An analysis of year-wise movements of average global crude oil prices versus India's GDP reveals no inverse correlation, contrary to wide belief.
Work is underway in identifying global companies in sectors ranging from electronics, auto components and medical equipment to shift part of their existing or incremental manufacturing to India.
The stubbornly high global crude oil prices are opening up a can of worms to heightened inflation risks and likely to disrupt government's fiscal maths along with deteriorating global financial conditions.
India is the third largest consumer of petroleum products, after the US and China.
Bolton said that the arguments for China joining the World Trade Organisation was that it would become a more market-oriented rules-based society.
The rising dependence on discounted crude oil has resulted in India's trade deficit with Russia hitting the second-highest place last year, after China, reveals Department of Commerce data. From April through January 2022-23 (FY23), India's maximum trade deficit was with China, at $71.58 billion. This was followed by Russia, where the deficit expanded sevenfold - from $4.86 billion in April-January of 2021-22 (FY22) to $34.79 billion during the same period in FY23.
Why is Xi Jinping visiting Saudi Arabia, Egypt and China this week? Former RA&W officer Jayadeva Ranade explains the significance of China's outreach to the Middle East.
The talks took place on the sidelines of the G-20 foreign ministers' meeting in the Indonesian city of Bali.
Inflation data, global trends and foreign fund trading activity would guide equity market movement in a holiday-shortened week, analysts said. Stock markets would remain closed on Tuesday for Independence Day. "Macroeconomic indicators, rupee and FII activities will be pivotal in shaping market trends in the coming days.
The drop in oil to around $50 a barrel this year has triggered steep cutbacks in production of US shale oil
The Russian-Ukraine war can hit the global supply chains that are already constrained due to the pandemic and the worst impact will be on ongoing chip shortage because the warring nations brutally control supplies of key raw materials that go into making semiconductors, warns a report. Since Russia controls as much as 44 per cent of global palladium suppplies, Ukraine produces a significant 70 per cent of the global supply of neon -- the two key raw materials that go into making chips. The markets can expect the global chip shortage, that began with the pandemic, to worsen if the military conflict lingers on, says a Moody's Analytics report on Friday.
Stocks of Indian companies with exposure to Europe fell on Tuesday amid concerns about the impact on their sales in case the Russia-Ukraine crisis worsens and the US and its allies impose economic sanctions on Russia. While top conglomerates, including Reliance Industries, the Tata group, and Aditya Birla Group, said they did not have any significant exposure to Russia, executives of some of the oil and gas, pharmaceutical, and tea companies said they were monitoring the situation closely as they earned substantial income from the region. Russian President Vladimir Putin on Monday ordered troops into two breakaway regions of eastern Ukraine after announcing that Russia would recognise their independence.
Macroeconomic data announcements, the Covid situation in China and global market cues would guide Dalal Street in the first week of trading in the New Year, analysts said. Markets would also keep a track on rupee movement, Brent crude oil prices and foreign fund investment trends. "As market players attempt to understand the Fed's stance, Indian markets may respond in lockstep with their international counterparts when the Federal Open Market Committee (FOMC) minutes are made public later this week.
While prices sustaining lower levels is crucial, Govt actions are also a key monitorable given the forthcoming elections in 2024.
While India should be concerned about disparities, the fact is that whereas three decades ago about half the people had incomes greater than $2.15 a day, today seven out of eight do, notes T N Ninan.
For now, the upside appears to offset damage done to exports by weaker global demand.
In the year 2020 to date, these funds deployed capital worth a record $14.8 billion in India, which is nearly three times more than what they have put in China - $4.5 billion.
'New Delhi and Washington are now on the same page, on dealing with growing Chinese assertiveness, across the entire Indo-Pacific region,' notes Ambassador G Parthasarathy, Chancellor, Central University of Jammu.
Oil Minister M Veerappa Moily has suggested pricking the ballooning oil bill with everything from a street theatre campaign encouraging lower fuel use, to shutting fuel stations, to increasing imports from Iran.
India owes Iran around $8.8 billion primarily on account of crude oil imports.
SBI managing director PK Gupta told reporters that the rupee has been faring better than many of its peers, including the Turkish, Argentinean, and Indonesian currencies.
We should reassess what India's role in the world is and whether we are doing the right thing for ourselves, notes Aakar Patel.
Iran's decision to keep India out and welcome China to the scene is a huge strategic setback for India, observes Dr Rajaram Panda.
A piece of slightly negative news can cause a serious setback, warns Debashis Basu.
Imports too declined by 16.31 per cent to $37.39 billion.
Oil tanked to a 7-year low as OPEC decided to maintain production.
Tehran plans to lift exports by 500,000 barrels per day
'What should worry India and which needs to be expressed is Russia's simultaneous proximity to both China and Pakistan from a strategic angle. That hasn't happened ever before,' says Lieutenant General Syed Ata Hasnain (retd).
India will need to travel back in time and seek inspiration from football greats Tulsidas Balaram and Chuni Goswami to deftly dribble around and sidestep the West-imposed price cap on exports of Russian seaborne crude oil. India depends on imported oil to meet 86 per cent of its needs, of which nearly a quarter now comes from Russia. The copious flows are roughly 10 per cent cheaper than competing suppliers helping India save billions of dollars in fuel costs.
The Chinese have been objecting to the presence of Indian Navy ships in the region where it has significantly expanded its presence since 2009 through artificial islands and military presence.
Approved by the State Council, or China's cabinet, the move was taken to honour China's tariff reduction commitment upon its accession to the World Trade Organisation, the Customs Tariff Commission said in a statement.
Moody's said India's current account deficit (CAD) has narrowed significantly from 4.8 per cent in 2012 to 1.4 per cent in 2014.
Modi on the global stage always comes across as a statesman, counselling peace and amity to world leaders even as his policies at home hurt certain sections, explains Virendra Kapoor.
'There will be much for President Trump and Prime Minister Modi to discuss including growing Chinese military cooperation with Pakistan, which heralds a new attempt by China and Pakistan to neutralise India's influence in its Indian Ocean neighbourhood,' notes Ambassador G Parthasarathy.
Modi said both sides expressed commitment for an open, efficient and rules-based regional architecture and to expand bilateral maritime cooperation further.
In 2013, China took over as India's largest trading partner.
The US actions can be seen as a riposte to India's neutral position on the Ukraine crisis, its continuing import of Russian arms and oil thus undermining Western sanctions, argues Colonel Anil A Athale (retd).
The Chabahar port, says Ambassador M K Bhadrakumar, 'can be the first significant footfall in an Indian variant of the 'Belt and Road' initiative.'
'After a strategic pause though, Beijing will revive its policy of slowly creeping towards acquiring sovereignty over the South China Sea.'
Rulers in New Delhi and their political aides in sensitive states like Tamil Nadu have to be doubly careful not to provoke a situation whose consequences may be much more than visible now to the naked eye, notes N Sathiya Moorthy.
