Daily News - Monday, 5 January 2026
How Will the U.S. military action on Venezuela impact India's economy? (moneycontrol)
The Global Trade Research Initiative (GTRI) noted that India was once a major buyer of Venezuelan crude, importing over 400,000 barrels per day in the 2000s and 2010s, with ONGC Videsh holding stakes in the Orinoco oil belt. However, after US sanctions in 2019, India halted crude imports to avoid secondary sanctions, leading to a steep decline in bilateral trade. In FY2024–25, India’s imports from Venezuela totaled $364.5 million, of which crude oil accounted for $255.3 million, marking an 81.3% drop compared to the previous year. India’s exports to Venezuela stood at $95.3 million, with pharmaceuticals worth $41.4 million being the largest component, according to data from the Directorate General of Commercial Intelligence and Statistics (DGCIS). Bloomberg reported US takeover of Venezuela's oil industry could be beneficial for Reliance Industries and ONGC. The lifting of sanctions on Venezuelan crude sales would help Reliance buy heavy crude at a discount and aid the firm’s gross refining margins. Meanwhile, a US-led takeover or res1tructuring of Venezuela's oil sector could deliver a direct benefit to India, potentially unlocking close to $1 billion in long-pending dues while accelerating the revival of crude production from fields it operates in the sanctions-hit Latin American nation, PTI reported quoting industry sources.
India’s Bullet Train Project Complete 55% Progress, First Section to start by 2027 (Fortune India)
The Mumbai–Ahmedabad bullet train corridor, India’s first high-speed rail project, spans 508 km across Maharashtra, Gujarat, and Dadra & Nagar Haveli, with 12 planned stations including Mumbai, Surat, Vadodara, and Ahmedabad. As of January 2026, the project has achieved 55% physical progress and nearly 70% financial progress, according to Union Railway Minister Ashwini Vaishnaw. The estimated project cost is USD 21.6 billion (INR 1.8 lakh crore), with Japan International Cooperation Agency (JICA) funding over 80% (USD 10.6 billion / INR 88,000 crore) at concessional rates. The project is overseen by the National High Speed Rail Corporation Limited (NHSRCL), with Larsen & Toubro (L&T) awarded contracts to build 92% of the route, including viaducts, bridges, tunnels, and stations. A major milestone was achieved in January 2026 with the completion of the 1.5 km MT-5 tunnel in Palghar district, Maharashtra, one of eight mountain tunnels planned. The first operational section between Vapi and Sabarmati in Gujarat is targeted for December 2027, while full completion of the corridor is expected by December 2029, cutting travel time between Mumbai and Ahmedabad to 2–3 hours compared to the current 7–8 hours.
India Surpasses China as World’s Largest Rice Producer at 150.18 Million Tonnes (Business Standard)
India has become the world’s largest rice producer, surpassing China, with a total output of 150.18 million tonnes, compared to China’s 145.28 million tonnes, according to Union Agriculture Minister Shivraj Singh Chouhan. At an event in New Delhi, the minister unveiled 184 new high-yielding varieties of 25 crops, developed by the Indian Council of Agricultural Research (ICAR), including 122 cereals, 6 pulses, 13 oilseeds, 11 fodder crops, 6 sugarcane, 24 cotton (22 Bt cotton), and one each of jute and tobacco. Since the gazette notification process began in 1969, a total of 7,205 crop varieties have been notified, of which 3,236 high-yielding varieties were approved under the Narendra Modi government, compared to 3,969 varieties between 1969–2014. The minister emphasized that India has transformed from a food-deficient nation to a global food provider, with abundant foodgrain stocks ensuring national food security. Agriculture Secretary Devesh Chaturvedi noted that seed multiplication rates have been increased by 1.5 to 2 times, with national and state seed corporations ensuring quality seeds at affordable prices. The newly released varieties are climate-resilient, pest-resistant, and suitable for natural/organic farming, designed to tackle challenges such as climate change, soil salinity, drought, and biotic/abiotic stresses, marking a new era in India’s agricultural revolution.
India’s Sugar Output Jumps 25% to 11.9 Million Tonnes in 2025 with 504 Mills Operational Across India (Fortune India)
India’s sugar production reached 11.897 million tonnes as of 31 December 2025, marking a 25% increase compared to 9.54 million tonnes in the same period last year. The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) reported that 504 sugar mills are currently operational, up from 492 mills in the previous season. Uttar Pradesh produced 3.586 million tonnes, a 9% rise (+0.306 million tonnes), while Maharashtra delivered 4.861 million tonnes, a 62% surge, with 197 mills in operation compared to 190 last year. Karnataka also reported accelerated crushing activity, with sugar output rising by 12% year-on-year. Despite higher production, ex-mill sugar prices in Maharashtra and Karnataka have dropped to USD 43 (INR 3,600) per quintal, below production costs, prompting calls for an urgent Minimum Selling Price (MSP) revision. ISMA further highlighted challenges in the ethanol blending programme, noting reduced allocations and stagnant procurement prices since 2022–23, urging the Ministry of Consumer Affairs, Food & Public Distribution to align ethanol prices with rising cane costs.
India’s Exports to US Recover 23% to USD 7 Billion (INR 58,310 Crore). Petroleum & Electronics Drive India’s US Trade (Financial Express)
India’s exports to the US surged 23% in November 2025 to USD 7 billion (INR 58,310 crore), according to a report by the Global Trade Research Initiative (GTRI). Despite this rebound, shipments remain significantly below pre-tariff levels due to Trump-era tariffs of up to 50%, which continue to hit labour-intensive sectors such as textiles, leather, and gems & jewellery. The Ministry of Commerce & Industry noted that petroleum and electronic goods, exempt from the extra duties, are sustaining export volumes, though they contribute relatively low value addition. Between May and October 2025, exports to the US saw a sharp sequential decline, with partial recovery only visible in November, highlighting structural weaknesses in India’s trade basket. Exporters are reporting large forex losses due to volatility in the USD–INR exchange rate, with the Reserve Bank of India (RBI) intervening periodically to stabilize currency markets. Analysts warn that unless tariffs are reduced and diversification accelerates, India’s export growth to the US will remain fragile, with the Ministry of Finance expected to review forex stabilization measures in early 2026.
