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China’s Renewed Spark: How Rising Demand Is Reviving Natural Diamond Exports
Economy - June 18, 2025

China’s Renewed Spark: How Rising Demand Is Reviving Natural Diamond Exports

China’s Renewed Spark: How Rising Demand Is Reviving Natural Diamond Exports

After years of decline, new retail strategies and shifting consumer sentiment in China are fueling hopes for a rebound in the global diamond trade.

Introduction: From Gloom to Glimmer
The global diamond industry has weathered a challenging period, marked by pandemic disruptions, shifting consumer preferences, and economic headwinds. Nowhere has this been felt more acutely than in India, the world’s leading exporter of cut and polished diamonds, where exports to China have halved over the past three years. Nevertheless, 2025 appears to be emerging as a pivotal year. A confluence of new retail tactics and changing consumer sentiment in China is breathing new life into the diamond trade, suggesting a long-awaited revival may be underway.

The Downturn: What Went Wrong?
Between 2021 and 2024, India’s diamond exports to China saw a sharp decline, dropping from more than $6.5 billion to merely $3.3 billion. Several factors contributed to this decline:
• Changing Preferences: Chinese consumers increasingly favored gold over diamonds, drawn by gold’s perceived value and security during uncertain times.
• Economic Slowdown: The Chinese economy’s post-pandemic recovery was slower than anticipated, dampening discretionary spending on luxury goods.
• Health Concerns: The emergence of new viruses, such as HMPV, added fresh uncertainty, further curbing consumer confidence and retail activity.
This combination led to a surplus of unsold inventory, falling prices, and a cautious outlook among exporters and traders.

Signs of Recovery: What’s Changing in 2025?
1. Innovative Retail Strategies
The most significant catalyst for renewed demand is the introduction of diamond buyback schemes by major Chinese jewelry retailers, including Chow Tai Fook and Chow Sang Sang. These programs allow customers to return their diamond purchases for a guaranteed value, reducing perceived risk and making diamonds a more attractive investment. The response has been swift: retailers report a surge in inquiries and foot traffic, especially among younger buyers.
2. Shift in Consumer Sentiment
After years of prioritizing gold, Chinese shoppers are showing renewed curiosity about diamonds—particularly smaller stones and accent pieces set in gold jewelry. This trend was evident at recent Hong Kong trade shows, where demand for smaller diamonds stabilized and even began to rise. Industry analysts point out that diamonds are once again capturing attention as symbols of prestige and romance, particularly among urban millennials and Gen Z buyers.
3. Stabilizing Prices and Inventory
The glut of unsold diamonds that plagued the market in recent years is easing. Prices have begun to stabilize, and inventory levels are returning to healthier norms. This has boosted confidence among traders and exporters, who are cautiously optimistic about sustained recovery.

India’s Diamond Industry: Ready for a Comeback
India, which polishes and exports more than 90% of the world’s diamonds, stands to benefit the most from China’s reawakening demand. The Gem and Jewellery Export Promotion Council (GJEPC) reports that while exports remain below their pre-pandemic highs, the pace of decline has slowed, and inquiries from Chinese buyers are on the rise.
Industry leaders expect the real impact to be felt from September 2025 onward, as the buyback schemes gain traction and consumer sentiment continues to improve. The upcoming wedding and festival seasons in China are also expected to drive a fresh wave of purchases.

Challenges Remain: Proceeding With Caution
While the outlook is brighter, several challenges could temper the pace of recovery:
• Global Competition: Other diamond-producing countries are also targeting the Chinese market, intensifying competition.
• Economic Uncertainty: Lingering concerns about China’s economic growth and potential new health crises could still affect consumer confidence.
• Changing Tastes: The long-term trend toward smaller stones and diamond accents may limit the recovery in high-value, large-stone exports.
Nonetheless, the consensus is that the worst is over, and a gradual, sustainable rebound is underway.

The Global Picture: Ripple Effects Beyond China
China’s renewed interest in diamonds is already having ripple effects across the global supply chain. Exporters in Belgium, Israel, and Africa are watching the Chinese market closely, hoping for a broader lift in demand. Meanwhile, the stabilization in prices is encouraging miners and traders worldwide to ramp up production and marketing efforts.

Conclusion: A New Chapter for Diamonds
After a prolonged downturn, the diamond industry is finally seeing reasons for optimism. China’s evolving retail landscape, innovative buyback schemes, and a shift in consumer sentiment are laying the groundwork for a revival in natural diamond exports. While challenges remain, the industry’s resilience and adaptability are on full display. As the world’s second-largest diamond market reignites its passion for these precious stones, exporters—especially in India—are preparing for a brighter, more sparkling future.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Axiscades Soars with Indra Sistemas Partnership!

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Economy - June 17, 2025

UK-US Trade Deal Progress: Steel Tariffs Unresolved

UK-US Trade Deal Progress: Steel Tariffs Unresolved

New UK Prime Minister Keir Starmer indicates progress in UK-US trade negotiations regarding important industries, but the issue of steel tariffs is still unresolved.

Summary:
The UK and the United States have reportedly reached an agreement on a long-anticipated trade deal, with UK Prime Minister Sir Keir Starmer indicating that significant aspects related to the automotive and aerospace sectors are complete. However, tariff issues—particularly concerning steel—are still under negotiation. The development signals renewed economic cooperation between the two allies, though lingering trade barriers continue to pose challenges.

In a significant development for post-Brexit trade relations, UK Prime Minister Sir Keir Starmer confirmed that a UK-US trade agreement is “done”, albeit with key details—most notably, tariffs on UK steel exports to the US—still being ironed out. Starmer’s announcement has raised optimism for a new chapter in transatlantic commerce, even as it highlights the complexities that remain in sensitive industrial areas.
The announcement came during Starmer’s first overseas trip as Prime Minister, where he met with US President Joe Biden and other global leaders at the NATO summit in Washington D.C. While the overarching framework of the trade agreement appears to be settled, Starmer acknowledged that “some technical elements, particularly around steel tariffs,” require further negotiation.

Breakthrough in Autos and Aerospace
Speaking to reporters, Starmer hinted that automotive and aerospace-related trade matters, which had been under prolonged discussion since the Trump administration, have been finalized. These sectors are critical for the UK’s industrial economy, particularly given their export orientation and role in sustaining thousands of skilled jobs across the Midlands and the North of England.
In particular, the agreement is expected to ensure tariff-free access for UK car manufacturers and aerospace component suppliers while also paving the way for enhanced regulatory cooperation on safety standards, emissions, and certifications. This is a vital win for UK-based companies such as Jaguar Land Rover, Rolls-Royce, and BAE Systems, which rely heavily on exports to North America.
“Securing agreement on these sectors has been a major priority,” said a senior UK government trade official, “especially as the UK shifts focus towards high-tech, low-carbon manufacturing. This will help British industries compete on a more level playing field.”

Steel Tariffs Still a Sticking Point
Despite the progress, tariffs on UK steel and aluminium exports to the US, imposed initially under former President Donald Trump in 2018 under Section 232, remain unresolved. While the EU successfully negotiated the removal of similar tariffs in 2021 under the Biden administration, the UK—operating independently post-Brexit—has faced a more complex path.
Currently, UK steel exports to the US are subject to 25% tariffs, making them less competitive and putting pressure on a sector already dealing with high energy costs and global overcapacity. British Steel and Tata Steel, two major producers in the UK, have consistently advocated for tariff relief, cautioning that ongoing trade restrictions might jeopardize both investments and employment.
“We welcome progress in other areas, but the steel issue is absolutely critical,” said Gareth Stace, Director General of UK Steel. “Without lifting these tariffs, we remain at a disadvantage in a key export market.”
Analysts suggest that while the broad contours of the UK-US trade pact are settled, the Biden administration is treading carefully on steel due to domestic political sensitivities, particularly in Rust Belt states like Pennsylvania and Ohio ahead of the US elections.

Political and Economic Implications
For Prime Minister Starmer, who took office with a focus on economic stability and international collaboration, concluding the UK-US trade agreement marks a notable diplomatic success. It offers early validation of his “Britain Reconnected” foreign policy, aimed at mending international ties and restoring trust among allies strained during the post-Brexit and Johnson years.
The deal also signals a strategic recalibration of UK trade policy, moving away from bombastic free trade rhetoric toward more targeted, sectoral agreements with major economies.
For the United States, the agreement reinforces its trade relationship with a key NATO ally amid growing global instability and competition from China. Although not a full-fledged Free Trade Agreement (FTA), the deal could serve as a framework for future cooperation, including in green technology, defence, and digital services.

Industry Reaction: Cautious Optimism
Industry bodies on both sides of the Atlantic responded to the announcement with measured enthusiasm. The Confederation of British Industry (CBI) welcomed the finalization of key sector agreements, calling it “a step in the right direction.” However, it also urged the government to press for early resolution of unresolved tariff issues.
Meanwhile, US Chamber of Commerce representatives indicated that American firms are eager to tap into Britain’s evolving green economy and digital innovation landscape, especially given regulatory clarity under the new UK administration.
“Both sides benefit when trade is open, fair, and rules-based,” said a Chamber spokesperson. “The UK remains a top investment destination for U.S. firms, and this agreement provides renewed momentum.”

Next Steps: Ratification and Implementation
While the deal has been declared “done,” its formal ratification process remains underway. UK officials will soon present the final documents to Parliament, and public consultations are expected. On the US side, any significant changes involving tariffs or regulatory standards may require Congressional review, depending on the deal’s structure.
Additionally, ongoing discussions on climate cooperation, digital trade, and AI standards are expected to be added to the UK-US trade agenda later this year.

Conclusion
The UK and the United States have reached a landmark point in trade negotiations, with key progress in the automotive and aerospace sectors. However, tariffs on UK steel and aluminium exports remain unresolved, indicating that while the trade deal is “done” in spirit, its full benefits are yet to materialize. Still, the announcement marks a turning point in post-Brexit UK foreign trade policy and offers renewed hope for a broader, more inclusive economic partnership between the two allies.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Port of Los Angeles Records Significant Drop in Imports Due to U.S. Tariff Impact
Economy - June 16, 2025

Port of Los Angeles Records Significant Drop in Imports Due to U.S. Tariff Impact

Port of Los Angeles Records Significant Drop in Imports Due to U.S. Tariff Impact

The Port of Los Angeles, a vital entryway for international goods entering the United States, has experienced a significant drop in imports this May. The port reported a 19% fall in cargo inflows, indicating the growing impact of U.S. tariff regulations and shifting global trade dynamics.

Tariff Increases Trigger Import Reduction

The major reason behind this steep decline is the series of tariff hikes implemented on a wide variety of Chinese imports. Earlier this year, U.S. authorities raised tariffs on several Chinese products, with some duties spiking to as much as 145%. Although a temporary agreement later reduced some tariffs to 30%, the cost burden remains too high for many importers.

In response, many U.S. companies have either postponed or scaled back their orders from China or have begun sourcing products from other countries. This adjustment in sourcing strategies has been a key factor in the reduced import volumes at the Port of Los Angeles.

Import Decline Spreads to Other Major Ports

The decline in shipments extends beyond Los Angeles. Several significant U.S. ports have reported similar downward trends:

Port of Long Beach: Reported a decline in import volumes of more than 20%.

Seattle and Tacoma Ports: Experienced even larger import declines.

East and Gulf Coast Ports: Major ports such as New York, New Jersey, Norfolk, Mobile, and Houston also experienced significant drops in incoming shipments.

These consistent drops across different ports signal a nationwide shift driven by U.S.Trade restrictions and evolving global market trends.

Reduced Availability of Key Consumer Products

The falling import volumes are now affecting the availability of everyday products in the U.S. Markets are seeing lower arrivals of essential goods such as electronics, furniture, toys, automobile components, and home appliances—most of which have traditionally been imported from China.

Retailers across the country are starting to face supply shortages, which could worsen during high-demand periods like the back-to-school season, year-end sales, and the holiday shopping period. Some companies may also need to raise prices as they look for alternative sourcing options, increasing costs for consumers.

Port Activity Slowdown Impacts Local Employment

The lower import levels have led to a slowdown in port operations at Los Angeles. The daily number of vessel arrivals has significantly dropped, declining from approximately twelve ships a day to just five.

This reduced activity is creating challenges for local workers and businesses connected to port operations. Dockworkers, truck drivers, warehouse operators, and logistic service providers are facing decreased working hours and fewer job opportunities. The downturn is having a direct negative effect on the Los Angeles port community and the surrounding economy.

Temporary Tariff Cuts Offer Limited Relief

Although there was a short-term agreement between the U.S. and China to lower tariffs for a 90-day period, the impact of this decision has been limited. Even after the adjustment, many goods still carry a 30% duty, discouraging large-scale imports.

Uncertainty about future trade policies continues to be a major issue for businesses. Companies remain cautious about placing new orders, unsure whether tariffs will stay the same, increase, or eventually be lifted.

Companies Shift Global Sourcing to New Markets

Given the persistent risk of tariffs, many American firms are now focusing on diversifying their supply chains. Countries such as Vietnam, India, and Mexico are emerging as preferred sourcing destinations, offering more affordable and stable options compared to China.

However, this transition is complex and takes time. Small and medium-sized businesses, in particular, may find it challenging to establish new supplier relationships, arrange logistics, and manage the additional costs associated with longer shipping routes and unfamiliar production bases.

As companies work through these adjustments, consumers may also face higher prices, at least in the near future, as supply chains continue to evolve.

Outlook Remains Uncertain for the Coming Months

Industry experts believe there could be a modest recovery in import levels over the next few months if the temporary tariff reductions remain in place. However, if tariffs increase again or remain high, cargo volumes at major U.S. ports like Los Angeles may stay low for the rest of the year.

Ports across the country are preparing for potentially extended periods of reduced shipping activity unless a long-term resolution to U.S.-China trade tensions is reached.

Conclusion

The 19% drop in imports at the Port of Los Angeles clearly demonstrates how U.S.Trade policies are reshaping international business and disrupting supply chain networks. The impact is being felt across multiple ports, industries, and consumer markets, directly affecting port workers, businesses, and shoppers nationwide.

Although a short-term tariff easing has provided limited relief, the uncertainty over future trade policies continues to cloud the outlook. Until greater clarity is achieved, many companies are likely to proceed cautiously, and global supply chains may continue to shift in response to ongoing trade challenges.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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India’s Defence Sector Transforms: 11 Years of Strategic Growth and Self-Reliance

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Chinese Tech Giants Export India-Made Electronics to Global Markets
Economy - June 16, 2025

Chinese Tech Giants Export India-Made Electronics to Global Markets

Chinese Tech Giants Export India-Made Electronics to Global Markets

Major Milestone for India’s Tech Exports

In a pivotal turn for India’s electronics manufacturing landscape, several Chinese technology firms have begun *shipping smartphones and electronic devices produced in India* to international markets, including *the United States, West Asia, and Africa. This move signals a significant departure from their earlier export dependency on facilities in China and Vietnam, and is being hailed as a breakthrough for India’s “Make in India” mission.

Manufacturing Pivot: From China to India

This production shift is driven by a growing trend among global firms to *diversify manufacturing locations* in light of rising geopolitical tensions and supply chain vulnerabilities. Often referred to as the *”China Plus One” strategy, this approach encourages businesses to **limit overdependence on Chinese manufacturing* by setting up alternative bases.

The Indian government has actively pushed to develop the country as a global production hub, with schemes like the *Production-Linked Incentive (PLI)* program designed to make Indian manufacturing globally competitive.

Strengthening Global Supply Chains

The relocation of production facilities to India is not only beneficial for the companies involved but also contributes to *strengthening global supply chains. It adds a layer of **resilience and flexibility* by decentralizing production and reducing the bottlenecks that come with regional disruptions. With India now producing devices for export under some of the world’s most recognized tech brands, the country is becoming an *integral part of global electronics logistics*.

A New Phase for India’s Export Economy

The ongoing expansion of *India-based manufacturing for export purposes* has implications beyond just trade. It shows the country’s capability to *match international quality standards, scale rapidly, and meet the logistics demands of distant markets like the U.S. and West Asia. With Chinese companies now relying on Indian factories to fulfill export orders, it also flips the traditional dynamic, presenting India not just as a consumer, but as a credible supplier to global markets.

Road Ahead: Opportunities & Requirements

The momentum is encouraging, but sustaining this growth will demand consistent effort. The Indian government and private sector must continue to *invest in infrastructure, digital readiness, workforce training, and logistics efficiency. With continued focus, India can evolve from a regional production base to a global electronics export powerhouse.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Diamond Power Lands ₹175 Cr Conductor Deal Under ₹100

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ONGC Shares Surge as Brent Crude Prices Rise Sharply Amid Middle East Tensions

ONGC Shares Surge as Brent Crude Prices Rise Sharply Amid Middle East Tensions*

Oil and Natural Gas Corporation (ONGC) shares experienced a notable increase recently, climbing over 3% as Brent crude oil prices witnessed a significant surge of more than 12%. The rise in crude prices was largely driven by heightened tensions in the Middle East, which raised fears of potential disruptions in oil supply. This development has once again highlighted the strong relationship between global geopolitical events and the stock prices of upstream oil companies like ONGC.

Impact of Geopolitical Unrest on Oil Prices

The sudden increase in crude prices was primarily triggered by escalating military actions in the Middle East. Reports indicated that Israeli forces conducted airstrikes on Iranian targets, further intensifying an already unstable regional situation. This raised immediate concerns about the security of the Strait of Hormuz, a vital route for global oil shipments. Investors around the world reacted to the possibility of supply chain disruptions, leading to a rapid increase in oil prices.

Brent crude prices, which had been relatively stable in the range of \$75 to \$78 per barrel, quickly spiked as the geopolitical risk premium increased. Markets swiftly adjusted to these developments, with crude oil experiencing one of its sharpest short-term gains in recent months.

Positive Momentum for ONGC

ONGC, as a major upstream oil company, directly benefits from higher crude prices. The company’s revenues are closely tied to global oil price trends, and any significant increase in crude prices typically leads to improved financial performance. This explains the strong buying interest in ONGC shares following the surge in Brent crude.

Higher crude prices translate into better price realization per barrel of oil produced, which can significantly boost ONGC’s margins. Additionally, the company’s scale and extensive exploration and production capabilities position it well to capitalize on favorable market conditions.

Downstream Sectors Face Pressure

While upstream companies like ONGC gain from rising oil prices, the situation creates challenges for downstream sectors. Companies involved in refining, distribution, and heavy oil consumption such as Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), and Indian Oil Corporation (IOC) often experience margin pressures during periods of crude price escalation.

This is because their input costs rise significantly with increasing crude prices, and they may not always be able to pass these costs fully to consumers due to pricing controls or competitive dynamics. Similarly, industries heavily dependent on crude oil derivatives, such as aviation, tyre manufacturing, and paints, also face the risk of shrinking margins as their raw material costs surge.

Broader Market Reactions

Indian equity markets reflected the shock of rising crude oil prices, with sector-specific movements becoming increasingly evident. While ONGC and other oil producers saw gains, broader equity indices faced declines due to concerns about rising inflation and potential strain on corporate earnings in oil-dependent sectors. Increased energy costs could eventually weigh on consumer spending and economic growth if the high prices persist.

Global markets also responded with caution. U.S. indices fell as investors moved towards safer assets like gold and government bonds, reflecting heightened risk aversion amid geopolitical uncertainty.

Outlook for ONGC and the Energy Sector

Analysts believe ONGC is well-positioned to benefit from the current trend of rising crude prices, especially in the near term. The company’s ability to maintain steady production while leveraging higher market prices could lead to strong quarterly earnings. However, experts also warn that prolonged periods of high oil prices could have wider economic implications, potentially leading to reduced demand and slower growth.

Market participants are likely to continue closely monitoring the Middle East situation. If tensions escalate further, crude prices may remain elevated, supporting upstream companies. Conversely, any de-escalation could result in a quick correction in oil prices, which would impact ONGC’s stock momentum.

Conclusion

ONGC has emerged as a key beneficiary of the recent surge in global oil prices driven by geopolitical events in the Middle East. The company’s stock has gained positive traction as investors anticipate improved profitability from higher crude realizations. However, the broader market is balancing this optimism with caution, particularly due to concerns about inflation and cost pressures on downstream sectors.

The situation remains dynamic, and ONGC’s performance will likely remain sensitive to further developments in the geopolitical landscape and fluctuations in crude prices.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Future Forward: Godrej Motor Solutions Aims for ₹1000 Cr Revenue Milestone

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China Curbs LNG Amid Rising Russian Energy Imports
Economy - June 12, 2025

India Set to Invest \$600 Million in Crude Tankers

India Set to Invest \$600 Million in Crude Tankers

India’s oil giants now want their ships homegrown.

India’s government-owned refining companies are preparing to spend approximately *\$600 million* on a fleet of crude oil tankers built for domestic operations, signaling a major move toward energy transport independence. This purchase forms part of a broader plan to manufacture more than 100 vessels in India under the *Make in India* vision, a strategy valued at nearly *\$10 billion* and aimed at strengthening the country’s control over its maritime logistics.

In recent years, leading oil refiners such as *Indian Oil Corporation (IOC), **Bharat Petroleum Corporation Ltd (BPCL), and **Hindustan Petroleum Corporation Ltd (HPCL)* have largely depended on foreign-leased tankers. These arrangements have left Indian firms vulnerable to external cost volatility and restrictions imposed by international sanctions. To counter this reliance, Indian ministries overseeing oil and shipping are now actively working on a new direction—ownership of key transportation infrastructure.

A central part of this shift is a proposed joint venture between Indian Oil and the *Shipping Corporation of India, which would focus on building large-scale crude carriers within the country. This would help reduce long-term shipping expenses while boosting local shipbuilding capabilities. The idea reflects the Indian government’s **Aatmanirbhar Bharat (Self-Reliant India)* campaign and seeks to turn the tide for a domestic shipbuilding industry that currently captures less than 1% of the global market.

In the immediate future, the plan is to place orders worth \$600 million with Indian shipyards to construct vessels for the exclusive use of state-run refineries. These tankers would replace expensive foreign-leased options and help standardize costs while improving logistical control.

India’s renewed focus on domestic production is largely driven by increasing concerns over the global oil supply chain’s unpredictability. By owning and operating its own *Very Large Crude Carriers (VLCCs)*, India would gain greater flexibility in transporting oil, reduce dependence on outside entities, and shield its operations from international shipping disruptions.

Experts, however, point out that the process of setting up infrastructure to build these massive ships will take time. It will require significant capital investment, skilled workers, advanced engineering expertise, and purpose-built shipyards. Until then, public sector refiners may continue to hire foreign vessels, though they might opt for longer-term leases to secure better deals and more consistent pricing.

If successful, this strategy could help India achieve multiple goals at once: reinforcing energy logistics autonomy, boosting indigenous manufacturing, cutting operational expenses, and stimulating related sectors such as steel, engine manufacturing, and port services. It also presents an opportunity for India to establish a presence in a global shipbuilding market currently ruled by nations like South Korea, China, and Japan.

With the right partnerships and policy support, this initiative could become a cornerstone of India’s industrial policy. Not only will it make Indian refiners more self-sufficient, but it will also turn the country into a more competitive player in the oil transportation and maritime manufacturing spaces.

Summary

This move aligns with the Make in India initiative and aims to reduce foreign reliance, enhance energy transport independence, and develop a strong local shipbuilding industry for long-term strategic gains.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Nvidia Joins Forces with AI Firms to Rewire Europe

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FDI Surge: 277.6% Rise Boosts India's Economy!

FDI Surge: 277.6% Rise Boosts India’s Economy!

India attracts $2.2 billion in FDI via the government route in FY25, marking a massive 277.6% YoY growth amid policy reforms and global investor optimism.

Summary:
India saw a remarkable 277.6% increase in FDI inflows via government approval in FY25, reaching $2.20 billion. This sharp rise is seen as a testament to the country’s improved policy environment, strategic sectoral liberalization, and increasing global investor confidence in India’s growth potential. A growing preference among foreign investors to acquire existing shares of Indian firms further underscores the nation’s maturing capital markets and economic appeal.

FDI Surge Signals Renewed Investor Trust
Foreign Direct Investment (FDI) in India through the government route saw a remarkable increase in FY2024–25, achieving an impressive year-on-year growth of 277.6% and totalling $2.20 billion. This surge indicates a resounding vote of confidence from global investors in the Indian economy and its regulatory reforms. While the automatic route continues to dominate overall FDI inflows, the government route’s sudden leap highlights the growing interest in sensitive or strategic sectors where approvals are mandatory.
This development comes at a time when global economies are grappling with inflationary pressures, geopolitical tensions, and supply chain realignments. In such a context, India’s robust macroeconomic fundamentals, consistent GDP growth, and policy-driven reforms have made it a compelling investment destination.

Government Route: What Does It Mean?
FDI via the government route pertains to sectors where foreign investment requires prior approval from the Indian government. These sectors include defence, telecom, media, private security, and others that are considered sensitive due to national interests. Investors must apply through the Foreign Investment Facilitation Portal (FIFP), and proposals are reviewed by respective ministries and departments before a final nod from the Ministry of Commerce and Industry.
Over the years, many sectors have progressively shifted to the automatic route. However, those still under government scrutiny are now seeing increased traction, signalling both strategic investor interest and bureaucratic efficiency in facilitating approvals.

Drivers Behind the Inflow Boom
1. Improved Ease of Doing Business:
India’s ranking in global ease-of-doing-business indices and efforts to streamline the FDI approval process through digitization and faster clearances have played a critical role.
2. PLI Schemes & Sectoral Reforms:
Production-Linked Incentive (PLI) schemes in electronics, pharmaceuticals, and renewable energy have drawn foreign investors to sectors under the government route, encouraging capacity expansion and technology transfer.
3. M&A-Focused Investments:
Interestingly, much of the FDI under this route has been used to acquire existing shares of Indian companies. This trend highlights a shift from greenfield investments to brownfield expansions, suggesting that foreign companies are increasingly looking for immediate market access and operational leverage rather than building operations from scratch.
4. Geo-Economic Realignment:
Amid rising tensions between major economies and shifting global supply chains, India is being viewed as a stable and democratic alternative to China for manufacturing and service hubs. Several Japanese, European, and U.S. investors are shifting their capital to India as part of their strategy to diversify away from China.

Sectoral Spotlight: Where the Money Is Going
Defence and Aerospace:
India’s focus on Indigenous defence manufacturing through the ‘Make in India’ initiative has created opportunities for joint ventures, especially with defence companies from Europe and Israel. Several deals involving technology partnerships and share acquisitions have been approved in FY25.
Telecom and Electronics:
With 100% FDI allowed under the government route in telecom and relaxed norms in semiconductor manufacturing, the sector has witnessed an influx of funds, particularly from Southeast Asian investors.
Pharmaceuticals and Healthcare:
Acquisitions of Indian generic drug makers by global pharma giants and fresh equity infusions for manufacturing expansion have significantly contributed to the surge.
Digital Media and Technology:
Global interest in India’s rapidly growing digital landscape, including gaming, OTT platforms, and cloud services, has led to FDI proposals, particularly in acquiring stakes in tech startups and established players.

Global Comparisons: India Emerges as a Bright Spot
Globally, FDI flows declined marginally in 2024, as per UNCTAD’s World Investment Report, with developed economies facing a slowdown in inflows. In contrast, India’s resilience and proactive policy changes have helped buck this trend. While China has seen waning FDI sentiment amid regulatory uncertainties, India has positioned itself as a reliable, transparent, and investor-friendly market.

Challenges Ahead: Policy Consistency & Speedy Approvals
Despite the positive numbers, India must remain vigilant. Investors still cite concerns such as policy unpredictability in some states, delays in approvals, and bureaucratic red tape. To maintain momentum, it is imperative for the central government to ensure faster clearances, inter-ministerial coordination, and transparent communication regarding policy shifts.
Moreover, strengthening dispute resolution mechanisms and intellectual property protections will further enhance investor confidence, especially for high-tech and R&D-intensive sectors.

Way Forward: Leveraging the Momentum
The current momentum provides India with a golden opportunity to scale up reforms and attract long-term capital. By encouraging strategic partnerships, easing norms in defence and media further, and enhancing the speed of FDI clearance under the government route, India can position itself as the foremost FDI magnet in the Global South.

Conclusion
The 277.6% year-on-year rise in FDI under the government route is more than just a statistical achievement—it’s a strong validation of India’s economic vision, regulatory reforms, and global investor appeal. As more foreign investors choose India not just as a marketplace but as a manufacturing and innovation hub, it becomes crucial for policymakers to nurture this momentum and institutionalize investor confidence through consistent and visionary governance.

 

 

 

 

 

 

 

 

 

 

 

 

 

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GRSE Shares Tumble 8% from Peak Despite 77% Monthly Surge

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Indian Steelmakers Gain as Import Duties Continue and China Cuts Supply
Economy - June 4, 2025

US Steel Tariffs: A Dilemma for Indian Manufacturers

US Steel Tariffs: A Dilemma for Indian Manufacturers

While higher import tariffs may lead to uncertainty, companies such as JSW Steel and Hindalco’s Novelis are finding positive aspects in potential policy adjustments and the benefits of local production.

Summary:
The United States’ decision to double tariffs on steel and aluminium imports has stirred concerns across global markets, yet Indian companies with manufacturing operations in the US—like JSW Steel and Hindalco’s Novelis—are preparing to navigate the changes with cautious optimism. With expectations of limited overall impact due to counterbalancing trade measures and localized production, Indian firms might turn potential headwinds into competitive advantages.

US Doubles Down on Steel Tariffs: A Global Ripple Effect
In a notable protectionist measure, the Biden administration declared that it would increase tariffs on certain steel and aluminum imports by double. This policy aims to protect American industry from alleged unfair competition, especially from Chinese companies rerouting materials through third countries. While this aggressive trade stance may ruffle international relations, it has a more nuanced impact on manufacturing for Indian companies within the United States.
For Indian metals giants like JSW Steel and Hindalco’s Novelis, the development presents a mix of challenges and opportunities. Though global trade uncertainty has increased, their established local manufacturing presence offers insulation from direct tariff penalties and positions them favourably in a more protected domestic environment.

JSW Steel: Tariff Shock or Strategic Advantage?
JSW Steel, one of India’s largest steel producers, has significant operations in the US, including facilities in Texas and Ohio. The company has been working to improve the performance of its American units, which have historically seen profitability challenges due to operational issues and volatile market conditions.
With the new tariffs in place, JSW Steel’s US business may actually stand to gain as domestic producers become more competitive against imports.
“Our American operations have been gradually improving, and with these tariffs, we expect positive contributions moving forward,” a senior JSW official was quoted as saying.
The company has already invested over $1 billion in modernizing its US plants. With increased tariffs likely to raise the cost of imported steel, domestic players like JSW’s US units could benefit from increased demand and improved margins. However, the full extent of the impact will depend on whether JSW sources raw materials or semi-finished products from outside the US, which might still be affected by the tariff hikes.

Novelis (Hindalco): Neutral to Positive Outlook Amid Trade Complexity
Novelis, a subsidiary of Hindalco Industries based in Atlanta, is a prominent global provider of rolled aluminium products and a recycler of aluminium. The company has a robust US manufacturing footprint, which strategically positions it to weather import-related trade turbulence.
Commenting on the tariff development, a Novelis spokesperson indicated the company expects a “neutral to positive” outcome, subject to the outcomes of ongoing trade negotiations and potential exemptions.
Novelis’ existing domestic production capacity means the company is less reliant on imported aluminium, which cushions it from the immediate effects of tariff increases. Additionally, given its involvement in high-growth segments like automotive and beverage manufacturing, demand for its products is expected to remain strong.
Still, executives are keeping a close eye on trade policy dynamics, particularly rules of origin and any potential retaliatory measures from affected countries, which could alter cost structures.

Mixed Signals from Analysts: Limited Immediate Impact, Long-Term Uncertainty
Although the tariffs are attracting significant attention, many analysts believe that their overall effect on Indian companies operating in the US may be minimal. This is due to several reasons:
1. Local Manufacturing Mitigates Impact: Indian companies with manufacturing facilities in the US can bypass direct tariffs.
2. Existing Safeguard Duties: Current safeguard measures under Section 232 have already set up barriers for imports, and the recent actions are seen by some as largely symbolic.
3. Potential for Exemptions: Ongoing trade negotiations might provide opportunities for exclusions or quotas that could safeguard allied nations, including India.
4. Global Capacity Constraints: With the supply of aluminium and steel already limited worldwide, changes in tariffs may lead to adjustments in supply chains rather than a decrease in demand.
However, uncertainty continues to be a significant issue. If global supply chains suffer from retaliatory measures or if trade conflicts escalate, even companies that are locally established could experience rising costs or fluctuations in demand.

Global Competitiveness: Indian Companies Poised to Pivot
From a strategic standpoint, these tariffs could prompt Indian conglomerates to double down on localizing production for global markets. The recent move may also serve as a wake-up call for companies overly dependent on exports to build capacity in key consumer markets like the US.
Additionally, firms with sustainability-aligned growth models—such as Novelis with its recycling initiatives—could capitalize on US government preferences for cleaner, domestically produced metals.

Future Outlook: Navigating Policy with Strategy
Looking forward, the full impact of the new US tariffs on Indian companies will hinge on several variables:
Bilateral Trade Talks: Will India negotiate exclusions or special treatment?
Input Cost Trends: Will tariffs increase raw material costs for Indian companies operating abroad?
Competitor Behavior: How will Chinese and European rivals adapt or respond?
US Infrastructure Push: Will the US government’s focus on domestic infrastructure projects provide sustained demand?
For now, companies like JSW and Novelis are maintaining a cautious but optimistic stance. Their investment in US-based capacity may now offer them a protective moat, making them beneficiaries rather than victims of rising trade walls.

Conclusion:
The increase in steel and aluminum tariffs by the US creates a complex situation for Indian companies operating in America. While global uncertainties remain, firms with established US production, like JSW Steel and Novelis, appear well-positioned to weather the storm—and potentially even profit from it. By leveraging local presence and adapting supply chains, Indian companies may convert trade challenges into strategic gains in the long run.

 

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Vedanta Floats ₹4,100 Crore Bond Issue to Boost Liquidity**

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Markets Plunge as Middle East Tensions Erupt: Oil Soars, Aviation and Equities Suffer
Economy - June 2, 2025

US Sanctions on Russia Pose Significant Challenges to India’s Crude Oil Imports

US Sanctions on Russia Pose Significant Challenges to India’s Crude Oil Imports

India’s reliance on Russian crude oil is at risk due to the newly intensified sanctions imposed by the United States on Russia’s energy sector. As one of the largest importers of Russian crude, India now faces a complex situation that could affect its energy security, refining costs, and broader economic stability.

Growing Reliance on Russian Crude

Over recent years, India has increasingly turned to Russia as a source of crude oil, attracted by discounted prices resulting from Western sanctions and geopolitical tensions involving Russia. This strategy allowed India to diversify its suppliers and secure competitively priced oil, which helped manage domestic fuel costs amid global price fluctuations.

The shift towards Russian crude has become a significant component of India’s import portfolio, accounting for a substantial share of the country’s oil needs.

The US Sanctions and Their Impact

The United States has escalated its sanctions regime against Russia, aiming to curb the nation’s energy revenues. These sanctions include price caps on Russian oil sales and penalties for entities attempting to bypass the restrictions.

India’s crude oil imports from Russia now face heightened risks. Financial institutions, insurers, and shipping companies with ties to the US or its financial system are cautious about engaging in transactions involving Russian crude, fearing repercussions from the sanctions.Operational and Supply Chain Complications

The sanctions have introduced tangible obstacles in the logistics of Russian oil shipments. One of the critical challenges is securing insurance for tankers transporting Russian crude, which is essential for global oil trade.

Shipping companies are increasingly hesitant to participate in these transactions, worried about breaching sanction rules. These disruptions threaten to delay or reduce the volume of crude oil delivered to Indian refineries.

Economic Consequences for India

If Russian crude supplies are curtailed, India will need to procure oil from alternative sources, which may be more expensive. Such a shift could increase refining costs and, eventually, the price of petroleum products domestically.

Higher fuel prices can exacerbate inflationary pressures and impact a wide range of economic activities, from transportation to manufacturing, affecting consumers and industries alike.

Navigating Geopolitical Complexities

India is caught in a delicate geopolitical position. While maintaining longstanding ties with Russia, India is also strengthening its strategic and economic relationships with the United States and Western countries.

Balancing these relationships is crucial as India seeks to uphold its energy security without jeopardizing international diplomatic ties or attracting undue scrutiny.

Steps Towards Diversification

To mitigate the risks posed by the sanctions, India is actively seeking to diversify its crude oil sources. Increased imports from the Middle East, the United States, and Africa are part of this strategy.

Diversification not only reduces dependency on any single supplier but also enhances resilience against external shocks.

Accelerating Energy Transition

The current challenges highlight the urgency for India to accelerate its transition towards sustainable and renewable energy sources. Increasing investments in solar, wind, and other green energy technologies is vital to reducing the country’s overall dependence on imported fossil fuels.

Moreover, boosting domestic oil and gas production and enhancing energy efficiency are critical components of India’s long-term energy security plan.

Strengthening Strategic Reserves

India is likely to bolster its strategic petroleum reserves to provide a buffer against supply disruptions and price volatility. These reserves can serve as a crucial tool to stabilize fuel availability during geopolitical uncertainties.

Impact on Global Oil Markets

The US sanctions on Russia contribute to tightening global oil supply, influencing prices worldwide. Countries dependent on Russian oil are compelled to seek alternatives, which can lead to increased competition and shifting trade patterns.

This evolving scenario may result in new alliances and realigned supply chains across the global energy landscape.

Conclusion

The intensification of US sanctions on Russian crude oil poses significant challenges for India’s energy security. While the situation demands urgent attention, India’s efforts to diversify supply sources, engage diplomatically, and accelerate energy reforms demonstrate a proactive approach to safeguarding its energy future amid global uncertainties.

 

 

 

 

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IKEA Boosts India Sourcing to 50% for Global Growth

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Economy - June 2, 2025

IKEA Boosts India Sourcing to 50% for Global Growth

IKEA Boosts India Sourcing to 50% for Global Growth

 

The Swedish furniture retailer IKEA aims to raise its Sourcing from India to make up 50% of its overall procurement. The company plans to branch out from textiles and metals into additional categories to help achieve its global retail and sustainability objectives.

Summary:

IKEA, the leading global provider of budget-friendly and eco-friendly home furnishings, has revealed plans to significantly increase its Sourcing from India, aiming for 50% of its international operations to originate from there. Currently sourcing a diverse array of products, including textiles, plastics, and metals, the company seeks to strengthen its collaborations with Indian suppliers and explore new sourcing categories to improve its global supply chain, lower costs, and support its sustainability objectives.

IKEA’s ‘Make in India’ Push Gains Momentum

In a major strategic development, IKEA, the largest home furnishing retailer globally, has announced its bold plan to boost Sourcing from India to 50% of its worldwide operations, effectively doubling its previous commitment to the nation. India plays a vital role in IKEA’s global supply chain by providing essential materials such as textiles, plastics, metals, and more. The company intends to expand its sourcing portfolio, possibly incorporating categories like engineered wood products, kitchen accessories, ceramics, and sustainable innovations, capitalizing on India’s expanding manufacturing capabilities.
This development underscores India’s growing role as a global manufacturing hub amid shifting geopolitical dynamics and the need for resilient supply chains.

Existing Sourcing Strength: India’s Key Role in IKEA’s Global Chain

IKEA has been sourcing products from India for more than 35 years, starting with textiles. Over the years, this range has grown to encompass metal items, plastics, lighting, carpets, and handicrafts. Today, India represents a considerable portion of IKEA’s global textile offerings, particularly in cotton-based products, where the country benefits from abundant raw materials, efficient processing, and competitive pricing.
IKEA collaborates with over 60 suppliers and employs more than 45,000 persons in India. The company focuses on local skill development, sustainability, and responsible Sourcing, including the Better Cotton Initiative, water stewardship, and renewable energy.

Doubling Sourcing to 50%: What It Means for India

Increasing the Sourcing from India to 50% will position India as IKEA’s most extensive global sourcing base, surpassing China, which has historically been the primary focus of the company’s procurement strategy.
The main implications of this development are:
1. Enhancement of the Indian Manufacturing Sector: Micro, small, and medium enterprises (MSMEs), which are essential to IKEA’s supplier network, will see significant benefits.
2. Job Creation: IKEA’s expansion is expected to create thousands of new jobs in the manufacturing, logistics, and quality assurance sectors.
3. Promoting Sustainable Practices: IKEA’s strict sustainability and circular economy standards will motivate Indian suppliers to adopt more eco-friendly practices.
4. Alignment with ‘Make in India’ and ‘Aatmanirbhar Bharat’ Initiatives: This strategy supports the Indian government’s goal of establishing India as a global manufacturing powerhouse.

IKEA’s Retail Expansion in India Also in Focus

In addition to increasing its Sourcing from India, IKEA is rapidly growing its retail presence in the country. Having already opened large-format stores in Hyderabad, Navi Mumbai, and Bengaluru, the company is also offering online shopping in various cities. Plans are in place to extend its reach to the Delhi NCR, Ahmedabad, and Pune areas soon.
IKEA has opened a distribution centre in Pune to boost local supply for its Indian stores and plans to establish more regional fulfilment centres. This strategy focuses on local manufacturing to improve speed to market and reduce costs, making products more affordable for the Indian middle class.

Strategic Advantages: Why IKEA is Betting Big on India

Several important factors are contributing to IKEA’s increasing interest in India as a sourcing hub:
1. Cost Efficiency: Manufacturing in India offers competitive labour, raw materials, and operational costs.
2. Skilled Workforce: The country boasts a technically proficient labour force, particularly in the textiles, metals, and emerging green manufacturing sectors.
3. Growing Domestic Demand: India’s expanding consumer class creates a substantial market for home furnishings, fostering a strong connection between supply and demand.
4. Policy Support: The Indian government has implemented pro-investment policies, including Production-Linked Incentives (PLIs), reduced corporate tax rates for new manufacturing facilities, and enhanced ease of doing business.

Challenges and the Road Ahead

While the strategy to enhance Sourcing from India holds great potential, IKEA must address several challenges:
1. Infrastructure Limitations: Issues like delays in port logistics, unreliable electricity supply, and inadequate road connectivity in remote supplier areas pose significant hurdles.
2. Quality and Compliance: Maintaining IKEA’s stringent quality and sustainability standards while increasing production levels will necessitate comprehensive training, auditing, and capacity-building efforts.
3. Global Trade Challenges: Ongoing uncertainties in global trade, including EU carbon taxes and environmental regulations, may adversely affect pricing and logistics.
Nevertheless, IKEA’s strong supplier relationships and long-term commitment to India place the company in a favourable position to tackle these challenges effectively.

IKEA’s Commitment to Sustainability and Inclusion

IKEA’s sourcing philosophy goes beyond cost savings. The company has pledged that by 2030, all its products will be made from renewable or recycled materials. In India, IKEA is actively working with vendors to reduce carbon emissions, increase solar energy usage, and minimize water wastage in production.
The company also works towards women’s empowerment in supply chains through employment and skilling programs, especially in rural areas. These initiatives enhance the inclusivity and social sustainability of IKEA’s supply chain.

Conclusion

IKEA’s choice to boost its Sourcing from India to 50% of its global operations represents a significant achievement for Indian manufacturing. It demonstrates trust in India’s abilities, cost efficiency, and preparedness for the future to enhance international supply chains. For Indian suppliers, this move brings long-term opportunity, technology transfer, and economic upliftment.
As India continues to scale up its industrial might, and global players like IKEA make long-term bets, the dream of becoming a $5 trillion economy appears increasingly within reach. Investors, policymakers, and manufacturers will watch closely as IKEA’s India journey enters a high-growth phase.

 

 

 

 

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Prestige Group Plans ₹42,000 Crore Housing Launches in FY26 Amid Real Estate Boom

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