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More than half (51. 2 per cent) of India’s total export earnings went into buying petroleum, particularly crude imports, in 2011-12, seriously impacting the country’s overall economy, according to a paper released by the Associated Chambers of Commerce and Industry of India (Assocham).
Looking from the imports angle and the impact on the trade deficit, crude oil, along with gold imports accounted for 44.4 per cent of the country’s total imports during the year (crude alone is responsible for over 31 per cent). This is a worrying aspect, as a major share of the country’s foreign exchange earnings is spent on import of a single commodity, says the paper.
However, with crude prices declining globally , the equation is expected to change in the current financial year, the industry body said in a release, quoting its President, Mr Rajkumar Dhoot. Crude is currently trading in the range of $80-85 a barrel from a recent high of $120.
Widening fiscal deficit and a higher current account deficit are the key problems faced by the national economy, and oil austerity will surely help, Mr Dhoot said in the release.
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