New Delhi: The first day of August has arrived like a storm both economically and geopolitically. From President Donald Trump’s sweeping tariff announcement that rattled global markets to India’s sweeping financial system changes and the successful close of the NSDL IPO, this Friday has seen a confluence of critical developments reshaping the global trade order, India's financial infrastructure, and investor sentiment.
At the center of the storm lies Trump’s latest executive order that imposes harsh new tariffs on a host of countries most notably retaining a 25% tariff on India while offering selective relief to others like Bangladesh and Pakistan. Starting August 7, these duties will take effect, marking a new phase in U.S. trade aggression. Treasury Secretary Scott Bessent minced no words, stating India had “not been a great global actor” due to its ongoing oil trade with Russia. He accused India of “slow-rolling” negotiations, revealing deepening tensions between the two democracies.
While India finds itself penalised, Trump’s administration also dealt blows to Switzerland (39% tariff), Canada (35%), and South Korea (15%), citing trade imbalances, policy differences, and geopolitical stances. Even long-time U.S. allies are not exempt, sending a clear message that Washington is reasserting its unilateral trade policy muscle. However, the White House clarified that these are not extensions, but time granted for customs systems to update.
Back home, India responded with calm determination. Commerce Minister Piyush Goyal briefed Parliament that the government is evaluating the impact and will act in the national interest. India is not expected to hastily retaliate, preferring to await further clarity before the next round of trade talks scheduled on August 25. For now, digital diplomacy continues behind closed doors.
Amid these external pressures, India’s internal economic engine is undergoing rapid recalibration. The beginning of August marks the implementation of several financial reforms, including extended trading hours for market repo and TREP operations from 9 AM to 4 PM as mandated by the Reserve Bank of India to deepen liquidity in the money markets. Meanwhile, sweeping changes to UPI operations have come into force, limiting balance checks to 50 per day per app, and placing tighter caps on account verification and AutoPay processes.
Credit card holders also face a reality check, as SBI Cards has begun phasing out complimentary air accident covers worth ₹1 crore on several co-branded cards from August 11. This includes elite cards linked to major public-sector banks like UCO, Central Bank, and Allahabad Bank.
These changes are complemented by the rollout of key sections of the Banking Laws (Amendment) Act, 2025. Among the critical updates are the hike in minimum paid-up capital for banks from ₹5 lakh to ₹2 crore and stricter rules for governance, especially in cooperative banks. Dormant accounts, unpaid dividends, and idle investor funds must now be transferred to the IEPF, ensuring transparency and better depositor protection.
In the capital markets, a wave of optimism greeted the close of the NSDL IPO, which drew overwhelming interest. Subscribed 7.17 times, the ₹4,011 crore offer has become a strong symbol of investor trust amid global uncertainty. Non-institutional investors alone oversubscribed by 18.17 times, with a robust grey market premium of 17% hinting at a likely listing price of ₹934 per share. Anchor investments from LIC and ADIA and a clean financial track record place NSDL in a promising post-listing position, with shares set to debut on August 6.
On the derivatives front, the Nifty 50 enters the August F&O series on a peculiar note. FII long exposure is at a multi-year low of just 10%, typically a bullish signal. Historical trends show the index tends to rally when foreign investor exposure bottoms out, while domestic high net-worth investors (HNIs) hold 70% long positions indicating strong local conviction in a market rebound.
Amid all this, SEBI is leading a silent revolution in investor rights. A new circular issued on July 31 mandates that all digital platforms under its regulation be it stockbrokers, mutual funds, or depositories must now be made fully accessible to persons with disabilities. This includes compliance with global standards such as WCAG 2.1 and Indian norms like GIGW. Features such as Indian Sign Language videos, descriptive audio, accessible PDFs, and alternative KYC methods must be integrated across platforms within six months, making India’s securities market more inclusive than ever before.
Beyond economic and financial upheavals, national security remains a key focus. Exercise Suraksha Chakra, launched today in Delhi-NCR by the Indian Army and paramilitary forces, underscores India’s readiness to tackle emerging threats. Focused on urban warfare, infrastructure protection, and counter-terror drills, the operation involves drones, surveillance teams, and Quick Reaction Forces, asserting India’s internal security preparedness in an era of hybrid warfare.
Even across the globe, industry giants are navigating turbulence. Apple Inc. has reported its strongest quarterly revenue since 2021, despite tariff hits. With a 10% rise in revenue to $94.04 billion and iPhone sales up 13%, Apple beat all estimates. CEO Tim Cook credited part of this performance to consumer anticipation of price hikes, and also acknowledged renewed growth in China, aided by local subsidies. Despite a projected $1.1 billion tariff hit this quarter, Apple shares rose 2% in after-hours trading, proving the tech titan's resilience.
In summary, August 1 has unfolded not as just another day, but as a turning point. While global trade realigns under protectionist impulses, India pushes forward reforming its digital economy, upgrading its financial systems, and asserting its readiness to withstand geopolitical crosswinds. The world is watching as India recalibrates its response not with panic, but with purpose.