Daily News - Wednesday, 20 August 2025
Import duty on raw cotton waived off till September-end (The Economic Times)
India has suspended its 11% import duty on raw cotton until September 30 to ease domestic supply pressures and give textile producers access to cheaper global raw material, a step that also signals goodwill toward the US after Washington’s recent tariff hikes on Indian goods. The move is expected to help Indian mills secure extra-long staple cotton from the US and Egypt, which global brands in Europe and Japan increasingly demand, while also making imports of other American grades more viable despite their higher costs compared with Brazilian and African cotton. Industry leaders believe this waiver will improve competitiveness, boost textile exports to markets like the UK and beyond, and strengthen India’s position in premium global supply chains.
India profiteering from Russian oil purchases, says US Treasury Secretary (Financial Express)
US Treasury Secretary Scott Bessent accused India of profiteering from Russian oil, noting that while China’s imports have only marginally risen since 2022, India’s share has surged from under 1% to around 42%, generating an estimated $16 billion in excess profits through arbitrage by reselling cheaper Russian crude. President Trump has responded with an additional 25% tariff on Indian Russian oil imports, doubling duties to 50%, a move that could sharply raise India’s import costs and disrupt access to discounted barrels even as Washington plans to use the boosted tariff revenues to trim its debt and fiscal deficit. Despite this pressure, Indian refiners like Bharat Petroleum and IOCL remain committed to Russian barrels, which still arrive about $5 cheaper than non-Russian grades and provide strong refining margins, leaving Russian crude at nearly 40% of India’s intake with no government order yet to scale back purchases.
High seas & higher tariffs: Seafood units, acqua farms struggle to stay afloat (Financial Express)
India’s $7.38 billion seafood industry has been thrown into crisis after the US doubled tariffs on shrimp and other exports to 50%, threatening nearly ₹24,000 crore of trade and choking a sector that sustains 28 million livelihoods from coastal fishermen in Kerala to shrimp farmers in Andhra Pradesh. With the US accounting for 35% of India’s seafood shipments, exporters are facing cancelled orders, a warehouse pile-up, crashing prices (shrimp dropping from ₹450 to as low as ₹250 per kg), and a financing crunch as duties eat up working capital, while competitors like Ecuador enjoy just a 10% levy in the same market. Industry leaders are urging urgent relief in the form of working capital support, interest subvention, and loan moratoriums, while exploring alternate markets in Europe, Japan, China, and the UK, but stress that nothing can immediately replace the US market, leaving both small fishermen and large exporters squeezed between rising costs and collapsing demand.
Ban on online gaming could hit Rs 25,000-cr FDI, 2 lakh jobs at risk (Financial Express)
The government is moving to impose a blanket ban on all online money-based games through a new Bill that prescribes jail terms of up to three years and fines of up to ₹1 crore for operators, along with penalties for promoters and restrictions on financial institutions from processing such transactions. If passed, the law would devastate India’s booming online gaming industry that employs over 200,000 people, attracts ₹25,000 crore in foreign investment, generates nearly ₹20,000 crore in taxes, and sustains more than 400 start-ups, while also raising fears of a surge in illegal offshore betting platforms. The Bill simultaneously proposes a central authority to nurture e-sports and regulate “social games” without monetary stakes, but with a 40% GST levy looming and strict penalties in place, companies like Dream11, WinZO, and Games24x7 face an existential threat despite the sector’s $2.7 billion revenue in 2024.
Indian Oil signs MoU with Air India to supply sustainable aviation fuel (Financial Express)
Indian Oil has signed an MoU with Air India to supply Sustainable Aviation Fuel (SAF) after becoming the first Indian refiner certified by ICAO for such production at its Panipat plant, marking a milestone in the country’s push toward greener aviation. The refinery is being upgraded to produce 30,000 tonnes of SAF annually, with plans to convert kerosene units as well, aligning with the government’s targets of 1% SAF use in aviation by 2027 and 2% by 2028, while Air India commits to supporting India’s climate goals and IATA’s Net Zero 2050 pledge. Beyond SAF, Indian Oil is also advancing a massive green hydrogen programme, including a 10,000-tonne-per-year facility under construction with L&T and plans for an additional 70,000-tonne unit, cementing its role in India’s clean energy transition.
