Daily News - Tuesday, 21 April 2026

India Settles Iranian Oil Trades in Yuan via ICICI Bank Shanghai (Business Today)

India has begun settling Iranian oil trades in Chinese yuan through ICICI Bank’s Shanghai branch, marking a significant shift away from the US dollar system under a temporary 30-day sanctions waiver granted by Washington. The waiver allows limited purchases of Iranian and Russian oil at sea to ease global prices, which spiked amid the US conflict with Iran. Earlier this month, Indian Oil Corporation (IOC) bought 2 million barrels of Iranian crude aboard the VLCC Jaya, valued at around USD $200 million (INR ₹1,660 crore) its first such purchase in seven years. India also permitted four Iranian oil tankers to berth for Reliance Industries, with one vessel (MT Felicity) already discharging cargo. Refiners opted for yuan payments because Iran cannot access dollar transactions due to sanctions, making the Chinese currency a workaround to avoid funds being blocked. Analysts note that while India had largely avoided Iranian oil since 2019, this move signals a cautious re-entry, though IOC has clarified it does not plan further Iranian crude purchases for now.

India Speeds Up Domestic Oil & Gas Output Amid West Asia Crisis: RBI Governor (Business Stamdard)

Speaking at Princeton University, RBI Governor Sanjay Malhotra said India has ramped up domestic oil and gas production to cushion the impact of the West Asia crisis, which affects one-sixth of India’s exports, half of crude imports, two-fifths of fertiliser imports, and nearly two-fifths of inward remittances. He noted that while oil marketing companies and the government absorbed part of the price pressures, gas rationing has begun for industrial use, with some costs passed on to consumers. India’s economy has averaged 6.1% growth over the past decade, outperforming peers like China (5.6%) and Indonesia (4.2%), compared to the global average of 3.2%. Malhotra stressed that the RBI’s monetary stance remains neutral and data‑dependent, focusing on preventing second‑round inflationary effects from supply shocks. He highlighted that fiscal consolidation has progressed steadily, with improved tax collection efficiency and better expenditure quality complementing monetary policy. The governor emphasized that India’s resilience stems from robust policy frameworks and credible institutions, but warned that prolonged disruptions could embed supply shocks into general price levels.

President Lee Meets PM Modi, Pushes Strategic Economic Cooperation between India and South Korea in Shipbuilding, AI, Defence Partnerships (Reuters)

South Korean President Lee Jae Myung began his first state visit to India in eight years on April 20, 2026, meeting Prime Minister Narendra Modi in New Delhi to push for a major boost in economic cooperation. Both countries aim to nearly double bilateral trade to USD $50 billion (INR ₹4.16 lakh crore) by 2030, up from USD $25.7 billion (INR ₹2.14 lakh crore) in 2025, according to presidential adviser Wi Sung-lac. Key areas of collaboration include shipbuilding, finance, artificial intelligence, defence, and consumer sectors, with South Korea emphasizing India’s role as a production hub in global supply chains. Seoul has requested India to expand naphtha supplies, which accounted for 8% of South Korea’s imports last year, to cushion disruptions from the Iran war, as highlighted by Trade Minister Yeo Han-koo. Data from the Korea International Trade Association shows South Korea posted a USD $12.8 billion (INR ₹1.06 lakh crore) surplus in 2025, with exports worth USD $19.2 billion (INR ₹1.6 lakh crore) and imports at USD $6.4 billion (INR ₹53,000 crore), prompting India to seek balance. Analysts note that shipbuilding could emerge as a flagship sector, aligning India’s job creation priorities with South Korea’s industrial strengths, while K‑culture consumer goods may also expand in India.

India's Premium Liquor Sales Surge 12% Despite Global Alcohol Falling 4% (News18)

India’s premium liquor sales rose 9% in volume and 12% in value in 2025, bucking the global slowdown where alcohol volumes fell 2% and value dropped 4% across 22 major markets, according to IWSR data. Despite weak consumer sentiment worldwide, India posted a 4% rise in overall liquor volume and 5% in value, driven by its expanding middle class of 150 million and rising demand for premium whiskies and high‑end white spirits. Neeraj Kumar, MD of Suntory Global Spirits India, noted that consumers are prioritising value over volume, reinforcing India’s role as a key global premiumisation market. India remains the world’s largest spirits market by volume, consuming over 410 million cases annually, though premium and luxury segments account for less than 5% due to high import duties. Global majors like Pernod Ricard reported 11% growth in India for the March quarter, making it their second-largest market globally, while Diageo also continues to shift focus toward premium offerings. Industry leaders and the Commerce Ministry see India as a bright spot amid tariff disruptions and cautious global consumers, positioning it as a priority market for premiumisation strategies.