- 31 Aug. | Upcoming programs by forumiAS For UPSC CSE 2027 Click Here to Read More →
- 23 August | Your preparation may need an environment, not another course Click Here to Read More →
- 17 August | Navigating the Crest & Trough of Rankforgers by Mr. Ayush Sinha Click Here to Watch →
‘India to lose if oil prices climb more’
What has happened?
India, along with other emerging economies like Turkey and the Philippines, will be a loser if the recent oil price rise continues, according to a Nomura report
Affecting net oil importers with weak economic fundamentals
The supply side-driven increase in crude oil prices is likely to spur a major differentiation in emerging markets’ performance, hurting large net oil importers with weak economic fundamentals, possibly by more than it benefits large net oil exporters
Worsening CAD
Every $10/barrel (bbl) rise in oil price would worsen the current account balance by 0.4% of GDP, increase inflation by 30-40 basis points (bps), hurt growth by 15 bps and worsen the fiscal balance by 0.1% of GDP
The winners
The clear cut winners from the rise in oil prices include exporters Saudi Arabia, Nigeria and Colombia
