Newspaper Summary 110326

 

Centre secures 1 mt LPG from US to bridge W. Asia supply gap

SAFETY NET. Tells refiners to maximise gas output; invokes Essential Commodities Act

Rishi Ranjan Kala New Delhi

The government has arranged around one million tonnes (mt) of liquefied petroleum gas (LPG) cargoes, mostly from the US, to meet the demand for the key cooking fuel used by more than 330 million consumers.

The proactive measure accompanied top-level discussions between Prime Minister Narendra Modi and senior Cabinet Ministers, including Nirmala Sitharaman (Finance), Hardeep Singh Puri (Petroleum), Piyush Goyal (Commerce) and S Jaishankar (External Affairs). The Prime Minister reportedly asked the Ministers to coordinate and ensure that consumers do not suffer from the impact of the West Asia conflict on the supply and price of petroleum products, especially LPG, sources said.

IMPORT DEPENDENCE

India burnt over 33 mt of LPG in FY25, with more than half of the demand met through imports. West Asia accounted for nearly 90 per cent of India’s LPG imports, which stood at 20.67 mt. Besides, it produced 12.79 mt during the year. Regular supplies of LPG are important for India as the country does not have strategic reserves for the cooking fuel.

“The LPG situation is getting more comfortable as production is being ramped up. Besides, we have been out in the market sourcing as much as we can,” said a top government source.

SECURING SUPPLIES

India has also been seeking to step up imports from the US and Canada. Another source said the LPG deficit was around 40 very large gas carriers (VLGCs), of which arrangements had been made for roughly 20 VLGCs. The cargoes are expected to arrive at Indian ports from the month-end.

A single VLGC can carry up to 50,000 tonnes of LPG. A back-of-the-envelope calculation shows that the LPG deficit was around 2 mt, of which cargoes for roughly 1 mt have been arranged.

Anticipating a disruption in domestic LPG supply, the government has been prioritising production of the gas. For instance, India invoked emergency powers last week, directing refiners to maximise production of the critical cooking fuel.

Based on data from the Petroleum Planning and Analysis Cell (PPAC), India’s average per day production of LPG stood around 34,613 tonnes in October 2025, which dipped to 34,533 tonnes in November. However, the output rose to 35,968 tonnes in December 2025 and further to 37,355 tonnes in January 2026; February numbers are yet to be published. For the entire calendar 2025, India’s daily average LPG production stood around 38,099 tonnes.

SUPPLY REGULATION

India also invoked the Essential Commodities Act late on Monday to regulate natural gas supply. The order prioritises the supply of natural gas to domestic piped natural gas supply (D-PNG), compressed natural gas (CNG) for transport and LPG production, as well as pipeline compressor fuel and other essential pipeline operational requirements.

To stabilise ₹, RBI may use 2013 plan to help banks mop up NRI $ deposits

K Ram Kumar Mumbai

The Reserve Bank of India (RBI) may look to revive a strategy it last employed in 2013 to attract dollars into the country via the Foreign Currency Non-Resident (Banks) and Non-Resident External (NRE) deposit routes. This could help stabilise the rupee, which is facing headwinds due to the heat of the West Asia conflict.

Experts suggest the central bank has two primary options to break the fall of the rupee and bolster its market intervention capabilities: exempting these NRI deposits from statutory pre-emptions—specifically the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)—and opening a special window for banks to swap fresh, long-tenor FCNR(B) dollar funds at a fixed rate.

RUPEE PRESSURE

The rupee depreciated approximately 7.4 per cent to ₹91.81 per dollar as of Tuesday, falling from 85.49 at the end of March 2025. This decline is attributed to a widening merchandise trade deficit, exacerbated by steep US tariffs on Indian goods and selling by foreign portfolio investors (FPIs) in domestic equity markets.

A weak rupee combined with high energy prices from the Gulf conflict risks stoking inflation, particularly as India imports nearly 90 per cent of its crude oil. Temporarily exempting FCNR(B) and NRE deposits from SLR (currently ₹18 for every ₹100 deposited) and CRR (₹3 with the RBI) would allow banks to direct all raised deposits into credit.

STRENGTHENING INTERVENTION FIREPOWER

V Rama Chandra Reddy, Head of Treasury at Karur Vysya Bank, noted net dollar outflows in both foreign direct investment (FDI) and FPI routes during the third quarter of FY26. He suggested that incentivising banks to mobilise FCNR(B) deposits through temporary reserve ratio exemptions would further bolster the RBI’s firepower to intervene in the market.

K Arvind, Executive Vice-President at Tamilnad Mercantile Bank, stated that a swap window for fresh FCNR(B) dollar funds would be "beneficial to all stakeholders". Such a move would strengthen the RBI’s ability to defend the currency, generate rupee liquidity for the banking system, and provide better returns for NRIs. He added that NRIs might channel their overseas savings into Indian bank deposits due to the uncertainty caused by the global ramifications of the West Asia conflict.

DEPOSIT TRENDS

According to RBI data, overall NR deposit inflows in the first nine months of FY26 were approximately 16 per cent lower, totalling $11.204 billion compared to $13.333 billion in the previous year. Within this category:

• FCNR(B) deposit accretion dropped 68 per cent year-on-year to $2.042 billion.
• NRE deposits rose 42 per cent to $5.065 billion.
• NRO deposits increased 24 per cent to $4.097 billion.

Essential Commodities Act invoked to prioritise LPG supply for households

Our Bureau New Delhi

The government has invoked the Essential Commodities Act to regulate the supply of natural gas, prioritising the critical commodity for households and CNG vehicles, as well as for the production of liquefied petroleum gas (LPG) for shipment. The order was issued by the Ministry of Petroleum & Natural Gas (MoPNG) on Monday.

AS PER NEED

The order prioritises the supply of natural gas to:

• Domestic piped natural gas (D-PNG) supply.
• Compressed natural gas (CNG) for transport.
• LPG production.
• Pipeline compressor fuel and other essential pipeline operational requirements.

These sectors “shall be treated as priority allocation and shall be maintained subject to operational availability to hundred per cent of their average past six month average gas consumption”.

The government’s second priority is to ensure 70 per cent natural gas supply to the fertilizer plants.

“The gas marketing entities shall ensure that gas supply to tea industries, manufacturing and other industrial consumers through the national gas grid is maintained at 80 per cent of their past six month average gas consumption,” stated the government order.

All city gas distribution (CGD) entities shall ensure that industrial and commercial consumers supplied through their networks also receive 80 per cent of their average gas consumption over the past six months.

Additionally, oil refining companies are expected to absorb the impact of liquefied natural gas (LNG) supply disruption by reducing gas allocation to refineries to approximately 65 per cent.

GAS ALLOCATION

The document also fixes the gas allocation mechanism. State-run GAIL, in coordination with the Petroleum Planning and Analysis Cell (PPAC), shall manage the supplies of natural gas to implement these directions. GAIL is required to submit the invoice of every diverted volume of natural gas to the PPAC.

A pooled price shall be notified by the PPAC for the natural gas diverted from non-priority to priority sectors.

Inflows into equity mutual funds rise 8% in February to ₹25,978 crore

TOP PICKS. Flexi-cap and mid-cap funds remain attractive collecting ₹6,925 cr and ₹4,003 cr: AMFI data

Suresh P Iyengar Mumbai

Equity inflows into mutual fund schemes rose 8 per cent in February to ₹25,978 crore, up from ₹24,029 crore in January, as investors used the market correction to accumulate more units. Flexi-cap and mid-cap funds continued to attract the highest inflows at ₹6,925 crore (₹7,672 crore) and ₹4,003 crore (₹3,185 crore) respectively, according to data released by the Association of Mutual Funds in India (AMFI) on Tuesday.

SIP INFLOWS DIP

However, systematic investment plan (SIP) inflows fell to ₹29,845 crore from ₹31,002 crore in January, largely because mutual funds lost four days of debit mandates in February. Venkat Chalasani, Chief Executive of AMFI, said that apart from the shorter month, February 28 was a bank holiday, meaning instalments scheduled for the last four days will now be reflected in March collections.

On the Securities and Exchange Board of India (SEBI) decision to discontinue Children’s and Retirement fund schemes, Chalasani said AMFI had made a representation to the regulator citing difficulties in closing the schemes with “immediate effect”, following which the deadline was extended to March-end. “We will make another representation highlighting the hardship investors may face due to the closure of these two schemes and await the regulator’s final decision,” he added. Children’s and Retirement schemes together have 62.86 lakh folios, with ₹247 crore in inflows and assets under management (AUM) of ₹57,663 crore as of February-end.

HYBRID, ETF FLOWS

Hybrid schemes saw 31 per cent lower inflows at ₹11,983 crore, compared with ₹17,356 crore in January, largely due to a decline in multi-asset scheme inflows to ₹8,476 crore (₹10,485 crore). Gold ETFs attracted ₹5,255 crore, sharply lower than ₹24,040 crore in January, while silver ETFs recorded a net outflow of ₹826 crore, compared with an inflow of ₹9,463 crore in the previous month.

Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers India, said that moderating valuations in the broader markets appear to be strengthening investor confidence in long-term prospects. Nehal Meshram, Senior Analyst–Manager Research at Morningstar Investment Research India, said that despite the moderation, inflows into gold ETFs highlight sustained investor interest in gold-backed products.

Share of nuclear energy must grow multifold to support AI infra, says Kris Gopalakrishnan

Tejaswini S Bengaluru

With AI reshaping industries and straining power grids worldwide, Infosys Co-founder Kris Gopalakrishnan said India has little room for delay, and nuclear energy must grow multifold to 20 per cent of the country's energy mix, from 1.7 per cent now, to power the digital infrastructure the AI era demands.

Speaking at the Confederation of Indian Industry Karnataka State Annual Meeting 2026 in Bengaluru on Tuesday, he said the opportunity for AI applications was significant. “The application economy could grow to about 10 times the size of the AI model, and infrastructure layers that support it, within five to ten years,” he noted.

Rabindra Srikantan, Chairman, Confederation of Indian Industry Karnataka State Council and Managing Director, ASM Technologies Ltd, said AI could raise industrial productivity by about 30 per cent, automate repetitive tasks and improve decision-making across sectors. He added that industries with sensitive data, such as defence, may adopt the technology more cautiously.

Gopalakrishnan said AI would affect every sector of the economy, from consumer services to agriculture and banking services. He said applications such as digital shopping assistants, healthcare advisors and personalised information tools would expand rapidly as AI systems become widely used.

WORKFORCE SKILLING

The Infosys Co-founder said wider adoption of the technology could accelerate India’s economic growth and help achieve the goal of a developed nation earlier than 2047. The workforce would need largescale retraining to support this transition.

“The country’s 5.5 million IT professionals would need to be retrained in the use of AI and its various aspects and become proficient in its use,” he said. Students across disciplines, including liberal arts and engineering, would also need to learn how to work with AI systems, he added.

STRONGER RESEARCH

Gopalakrishnan said stronger research and development investment would be necessary for India to develop its own AI technologies rather than depend on imported systems. He also pointed to challenges, including the pace of investment and the need for greater urgency in building domestic technology capabilities.

Clearer exits emerge for D2C start-ups as FMCG firms step up acquisitions

Jyoti Banthia Aishwarya Kumar Bengaluru

Valuation benchmarks for India’s direct-to-consumer (D2C) brands are beginning to shift as large fast-moving consumer goods (FMCG) companies move from passive observers to active acquirers, creating clearer exit pathways for venture capital and private equity investors. Recent strategic investments, such as Marico acquiring a majority stake in nutrition brand Cosmix and Dabur picking up a stake in skincare label RAS Luxury Skincare, are early signals of a broader consolidation wave in India’s consumer start-up ecosystem.

MATURING MARKET

Industry investors say these deals reflect a maturing market where digital-first brands are increasingly being built with the potential to eventually be folded into the portfolios of large FMCG companies. “FMCG has generally been among the most acquisitive sectors globally. The fact that we are now starting to see this happen in India speaks to the market maturing to allow niche brands to emerge and validate a customer need that larger FMCG companies can then acquire and expand to a broader base,” said Sandeep Murthy, Partner and Managing Director at Lightbox.

Murthy added that the emergence of credible acquisition pathways improves investor confidence and can support stronger valuations for start-ups in the sector. “Valuation uplift is less due to the strategic investors joining but more due to the fact that the exit channel is real,” he said, noting that private investors are still willing to enter at relatively rich multiples if they expect companies to grow into those valuations over time.

Over the past few years, several FMCG majors have stepped up acquisitions of digital-first brands to strengthen presence in emerging categories. Hindustan Unilever took full ownership of nutrition brand OZiva under a pre-agreed framework after scaling the business, while ITC increased its stake in baby-care brand Mother Sparsh to gain full control of a digital-first play.

However, investors caution the valuation uplift is selective rather than universal. “The valuation uplift is selective. Brands demonstrating strong repeat cohort behaviour, omni-channel strength and high gross margins are the primary beneficiaries,” said Sanchayan Chakraborty, Partner at Aavishkaar Capital. Strategic buyers are increasingly focused on scalable brands with disciplined operations and predictable economics, he said.

Deals across beauty, wellness, nutrition and food segments, including acquisitions by companies such as Tata Consumer Products and Marico, demonstrate a growing willingness among large consumer companies to pay premiums for brands that bring differentiated products and strong digital distribution. For founders and early investors, this trend is expanding the range of exit options beyond public listings. “When a market offers consolidation opportunities, it is attractive to all investors. D2C businesses now have many options for exits... more options means better value,” Lightbox’s Murthy noted.

‘India becoming tech ambitious agri-insurance market’

India operates the largest crop insurance ecosystem globally by farmer count, anchored by PM Fasal Bima Yojana

Subramani Ra Mancombu Chennai

India is becoming the most technologically ambitious agri-insurance market globally, with the landscape transitioning from scale-first to intelligence-led coverage, according to Navin Sharma, Senior Leader from EDME Insurance Brokers Ltd. “India today operates the largest crop insurance ecosystem globally by farmer count, anchored by the Pradhan Mantri Fasal Bima Yojana (PMFBY). The evolution is no longer about onboarding farmers alone; it is about precision, credibility and sustainability,” he told businessline.

EDME Insurance Brokers recently completed the acquisition of UIB India. The Mumbai-based firm is recognised for its technology-led approach and is backed by prominent investors, including Samara Capital, Norwest Venture Partners and Creador. EDME has established a strong pan-India presence with 19 offices, managing relationships with diverse clients including global corporates, PSUs, MSMEs and retail customers.

SHIFT FROM MANUAL

EDME provides end-to-end solutions across retail, corporate and specialty segments, including agriculture and livestock lines. The agri-insurance sector is currently shifting from manual, area-based assessments to satellite, artificial intelligence and model-based yield estimation. Reactive claim settlement is also moving toward predictive and near real-time payouts through public-private-technology partnerships.

While Western agri-insurance systems are generally farmer- and revenue-centric, offering protection for farm-level yield and price, the Indian system remains climate- and yield-centric with area-based risk pooling. “However, India is leapfrogging by embedding satellite intelligence and digital public infrastructure at a national scale, something Western markets adopted gradually over decades,” Sharma noted.

February 2026 was 5th warmest month on record

Global average surface temperature was 13.26°C, 0.53°C higher than the 1991-2020 February average

Srikrishnan PC Chennai

February 2026 was the fifth warmest month on record, with temperatures reaching 1.49°C above pre-industrial levels, according to the Copernicus Climate Change Service, implemented by the European Centre for Medium-Range Weather Forecasts (ECMWF).

The month witnessed intense storms and unusually heavy rainfall, triggering severe flooding across parts of western Europe, while the Arctic sea ice extent dropped to the third-lowest level on record for February. The month was marked by heavy precipitation particularly across western Europe and northern Africa, with France, Spain, Portugal and Morocco recording exceptionally wet conditions. February also witnessed flooding events in Australia, Mozambique and Botswana.

CLIMATE CHANGE IMPACT

Samantha Burgess, Strategic Lead for Climate at ECMWF, said, “The extreme events of February 2026 highlight the growing impacts of climate change and the pressing need for global action". She noted that while global temperatures reached record highs, Europe experienced stark temperature contrasts. Exceptional atmospheric rivers—narrow bands of very moist air—brought record rainfall and widespread flooding to western and southern Europe.

According to the ERA5 dataset, the average surface air temperature was 13.26°C, which is 0.53°C higher than the 1991-2020 average. The warmest February on record continues to be 2024. Interestingly, in Europe, the average land temperature was -0.07°C, making it one of the three coldest Februarys recorded across the continent in the past 14 years.

REGIONAL CONTRASTS

The European continent experienced sharp regional contrasts:

• Warmer-than-average: Western, southern, and south-eastern Europe.
• Colder-than-average: Fennoscandia, the Baltic States, and north-west Russia.

Outside Europe, temperatures were above average across the US, north-east Canada, West Asia, Central Asia and East Antarctica. Conversely, colder conditions were seen in Alaska, northern Canada, Greenland and northern Russia.

For the boreal winter (December 2025 to February 2026), the global average temperature was also the fifth highest recorded, at 0.51°C above the 1991-2020 average. In Europe, however, the winter was among the two coldest in the past 13 years.