Russia has assured that it will maintain oil exports to India despite increasing pressure and tariff threats from the United States. In recent statements made in New Delhi, Russian officials emphasized the strength of India-Russia energy ties and highlighted a special mechanism designed to ensure uninterrupted crude supplies even amid external sanctions and 25–50% tariffs imposed by the US on Indian imports.

Evgeny Griva, Russia’s Deputy Trade Representative in India, confirmed that India’s imports of Russian crude are expected to remain at current levels. “There will be around a 5% discount on Russian crude for India, subject to negotiations,” he said, pointing out that Russia sells oil to India at a notable price advantage compared to other sources. This discount and existing trade complementarity, Russia believes, position India as a key and growing consumer of its oil.

Despite Washington’s attempts to discourage India’s purchases of Russian crude—part of broader sanctions aimed at curtailing Russia’s revenues amid the Ukraine conflict—New Delhi has defended its right to buy from the most affordable sources, calling the US tariffs “unreasonable.” The Indian government has also signaled willingness to expand bilateral trade with Russia, potentially reaching $100 billion in annual turnover by 2030.

Roman Babushkin, the Russian Deputy Chief of Mission in India, was vocal in criticizing the US stance, labeling the sanctions “unjustified” and “unilateral.” He also expressed confidence that India-Russia energy cooperation will continue unabated despite external pressure. Babushkin noted that while the situation is challenging for India, Russia remains a reliable partner, and these sanctions largely harm those imposing them.

India’s state-owned refiners have reportedly resumed Russian oil imports after a short pause due to US tariff pressures. Deliveries of Russian Urals crude scheduled for September and October 2025 are expected to proceed, reinforcing India’s position as one of Moscow’s largest oil buyers alongside China.

This ongoing energy relationship highlights the complicated geopolitics of global energy markets, where economic pragmatism intersects with international diplomatic tensions. For India, securing affordable and reliable energy supplies remains a national priority, while Russia counts on sustained demand from Asia to offset Western sanctions.

Disclaimer: This image is taken from Reuters.

The Reserve Bank of India (RBI) decided to maintain its key lending rate at 5.5% during the latest bi-monthly Monetary Policy Committee (MPC) meeting, which concluded on Wednesday. After three days of deliberations, Governor Sanjay Malhotra shared the central bank’s views on the country’s economic outlook, touching upon inflation trends, growth prospects, and the growing concerns over global trade tensions, especially in light of new tariff measures announced by the United States.

This was Malhotra’s fourth monetary policy statement since taking office. In his address, he outlined how India’s economy stands at a crucial juncture, navigating domestic strength while facing external challenges. Stressing the MPC's unanimous decision to hold the repo rate at 5.5%, he added that other key rates, including the Standing Deposit Facility at 5.25% and the Marginal Standing Facility and Bank Rate at 5.75%, would also remain unchanged. The Governor noted that the central bank would remain vigilant, continuously assessing fresh data and evolving economic conditions to guide future policy actions with a neutral stance.

A significant portion of Malhotra’s remarks focused on the uncertainties emerging from global trade disputes. He pointed out that the recent wave of tariff announcements and ongoing trade negotiations could pose headwinds to India’s growth in the near term. While the domestic economy shows resilience, he cautioned that external factors like tariffs, geopolitical tensions, and global financial market volatility could influence India’s growth trajectory.

Despite these risks, the RBI has retained its GDP growth projection at 6.5% for 2025-26. Malhotra attributed this confidence to favourable factors such as an above-normal monsoon, easing inflation, and supportive financial conditions. He also emphasized that sectors like construction and trade are likely to contribute significantly to services sector growth in the coming months.

On inflation, the Governor highlighted that headline inflation has eased considerably, mainly due to volatile food prices, while core inflation has remained stable. He acknowledged that although inflationary pressures have softened, volatility in food prices, especially vegetables, remains a concern. The RBI has previously reduced rates by 100 basis points since February 2025, and Malhotra mentioned that the effects of these cuts are still unfolding across the economy.

He further remarked on the global economic scenario, noting that while political uncertainties have somewhat subsided, global trade issues continue to pose challenges. Policymakers around the world are grappling with slow economic growth, sticky inflation, and elevated public debt. Despite these global challenges, Malhotra expressed optimism about India’s medium-term prospects, backed by strong fundamentals and robust economic buffers. However, he also cautioned that navigating this complex global environment will require careful policy manoeuvring.
Disclaimer: This image is taken from PTI.

India’s continued economic progress makes it a vital pillar of global stability at a time when the world is in need of new engines of growth and scalable development models, said Suman Bery, Vice Chairman of NITI Aayog, during his address at the ministerial segment of the High-Level Political Forum on Sustainable Development at the UN Headquarters on Monday.

Bery emphasized that the international community is facing a period of profound economic change and uncertainty, underscoring the importance of unified efforts to achieve the Sustainable Development Goals (SDGs). In this context, he said, India is uniquely positioned to provide stability, growth, and shareable development frameworks.

He highlighted India’s economic trajectory as a testament to what sustained growth can achieve, describing the country as a vibrant democracy with improving socio-economic indicators—fueled by inclusive digital innovation, reform-driven governance, and empowerment of all social groups. Bery also noted India’s proactive role in advancing progress across the Global South, offering its development journey—marked by scale, speed, and stability—as a credible and adaptable model for other developing nations. He pointed out that between 2013-14 and 2022-23, an estimated 248 million Indians were lifted out of poverty.

With the world's largest youth population entering the workforce, India is focused on securing a productive and promising future for them, Bery said, adding that the country’s development experience proves that inclusive and sustainable progress is not only achievable but scalable. India has actively supported fellow developing countries with concessional financing, technology sharing, and capacity-building efforts, including in areas such as solar energy and digital governance.

As the UN marks its 80th year, Bery reaffirmed India’s strong belief in the organization’s role as the foundation of multilateral cooperation. He stressed the need for a more inclusive and effective UN that reflects today’s global realities and enables all nations to shape a shared future. UN Secretary-General António Guterres, also speaking at the forum, warned of rising global conflicts, economic slowdowns, inequality, and shrinking aid budgets, all of which threaten progress toward the SDGs. Despite these challenges, he urged the global community not to lose hope, stating that the SDGs remain within reach—if pursued with urgency and determination.
Disclaimer: This image is taken from PTI.

India’s electronics sector has expressed deep concern over China’s informal trade curbs, warning that these measures could undermine the country’s manufacturing momentum and threaten its ambitious smartphone export target of $32 billion for the current fiscal year, The Economic Times reported. According to the India Cellular and Electronics Association (ICEA), Chinese authorities are implementing unofficial restrictions aimed at disrupting India's supply chain. In a letter addressed to the Indian government, the association alleged that delays at Chinese ports, along with constraints on exporting machinery and skilled personnel, are creating serious production bottlenecks. These disruptions are driving up costs and affecting export timelines.

The ICEA, which represents major global brands such as Apple, Google, Vivo, Oppo, Motorola, Foxconn, Dixon, Tata Electronics, and others, said that while domestic production remains unaffected for now, the country’s export-focused manufacturing sector is increasingly at risk. Exports touched $24 billion in FY25 and are expected to cross $32 billion this year, but this outlook is now under pressure due to external challenges.

These developments come at a time when India is positioning itself as a major player in global electronics manufacturing, particularly as a key alternative to China. Apple’s contract manufacturer Foxconn has reportedly started pulling out hundreds of Chinese engineers and technicians from its Indian operations, a move that could impact production timelines for the upcoming iPhone 17, slated for release in September.

Moreover, some Chinese equipment makers that had previously planned to set up factories in India are now stepping back. Sources indicate that Chinese authorities are intentionally withholding critical manufacturing equipment meant for Indian production units, particularly those linked to iPhone assembly. Customs officials in China are said to be detaining machinery indefinitely, without formal reasons or written instructions. ICEA has called on the Indian government to urgently step in and address these escalating concerns. The association emphasized that the restrictions are not being imposed through official policy but are instead being enforced informally through verbal instructions—making them difficult to contest or plan around.

Despite the mounting challenges, India’s smartphone exports reached a new peak in March 2025, with $3.1 billion worth of shipments. Apple has reportedly accelerated its exports to the US to build stock in anticipation of potential tariff hikes. Since October last year, monthly mobile phone exports have consistently remained above the $2 billion mark, largely driven by the government’s Production-Linked Incentive (PLI) scheme launched in 2020. Thanks to this policy, India’s annual smartphone exports jumped to $24.1 billion in FY25.

In recent years, India has emerged as a vital hub in Apple’s global supply chain. Until five years ago, iPhones were exclusively made in China, but now India accounts for around 20% of global iPhone production. This growth has been supported by manufacturers like Foxconn and Tata Electronics, helping India establish itself as a serious contender in the global electronics space. However, the future of this momentum may hinge on how the country navigates increasing trade friction with China.
Disclaimer: This image is taken from Bloomberg.

After the US announced a pilot program that may require bonds up to 15000 dollars for certain tourist and business visas, Hairianto Diman and Susan Ng explore the importance of travel visas in today's interconnected world with insights from Scott Moore, Managing Director of Henley and Partners.

Disclaimer: This Podcast is taken from CNA.

On Wednesday (Jul 16), Indonesian President Prabowo Subianto welcomed what he called a “new era of mutual benefit” with the United States after President Donald Trump set a 19 per cent tariff on Indonesian exports to the U.S. — significantly lower than the previously threatened 32 per cent. Andrea Heng and Hairianto Diman discuss the economic implications of the revised tariff with Adam Samdin, an economist from Oxford Economics’ Asia Macro team.

Disclaimer: This Podcast is taken from CNA.

If the US dollar falls against the Singapore dollar, is it a good idea to buy it even if you’re not planning a trip to the US soon? And what are the risks if the exchange rate drops sharply? In this week’s episode of Money Talks, Khoon Goh, Head of Asia Research at ANZ, explains the fundamentals of currency exchange.

Disclaimer: This Podcast is taken from CNA.

Singapore’s economy expanded by 3.9% year-on-year in the first quarter, slightly surpassing expectations. However, this marks a slowdown from the 5% growth recorded in Q4 2024. The Ministry of Trade and Industry cautioned that the global economic outlook continues to be marked by considerable uncertainty. Lance Alexander and Daniel Martin discuss the developments further with Selena Ling, Chief Economist at OCBC.
Disclaimer: This Podcast is taken from CNA.