Daily News - Monday, 2 February 2026
U.S. pitches Venezuelan crude to India as Russian imports fall (Business Standard)
The United States has pitched Venezuelan crude oil to India as its imports of Russian oil decline, according to a report citing Reuters sources. India’s Russian oil imports, which averaged 1.2 million barrels per day (bpd) in January 2026, are projected to fall to 1 million bpd in February, 800,000 bpd in March, and eventually 500,000-600,000 bpd, as refiners diversify. President Donald Trump had earlier imposed 25% tariffs on countries buying Venezuelan oil in March 2025, alongside 50% tariffs on Indian goods linked to Russian oil purchases, but Washington has now eased sanctions after capturing Venezuelan President Nicolás Maduro on January 3, 2026. The White House and US Treasury Department declined to comment, while India’s Petroleum Minister Hardeep Singh Puri confirmed at India Energy Week that refiners are diversifying sources. State‑run refiners like Hindustan Petroleum, Mangalore Refinery and Petrochemicals, and HPCL‑Mittal Energy Ltd have already stopped buying Russian oil, while Reliance Industries plans to import up to 150,000 bpd of Russian crude from February. Trade data shows Russia’s share of India’s crude imports fell to a two‑year low in December 2025, lifting OPEC’s share to an 11‑month high, as India increased purchases from the Middle East, Africa, and South America.
Indian Union Budget 2026‑27: Capex jumps to US $146 Billion, fiscal deficit at 4.3% (Financial Express)
Finance Minister Nirmala Sitharaman presented her ninth consecutive Union Budget (2026‑27), prioritizing growth over fiscal consolidation as gross capital expenditure was raised to ₹12.2 lakh crore (USD 146 billion). The fiscal deficit is pegged at 4.3% of GDP for FY27, slightly lower than 4.4% in FY26, while gross market borrowing is projected at ₹17.2 lakh crore (USD 206 billion). The Budget allocated funds to seven strategic sectors: textiles, capital goods, semiconductors, rare earths, electronic components, and biopharma with special emphasis on rejuvenating 200 legacy industrial clusters and supporting Champion SMEs through equity funding. A notable urban initiative earmarks ₹5,000 crore (USD 600 million) each for Tier II and Tier III cities over five years, anticipating an urban population of 600 million by 2035 requiring ₹60 lakh crore (USD 720 billion) in infrastructure investment. The Sixteenth Finance Commission report retained the current tax devolution share for states, while the Centre set a medium‑term target to reduce the debt‑to‑GDP ratio to 50% by FY31. Ratings agency Moody’s described the Budget as tactical rather than transformative, citing risks from capital outflows, rising interest burdens (49% of net tax receipts in FY27), and limited tax buoyancy projected at 0.8x.
Affordable housing share may fall to 12% warns Confederation of Real Estate Developers’ Associations of India (Money Rediff)
The Confederation of Real Estate Developers’ Associations of India (CREDAI), representing nearly 15,000 developers nationwide, expressed disappointment with the Union Budget 2026‑27, citing the absence of incentives for affordable housing. CREDAI National President Shekhar Patel warned that the share of affordable housing in new launches could decline from 18% to nearly 12%, given rising land and construction costs without policy support. Both CREDAI and NAREDCO had urged the government to revise the outdated definition of affordable housing by raising the price cap from ₹45 lakh (USD 54,000) to ₹80–90 lakh (USD 96,000-108,000), but no such measure was announced. The associations also sought tax sops for developers and fiscal incentives to boost supply, noting that the current 1% GST rate is insufficient to stimulate demand. CREDAI emphasized that affordable housing is “economic infrastructure” critical for employment, consumption, and social stability, warning of consequences such as higher rentals, longer commutes, and growth of informal housing. While disappointed on housing, CREDAI welcomed the Budget’s focus on infrastructure spending—including highways, metros, logistics corridors, and railways as well as reforms for ease of doing business through faster approvals and digitisation.
Trump’s Iran sanctions force India to halt Chabahar funding (First Post)
In the Union Budget 2026‑27, Finance Minister Nirmala Sitharaman cut India’s allocation for the Chabahar port project in Iran to zero, a sharp reversal from ₹400 crore (USD 48 million) granted in FY26. Since 2015, India has invested about ₹1,100 crore (USD 132 million) in the port, which was envisioned as a strategic gateway to Afghanistan and Central Asia, bypassing Pakistan. The move comes as US President Donald Trump intensified sanctions and military pressure on Iran, deploying warships and fighter planes to West Asia and reinstating Chabahar‑related sanctions in September 2025. India had secured a six‑month waiver from the US in October 2025, valid until April 26, 2026, but the Ministry of External Affairs (MEA), through spokesperson Randhir Jaiswal, confirmed that talks are ongoing with Washington for an extension. The Budget cut contrasts with the previous year’s increase from ₹100 crore (USD 12 million) to ₹400 crore (USD 48 million), reflecting uncertainty over India’s ability to continue the project under sanctions. Analysts warn that the zero allocation undermines India’s regional connectivity ambitions, especially as Trump has also imposed 50% tariffs on Indian goods linked to Russian oil purchases and taken positions adverse to India on Kashmir and Indo‑Pacific strategy.
