A must for all SSB Candidates Falling Oil Prices. How does it affect India
PROBLEM OF PLENTY
Falling oil is a mixed bag for the world and India. Here’s why.
GOOD NEWS FOR INDIA
for every $1 decrease in crude prices…
India’s import bill decreases by Rs 6,500 cr.
Govt’s subsidy burden is reduced by R900 cr
India imports almost 80% of its crude oil requirements
If average price goes down, the government saves a lot
This brings down trade deficit, helps cool off inflation
AND THE BAD
Too much decline in crude prices impacts global trade
This pulls down investment demand globally
It also hits exports
266.67pts (1.09%) Fall in the sensex on Monday. Tracking equities, the rupee also declined 9 paise to end at 67.68 against the US dollar