India

Times of India | English | News | Jan. 23, 2026 | UndeterminedEconomic Growth

Prime Minister Narendra Modi emphasized the need for renewed efforts to strengthen the development trajectory in Manipur, a state affected by ethnic strife. He assured the state administration of the Centre’s full and steadfast support, recalling his visit to Manipur in September 2025 as part of efforts to defuse ethnic tensions between the Meiteis and Kukis and restore normalcy.

In his letter to Manipur Governor Ajay Kumar Bhalla, Modi praised the people of Manipur for their courage and faith in peace and progress. He highlighted the government’s commitment since 2014 under the ‘Act East, Act Fast’ resolve to empower the region, unlock opportunities, and fulfill local aspirations.

Modi also wrote to the chief ministers of Tripura and Meghalaya on their statehood days, acknowledging past feelings of alienation from the national mainstream in the Northeast. He pointed to the 2024 peace accord in Tripura with insurgent groups NLFT and ATTF as a turning point, marking a new era of hope. For Meghalaya, he noted that development had stagnated before the NDA government took office in 2014 and has since worked extensively to transform the region.

The Economic Times | English | News | Jan. 23, 2026 | UndeterminedTrade Issues and Numbers

US President Donald Trump expressed confidence in the India-US Bilateral Trade Agreement (BTA), stating that the two countries are "going to have a good deal." He praised Indian Prime Minister Narendra Modi as a close friend and a respected leader during an interview with Moneycontrol following his address at the 56th Annual Summit of the World Economic Forum.

India's Commerce Secretary Rajesh Agrawal indicated that the first tranche of the BTA is "very near," though he did not provide a specific timeline. The agreement, formally proposed in February 2025, aims to more than double bilateral trade between India and the US from USD 191 billion to USD 500 billion by 2030.

The trade talks were initiated during Prime Minister Modi's visit to Washington in February 2025. The Ministry of External Affairs confirmed that since February 2025, both countries have conducted multiple negotiation rounds to reach a balanced and mutually beneficial agreement, with several occasions where they were close to finalizing the deal.

Obhan & Associates | English | AcademicThink | Jan. 23, 2026 | Regulation

The Reserve Bank of India (RBI) has notified the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, effective from October 1, 2026, replacing previous regulations from 2015 and related directives. These New Regulations aim to simplify cross-border trade compliance through consolidation, delegation, and procedural clarity without introducing new prohibitions or thresholds. They reorganize how exporters, importers, authorized dealers, and regulators manage foreign trade operations.

Key provisions include a defined timeline for service exporters to submit Export Declaration Forms (EDF) within 30 days from the month-end of invoice issuance, with consolidated EDFs allowed for multiple exports within a month. Software exports are now expressly categorized under services, aligning their procedural requirements accordingly. Export proceeds must be realized and repatriated within 15 months of shipment, invoicing, or overseas warehouse sale, with extensions permissible by authorized dealers. Project exports follow contract payment terms and may have extended timelines. For invoicing in Indian Rupees, the realization period extends to 18 months.

For transactions up to Rs. 10 lakh, authorized dealers may close export and import data entries based on self-declarations without full documentary proof, facilitating ease for smaller operators. Quarterly bulk closures of low-value entries are now permitted. Import payments are aligned with contractual terms, and authorized dealers can grant extensions as needed. Advance remittances remain allowed; however, future remittances may require financial guarantees if prior advances are not settled within the contracted period.

The New Regulations explicitly permit set-off of export receivables against import payables, third-party payments, and reduction or non-realization of export proceeds based on authorized dealers’ assessments. For transactions up to Rs. 10 lakh, exporters’ declarations suffice for realisation adjustments. Merchanting Trade Transactions are now formally regulated, requiring inward and outward remittances within six months, direct payment flows with conditional third-party involvement, and active monitoring by authorized dealers.

EDPMS and IDPMS systems have been upgraded from reporting tools to active compliance mechanisms, with authorized dealers responsible for timely entries, follow-up, and closure of transactions, including powers to close entries when advances are not repatriated or imports do not materialize. The overall framework is designed to provide predictable, system-driven foreign trade oversight anchored in clear timelines, value thresholds, and dealer-level discretion.