Crude oil prices breached the $50 a barrel level on Wednesday following the
Remember, India's oil import bill for this financial year has been pegged at $66 billion at an average import price of $48 A barrel. India, which depends on imports to meet 80 per cent of its oil needs, will have to spend Rs 9,126 crore ($1.36 billion) more a year for every one dollar a barrel increase in crude oil.
India spent $63.96 billion on crude oil import in 2015-16, about half of the $112.7 billion
On Thursday, crude prices were trading at a six-week high of $51.13 a barrel level, up 1.4 per cent over its previous close.
Fund managers and strategists on Dalal Street say should oil prices rise beyond $55-60 a barrel, it could pose a risk to India's economic growth estimates as well.
"An increase in crude oil prices could be a double-edged sword for emerging market equities, which are under pressure due to weak growth and lower fund flows from sovereign wealth funds.
We expect pressure on (India's) fiscal as well as inflation if crude crosses $55-60 a barrel level," Manishi Raychaudhuri, Asia Pacific Equity Strategist, BNP Paribas, had said earlier this year.
- Source, ET