Heavens seem to be smiling on India, says Uday Kotak; here’s why

As crude oil prices crashed a whopping 7% to $66 a barrel, top banker Uday Kotak said it’s advantage India and that “heavens seem to be smiling on India”. The country has been under a lot of pressure due to higher-than-$60 a barrel oil price in last one year but the latest retreat is giving a lot of comfort to India.

Kotak said that if oil sustains below $70, it would be advantage India. The country is the third largest importer of crude oil and covered 80% of its total energy needs from imports.

“Heavens seem to be smiling on India. Brent at 65$ gives policymakers headroom to move ahead. At this crucial juncture for economics and politics, oil below 70$ if it sustains, is Advantage India,” Kotak tweeted.

Heavens seem to be smiling on India. Brent at 65$ gives policy makers headroom to move ahead. At this crucial juncture for economics and politics, oil below 70$ if it sustains, is Advantage India. — Uday Kotak (@udaykotak) November 14, 2018

Kotak has been a keen follower of oil prices and tweets often on the developments. When the oil breached $60 last year, he was among the first ones to tweet about it and its impact on India’s economics.

Oil >60$. Reduces India fiscal space. US 10 year 2.40%. Yields inching up. Less room to drop interest rates here.Growth needs harder work. — Uday Kotak (@udaykotak) October 30, 2017

On Wednesday, crude oil prices plunged 7%, while the month of October witnessed the biggest fall since the price collapse of 2014. The oil price collapse despite the United States sanctions on Iran due to a slew of factors: eight countries, including India, were granted temporary waivers from sanctions; oil supply surged; economic growth contracted, leading to lower oil demand.