Brent crude rises to highest level in nearly a month as US-Iran deadlock keeps Strait of Hormuz disrupted, raising risks of higher import bills, fuel prices & inflation for India.
Analysts say India is unlikely to face an immediate crude shortage but could see higher import costs & delays as Bab el-Mandeb emerges as another chokepoint after Hormuz.
Agricultural policy has prioritised price stabilisation over fostering long-term competitiveness. This incentivises the pursuit of subsidies rather than productivity enhancement.
About 150 mills have stopped operations, while another 50 have reduced output as local steel prices hover near five-year lows. Almost half of India’s steel output flows from smaller units
India banned wheat exports in 2022 after output was curtailed due to a heat wave, but overseas sales picked up as Russia’s invasion of Ukraine sent global prices to multi-year highs.
The decision to remove the additional duty was one of six WTO disputes India and US resolved when PM Modi visited Washington in June but it was implemented only last week.
The Indian experience so far is that when imports are banned or restricted in the expectation of domestic manufacturers filling in, it almost never — in fact, never — happens.
Repeated changes in cotton import duty have prioritised textile competitiveness when mills face high input costs. But policy can also put pressure on farmgate prices.
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