India will benefit from cheap crude oil; 60 thousand crores will be saved, rupee will also get stronger

About 80 percent of the crude oil requirement of India is met by imports. If you see the list of countries importing crude oil, then India stands at number three after China and America. It becomes clear from this that crude import burdens the government exchequer very heavily. But all these burdens are going to lessen considerably now, for which the reason is: a fall in crude oil prices in the international market.

There is a softening in the prices of crude oil as far as the international market is concerned. With this, the government can save Rs 60 thousand crore on oil imports in the current financial year 2024-25 compared to the previous financial year. According to an estimate, every one dollar per barrel fall in crude oil saves Rs 13 thousand crore in India's annual import bill.

In the Economic Survey 2024, an estimation of crude oil prices in the current financial year was $ 84 per barrel. But continuously, there is a softening in the price of crude oil. In the international market, it remains at the level of $ 70 to $ 75 per barrel. Experts believe that if the prices continue to remain stable in this range, then India will be able to save a lot on crude oil imports in the remaining period of the current financial year.

Ajay Kedia, Director, Kedia Advisory, says that crude oil prices are expected to soften in 2025 and they are expected to remain below $ 80 per barrel. If this price remains intact till March 2025, then it will greatly benefit the Indian economy.

A large part of India's foreign exchange reserves is used to purchase crude oil. The reduction in the import bill may strengthen the Indian rupee against other major currencies. At present, the Indian rupee is stable at 83.60 against the dollar, while the currencies of developed countries have fallen significantly. The reduction in the import bill will also make more money available to the government for investment.