With crude oil prices crashing in the backdrop of the disagreement between Russia and oil producing and export countries, nations like India can leverage the situation to reduce their rising import bill. One-dollar decrease in the crude oil price reduces the import bill by around $1.6 billion per year. Besides easing the inflationary pressure and softening the current account deficit, the fall in crude oil price can enable the RBI to soften the basic rates further. With consumer demand remaining sluggish, it is prudent on the part of the central and states governments to pass on the benefits to people.
M Jeyaram, Tamil Nadu
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