The dramatic rise in India’s oil demand shows no signs of faltering, leading analysts to say that the country will remain a driver of Asian growth in 2017.
Consumption is expected to rise 7-8% this year, outpacing China’s demand growth for the third consecutive year.
The cash crunch following New Delhi’s move in early November to demonetize more than 80% of its currency is expected to temporarily dampen the country’s appetite for oil products in the first quarter, or maybe a little longer.
But gains in oil demand that the country is set to achieve from the “Make in India” initiative — which aims to raise the share of manufacturing in GDP over the next few years – will more than offset the negative effects of demonetization, analysts said. Read More…