February 21, 2025
Indian Refiners Cancel Palm Oil Orders Amid Price Surge
Indian refiners have canceled orders for 70,000 metric tons of crude palm oil due to a rise in Malaysian prices and negative refining margins in India. This shift could affect Malaysian palm oil prices and support soyoil prices. Some refiners prefer soyoil imports, which are cheaper. Market speculation on increased import duty on palm oil also contributed to cancellations.
India-Russia Trade via INSTC Doubles
Trade between India and Russia via the International North-South Transport Corridor (INSTC) has doubled in the past year, significantly reducing delivery times and costs. Bilateral trade reached a record USD 66 billion in 2024, with plans to achieve USD 100 billion by 2030. Pharmaceuticals are among the key sectors for further trade diversification.
Government Eases Import Norms for Vintage Cars
The government has eased import norms for “vintage motor vehicles” by actual users. Previously limited to cars manufactured before January 1, 1950, imports are now allowed for broader vintage classifications. However, these vehicles must comply with the Motor Vehicles Act, 1988, if used on public roads.
India Considers Trade Agreement with Qatar
India is considering a free trade agreement with Qatar, but economic caution is advised, particularly in the petrochemical sector. The Global Trade Research Initiative highlights the need for careful evaluation to ensure domestic industries and trade balances are not adversely impacted.
Potential Impact of U.S. Pharmaceutical Import Tariffs on Indian Drugmakers
U.S. President Donald Trump’s plans to impose tariffs on pharmaceutical imports may affect Indian drugmakers. The proposed tariffs aim to reduce dependency on foreign medicines, potentially impacting India’s pharmaceutical exports to the U.S.
India’s Trade Deficit Widens in October
India’s trade deficit widened significantly in October as imports climbed during the Hindu festival season, even though exports posted robust growth. The gap between exports and imports stood at US$27.1 billion in October. Imports grew 3.9% in October from a year earlier to US$66.3 billion, while exports rose 17.3% to US$39.2 billion. The widening deficit could put pressure on India’s currency, which is already near record lows, prompting the central bank to intervene in the foreign exchange market to smooth out the volatility. Imports tend to pick up in the run-up to the Hindu traditional festival of Diwali, which ended about two weeks ago.
India Confident of Reaching USD 100 Billion Trade Volume with Russia Ahead of 2030 Timeline
India is confident of achieving USD 100 billion in annual bilateral trade with Russia well ahead of the 2030 timeline, according to External Affairs Minister S. Jaishankar. There have been challenges to trade, especially with regard to payments and logistics, and perceptible progress has been made in that regard, but there is still some work to be done, he said. Jaishankar emphasized the need for a more balanced trade relationship, addressing current constraints, and promoting facilitative efforts. Both nations acknowledge the global significance of their strengthened partnership in an increasingly multipolar world.
These developments reflect India’s dynamic import and export landscape, influenced by global economic shifts and strategic partnerships.
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