In his weekly series “The Capitalmind Show”, famed financial expert Deepak Shenoy of Capitalmind is back to explain the intricacies of Indian businesses and markets. In this episode, Shenoy tackles the issue of rising oil prices.
Ever since 2014, the global oil market has been in a slump – leading to radically reduced prices. This has been great for large importers such as India, but the slump is over. Oil is now trading at $75 a barrel.
Most Indian observers have expected this to massively impact the nation’s economic performance. Considering that the Indian economy has taken advantage of low prices in the last four years to maintain growth despite disruptive domestic policies, this seems like a reasonable take.
However, Shenoy cuts through the noise to explain how this is not exactly a bad development for India. Not only are oil prices going to fall soon, but this development might even encourage local production of energy in the country.
You can also listen to this video as a podcast here.