Daily News - Friday, 29 August 2025

⁠India's benefit from Russian oil imports exaggerated; actual gain at just $2.5 bn (The Economic Times)

A new CLSA report shows that India’s much-talked-about gains from buying discounted Russian oil are far smaller than media claims, with the real benefit closer to just USD 2.5 billion a year—about 0.6% of GDP—rather than the often-cited USD 10–25 billion, as shipping, insurance, and quality constraints cut into headline discounts. While Russian crude now accounts for over a third of India’s imports, refiners are finding the actual discounts have fallen sharply to around USD 1.5–4 per barrel, and government data even suggests India’s average crude import costs have shifted from a discount to a premium in recent years, making the overall advantage marginal. Still, analysts warn that stopping Russian imports could push global oil above USD 90–100 a barrel, spiking inflation worldwide, so beyond economics, India’s continued purchases serve as a stabilising factor in global energy markets and have also become a political issue amid US criticism.

⁠India-US trade talks only to resume after additional 25% tariff penalty is addressed, says official (Financial Express)

⁠India–US trade talks have stalled after Washington imposed an additional 25% penalty over Russian oil purchases, taking total tariffs on Indian exports to 50%, a move that has severely hit sectors like textiles and chemicals and left exporters fearing order cuts, job losses, and a liquidity crunch. The Commerce Ministry is reviewing industry pleas for relief, with exporters urging the relaunch of schemes like MEIS to share the tariff burden, though officials stress that any support will focus on sustainable, long-term measures rather than quick subsidies. Meanwhile, US economist Richard D Wolff criticised Trump’s punitive approach, warning that such policies could push India deeper into blocs like BRICS and strengthen alternative global trade systems that challenge the West.

⁠PM Modi likely to seal deal on Japan’s next-gen E10 Shinkasen Bullet Trains (Financial Express)

Prime Minister Modi’s upcoming visit to Japan for the annual summit with Shigeru Ishiba is expected to yield landmark agreements, most notably India’s partnership with Japan to bring the next-generation E10 Shinkansen bullet trains—faster, earthquake-safe, and still in development—to India, along with potential expansion of high-speed rail beyond the Mumbai–Ahmedabad route. The talks will also focus on deepening cooperation in semiconductors, AI, digital infrastructure, clean energy, and critical minerals, with Japan planning major investments and collaborations with Indian talent and companies to strengthen supply chains and technological leadership. Defence, security, and space will round out the agenda, as both leaders move to upgrade past agreements, collaborate on radar, naval systems, and Chandrayaan-linked missions, while simultaneously pushing Japanese investments in India beyond the earlier 5 trillion yen target to a new benchmark of 7–10 trillion yen. 

⁠DGCA clears IndiGo’s wet lease extension with Turkish Airlines till Feb 2026 (Financial Express)

IndiGo has secured another six-month extension, until February 28, 2026, for its wet lease arrangement with Turkish Airlines after DGCA approval, ensuring that direct flights to Istanbul and onward destinations remain uninterrupted at a time of high demand and geopolitical uncertainty. The airline stressed that this extension will provide continuity, reduce potential losses to India’s aviation sector, and give stability to international operations while also expressing gratitude to regulators for their support. This move follows what was earlier called a “last and final” three-month extension till August 2025, but IndiGo says the latest approval gives it vital breathing space to manage customer commitments and find longer-term solutions for its fleet strategy. 

⁠India, Africa have potential to build long-term partnerships: TVS chairman (Financial Express)

TVS Motor chairman Sudarshan Venu, speaking at the CII India–Africa Business Conclave, highlighted the enormous opportunities for collaboration between India and Africa in areas like AI, healthcare, fintech, consumer demand, and infrastructure, stressing that partnerships must focus on deeper social and economic engagement rather than just transactions. He underlined that long-term success will come from value creation, customer connection, quality, and local customisation, urging businesses to build sustainable growth models across the two regions. Drawing on TVS Motor’s own 20-year presence in Africa, where its exports rose nearly 23% in FY25, Venu said the company’s commitment and success could serve as a blueprint for expanding India–Africa business ties.