We are only conducting Seminars to make Professional Traders. Join Now for Hyderabad and Chennai Seminar. The material published on the blog is of general and educational information only and is not suitable for trading purpose.

How $1 Increase in Crude Affect India?

Every Rupee counts and same analogy can be applied for Indian economy where we can say that every dollar counts. We will below analyse the effect a one dollar increase in crude prices affect the Indian economy. Can we call it the power of One.

$1 Crude Price Increase - Indian economy Impact

It is worth mentioning here that even a marginal increase in oil price has a great impact on the Indian government's finances.  We have analysed the impact of a one-dollar rise in the price of oil and it leads to a $1.3 billion (Rs 7,840 crore) increase in the government's subsidy bill.

The value of the rupee is connected to India's current account deficit. Any increase in the deficit would be a rise in rupee-selling and dollar-buying. This leads to a fall in the rupee. Worries about the impact of a high oil price on India's CAD caused the rupee to fall to Rs 60.55 per dollar, the lowest since April 29 on Tuesday. However, the Reserve Bank of India (RBI) governor, Dr. Raghuram Rajan, reassured investors that India is in a much better position to deal with shocks. The RBI has been shoring up its reserves the last few months by buying dollar whenever the rupee gained.

So, it is Indian interest that oil remains in some stable zone as it affects our economy considerably. You can get daily free crude tips here.

Most Visited Stocks - Click to Visit Link

 
We Teach and Train our Readers as we want to make sure that Readers become thorough professionals. We do not provide any stock tips. Please do not make any payments. Your joining or reading content is subject to acceptance of our terms and Disclaimer for which link is given on the site at bottom right hand corner. Wherever the word tip is written; it implies an idea which is of informational value and is not suitable for trading. Trade ideas if any are for educational purpose only. We are conducting Seminars to make Professional Traders. Join Now for Bangalore, Chennai and Hyderabad. Leave query through contact form.
Chart> Nifty A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 0-9