Economy

The Reserve Bank of India (RBI) will transfer a record Rs 2.69 lakh crore surplus to the central government for FY25, marking its highest-ever dividend payout. The increase is attributed to higher forex earnings and liquidity operations. Alongside, the RBI has revised its Economic Capital Framework, adjusting the Contingent Risk Buffer to a range of 6.0 ± 1.5% of its balance sheet. This move is expected to modestly improve the government’s fiscal deficit by 0.1%, while reinforcing the RBI’s financial resilience.

Apple CEO Tim Cook announced that most iPhones sold in the U.S. during the June quarter will be manufactured in India, marking a major shift in Apple’s supply chain strategy amid U.S.-China trade tensions. While China remains a key production hub for markets outside the U.S., Cook emphasized the need for diversified manufacturing. India, which exported iPhones worth over Rs 1.5 lakh crore last fiscal year, is emerging as a crucial player, with Apple also planning to double its retail presence in the country.

India’s Goods and Services Tax (GST) collections reached a record ₹2.37 lakh crore in April 2025, marking a 12.6% year-on-year increase. This surpassed the previous record of ₹2.10 lakh crore set in April 2024. The surge in revenue includes ₹1.9 lakh crore from domestic transactions and ₹46,913 crore from import-related GST. After accounting for refunds, net GST revenue stood at ₹2.09 lakh crore, a 9.1% rise. Experts attribute the record collections to strong economic activity in March 2025, with broad-based growth across both producing and consuming states.

In a move aimed at easing the impact of trade measures on consumers and tech companies, former U.S. President Donald Trump has excluded smartphones, laptops, and other popular electronics from recently announced reciprocal tariffs. The decision offers a significant reprieve for major manufacturers like Apple and Samsung, while also signaling possible changes ahead in the administration’s tariff strategy.

China has imposed sweeping 125% tariffs on all U.S. imports, intensifying its trade battle with Washington. Beijing accuses the U.S. of violating international trade rules and vows to fight back if tariffs continue to rise. While tensions escalate, China signals it remains open to dialogue—if Washington abandons coercive tactics.