Risk of Oil price spike impacting India in Fy25 is low: CEA Nageswaran
The spike in oil prices due to global factors, including economic slowdown and geopolitical conflicts, is unlikely to be a major downside risk for the Indian economy in the next financial year (FY25), according to V. Anantha Nageswaran, Chief Economic Advisor.
‘The cooling of economic activity will happen first before a decline in global interest rates happens. Therefore, I do not think energy demand will necessarily become sufficient enough in the course of 2024 to see oil prices spike up.
The geopolitical situation and what is happening to cargo movement in the Red Sea are relevant factors. However, this is going to run into the challenge of slowing demand.
