The Outlook
- Markets have been nervous as Saudi Arabia showed no hurry to reveal details of the damage.
- Oil prices will certainly fall after Saudi Arabian supplies resume
- Most analysts say the risk for India is the price, not supply of oil
Risks for India
- India’s economy is already slowing down. Costly oil will cause further damage
- Higher oil prices have a cascading impact on prices of all other goods
- Higher oil bill will increase current account deficit and put pressure on the rupee
- The rupee has already fallen, which will lead to a bigger impact on retail fuel prices in India
- Fiscal deficit will be impacted as subsidies will rise
Read More News on
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the ET ePaper online.
Read More News on
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Subscribe to The Economic Times Prime and read the ET ePaper online.