New Delhi: The crude oil import of the country surged by 24% to 4.86 million barrels per day (bpd) in last month. This is the highest since December 2020.
India is the world’s third biggest oil importer and consumer. In February, the share of Canada and the United States in India’s oil imports surged 14% to their highest in a year, while purchases from the Middle East grew the least since October 2021. The share of African oil rose to a four-month high in February. Iraq is the top oil supplier to India followed by Saudi Arabia, the United Arab Emirates and the United States, Kuwait, Canada and Nigeria.
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India imports more than two-thirds of its oil needs and thus the rising crude oil prices will increase the trade deficit of the country and boost inflation. The rise in crude oil prices will also increase the current account deficit of the country, which sits at $9.6 billion, about 1.3% of the GDP.
According to India Ratings and Research, the increase in crude oil prices will translate into a $ 6.6 billion increase in trade/current account deficit of the country. Earlier Global Forecasting Agency Oxford Economics has warned that high oil prices and inflation will weigh India’s growth outlook.
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