India has to import crude oil?what problems do you anticipate for the country look at the above situation?
Answers
India as an importer of crude oil :
India is a country of more than 1 billion population it is a developing country with a very large number of human resource it has so many minerals also but every country needs some resources to export and import to fulfill its economic and other needs.
India imports crude oil from other countries of middle east like Iran.
India, as a developing country has so many energy resources like solar energy , thermal energy ,nuclear energy and so many other types of energy sources but India do need about sources of energy.
Specially petroleum oil, for which India suffered very much in the past due to the oil bill and the subsidy, It not only affects the Balance of Payments but also the Government Deficit in budget.
As new oil fields and sources of oil are very less, countries supplying oil continue to dominate.
Currency movements will badly affect the balance of trade as it has in the past.
The increasing population will face problems of inflation unless India is able to shift its consumers to other renewable and cheaper sources of energy.
The problems in importing crude oil are:
- Value of indian currency plays very important role in world market.
- Imports are very expensive than exports .
- Rising crude oil prices, but these days crude oil price decreases because of the domination war between Middle East countries and Russia for being main oil supplier which is beneficial for India as well as other countries of the world
Answer:
The problems to import crude oil are:
Value of rupee plays very important role in world market.
Imports are expensive than exports ( India exports petrleum to other countries)
Rising crude oil prices.
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