This weekend, I was lucky enough to be invited by NIFT Mumbai to the Design Mumbai 2024 Showcase at BKC. Although the event was primarily geared toward interior designers and architects, there was one section that caught my eye—and that was the showcase on innovations in textiles. From smart fabrics to cutting-edge sustainable materials, the event offered a fascinating glimpse into the future of fabric technology.
The innovations on display didn’t just highlight how fabrics are evolving in terms of performance and functionality, but also how they’re playing an integral role in the shift toward more sustainable practices in the fashion and design industries. The designs weren’t just beautiful; they were also driven by an urgent need for environmental responsibility, offering solutions to some of the most pressing ecological challenges we face today.
The Push for Sustainable Textiles: A Fashion Industry Revolution
We all know the fashion industry has its fair share of environmental baggage—resource-intensive production methods, water wastage, and carbon emissions linked to fabric manufacturing. The world’s growing concerns about climate change, pollution, and resource depletion have amplified the need for a major shift in how we produce textiles.
Thankfully, advancements in sustainable fabric technology are taking center stage. These new materials don’t just reduce environmental harm—they enhance functionality in ways traditional fabrics never could. Think biodegradable fabrics made from plant fibers, recycled textiles, and even materials derived from waste (like plastic bottles and algae). And the impact isn’t just on the environment; these innovations are setting the stage for a circular economy, where materials are repurposed, reducing waste and giving old products new life.
At the Design Mumbai 2024 Showcase, the spotlight was on how technology and sustainability can transform the fabric of the future—quite literally.
Coffee Grounds Fabric: A Fresh Brew in Fashion
One of the most intriguing innovations showcased was coffee grounds fabric—yes, fabric made from spent coffee grounds. The process involves recycling used coffee beans and transforming them into fibers that are spun into fabric. And the result? A material with some seriously impressive benefits:
Brands are beginning to experiment with coffee-based fabrics for everything from shirts and leggings to accessories, and while it’s not mainstream just yet, it’s a trend that could brew big in sustainable fashion.
Oceanic Waste Fabrics: Turning the Tide on Plastic Pollution
Did you know that over 8 million tons of plastic enter the oceans each year? This alarming statistic has inspired a wave of innovation in the fashion world. Oceanic waste fabrics are being created from marine-sourced materials like discarded fishing nets, plastic bottles, and even algae. By repurposing ocean waste, these textiles help mitigate pollution while promoting eco-conscious fashion choices. Some key examples include:
These oceanic waste fabrics not only help clean up our oceans, but they also reduce the carbon footprint of textile production, offering sustainable alternatives that don’t compromise on performance or style.
Cork Fabric: The Sustainable Material You’ve Never Heard Of
When you think of cork, you might picture wine stoppers or bulletin boards. But cork is also being transformed into an innovative fabric, and the results are truly impressive. Derived from the bark of cork oak trees, this material is not only sustainable but also lightweight, durable, and versatile. Here’s why cork fabric is becoming a star player in the sustainable textile world:
The future of cork fabric is bright, with applications spanning fashion, accessories, and even automotive interiors. It’s not just about reducing environmental impact—it’s about creating functional, beautiful products that tell a story of sustainability.
Metal Wire Woven Fabrics: Where High-Tech Meets High Fashion
In a world where wearables and smart fabrics are rapidly evolving, metal wire woven fabrics are leading the charge. By integrating metals like stainless steel, copper, and titanium into textiles, these fabrics can do things that ordinary fabric can’t:
While metal woven fabrics are still finding their place in mainstream fashion, they’re already making a huge impact in niche industries where performance and protection are paramount.
Why Sustainable Fabrics Matter Now More Than Ever
The fashion industry is one of the largest polluters on the planet, and it’s high time for change. Traditional fabric production uses massive amounts of water and energy, contributes to microplastic pollution, and relies on petrochemical-derived fibers that are harmful to the environment. But with the rise of sustainable textiles, powered by advanced technology, there’s hope for a greener future.
The materials highlighted at Design Mumbai 2024—whether derived from ocean waste, coffee grounds, or cork—show that it’s possible to have functional, stylish fabrics that don’t come at the planet’s expense. These innovations prove that we can meet the demands of modern consumers without compromising on sustainability.
As the demand for sustainable products continues to rise, it’s clear that the future of fashion is looking more eco-friendly, tech-savvy, and circular than ever before. The shift is on, and the fabric of tomorrow is already here.
Source: Times of India
The expansion unit will focus on producing cotton-polyester-spandex core-spun yarn to meet rising demand, according to a filing with the stock exchange today
The expansion unit will focus on producing cotton-polyester-spandex core-spun yarn to meet rising demand, according to a filing with the stock exchange today. The project, expected to complete by December 2025, will be financed with 30% equity (Tk29.19 crore) from retained earnings and 70% debt (Tk68.11 crore) from bank borrowings, the disclosure read. The expansion project will feature state-of-the-art ring spinning production facilities equipped with European and Japanese machinery. According to the disclosure, approximately 60% of the yarn produced will be utilised in-house for denim production, while the remaining 40% will cater to the deemed export market. The company estimates a payback period of 4.53 years for the expansion. Tanvir Ahmed, managing director of Envoy Textiles, told The Business Standard, "Due to the growing demand for blended yarn, the company decided on the expansion." He highlighted that this expansion will more than double the company's blended yarn production capacity. "Our current production capacity for blended yarn is approximately 4,380 tonnes per year, or 12 tonnes per day. With the new unit, this will increase to 25 tonnes per day," he said. Now, the company will appoint a contractor for the civil works of the project, and at the same time, it will open a letter of credit to import capital machinery, he added. Profit surges by 134% in Q1 Envoy Textiles Limited reported a 134% year-on-year surge in profit in the first quarter of the current fiscal year (July–September), posting a net profit of Tk25.33 crore, up from Tk10.82 crore in the same period last year. The company also achieved a 40% increase in revenue, which rose to Tk439.94 crore during the quarter. Earlier, Envoy Textiles recommended a 20% cash dividend for its shareholders for the 2023-24 fiscal year. It had paid a 15% cash dividend for its shareholders for FY23. According to the disclosure, it's EPS increased by 84% to Tk3.58 year-on-year, which was Tk1.95 by the end of FY23. The net profit of the company stood at Tk60.04 crore in FY24, up from Tk32.73 crore compared to the previous fiscal.
Source: The Business Standard
In a year of tepid freight traffic, goods ferried via the Indian Railways registered a growth of 1.5 per cent during October to 131 million tonnes (mt), according to railways ministry data. In contrast, the railways had achieved a cargo growth of 8.5 per cent in October 2023. According to officials, coal traffic on the railway network increased by 4.3 per cent in the previous month. The commodity accounts for 50 per cent of the total freight volumes of the railways and is expected to fetch the national transporter Rs 91,000 crore in 2024-25, according to government estimates. The previous month was also the hottest October in over a century. Volumes of containers grew by 7.7 per cent in the previous month, while miscellaneous goods and clinker traffic increased by 7 per cent each. So far in this financial year (FY25), freight volumes on Indian Railways stand at 906.9 mt, which is merely 2.2 per cent higher than the previous year. In the commodity mix, key materials like coal have registered a 6 per cent growth in the current financial year, while iron ore (second largest by volume) traffic has grown by 1.1 per cent. Container volumes across the financial year have grown by 3.3 per cent, and miscellaneous goods – a benchmark for the railways' efforts at freight basket diversification - have remained flat at 0.9 per cent.According to officials, significant capacity augmentation activity is the focus right now, when mobility on the railway network generally tends to lag on account of new construction. The Union Cabinet, in the past few weeks, has also sanctioned a number of major expansion projects to increase capacity. The Centre for Monitoring Indian Economy (CMIE) anticipates freight traffic on railways to rise year-on-year by 3.3 per cent in 2024-25. “This is quite a deceleration compared to the 15 per cent rise seen in 2021-22, 6.6 per cent rise in 2022-23, and a 5.2 per cent growth registered in the previous financial year,” it said in a forecast in October. The ministry is eyeing Rs 1.8 trillion from its freight operations this financial year, which is 6.5 per cent higher than the revised estimates, but the same as the budget estimates in the previous year.
Experts have opined in the past that the national transporter registering tepid freight growth, which is the primary revenue generator used to subsidise passenger travel, does not augur well for its Mission 3000, under which it aims to carry 3000 mt of goods by 2030.
Source: Business Standard
Synopsis The Central Board of Indirect Taxes and Customs (CBIC) has reduced the insurance requirement for stored customs cargo from 10 to 5 days, improving cash flow for Customs Cargo Service Providers (CCSPs). Additionally, CCSPs meeting international standards will no longer need to renew licenses for handling goods, as their licenses will align with AEO authorization, simplifying operations for logistics operators. The Central Board of Indirect Taxes and Customs (CBIC) Friday reduced insurance requirement for stored custom cargo to five days from 10 days. It also streamlined licence requirement for Customs Cargo Service Providers (CCSPs). This period has been reduced to 5 days, enhancing cash flow for these entities by lowering costs, the finance ministry said in a statement issued Friday. CCSPs meeting international operational standards (AEO) will no longer need to undergo license renewal for handling goods. Their licenses will be synchronized with their AEO authorization, easing business operations for logistics operators.
Source: Economic Times
China has put trade talks onto the proposed agenda for the COP29 summit, a U.N. document showed, raising the prospect that the issue could disrupt the start of global climate talks. The draft agenda for this year's climate summit, published on Friday, includes a Chinese proposal, previously reported by Reuters, for talks on carbon border taxes and other "restrictive trade measures" that Beijing says hurt developing countries. Delegates at the conference must adopt the summit agenda by consensus as their first task when the COP29 talks begin on Nov. 11 in Baku, Azerbaijan. But some diplomats said the European Union is likely to oppose the Chinese proposal, which Beijing submitted on behalf of the BASIC group that also includes Brazil, India and South Africa. Failure to approve the agenda could delay the start of negotiations - cutting into the time left for the main task of approving potentially hundreds of billions of dollars in new funding to address climate change. "We will speak about it, relentlessly," South Africa's Environment Minister Dion George told Reuters. BASIC countries have been strong critics of the EU carbon border policy, which from 2026 will impose fees on imports of high-carbon goods, including steel and cement. "We are displeased about it and we don't think it's good for our economy," George said, adding that South Africa and China are having "intense conversations" with the EU. EU Climate Commissioner Wopke Hoekstra said he took countries' concerns seriously. But he dismissed Beijing's opposition to the EU carbon border levy. "Given all the interactions we've had, and knowing the Chinese for always being very well-prepared and knowing the exact workings of the system, I don't find that a very credible strategy to pursue," Hoekstra told Reuters in a joint interview with other media outlets. The EU says its carbon border levy is not a trade measure, but rather a climate policy to prevent European industries from being undercut by cheap imports from countries with lax environmental rules. The EU has previously said disputes over trade should be addressed at the World Trade Organization. One European climate negotiator expressed concern that the BASIC proposal was intended to prevent discussions at COP29 on cutting CO2 emissions and finance from moving forward. A fight over the agenda at a round of U.N. climate negotiations in 2023 did not get resolved for more than a week, killing off progress at the talks.
Source: Business Standard
Union Commerce and Industry Minister Piyush Goyal on Friday said India's growth story will take the country's USD 3.5 trillion economy now to USD 35 trillion in the next 25 years. Addressing the inaugural session of Amazing Goa Global Business Summit 2024, Goyal said that the 21st century belongs to India and it was on track to become the third largest world economy in three years. Chief Minister Pramod Sawant, former Union minister Suresh Prabhu and others were present during the inaugural function of the summit, an initiative of the Vibrant Goa Foundation. "Prime Minister Narendra Modi has rightfully said the 21st century is India's century. He also said that the 21st century has stopped being small. What we do today is the best and the biggest," Goyal said. "We are working with a focused approach to make India a developed and prosperous nation by 2047 when we celebrate 100 years of Independence," he said. He said India's growth story will take the economy from USD 3.5 trillion to USD 35 trillion in the next 25 years. "This 10-fold growth is due to India's strong economic fundamentals. We are the fastest-growing economy. Low inflation, strong foreign exchange reserves and a welcoming environment for the investors have brought twice the FDI to India in the last 10 years compared to the earlier decade," he said. Goyal said the country moved from the "fragile five" economies in 2014, when the BJP-led NDA came to power at the Centre. Large parts of the world had written India off, and people did not have the confidence that it could grow and play a role in global economics, he said. "We were the 10th largest GDP in 2014, and there was very little hope, very low ambition and aspiration amongst the people of India. I am happy to share with you that under PM Modi's leadership, India has moved to the fifth largest economy in the world, from the fragile five to a powerful force. In the next three years, we will become the world's third-largest economy," he said.
The minister further said India has an environment conducive to investment, and there is a focus on ease of doing business, reducing compliances, and decriminalisation of several laws which were detrimental to the business-friendly environment.
"India today is seen as a trusted and reliable partner in a global supply chain," he said.
Chief Minister Pramod Sawant said Goa is determined to see that it contributes to PM Modi's vision.
"Today, we are here to unveil the new Goa, which is ready to embark on the future as a vibrant investment destination. We are moving beyond tourism to make the state a thriving hub of emerging industries that will highlight Goa on a global map," he said.
Former union minister Suresh Prabhu said under the leadership of PM Modi, India has been standing in terms of risk analysis as one of the least risky countries.
The three-day Amazing Goa Global Business Summit 2024 will have various knowledge sessions, business-to-business meetings and other events to attract investment in the coastal state.
Source: Business Standard
The rupee depreciated to a fresh low of 84.38 per dollar on Thursday as foreign investors continued to sell domestic equities and crude oil prices rose. The caution ahead of the US Federal Reserve meeting outcome further weighed on the Indian unit. Market participants said that with strengthening dollar and rise in US yields after the US presidential election results, the Reserve Bank of India (RBI) has been allowing gradual depreciation of the rupee in line with its Asian peers. The local currency had touched a new low of 84.28 per dollar on Wednesday after Republican candidate Donald Trump won the 47th United States (US) presidential election decisively, defying expectations and securing a greater number of votes than Kamala Harris. “It seems the RBI has gone slow on its sales of dollar after the rise in US yields, expecting more outflow from FPIs in the coming months… With Asian currencies down, US dollar up, and yields up, the RBI does not have any option but to allow the rupee to fall to ensure that REER (Real Effective Exchange Rate) remains competitive for our exports. If the FOMC (Federal Open Market Committee) is a bit hawkish in its tone or does not cut rates today, or says it will not cut in December, then we could see another fall in rupee to the extent of 84.50 in a slow and steady up move,” said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. Trump is seen to strengthen the dollar and push US yields higher, driven by anticipated populist measures that could increase borrowing, inflation, and yields. Trump has pledged to implement a 10 per cent tariff on imports from all countries and impose a 60 per cent duty on Chinese goods.
Source: Business Standard
Finance Minister Nirmala Sitharaman announced a new credit guarantee scheme for MSMEs, offering collateral-free loans up to Rs 100 crore. The scheme aims to address the difficulties faced by MSMEs in obtaining term loans for machinery and expansion. Sitharaman highlighted that banks will implement their own credit assessment models, eliminating the need for third-party guarantees. Union Finance and Corporate Minister, Nirmala Sitharaman on Saturday said that the Ministry of Micro, Small and Medium Enterprises (MSMEs) will get collateral-free loans of upto Rs 100 crore through a new credit assessment model by PSU banks. Speaking at the National MSME Cluster Outreach Programme in Bengaluru, Sitharaman said that the grievances of MSMEs will be solved after the introduction of a new credit guarantee scheme which will be introduced in the cabinet soon. "The grievance, which has been for a very long time, is that MSMEs get working capital from banks, they don't get term loans, loans for plant and machinery. Now, with this guarantee, which was announced in the budget, for up to 100 crores, the guarantee will be provided, even if you are going to borrow more from the banks, for the first 100 crores, the guarantee will be given. And therefore you are going there collateral-free to that extent," she added. Going further, the Union Finance Minister said, "You don't even need a thirdparty guarantee. No collateral, no third-party guarantee. The government gives you the guarantee for up to 100 crores." She added that the banks will develop a new credit assessment model which will help the MSMEs. "Now we have announced in this budget that banks will do the credit assessment within themselves. Each bank will have their own credit assessment model," she said explaining the benefit of the new assessment system. Going further, the Union Finance Minister said that e-commerce trade hubs are also being set up with private partnerships which will facilitate international trade and export-related services. She said that 20 industrial clusters will be covered with the opening of these six new branches of Small Industries Development Bank ofIndia (SIDBI) and it will help in strengthening the MSMEs in Karnataka. She said that SIDBI's branches across Karnataka have an outstanding portfolio of Rs. 1,169 crore with virtually nil NPAs. The capabilities of the industries not only in Karnataka but the whole nation will be strengthened due to the direct finance facilities of SIDBI, she added.
Source: Economic Times
Synopsis Former Indian Foreign Secretary expresses optimism about Donald Trump's second term as US President. The article highlights the strengthening of India-US ties during Trump's first term, citing advancements in defense cooperation, trade, and the Quad. The author believes that India is well-positioned to navigate a second Trump presidency and further enhance the bilateral partnership. In electoral terms, Republican candidate Donald Trump's win is nothing short of a miracle. It's rare for a candidate to have lost a re-election bid and then make a comeback four years later to take back the White House. The US presidential polls have been closely watched globally for many reasons not least because of the near-assassination attempt on Trump in July and multiple threats thereafter. There were dramatic events surrounding the exit of incumbent President Joseph Biden from the US presidential race, giving Vice President Kamala Harris a shot at the presidency. All this against the backdrop of a sharp polarisation of the US polity, throwing up the question of whether the losing side would accept the verdict, especially since the polls were deemed a race too close to call. US presidential polls have been closely followed because of the US' preponderance in global matters. Despite the US power being perceived as diminished by some quarters, its imprint on global matters holds strong. There are many countries that look to the US as the only power with the power and capacities to lead during difficult times. While many parts of the world may view a Trump presidency warily, in India, a Trump return is not viewed with such trepidation. The reason is simple: we have dealt successfully with the vicissitudes of a Trump Presidency before and we believe we have the measure of him as he undoubtedly has of us. India's relative confidence stems from the fact that it has dealt with both Republican and Democrat administrations and ties have only grown stronger with every successive presidency. The US is today an indispensable partner for India bilaterally and globally - a major source of critical technology, investments, a major military partner, one of India's top trading partners, a key energy source of fossil and newer varieties, a major education destination for students, a significant source of foreign remittance and home to almost 4.8 million Indian-origin Americans. Trump, with all his quirkiness, did his bit to place India-US ties on a solid foundation during his first term in office Among the major contributions of the previous Trump presidency was the momentum imparted to the Quadrilateral Security Dialogue (Quad). In 2017, there was a revival of this framework, at the official level and elevated to the foreign ministerial level in September 2019. This laid the foundations for subsequent Quad Leaders' summits starting 2021. Again, it was under Trump's watch that the US' Hawaii-based Pacific Command was rechristened the Indo-Pacific Command. Other key developments included the start of the 2+2 dialogue format that brought together the defence and foreign ministers of the two countries to discuss key issues. It was during the first 2+2 dialogue that India and the US signed the Communications Compatibility and Security Agreement, dealing with secure military communication and increasing the scope for inter-operability. India was included among the top-tier of countries (the third in Asia after Japan and South Korea) entitled to licence-free exports, re-exports, and transfers under Licence Exception Strategic Trade Authorisation. On trade, India did face some challenges but we used those to weld stronger economic ties with the US. A case in point is the start of fuel imports from the US to bridge the trade deficit gap which was in India's favour. The US, under Trump, held focus world attention on business prospects in India through the Global Entrepreneurship Summit (GES) in Hyderabad in 2017. The GES gathered entrepreneurs, investors and business leaders from around the world. Through networking, mentoring, and workshops, GES aimed to empower entrepreneurs to pitch their ideas, build partnerships, secure funding, and create innovative goods and services that will transform societies. One area that the two countries can work on is on reaching a trade agreement. Talks had taken place between officials from India and the US and the basis of an agreement had already been reached. We can pick up from where we left off and conclude a win-win deal for both sides. A second area for collaboration is critical and emerging technologies. India and the US have made a start in this area in 2023. As a country with the fifth-largest economy and exceptional human resources potential, India's appetite for technology to catapult it into the league of developed nations by 2047 is enormous. It is the US that India is looking to for these critical technologies. The initiative for critical and emerging technologies aims to foster co-development and co-production, and ways to deepen connectivity across the bilateral innovation ecosystems. Biotechnology, advanced materials and rare earth processing technology have been identified as areas for future cooperation. While Trump did have issues with what he perceived to be high tax barriers in India, the two sides kept the relationship steady. This was because both sides understood what the other brought to the partnership which they considered invaluable. While India-US ties will require work to keep it secure, I have every reason to be optimistic about Trump 2.0. Prime Minister Modi was right when he said at the famous 'Howdy Modi' rally with Trump at Houston, 'abki baar Trump sarkar'.
Source: Economic Times
In his keynote address at the silver jubilee celebrations of the Aditya Birla Group's scholarship programme in Mumbai, he said India's appetite to explore the world has also grown, be it in tourism, education or work possibilities. A focus on economic diplomacy has become one of the key changes in Indian foreign policy which is now fundamentally purposed to serve national development and security, External Affairs Minister S Jaishankar said at an event here on Sunday.
In his keynote address at the silver jubilee celebrations of the Aditya Birla Group’s scholarship programme in Mumbai, he said India’s appetite to explore the world has also grown, be it in tourism, education or work possibilities. “This deeper linkage between the external world and our national endeavours offers us crucial opportunities to accelerate the path towards a Viksit Bharat. In fact, we take it so seriously that I can declare that foreign policy now has fundamentally purposed to advancing national development, apart from ensuring national security,” Jaishankar said. The two goals are of course closely linked, he said. “Therefore, much of our diplomacy is dedicated towards promoting exports, attracting investments, sourcing best practices, identifying technologies and expanding tourism,” the external affairs minister said, adding the cumulative impact is to increase employment opportunities at home. He said that there are different ways of achieving these objectives and the most basic is to “promote the Indian brand and strengthen international confidence in partnering with us”. “Given the diversity of our country, it is necessary to do that at a state level as well,” Jaishankar added. Noting that it is the business attraction that drives foreign investors and potential projects, he said their inclinations are usually strengthened by a “This focus on economic diplomacy has, in fact, become one of the key changes in our foreign policy in contemporary times. The international situation is also ripe today for more strenuous efforts in that direction. The Covid experience brought home to the world the dangers of depending on a limited geography,” Jaishankar said. “Our interactions with the world and interests in it have grown proportionately… the world is today increasingly appreciating the India story,” he added.
The external affairs minister also said, “Today there is a perceptible interest in engaging with us, reflected in the steady flow of high-profile visitors and businesses. Our own very appetite to explore the world has also grown, be it in tourism, education or work possibilities.” “As we enter the era of AI (artificial intelligence), who captures, processes and deploys your data is of utmost importance,” he said.
Data privacy and cyber security are consequently paralleling reliable supply chains as a global priority. That manufacturing and data are also more deeply fused is yet another reality to be taken into account, Jaishankar stated.
“So, in this scenario, India has an opportunity to board the manufacturing bus that we missed to some extent in the past. It is incumbent on us to develop the logistics, the infrastructure and the business environment to promote greater industrial production,” he said.
Stating that no nation can truly develop in a unidimensional manner, and large ones, in particular, like India, he said, “We must have some basic self-sufficiency.” “That is why we speak of Atmanirbhar Bharat. Otherwise, in an era of weaponised economics, we leave ourselves seriously open to vulnerabilities,” Jaishankar remarked.
According to him, India currently faces two big challenges ahead — “the scale of our producers and the limits of our technology — both are changing with each passing year and are indeed interlinked in many ways”.
For Bharat to rise, he said, it must develop deep technology strengths and create the capacity to research, to design and to innovate, and that will only happen when manufacturing expands and the industrial culture strikes deep roots.
“After all, we must be safeguarded from unfair competition during that process, especially if they could have a strategic intent. Global engagement cannot be argued on narrow economic merits alone without any regard to its social and national security consequences. Indeed, that is one of the takeaways from recent developments in the United States,” Jaishankar added.
favourable enabling environment and a more granular understanding of India’s plans. Technology flows and best practices are also painstaking two-way exercises that require both ends to appreciate their full potential, he said.
Source: Financial Express
India's export of fuels like diesel to the European Union jumped 58 per cent in the first three quarters of 2024, with a bulk of them likely coming from refining discounted Russian oil, according to a monthly tracker report. The EU/G7 countries in December 2022 introduced a price cap and an embargo on the imports of Russian crude oil in a bid to cripple Kremlin's revenue and create a vacuum in its funding for the invasion of Ukraine. However, a lack of a policy on refined oil produced from Russian crude meant that countries not imposing sanctions could import large volumes of Russian crude, refine them into oil products and legally export them to the price-cap coalition countries. India has become the second biggest buyer of Russian crude oil since the invasion, with purchases rising from less than one per cent of the total oil imported in the pre-Ukraine war period to almost 40 per cent of the country's total oil purchases. The rise was primarily because Russian crude oil was available at a discount to other internationally traded oil due to the price cap and the European nations shunning purchases from Moscow. Fuel exports were, however, at full price.
"Capitalising on the refining loophole, India has now become the biggest exporter of oil products to the EU. In the first three quarters of 2024, exports to the EU from the Jamnagar, Vadinar (in Gujarat) and new Mangalore refinery - which are increasingly reliant on Russian crude - saw a 58 per cent year-on-year rise further," the Centre for Research on Energy and Clean Air (CREA) said its latest report. Reliance Industries Ltd has oil refineries at Jamnagar while Russia's Rosneft-backed Nayara Energy has a unit at Vadinar. Mangalore Refinery and Petrochemicals Ltd (MRPL) is a subsidiary of the state-owned Oil and Natural Gas Corporation (ONGC). This, it said, amplified "the fact that EU Member States continued imports are expanding the refining loophole and Russian revenues from crude exports to third countries". Europe typically imported an average of 154,000 barrels per day (bpd) of diesel and jet fuel from India before Russia's invasion of Ukraine. This has almost doubled. While CREA did not give an absolute number for imports, the European think tank had in a previous report stated that Euro 8.5 billion of price cap coalition countries' imports of oil products in 13 months to December 2023 were made from Russian crude. These imports in 13 months were equivalent to 68 per cent of the EU's annual commitment to aid Ukraine between 2024 and 2027. "In the 13 months since the oil price cap took effect (in December 2022), over one-third of India's exports of oil products to sanctioning countries was derived from Russian crude (EUR 6.16 billion or $6.65 billion)," the Finland-based CREA had said in the previous report.
While there are no restrictions or sanctions on buying/using Russian crude oil and exporting fuels like diesel derived from it, the Group of Seven (G7) rich nations, the European Union and Australia - called the price cap coalition countries - first set a crude price cap of USD 60 per barrel starting December 5, 2022, and later on products like diesel to keep the market supplied while limiting Moscow's revenue. CREA in the latest report said India, the world's third largest oil-consuming and importing nation, in October bought Euro 2 billion worth of crude oil from Russia, down from Euro 2.4 billion in the previous month. "China has bought 47 per cent of Russia's crude exports (in October), followed by India (37 per cent), the EU (6 per cent), and Turkey (6 per cent)," it said.
"India was the second-largest buyer of Russian fossil fuels in October, contributing 19 per cent (EUR 2.6 billion) to Russia's monthly export earnings from its top five importers. An estimated 77 per cent of India's imports (valued at EUR 2 billion) comprised crude oil." In September, India contributed 21 per cent (EUR 2.8 billion) to Russia's monthly export earnings from its top five importers. Almost 85 per cent of India's imports (valued at EUR 2.4 billion) comprised crude oil. "From December 5, 2022, until the end of October 2024, China purchased 46 per cent of all Russia's coal exports, followed by India (17 per cent), Turkey (10 per cent), South Korea (10 per cent), and Taiwan (5 per cent) to round off the top five buyers list," the agency said.
India is more than 85 per cent dependent on imports to meet its crude oil needs.
In October, the discount on Russian Urals grade crude oil increased 77 per cent to an average of $5.14 per barrel compared to Brent crude oil. The discounts on the ESPO grade narrowed by 5 per cent and traded at an average discount of $4.58 per barrel, while that on the Sokol blend widened by 8 per cent to $6.77 a barrel. According to CREA, 34 per cent of Russian seaborne crude oil and its products in October were transported by tankers subject to the oil price cap. The remainder was shipped by 'shadow' tankers and was not subject to the oil price cap policy.
Cargoes of Russian crude can access western services like insurance and shipping only if sales are capped below $60 a barrel. To circumvent this, a dark or shadow fleet of oil tankers emerged. The shadow fleet consists of second-hand decrepit oil tankers with opaque ownership structures that make it difficult to ascertain who controls them or forces them to follow Western laws. CREA said, "83 per cent of the total value of Russian seaborne crude oil was transported by 'shadow' tankers, while tankers owned or insured in countries implementing the price cap accounted for 17 per cent of the total value of Russian crude exported in October".
There have been calls given for preventing growth in 'shadow' tankers that are immune to the oil price cap policy.
Source: Business Standard
India is an important trade partner for Peru, and a free trade agreement (FTA) with the South Asian giant would complement the trade relationship Peru already enjoys with China. Peru is poised to finalise a significant trade deal with India in 2025, marking a major step in its efforts to strengthen economic ties with the world’s two most populous nations. This potential agreement follows a series of negotiations that have been ongoing for several years and had been briefly paused due to Peru’s 2024 elections. According to Peruvian Minister of Foreign Trade and Tourism Ursula Leon, the government aims to resume negotiations with India, to complete the deal by next year. India is an important trade partner for Peru, and a free trade agreement (FTA) with the South Asian giant would complement the trade relationship Peru already enjoys with China. Since 2009, Peru has had an FTA with China, one of the largest economies in the world. The addition of India to this list would create a powerful economic bloc for Peru, potentially opening up new markets for its exports, particularly in areas such as gold, minerals, and agricultural products. Trade between Peru and India has seen a significant uptick in recent years, driven largely by the sale of gold from Peru to India. From January to September 2024, Peru’s exports to India surged by 77 per cent, reaching an impressive $3.5 billion. This sharp increase highlights the growing economic ties between the two countries, and an FTA could further boost this trade by reducing tariffs and increasing access to each other’s markets. Peru, already the world’s third-largest copper producer, is seeking to expand its trade footprint globally, and establishing robust ties with both India and China would diversify its export destinations and reduce its dependence on a single trade partner.
Negotiations with Indonesia and China
In addition to India, Peru is also negotiating a free trade agreement with Indonesia, the world’s fourth-most populous nation. Indonesia, with a population of over 280 million people, represents a promising market for Peruvian goods, particularly copper, agricultural products, and processed food. Minister Leon expressed hope that negotiations with Indonesia would make substantial progress during the upcoming Asia-Pacific Economic Cooperation (APEC) forum in Lima, underscoring the importance of the deal for Peru’s regional trade strategy. Moreover, Peru is updating its existing free trade agreement with China, which continues to be a cornerstone of its international trade policy. The updated deal will reflect the evolving economic landscape and ensure that both nations can continue to benefit from their strong trade relationship.
Strengthening Ties with Brazil
Peru is also working towards enhancing its economic relationship with Brazil, its largest trading partner in South America. While negotiations for a potential FTA have been delayed due to the pending anti-corruption protocol since 2016, Leon emphasized the importance of this clause in ensuring transparency and fairness in the agreement. As both countries share vast natural resources, especially in the mining sector, a strengthened economic partnership could further boost trade, particularly in the commodities market.
Looking Ahead to 2025
As Peru continues to push for these free trade agreements with India, Indonesia, and Brazil, the government is focused on building stronger international relations that will boost economic growth and secure new markets for its key exports. With a growing trade footprint in Asia and a clear focus on strengthening ties within South America, Peru’s economic future looks promising as it aligns itself with some of the world’s most dynamic economies. Peru’s strategy to secure free trade agreements with both global giants and regional neighbours aligns with its broader goal of diversifying its economy and reducing its reliance on a narrow range of trade partners. As negotiations advance with India and Indonesia, the coming years could usher in a new era of trade for Peru, benefiting its farmers, miners, and manufacturers alike.
Source: Financial Express
