{"id":"f-73cd9b4b27-d3bde78a-5af5-5064-85c8-75a64aba8163","title":"USD10/barrel rise in crude prices will add $14 bn to India’s import bill: Amitabh Kant","description":"The biggest risk element for India in the Iran US conflict is the rising cost of crude oil. Analysts flag with concern how a rise in oil prices can add to the import bill since India is critically dependent on crude imports for its huge energy needs.","timestamp":1772781088,"category":"national_v_two","headline":"USD10/barrel rise in crude prices will add $14 bn to India’s import bill: Amitabh Kant","modifiedHeadline":"US-Iran War: Is your petrol bill about to spike?","subCategories":["scid_b6669955"],"subcategoriesName":["National"],"region":"IN","bundleMetaData":{"bundleId":"7b48871c-c993-4956-b43d-6f46f8e1b036","bundleTitle":"Today In India","cardData":null},"iabCategoryId":"86","iabCategoryName":"Gasoline Prices","fcSummary":"iran's response to missile attacks by closing the strait of hormuz has significantly impacted global crude oil prices, posing a major economic challenge for india. with roughly half of india’s energy needs passing through the strait, a $10 per barrel increase could inflate the import bill by $13-14 billion, widening the current account deficit and pressuring the rupee. amitabh kant suggests focusing on domestic energy sources like solar, wind, and nuclear power to bolster india's energy security.","summary":"Iran-US conflict: $10/barrel oil rise could inflate India’s import bill by $13-14 billion, warns Kant, impacting economy.","ctaUrl":"https://trends.glance.com/newz/astrology/IN/en/news9/f-73cd9b4b27-d3bde78a-5af5-5064-85c8-75a64aba8163","sourceUrl":"https://www.news9live.com/business/10-barrel-rise-in-crude-prices-will-add-14-bn-to-indias-import-bill-amitabh-kant-2939669","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/qIVts_D9eqe0.webp","content":"

Kolkata: As soon as the missile started raining on Iran, Teheran hit back where it hurts the world the most — crude il prices. It quickly closed the Strait

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of Hormuz — the 33-km wide waterway passing by the side of the country — through which more than 20% of the world’s seaborne crude shipments pass through. The development hurt India a lot since about half of India’ energy needs, both crude oil and gas, pass through this channel. Former NITI Aayog chief Amitabh Kant has now warned that every $10 per barrel increase in crude oil prices could push up India’s annual import bill by $13-14 billion.

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Rising oil prices will expand the current account deficit of India as well as raise inflation rates, put downward pressure on the rupee likely to increase the country’s current account deficit and put pressure on the rupee. If crude oil prices rise, its impact could be visible on the market as well. The price of Brent crude has already reached nearly $84 per barrel in the international market, while US WTI crude is also trading around $77 per barrel. And crude oil is the biggest item in India’s import bill.

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Economic challenge

According to Amitabh Kant, a sharp rise in oil prices could create economic pressure for India. India meets a large portion of its crude oil — about 88-90% of its total requirements — needs through imports. Therefore, every $10 increase in prices could increase the country’s import bill by $13-14 billion, potentially widening the current account deficit and putting pressure on the rupee.

What is the way forward?

Amitabh Kant believes that India needs to focus more on domestic energy sources to strengthen its energy security. This requires adopting technologies like solar-wind hybrid energy, promoting electric vehicles, modern power grids, large-scale battery and pumped hydro storage. Furthermore, stable sources like nuclear power need to be strengthened. He argues that the real solution lies not just in increasing capacity, but in ensuring a reliable supply of clean energy. However, it must be conceded that none of these can happen overnight and will take time to achieve. But India is the fastest growing major economy in the world which needs an increasing supply of energy. The rising crude prices post an enormous problem against this background.

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USD10/barrel rise in crude prices will add $14 bn to India’s import bill: Amitabh Kant

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