India's Economy Under Threat: Rising Oil Prices and Trade Deficit Concerns

According to economic experts, rising crude oil prices in the international market can take India's trade deficit to alarming levels. Whenever oil becomes expensive in the global market, India's import bill increases by billions of dollars, resulting in a continuous fall in the value of the Indian rupee against the dollar. The weakening of the rupee makes everything imported from abroad expensive, which ultimately burdens the pockets of ordinary citizens. The massive sell-off by foreign investors in the stock market has wiped out crores of investors'money, which shows the economic seriousness of this war. The biggest threat is inflation, which can break the back of the common man in the coming months. Rising diesel and petrol prices will increase transportation costs, which will increase the prices of everything from vegetables to essentials. It will also be difficult for the RBI to cut interest rates now, as rising inflation is destabilizing the economy. If India does not prepare for a long-term economic struggle from the West, then it will be difficult for India to find an alternative source of oil.