India's Boom in the oil industry

 India and Russia Oil Trade

In recent times India has seen great boom in oil production due to Russia and main reason is the Ukraine-Russia war.As we all know that since a long time Ukraine-Russia war is on due to many sanctions from the west The Russian economy has been impacted a lot but that's one side of the story.Let's discuss what has India got from this war in this blog.

1.India records major boost in oil imports- 

After falling sequentially in june,India's Russian oil imports in July recovered to almost touch the all-time high level of 1.93 million barrels per day seen in May,thanks to a jump in import volumes of Moscow's flagship Urals crude,data shared by energy cargo tracker Vortexa showed.

2. How India turned Russia new Oil buyer?

Russia began offering deep discounts on its oil exports as major Western economies started wesning themselves off Moscow's crude.Indian refiners lapped up the opportunity, snapping up the discounted barrels in huge quantities resulting in Russia emerging as India's largest source of crude.From a share of less than 2 per cent in India's oil imports prior to the war in Ukraine,Russian crude now accounts for over 40 percent of Delhi's oil import pie.

 3.Plateauing imports-

Huang was of the view that oil trade between India and Russia is too lucrative for both the countries to ignore.

Recently,Indian refiners have been facing currency issues while making payments from crude oil cargoes,which some say may impact the trade.

4.Trade in June 

During June 2023, of the total 1.798 mb/d of imports,the Urals grade accounted for around 1.35 mb/d followed by 140,000 bpd of Sokol(Sakhalin I).Varandey(116,00 bpd),ESPO blend(114,000 bpd),Siberian Light (51,000 bpd)

and Novy Port Light(31,000 bpd).

India and Uae :: The New Beginnings.

INDIA And UAE as Emerging Partner.

In this blog we are going to discuss the local currency trade between India and UAE. As we all know that India and UAE are emerging partner in the Middle East,in the recent times this two countries have traded in several commodities apart from trade their geopolitical relations have flourished over the past span of time.

1. India and UAE:

HOW  Are INDIA's Bilateral Relations With UAE

• India and the UAE established diplomatic relations in 1972.
• The greater push has been achieved in bilateral relations when the visit of  India's Prime Minister to the UAE in august 2015 marked the beginning of new strategic partnership between two countries.
• This gave momentum to launching negotiations for an India and UAE comprehensive economic partnership agreement.

2.The recent signing of the India and UAE Comprehensive Economic Partnership Agreement(CEPA)

What's the Economic Significance of the UAE?

• The UAE has emerged as an important economic hub not just within the context of the Middle East/West Asia,but also globally.
• In recent years, the UAE,through its 'Vision 2021', has sought to diversify its economy and reduce its dependency on oil.
• Since 2012,growth has been led,according to a World Trade Organisation document,by the non-hydrocarbon sectors reflecting the successful diversification of the economy.
• A trade agreement is also and an enabler for two-way investment flows.The UAE'S investment in India is estimated to be around U.S. $11.67 billion,which makes it the ninth biggest investor in India
• Also,many Indian companies have set up manufacturing units either as joint ventures or in Special Economic Zones for cement,building materials,textiles,engineering products,consumer electronics,etc. in the UAE. 

3.The payment system and trade significance

UPI-IPP:

• The central banks of both countries have signed to cooperate on linking India's Unified Payments Interface(UPI) with the UAE's Instant Payment Platform(IPP) and Rupay switch and UAESWITCH.
• The UPI-IPP link will enable users in both countries to make fast,safe and cost-effective cross-borders transfers.
• The linking of card switches will facilitate the mutual acceptance of domestic cards and the processing of card transaction.
• They will also explore the linking of India's Structured Financial Messaging System(SFMS) with the paymnets messaging system of the UAE. 

4.Globalisation of Rupees

What is the significance of Rupee based cross border transaction?

• India is looking to work out a way to mitigate exchange rate risks in the rupee based trade to limit losses for Indian exporters.
• The rupee-based transaction is part of a concentrated policy effort by India to Internationalize the Rupee to bring down the dollar demand.
• The RBI's plan to settle international trade in the local currency will let importers make payments in the rupee,which will be credited to the special account of the correspondent bank of the partner country,while exporters will be paid from the balances in the designed special account.