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Sood sees sizeable drop in crude import bill
Panic in the financial markets on 8 Mar 2020, owing to a massive fall in the crude oil prices, does not affect India’s macro picture; on the contrary low fuel prices would help the economy, said ASSOCHAM secretary general, Deepak Sood.
“India being a large importer of crude oil, fall in prices, would be a positive for the Indian economy, although there is global sentimental downside,” he said in reaction to sharp declines in international crude oil prices.
Going forward, low prices of crude can be a demand driver for India, from the automobile industry to consumption as inflation would be tamed. Lower inflation would also help further cuts in the interest rates, he added.
The global crude prices plunged by close to 30% in a single day, near US$30 per barrel.
India’s overall import bill would be dropping sizeably and help the country’s current account position, giving more elbow room to the government, said the secretary general. fiinews.com
