India is highly vulnerable to global oil price volatility. In this context, discuss in what ways India can gradually insulate itself from such oil shocks. (200 words)
Refer – Live mint
Enrich the answer from other sources, if the question demands.
IAS Parliament 6 years
KEY POINTS
· India, world's third-largest oil consumer after US and China, satisfies more than 80 per cent of its oil needs through imports and a dollar increase in oil prices would increase the import bill drastically and impacts the economy as a whole.
· Rise in inflation due to higher prices could lower real disposable incomes of households and therefore hurt consumer discretionary demand.
· High oil prices are a double whammy for India: it would not only widen the country’s trade deficit but also impose a fiscal burden on account of fertilizer, kerosene and LPG subsidies.
Suggestions
· Expedite the migration to electric mobility
· Expand the bio-fuel blending in petrol
· Stimulate exports
· Shift finances towards the development of renewable energies
gaurav saini 6 years
plzz review
IAS Parliament 6 years
India’s vulnerability with oil price volatility could have been better explained. How bringing fuels under GST would reduce oil price shocks must be explained clearly. Keep writing.
DarkAngel 6 years
Kindly review.
IAS Parliament 6 years
Shankaranand 6 years
Please Review
Thank You
IAS Parliament 6 years
