India imports 80% of all the crude oil it needs and a spike in global prices wreck havoc on the South Asian economy. In the first three years of the Modi administration global crude oil prices fell to nearly $30 a barrel at one point. No prime minister in India’s history since liberalization was blessed with such a windfall.
Coincidentally, on the day that he got elected for a second time (May 23), the 1,000 point rally that Sensex was partly a cheer for Modi’s historic feat and partly attributed to a sharp 5% fall in crude oil prices that day.
However, the blessing in the form of cheap oil is not certain this time and that is something Modi’s new cabinet will have an eye on throughout. Read More
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