Good morning, lovely readers. India-US trade negotiations are close to a breakthrough, as both sides have bridged key differences and are near a deal, Reuters reports. However, Indian officials remain publicly cautious, suggesting that the country will not sign a deal in a hurry.

In today’s issue: We bring you more details on Zoho’s deal, which will aid SMEs in the UAE in digitization and innovation. We also have some more details on the Andhra Pradesh Chief Minister’s visit to the UAE.

ALSO- Some Indian firms sanctioned by the EU over ties with the Russian defense industry.

WATCH THIS SPACE-

Private sector growth in India slowed in October to a five month low, slipping to 59.9 from September’s 61 on the India Composite Purchasing Managers’ Index composed by HSBC Reuters reports. The index measures the combined performance of India’s manufacturing and services sectors. Services activity contracted slightly to 58.8, while manufacturing rose to 58.4, buoyed by recent tax cuts.

The survey showed the weakest expansion in aggregate new orders and output since May, as domestic demand softened despite indirect tax reforms. The index noted that while manufacturing saw some recovery, job creation was slowed — predicting caution among firms in both manufacturing and services.

India’s Defence Acquisition Council (DAC), has cleared arms-procurement proposals worth INR 790 bn (USD 9 bn) to strengthen the country’s military capabilities and support local defence production, Reuters reports. The approvals, announced on October 23, cover acquisitions across the army, navy, and air force, including new missile systems, naval surface guns, and high-mobility vehicles.

Key acquisitions: The proposals include acquisitions of S-400 long-range air defence missiles from Russia, four Landing Platform Docks (LPDs) for amphibious operations, advanced surveillance and electronic warfare systems, and upgrades to existing missile and radar systems. The DAC, chaired by Defence Minister Rajnath Singh, said the approvals are among the largest single-day clearances in recent years and are part of India’s broader effort to strengthen defence self-reliance amid regional security challenges (News on Air).

Three Indian firms among 45 entities sanctioned by the EU for allegedly supporting Russia’s military operations in Ukraine, Press Trust of India reports. These sanctions impose export restrictions on companies accused of supplying dual-use goods and sensitive technologies to Russia’s defence sector.

Who’s named: The Indian companies are Aerotrust Aviation, Ascend Aviation India, and Shree Enterprises. They are among 17 non-Russian – 12 from China (including Hong Kong) and 2 from Thailand – that now face tighter controls on exports of microelectronics, aircraft parts, UAV components, and precision tools.

Sanctions risk to cross-border payments: The Reserve Bank of India (RBI) has cautioned that geopolitical tensions, sanctions, and restrictions on financial systems pose key risks to cross-border payments due to centralised settlement infrastructure and reliance on major currencies, as per an RBI report. The central bank report adds that such disruptions may prompt countries to develop bilateral or multilateral financial alternatives.

India remains the world’s largest remittance recipient, with a record inflow of USD 137.7 bn in 2024. Total payment transaction value rose from around USD 21 tn in 2023 to USD 32.2 tn in 2024, nearly all from digital channels. (Business Standard)

DATA POINTS-

Halting crude imports from Russia would cost the Indian economy an estimated USD 3.2-6.4 mn daily as it currently imports up to 1.7 mn bpd, Fortune India reports. Indian refiners purchased Russian barrels at USD 2-4 discount per barrel down from USD 10 in 2022 following western sanctions.

Mumbai-based brokerage ICICI Securities has valued Jio Platforms at INR 12.3 tn (USD 148 bn) by FY 2027, supported by strong free cash flow, lower leverage, and steady earnings growth, Business Standard reports. Jio Platforms is the digital and telecom arm of Reliance Industries and backed by ADIA and PIF.

THE BIG STORY ABROAD-

All eyes are on US-Asia ties this morning, as the US and China look closer to agreeing a truce on tariffs that would do away with the US’ 100% tariff on Chinese imports and delay China’s rare earth export controls. US officials say a framework has already been hashed out for US President Donald Trump and Chinese President Xi Jinping to ratify when they meet on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea, on Thursday. (Reuters | Bloomberg | Financial Times | Wall Street Journal)

Trump is still covering his bases with agreements with other Southeast Asia partners that will relax trade barriers and expand rare earth elements’ access for the US. The agreements with Malaysia, Thailand, Vietnam, and Cambodia comes as the US looks to diversify its critical minerals supply chains. (Reuters | Bloomberg)

In M&A news, Swiss pharma firm Novartis is acquiring rare disease drugmaker Avidity for USD 12 bn — its largest acquisition yet. (Bloomberg | WSJ)

AND- The latest on the Louvre heist: French police arrested two suspects they say could be related to the theft of bns worth of jewels from Paris’ Louvre Museum last week. (Guardian | Reuters)

CIRCLE YOUR CALENDAR-

MF Hussain exhibition: Works of India’s pioneering modernist painter M.F. Hussain will be exhibited at Qatar Museums (The Rooted Nomad: MF Husain) from 28 October 28 2025 to 7 February 2026.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.