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US has emerged as strong energy partner: Jaishankar

Amiti Sen New Delhi

In a strong signal that India will maintain its energy sovereignty, External Affairs Minister S Jaishankar stated that while the US, along with some other nations, has emerged as a reliable energy partner, India will continue to source energy from multiple suppliers to navigate current vulnerabilities in the Strait of Hormuz and secure its future needs.

Speaking at a joint media briefing on Sunday, US Secretary of State Marco Rubio said the US and India are likely to conclude a bilateral trade agreement that will be enduring and mutually beneficial, adding that the US Trade Representative is expected to visit India soon to advance the negotiations.

“This is an era of de-risking, and probably energy more than anything else requires de-risking. So, a big country, if you are to do de-risking, looks at multiple sourcing and for us, the US has emerged as a very significant and reliable source of energy, as indeed have some other countries," Jaishankar said. He further explained that diversifying energy sources is the way India will deal with the current situation in Hormuz and keep energy prices down for global growth. These comments are particularly significant given the ongoing pressure from the US for India to stop oil purchases from Russia.

WAR IMPACT

Rubio and Jaishankar discussed the economic repercussions of the West Asia crisis triggered by the US and Israel’s war with Iran. Their discussions also covered a wide range of bilateral issues, including:

• Trade and energy security
• Defence cooperation
• Critical mineral supplies
• Civil nuclear partnership
• Visa processing challenges for Indian travellers

The US Secretary of State, currently on a four-day visit to India, also held discussions with the Prime Minister on Saturday and is scheduled to attend the Quad Foreign Ministers’ meeting on Tuesday.

Strong heatwave drives up sales of ice cream, beverages and ACs

Meenakshi Verma Ambwani New Delhi

As a searing heatwave grips large parts of the country, makers of ice creams, air-conditioners, and beverages are witnessing a sharp rebound in demand. This surge is fuelling hopes for a stronger-than-expected summer season following an initially sluggish start caused by unseasonal rains and cooler temperatures.

Quick Commerce Driving Growth

Companies across various categories report that consumption trends accelerated significantly in May, with quick commerce emerging as a major driver for impulse and immediate consumption purchases. Jayatheertha Chary, Managing Director of Mother Dairy, stated that demand growth is now expected to surpass earlier estimates of 30 per cent for the season. On quick commerce platforms specifically, ice cream volumes have more than doubled over the last 10 days, while fresh dairy products recorded strong double-digit growth.

Debabrata Mukherjee, MD of Lotte Ice Creams, noted broad-based growth across both impulse and take-home formats, such as cones, sticks, and single-serve cups.

Rebound in AC Sales

For the air-conditioner industry, this summer is critical after weak sales last year due to erratic weather. Despite taking price hikes in April to offset higher raw material costs and rupee depreciation, demand has strengthened across all regions.

NS Satish, CEO of Haier Appliances India, reported a growth of about 35 per cent this month, with demand picking up in northern and western regions while remaining strong in the south. Sanjay Chitkara, Director at LG Electronics India, also expressed expectations for strong growth in the ongoing quarter based on these robust May trends.

Beverage Uptick

Beverage makers are similarly reporting a sharp uptick in sales. Ravi Jaipuria, Chairman of Varun Beverages, highlighted highly favourable trends:

• Dairy is growing at 60–70 per cent.
• Nimbooz is growing at a great pace.
• Tropicana PET is growing at more than 100 per cent.
• The newly launched mid-priced energy drink, ‘Adrenaline Rush’ (₹60), is performing extremely well.

Rubio reminds India of intent to buy US goods worth $500 b

NULL & VOID. But with US SC declaring reciprocal tariffs illegal, deal irrelevant: Experts Amiti Sen New Delhi

US Secretary of State Marco Rubio on Sunday gave a fresh reminder of India’s commitment to purchasing $500 billion of US goods over the next five years by posting a thank you message to American diplomats who facilitated this pledge. However, some experts argue that because the reciprocal tariff framework collapsed following an unfavourable US Supreme Court verdict, the economic logic of the India-US bilateral trade agreement (BTA) has disappeared, rendering the $500-billion commitment irrelevant.

“The Indian government must clarify its position on Rubio’s tweet. Large-scale imports of US energy, defence equipment, aircraft and agricultural products could further widen India’s trade deficit and intensify pressure on the rupee,” stated Ajay Srivastava from the research body GTRI.

Rubio, currently on a four-day official visit to India, discussed prioritising BTA negotiations during meetings with Prime Minister Narendra Modi and Foreign Minister S Jaishankar. Taking to ‘X’ on Sunday, Rubio posted: “Huge thanks to @USAmbIndia Sergio Gor and our American diplomats for their efforts. Because of their great work, India has committed to purchasing $500 billion in US goods over the next five years focusing on energy, technology, and agriculture".

NOT FORMALISED

India’s pledge was part of a framework interim trade agreement that was never formalised.

Srivastava explained that the foundation of this bargain collapsed on February 20, 2026, when the US Supreme Court ruled that the legal basis for the Trump administration’s reciprocal tariffs was invalid. This ruling dismantled the tariff-based framework used for a new generation of US trade deals. Consequently, every country now faces a 10 per cent tariff for entry into the US market on top of normal Most Favoured Nation (MFN) tariffs.

This change erased the advantages countries expected in exchange for offering major concessions to the US. Experts add that the matter is particularly sensitive for India given the mounting pressure on the external sector and the rupee.

Electrifying energy consumption

M Ramesh

POWER DILEMMA POLICY SHOCK. What prevents India from reducing power supply losses by raising the share of electricity in the overall energy mix?

In 2024-25, India’s total primary energy supply stood at 9,32,816 kilo-tonnes of oil equivalent (KToe), but only 6,08,578 KToe was actually consumed. This indicates that 35 per cent of the supply was lost through conversion and system losses. The primary driver of this loss is thermal power, where 60-65 per cent of the energy contained in coal is lost during its conversion into electricity.

Boosting Efficiency and Non-Fossil Fuels

While there is scope for reduction through higher-efficiency boiler-turbine systems, the country is also reducing its dependence on coal-based electricity. Currently, 28 per cent of the electricity in India’s grid comes from non-fossil fuels. However, the share of thermal power is expected to fall even as India builds approximately 80 GW of new coal power plants.

The gap between primary supply and final consumption will only significantly narrow if the share of electricity in total final consumption (TFC) increases. At present, electricity accounts for just 23 per cent of TFC, meaning 77 per cent of energy is still consumed as molecules rather than electrons. Vinay Pabba, CEO of Vibrant Energy, notes that energy security cannot be bought by solar and renewable capacity alone until this balance changes,.

Industrial and Transport Electrification

Industrial energy demand is largely met through the direct combustion of coal, furnace oil, and diesel for process heat. Shifting to electricity for industrial heating is significantly more efficient; for example, while a coal boiler converts 100 units of energy into 80 units of heat, using that same coal to generate electricity for a heat pump can deliver 120 units of heat due to a high coefficient of performance.

Experts suggest that policy should explicitly focus on:

• Mandating electric boilers for low-temperature industrial heating (below 150 degrees C).
• Implementing phased replacement schedules for diesel and fuel-oil boilers.
• Restricting new coal-fired industrial boilers in metropolitan areas.
• Redesigning the ‘Perform, Achieve and Trade’ (PAT) scheme to encourage fuel switching over incremental efficiency.

The transport sector also offers a major pathway, as oil products currently account for 49 per cent of final energy consumption. Rapidly building charging infrastructure could shift a substantial share of vehicles from oil to electricity. Pabba argues that direct bans and mandates may be more effective than subsidies in catalyzing this process.

Political Hurdles

Increasing the share of electricity requires keeping its cost low, which faces "political headwinds". In India, industry is often required to pay higher tariffs to cross-subsidize free or low-cost supply for underprivileged communities. There is some hope in the draft New Electricity Policy 2026, which speaks against "relentless cross-subsidy".

Karnataka notifies 60% hike in minimum wages

Our Bureau Bengaluru

Karnataka has notified a 60 per cent increase in minimum wages, aimed at significantly boosting earnings for workers in the unorganised sector.

Revised Wage Rates

Under the new rates, labourers in Bengaluru will receive a minimum monthly wage of ₹23,376, while skilled workers are now entitled to ₹31,114. For the first time, the state government has brought all 81 scheduled employments under a single wage notification, replacing the previous system of four separate sectors.

Key Details and Compliance

• Implementation: The final notification was issued on Friday, following a draft published on April 11, 2025.
• VDA: A variable dearness allowance for two years, totalling ₹1,030, has been incorporated into the revised wages.
• National Context: Karnataka is the third state to notify revised minimum wages in recent months, following Uttar Pradesh and Haryana.

Labour Minister Santhosh Lad stated that this revision fulfils a long-pending demand from workers and aligns with Supreme Court directives. In a post on X, he noted that the revised wage is intended to "infuse new hope into the lives of lakhs of labourers" across the state, providing them with greater financial security.