Industrial output rebounds as IIP rises by 1.8%. India could double US oil imports to cut dependence on Middle East.
Good News: As per the Index of Industrial Production (IIP) data released by the Government on January 10th, the country's industrial output grew by 1.8%, rebounding to the positive zone after October's 3.8% contraction. Manufacturing output, which accounts for more than 75% of the entire index, grew 2.7% in November, against a contraction of 2.1% in October. Moneycontrol
Hindi-Cali Bhai Bhai: According to reports, India is planning to double its crude oil imports from the US as it seeks to reduce its reliance on Middle Eastern imports, given the region's volatility and unpredictability. India is also keen on inking long-term oil supply contracts with Russia and petrostates in Africa.
Fact Box: As a net oil importer (8.38 of every 10 litres of crude consumed in the country is imported), India is heavily dependent on the Middle East. In 2018-19, it imported 226.5 million tonnes (MT) of oil worth ?7.83trn ($111.9bn). 51% of this came from just three sources - Iraq (46.6 MT), Saudi Arabia (40.3 MT) and the UAE (17.5 MT).
Oil purchases from the US, meanwhile, have crossed 6 MT. This number, officials opine, can "easily" be doubled to 12 MT a year. HT
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