India buying Russian oil below the Western price cap, officials say The Biden administration will continue to discuss India’s purchases of Russian oil with government officials but is satisfied so far that New Delhi is buying the crude well below a western price cap, senior State Department officials told reporters on Wednesday. India’s purchases of Russian oil are a constant topic of discussion between the US and India as Washington seeks to deny Russia the revenue it needs to fund its invasion of Ukraine, the officials said. They briefed reporters on condition of anonymity. It’s good both for the Indian economy and for stabilizing oil markets that India is buying crude at deep discounts from the cap, the officials said. They spoke as Secretary of State Antony Blinken arrived in New Delhi for a meeting of Group of 20 foreign ministers. Blinken will try to rally his counterparts to condemn Russia’s aggression in Ukraine and highlight the impact the war has had on world food and energy prices. However, India’s ability to benefit from lower prices now faces the challenge of tightening enforcement. Refinery and banking executives reported that the need to prove imports comply with a $60-a-barrel cap imposed by the Group of Seven nations now requires additional steps and verification that may weigh on purchases. The US expects an overwhelming majority of G-20 countries to continue standing against Russia’s war, with Russia and China remaining as isolated outliers, the officials said, adding that they expect to see language in a final statement that reflects that position. The US, which has alleged that China is considering offering weapons or other lethal aid to Russia, also plans to raise that issue on the margins of the G-20, including with countries other than the close allies and partners it has already briefed about the matter, the officials said.
Logistics, good or bad, are driven by the states and the commerce ministry has a LEADS (Logistics Ease Across Different States) report, based on perceptions. The 2023 version was released in December. Since states are heterogenous, in the reporting, they are divided into four groups—coastal, landlocked, north-east, and UTs. States that do well are called achievers. Nomenclature matters. Thus, states that are middling aren’t called average. They are called fast movers. States that are sub-par are called aspirers. Let me highlight coastal states, since 75% of export cargo is estimated to originate from them. Among coastal states, ones that do well are Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu. The ones that lag are Goa, Odisha, and West Bengal. While India’s logistics performance may have improved over time, that’s not true of every state. Some have slipped. Most states have a state-level logistics policy, including Goa and Odisha. West Bengal, bottom of the pecking order in the coastal category, doesn’t have one. To quote from LEADS 2023, “Looking ahead, the State (West Bengal) could benefit from formulating a State Logistics Master Plan and State Logistics Policy to drive efficiency improvements and facilitate investments within the logistics sector and undertake consultation with the logistics stakeholders for educating and informing them about the initiatives State is undertaking for the development and improvement of logistics sector.”
Logistics has been talked about for a long time and India has also focused on improving performance. We are now getting some precise data on measurement and quantification. That helps.
Bibek Debroy, chairman, EAC-PM. Views are personal.