India expects crude oil prices to remain lower under the new administration of US President-elect Donald Trump. Thus, this can be a great sign of recovery and growth opportunities for the country in the coming months. As Middle East tensions increased crude oil prices, it impacted the prices of many products, including petroleum and paints. However, the new administration is putting positive hopes on India’s growth. Let us uncover more about it below.
India Anticipates Lower Crude Oil Prices and Growth Opportunities
India’s Chief Economic Advisor, V. Anantha Nageswaram says, “We believe one of the possible benefits of the new administration taking office in 2025 will be continued low energy prices. According to him, low crude oil prices will be the most beneficial for the country’s growth. As the higher prices were hindering the growth, lower prices would double the chances of development. Due to high crude prices in the Q2 FY25, the manufacturing slowed down. India imports 80% of its energy needs. Thus, the new administration may help reduce the importation bills of South Asian countries including India, making imports cheaper.
India is currently the third largest oil importer. The lower prices will help in saving a lot of money. Crude oil acts as a raw material in several industries. Thus, a large part of economic activities depend on the crude oil. If we talk about the crude oil market around the world, the prices fall by more than 3%. There was a risk of a shortage of supply after the Israel-Hezbollah conflict. However, the things appear to be sought off now. The country expects an increase in the supply in 2025.
Not only India’s CEA, but Citi Bank analysts have also released their report pointing out the downward pressure on oil prices throughout 2025. There are several economic benefits of crude oil price reduction. It includes a reduction in inflation. There will also be an increase in consumer spending. The stock market will also expect a positive impact on the stock market. Let us conclude the above.
India’s CEA, V. Anantha Nageswaran and Citi Bank analysts are positive about the reduction in crude oil prices for the coming year. The main reason behind the fall in crude oil prices is said to be the new administration of US President-elect Donald Trump. The lower prices of crude oil will become a crucial ingredient for India’s growth. Stay tuned for more information on our website.