Due to the news of the death of Iranian General Qasim Sulemani in the US air strike, there has been a big jump in the prices of crude oil worldwide. This can increase the troubles of India purchasing crude oil from foreign markets for 84 percent of its total oil requirements. Due to the cost of crude oil, India's import bill and trade deficit will also increase, which will hurt the country's economy and increase the burden on GDP by 0.40 per cent. An increase in the price by one dollar affects India at Rs 10,700 crore annually. In such a situation, if the current increase is sustained for the whole year, then the treasury may have to bear an additional burden of about 32,100 crore rupees according to the increased three dollars per barrel. According to global financial firm Nomura, a rise in crude oil prices by $ 10 a barrel affects India's fiscal deficit and current account payments. Expensive crude oil increases the burden on GDP from 0.10 to 0.40 per cent.
Crude oil becomes expensive in India also due to the cost of crude in international markets. This increases the pressure on oil companies to increase the price of petrol and diesel on purchasing expensive crude oil. In such a situation, transportation costs are increased due to expensive petrol and diesel, which increases the risk of inflation of consumer goods.
Impact on Indians working in Middle East
Any tension or war in this area will also affect about 8 million Indians working in Middle East countries. Only 3 million Indians live in Saudi Arabia. Earlier, a large number of Indians had to return to their homeland during the tensions that arose here.
Indians working in Middle East countries send 40 to 70 billion dollars of foreign currency every year. When the Indian economy is going through a difficult period in a state of tension, depriving it of income can be a big burden for India.
Chabahar project may also be affected
The stress will also affect the Chabahar project in India and Iran. The Chabahar project is critical to deliver Indian supplies to Afghanistan. It is also a very important project for Indian access to the markets of Afghanistan and Central Asian countries, bypassing Pakistan. If the Iran-US war was to happen, the project would be in complete disarray for the moment.
Indian airlines can now divert their flights to avoid using Iranian airspace. Earlier in June 2019, the Directorate General of Civil Aviation (DGS) of India issued a decree not to fly over Iran. This will directly affect air fares.
Increase in current account deficit
The current account deficit of the country may increase due to rising crude oil prices. India's import bill will be costlier in the same proportion due to continuous rise in crude oil prices, which will worsen the current account deficit situation. The common man is also affected by the reverse effect on the country's economy.
India is dependent on other countries of the world for more than 80 percent crude oil imports. According to data from the Directorate General of Commercial Intelligence and Statistics, India buys the most crude oil from Iraq. India has long been the largest purchaser of crude oil from Saudi Arabia, but the situation changed in FY 2017-18. Iraq came first in this case. Since then, Saudi Arabia has been at number two. It exported 17.7 million tonnes of crude oil to India from April to August this year.
This quantity was 15.6 million tonnes in the same period a year ago. However, India's crude oil purchases from the US are steadily increasing. India has now stopped buying crude oil from Iran. Nigeria has been replaced by Iran. He is the third in terms of selling crude oil to India. Nigeria supplied 71.7 lakh tonnes of crude oil to India from April to August in 2019. It is followed by the United Arab Emirates and Venezuela.
Venezuela sold 61 lakh tons of crude oil to India. At the same time, Kuwait sold 4.2 million tonnes to India and Mexico sold 3.3 million tonnes of crude oil. The US started selling crude oil to India in 2017. India stopped buying oil from Iran after the US banned Iran in May of 2019. This reduced India's imports from Iran to just 2 million tonnes. It was 13.3 million tonnes in the same period of 2018.
Abstract
- The rise
in crude oil prices after the death of Iranian General Sulaimani
- Due to crude oil being expensive, India's import bill and trade deficit will also increase
- India buys 84% crude oil from foreign markets
- Expensive crude oil increases the burden on GDP from 0.10 to 0.40 per cent
Extension
Due to the news of the death of Iranian General Qasim Sulemani in the US air strike, there has been a big jump in the prices of crude oil worldwide. This can increase the troubles of India purchasing crude oil from foreign markets for 84 percent of its total oil requirements. The cost of crude oil will also increase India's import bill and trade deficit, which will hurt the country's economy and increase the burden on GDP by 0.40 per cent.
In September, an official attached to the Petroleum Ministry said that the impact of a dollar increase in the price of crude oil affects India by Rs 10,700 crore annually. In such a situation, if the current increase is sustained for the whole year, then the treasury may have to bear an additional burden of about 32,100 crore rupees according to the increased three dollars per barrel. According to global financial firm Nomura, a rise in crude oil prices by $ 10 a barrel affects India's fiscal deficit and current account payments. Expensive crude oil increases the burden on GDP from 0.10 to 0.40 per cent.
May increase in inflation
Crude oil becomes expensive in India due to the cost of crude in international markets. This increases the pressure on oil companies to increase the price of petrol and diesel on purchasing expensive crude oil. In such a situation, transportation costs are increased due to expensive petrol and diesel, which increases the risk of inflation of consumer goods.
Impact on Indians working in Middle East
Any tension or war in this area will also affect about 8 million Indians working in Middle East countries. Only 3 million Indians live in Saudi Arabia. Earlier, a large number of Indians had to return to their homeland during the tensions that arose here.
India Treasury will also be hurt
Indians working in Middle East countries send foreign exchange of 40 to 70 billion dollars every year. When the Indian economy is going through a difficult period in a state of tension, depriving it of income can be a big burden for India.
Chabahar project may also be affected
The stress will also affect the Chabahar project in India and Iran. The Chabahar project is critical to deliver Indian supplies to Afghanistan. It is also a very important project for Indian access to the markets of Afghanistan and Central Asian countries, bypassing Pakistan. If Iran-America war happens, then this project will be in full swing at the moment.
Airfare may increase
Indian airlines can now divert their flights to avoid using Iranian airspace. Earlier in June 2019, the Directorate General of Civil Aviation (DGS) of India issued a decree not to fly over Iran. This will directly affect air fares.
Increase in current account deficit
The current account deficit of the country may increase due to rising crude oil prices. India's import bill will be costlier in the same proportion due to continuous rise in crude oil prices, which will worsen the current account deficit situation. The common man is also affected by the reverse effect on the country's economy.
India buys the most oil from Iraq, Saudi number 2
India is dependent on other countries of the world for more than 80 percent crude oil imports. According to data from the Directorate General of Commercial Intelligence and Statistics, India buys the most crude oil from Iraq. India has long been the largest purchaser of crude oil from Saudi Arabia, but the situation changed in FY 2017-18. Iraq came first in this case. Since then, Saudi Arabia has been at number two. It exported 17.7 million tonnes of crude oil to India from April to August this year.
This quantity was 15.6 million tonnes in the same period a year ago. However, India's crude oil purchases from the US are steadily increasing. India has now stopped buying crude oil from Iran. Nigeria has been replaced by Iran. He is the third in terms of selling crude oil to India. Nigeria supplied 71.7 lakh tonnes of crude oil to India from April to August in 2019. It is followed by the United Arab Emirates and Venezuela.
Venezuela sold 61 lakh tons of crude oil to India. At the same time, Kuwait sold 42 lakh tons to India and Mexico sold 3.3 million tons of crude oil. The US started selling crude oil to India in 2017. India stopped buying oil from Iran after the US banned Iran in May of 2019. This reduced India's imports from Iran to just 2 million tonnes. It was 13.3 million tonnes in the same period of 2018.
The post Indian Gdp Will Be Affected If Tension Increases More Between America And Usa – Increased Stress Will Affect Indian Economy, Increase On GDP By 0.40 Percent appeared first on Khabar Bollywood.
source
http://www.khabarsbollywood.com/indian-gdp-will-be-affected-if-tension-increases-more-between-america-and-usa-increased-stress-will-affect-indian-economy-increase-on-gdp-by-0-40-percent/
