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A Modi-Trump Bromance Failure
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In today’s edition — Prime Minister Narendra Modi plans a US trip amid immigrant embarrassment; a better month for India’s automotive industry; and US flip on postal service restrictions for packages coming from China and Hong Kong.
JANUS VIEW
The Modi-Trump Bromance Couldn’t Prevent The Immigrant Embarrassment
After the Budget presented on February 1, Trump’s declaration of trade war, followed by ceasefire deals and the effects of these developments on stock markets, dominated the week under review, apart from the continuing reverberations of the Chinese artificial intelligence chatbot DeepSeek’s startling claim that $6 million was all it took to develop its latest reasoning model, which is at least as good as Chat GPT’s own latest release.
A stampede that killed 30 people, according to the official estimate, at the Mahakumbh taking place at Uttar Pradesh’s Prayag Raj was a tragedy, until it turned into a political controversy, with the Opposition claiming that the number of those killed was much larger, and the ruling party in the state, the BJP, trying to shame its opponents for ‘making political capital out of a tragedy.’ The Uttar Pradesh administration, under different political dispensations, has had a reputation for conducting this once-in-12-year religious gathering of 120-180 million people efficiently. Sullying that reputation is, indeed, a source of political embarrassment.
So is the return from the United States of a planeload of Indian illegal immigrants in a special military plane, with the passengers held in manacles until their arrival in Amritsar, Punjab. It may be recalled that Colombia’s president, Gustavo Petro, had sent back such a military plane carrying Colombians who had bungled their migration to the US, all in shackles, on the ground that these were not criminals but only ordinary people striving for a better life abroad, who did not deserve to have their dignity violated by being put into shackles.
Colombia, when threatened with 25% tariffs on its exports to the US, had sent its own planes to the US to bring back the hapless Columbians, albeit as free men. The Modi-Trump bromance that vocal Modi supporters tend to be loquacious about could not prevent the Indian migrants from being trussed up on their way back to India.
Will the Indian prime minister Narendra Modi's trip to the US change things?
PODCAST
On Episode 501 of The Core Report, financial journalist Govindraj Ethiraj takes you through the top business news of the day. We also feature an excerpt from our interview, part of our Energy Special series with IEW, where financial journalist Govindraj Ethiraj talks to Arvinder Singh Sahney, Chairman of Indian Oil Corporation Ltd. (IndianOil).
Why the markets are wary of a RBI rate cut.
The Rupee hits another record low.
What is the RBI faced with in its calculations on a possible interest rate cut.
Rural demand stays strong, lifts consumer goods sales 11% in last quarter.
What Indian Oil wants from young entrepreneurs and engineers wanting to join the energy giant.
America’s egg crisis, one reason is Ozempic.
January was the warmest on record.
THE CORE x TALENT SKILLVARSITY
The Executive Program in Business Journalism & Economic Reporting trains professionals in financial markets, economic reporting, and multimedia tools. Learn investigative techniques and AI-driven storytelling to thrive in modern media.
CORE NUMBER
22.91 lakhs
This is the number of automobiles sold in India in January, a 6.6% year-on-year growth, monthly data from dealers’ body Federation of Automobile Dealers Associations of India (FADA) showed. Passenger vehicle sales saw a 15.53% year-on-year increase, commercial vehicles 8.22%, two-wheelers 4.15% and three-wheelers 6.8%. Inventories also improved marginally, “dropping by around five days to 50–55 days”. The body gave a “cautiously positive” outlook for future sales and said that there could be a dip, given February is a shorter month.
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FROM THE PERIPHERY
—📦 In a U-turn within 24 hours, the US Postal Service (USPS) on Wednesday announced that it will continue accepting inbound mail and packages from China and Hong Kong, reversing the suspension that began Tuesday. According to USPS, it is working with Customs and Border Protection to implement an efficient tariff collection system with minimal disruption. This follows president Trump’s executive orders imposing tariffs on Mexico, Canada, and China, which also ended the de minimis loophole allowing duty-free low-value imports. Retailers Shein and Temu, which account for over 30% of such shipments, may raise prices.
—🏦 Sanjay Malhotra, the new governor of India’s central bank - the Reserve Bank Of India - is widely expected to cut interest rates in his first monetary policy meeting this week, Bloomberg reported. The repo rate, held at 6.5% for nearly two years, may be lowered to 6.25%, with some analysts predicting an even deeper cut. The decision comes as India’s GDP growth slows, global trade risks rise, and liquidity shortages impact banking operations. A rate cut is also expected to boost borrowing and ease liquidity pressures, while the markets will be watching how the RBI balances rate cuts with liquidity management and inflation risks in the months ahead.
—😕 Trump’s steps against diversity have reached Google’s doorsteps. The Silicon Valley tech giant has said it will no longer try to focus on diversity among its workforce. This is yet another move at America’s technology hub to fall in line with Trump’s policies and stay in his good favour. “We’re committed to creating a workplace where all our employees can succeed and have equal opportunities, and over the last year we’ve been reviewing our programs designed to help us get there,” Bloomberg quoted a Google spokesperson as saying.
—🌱 India’s tea production in 2024 declined by 7.8% year-on-year to 1,284.78 million kg, primarily due to lower yields in Assam, Reuters reported. Assam’s output fell to 649.84 million kg from 688.33 million kg in 2023, as heatwaves and floods disrupted peak harvesting. India, the world’s second-largest tea producer, exports CTC (crush, tear, and curl) tea to Egypt and the UK, while orthodox tea goes to Iraq, Iran and Russia. The shortfall drove average prices up 18% to Rs 198.76 per kg in 2024.
😏UGGH
Influencers Keep Ignoring Ad Rules, And It’s A Problem
A new Advertising Standards Council of India (ASCI) report has found that 69% of India’s top 100 digital influencers failed to comply with advertising disclosure guidelines—despite these rules being in place for over three years.
The biggest violators came from fashion and lifestyle (27.5%), telecom (21.7%), and personal care (13%), sectors that accounted for 62% of the breaches. The most common issue? Skipping disclosure labels entirely or hiding them in hashtags, making it difficult for audiences to distinguish between genuine recommendations and paid promotions.
While 93% of influencers corrected their posts after intervention, 7% refused, forcing ASCI to escalate cases to the Ministry of Information & Broadcasting.
ASCI’s CEO Manisha Kapoor called for urgent action: “With influencer advertising attracting mainstream budgets, it is concerning to see a lack of responsibility and compliance. Brands must work with influencers who respect the law, and influencers must push back against brands that ask them to flout it.”
With influencer marketing playing a growing role in consumer decisions, the public deserves transparency—so that purchases are made with full awareness, not hidden persuasion.
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✍️ Zinal Dedhia, Salman SH | ✂️ Rohini Chatterji | 🎧 Joshua Thomas