Daily News - Wednesday, 21 May 2025
India eyes cheap oil to refill strategic reserves amid geopolitical turmoil (mint)
India is moving to replenish its underfilled strategic petroleum reserves (SPR) as global crude oil prices dip to a four-year low, with Brent trading near $65 per barrel, aiming to boost energy security amid geopolitical risks and a recent India-Pakistan flare-up. The current SPR capacity can cover just 9.5 days of crude needs, far below the International Energy Agency’s 90-day benchmark, prompting urgent efforts to fast-track procurement through ISPRL despite earlier budget delays. With over 85% of oil and 55% of gas imported, this move is seen as timely to mitigate future supply shocks and manage the country’s volatile energy import bill.
Government to invest Rs 1,280 crore to upgrade godowns of FCI, CWC: Food Minister Pralhad Joshi (The Economic Times)
Union Food Minister Pralhad Joshi announced a ₹1,280 crore investment to upgrade infrastructure in the godowns of the Food Corporation of India (FCI) and Central Warehousing Corporation (CWC), aiming to enhance efficiency, reduce losses, and ensure better foodgrain distribution under the National Food Security Act. With 2,278 godowns in operation, FCI will invest ₹1,000 crore and CWC ₹280 crore, while the government is also expanding national storage capacity by 700 lakh tonnes through a separate ₹1 lakh crore initiative by the Co-operation Ministry. Launching three new mobile apps, Depot Darpan, Anna Mitra, and Anna Sahayata, Joshi said these technologies would improve transparency in the public distribution system and curb leakages, reinforcing that the country is well-stocked and prepared for any exigency.
India well-positioned to deal with negative effects of US tariffs: Moody's (The Economic Times)
India is well-positioned to weather global trade disruptions and US tariffs due to its strong domestic demand, limited dependence on goods exports, and government-led investments in infrastructure and manufacturing, according to Moody’s Ratings. While some export-oriented sectors like automobiles may face headwinds, the country’s robust services sector, easing inflation, and ample banking liquidity continue to support overall economic resilience. Geopolitical tensions with Pakistan pose limited economic risk for India in the near term, though prolonged escalation could slow fiscal consolidation by pushing up defence spending.
Cross-border digital monopolies risk to free markets: FM Sitharaman (Financial Express)
Finance Minister Nirmala Sitharaman stressed the need for swift regulatory clearances to avoid disruption of business timelines, while highlighting global challenges posed by digital monopolies and AI-driven market dynamics that demand agile, cooperative regulatory responses. Speaking at the Competition Commission of India’s annual event, she advocated for a balanced approach that maintains oversight without stifling legitimate business combinations, especially as India negotiates trade agreements and pushes structural reforms. The minister noted that enabling competitive yet business-friendly regulation is essential for fostering innovation, resilience, and equitable growth in the Indian economy.
No spike in food inflation likely: Food Secretary (Financial Express)
Even as food inflation hits a multi-year low, Food Secretary Sanjeev Chopra said the government does not anticipate any spike in agricultural commodity prices in the coming months, thanks to bumper wheat and rice production. This supports the ongoing monetary easing cycle and ensures price stability, despite rising global edible oil prices driven by import duties and international trends. With wheat procurement nearing 30 million tonnes, 11% higher than last year, and ample rice stocks, the government is well-prepared to manage public distribution and market interventions efficiently.
