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‘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
