Daily News - Tuesday, 3 March 2026
Canada’s Prime Minister Mark Carney seals uranium deal with India, targets USD $51 Billion trade by 2030 (Bloomberg)
Canadian Prime Minister Mark Carney concluded his visit to New Delhi with a landmark uranium supply deal and a pledge to deepen bilateral ties with India. Carney noted that four Canadian ministers had led delegations to India in the past year, marking more engagement than in the previous two decades combined. The leaders’ 4,500‑word joint statement emphasized cooperation against violent extremism, organized crime, drugs, and extortion, but focused primarily on trade and energy. The agenda includes expanding Canadian exports of uranium, LNG, critical minerals, and oil, with a target to boost bilateral trade to CAD $70 billion (USD $51 billion) by 2030. Energy stocks rallied in Canada, with Cameco Corp. rising 6.5% after announcing the uranium deal with India, while Air Canada shares fell 6.7% amid Middle East conflict‑related cancellations. Carney will next travel to Australia, continuing his push to secure new export markets and investment opportunities.
Indian Commerce Ministry reviews crisis in shipment delays amid Israel-Iran conflict (Business Today)
Indian exporters are under pressure as the Israel-Iran conflict disrupts shipping routes, raising freight and insurance costs and delaying shipments. The Federation of Indian Export Organisations (FIEO) President SC Ralhan warned that rerouting vessels via the Cape of Good Hope could add 15-20 days to delivery times for Europe and the US, sharply increasing costs. The Commerce Ministry has convened meetings to monitor time‑sensitive sectors like apparel, leather, rice, and electronics, while the All India Rice Exporters Association reported 2-4 lakh tonnes of Basmati rice stuck at ports during peak Ramadan demand. Exporters also flagged rising marine insurance premiums and crude oil shocks, which could pressure the rupee and widen the current account deficit. At the same time, RBI Deputy Governor Poonam Gupta stressed that India’s economy remains marked by stable, accelerating growth, with GDP averaging 7.7% over the past four years, inflation below 5%, and a CAD at 0.75% of GDP. She highlighted that per capita income has risen nearly tenfold from USD $274 (INR ~22,000) in 1981 to USD $2,700 (INR ~224,000) in 2024, and is projected to reach USD $4,346 (INR ~360,000) by 2030, supported by a resilient banking sector and fiscal consolidation.
50% of India’s crude, 80% LPG at risk via Hormuz amid Iran conflict (Outlook Business)
India’s energy security faces fresh risks after US-Israel strikes on Iran (28 Feb 2026) escalated tensions in the Strait of Hormuz, through which 50% of India’s crude oil and 80% of its LPG imports transit. According to Kpler data, India imported 2.03 million tonnes of LPG in February 2026, of which 1.66 million tonnes came from Gulf suppliers (UAE, Qatar, Kuwait, Saudi Arabia), underscoring heavy dependence on Hormuz. Analysts note India has a crude buffer of ~100 million barrels, including strategic petroleum reserves at Mangalore, Padur, and Visakhapatnam, covering 40–45 days of imports, but no strategic LPG reserves, leaving households exposed. JM Financial warned that if Hormuz is disrupted, Brent crude could rise above USD $90 (INR ~7,500) per barrel, and a wider conflict could push prices past USD $100 (INR ~8,300), adding USD $2 billion (INR ~166B) to India’s annual import bill for every USD $1 increase. The Palau‑flagged tanker Skylight, with Indian crew onboard, was attacked in Hormuz, highlighting operational risks, while Oman’s Duqm port also faced drone strikes, showing regional spillover. Analysts like Nikhil Dubey (Kpler) suggest Russian oil floating in the Arabian Sea may cushion crude supply, but warn that US trade conditions tied to India’s purchases from Moscow could complicate this fallback.
India’s current account deficit (CAD) widens to USD $13.2 Billion (INR 1.1T) in Q3 FY26: RBI (Business Standard)
India’s current account deficit (CAD) widened to USD $13.2 billion (INR ~1.1 trillion), or 1.3% of GDP, in Q3 FY26, according to Reserve Bank of India (RBI) data. This compares with USD $11.3 billion (INR ~940B), or 1.1% of GDP, in the same quarter last year, driven by a sharp rise in the merchandise trade deficit to USD $93.6 billion (INR ~7.7T) from USD $79.3 billion (INR ~6.6T). The capital account balance also slipped into a USD $10 billion (INR ~830B) deficit, reversing a USD $2.1 billion (INR ~174B) surplus in Q2, due to net outflows in FDI (USD $3.7B / INR ~307B) and FPI (USD $0.2B / INR ~16.6B). On the positive side, net services receipts rose to USD $57.5 billion (INR ~4.8T), supported by IT and business services, while remittances increased to USD $36.9 billion (INR ~3.1T) from USD $35.1 billion (INR ~2.9T). Icra Chief Economist Aditi Nayar cautioned that the unusually high January trade deficit and rising crude oil prices from the West Asia conflict could limit seasonal improvement in Q4. Foreign exchange reserves fell by USD $24.4 billion (INR ~2T) on a balance‑of‑payments basis, compared with a USD $37.7 billion (INR ~3.1T) depletion in Q3 FY25.
