Economy & Policy News
India walks diplomatic tightrope between Iran and US as war bites economy
India's Brics presidency faces an early challenge as Iran seeks condemnation of US-Israel strikes, while fellow members Saudi Arabia and the UAE, targets of Iranian attacks, complicate consensus
 "India walks diplomatic tightrope between Iran and US as war bites economy")
Services sectors feel ripple effects as West Asia crisis hits operations
Aviation, hospitality, travel, e-comm, q-com, logistics prepare for dent to bottomlines; IT services insulated for now
 "Services sectors feel ripple effects as West Asia crisis hits operations")
West Asia conflict likely to keep rupee under pressure amid oil surge
Third year of consecutive BoP deficit if oil stays above $100/bbl, to weigh on rupee
 "West Asia conflict likely to keep rupee under pressure amid oil surge")
West Asia war cloud over India's economic 'sweet spot' as oil prices rise
Rising crude prices and trade disruptions from the West Asia war are prompting economists to trim India's growth forecasts, threatening the economy's recent "sweet spot"
 "West Asia war cloud over India's economic 'sweet spot' as oil prices rise")
India gains most from US nod to Russian oil imports, but concerns remain
The country still faces a shortfall of 750,000 bpd of crude oil in March compared to Feb
 "India gains most from US nod to Russian oil imports, but concerns remain")
West Asia war a sword of Damocles over ₹3.6 trillion March capacity
Manufacturing projects worth over ₹1 trn nearing completion
 "West Asia war a sword of Damocles over ₹3.6 trillion March capacity")
West Asia crisis: Farmer earnings may decline if exports remain affected
Though some reports claim that authorities have started exploring alternative routes to quickly ship farm goods bound for West Asia, if the crisis continues, the losses could be substantial
 "West Asia crisis: Farmer earnings may decline if exports remain affected")
India stares at steep rise in oil import bill amid West Asia conflict
India's net oil import bill could rise by $56-64 billion annually assuming global crude averages $110-115 per barrel in FY27
 "India stares at steep rise in oil import bill amid West Asia conflict")
Industry seeks duty concessions to sell goods from SEZs to domestic mkt
The rationale behind the request is to allow fair access to sell in the domestic market at a comparable rate with FTA partner nations
 "Industry seeks duty concessions to sell goods from SEZs to domestic mkt")
West Asia crisis: India's gems & jewellery exports likely to lose sparkle
GJEPC says geopolitical tensions in West Asia have already cut India's gems and jewellery exports by 20%, warning the impact could reach $1.2 billion over the next three months
 "West Asia crisis: India's gems & jewellery exports likely to lose sparkle")
Statsguru: Economic strain in the shadow of rising West Asia conflict
Periods of major wars - both global and regional - have frequently aligned with spikes in India's inflation
 "Statsguru: Economic strain in the shadow of rising West Asia conflict")
West Asia crisis: Indian crude tanker sails out of UAE's Fujairah safely
Jag Laadki is the fourth Indian-flagged vessel to have come out of the war zone unharmed
 "West Asia crisis: Indian crude tanker sails out of UAE's Fujairah safely")
Oil prices poised to gain as West Asia conflict threatens exports
Oil prices may rise further as the US-Israel conflict with Iran threatens key Gulf energy infrastructure and keeps the Strait of Hormuz closed, triggering the biggest supply shock in years
 "Oil prices poised to gain as West Asia conflict threatens exports")
Exporters plan early shipments, explore alternate routes amid Iran war
The exporting community said that businesses are also adjusting inventory, contracts, and schedules for flexibility
 "Exporters plan early shipments, explore alternate routes amid Iran war")
Two LPG tankers head for India after crossing embattled Strait of Hormuz
The ships were granted safe transit through the strait, which has been all but closed for nearly two weeks, after a deal between New Delhi and Tehran
 "Two LPG tankers head for India after crossing embattled Strait of Hormuz")
Costlier oil could lift inflation, slow India's growth in H1FY27: Fitch
Persistently high oil prices could push up retail inflation faster than expected and slow India's economic growth in the first half of FY27, Fitch Ratings said in its latest outlook
 "Costlier oil could lift inflation, slow India's growth in H1FY27: Fitch")
USTR probes India, 59 others over imports linked to 'forced labour'
The US Trade Representative has initiated Section 301 investigations into 60 trading partners, including India, to examine whether they failed to curb imports of goods produced with forced labour
 "USTR probes India, 59 others over imports linked to 'forced labour'")
West Asia conflict: US expands India-like waiver on Russian crude oil
India was also granted a similar 30-day waiver on March 5 for purchase of Russian oil
 "West Asia conflict: US expands India-like waiver on Russian crude oil")
India's forex reserves down $11.7 bn at $716.8 bn on drop in foreign assets
India's foreign exchange reserves fell by $11.7 billion to $716.8 billion in the week ended March 6, mainly due to a decline in foreign currency assets, RBI data showed
 "India's forex reserves down $11.7 bn at $716.8 bn on drop in foreign assets")
If short-lived, conflict unlikely to dent India's macro outlook: Economists
Economists say a brief West Asia conflict may have limited impact on India's macro outlook, though risks could emerge if crude oil prices stay elevated for a prolonged period
 "If short-lived, conflict unlikely to dent India's macro outlook: Economists")