{"id":209828,"date":"2022-10-08T20:21:55","date_gmt":"2022-10-08T14:51:55","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=209828"},"modified":"2022-10-08T20:21:55","modified_gmt":"2022-10-08T14:51:55","slug":"opec-production-cut-ahead-of-winter-puts-india-on-a-slippery-slope","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/opec-production-cut-ahead-of-winter-puts-india-on-a-slippery-slope\/","title":{"rendered":"OPEC+ production cut ahead of winter puts India on a slippery slope"},"content":{"rendered":"\n<p><strong>Source<\/strong>: The post is based on an article\u00a0<strong>\u201c<\/strong><strong>OPEC+ production cut ahead of winter puts India on a slippery slope\u201d <\/strong>published in\u00a0<strong>The Business Standard<\/strong>\u00a0on\u00a0<strong>8<sup>th<\/sup> October 2022<\/strong>.<\/p>\n<p><strong>Syllabus: GS 3<\/strong><\/p>\n<p><strong>Relevance:\u00a0<\/strong><strong>rising oil prices and its impact on the Indian economy<\/strong><\/p>\n<p><strong>News:<\/strong> OPEC Plus countries which includes the world\u2019s biggest oil exporters Saudi Arabia and Russia have decided to cut production from November by 2 million barrels a day.<\/p>\n<p>It will have impact all around the world including India.<\/p>\n<p><strong>What will be the impact on India?<\/strong><\/p>\n<p>The change in the oil price matters more to India\u2019s economy than any other country\u2019s economy because India imports around 87 per cent of its oil.<\/p>\n<p>Further, the imports this year have increased from last year. For example, petroleum imports accounted for 28 per cent of India\u2019s total import this year while it was 23 percent a year earlier.<\/p>\n<p>India also imported close to $32 billion worth of coal last fiscal which was around one per cent of gross domestic product (GDP).<\/p>\n<p>This may widen India\u2019s current account deficit from 1.4 percent in FY22 to 3.5 percent of GDP in FY23.<\/p>\n<p>World bank has also cut economic growth forecast for India from 7 percent to 6.5 per cent this fiscal year due to the high inflation, rising borrowing costs and high commodity prices.<\/p>\n<p>Further, India consumes around 4 million barrels a day and the cut in production will raise oil prices in the upcoming months. This will put more pressure on the rupee and will further weaken the economy.<\/p>\n<p>Natural gas prices have already increased around Rs 2.5 trillion this fiscal year and there may be a further increase in the prices.<\/p>\n<p>OPEC\u00a0have also agreed to extend its production co-operation agreement with non-OPEC\u00a0members like Russia until the end of 2023. This means that India should be ready to face the upcoming impact on its economy.<\/p>\n<p>However, the demand in India continues to be strong even with petrol and diesel retailing at close to Rs 100 a litre and the lower oil production will only impact prices, supplies are not an issue.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on an article\u00a0\u201cOPEC+ production cut ahead of winter puts India on a slippery slope\u201d published in\u00a0The Business Standard\u00a0on\u00a08th October 2022. Syllabus: GS 3 Relevance:\u00a0rising oil prices and its impact on the Indian economy News: OPEC Plus countries which includes the world\u2019s biggest oil exporters Saudi Arabia and Russia have decided&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/opec-production-cut-ahead-of-winter-puts-india-on-a-slippery-slope\/\">Continue reading <span class=\"screen-reader-text\">OPEC+ production cut ahead of winter puts India on a slippery slope<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-209828","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704562436},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/209828","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=209828"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/209828\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=209828"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=209828"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=209828"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}