India’s Oil Imports: Achilles’ Heel or Economic Javelin?

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Abstract

Presenting India’s 2019 budget on July 5, Finance Minister Nirmala Sitharaman sketched out the Modi government’s vision of becoming a $5 trillion economy by 2024, almost doubling the country’s current gross domestic product (GDP) of $2.73 trillion. To achieve this ambitious goal, India plans to liberalize foreign direct investment (FDI) rules and tap international bond markets to fund its budget deficit. The latter is a risky enterprise and ensures exchange rate policy becomes a future battleground. However, India’s economic growth has been slowing over the past two quarters, and the government has limited options to raise funds domestically, forcing it to look at external foreign currency borrowing. The government is betting that external borrowing combined with FDI inflows will lead to greater domestic investment and thus higher growth. 

Authors

Yagyavalk Bhatt

Yagyavalk Bhatt

Research Associate Yagyavalk is a research associate at KAPSARC. His research interests include analysis of energy policies, with a focus on alternative… Yagyavalk is a research associate at KAPSARC. His research interests include analysis of energy policies, with a focus on alternative fuels and their impact on energy security. He previously worked as a researcher, providing sustainable development and decentralized renewable energy system solutions to rural areas of north India. He holds a master’s degree in renewable energy engineering and management from TERI University, India.  

Expertise

  • Energy market
  • Renewable energy transition and climate finance

Publications See all Yagyavalk Bhatt’s publications

Paul Mollet

Paul Mollet

Research Fellow Paul was a research fellow in the Policy and Decision Sciences program. He is a former journalist and energy market… Paul was a research fellow in the Policy and Decision Sciences program. He is a former journalist and energy market analyst with over 25 years of experience in international energy markets. He opened the first Gulf Cooperation Council bureau for the oil price reporting agency S&P Global Platts in Dubai in 1989 and later launched the first regional office for Argus Media. Paul has attended numerous OPEC meetings and written extensively about the oil industry in publications such as Platts Oilgram News, Argus Global Markets, and the Petroleum Economist. He was also the senior advisor to the Secretary-General at the World Energy Council (WEC).    

Jitendra Roychoudhury

Jitendra Roychoudhury

Research Fellow Before joining KAPSARC, Jitendra was a director and chief consultant at HDR|Salva, India, where he led a number of cross… Before joining KAPSARC, Jitendra was a director and chief consultant at HDR|Salva, India, where he led a number of cross functional teams which included market analytics, mine planning, resource modelling and GIS.

Expertise

  • Indian energy and coal

Publications See all Jitendra Roychoudhury’s publications

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