Business News Desk – India fulfills a major part of its crude oil requirement i.e. about 80 percent through imports. If we look at the list of countries importing crude oil, India is at third place after China and America. It is clear from this that import of crude oil puts a huge burden on the government exchequer. But, now this burden is going to reduce considerably and this is due to the fall in the prices of crude oil in the international market.
How much will India benefit?
Crude oil prices remain soft in the international market. Due to this, the government can save Rs 60 thousand crore on oil imports in the current financial year 2024-25 as compared to the previous financial year. According to an estimate, a drop of one dollar per barrel in crude oil saves Rs 13 thousand crore in India’s annual import bill. In the Economic Survey 2024, the average price of crude oil in the current financial year was estimated to be $ 84 per barrel. However, there is a continuous decline in the price of crude oil. In the international market it remains at the level of 70 to 75 dollars per barrel. Experts believe that if prices remain stable in this range, India will be able to save heavily on crude oil imports in the remaining period of the current financial year.
Rupee will also strengthen
Ajay Kedia, director of Kedia Advisory, says that crude oil prices are expected to soften in 2025 and are expected to be below $ 80 per barrel. If this price persists till March 2025, the Indian economy will benefit greatly. A large part of India’s foreign exchange reserves is used to purchase crude oil. Indian rupee may strengthen against other major currencies due to reduction in import bill. At present, the Indian rupee is stable at the level of 83.60 against the dollar, while the currencies of developed countries have declined significantly. Due to reduction in import bill, the government will also have more money available for investment.
