Weekly News 11 - 15 December 2023
Monday, 11 December 2023 (Business Standard) India may buy more oil from UAE after COP talks
India plans to boost crude oil purchases from the UAE post-COP28 summit talks, with discussions taking place on the sidelines about re-establishing traditional supplies. Despite a 65% decline in UAE crude imports in FY24, amounting to $3.2 billion, due to increased reliance on Russian crude, both nations aim to enhance non-oil trade to $100 billion by 2030 under a 2022 free trade agreement. India's diversification away from Russian crude (33% in October) is notable, with a renewed focus on traditional West Asian partners evident in talks at COP28.
Officials from state-owned oil companies, along with global oil firms, engaged in discussions at COP28. Saudi Arabia's share in India's imports rose to 924,000 barrels per day in October, signaling a strategic shift. Additionally, the ADNOC and IOCL's August transaction, utilizing a Local Currency Settlement mechanism, aims to cut costs and improve trade predictability.
Tuesday, 12 December 2023 (The Financial Express) Retail Inflation now ‘stable’: FM
India's Finance Minister, Nirmala Sitharaman, has declared that the country's CPI inflation is now stable, attributing temporary increases to global shocks and adverse weather conditions causing demand-supply mismatches. Retail inflation remains within the 2-6% tolerance band, demonstrating a decline from 7.1% (April-October 2022) to 5.4% (2023). Additionally, core inflation, excluding volatile items, has decreased from 5.1% (April 2023) to 4.3% (October 2023).
Sitharaman credits the proactive supply-side initiatives by the government and effective demand stabilization measures by the RBI for resolving demand-supply mismatches and curbing inflation. Government actions include bolstering buffers of key food items, periodic open market releases, and directing supplies through designated retail outlets. The Reserve Bank of India projects CPI inflation to average 5.4% in FY24, indicating a positive trajectory with collaborative efforts to address economic challenges.
Wednesday, 13 December 2023 (Business Standard) India-Oman FTA talks on fast track
India's goods, including gasoline, iron, steel, electronics, and machinery, could see a substantial boost in Oman, valued at $3.7 billion, through a comprehensive free trade agreement. Currently facing a 5% import duty in Oman, these products, if included in the agreement, could benefit from duty elimination.
However, about 16.5% of Indian exports, worth $800 million, already enjoying duty-free access, may not see additional benefits. The potential reduction in import duties under the Comprehensive Economic Partnership Agreement (CEPA) could significantly enhance India's export potential and strengthen its presence in Middle Eastern economies.
Thursday, 14 December 2023 (mint) India and France in talks to step up for small hydro projects
India's Ministry for New and Renewable Energy (MNRE) and France's AFD are in discussions to enhance their collaboration on small hydropower projects, as stated by Lise Brueil, the India director of the French Development Agency (AFD).
The MNRE is keen on exploring further possibilities in small hydroelectricity projects. Brueil highlights France's experience in small hydro, emphasizing its potential with minimal environmental impact. A query to MNRE remains unanswered.
Friday, 15 December 2023 (mint) India, US discuss ways to address illicit finance risk
India and the US engage in discussions, led by Revenue Secretary Sanjay Malhotra and US Treasury Under Secretary Brian Nelson, to enhance collaboration in combating illicit finance risks.
The focus is on accelerating the global implementation of anti-money laundering standards, particularly for virtual assets, as highlighted during the India-US Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) Dialogue on 13 December 2023.
