: Marked to promote elephant conservation, with India’s Project Elephant and Gaj Yatra initiatives in focus.
Rare Mushroom Discovery: The Blue Pinkgill mushroom, native to New Zealand, was found in Telangana’s Kagaznagar forest, highlighting biodiversity.
The Kedarnath Yatra remains suspended until August 14 due to heavy rainfall.
Ayodhya prepares for Janmashtami 2025, with Ram Mandir offering 150 quintals of panjiri and 50 kg of panchamrit.
Quote of the Day
"During challenges, Bharat rises with resilience and unity."
— Inspired by India’s spirit
In the final words of Today’s India, we trust that you have been encouraged by the beautiful stories that have lifted the country. Be it the startups or old practices, to more sociable stories, making sure that no one is left behind, there is always a sense of progress and oneness.
As we take these strides, let’s make sure we promote kindness, creativity, and teamwork. And till the next time, may you take pleasure in bringing happiness and inquisitiveness in your day-to-day activities!
Don’t Miss Out!!! See You Tomorrow!!! ⏰
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