India

Livemint | English | News | Jan. 23, 2026 | UndeterminedPolitics and Elections

European Commission President Ursula von der Leyen will be the Chief Guest for India's 77th Republic Day, visiting India from January 25 to 27, 2026. Alongside António Luís Santos da Costa, President of the European Council, she will co-chair the 16th India-EU summit. On January 27, von der Leyen will hold restricted talks with Prime Minister Narendra Modi focusing on a long-anticipated Free Trade Agreement (FTA), and both will meet President Droupadi Murmu. The India-EU FTA negotiations aim to enhance trade despite recent global tariff challenges, with hopes of signing the agreement soon. The EU is currently India's largest trading partner.

Ursula von der Leyen, a German politician and doctor, assumed office as European Commission President in 2019 and was re-elected in July 2024. She previously served 14 years in the German government, including as Federal Minister for Defence under Angela Merkel. A member of the centre-right Christian Democratic Union, she was born in Brussels and grew up bilingual. Her family background includes a father who was a CEO and state politician in Germany. She married Heiko von der Leyen in 1986.

Speaking at the 2026 World Economic Forum in Davos, von der Leyen described the upcoming India-EU trade agreement as “the mother of all deals,” potentially creating a market of 2 billion people and accounting for nearly a quarter of the global GDP. The FTA negotiations, which had been stalled since 2013, are expected to significantly deepen economic ties between India and the 27-nation European Union.

The Hindu | English | News | Jan. 23, 2026 | Geopolitical Conflict and Disputes

India has withdrawn the dependents and family members of its officials from its missions in Bangladesh due to a deteriorating security situation. Indian diplomatic posts have faced sustained threats of mob attacks over the past few months, prompting the declaration of Dhaka as a “non-family” station as a precautionary measure ahead of Bangladesh’s February 12 election. Despite these steps, Indian officials stated that diplomatic and consular operations will continue unaffected.

Indian missions in Bangladesh have been targeted in recent months, including over two dozen protests near the Indian High Commission in Dhaka and a stone-pelting incident at the Assistant High Commission in Chittagong on December 18, 2025. The situation worsened following the murder of Sharif Osman Hadi, a radical Islamist youth leader, on December 12. Allegations that his killers fled to India fueled threats and protests against Indian missions in Bangladesh, with retaliatory demonstrations occurring outside the Bangladesh High Commission in India.

India has responded by maintaining heightened police security near the Bangladesh High Commission in New Delhi and tracking developments in Bangladesh closely. Tensions are expected to rise further as the banned Awami League, led by ousted Prime Minister Sheikh Hasina, has resumed activities from Indian territory, including recent and upcoming media engagements in New Delhi by its leaders.

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.