Kick-start your morning with Swarajya’s Morning Brief – your news fix, curated for clarity and insight.
Apple’s Vendors Nearly Double iPhone Exports From India
Apple’s vendors nearly doubled iPhone exports from India in March to Rs 20,000 crore, up from Rs 11,000 crore a year ago, as they rushed to build stock ahead of US tariffs kicking in from April 2. For FY25, iPhone exports surged to nearly Rs 1.5 lakh crore, up from Rs 85,000 crore in FY24—surpassing India’s total smartphone exports of Rs 1.3 lakh crore in the previous fiscal. March alone saw exports worth Rs 48,000 crore, and Foxconn led the charge with 51 per cent share, followed by Tata Electronics and Pegatron.
The 26 per cent reciprocal tariff imposed by the US from April 9 is expected to slow electronics exports in the coming months. While India fares better than China and Vietnam in tariff rates, future growth hinges on a bilateral trade pact with the US, which Apple and Indian officials are watching closely to avoid long-term setbacks.
India To Operationalise Nuclear Submarine Base Next Year
India is set to commission its strategic nuclear submarine base near Rambilli in coastal Andhra Pradesh in 2026, The Times of India has reported. The Rambilli base, part of Project Varsha, features underground pens and a network of tunnels that allow nuclear submarines to shelter from attacks and discreetly enter the Bay of Bengal, enabling rapid deployment toward key maritime chokepoints like the Malacca Strait.
The Indian Navy will soon induct INS Aridhaman, its third SSBN equipped with K-4 ballistic missiles, while construction is underway for more advanced 13,500-tonne SSBNs, the report adds. India is also developing six SSNs—conventionally armed submarines powered by nuclear propulsion—which, like SSBNs, can remain submerged for months at a time.
RBI Set To Cut Rates Amid Global Uncertainty
Economists unanimously expect the Reserve Bank of India (RBI) to cut the repo rate by 25 basis points this week due to easing domestic inflation, but are split on whether the central bank will shift from a neutral to an accommodative stance amid global trade uncertainty kicked of by US President Donald Trump. Economists polled by the Economic Times foresee the rate cut, though opinions vary—with half expecting the RBI to stick to a neutral stance, while others predict a move toward easing, citing the need for flexibility in an unpredictable global environment shaped by US trade policies.
India’s retail inflation fell to 3.61 per cent in February, below the RBI’s 4 per cent target and expectations, reinforcing the case for a rate cut. However, due to global volatility and uncertainty over US monetary actions, the RBI is likely to avoid committing to a prolonged easing cycle for now. Economists expect the repo rate to hit 6 per cent in April.
Other Developments
Credit Card Defaults Surge Despite Overall NPA Decline
While banks have managed to reduce overall gross NPAs from Rs 5 lakh crore in December 2023 to Rs 4.55 lakh crore in December 2024, credit card defaults have surged during the same period. Credit card NPAs rose by 28.42 per cent to Rs 6,742 crore by December 2024, up from Rs 5,250 crore a year earlier, driven by increased consumer spending, a digital payments boom, and a slowing economy.
This rise means credit card NPAs now account for 2.3 per cent of the Rs 2.92 lakh crore in outstanding loans, up from 2.06 per cent of Rs 2.53 lakh crore in December 2023. Alarming data obtained via RTI reveals that NPAs in this segment have soared over 500 per cent from Rs 1,108 crore in December 2020. Despite overall improvement in asset quality, the sharp jump in credit card defaults points to rising household financial stress.
Tariff War Opens Global Dairy Market For India
The US tariff war has opened up an opportunity for India’s dairy sector, with nearly half of American dairy exports traditionally going to regions near India, such as West Asia, China, Southeast Asia, Japan, and South Korea. Many of these countries are now expected to raise import duties on US products in response to Washington’s tariff hikes, making American dairy more expensive and creating space for Indian exports.
As the world’s largest milk producer, India is well-positioned to step in and supply these markets, especially amid potential supply chain disruptions. The changing trade dynamics may help India diversify its export markets and boost its presence in global dairy trade. Some nations, like China, have already imposed retaliatory tariffs, which could further benefit Indian exporters.
Heat Wave Grips North India—Yellow Alert In NCR
North India is reeling under a severe heat wave, with 21 cities across five states recording temperatures above 42 degrees Celsius. Delhi is expected to face the brunt of this scorching weather from April 7 to 9, with maximum temperatures hovering around 40 to 42 degrees Celsius. The India Meteorological Department (IMD) attributed the spike in temperatures—ranging from 3 to 6.9 degrees above normal—to declining wind speeds, especially in Delhi, where surface winds are expected to weaken significantly during the day. It has issued a yellow alert for the national capital region.
Rajasthan’s Barmer hit 45.6 degrees Celsius on Sunday, the highest ever recorded there in the first week of April. The IMD has also predicted heat wave to severe heat wave conditions over Gujarat, particularly in Saurashtra and Kutch, between April 6 and 10. Similar warnings have been issued for Rajasthan, Himachal Pradesh, Haryana, Punjab, Madhya Pradesh, and western Uttar Pradesh.
Japan’s MUFG Nears Deal To Buy Stake In Yes Bank
Japan’s MUFG Bank is close to finalising a deal to acquire a stake in Yes Bank, potentially valuing the Indian lender at around $6.5-7 billion, according to sources. The deal is being discussed with State Bank of India (SBI), which holds the largest stake at 23.98 per cent, and possibly with other Indian institutional shareholders.
MUFG is expected to initially acquire SBI’s stake and may take a majority shareholding in the future. While SBI and MUFG have not confirmed the development, Yes Bank CEO Prashant Kumar said any stake sale by SBI is outside the bank’s purview. Earlier interest from other banks faded due to regulatory limits that cap promoters’ voting rights in private banks at 26 per cent.
Trump Vows To Stay The Course Amid Widespread Chaos
US President Trump has reaffirmed his commitment to sweeping tariffs on imports despite escalating market turmoil and mounting fears of a recession. The US stock market recorded its worst week since 2020, with all major indexes falling over 5 per cent and the S&P 500 dropping nearly 6 per cent. Saudi Arabia’s market also plunged nearly 7 per cent, reflecting global fragility in response to the trade tensions. JP Morgan has now placed a 60 per cent probability on a US and global recession due to the tariffs.
Despite these developments, the administration has said the 10 per cent baseline tariff will remain in place for the foreseeable future, with higher reciprocal tariffs on 60 countries set to begin on April 9. Trump claimed that dozens of countries are eager to negotiate deals and dismissed concerns over rising prices for American consumers.
China Locks Both Flanks Of Indian Ocean
China has completed the construction of its naval base in Cambodia, giving it a strategic foothold on the eastern edge of the Indian Ocean. The new facilities were launched in an event late last week. China now has strategic military access on both the eastern and western approaches to the Indian Ocean. With a permanent presence in Djibouti to the west and upgraded naval facilities in Cambodia to the east of the Malacca Strait, Beijing is rapidly tightening its grip over key maritime corridors.
The new pier and joint operations centre at Cambodia’s Ream Naval Base are not meant to serve Cambodian needs, but to give China a launch point to project power in the region. Together with ongoing efforts to secure the Funan Techo Canal, these moves form a broader push to bypass chokepoints, de-risk supply chains, and encircle the Indo-Pacific’s critical trade arteries.
From The States
Rahul Gandhi In Bihar For Third Time In Three Months
Rahul Gandhi is visiting Bihar for the third time in three months as the Congress intensifies its outreach to Extremely Backward Classes (EBCs), Dalits, and Muslims ahead of the upcoming Assembly elections. On Monday (7 April), he will join a yatra in Begusarai and attend a “Samvidhan Bachao” event in Patna. Gandhi’s presence is also seen as a bid to energise party workers and promote a new leadership trio—NSUI in-charge Kanhaiya Kumar, AICC Bihar in-charge Krishna Allavaru, and state Congress chief Rajesh Ram.
The Congress is focusing heavily on EBCs, who make up over 36 per cent of Bihar’s population, by honouring lesser-known subaltern freedom fighters at these events. At the Patna event, Gandhi will commemorate EBC Salt March participant Buddhu Nonia, sending a message of constitutional empowerment for marginalised communities.
Ram Navami Yatra Attacked In Kolkata
A Ram Navami procession in Kolkata was attacked on Sunday (6 April), leaving several devotees injured and vehicles damaged. The BJP accused the Trinamool Congress government of allowing targeted violence against Hindus, claiming that police stood by despite being present.
Just days earlier, the same location saw a disruptive protest by members of the Muslim community over the Waqf Bill, which reportedly received no police pushback. The police had already denied permission for a Ram Navami yatra along a key route, citing security concerns, prompting accusations of deliberate suppression of Hindu religious events to appease the ruling party’s Muslim vote bank.
You’re all caught up—until next time.
