Indian OIl Prices Slip www.purnartha.com

Boost To Indian Economy From Falling Oil Prices Fading Says DBS

India News

Indian OIl Prices Slip www.purnartha.com
The benefits to the Indian economy from fall in crude oil prices will be “limited” this year and domestic reforms and developments will gain focus, a report said. “Low crude prices have been of great help to a net oil importer like India. Brent prices (INR terms) are down 70 per cent from mid-2014 levels,” global financial services major DBS noted in the report, titled ‘India: Fading boost from low oil price’. “While the economy benefited significantly from the first leg of the oil price down move, the incremental boost to the economy will be limited this year,” it said, adding that “as the tide runs out, underlying fundamentals and policy decisions will be back in focus”. The report said the government’s pro-growth policy and the RBI’s role in providing macro-stability has provided a favourable backdrop for the economy over the past two years. “The drop in global crude prices was an unexpected windfall and helped to magnify improvements in the macroeconomic variables,” it added.