“Lower oil prices would reduce the import bill, narrow the trade and current account deficits, ease pressure on the rupee which has already strengthened as crude price fell to around $83 amid easing geopolitical risk expectations, and help moderate inflation across sectors such as transport, manufacturing, FMCG, and construction. It would also improve fiscal flexibility for the government and RBI, support consumption, benefit oil marketing companies, and provide a tailwind to sectors that are sensitive to crude-linked costs,” he said.
