New Delhi, March 11 || Strong services exports and steady remittance inflows could help cushion the impact of rising crude oil prices on India’s economy, even as the country remains heavily dependent on imported energy, a report showed on Wednesday.
According to the report by DSP Netra, crude oil continues to be one of the most critical variables for India’s macroeconomic stability, particularly as the rupee has weakened recently amid rising global oil prices.
India consumes about 5.3-5.5 million barrels of crude oil per day, while domestic production stands at only around 0.6 million barrels per day, making the country nearly 85 per cent dependent on imports.
Petroleum imports already account for around 25–30 per cent of India’s total imports, making oil prices a key driver of the country’s external balance, the report said.