https://sputniknews.in/20240913/oil-imports-from-russia-bring-huge-benefit-to-indian-economy-8145487.html
Oil Imports From Russia Bring Huge Benefit to Indian Economy
Oil Imports From Russia Bring Huge Benefit to Indian Economy
Sputnik India
India is set to surpass neighboring China in global crude demand this year, estimates from the International Energy Agency (IEA) suggest. The IEA expects a jump of about 200,000 barrels daily in the South Asian nation's oil basket.
2024-09-13T21:16+0530
2024-09-13T21:16+0530
2024-09-13T21:16+0530
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The rapid pace of development, including the government's policy of easing transportation with the construction of newer highways across the country is one of the main factors behind India's growing demand for oil, an energy specialist has said.Arpit Chandna, an oil expert with London Stock Exchange Group company Refinitiv, said India is the world's third-largest crude importer with more than 80 percent of its oil supplies coming from abroad.He highlighted that the major driver for oil demand in India is its fast-growing economy, which is heavily dependent on refined products like gasoline and diesel not only for transporting goods, including essential items but for the country's vast services sector too.Road transport in the 'world's largest democracy' has undergone a sea change under the leadership of Prime Minister Narendra Modi in the last 10 years. India's road network is the second-largest on the planet after the United States, measuring a whopping 6.33 million kilometers.From Modi's first government in 2014 India has witnessed the construction of several highways, including the partially opened Delhi-Mumbai Expressway that will reduce travel time between the two megapolises to twelve hours, a significant reduction from the 24 hours it takes now.Chandna stressed that this has led to a spurt in economic growth, with newer markets now opening for mid-sized businesses. The new roads have also given a huge boost to India's tourism sector. At present, tourism contributes around 6.5 percent to India's $3 trillion economy. That figure is predicted to hit 7.6 percent in a decade, KPMG reports.He pointed out that global oil demand is currently subdued. Prices plunged in the past week, but developing economies like India and Brazil are still increasing their imports from global suppliers.That shows the economic momentum and amplifies the commercial contributions from the India's industrial sector, Chandna noted. It also means domestic spending in India is rising continuously, signaling that the South Asian nation will continue to be the dominant player among emerging economies as its GDP is expected to grow by approximately 7 percent like last year.He explained that last month's Russian oil import figures suggest that Indian refiners have the capacity to add Urals crude their oil feed basket, yielding higher profits for refined petrol and diesel.
https://sputniknews.in/20240905/india-expects-vostok-oil-project-with-russias-rosneft-to-be-game-changer-8114103.html
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Oil Imports From Russia Bring Huge Benefit to Indian Economy
India is set to surpass neighboring China in crude oil imports this year, estimates from the International Energy Agency (IEA) suggest. The IEA expects a rise about 200,000 barrels per day in the South Asian nation's oil basket.
The rapid pace of development, including the government's policy of easing transportation with the construction of newer highways across the country is one of the main factors behind India's growing demand for oil, an energy specialist has said.
Arpit Chandna, an oil expert with London Stock Exchange Group company Refinitiv, said India is the world's third-largest crude importer with more than 80 percent of its oil supplies coming from abroad.
He highlighted that the major driver for oil demand in India is its fast-growing economy, which is heavily dependent on refined products like gasoline and diesel not only
for transporting goods, including essential items but for the country's vast services sector too.
Road transport in the 'world's largest democracy' has undergone a sea change under the leadership of Prime Minister Narendra Modi in the last 10 years. India's road network is the second-largest on the planet after the United States, measuring a whopping 6.33 million kilometers.
From Modi's first government in 2014 India has witnessed the construction of several highways, including the partially opened Delhi-Mumbai Expressway that will reduce travel time between the two megapolises to twelve hours, a significant reduction from the 24 hours it takes now.
Chandna stressed that this has led to a spurt in economic growth, with newer markets now opening for mid-sized businesses.
The new roads have also given a huge boost to India's tourism sector. At present, tourism contributes around 6.5 percent to India's $3 trillion economy. That figure is predicted to hit 7.6 percent in a decade, KPMG reports.
"Furthermore, as the festive season kickstarts in India in about three weeks, the domestic demand from retail consumer users as well as the commercial sector is likely to pace up supporting the robust outlook for oil demand in the country," Chandna told Sputnik India on Friday.
He pointed out that global oil demand is currently subdued. Prices plunged in the past week, but developing economies like India and Brazil are still increasing their imports from global suppliers.
That shows the economic momentum and
amplifies the commercial contributions from the India's
industrial sector, Chandna noted. It also means domestic spending in India is rising continuously, signaling that the South Asian nation will continue to be the dominant player among emerging economies as its GDP is expected to grow by approximately 7 percent like last year.
"One must note that the Indian economy has benefited heavily from oil imports from Russia," Chandna said. "For example, in August, Russia stood as the highest contributor of oil supplies to India with a share of around 37.4 percent, followed by Iraq, Saudi Arabia, the UAE and the US."
He explained that last month's Russian oil import figures suggest that Indian refiners have the capacity to add Urals crude their
oil feed basket, yielding higher profits for refined petrol and diesel.
