India's Economic Hope: The Trump Effect on Oil Prices

India anticipates benefits from potential low global crude oil prices under the incoming U.S. administration of President-elect Donald Trump. This would decrease India's import expenses and support economic growth, crucial as India relies heavily on oil imports. Analysts suggest potential tariffs and oil supply increases could maintain low prices.

India is optimistic that the incoming U.S. President-elect Donald Trump's administration could play a pivotal role in maintaining low global crude oil prices, thereby cutting down its import bill and boosting the country's sluggish economic growth.

Experts, including those from Citi Bank, project that Trump's possible second term could persistently drive oil prices down through potential trade tariffs and an augmented oil supply until 2025. India's chief economic adviser, V. Anantha Nageswaran, emphasized that extending low energy costs would significantly enhance India's growth trajectory amid recent slowing economic expansion.

With India's economy growing at the slowest rate in seven quarters, mainly due to fading manufacturing momentum, maintaining low crude oil prices is critical. Relying on imports for over 80% of its energy needs, India sees cheaper oil as essential. Amid easing supply concerns and anticipated increases in supply by 2025, oil prices have seen a substantial drop, benefiting India as the third-largest oil importer globally.

(With inputs from agencies.)