News India Times

(January 31, 2026 - February 6, 2026) February 6, 2026 10 News India Times Economic Diplomacy www.newsindiatimes.com – that’s all you need to know From Wine To Carmakers: Winners, Losers In India’s Giant EU Deal At India’s Main Energy Summit, Signs Of A New World Order B arely an hour into India’s high-profile energy summit in the southern state of Goa, conversa- tion turned to the emergent global order – one without America at the center. “What is happening in the world today is not a gradual economic transition, it is a rupture,” said Canada’s energy minister, Tim Hodgson, echoing the words of Prime Min- ister Mark Carney, who electrified the crowd in Davos last week by sounding the death knell of the postwar interna- tional system. Sitting center stage in a cavernous convention center with his Indian counterpart, Hodgson spoke bluntly of the world being wrought by President Donald Trump, where “hegemons use tariffs as leverage.” The solution, he proposed, “the way to resist … is to build multilateral relationships.” In the first year of his second term, Trump has alien- ated many traditional U.S. allies. Relations with Canada have frayed over tariffs and threats of annexation. Ties with the European Union sank to new lows after he demanded ownership of Greenland. The U.S.-India bond, a bright spot during Trump’s first presidency, has been badly strained by trade disagreements and diplomatic missteps. Sultan Al Jaber, the UAE’s minister of industry, right, at the India EnergyWeek 2026 in Goa. From the Swiss Alps to coastal India, global leaders are now speaking openly of these new geopolitical realities, largely abandoning their strategy of appeasing Trump and, instead, considering what is possible without him. In one sign of the changing times, New Delhi inked a sweeping trade deal this week with the E.U., even as talks withWashington languished. No American official offered remarks at the opening of the Goa summit, where Canada and the United Arab Emirates were given top billing. Throughout the nearly weeklong conference, oil officials and experts stressed that energy pacts will be a central part of the interna- tional realignment. And India, the third largest energy consumer in the world after the United States and China, will be a central player. “There is turbulence,” said Hardeep Singh Puri, the Indian minister of petroleum and natural gas, “and we have to adapt.” ‘Age of walls’ Held on a swath of formerly industrial land near Goa’s famous beaches, India EnergyWeek attracted some 75,000 attendees, including oil ministers, diplomats and energy executives, organizers said. During the breakout sessions, recurring themes emerged, with several discussions focused on “turbu- lence” and “disruption.” In a session about energy diplo- macy, representatives from Norway, Denmark, Paraguay and Finland talked about India’s enormous needs and how their countries could help meet them. May-Elin Stener, the Norwegian ambassador to New Delhi, said a slew of energy companies from her country had come to Goa because they want to take part in India’s plans. The hosts appeared receptive: “We need more part- ners,” said Dammu Ravi, a former high-ranking official at India’s Ministry of External Affairs, noting the country’s power grid can produce only 500 gigawatts of energy – a fraction of the 3.2 terawatts generated by China. India relies heavily on coal, which accounts for about 40 percent of its energy supply, according to estimates from the International Energy Agency. Roughly 25 per- cent is from crude oil, the analysis showed. And sourcing crude has become a problem. For the past four years, India’s top provider of the commodity has been Russia. Russian crude came at a discount afterWestern nations implemented a $60 per barrel price cap, a way of punishing President Vladi- mir Putin for his full-scale invasion of Ukraine without wreaking havoc on global energy markets. New Delhi was encouraged byWashington to take advantage of the lower prices: “We’re happy to have India get that bargain,” then-U.S. Treasury Secretary Janet L. Yellen said in late 2022. The tune changed under Trump, who in August ac- cused India of fueling Moscow’s war machine with its purchases of Russian oil and imposed an additional 25 percent levy, bringing the total tariffs on many Indian goods to 50 percent. India, under growing pressure from theWhite House, has tried to wean itself off Russian crude. The country imported 1.2 million barrels per day in December, ac- cording to data from the Center for Research on Energy and Clean Air. As of Jan. 15, the figure had fallen below 600,000 barrels per day, the data showed. All the while, India’s energy needs are surging. The country roughly imports 5.6 million barrels of oil daily, Puri said, up from 5 million barrels in 2021. Demand could soon exceed 6 million barrels each day, India’s Oil Ministry predicted in October. Nations from the Middle East to Europe lined up in Goa looking to tap into the Indian market. Canada, in particular, made a full-court press. Hodgson said his country is one of the largest energy producers in the world, particularly when it comes to the critical minerals needed for green energy – an area of growing focus for India. One bonus of partnering with Ottawa, he said, is reliability, making a not-so-veiled reference to Canada’s southern neighbor. “We’re not going to live in a world where might makes right. We’re not going to live in a world where the stron- gest put tariffs on everyone else,” he said. “We’re going to live in a world where we believe in free trade, where we believe in trusted relationships.” Michael Kugelman, a senior fellow for South Asia at the Atlantic Council, said these dynamics are a “reflection of growing discontent” with the U.S., which “predates but has been intensified by Trump’s return.” Countries are pushing for new multipolar compacts that neutralize American power, he said, and “it appears to be spreading to the energy realm.” Sultan Al Jaber, the UAE’s minister of industry, came to the conference with his own pitch to India. In his keynote address, he noted that New Delhi has become the coun- try’s top customer for natural gas, and its national oil company was aiming to provide more crude as well. “In an age of walls, our message is simple,” Al Jaber said. “Build doors, and the world will walk through them.” -TheWashington Post high-tech engineering” will benefit from the deal, said Munjal Almoula, managing partner for Tax & Regulatory Advisory at BDO India. As companies await further details, here’s who will likely to benefit and lose out from the “mother of all deals”: WINNERS Apparel Makers India got direct access to $263 billion of European textile market, with an immediate zero duty on textile imports, the Narendra Modi-led administration said in a post on X. The agreement is “critical” to improve the competitive- ness of Indian readymade garment exports to EU which is the world’s largest market for these items, CareEdge Ratings said in a note. India could “gradually increase” its market share to as much as 9% from 5% currently, with an incremental annual export opportunity of nearly $4.5 billion over the medium term, it said. Textile exporters jumped, with KPR Mill Ltd. gaining 6%. Welspun Living Ltd. rose 4.3% and Kitex Garments Ltd. surged 9.1%. Additionally, tariffs on leather and footwear have been slashed to 0% from 17% earlier, allowing India access to the $100 billion European market. Gems and Jewelry EU has given duty-free access to gems and jewelry exporters from India. This will help double bilateral trade between the two regions to 910 billion rupees ($9.9 bil- lion) in the next three years, said Kirit Bhansali, chairman at the Gem & Jewellery Export Promotion Council. “This timely pact will help Indian exporters salvage lost ground,” especially with exports to the US down by 44%, Bhansali said. The deal will also enhance industry margins, accelerate manufacturing and generate jobs, he added. Food Products Indian seafood exporters will get preferential access to exports including shrimp, frozen fish, and value-added seafood products. Shrimp exporter Avanti Feeds Ltd. rose 2.1% on Tuesday. Local producers of food items such as tea, coffee, spices and grapes will also get preferential access to the EU market while safeguards have been retained to pro- tect Indian farmers in poultry and dairy. LOSERS Liquor India cut tariffs on European wine to as low as 20% and spirits to 40% from as high as 150% previously. It also cut duties on beer to 50% from 110% earlier. This will expand the reach of European alcohol manu- facturers including Budweiser-maker AB InBev, Heineken NV, Carlsberg and Remy Cointreau SA. It’s a “negative” for Indian liquormakers, as competi- tive intensity is expected to increase, especially in the fast-growing premium and luxury segment, said Karan Taurani of Elara Securities. Growth of local spirit makers such as Radico Khaitan Ltd. will be hurt, he said. Radico’s shares slipped on Tuesday. Indian winemaker Sula Vineyards Ltd. fell 3.5% after the deal announcement while United Breweries Ltd., which makes popular Indian beer Kingfisher, fell 1.2%. Indian Carmakers The pact will gradually allow up to 250,000 European- made vehicles to enter India at preferential duty rates, with tariffs gradually falling from 110% to as low as 10%. Levies on car parts will also be abolished after five to 10 years. Shares of local carmaker Mahindra & Mahindra Ltd. dropped 4.2%, while that of Tata Motors Passenger Ve- hicles Ltd. slipped as much as 1.1%. -Bloomberg By Pranshu Verma - Continued From Page 9