First American Crude Oil Shipped to India

The first shipment of two million barrels of American crude oil costing $100 million will reach India in the last week of September, opening a new chapter in trade between India and the U.S. This consignment is a fraction of India’s $70 billion oil import bill for 2016-17. Given the volume being contemplated by Indian companies, this new development is currently expected to boost the bilateral oil trade to $2 billion annually.

The Hindustan Times reports that while the 40-year-old ban on export of American oil was lifted by the then U.S. President Barack Obama in December 2015, the real move started during the maiden meeting between Prime Minister Narendra Modi and U.S. President Donald Trump on June 26 when the two leaders agreed to deepen the engagement in the energy sector.

President Trump and PM Modi

Saudi Aramco‘s decision to raise Arab Light crude price by 60 cents per barrel for Asian buyers narrowed the differential between West Asian crude oil and North Sea Brent, the benchmark for most of global oil trade. The narrowed differential turned U.S. oil attractive for India even after factoring the distance between the two countries.

India’s largest state-run refiner-marketer Indian Oil Corporation Limited (IOC) and state-owned companies Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have all opted for American crude oil.

BPCL bought a cargo containing 500,000 barrels each of Mars and Poseidon, and 1 million barrels of U.S. WTI Midland sweet crude; IOC sealed a deal to purchase 1.6 million barrels of crude oil from the U.S. in July, and this month it placed an additional order of 2 million barrels. HPCL plans to buy low-sulfur oil from the United States in the next few months for its 166,000 barrel per day refinery in southern India.

Senator Ted Cruz said Texas will provide crucial oil exports to India and serve as a reliable long-term supplier of energy.

August 17, 2017   No Comments

India and Israel Sign Defense Agreements Worth $4.3 Billion

Ten agreements worth $4.3 billion were signed during a formal meeting of India-Israel CEOs forum in Tel Aviv soon after Indian Prime Minister Narendra Modi’s visit. These include the manufacture of air defense systems, radars, anti-ship missiles, and medium altitude long endurance UAVs in India, under technology transfer.

Israel Aerospace Industries (IAI) and Kalyani Strategic Systems Ltd., will expand their joint venture to establish a maintenance center for selected advanced air defense systems radars, anti-ship missiles and command & control systems for the Indian armed forces, for $1.54 billion.

Bangalore-based Dynamatic Technologies and Elcom signed a ‘Strategic Teaming Agreement’ to produce, assemble and support UAVs in India with IAI.

Elbit Security Systems Ltd signed a contract with India’s Alpha Design Technologies to increase the scope of their existing joint venture ‘Alpha-Elsec Defense & Aerospace Systems Pvt Ltd’, into areas such as new generation thermal imaging equipment, fire control systems, unmanned aerial systems (UAS), in addition to night vision devices, laser range finders, laser pointers, and reflex sights.

India’s Garware Wall Ropes Ltd., signed a Memorandum of Understanding with Israel’s Aero-T for manufacturing and supply of advanced aerostats for India’s Defense services, reports Defense World.

Israel-India flag

 

July 11, 2017   No Comments

Voice of America Facilitates Pronunciations of Indian Words

With the advance of technology and its ongoing refinement, far-flung areas of the world are getting closer and closer. Business, education, travel, and media reference a plethora of cultures more than ever before.

In 2000, Voice of America‘s pronunciation guide was developed to help media with tricky pronunciations. Now it is an invaluable tool for a broader audience. “People all around the world use it thousands and thousands of times a day,” said Jim Tedder, the broadcaster responsible for the guide. He noted that usage spikes around major world events. VOA’s guide is codified, public and it includes spoken samples, reports the Washington Post.

Try pronouncing these words as they are pronounced in the phonetic languages of India:

Modi, Narendra – nah-rehndrah   moh-dhee

Gujarat – guh-jah-rath

Kashmir – K-ush-meer

Hyderabad – h-eye-dhrah-baadh

Arun Jaitley – uh-roon    jay-th-lee

Namasthe – nah-mus-thay

Avatar – uh-vah-thaar

Chutney – ch-ut-nee

Make in India Poster

 

 

 

 

 

 

 

 

June 25, 2017   No Comments

Lockheed Martin Offers to Make F16 Fighters in India

Maryland-based Lockheed Martin announced that it can  jointly manufacture its F-16 Block 70 fighter jets with Tata Advanced Systems Limited, India. The agreement was signed on the sidelines of the Paris Air Show 2017 and it will provide India the opportunity to produce, operate and export F-16 Block 70 aircraft, the newest and most advanced version of the combat-proven multi-role fighter.

India proposes to acquire 150 new warplanes for $12 billion, and Lockheed and Tata confirmed to CNNMoney that F-16 production in India will move forward only if Lockheed wins the order.

Highlights of the Deal:

  • Lockheed says, “F-16 production in India supports thousands of Lockheed Martin and F-16 supplier jobs in the U.S.”
  • This partnership supports Prime Minister Narendra Modi’s ‘Make in India’ initiative
  • India stands to become the manufacturing and export base for all F-16s worldwide: 26 countries where 3,200 F-16s are currently flown

CNNMoney quotes a Tata spokesman who said that Lockheed and Tata are also in talks to make F-16 components in India if the air force deal doesn’t materialize.

fighter jets

June 20, 2017   No Comments

President Trump to Meet PM Modi on June 27

Prime Minister Narendra Modi is set to hold his first meeting with U.S. President Donald Trump on June 27. Modi will also address a couple of business meetings organized by the U.S.-India Business Council and CEOs’ Forum.

The agenda for the meeting with the President will focus on trade and economic ties between the two countries; H1B visas; and defense ties. In April, U.S. National Security Advisor H. R. McMaster visited India and met Modi. He emphasized the importance of the U.S.-India strategic relationship and reaffirmed India’s designation as a ‘Major Defense Partner.

US and India Flags

It is likely that India will sign two defense pacts — the Communications Inter-operability and Security Memorandum of Agreement, and the Basic Exchange and Cooperation Agreement, reports BusinessLine.

 

June 14, 2017   No Comments