Daily News - Wednesday, 8 October 2025

Russian oil traders ask Indian buyers to pay in yuan amid strong China ties (Business Standard)

Traders supplying Russian oil to India have started requesting payments in Chinese yuan, with Indian Oil Corp already settling a few cargoes this way—signalling a shift influenced by the recent thaw in India-China relations and the push to bypass dollar-based trade amid Western sanctions on Moscow. The move simplifies transactions by removing the costly conversion from dirhams or dollars to yuan, which is directly exchangeable for roubles, and could expand access to discounted Russian oil for Indian refiners who struggled with limited payment options. This development also reflects a broader trend of de-dollarisation in global energy trade, as geopolitical shifts and renewed India-China engagement create space for alternative currency settlements in critical sectors like oil.

⁠⁠Google to pour $10 bn into Visakhapatnam for massive data hub cluster (Business Standard)

Google is preparing to invest $10 billion to build a massive 1-gigawatt data centre cluster across three campuses near Visakhapatnam, marking its largest-ever direct investment in India and a major boost to the country’s digital infrastructure. The project, expected to be cleared by the Andhra Pradesh government this week and operational by July 2028, will include submarine cables, fibre networks, and advanced telecom systems, positioning Visakhapatnam as India’s first international AI infrastructure hub. This investment reflects the growing dominance of big tech in India’s data centre market—set to attract up to ₹2 trillion in the next few years—and signals Google’s intent to anchor itself at the heart of India’s expanding AI and cloud ecosystem.⁠

⁠⁠Russian oil purchases not bedrock of Indian economy: US trade official (Business Standard)

US Trade Representative Jamieson Greer said India’s dependence on Russian oil is not fundamental to its economy and noted that New Delhi is gradually diversifying its energy sources, even as Washington respects India’s sovereign trade choices. His remarks come amid renewed US-India trade talks and ongoing 50 per cent tariffs imposed by the Trump administration, partly linked to India’s continued import of discounted Russian crude—imports that rose from less than 1 per cent before the Ukraine war to nearly 40 per cent today. While former White House adviser Peter Navarro has accused India of profiteering from Russian oil, Greer maintained that India remains pragmatic, holds a $40 billion trade surplus with the US, and that Washington’s broader focus under Trump is to pressure Moscow and end the Russia-Ukraine war.

⁠⁠Keir Starmer's India visit to deepen trade, fintech, and defence ties (Business Standard)

⁠UK Prime Minister Keir Starmer’s two-day visit to India aims to deepen economic and strategic ties by advancing the Comprehensive Economic and Trade Agreement signed in July, with both leaders focusing on fintech innovation, defence collaboration, and the Vision 2035 roadmap for technology and critical minerals. India launched a new Foreign Currency Settlement System at GIFT IFSC to strengthen financial linkages with the UK, while the FTA promises immediate zero-duty access on 99.1% of tariff lines, potentially doubling bilateral trade to $100 billion by 2030 and boosting sectors like textiles, engineering, and IT services. Cooperation is also expanding in education, healthcare, and aviation, with British and Indian universities opening campuses at GIFT City and airlines increasing connectivity—reflecting a partnership that now extends beyond trade into long-term people-to-people and institutional collaboration.

⁠⁠World Bank raises India growth estimate for FY26, cuts for FY27 on Trump tariffs (Financial Express)

The World Bank has raised India’s GDP growth forecast for FY2025 to 6.5%, citing stronger-than-expected first-quarter performance and resilient consumption, but lowered next year’s projection to 6.3% due to the impact of the newly imposed 50% US tariffs on Indian exports. The report highlights India’s continued position as the world’s fastest-growing major economy, driven by robust investment, public infrastructure spending, rural wage growth, and GST reforms that simplify compliance and spur business activity. However, it warns that the steep US tariffs—affecting nearly three-quarters of India’s exports to its largest trading partner—could slow growth momentum in FY26, even as strong domestic fundamentals and easing monetary policy continue to support the economy.