ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
‘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
