Daily News - Wednesday, 18 February 2026
India seeks new steel export markets in Middle East, Asia amid EU carbon tax (livemint)
India, the world’s second‑largest producer of crude steel, is seeking new export markets in the Middle East and Asia to offset the impact of the European Union’s Carbon Border Adjustment Mechanism (CBAM), which came into effect in January 2026. Nearly two‑thirds of India’s steel exports currently go to Europe, but the EU carbon tax has raised costs and reduced competitiveness. Steel Secretary Sandeep Poundrik confirmed that the Ministry of Steel is exploring agreements with Middle Eastern countries where infrastructure demand is rising, as well as Asian partners. State‑run firms like Steel Authority of India (SAIL) and NMDC are also evaluating opportunities in Brazil, Argentina, Australia, and the Middle East, including acquisitions of coking coal assets in Australia and Indonesia, since 95% of India’s coking coal needs are met through imports. Industry executives warn that India must diversify quickly to compete with China, whose steel exports hit a record high in December 2025, and which plans to introduce a licensing system to regulate alloy shipments. The government is also pursuing long‑term offtake agreements for critical minerals such as limestone and manganese to secure raw material supply chains and support the sector’s resilience.
Reserve Bank of India proposes easing foreign exchange transaction norms for banks and dealers (Money Control)
On February 18, 2026, the Reserve Bank of India (RBI) released draft directions proposing to ease foreign exchange transaction norms for authorised persons. The move would give authorised banks and standalone primary dealers greater flexibility in undertaking forex transactions for hedging exposures, balance sheet management, market‑making, and proprietary positions. The RBI noted that the current framework was reviewed to reduce compliance burdens and simplify reporting obligations. Under the proposal, authorised dealers may transact directly with other authorised dealers for permitted forex activities, expanding the scope of inter‑dealer operations. This initiative is part of the RBI’s broader effort to modernize India’s foreign exchange market regulations, aligning them with global best practices while ensuring risk management. The draft guidelines are open for stakeholder feedback before final implementation, with the Department of Regulation at RBI overseeing the process.
Eli Lilly commits USD $1 Billion to India contract manufacturing (Reuters)
Eli Lilly (LLY.N) announced plans to make India a global export hub amid booming sales of its blockbuster weight‑loss drug Mounjaro. The company has already committed USD $1 billion (INR 8,300 crore) to contract manufacturing in India, with no dedicated plant yet but partnerships with local firms. Winselow Tucker, President & GM of Lilly India, said at the BioAsia conference in Hyderabad that India will be integrated into Lilly’s global supply chain, exporting drugs worldwide. Mounjaro sales in India doubled within months of launch, making it Lilly’s top‑selling medicine by value, as the country is projected to have the second‑largest obese population by 2050. Lilly also plans to introduce its Alzheimer’s drug donanemab and experimental oral obesity drug orforglipron, pending Central Drugs Standard Control Organization (CDSCO) approvals. To expand reach, Lilly has partnered with Cipla, Tata 1MG, Practo, and Apollo, while competing with Novo Nordisk’s Wegovy, which cut prices by 37% last year ahead of generic launches in India.
Venezuela crude oil returns to India as supplementary supply (The Print)
Indian refiners such as Reliance Industries and Indian Oil Corporation (IOC) began testing Venezuelan crude oil as part of their import basket. Analysts, including Sumit Ritolia of Kpler, emphasized that Venezuelan crude will remain only a supplementary supplier, not a replacement for Russian Urals, which still dominate India’s imports. Venezuela’s heavy, sour crude poses challenges due to refinery constraints, longer transit times, limited production capacity, and higher costs compared to Russian oil. The move is seen as a way to give Indian refiners bargaining leverage in negotiations, especially as Russian supply faces geopolitical uncertainties. India’s crude import strategy is overseen by the Ministry of Petroleum and Natural Gas, which continues to balance supply diversification with cost efficiency. Experts caution that Venezuelan volumes will grow only at the margin, highlighting India’s reliance on Russia and the Middle East for bulk supplies.
India likely to exclude gold from GCC trade deal to protect domestic market (CNBC TV18)
India is unlikely to include gold in its proposed free trade agreement (FTA) with the Gulf Cooperation Council (GCC), according to government sources. In the Comprehensive Economic Partnership Agreement (CEPA) with Oman, signed on December 18, 2025, India explicitly excluded gold and silver bullion from tariff concessions to protect domestic markets. Officials noted that under the India–UAE CEPA (effective May 2022), concessional tariffs on bullion imports led to a surge in gold imports, rising from USD $5.8 billion (INR 48,300 crore) in FY22 to nearly USD $16.8 billion (INR 1.40 lakh crore) in FY25. Analysts flagged misuse of concessional tariffs under the UAE deal, with some imports failing to meet rules of origin requirements, prompting regulatory tightening. The GCC, comprising UAE, Saudi Arabia, Qatar, Kuwait, Oman, and Bahrain, signed terms of reference with India earlier this month to revive FTA negotiations after nearly two decades of dormancy. Bilateral trade between India and the GCC reached USD $179 billion (INR 14.9 lakh crore) in FY25, dominated by energy imports (crude oil, LNG, LPG) and Indian exports of food products, textiles, jewellery, pharmaceuticals, and engineering goods.
