1. India Allows Ethanol Production from Sugarcane Juice & Molasses
To bolster India’s ethanol blending targets for 2025–26, the government has announced policy reforms permitting unrestricted ethanol production from sugarcane juice, syrup, and various molasses types, starting November 1. This is a strategic shift from last year’s limitations. With favorable monsoon aiding sugarcane yields, industry players suggest raising procurement prices to ensure farmer welfare. This move aligns with the goal of achieving 20% ethanol blending in gasoline by 2025–26.
2. GST 2.0 Reshapes Pricing Ahead of Festive Season
India rolled out GST 2.0, the first significant tax reform since 2017, ahead of the wedding and festive season. The update trims tax to 5% on budget clothing (under ₹2,500) while increasing it to 18% on premium apparel and wedding-related expenses. Automakers also benefit, with reduced GST of 18% on small cars and a cap of 40% on luxury vehicles, prompting price cuts by top manufacturers. Despite potential shortfall of ₹1 trillion in GST revenue, anticipated boost in consumer spending may offset losses.
3. Fitch Raises India Growth Forecast to 6.9%
Following a remarkably strong April–June GDP growth of 7.8%, Fitch revised India’s fiscal year economic growth forecast upwards to 6.9% (from 6.5%). It credited robust services and domestic consumption as key drivers. Although retail inflation is at a six-year low (1.6%), trade tensions—particularly U.S. tariffs—could undermine future business confidence. Growth is expected to temper to 6.3% and 6.2% over the next two years.
4. Markets Rally Amid Hopes of U.S.–India Trade Progress
On September 10, Indian markets opened higher—the Nifty rose 0.49%, reaching 24,991, while the Sensex climbed 0.5% to 81,504. The rally, marking five consecutive sessions of gains, was fueled by optimism over progress in U.S.–India trade talks, tax reliefs, and potential Fed rate cuts. However, geopolitical headwinds emerged as U.S. President Trump proposed 100% tariffs on China and India, while signaling improving ties.
5. Exit of Modi at UNGA; Jaishankar to Lead India’s Plenary
Prime Minister Narendra Modi has opted out of addressing the UN General Assembly’s high-level session this year. In his place, External Affairs Minister S. Jaishankar will represent India on the global platform—a reflection of India’s evolving diplomatic resource management.
6. India–EU FTA Talks Advance as Sefcovic Visits
India’s Trade Minister Piyush Goyal announced that European Commissioner Maros Sefcovic will visit New Delhi on September 11, to advance Free Trade Agreement (FTA) discussions. EAM Jaishankar echoed urgency for a speedy conclusion, signaling growing momentum in India-EU economic cooperation.
7. Nepal Unrest Grounds Flights, PM Modi Raises Concerns
Amid escalating political unrest in Nepal, Indian carriers including IndiGo suspended flights to Kathmandu as a safety precaution. Meanwhile, Prime Minister Modi expressed deep concern over the “heart-wrenching” violence, directing a cabinet briefing on the crisis and reiterating India’s commitment to regional stability.
8. New Entry Rules for Bhutan, Nepal Nationals
Under a freshly issued Immigration & Foreigners (Exemption) Order, 2025, citizens of Nepal and Bhutan can now enter India without passports or visas—starting September 1. The policy applies to travel via land or designated air borders, aiming to foster closer bilateral ties and tourism.
9. UP Hosts Sustainable Agriculture Fair in Ramtek
The Kisan Samruddhi Mahotsav will take place on September 12 in Ramtek, spotlighting sustainable farming. Organized by the Maharashtra government, the event includes sessions by spiritual leader Sri Sri Ravi Shankar, exhibits on organic methods, mechanization, livestock, soil testing, and PMFME products. High-profile dignitaries and a global live stream (117 countries) aim to broaden its impact.
10. Declining Criminal Cases in Rajasthan
Rajasthan’s crime branch reports a significant reduction in court-filed cases—down 9.67% from 2024 to 2025. Contributing to this are policemen-led initiatives like free FIR registration under Section 156(3) CrPC, minimizing court reliance. Overall criminal incidents have dropped to 131,671 (up to August 2025) from 163,470 in 2023, indicating improved law enforcement efficacy.
Final Thoughts
The period from September 1 to September 10, 2025, showcased India navigating multifaceted dynamics—economic reforms, global trade diplomacy, regional complexities, and domestic policy innovation. From enabling ethanol production reforms to market optimism, visa-free cross-border movement, and climate-sensitive agriculture, these updates are shaping India’s trajectory.
