Crude oil prices have fallen below $45 a barrel, the lowest level in almost six years. India being the fourth largest consumer of oil, will witness some significant changes in it’s economy. India will mostly reap from this oil price fall, as it will lower the import bill, and will also help save foreign exchange.
Common man will highly benefit from this event as the prices of FMCG goods will be lower than usual. Indians can also cherish on the fact that now they will spend less on public and private commutes.
But this fall in oil price will also pose a set back to India. The country’s exports to oil producing economies could get impacted, when their economies take a dip due to low oil prices. A large number of Indians are working in oil producing countries. A slowdown in there will significantly impact our economy. It is hence, crucial oil prices recover to a balanced level favoring India’s imports without affecting its exports too much.
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