Germany, France and the UK have set up a payment channel with Iran called INSTEX, to help continue trade and circumvent US sanctions.

Brussels hopes the long-awaited special payment system will help save the Iran nuclear deal by allowing Tehran to keep trading with EU companies despite Washington reimposing sanctions after US President Donald Trump abruptly quit the accord last year.
The three countries have launched the device at a meeting of EU foreign ministers in Bucharest.

While, the new institution, called INSTEX is a project of the three governments, it will receive the formal endorsement of all 28 EU members.

Iranian Foreign Minister Mohammad Javad Zarif welcomed the move. Deputy foreign minister Abbas Araghchi also welcomed the step as a first step by the EU in fulfilling its commitments toward Iran.

The Defence Acquisitions Council, DAC chaired by Defence Minister Nirmala Sitharaman approved indigenous construction of six submarines worth 40 thousand crore rupees.

It is the second project under the Ministry's ambitious strategic partnership model aiming to boost the government's Make in India' program.

The first project to get the government's nod for implementation under the new model was the acquisition of 111 utility helicopters for the Navy at a cost of over 21 thousand crore rupees in August last year.

The construction of six advanced submarines under project 75(India) will provide a major boost to submarine design and manufacturing ecosystem in India through the transfer of design, equipment technology and skill sets.

Defence Acquisitions Council has also approved the acquisition of about five thousand MILAN Anti Tank Guided Missiles for the Army.
The French-origin anti-tank guided missiles are meant for the Indian infantry to destroy Main battle tanks which are fitted with Explosive Reactive Armour.

The Goods and services tax (GST) collection in January (for December) came in at over Rs 1 lakh crore, the Finance Ministry said in a tweet on Thursday, amid reports that the revenue shortfalls, primarily in GST, were impinging on its plan to contain the budget deficits. The GST collections exceeded the Rs 1 lakh crore mark only twice in past — in April and in October.

The collection in February would likely be impacted by rate cuts on 17 goods and six services which were announced by the GST Council on December 22 and came into effect from January 1.

“This increase has been achieved despite various tax relief measures implemented by the GST Council to lower the tax burden on the consumers,” the Ministry’s tweet said.

“Robust Economy: Gross GST Revenue in Jan 2019 crossed Rs 1 lakh crore … This has been achieved despite huge reduction in tax rates for various items benefitting poor, farmers & middle class,” Finance Minister Piyush Goyal tweeted. GST collection stood at Rs 1.03 lakh crore in April, Rs 94,016 crore in May, Rs 95,610 crore in June, Rs 96,483 crore in July, Rs 93,960 crore in August, Rs 94,442 crore in September, Rs 1,00,710 crore in October, Rs 97,637 crore in November and Rs 94,725 crore in December 2018.

Union Finance Minister Piyush Goyal will present the Budget in Parliament today. Our correspondent reports that the government is likely to announce several welfare measures for various sections of society.

Industries bodies expect that the credit flow to industries will increase and corporate tax will reduce. Chairman of Economic Affairs Council of CII, Vinayak Chatterjee said, he expects more announcement for addressing farm distress and budgetary provisions for social sector.

Foreign direct investment (FDI) during the previous fiscal grew 18 per cent to Rs 28.25 lakh crore, data from the Reserve Bank of India (RBI) showed on Monday.

FDI increased by Rs 4,33,300 crore, including revaluation of past investments, during 2017-18 to reach Rs 28,24,600 crore in March 2018 at market value, according to RBI data on 'Census on Foreign Liabilities and Assets of Indian Direct Investment Companies, 2017-18'.

Overseas direct investment (ODI) by Indian companies increased by 5 per cent to Rs 5.28 lakh crore. "FDI companies witnessed a substantial increase in other investment liabilities, largely due to the increase in trade credit," the RBI said.

The census showed that Mauritius continued to be the largest source of FDI in India (19.7 per cent) followed by the US, the UK, Singapore and Japan. In case of overseas investment by Indian companies, Singapore (17.5 per cent) was the major destination, followed by the Netherlands, Mauritius and the US. Manufacturing sector had majority share in total FDI.

'Information and communication services' and 'financial and insurance activities' were other major recipients of FDI. The RBI said the data released are the provisional results of 2017-18.

In Women's Hockey, the final match of the 4-game series between India and World Cup bronze medallists Spain will be played at Murcia this evening. The match will start at 5:30 PM (Indian Standard Time). 

The series is currently square at 1-1. India had lost the tour opener, 2-3, before levelling the series with a 5-2 win in the third game. The second match had ended in a 1-1 draw.

After the series with Spain, India will play two matches against Ireland.

Top trade officials from the US and China have begun talks in Washington for defusing the escalating tariff war. The Chinese delegation is headed by Chinese Vice Premier Lie, while the American side is led by US Trade Representative Robert Lighthizer. 

The talks began last evening following a brief session open to the media. The White House said, US welcomes the Chinese delegation and US President Donald Trump will meet them at the end of the two-days talks.

US and China have just a month remaining in a 90-day truce declared in December. Should the talks fail, US import duties on 200 billion dollars  in Chinese imports are due to more than double on 2nd March.

The last rites of George Fernandes will be performed after his son arrives from the US, the former defence minister's wife Leila Kabir said on Tuesday.

A number of leaders, including Prime Minister Narendra Modi, Home Minister Rajanth Singh, BJP president Amit Shah and Bihar Chief Minister Nitish Kumar, visited the bereaved family at their residence in New Delhi's upscale Panchsheel Park to pay their respects.

"I wish to inform my fellow countrymen that George Fernandes, my husband who was former defence minister and Member of Parliament, passed away today in the early hours. He was suffering from Alzheimer's," she said.

A lifelong socialist despite his political adventurism that included cabinet posts in two ideologically opposite governments where he ousted Coca-Cola in 1977 and oversaw the Kargil war in 1999, Mr Fernandes died at his home on Tuesday. He was 88.

His body was taken to All India Institute of Medical Sciences (AIIMS) for embalming, Ms Kabir said in a statement.

She said the last rites will be conducted soon "after our son, Sean Fernandes, arrives in India (from the US). As soon as Sean arrives, we will finalise the timing of the last rites and will inform all".

Air India is resuming its services from New Delhi to the holy city of Najaf in Iraq after 25 years. Talking to AIR News, Indian Ambassador to Iraq Dr Pradeep Rajpurohit said, the services will commence from the 14th of next month, and it is initially being planned for twice a week. Najaf is a city some 160 kilometres from Baghdad. It is an important pilgrimage place considered sacred by Shia Muslims.

Foreign Secretary Vijay Gokhale summoned High Commissioner of Pakistan Sohail Mahmood in New Delhi last night. Mr Mahmood was summoned in connection with the telephonic conversation initiated by Pakistan Foreign Minister Shah Mehmood Qureshi with Mirwaiz Umar Farooq of the All Parties Hurriyat Conference. 

The External Affairs Ministry said, the Foreign Secretary conveyed New Delhi's condemnation in the strongest terms of the latest brazen attempt by Islamabad to subvert India's unity and violate sovereignty and territorial integrity. 

Terming the act as deplorable, the Ministry said, Mr Gokhale told the Pak envoy that the move has violated all norms for the conduct of international relations even by Pakistan's own standards.

Mr Gokhale said, Pakistan has yet again confirmed that it officially abets and encourages individuals associated with terrorism and anti-India activities. The act, he said, has exposed to the entire international community Pakistan's duplicity in professing their desire for normal relations with India on the one hand, while openly inciting anti-India activities on the other.

The Foreign Secretary reiterated India's position on Jammu and Kashmir. He said, J&K is and will remain the integral part of India, and Pakistan has no locus standi in matters related to the state.

The Pakistan High Commissioner was categorically informed that India expects Pakistan to immediately desist from such actions.  Mr Gokhale said, persistence of such behaviour will have implications.