No need to hit panic button as oil prices may not impact govt's finances

Analysts have spelt out bleak scenarios for India's finances and growth, assuming strong crude prices

In July 2008, when crude oil breached $147 a barrel, storied US bank Goldman Sachs warned of $200 oil, only to slash it to $45 in 2009. In Covid-19-struck 2020, when gold crossed $2,000 an ounce for the first time, or exceeded Rs 5,600 a gram in India, analysts expected it to reach Rs 8,000. Perhaps one can see something similar now when analysts jumped the gun after crude surged to nearly $140 a barrel earlier this month, and forecast dark days for India’s economy. They expected high current account deficits, and pump prices to jump by over Rs 10