INDIA SEA TRADE
Budget 2024: How Sitharaman can steer the trade ship amidst two wars and Red Sea crisis to achieve $2 tn export goal
In the upcoming budget, key priorities for the export sector include boosting e-commerce exports through streamlined policies and infrastructure enhancements. Additionally, there is a push for Production Linked Incentive (PLI) schemes aimed at revitalising sectors such as toys and leather goods, fostering competitiveness and export growth.
Europe's green transition offers India-Bulgaria trade opportunities, says Indian envoy
India's Ambassador advocates for a bilateral agreement with Bulgaria to employ third-country workers, aligning with existing agreements in Europe. This strategic move aims to enhance economic cooperation and provide skilled manpower to Bulgarian employers, further solidifying the strong economic and cultural ties between the two nations.
India keen to speed up power grid link talks with Sri Lanka
India is actively pursuing discussions with Sri Lanka to establish a power grid link, focusing on renewable energy for electricity trading. The project includes overhead and under-sea cables, with economic benefits being evaluated by PwC India and plans for a joint consultant for investment decisions.
The train from Russia: How a new route can change things for India
A multimodal route that includes a railway, roadway network and seaports, the INSTC spans 7,200km (4,500 miles) from St. Petersburg to the port of Mumbai in India. The corridor is part of Russia’s push to find new transport routes in light of Western sanctions, which have forced it to shift trade flows from Europe to Asia and the Middle East.
Russia exports major consignment via INSTC ahead of PM Modi’s Moscow trip
The consignment will reach Mumbai port via Bandar Abbas port in Iran, ET has learnt. “For the first time, two trains with Kuzbass coal headed to India along the International North-South Transport Corridor. The trains set off from the Kemerovo region. They followed along the eastern branch of the INSTC through Kazakhstan and Turkmenistan to the Iranian port of Bandar Abbas,” Russian Railways said on Monday in a statement.
Piyush Goyal to meet exporters Thursday
India’s goods exports in FY24 were $437.1 billion and imports were $675.4 billion. The ministry has been developing standard operating procedures to negotiate free trade agreements with other countries and could come up for discussion, said another person aware of the meeting. Exporters are also likely to take up the issue of extending the Production-Linked Incentive (PLI) scheme to leather intensive sectors such as leather and footwear.
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India buys record amount of sunflower oil as Ukraine-Russia fight for market share cuts price
Indian buyers purchased a record 500,000 metric tons of sunflower oil in June due to competitive pricing against soyoil and palm oil from leading suppliers Russia and Ukraine. The war has lead to reduced inventories in the Black Sea region. The lower prices for sunflower oil were attributed to aggressive competition from Russia, Ukraine, and Argentina, with sunflower oil trading at a discount to soyoil and palm oil, prompting Indian buyers to pivot towards sunflower oil amidst robust demand in southern states.
Global supply chain shift: Has India finally arrived?
Global supply lines are shifting for more resilience. Geopolitical developments put India at an advantage. Will demographic dividend finally create value for India?
Arcelor-Nippon says India's plan for raw material curbs ignores Red Sea crisis
ArcelorMittal's India joint venture warned New Delhi that planned curbs on low ash metallurgical coke imports, crucial for steelmaking, could harm the industry. The Red Sea crisis complicates supply chains, and the proposed 40% quota for European imports could disrupt operations. India's imports of this key steelmaking fuel have doubled in four years.
How the Gulf became integral part of India's 'extended neighbourhood' under PM Modi
Earlier, the relationship was focused only on energy, trade and Indian expatriates. That relationship has now evolved into a new framework encompassing political relations, investment, and defence and security cooperation.
India's May palm oil imports hit 4-month high on competitive prices
India's palm oil imports surged by 11.6% in May compared to the previous month, reaching the highest level in four months, driven by its competitive pricing relative to rival oils, according to a statement by the Solvent Extractors' Association of India (SEA). The increased palm oil purchases by India, the world's largest importer of vegetable oils, could bolster benchmark Malaysian palm oil futures.
Traders are bracing for a record-smashing summer that will shake up commodities
Prices for some of the world’s most vital commodities — natural gas, power and staple crops like wheat and soy — are climbing.
India's spike in trade with Russia not 'temporary phenomenon', says S Jaishankar
India's External Affairs Minister S Jaishankar highlighted that the growing trade between India and Russia is not a passing trend but a result of emerging economic prospects. He emphasised the long-standing relationship between the two nations despite India's stance on the Ukraine conflict. Trade has seen a significant increase with India becoming a top buyer of Russian oil amid Western sanctions. Efforts are underway to deepen economic ties further.
Ballistic missiles fired by Yemen's Houthi rebels damage Panama-flagged oil tanker en route to India from Russia in Red Sea
Yemen's Houthi rebels have caused minor damage to a Panama-flagged oil tanker traveling through the Red Sea, following an uptick in attacks since a relative lull in their campaign over Israel's war on Hamas in the Gaza Strip. The rebels fired three missiles, one of which damaged the tanker. The attack occurred off Mocha, Yemen, near the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden. The Houthis have launched more than 50 attacks on shipping, seized one vessel, and sank another since November.
US imposes sanctions on over a dozen companies, three from India for trade and ties with Iran
The United States imposes sanctions on companies, individuals, and vessels, including three from India, for aiding Iranian military's illicit UAV transfers. Sahara Thunder, linked to Iran's military, utilizes India-based companies like Zen Shipping and Port India Private Limited for its operations. These sanctions target entities involved in facilitating clandestine sales of Iranian UAVs to Russia for its war in Ukraine. The US Treasury emphasizes the need to counter Iran's destabilizing actions, coordinating efforts with allies to combat such financing activities.
India's engineering exports up 10.7% in March, says EEPC
India's engineering goods exports, including steel and machinery, increased by 10.7% YoY to $11.28 billion in March, despite supply issues caused by disruptions in shipping through the Red Sea. In the 2023/24 financial year, engineering goods exports rose 2.13% to $109.3 billion. However, global demand slowdown, Russia-Ukraine war, and Middle East conflict have impacted exports. India's merchandise exports fell to $437 billion, while automobile exports declined 5.5%.
Russia nudges Azerbaijan to play active role in INSTC that would boost trade with India
Azerbaijan has been slow in full implementation of INSTC, which has otherwise contributed to increase in India-Russia trade since 2022. Armenia is also interested in developing a branch of INSTC. While the Kazakhstan-Turkmenistan route is another branch of INSTC, another branch is the Iran-Caspian Sea route.
Shipping companies asked to enhance reporting, tracking mechanism on West Asian routes
In a circular dated April 10, 2024, the Directorate General of Shipping (Mumbai) advised ship managers, ship masters and seafarers to enhance the mechanism for reporting and tracking maritime activities to safeguard the interest of merchant ships and their crews.
India’s exports declined 0.7% in March; trade deficit at an 11-month low
For the full year, the trade deficit, at $240 billion, was 9.3% lower than the previous year. Exports tumbled 3.1%, as geopolitical tensions continued to plague trade. Imports during this period were down 5.4% from FY23.
At WTO, Australia seeks details on India's fisheries plan
Australia has requested details from India regarding its fisheries programs, including policy objectives, budget expenditures, and coverage, during a meeting at the World Trade Organization (WTO). Australia also inquired about performance requirements and whether the Pradhan Mantri Matsya Sampada Yojana (PMMSY) includes objectives related to harnessing tuna resources in India's exclusive economic zone (EEZ) and the high seas. Additionally, Australia sought information on India's program for converting trawlers into deep-sea fishing vessels, including funding details and whether it is ongoing under the PMMSY.
India's inflation, growth at risk from Red Sea crisis-driven oil price rise, govt says
India's economy faces inflation and growth risks due to rising oil prices from Red Sea disruptions. Key trade routes impacted. High costs and delays could lead to pricier imports and affect export competitiveness. Diversifying trade routes necessary. Despite challenges, government predicts positive close to financial year. Inflation outlook optimistic, GDP growth estimate raised to 7.6%.
India says Red Sea attacks add urgency to Middle East trade route
India's ambassador to the UAE, Sunjay Sudhir, highlighted the need for an alternate trade route due to the volatile situation in the Red Sea. He mentioned the India-Middle East-Europe Economic Corridor (IMEC) as a solution, aiming to establish an alternate supply route. I
Houthi Attacks: The high and low trade impact of Red Sea disruption on India
The Iran-backed Houthi militia in Yemen has caused disruptions in global trade flow due to their attacks in the Red Sea. The Suez Canal, used by ships for 12% of global trade, is currently blocked due to hostilities, redirecting ships to pass through Africa. Capital goods and fertilisers are the most impacted sectors, with delays in timely delivery leading to inventory build-up and frozen order conversions. Fertilizers are affected by extended shipment timelines and increased freight costs, as India heavily relies on Middle Eastern countries for fertilizers, particularly Israel and Jordan.
Russia’s crude oil delivery problems to India aren’t over yet
Twelve tankers are anchored, holding the key Russian crude grade. Most haven’t moved far for more than a month, vessel tracking data compiled by Bloomberg show. The build-up started when ships carrying the crude to ports around the Indian coast came to a halt late last year and then turned back towards the South China Sea as December drew to a close.
India's January palm oil imports drop 12.4% m/m: Trade body
Imports of soyoil rose 23.7% to 188,859 tons, those of sunflower oil were down about 15.6% at 220,079 tons, while total vegetable oil imports fell 8.4% to 1.20 million tons, the Mumbai-based Solvent Extractors' Association of India (SEA) said in a statement.
PMO likely to review Red Sea Crisis soon
The Prime Minister's Office (PMO) is expected to conduct a review of the potential impact of the Red Sea crisis on trade, as exporters anticipate that trade in March and April may be affected. According to an official, there hasn't been any adverse impact on exports thus far due to the crisis. However, traders foresee that the impact might reflect in the trade numbers for March and April. Senior officials from various ministries including commerce and industry, petroleum, finance, and petroleum and natural gas convened with industry representatives on Wednesday.
Show sensitivity to exporters in view of Red Sea crisis: Finmin to PSU banks
Financial Services Secretary Vivek Joshi has urged public sector banks and insurance companies to handle trade finance and insurance cases sensitively amid the Red Sea crisis. Due to longer shipping routes, exporters face higher trade finance and insurance costs. Joshi emphasized the importance of dealing with these issues with sensitivity to avoid denial of services. The Bab-el-Mandeb Strait crisis has led to increased shipping costs and delays, impacting India's merchandise trade with Europe.
No adverse impact of Red Sea crisis so far on India's trade
There is no adverse impact on India's exports and imports so far due to the Red Sea crisis, an official said. The transportation cost has increased as shippers take a longer route, but volume terms remain unaffected. However, exporters are concerned about the significant jump in freight cost and the potential impact on India's exports. The Red Sea crisis has disrupted global supply chains, leading to increased freight costs, mandatory war risk insurance, and significant delays due to rerouting.
India can survive the Red Sea crisis, says head of US-India forum
The Red Sea crisis, caused by Houthi militants targeting shipping vessels, will not have an inflationary impact or cause a drastic shortage of goods in India, according to the head of a US-India body. While the crisis has impacted global trade and increased voyage time, India can survive through it. However, India's exports of rice and import of energy are being affected. The crisis also highlights the need for India to ensure energy security by diversifying its sources.
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